LECTURE OUTLINE AND LECTURE NOTES



LECTURE OUTLINE AND LECTURE NOTES

The world of work

Tony Gets Assigned to a Project (Text pages 144-145)

Tony has been complemented for his work so far as manager of Taco Barn. Of special note was Tony’s decision to ask Kevin to write a strategic plan for Taco Barn, which was considered very creative. Tony has now been asked to participate in a company-wide project to create a leadership development program. He will need Kevin to fill- in his absence. Tony is a bit nervous to leave his store and unsure of his ability to help determine the culture and future leadership of the company.

1. From what you know of Tony so far, how would you describe his leadership style? Refer to page 150 for some suggested classifications of different leadership styles.

Tony’s first managerial experience creating and implementing a staff schedule was done in an autocratic style, where the leader makes decisions for the group. However, when follow-up to this exercise was necessary, Tony used a democratic style of leadership, where the manager guides and encourages a group decision. This illustrates a key concept: the best way to lead today is using situational leadership, recognizing that effective leadership must draw upon a range of skills and techniques that depend on the individual situation and not the prescribed leadership model.

2. How would you describe the organizational culture of Taco Barn?

Taco Barn hires individuals who have the ability to organize and lead in a store setting where there is a participatory management style based on a small, working environment. In keeping with this environment of operation, Taco Barn looks to hire and create a culture of managers/employees that fits into its system. This culture requires hiring, retaining, and promoting people who are similar to current employees in important ways. A person’s ability to fit in can be important to the process.

3. Do you think the consultants’ recommendation of an employee survey is a good idea? Why or why not?

Yes, but with some reservations. If the company is surveying employees and learning more about their leadership styles with the intent to use this information, the time and resources to accomplish this would be worthwhile. However, if the survey process becomes more of a distraction and less productive in nature, the company would be wasting valuable employee time. For the survey to be successful and useful, a written report needs to be created, outlining the findings and including a clear message about the purpose and use of the survey.

4. List six questions that you think should be included in the survey.

1) Define a leader.

2) Give examples of good leadership skills.

3) Give examples of how you have been a leader in your job.

4) Describe the leadership style of your direct boss, regional boss and any corporate leaders you have been in contact with.

5) How would you describe each leader individually and the leadership style of the company collectively?

6) What do you like about the leaders you work with or for? What would you change or add to the leadership of this organization?

|Lecture outline lecture notes |

| I. power, authority, and leadership | |

|Learning objective 1 |Powerpoint 6-1 |

|Define leadership, power, and authority. (Text page 146) |Chapter Title |

|A. Power is the ability to influence, |(Refers to text page 144) |

|command, or apply force; a measure of a person’s potential to get others to do what he or she wants | |

|them to do, as well as to avoid being forced by others to do what he or she does not want to do. | |

|1. Power can have both a positive and negative form. |PowerPoint 6-2 |

|a. Positive power results when the exchange is voluntary and both parties feel good about the |Learning Objectives |

|exchange. |(Refers to text page 145) |

|b. Negative power results when the individual is forced to change. | |

|2. Power in organizations can be | |

|exercised upward, downward, or |PowerPoint 6-3 |

|horizontally. |Power, Authority, and Leadership |

|B. Authority is legitimate exercise of power, the right to issue directives and |(Refers to text page 146) |

|expend resources, related to power but narrower in scope. | |

|1. Authority is a function of position in the hierarchy, flowing from the top to the bottom on the |TEXT Figure 6.1 |

|organization. |Sources of Power (Text page 146) |

|2. An individual can have power without having formal authority. | |

|C. Leadership is the ability to influence people to willingly follow one’s guidance or adhere to | |

|one’s decisions. | |

|1. A leader is one who obtains followers and influences them in setting and achieving objectives. |bonus internet |

|2. Leaders use power in influencing group behavior. |exercise 6-1 |

| |The Most Powerful Women in Business |

| |Each year Fortune magazine lists the |

| |most powerful women in business. This |

| |exercise directs the students to |

| |research the list for the current |

| |year. See complete exercise on page |

| |6.34 of this manual. |

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| II. leadership and management | |

|Learning objective 2 |PowerPoint 6-4 |

|DISCUSS LEADERSHIP AS IT RELATED TO MANAGEMENT. (TEXT PAGE 147) |Leadership and |

|A. Leadership and management are not |Management |

|necessarily the same. |(Refers to text page 147) |

|B. Effective leadership creates a vision of the future. | |

|C. Management is the process of planning, organizing, staffing, motivating, and controlling through | |

