Organization of the Organization

1. Organization of the Organization Area is concerned with the impact of group structure, decision making, rules, roles, and norms on morale, efficiency, and productivity Logical place to begin is organizational structure Bureaucracy Participatory Democracy

2. Bureaucracy A formal, orderly, and rational approach to organizing businesses Today, represented by red-tape and inefficiency Weber’s initial intentions were good. Proposed system would eliminate social and personal injustice Rational organization would remove bias Workers could advance on the basis of their skill

3. Organizational Charts Existed even before Weber – the 1850’s Show organization’s hierarchy and flow of information Weaknesses include: view people as inanimate objects, no participation of workers in decision making, isolation from upper management, new developments viewed as threats

4. Participatory Democracy Emphasis on behaviors and needs of employees instead of a rigid focus on tasks Similar to Theory Y: belief that workers are motivated to seek and accept responsibility for their work

5. Participatory Democracy Requires high involvement management Three assumptions: Human relations: treat people fairly and with respect Human resources: people are valuable resources High involvement: people can be trusted to develop knowledge and skills

6. Quality of Work Life Programs Organizational programs based on active employee participation in decision and policy making Studies generally show an increase in work satisfaction and a smaller increase in work quantity and quality Many success stories – but these programs do not always work

7. Why Do These Programs Fail? Doing a complete job (e.g., building a whole car) may be more difficult and intense than imagined Some workers do not want responsibility for decision making Some managers can’t relinquish authority

8. Specific Programs Quality Control Circles: employee groups organized to deal with specific production problems Goal is enhanced quantity and quality of production Average group is 7-10 employees. Voluntary membership Receive training in human relations and problem solving Higher performance ratings and promotion rates

9. Specific Programs Self-Managing Work Groups: Employee groups that manage all facets of work Requirements include: Maturity and responsibility Clear organizational direction about production goals Technical support staff Adequate material resources Managers must be willing to become facilitators

10. Introducing Change in Organizations Change is often met with hostility, production slowdowns, strikes, increases in absenteeism, increases in turnover Organizational Development (OD): the study and implementation of planned, total, organizational changes

11. OD Information Survey-feedback Technique: assess feelings and attitudes of employees. Provides feedback to higher management Team Building Technique: work with small groups to enhance team morale and problem-solving abilities Change Agents: outside consultants who work to implement change. Increased chance of success with employee participation

12. Encouraging Effective Change Think like a beginner – ask stupid questions, constantly ask why things are being done a certain way, don’t assume Don’t be complacent about something that is working. Keep looking for ways to improve Make your own rules (e.g., Domino’s Pizza) Rather than penalizing mistakes, reward employees for the attempt to change

13. Stages of Change Denial Defense – sense of inherent criticism (why do we need to change?), try to justify positions and ways of doing things Discarding – start to accept change, get rid of old ways Adaptation – learn how new system functions Internalization – become comfortable with new system

14. Socialization of New Employees Learn role, and appropriate values and behaviors Crucial. Fulfilled expectations correlate with job satisfaction, organizational commitment, and the intention to remain with the company Role ambiguity: poorly defined role Role conflict: job demands contradict personal standards Resocialization: just as challenging as initial socialization

15. Transmitting Organizational Culture: Socialization Careful selection of entry-level candidates – those who do not fit the culture are encouraged to apply elsewhere. Humility-inducing experiences that cause newcomers to question prior behavior, beliefs, and values – like boot camp in the army. Show the new worker that they still have a lot to learn.

16. Transmitting Organizational Culture: Socialization, Cont. Meticulous attention given to rewards system: Critical success factors are inclueded in the performance appraisal system. Careful adherence to firm’s core values: Managers make sure that their decisions reflect stated values of company. Reinforcing Folklore: company legends reinforce corporate culture. Proctor and Gamble workers are told story of manager fired for exaggerating claims (ethics more important than $)

17. Transmitting Organizational Culture: Stories As mentioned above, stories help to reinforce the core values of a company. For example, Bill and Dave (as Hewlett and Packard are commonly addressed) called their first instrument the 200A so that people would not know they were just starting out. Also, they started the company with just $538 in the garage behind Dave’s rented house

18. Transmitting Organizational Culture: Symbols and Rituals Type of building and office décor convey meaning. Look at the relaxed atmosphere that many dot.coms created. Mary Kay pink Cadillacs symbolize determination and achievement. Rituals help to reinforce the culture. The rituals remind the employees that they belong to a unique group.

19. Organizational Culture/Climate Organization’s pattern of beliefs, expectations, and values as manifested in company practices Person-Organization Fit: degree of congruence between employee and organizational values Can be maximized through recruitment, selection, and socialization processes

20. Organizational Culture/Climate Person-Environment Congruence: Match between an employee’s perception of the requirements and the actual requirements of the organization

21. Labor Unions Workers act collectively to protect and promote their interests Labor membership is dropping: 35% in 1945, 16% in 1995, 5% in 2000 Almost 1/3 of union members are female, yet hold only 8% of elected offices

22. Union Benefits Paid up to 33% more than non-union workers Better working conditions and fringe benefits Grievances: a formal mechanism for resolving complaints between unionized employees and management More frequent in monotonous and unrewarding jobs

23. Informal Work Groups Cohesiveness Social Loafing: accountability is the issue Social Facilitation