Needed: People-Centered Managers and Workplaces Chapter One Needed: People-Centered Managers and Workplaces McGraw-Hill/Irwin Organizational Behavior: Key Concepts, Skills & Best Practices, 3/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved.

After reading the material in this chapter, you should be able to: Identify at least four of Pfeffer’s people-centered practices, and define the term management. Contrast McGregor’s Theory X and Theory Y assumptions about employees. Explain the managerial significance of Deming’s 85-15 rule, and identify the four principles of total quality management (TQM).

After reading the material in this chapter, you should be able to: Contrast human capital and social capital, and identify five measurable outcomes when building human capital. Explain the impact of the positive psychology movement on the field of OB. Define the term E-business, and explain at least three practical lessons about effective e-leadership in a virtual organization.

Pfeffer’s Seven People-Centered Practices Job security Careful hiring Power to the people Generous pay for performance Lots of training Less emphasis on status Trust building

How Important are People Factors are a package deal – need to be installed in a coordinated and systematic manner Too many managers act counter to their declarations that people are their most important asset Undue emphasis on short-term profit

The 4-P Cycle of Continuous Improvement

Question? What is the process of working with and through others to achieve organizational objectives efficiently and ethically? Planning Management Organizational Behavior Organizational Flow The correct answer is “B” – management. See next slide.

Managers Get Results Management process of working with and through others to achieve organizational objectives efficiently and ethically Today’s manager needs to creatively envision and actively sell bold new directions in an ethical and sensitive manner

A Skills Profile for Managers Typical manager’s day is a fragmented collection of brief episodes Interruptions are commonplace while large blocks of time for planning are not

Skills & Best Practices: The Effective Manager’s Skill Profile Clarifies goals and objectives for everyone involved. Encourages participation, upward communication, and suggestions. Plans and organizes for an orderly workflow.

Skills & Best Practices: The Effective Manager’s Skill Profile Has technical and administrative expertise to answer organization-related questions. Facilitates work through team building, training, coaching, and support. Provides feedback honestly and constructively. Keeps things moving by relying on schedules, deadlines, and helpful reminders.

Skills & Best Practices: The Effective Manager’s Skill Profile Controls details without being overbearing. Applies reasonable pressure for goal accomplishment. Empowers and delegates key duties to others while maintaining goal clarity and commitment. Recognizes good performance with rewards and positive reinforcement.

Three Lessons for Managers Dealing effectively with people is what management is all about. Managers with high skills mastery tend to have better subunit performance and employee morale Effective female and male managers do not have significantly different skill profiles

21st-Century Managers Teams are pushing aside the individual Command-and-control management is giving way to participative management and empowerment Ego-centered leaders are being replaced by customer-centered leaders Employees are being viewed as internal customers

Evolution of 21st Century Managers

The Field of Organizational Behavior Organizational Behavior - Interdisciplinary field dedicated to better understanding and managing people at work

The Field of Organizational Behavior Psychology Management Sociology Organization theory Social psychology Statistics Anthropology Economics Information technology Political science Vocation counseling Psychometrics Ergonomics

The Human Relations Movement Legalization of union-management collective bargaining Behavioral scientist called more attention to the human factor Elton Mayo – Western Electric Hawthorne study

The Hawthorne Legacy Interviews do not support initial conclusions about positive effect of supportive supervision Money, fear of unemployment, managerial discipline and high quality raw materials were responsible for high output

Mary Parker Follett Follett saw employees as complex bundles of attitudes, beliefs, and needs Managers should motivate job performance

McGregor’s Theory Y Theory X assumptions – pessimistic and negative, typical of how managers traditionally perceived employees

McGregor’s Theory Y Theory Y – believed managers could accomplish more through others by viewing them as self-energized, committed, responsible, and creative beings

Question? What organizational culture is dedicated to training, continuous improvement, and customer satisfaction? Process Total Customer Quality Total Quality Management Deming SPC The correct answer is “C” – Total Quality Management. See next slide.

What is TQM? Total Quality Management: An organizational culture dedicated to training, continuous improvement, and customer satisfaction

What is TQM? Principles of TQM Do it right the first time to eliminate costly rework. Listen to and learn from customers and employees. Make continuous improvement an everyday matter. Build teamwork, trust and mutual respect.

The Deming Legacy Formal training in statistical process control and techniques Helpful leadership, rather than order giving and punishment Elimination of fear so employees will feel free to ask questions Teamwork Elimination of barriers to good workmanship

The Deming Legacy 85-15 Rule When things go wrong, there is roughly an 85% chance the system is at fault. Only about 15% of the time is an individual employee at fault

The Contingency Approach Using management concepts and techniques in a situationally appropriate manner, instead of trying to rely on “one best way”

The Age of Human and Social Capital Human Capital The productive potential of one’s knowledge and actions A present or future employee with the right combination of knowledge, skills, and motivation to excel

Five Human Capital Outcomes Defined SOURCE: L Bassi and D McMurrer, “Developing Measurement Systems for Managing in the Knowledge Era,” Organizational Dynamics,no. 2, 2005, Table 2, p 190.

The Age of Human and Social Capital The productive potential of strong, trusting, and cooperative relationships

The Strategic and Importance Dimensions of Human and Social Capital

The Positive Psychology Movement Recommends focusing on human strengths and potential as a way to prevent mental and behavioral problems and to improve the general quality of life

Positive Organizational Behavior Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities Read Jean-Pierre Neveu’s article on Positive Organizational Behavior

Luthans’s CHOSE Model Of Key POB Dimensions SOURCE: From The Academy of Management Executive: The Thinking Manager’s Source by F. Luthans. Copyright © 2002 by Academy of Management. Reproduced with permission of Academy of Management via Copyright Clearance Center.

The Internet and E-Business Revolution running the entire business via the Internet The Internet is a tool that dramatically lowers the cost of communication

Video: JetBlue See Vinny Stabile, VP of JetBlue Airways, discuss the high touch service of his airline. (10:35) What are the five values of JeBlue Airways? Note: The video referred to on this slide (and the ones for the remaining chapters) can be found on the Instructor’s Video DVD.