Ch.

9 Organization Structure
Fundamentals of Organizational Structure
● Organization chart (Organogram) = the reporting structure and division of labor in an
organization
○ A box-and-lines illustration that shows the formal lines of authority, the
organization’s official positions or work specializations, and where decision-
making resides
● Alfred Chandler (1962): “Structure follows strategy”
● Basic parts
○ Strategic apex ➜ Top Management Team
○ Middle line ➜ Middler Manager (tactical decision)
○ Technological staff ➜ Finance/Acct. analysts, engineering, IT, HR
■ Staff department manager is responsible for all staff’s issue
○ Supportive staff ➜ Custodian, mailroom, security
■ Differentiative from the central body
○ Operating core ➜ Production worker
■ Line manager is responsible for delivering goods and services
Board chairs,
CEO,
Strate President, VP
Staff gic Staff
Departments apex Departments
Technological staff: Middle Suppo: :
Manage
Fin. Acct analysts, rt staffCustodians,
r
engineer, IT, HR Mailroom,
Operating Core
Production Security
worker
Line
Fundamentals of organizing department
1. Differentiation = the organization is composed of many different units that work on
different kinds of tasks, using different skills and work methods
○ Division of labor = the assignment of different tasks to different people or
groups
○ Specialization = a process in which different individuals and units perform
different tasks (division of tasks into subtasks)
○ Types: task (hiring); cognitive (way of thinking - IDEO); horizontal (by function);
vertical (up the hierarchy)
2. Integration = the degree to which differentiated work units work together and
coordinate their efforts ➜ Interaction, coordination, cooperation, working
together ➜ Driven by rules, goals, values
○ Coordination = the procedures that link the various parts of an organization for
the purpose of achieving the organization’s overall mission
3. Delegation = the assignment of new or additional responsibilities to a subordinate
4. Responsibility = the assignment of a task that an employee is supposed to carry out
5. Accountability = the expectation that employees will perform a job, take corrective
action when necessary, and report upward on the status and quality of their performance
 6. Interdependence = people or things depend on each other
○ Sequential - auto assembly line
○ Reciprocal - hospital operating table
○ Pooled - banking; each area works independently
Vertical Structure
● Authority = right to make decisions and to tell other people what to do (resides in
positions rather than person)
○ Board of directors - major decisions, governed by charter and bylaws
○ CEO - accountable to board and president
○ Top management team - rather than make critical decisions on their own, CEOs
at companies such as Shell, Honeywell, and Merck regularly meet with their TMT
to make decisions as a unit
○ Lower level
● Hierarchical level: Top, Middle, Lower level (example?)
● Span of Control = the number of subordinates who report directly to a supervisor
○ Narrow (small) spans of control ➜ Taller structure
○ Wide (large) spans of control ➜ Flatter structure
➢ Centralized organization = high-level executives(TMT) make most decisions and pass
them down to lower levels for implementation
➢ Decentralized organization = lower-level managers make important decisions
➢ Graicunas’ Formula: r = ((2n/2) +(n-1))
○ r = # of relationships
○ n = # of subordinates
○ As r increases, n on the y-axis will also increase
Horizontal Structure
● Line department ➜ deal w/ primary goods/services ➜ production dept., sale
dept.
● Staff department ➜ support line department ➜ HRM dept., Fin./Acct.,
Engineer, IT
➢ Simple structure = centralize decision-making with the owner. No formal departments
and layers of management; the top manager controls the work of the employees not
grouped into specific function

➢ Functional structure= structured around specialized activities such as production,

marketing, and HR
○ More rules and more formal the structure is
 ➢ Divisional structure = departments around products, customers, or geographic regions

➢ Matrix structure = composed dual reporting relationship in which

some managers report to two superiors (a functional manager Top
Executive
and a divisional manage) Balance
○ Hybrid form of organization in which functional and power b/t
divisional forms overlap Product functions and Functional
Manager divisions Manager
○ Might result in disagreement
Manage Manage
conflict with
“Two-boss” conflict with
functionalManager/employee
product
manager Learn how to respond
manager
to two superiors and
prioritize multiple
demands