|the use of formal authority. |lecture link 6-1 |

| |Why Good Employees Can Be Bad Managers|

| |Good technical employees can make good|

| |managers, of course, but many do not. |

| |See complete lecture link on page 6.31|

| |of this manual. |

| III. leader attitudes | |

|Learning objective 3 | |

|EXPLAIN LEADERSHIP ATTITUDES. (TEXT PAGE 147) | |

|A. Douglas McGregor developed Theory X and Theory Y attitude profiles, or |TEXT Figure 6.2 |

|assumptions, about the basic nature of people. |Assumptions About People |

|Learning objective 4 |(Text page 147) |

|DESCRIBE THE DIFFERENCES BETWEEN A THEORY X AND THEORY Y MANAGER. (TEXT PAGES 147-148) | |

|1. A Theory X leader would likely use | |

|a much more authoritarian style of leadership than a Theory Y leader. |PowerPoint 6-5 |

|B. McGregor identified the self-fulfilling prophecy, the relationship between a leader’s expectations|Douglas McGregor’s |

|and the resulting performance of subordinates. |Leadership Theory |

|1. If a manager’s expectations are high, productivity is likely to be high. |(Refers to text page 147) |

|2. If a manager’s expectations are low, productivity is likely to be poor. | |

|Progress Check Questions (Text page 148) | |

|Define the terms power, authority, and leadership. | |

|Explain the different expectations of Theory X and Theory Y managers. | |

|Would you describe yourself as a Theory X or a | |

|Theory Y manager? Why? | |

|Define the self-fulfilling prophecy of management. | |

|ETHICAL MANAGEMENT (Text page 149) |

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|The construction foreman is behind schedule on a building project and has been told by the president of the company to hire a few illegal |

|immigrants to get the job caught up and avoid missing a deadline with the client. What action should the foreman take? |

|Because of the client’s impatience, the next few weeks on the project will be difficult. Your boss thinks that hiring illegal immigrants |

|could save time and money. However, this is a very unsatisfactory solution. There is a growing backlash against illegal immigration in this |

|country. Hiring undocumented workers is illegal in some cities and states. By the time this manual is read, there may even be a federal law |

|with penalties that cut deep. Remember, it’s not your boss that will be hiring workers, it is YOU. You are the one who will face the |

|consequences, and there is no guarantee that the owner will stand behind you if difficulties arise. |

|Probably your next step should be to discuss the problem with the client to find other ways to “catch the project up” without suffering any |

|penalties. A discussion with your attorney wouldn’t be a bad idea, either. |

| IV. framework for classifying leadership studies | |

|A. Leadership studies can be classified by |PowerPoint 6-6 |

|focus. |Framework for Classifying Leadership |

|1. Focus refers to whether leadership is studied as a set of traits or a set of |Studies |

|behaviors. |(Refers to text page 148) |

|a. Traits refer to what characteristics the leader possesses. | |

|b. Behaviors refer to what the leader does. | |

|2. Approach refers to whether leadership is studied from a universal or contingent approach. | |

|a. The universal approach assumes there is one best way to lead |bonus internet |

|regardless of the circumstances. |exercise 6-2 |

|b. The contingent approach |Self-Assessment for |

|assumes the best approach to leadership is contingent on the situation. |Leading as a Manager |

|B. Trait Theory |An online self-assessment tool helps |

|1. The trait theory stressed what the leader was like rather than what the leader did. |identify leadership strengths and |

|2. Some traits do seem to stand out – dominance, intelligence, extroversion, and adjustment – but the|weaknesses. See complete exercise on |

|differences are small. |page 6.35 of this manual. |

|3. At best, traits may influence the | |

|capacity to lead. | |

|C. Basic Leadership Styles | |

|1. Other studies have focused on the | |

|basic leadership styles. |TEXT Figure 6.3 |

|a. The autocratic leader makes more decisions for the group. |Framework for Classifying Leadership |

|b. The laissez-faire leader allows people within the group to make all decisions. |Studies |

|c. The democratic leader guides and encourages the group to make decisions. |(Text page 148) |

|2. At first glance, the democratic style seems the most desirable, but the | |

|evidence is unclear. | |

|D. Ohio State Studies | |

|1. The studies at Ohio State University were conducted to discover the behavior of successful | |

