The Organization of the Organization

1. The Organization of the Organization Chapter 9

2. Chapter Overview Organizational style Bureaucracy Participatory democracy Quality of worklife Quality control circles Self-managing work groups Virtual self-managing work groups

3. Organizational development New employee socialization Organizational culture Labor unions Grievances Informal groups The Hawthorne studies Social loafing Group cohesiveness Technological change and organizational structure Chapter Overview

4. Organizational Style Bureaucracy Participatory democracy

5. Bureaucracy - The Classic Organizational Style Bureaucracy is a formal, orderly, and rational approach to organizing business enterprises It was designed to correct the inequities, favoritism, and cruelty during the era of Industrial Revolution Max Weber, a German sociologist, devised the system to function like a machine, unaffected by the whims of the factory owners The organization chart was the first practical application, prepared by Daniel McCallum for the New York & Erie Railroad

6. Characteristics of bureaucracy Decentralization into component parts and operations Operations linked in a fixed rank order of control The concept of division of labor simplified and specialized jobs Responsibility and authority was delegated downward Communications flowed upward through these same channels Employees were cut off from contact with other sectors Bureaucracy - The Classic Organizational Style

7. Problems with bureaucracies Human needs and values are often ignored Human motivations tend not to be recognized Employees have no identity or control over their work “Ideal” employees are docile, passive, dependent, and childlike Decision making is centralized Workers are isolated from management New developments are viewed as threats Bureaucracy - The Classic Organizational Style

8. Participatory Democracy - The Modern Style The modern organizational style is a high-involvement participatory approach Concerned with employees’ intellectual, emotional, and motivational characteristics Participatory decision-making Application of Theory Y philosophy

9. Basic assumptions about people, participation, and performance Human relations - people should be treated fairly and with respect Human resources - people are a valuable resource High involvement - people can be trusted to make important decisions about the management of their work “Taking charge” - the work behavior that’s stimulated by high-involvement management Participatory Democracy - The Modern Style

10. Quality of Worklife (QWL) Quality-of-worklife (QWL) programs restructure job and management requirements to enhance worker participation Quality control circles - small groups of workers meet to solve problems relating to production Self-managing work groups - a work team controls all aspects of the job Virtual self-managing work groups - linked electronically

11. Why QWL Programs Fail QWL programs fail: When employees don’t understand the increased demands of the redesigned job (e.g., Volvo) Some workers don’t desire to participate in decision making and may need more rather than less supervision Some managers are uncomfortable releasing control Top management and union officials must embrace the program Diversity and contingent workforces present challenges for inclusion

12. Quality Control Circles In quality control circles, small groups of employees meet periodically to solve problems relating to quality and quantity of production Based on research of Maslow, McClelland, and Herzberg Workers are given more responsibility and allowed to participate in decisions affecting the nature and performance of work Membership tends to be voluntary, with training for members in human relations and problem solving They do not affect far-reaching decisions - management retains control

13. Advantages Savings in money and time, increases in production and satisfaction, and decreases in absenteeism and turnover Disadvantages Some eligible workers fail to volunteer to participate in the programs Some circles disband too soon Failure to implement employee suggestions can lower expectations and the willingness to participate Quality Control Circles

14. Self-Managing Work Groups Self-managing work groups allow the team members to manage, control, and monitor all facets of their work, including recruiting, hiring, training, and when to take rest breaks

15. Self-Managing Work Groups Characteristics Employees assume responsibility and accountability Employees monitor their own performance and seek feedback Employees manage their performance and take corrective action Employees seek resources when needed Employees help each other to improve performance

16. Self-Managing Work Groups Requirements Mature employees and responsible, supportive managers Clear direction from the organization A support staff to provide technical expertise Adequate material resources Disadvantages Conversion to the process is difficult, expensive, and time consuming It takes a while to become effective

17. Virtual Self-Managing Work Groups Virtual team members may work in geographically separate locations, but meet via Desktop Videoconferencing Systems (DVCS) Research is sparse Presents special challenges in terms of leadership, member involvement, satisfaction, and commitment

18. Introducing Organizational Change Employee participation programs call for radical changes - and resistance to change is to be expected Organizational development (OD) involves techniques for introducing large scale changes The process is carried out by change agents who diagnose problems, devise strategies, and implement interventions

19. External factors relating to overcoming resistance to change Providing explanations about policy change has beneficial effects Openness to change is positively affected by the amount of information received from management Individuals high in commitment and trust in management are more likely to believe management’s reasons for change Introducing Organizational Change

20. Personal factors related to overcoming resistance to change People who score high in risk tolerance and self-concept (locus of control, positive affectivity, self-esteem, and self-efficacy) cope with change better When properly introduced, change can have a long-lasting effect Introducing Organizational Change

21. Organizational Development (OD) Organizational development (OD) is the study and implementation of planned total organizational change Techniques include sensitivity training, role playing, group discussion, survey feedback, team building, and job enrichment OD consultants (change agents) work with groups to develop self-confidence, group cohesiveness, and working effectiveness