➢ Network structure = a collection of independent, mostly single-

function firms that collaborate on a good or service
○ Dynamic network = composed of temporary arrangement among members that
can be assembled and reassembled to meet a changing competitive environment
Organizational Integration
● Standardization = establishing common routines and procedures that apply uniformly to
everyone
● Formalization = the presence of rules and regulations governing how people in the
organization interact
● Coordination by plan = interdependent units are required to meet deadlines and
objectives that contribute to a common goal
● Coordination by mutual adjustment = units interact to make accommodations to achieve
flexible coordination
Principles of Management based on structure
 ● Unity of Command = employees must have one and only one boss
● Span of Control = there’s a finite number of people a manager can supervise effectively
● Chain of Command (Scalar Principle) = there is a chain that connects people up and
down the organizational hierarchy; communication must go through everyone in the
chain
● Authority-responsibility = a manager has the right & obligation to make decision, use
resources, but he/she must report and justify outcomes to those above
● Delegation-accountability = when transferring authority and responsibility to
subordinates, the accountability remains with the ‘delegator’
● Peter = In most organizations, people tend to be promoted to their level of incompetence
● Equity = workers want to see fairness at work

Ch.12 Motivating for Performance

● Motivation = forces that energize, direct, and sustain a person’s effort
● Managers must motivate people to…(1)Join the organization (2)Remain in the
organization (3)Come to work regularly
Content (Needs) Theories
1. Maslow’s Need Hierarchy = people satisfying their needs in a
specific order, from bottom to top. People are motivated to satisfy
the lower needs before they try to satisfy the higher needs. Lower
needs must be satisfied before next need [Satisfaction Progressive]

○ Physiological ➔ food, water, sex, shelter

○ Safety/security ➔ protection against threat and
deprivation
○ Social ➔ friendship, affection, belonging, love
○ Ego ➔ independence, achievement, freedom, status,
recognition, self-esteem 自我尊重
○ Self-actualization 自我实现 ➔ realizing one’s full potential, becoming
everything one is capable of being
2. Alderfer ERG Theory = a human needs theory suggesting that people have three basic
sets of needs that can operate simultaneously
○ Growth needs ➔ motivate people to productively or creatively change
themselves or their environment
○ Relatedness needs ➔ involve relationships with other people and are
satisfied through the process of mutually sharing thoughts and feelings
○ Existence needs ➔ all material and physiological desires
3. McClelland
○ Need for achievement: accomplish goals and achieve success
○ Need for affiliation: desired to be liked by others
○ Need for power: desired to influences/control others
4. J.S. Livingston 1971 - managers with high N-Power tend to make the most effective
leaders
5. Herzberg’s 2-factor theory involving people’s work motivation and satisfaction
 ○ Hygiene factor: characteristics of the workplace that can make people
dissatisfied but do not lead to motivation. Such as company policies, working
conditions, pay, co-workers, supervision
○ Motivator: factors that make a job more motivating. Such as nature of work, job
responsibilities, growth opportunity, recognition, and feeling of achievement
○ The two don’t exist on the same continuum: absence of hygiene factors does not
necessarily lead to motivation
○ Extrinsic reward: given by others, such as boss
○ Intrinsic reward: derived from the job itself
Process Theories
1. Vroom’s Expectancy Theory: people will behave based on the perceived likelihood that
their effort will lead to a certain outcome that is highly valued outcome. Individuals
choose based on estimates of how well the expected results of a given behavior are
going to match up w/ the desired results
a. Expectancy [Effort ➔ Performance] = employee’s perception of the likelihood
that their efforts will enable them to attain their performance goals
■ Will my effort lead to performance?
■ If I put the effort, will I get the job done?
b. Instrumentality [Performance ➔ Outcome] = the perceived likelihood that
performance will be followed by a particular
■ Will the performance lead to the rewards?
■ If I get the job done, will I get the reward?
c. Valence [Value] = the value an outcome holds for the person contemplating it
■ Is the reward I will get something I value?
■ How much value do I put on the reward?
Expectancy Instrumentality
How confident am I Will my good
that my effort will lead performance be
to good performance? rewarded with desired
outcomes?