|leaders. | |

|2. These studies used the Leader | |

|Behavior Description | |

|Questionnaire (LBDQ,) a questionnaire designed to determine what a successful leader does, regardless| |

|of the type of group being led. |PowerPoint 6-7 |

|3. Two leader behaviors appeared consistently. |Trait Theory |

|a. Consideration refers to the leader behavior of showing concern for individual group members and |(Refers to text page 149) |

|satisfying their needs. | |

|b. Initiating structure refers to the leader behavior of structuring the work of group members and | |

|directing the group toward the achievement of the group’s goals. |critical thinking |

|E. University of Michigan Studies |exercise 6-1 |

|1. The Institute for Social Research of the University of Michigan conducted studies of group |Traits of Leaders |

|behavior at the |What traits are common to great |

|Prudential Insurance Company in Newark, New Jersey. |leaders? See complete exercise on page|

|2. They found that managers of high-producing work groups were more likely to: |6.36 of this manual. |

|a. receive general rather than close supervision from their superiors | |

|b. like the amount of authority and responsibility they have in their job |critical thinking |

|c. spend more time in supervision |exercise 6-2 |

|d. give general rather than close supervision to their employees |Leadership Situations |

|e. be employee-oriented rather than production-oriented |Different situations call for |

|3. Supervisors of low-producing work groups were production-oriented and gave close supervision. |different leadership styles. This |

|4. The Institute director, Rensis Likert, developed four styles of leadership: |exercise asks students to identify |

|a. System 1: exploitative |specific situations. See complete |

|authoritative |exercise on page 6.37 of this manual. |

|b. System 2: benevolent | |

|authoritative | |

|c. System 3: consultative | |

|d. System 4: participative |TEXT Figure 6.4 |

|5. He concluded that System 4 was the most effective style of management. |Relationship Between Styles of |

| |Leadership and Group Members |

| |(Text page 150) |

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| |PowerPoint 6-8 |

| |Ohio State Studies |

| |(Refers to text pages 150-151) |

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| |PowerPoint 6-9 |

| |University of Michigan Studies |

| |(Refers to text pages 151-153) |

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|CASE INCIDENT 6.1 |

|Changes in the Plastics Division (Text page 152) |

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|Rusty Means is the general manager of the plastics division of Warner Manufacturing Company and has had great success in running his |

|department. Rusty has an autocratic management style and the employees have responded well to his task-orientated operating style. Rusty’s |

|direct boss has just retired and the new replacement, Wallace Thomas, wants to make changes. Thomas wants to develop a planning committee |

|and bring employees into the decision-making process. Rusty is not sure how he will adapt to these changes, especially with the success he |

|enjoys under the former arrangement with his general manager. |

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|1. What different styles of leadership are shown in this case? |

|Based on the comments, Ed Sullivan operated using a laissez-faire style in which he allowed people within the group to make all the |

|decisions. He delegated decision-making power to Rusty Means. In turn, Rusty ran with an autocratic style of leadership where he made all |

|the decisions for the group. Now, the newly hired general manager, Wallace Thomas, is trying to involve employees in the decision-making |

|process using a democratic leadership style, which guides and encourages the group to make decisions. |

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|2. What style of leadership do you think Wallace will have to use with Rusty? |

|The management style Rusty has been using (autocratic) is in conflict with the approach Wallace would like to initiate (more democratic). |

|This creates a difference in styles. Wallace has to decide whether he wants to impose the new autocratic style of management on Rusty or |

|allow him to continue using the approach he has previously used. This question is a good discussion starter: is there one best leadership |

|approach? Why or why not? |

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|3. Do you agree with Rusty? Why or why not? |

|Rusty has been successful using a task-orientated leadership approach. This style has been well accepted by the employees and the overall |

|results have been positive. Rusty sees little value in changing his style of leadership. For these two individuals to operate successfully, |

|Wallace might need to become more of a situational leader, analyzing what works in this situation. Wallace and Rusty will need to adjust |

|their styles to some degree, analyzing the benefits and limitations of each method, and find some middle ground that allows them to work |

|together for the good of the company and department. |

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|4. If “products are produced on schedule and of such quality that few customers complain,” why should there be any changes? |

|If the department is working well using Rusty’s autocratic approach, maybe a “if it ain’t broke, don’t fix it” mindset would be best. |

|However, an autocratic style may be preventing employees from developing or suggesting improvements. Instead of trying to force Rusty to |