22. OD is an on-going process Assessment and diagnosis Feedback Development of recommended strategies (while allowing employee participation in the process) Implementation (intervention) Evaluation and feedback Implementation must begin with top management Organizational Development (OD)

23. Job satisfaction seems to be negatively correlated with OD, while productivity seems to be positively related Organizational Development (OD)

24. Socialization of New Employees Socialization is the adjustment process by which new employees learn their role in the organizational hierarchy, the company’s values, and the behaviors considered acceptable by their work group

25. Improper socialization can foster: Frustration Anxiety Dissatisfaction Low job involvement Low organizational commitment Low motivation and productivity Dismissal or quitting Socialization of New Employees

26. A socialization program should involve Challenging job Appropriate training and feedback Considerate supervisor Co-workers with high morale and commitment Suitable orientation program Socialization of New Employees

27. Personal factors in socialization Employees high in extroversion and openness to new experiences demonstrated higher proactive socialization behaviors Managers with a high desire for control actively sought information, networked, and negotiated job enrichment changes Employee expectations are related to turnover Socialization is quicker when there is interaction between old and new employees Socialization of New Employees

28. Personal factors in socialization Role ambiguity - when job responsibilities are unstructured or poorly defined Role conflict - when there is disparity between job demands and the employee’s personal standards High levels of role conflict and role ambiguity are related to low satisfaction, dissatisfaction with the supervisor, low organizational commitment, and high turnover Socialization of New Employees

29. Resocialization occurs every time one joins a different organization with new rites of passage, or.r even transfers to a different unit within the same organization Feedback from peers and especially supervisors is important during the socialization and resocialization process Socialization of New Employees

30. Organizational Culture Organizational culture is the pattern of beliefs, values, and expectations that guide the behavior of the organization’s members Person-organization fit is the degree of congruence between an employee’s values and the organization’s values Enhanced by how closely the values of the newcomer agree with those of their supervisor (relates to turnover)

31. Organizational personality - organizations tend to be homogeneous in terms of the personality characteristics of their managers Selection is traditionally based on KSA’s of the applicant. Should it also consider goodness of fit between the applicant’s personality and the organizational personality? Organizational Culture

32. Labor Unions Labor unions help define a company’s culture Socialization of new union members is similar to the process of becoming acclimated to a new organization Informal socialization processes are more effective than formal ones for commitment and participation

33. Participation of Women in Labor Unions Women will participate in local union activities when More women hold office Local union is more formalized in rules and procedures Local union is receptive to participatory democracy Union membership does not protect women members from discrimination in pay and promotion

34. Unions Face a Crisis of Declining Membership In 1945 more than 35% of U.S. workforce belonged to unions (less than 14% today) Unions initially resisted quality of worklife programs because they were seen as eroding union loyalty The greater the threat of job loss, the greater the union commitment

35. Union Grievances Specified in union contracts, the grievance process establishes a formal mechanism for worker complaints The number of grievances varies by type of job (grievances increase with monotonous jobs) Highly cohesive work groups also file more grievances

36. Supervisors who are low in consideration behaviors are the target of more grievances When a complaint is resolved in favor of the worker, the process is seen as fair, but when resolved in favor of management, relations suffer Union Grievances

37. Informal Groups Informal groups develop within every organization and have tremendous power to shape employee attitudes, behavior, and productivity Hawthorne studies provided empirical evidence of informal work groups Group establishes its’ own standards of behavior and productivity (which may be less than that of management

38. Social loafing is the idea that people do not work as hard in a group as they do when working alone Social loafing is more likely to occur when Individual outputs cannot be evaluated Tasks are not meaningful or personally involving Working with strangers Co-workers are expected to perform well on the task Work groups are less cohesive Social loafing

39. Group Cohesiveness Group cohesiveness is the degree of closeness within the group A group’s affective tone influences its work performance The greater the cohesiveness, the greater the group’s power over its members and the greater the pressure to conform Wage-incentive systems that rewards individual rather than team performance increases competition and lowers cohesion

40. Technological Change and Organizational Structure Computer technology Creates the need for greater coordination and integration of the company’s basic units Requires greater formalization of work procedures May result in decentralization, giving more decision making authority to the computer operator

41. Technological Change and Organizational Structure Computer technology May result in operators who may know more about equipment capabilities than their supervisors, thus disrupting traditional working relationships Changes procedures for meetings (virtual meetings), disrupt traditional lines of communication, Reduces the opportunity for personal interaction and thus reduces cohesiveness and a growing sense of isolation

42. Technological Change and Organizational Structure Computer technology Excessive Internet use can lead to a form of addiction Employer monitoring of computer usage has a disruptive effect on the employee-employer relationship An AMA study reports 75% of companies questioned monitor their employees’ behavior on the job Many companies discipline employees for online abuse