Effo Performan Outcom

rt ce e
2. Adam’s Equity Theory = ppl assess the fairness of being treated according to two key
Valence
factors: outcome, input (Equity = Fariness)
Justice Theory…
a. Procedural justice ➩ is there a fair process in decision making?
b. Compensatory justice ➩ is the compensation for the loss incurred or
damage done fair?
c. Distributive justice ➩ are the benefits distributed equitably?
d. Retributive justice ➩ does the punishment fir the crime?
e. Psychological Contract = a set of perceptions of what employees owe their
employers, and what their employers own them
Reinforcement Theories
1. Locke’s Goal Setting Theory = a motivation theory stating that people have conscious
goals that energize them and direct their thought and behaviors toward a particular end
(SMART goal)
○ Stretch Goals = targets that are particularly demanding, sometimes even thought
to be impossible
○ Vertical stretch goal = aligned w/ current activities including productivity and
financial results
○ Horizontal stretch goal = involves people’s professional development such as
attempting and learning new, difficult thing
2. Thorndike 1991 [Law of Effect] = behavior that is followed by positive consequences will
likely be repeated
○ Positive reinforcement = applying consequences that increase the likelihood that
a person will repeat the behavior that leads to it
○ Negative reinforcement = removing/withholding an undesirable consequence
○ Punishment = administering an aversive consequence
○ Extinction = withdrawing/failing to provide a reinforcing consequence
3. B.F. Skinner’s Operant Conditioning = the process by which factors in the work
environment affected workers. Learning through rewarding desired behaviors,
withholding reward from undesirable ones
Reinforcer: positive consequences that motivate behavior
○ Respondent behavior - initiate and respond the behavior according to Livingston,
that manages the impossible identified problems, then respond to it
○ Operant behavior - the problem is competent
i. No internship, students stay in class all time in the past
Designing Jobs
● Job Rotation ➔ one routine task to another; intended to alleviate boredom
● Job Enlargement ➔ additional tasks are provided to a job
● Job Enrichment ➔ job is redesigned with higher level of responsibility
● Job Sharing ➔ 2 people splitting time on the same job. (ex.: one works Mon.,
the other works Tue.)
● Hackman & Oldham
○ Skill variety ➔ different job activities with several skills/talents
○ Task identity ➔ completion of a whole, identifiable piece of work
○ Task significance ➔ important, positive impact on the lives of others
○ Autonomy ➔ independence and discretion in making decisions
○ Feedback ➔ information about job performance
 ○ Growth ➔ degree to which individuals want personal and psychological
development