|make major changes right away, maybe Wallace should spend some time meeting with Rusty, touring the department, asking questions, getting |

|feedback, etc. Both Rusty and Wallace need to communicate more effectively. |

| F. The Managerial Grid | |

|1. Robert Blake and Jane Mouton developed the Managerial Grid, a two-dimensional framework rating a | |

|leader on the basis of concern for people and concern for production. | |

|2. The identified five basic styles of |TEXT Figure 6.5 |

|management: |The Managerial Grid |

|a. authority-obedience (9,1 position) |(Text page 154) |

|b. country club management (1,9 position) | |

|c. team management (9,9 position) | |

|d. impoverished management (1,1 position) |PowerPoint 6-10 |

|e. organization man management (5,5 position) |The Managerial Grid |

|3. The Managerial Grid is intended to help managers learn what their leadership style is and move |(Refers to text pages 153-154) |

|toward a 9, 9 team management style. | |

|G. Contingency Approach to Leadership | |

|1. Research began to focus on the contingency approach to leadership, which theorizes that different | |

|situations and conditions require |TEXT REFERENCE |

|different management approaches. |Career Management Box: Basics of |

|2. An early style identified by Fred Fiedler focused on the match between the leader’s personality |Career Planning Objectives |

|and the situation. |A series of questions can help |

|3. He defined two basic leader personality traits. |establish your career planning |

|a. Task-motivated leaders gain |objectives. (Box in text on page 154.)|

|satisfaction from the performance of a task. |An |

|b. Relationship-motivated leaders gain satisfaction from interpersonal relationships. |additional exercise and discussion is |

|4. The least preferred co-worker scale (LPC) was used to measure a person’s orientation. |available in this chapter on page |

|a. Relationship-motivated leaders were presumed to be motivated to have close interpersonal relations|6.28. |

|with others. | |

|b. Task-oriented leaders were |Bonus Case 6-1 |

|presumed to be motivated to |Leading in a Leaderless Company |

|accomplish the task. |The 21st century may be |

|5. Fiedler next developed a favorable-unfavorable continuum based on three major dimensions: |unfriendly to leaders who try to run |

|a. Leader-member relations refer to the degree others trust and respect the leader and to the |their companies through sheer force of|

|leader’s friendliness. |will. See complete case, discussion |

|b. Task-structure is the degree to which job tasks are structured. |questions, and suggested answers on |

|c. Position power refers to the power and influence that go with a job. |page 6.39 of this manual. |

|6. These dimensions are graphed in a complex eight-celled continuum. | |

|H. Continuum of Leader Behaviors | |

|1. Robert Tannenbaum and Warren Schmidt identified three forces |TEXT Figure 6.6 |

|involved in finding the most effective leadership style: |Fiedler’s Classification of Situations|

|a. forces in the manager | |

|b. forces in the subordinate |(Text page 155) |

|c. forces in the situation | |

|2. They concluded that one style of leadership is not effective in all situations. | |

|I. Path-Goal Theory of Leadership | |

|1. The path-goal theory of leadership attempts to define the relationships between a leader’s |PowerPoint 6-11 |

|behavior and the subordinates’ performance and work activities. |Contingency Approach to Leadership |

|a. Leader behavior influences the motivation of subordinates when they see it as a step toward future|(Refers to text pages 154-155) |

|satisfaction. | |

|b. Behaviors can either increase or decrease employee expectancies. | |

|2. In path-goal theory, there are four | |

|basic leadership behavior types: | |

|a. role classification leadership | |

|b. supportive leadership | |

|c. participative leadership | |

|d. autocratic leadership | |

|3. Each of these leadership behaviors results in different levels of performance and subordinate | |

|satisfaction. | |

|J. Situational Leadership Theory | |

|1. According to the situational leadership theory, as the level of maturity of followers increases, | |

|structure should be reduced while | |

|socio-emotional support should first | |

|be increased and then gradually | |

|decreased. | |

|2. As followers progress from immaturity to maturity, the leader’s behavior should move from: | |

|a. high task-low relationships to → | |

|b. high task-high relationships to → | |

|c. low task-high relationships to → | |

|d. low task-low relationships | |

|K. Transactional, Transformational, and Charismatic Leaders |TEXT Figure 6.7 |

|Learning objective 5 |Leadership Style and Leadership |

|EXPLAIN THE DIFFERENCES BETWEEN TRANSACTIONAL, TRANSFORMATIONAL, AND CHARISMATIC LEADERSHIP STYLES. |Situations |

|(TEXT PAGES 158-159) |(Text page 155) |

|1. Another approach is based on how leaders and followers influence one another. | |