Ch.13 Teamwork
● How groups become real teams…
○ A small number of people with
○ Complementary skills, who are
○ Committed to a common purpose, set of performance goals, and approach for
which
○ They hold themselves mutually accountable
● Team = the building blocks for organizational structure
○ Increase quality and productivity while reducing costs
○ Enhance speed and be powerful forces for innovation and change
● Linking pin concept [Team building block] = the manager acts as a senior in one group
and a subordinate in another such that all formal groups become interconnected across
the hierarchy of authority
Types of teams
● Work team = make or do things like manufacture, assemble, sell, provide service
● Project and development team = work on long-term projects but disband once the work
is completed
● Parallel team = operate separately from the regular work structure, and exist temporarily
● Management team = coordinate and provide direction to the subunits under their
jurisdiction and integrate work among subunits
● Transnational team = multinational members whose activities span multiple countries
● Virtual team = physically dispersed and communicate electronically more than face-to-
face
● Self-managed teams…
○ Traditional work group = groups that have no managerial responsibilities
○ Self-managed team = autonomous work groups in which workers are trained to
do all or most of the jobs in a unit and make decisions previously made by
frontline supervisors
■ Teams with the responsibilities of autonomous work groups, plus control
over hiring, firing, and deciding what tasks members perform
○ Autonomous work group = control decisions about and execution of a complete
range of tasks
● Types of groups
○ Command group = group of individuals who meet regularly under the guidance of
their supervisor to discuss organizational-related matters
■ Membership change slowly
■ Ex.: clerical worker, manufacturing worker, local sales managers reporting
to regional sales manager
○ Committee = group of people selected or appointed to perform a function for the
organization. Usually defined in the organization’s by-laws
■ Meets periodically, members have different permanent jobs
■ Ex.: budget committee, promotion committee, audit committee
 ○ Project/task force = a group of experts selected or appointed to solve a specific
problem, or to accomplish a specific objective. It disbands after the task has been
completed
■ Temporary, limited purpose, dissolves at the end
■ Ex.: product design teams, MIS teams for upgrading computer systems,
term project groups in classes
○ Blue Ribbon Task Force = a group of high-powered executives to investigate and
report on consequential global sues. Ex.: former CEOs of Fortune 500
companies, former University Presidents; or former Presidents of countries
● Team effectiveness
○ Team productivity = the output of the team meets or exceeds the standards of
quantity and quality expected by the customers, inside/outside the organization,
who receive the team’s goods and services
○ Member satisfaction = team members realize satisfaction of their personal needs
○ Member commitment = team members remain committed to working together
again; the group doesn’t burn out and disintegrate after a grueling project.
Looking back, the members are glad they were involved. Effective teams remain
viable and have good prospects for repeated success in the future
■ Social loafing = members who work less when in a group
■ Social facilitation effect = working harder in a group than when alone
● Norm = shared beliefs about how people should think and behave
● Role = sets of expectations for how different individuals should behave
○ Task specialist = advanced job related skills and abilities
○ Team maintenance role = develop and maintain team harmony
● Cohesion = degree to which members are motivated to remain in the group
● Cohesiveness = extent a group is attractive to members, want to remain in group &
member influence one another
○ Inverted U-shape relationship b/t degree of group cohesiveness and performance
○ Advantage
■ Strengthens interpersonal attraction among members
■ Generates a record of high performance and past success of the group
■ Fosters competition w/ other groups
○ Caution: Paralysis by analysis; Groupthink
 Perform
ance

Cohe
● Group development: Forming
sive ➔ Storming ➔ Norming ➔ Performing
○ Forming = members lay ground rules for types of behavior are acceptable
○ Storming = hostilities & conflict arise; people jockey for positions of power
○ Norming = members agree on shared goals & norms; closer relationships
develop
○ Performing = members channel their energies into performing tasks
Managing lateral relationships
● Gatekeeper = informs groups of important developments
● Managing outward = informing, parading, probing
○ Informing ➔ A team strategy that entails making decisions with the
team and then informing outsiders of its intentions
○ Parading ➔ A team strategy that entails simultaneously emphasizing
internal team building and achieving external visibility
○ Proboing ➔ A team strategy that requires team members to interact
frequently with outsiders, diagnose their needs, and experiment with
solutions
● Types of conflict
1. Task conflict (cognitive/substantive) = focus on differences in ideas and courses
of action in addressing the issues facing a group
2. Process conflict = differences of opinion about procedures a group should use to
achieve its goals
3. Relationship conflict (affective/emotional) = focus on interpersonal differences
among group members
● Conflict management strategies
○ Avoidance ➔ ignore problem or de-emphasize the disagreement
○ Accommodation ➔ cooperation by one party but no assertiveness
○ Compromise ➔ moderate attention to both parties’ concerns
○ Competing ➔ strong focus on own goals, littler concern for others
 Collaboration ➔ emphasizing cooperation and assertiveness, maximize
○
satisfaction
● Mediator = third party individuals who intervene to help settle conflict

Uncooperative Cooperative

Assertive Competing Collaborating

Compromising

Avoiding Accommodating
Unassertive

High Optimum level of conflict

lead to effective decision
making and high
performance
Level of organizational
performance

Level of
Low-too little conflict High-too much
conflict cause conflict causes
performance to performance to
suffer suffer
 Ch.14 Communication

Noise: can
interfere at
any point.
Blocks Receiver
Sender
perfect Receive message
Encode message
understandin Decode message
Choose a channel
g May send feedback for
Send the message
clarification
Feedbacks
● Communication = the transmission of information and meaning from one party to
another through the use of shared symbols
● Effective communication occurs when intended meaning of sender + Perceived
meaning of receiver are one and the same
● Verbal communication = written or spoken
● Nonverbal communication = facial, eye behaviors, kinesics, paralanguage, proxemics
● One-way communication = information flows in one direction, no feedback
● Two-way communication = information flows in two directors, the receiver provides
feedback, sender is receptive to the feedback
● Active listening (e.g., reflection)
● Communication barriers
○ Ethnocentrism = belief in superiority and importance of one’s own group
■ Leads individuals to divide their interpersonal worlds into in-groups and
out-groups
○ Stereotyping = oversimplify and generalize about group of people
■ More stereotype from a communicator, the harder it becomes for receiver
to overcome preconceived expectations and focus on the specifics of the
message being sent/received
○ Cultural distance = overall difference b/t two cultures’ basic characteristics -
language, level of economic development, and entrenched traditions and
customs
● Key factors
○ People
○ Situation
○ Negotiating process
● Key characteristics for People to be success in international negotiations
○ Listening ability, Social intelligence, Willingness to use team assistance, Self-
confidence, High aspiration, Influence at headquarters, Language skills
● Key set of situational circumstances
○ Location, Physical arrangement, Emphasis on speed and time, Composition of
the negotiation team
● Negotiation process stage
★ BATNA: Best Alternative To a Negotiated Agreement
1. Planning and preparation
2. Relationship building b/t negotiating parties
3. Information exchange
 4. Persuasion attempts
5. concessions/agreements
● Communication pitfalls
○ Perception = the process of receiving and interpreting information
○ Filtering = the process of withholding, ignoring, distorting information
● Communication channels
○ Oral (face-to-face discussion, telephone conversation, and formal presentation
and speech)
■ Disadvantage: it can lead to spontaneous, ill-considered statements, not
permanent records
○ Written (E-mail, memos, letter, report)
■ Disadvantage: sender has no control over where, when, or if the message
is read, senders don’t receive immediate feedback, receiver may not
understand parts of the message, the message must be longer to contain
enough information to answer anticipated questions
● Virtual office = a mobile office in which people can work anywhere as long as they have
the tools to communicate w/ customers and colleagues
● Media richness: degree to which a communication channel conveys information
○ More rich: Oral channel
○ Less rich: written channel
Organizational Communication
● Downward Communication = flow of information from higher to lower levels
○ Open-book management = sharing with employees at all levels of the
organization vital information: financial goals, income statements, budget, sale,
forecast
○ Coaching = dialogue with the goal of helping another be more effective and
achieve his or her full potential on the job
● Upward Communication = flow of information from lower to higher levels
○ Managing by Wandering Around (MBWA)
○ Ex.: at Southwest Airlines, CEO Kelleher goes around greeting employees
○ Management must not hold a grudge if they receive negative information
○ Open-door policy
● Horizontal Communication = information shared among people from the same
hierarchical level
○ Allows sharing of information, coordination, and problem solving among units
○ Helps solve conflicts
○ Provided social and emotional support to people
● Grapevine [Information communication] = the social network of informal communication
○ Informal communication = gossip, rumors, grapevine
● Official [Formal communication] = organized-sanctioned episodes of information
transmission
● Boundaryless organization = no barriers to information flow exist. Implies info available
as needed moving quickly and easily enough so that the organization functions far better
as a whole than as separate parts
○ Implies information available as needed moving quickly and easily enough that
the organization functions far better as a whole than as separate parts
1. floors/ceiling ➔ separate organizational levels
2. Walls that separate rooms ➔ separate different units and departments
 3. External walls ➔ separate the organization from external stakeholders
4. Global boundaries ➔ separate domestic from global operations
● Technology-mediated Communication = enhance human limitations (audibility, visibility)
○ Ephemeral behaviors: don’t last very long (mediation for distance, time)
○ Synchronous v. Asynchronous Technologies
■ Synchronous: phone, videoconference
■ Asynchronous: letter, e-mail, fax, voicemail