|2. Using transactional leadership, leaders engage in an unemotional bargaining relationship with | |

|their followers. | |

|3. Transformational leadership involves cultivating employee acceptance of the group mission. | |

|4. Charismatic leadership involves a leader who can successfully influence employee behavior on the | |

|strength of personality or a perceived charisma, without the formal power or experience to back it | |

|up. | |

|Progress Check Questions (Text page 160) | |

|Define the following leadership styles: autocratic, laissez-faire, and democratic. | |

|Summarize the findings of both the Ohio State and University of Michigan leadership studies. |TEXT Figure 6.8 |

|Explain the path-goal theory of leadership. |Forces Affecting the Leadership |

|Explain the differences between transactional, transformational, and charismatic leadership styles. |Situation |

| |(Text page 156) |

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| |TEXT Figure 6.9 |

| |Continuum of Leader |

| |Behavior (Text page 156) |

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| |PowerPoint 6-12 |

| |Continuum of Leader |

| |Behaviors |

| |(Refers to text page 156) |

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| |PowerPoint 6-13 |

| |Path-Goal Theory of |

| |Leadership |

| |(Refers to text pages 157-158) |

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| |TEXT Figure 6.10 |

| |Situational Leadership Theory |

| |(Text page 158) |

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| |PowerPoint 6-14 |

| |Transactional, Transformational and |

| |Charismatic Leadership |

| |(Refers to text pages 158-159) |

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| |critical thinking |

| |exercise 6-3 |

| |Crisis Management |

| |When a business is confronted by a |

| |crisis, managers must react quickly to|

| |keep the organization responsive. See |

| |complete exercise on page 6.38 of this|

| |manual. |

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| |TEXT REFERENCE |

| |Study Skills Box: |

| |Return on My Investment |

| |What are the returns involved in |

| |improving study skills? (Box in text |

| |on page 160.) An additional exercise |

| |and discussion is available in this |

| |chapter on page 6.30. |

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| V. lessons from leadership | |

|studies |PowerPoint 6-15 |

|A. It is hard to predict who will be a good leader. |Lessons from Leadership Studies |

|B. There is no one best way to lead: most leadership is situational. |(Refers to text page 160) |

|C. The effectiveness of a leadership style can be seen in the atmosphere of the organization. | |

| |lecture link 6-2 |

| |Best Business Leaders of the 20th |

| |Century |

| |The top executives of the 20th |

| |century, as chosen through a survey of|

| |executives. See complete lecture link |

| |on page 6.31 of this manual. |

| VI. managing corporate culture | |

|Learning objective 6 |PowerPoint 6-16 |

|IDENTIFY STRATEGIES FOR EFFECTIVELY MANAGING CORPORATE CULTURE. (TEXT PAGES 160-167) |Managing Corporate |

|A. The word “culture” has many meanings. |Culture |

|1. culture is the set of important |(Refers to text pages 160-161) |

|understandings (often unstated) that members of a community share. | |

|2. In an organization, culture is similar to a human’s personality. | |

|3. An organization’s culture is transmitted through: | |

|a. long-standing, unwritten rules | |

|b. shared standards | |

|c. standards for social etiquette and demeanor | |

|d. established customers for relating to peers, subordinates, and superiors | |

|e. other traditions | |

|4. corporate culture communicates how people in an organization should behave by establishing a value| |

|system conveyed through rites, rituals, myths, legends, and actions. | |

|5. Or, more simply, corporate culture means “the way we do things around here.” |lecture link 6-3 |

|B. Cultural Forms of Expression |The Culture of the Real Rocket |

|1. Culture has two basic components; |Scientists |

|a. substance, the meanings |For 40 years the Jet Propulsion |

|contained in its values, norms, and beliefs |Laboratory has planned interplanetary |

|b. forms, the practices whereby these meanings are expressed, affirmed, and communicated to members |missions for NASA guided by a few key |

|C. How Does Culture Originate? |rules. See complete lecture link on |

|1. The cultures of some organizations originate with one person who provides a living example of the |page 6.32 of this manual. |

|major values of the organization. | |

|a. However, more than half of an | |

|organization’s culture develops in response to the environment and the needs of employees. | |