Ch.15 Human Resource Management

● HRM = formal systems for the management of people within an organization
● Strategic HRM = sustainability of competitive advantage
○ Valuable
○ Rare
○ Organized
○ Inimitable (difficult to imitate)
● Human Capital = the knowledge, skills, and abilities of employees that have economic
value
● HR planning process = right number and types of people are available, programming
specific activities, evaluating results
○ Demand forecast = determining how many and what type of people are needed
○ Supply of labor = how many and what type of employees the organization
actually will have
 ○ Job analysis = tool for determining what is done on a given job and what should
be done on that job. Systematic study of the job itself (task, responsibilities,
conditions)
○ Job description = the role, responsibilities, duties, and scope of a particular job
○ Job specification = skills, experience, education required to perform the job
■ RJP = Realistic Job Preview: explains the important aspects of the job
prior to the offer

● HR activities
○ Employee recruitment
○ Employee selection
○ Diversity and inclusion
○ Training and development
○ Performance appraisal
○ Reward systems
○ Labor relations
Staffing
● Recruitment → help to increase the pool of candidates that might be selected
for a job
● Selection → decision on whom to hire application, resume, interview,
reference, background check
○ Structure interview = selection technique that involves asking all applicants the
same questions and comparing their responses to a standardized set of answers
○ Situational interview → what would you do?
○ Behavioral description → what did you do?
● Workforce reduction
○ Layoff → result of acquisitions, divestiture, and increased competition
○ Outplacement → helping people who have been dismissed regain
employment
○ Employment at will [Termination] → the legal concept that an
employees can be terminated for any reason
● Legal issue: equal employment opportunity
○ Adverse impact = when a seemingly neutral employment practice has a
disproportionately negative effect on a protected group
● U.S. Equal Employment Law
 ○ Fair Labor Standard Act → creates salaried and hourly employee
categories, governing overtime and other rules; sets minimum wage,
child labor law
○ Equal Pay Act → prohibits gender-based pay discrimination b/t two jobs
substantially similar in skill, effort, responsibility, and working
conditions
○ Title VII → prohibits discrimination on the basis of Race, Color, Religion,
Sex, Nationality, Age
○ BFOQ (Bona Fide Occupational Qualification) → allows discrimination on
basis of: Religion, Sex, Nationality, Age
■ The burden is on the employer to prove a BFOQ
■ Example where BFOQ is justified and may be permissible:
● A state prison hires only men as guards in a jungle-atmosphere,
male-only prison
● Chinese restaurants hire only Chinese chefs
● Airline requires pilot to retire at the age of 60
○ Americans with Disability Act → requires workplace modifications to
facilitate disabled employees; prohibits discrimination against disabled
○ Age Discrimination Act → prohibits employment discrimination based on
age for persons over 40 years old; restrict mandatory retirement
○ Civil Right Act → disparate treatment impact suits, business necessity,
job relatedness; shifts burden of proof to employer; permits punitive
damages and jury trials
■ Punitive damage limited to sliding scale only in intentional discrimination
based on sex, religion, and disabilities
○ Civil Right Act Title VII → prohibits employers from discrimination based
on sex, race, color, nationality, religion. Applies to employer with 15 or
more employees
○ Family and Medical Leave Act → requires 12 weeks’ unpaid leaves for
medical or family needs: paternity, family member illness
○ Vocational Rehabilitation → requires affirmative action by all federal
contractors for persons with disabilities; defines disabilities as physical
or mental impairment that substantially limit life activities
Develop the workforce: needs assessment, training, development
● Training = teaching lower level employees how to perform their present job
○ Orientation training → introduce new employees to the company and
familiarize them with policies, procedures, culture…
○ Team training → facilitate working together on the job. Provides
employees with the skills and perspectives they need to collaborate w/
others
○ Diversity training → building awareness of diversity issues and
increasing skills
● Development = teaching employees broader skills needed for their present and future
jobs
● Needs assessment = an analysis identifying the job, people, and departments for which
training is necessary
Performance Appraisal 绩效考核= assessment of an employee’s job performance
(trait, behavior, result)
● Trait appraisal → subjective judgements about employee performance
● Behavioral appraisal → based on observable aspects (ex.: graphic rating
scale, BARS, critical incidents)
● Results appraisals → sales volume, units produced, or profits
● Management by Objective (MBO) = a process in which objectives set by a subordinate
and a supervisor must be reached within a given time period
○ Subordinate + supervisor meet and agree in advance on goals for the
subordinate
● 360-degree appraisal → using multiple sources of appraisal to gain full
perspective on performance (from: supervisor, subordinate, coworker)
Reward system
● Individual incentive plans → objective standard in which performance is
observed
● Gainsharing → saving money, profit sharing → incentives based on
productivity
● Merit pay → objective based performance not available, but pay is on
performance
● Compensation schemes → traditional pay structure vs. broadband pay
structure
● Employee Benefits → Cafeteria benefit program: employee choose from
menu; flexible: employees have credit
Labor relation = system of relations b/t workers and management
● National Labor Relations Act = labor organizations legal, National Labor Relations Board
● Collective Bargaining → arbitration (3rd party), union shop (must join union),
right to work (don’t have to join union)