|b. The four distinct factors discussed below contribute to an organization’s culture. | |

|2. History | |

|a. Culture is built on awareness of the organization’s history. | |

|b. Humans tend to embrace beliefs and values and to resist changes. | |

|3. Environment | |

|a. Environment shapes culture | |

|because all organizations interact with their environments. | |

|b. Example: deregulation of the telecommunications industry in the 1980s. | |

|4. Staffing | |

|a. Organizations tend to hire, retain, and promote people who are | |

|similar to current employees. | |

|b. This organization “fit” ensures that current values are accepted and challengers are screened out.| |

|c. Example: Medtronic’s leader Bill George | |

|5. Entry socialization | |

|a. The organization’s values, norms, and beliefs are rarely written down. | |

|b. New employees must be taught the culture. | |

|c. entry socialization is the adaptation process by which new employees are introduced and | |

|indoctrinated into the organization. | |

|D. Strong and Weak Corporate Cultures | |

|1. A strong corporate culture: | |

|a. is clearly defined | |

|b. reinforces a common understanding about what is important | |

|c. has the support of management and employees | |

|2. In weak cultures, individuals often act in ways that are inconsistent with the company’s way of | |

|doing things. | |

|Progress Check Questions (Text page 163) | |

|Define the term “culture.” | |

|Where does organizational culture originate? | |

|Explain the four distinct factors that contribute to an organization’s culture. | |

|Summarize the characteristics of a weak organizational culture. | |

|E. Identifying Culture |PowerPoint 6-17 |

|1. Researchers have identified seven characteristics that define an organization’s culture: |How Does Culture |

|a. individual autonomy |Originate? |

|b. structure |(Refers to text pages 161-163) |

|c. support | |

|d. identification | |

|e. performance-reward | |

|f. conflict tolerance | |

|g. risk tolerance | |

|2. Culture can be grouped into one of four basic types, determined by: | |

|a. the degree of risk associated with the organization’s activities | |

|b. the speed with which the | |

|organization and its employees get feedback on their decisions | |

|3. The tough-person, macho culture is characterized by individualists who regularly take high risks | |

|and get quick feedback on whether their decisions are right or wrong. | |

|a. Teamwork is not important, and the value of cooperation is | |

|ignored. | |

|b. People who need to gamble do well in this culture. | |

|4. The work-hard/play-hard culture encourages employees to take few risks and to expect rapid | |

|feedback. | |

|a. Activity and persistence are the keys to success. | |

|b. Team players who are friendly and outgoing thrive. | |

|5. The bet-your-company | |

|culture requires big-stake | |

|decisions with considerable time | |

|passing before the results are known. | |

|6. The process culture involves low risk with little feedback. | |

|a. Employees must focus on how things are done rather than on the outcomes. | |

|b. In this atmosphere employees | |

|become cautious and protective. | |

|7. Organizational subcultures | |

|a. Organizations often have multiple subcultures. | |

|b. The values, beliefs, and practices can vary from one part of the | |

|organization to the other. | |

|c. Even with different subcultures, some values are consistent. | |

|8. Incompatible cultures are one reason promising mergers fail. | |

|Progress Check Questions (Text page 166) | |

|Which seven characteristics capture the essence of an organization’s culture? | |

|Explain the four basic types of organizational culture. | |

|Think of the organization you currently work for (or one you have worked for in the past.) Which of | |

|the four basic types of culture most accurately describes that organization? Provide an example to | |

|support your selection. | |

|Define the term “organizational subculture.” | |

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| |TEXT Figure 6.11 |

| |Characteristics of a Strong Corporate |

| |Culture |

| |(Text page 163) |

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| |TEXT Figure 6.12 |

| |Characteristics of a Weak Corporate |

| |Culture |

| |(Text page 163) |

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| |PowerPoint 6-18 |

| |Identifying Culture |

| |(Refers to text pages 164-165) |

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| |TEXT Figure 6.13 |

| |Generic Types of |

| |Organization Culture |

| |(Text page 164) |

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|CASE INCIDENT 6.2 |

|The Way We Do Things (Text page 166) |

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|The Fitzgerald Company has been the industry leader in producing consumer products for years. However, sales and market shares have been in |

|decline now for the past several. The company is now considering changing the company culture to redefine itself and regain the success it |

|has enjoyed in the past. |

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|1. Describe, in general terms, the corporate culture at Fitzgerald Company. |