Ch.16 Managing Diverse Workforce

● Diversity = involves embracing a proactive philosophy that sees differences as a positive
value
● Compositional diversity = do things alike, all men no women
● Psychological diversity = embrace and promote you to diversity
● Managing Diversity = managing a culturally diverse workforce by recognizing the
characteristics common to specific groups of employees while dealing with such
employees as individuals and supporting, nurturing, and utilizing their differences to the
organization’s advantage
○ Involves recruiting, training, promoting, and utilizing individuals with different
backgrounds, beliefs, capabilities, and cultures
○ Understanding and deeply valuing employee differences to build a more effective
and profitable organization
● Affirmative action = effort to recruit groups that have been discriminated against in the
past
 ○ Complementary with diversity management, NOT identical
○ Bring people of different background together for competitive advantage in the
organization
● Valuing diversity: McKinsey’s 7-s Framework
○ Strategies → mission, vision
○ Structure → visibility of diversity in senior administrative
○ Staffing → faculty, staff by level
○ Shared value
○ Students → undergrad, grad
○ Stakeholder
○ System
● Diversity challenges
1. Unexamined assumptions → it is difficult to the see the world in
someone else’s perfection b/c our own assumptions and viewpoints
seem more right
○ Men and women apply for same job assume women is a parent and will
be taking more time off for children
2. Power cohesiveness → lacks the tightly knit group and the degree to
which group members perceive, interpret, and act on their
environment in a similar or mutually agreed-upon ways
3. Communication Problems → misunderstanding, inaccuracies,
inefficiently, and slowness. Speed is lost when not all group members
are fluent in the same language or when additional time is required to
explain things
4. Mistrust and tension → fear of those who are different b/c of lack of
contact and low familiarity. Different generations and their ideas cause
stress in the workforce
5. Stereotyping → misrepresenting someone rather than evaluating their
contributions, capabilities, aspirations, and motivations
○ Can affect job assignments and work ethic
● Components of a diversified workforce: Gender, Race, Ethnicity, Nationality, Religion,
Disability, Sexual orientation, Education, Income
● Gender issues
○ Women make up ~40% of the workforce
○ ~60% of marriage are dual-earner marriage
○ ¼ married women in two-income households earns more than her husband does
● Glass Ceiling [Gender Issue] = an invisible barrier that makes it difficult for women and
minorities to move beyond a certain level in the corporate hierarchy
● Sexual Harassment = conduct of a sexual nature that has negative consequences for
employment
○ Quid pro quo 交换条件 = submission to or rejection of sexual conduct is
used as a basis for employment decisions
○ Hostile environment 充满敌意的环境 = unwelcome sexual conduct that
unreasonably interferes with job performance or creates a hostile 充满
敌意的 working environment
● The Law of Requisite Variety [W. Rose Ashby 1956] = Component of a diversified
workforce: gender, race, ethnicity, nationality, religion, disability, sexual orientation,
 education, income
● Minorities and immigrants
○ Black, Asian, Hispanic workers are ~⅕ of the labor force in the U.S.
○ By 2020, more than ~18% of the workforce is expected to be people of Hispanic
origin
○ Asian and Hispanics are growing the fastest in the U.S., followed by the African
American workforce
○ California, Hawaii, New Mexico, Texas and District of Columbia have become
majority minority
● The age of the workforce
○ The median age of workers is rising substantially while the number of young
workers is growing only slightly
○ The Bureau of Labor Statistics projects that entry-level workers will be in short
supply in the future
○ 70% of workers b/t 45-74 intend to work in retirement
Types of organizations
● Monolithic → low degree of structural integration, few women and minorities
○ If groups other than the norm are employed, they are in low status jobs and must
conform to the groups
○ High homogeneous employee population
● Pluralistic → relative diverse population, effort to involve women and
minorities
○ Use an affirmative action approach to managing diversity
○ Fails to address the cultural aspects of integration
● Multicultural → values cultural diversity and seeks to utilize and encourage it
○ Fully integrate gender, racial, and minority group members both formally and
informally
● Ambicultural → embrace, overcome, and unite “opposites” are more likely to
achieve long-term success
○ Ex. of opposite include for-profit and nonprofit, majority and minority, local and
global, short-term and long-term
Diversity assumptions and their implications for management
Misleading assumptions
● Homogeneity [Melting pot myth] → We are all the same
● Similarity → They’re all just like me
● Parochialism [Only-one-way myth] → Our way is the only way. We don’t
recognize any other way of living or working
● Ethnocentrism [One-best-way myth] → Our way is the best way. All other
approaches are inferior versions of our way
Appropriate assumptions
● Heterogeneity [Image of cultural pluralism] → We are not all the same; groups
within society differ across cultures
● Similarity & difference [They are not just like me] → Many people differ from
me culturally. Most people exhibit both cultural similarities and differences
when compared with me
● Equifinality [Our way if not the only way] →There are many culturally distinct
ways of reaching the same goal, working, and of living one’s life
 ● Culture contingency [Our way is one possible way] → There are many and
equally good ways to reach the same goal. The best way depends on the
culture of the people involved
How to cultivate a diverse workforce
1. Securing top management’s leadership and commitment
2. Assessing the organization’s progress toward goals → Organizational
assessment = evaluating workforce, culture, policies, and practices in areas
such as recruitment, promotions, benefits, and compensation
3. Attract employee
○ Recruitment
○ Accomodating work and family needs
○ There is a lower turnover ratio when corporate work and family policies are
implemented in the workforce a paid time off for family health related issues, help
with child care
○ Alternative work arrangement
■ More flexible work hrs.
■ Shorter work weeks and job sharing
4. Train employees
○ Awareness building → sensitize 进行宣传 employees to the assumptions they
make about other and the way their assumptions affect their behaviors and
decisions
○ Skill building → teach people how to work effectively with others in a
diverse environment
5. Retaining employees = support groups, mentoring, career development and promotion
○ Support groups → help form minority networks and other support
groups to promote information exchange
○ Mentoring → ensure high-potential people are introduced to top
management and socialized into the norms and values of the
organization
○ Career development/promotion → evaluate career progress as they
move up the rank
○ System accommodation → recognizing cultural and religious holidays,
different modes of dress, dietary restrictions
○ Accountability → hold managers accountable for hiring a diverse
workforce
Measures on diversity scorecards
● Ex. of college campus example
○ Access
○ Retention
○ Excellence
○ Receptivity