|The corporate culture for the Fitzgerald Company has been one of work-hard-play-hard, where activity is the key to success. Rewards accrue |

|for persistence and the ability to find a need and fill it. Because of the need for volume, team players who are friendly and outgoing |

|(sales types) thrive. |

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|2. What’s wrong with a business philosophy based on the belief “that customer relations and a strong selling orientation are the keys to |

|business success”? |

|Meeting the needs of the customer is essential to success in areas such as product design, implementation, and delivery. Creating and |

|selling products that please the customer impacts the company’s total revenue. However, revenue is not the same thing as profit. Profit is |

|what is left after costs have been subtracted from revenue. Unless a product can be produced in a cost-effective way, more sales won’t do a |

|thing for profit. |

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|3. What does Valerie mean when she says Fitzgerald Company may have to change its culture? What are some of the necessary changes? |

|For the Fitzgerald Company, its corporate culture has been successful in the past. However, losses in sales and market shares have now |

|prompted its president to look at how the company culture affects sales and expenses. Changing a company culture will be a difficult process|

|for many reasons. |

|Based on research, the Fitzgerald Company may have to change several characteristics of the company to foster a new culture. These |

|characteristics include individual autonomy (degree of responsibility/ independence for individuals in the organization), structure (rules |

|and regulations), support (managers to subordinates), identification (employee identification to the organization as a whole), |

|performance-reward (rewards for performance), conflict tolerance (willingness to hones and open about differences), and risk tolerance |

|(degree at which employees are encouraged to be aggressive/innovative and risk seeking). |

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|4. Discuss the problems the company may encounter in attempting to implement changes. |

|The biggest challenge the Fitzgerald Company will face is the length of time it will take to implement and change its corporate culture. |

|This process usually takes 6 to 15 years. It is also expensive. Because of the cost, time, and difficulty in changing culture, some might |

|argue that it is easier to change the people within the organization. This assumes businesses promote people who fit their organization, and|

|the easiest way to change the organization’s culture is to change the people. However, it makes more sense to strengthen or fine-tune the |

|current cultural structure. |

| F. Changing Culture | |

|1. It usually takes from 6 to 15 years to successfully change organizational culture. |PowerPoint 6-19 |

|2. According to Allan Kennedy, there are only five reasons to radically change organization culture. |Changing Culture |

|3. It is possible to strengthen or fine-tune the current culture without wholesale cultural changes. |(Refers to text pages 166-168) |

|4. The easiest if not the only way to change an organization’s culture is to change its people. | |

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| |Bonus Case 6-2 |

| |Turning Tyco Around |

| |After Tyco’s former CEO Dennis |

| |Kozlowski’s conviction for looting |

| |$600 million from the company, Ed |

| |Breen was brought in to rescue the |

| |troubled company. See complete case, |

| |discussion questions, and suggested |

| |answers on page 6.41 of this manual. |

THE WORLD OF WORK

Taco Barn Gets Some Surprising Feedback (Text page 167)

Tony has successfully participated in the leadership development survey and information about this survey is available for discussion with his supervisor. The reports show that some employees are very happy while others are unhappy. The results suggest that the company needs to address how leadership style impacts corporate culture.

1. Should the leadership team have been surprised by the survey results? Why or why not?

Not really. The purpose of the survey was to identify what works and what doesn’t. Identifying problem areas is the first step in solving the problem.

2. Should they be pursuing a “right” leadership style? Why or why not?

Is there really one “right” leadership style? Many experts will answer that the right style depends on the leader, the employees, and the situation. Mandating one leadership style might inadvertently destroy successful leadership situations. Effective leadership requires drawing on a range of skills and techniques, not a prescribed leadership model. However, that being said, the poor performances of the “problem children” still needs to be addressed, but not with a one-size-fits-all approach.

3. If Taco Barn doesn’t have a clear sense of culture (as the survey results appear to indicate), where and how does it start to develop one?

Taco Barn culture is not clearly defined. However, culture can’t just be designed and implemented. It grows over time, as the organization develops a strong understanding of what is important and what has the support of management and employees.

The first step in establishing the Taco Barn culture should be defining the essence of the organization. These characteristics include individual autonomy, structure, support, identification, performance-reward, conflict tolerance, and risk tolerance.

4. What should the leadership of the Taco Barn organization do now?

The leadership has begun defining its culture and communicating it to employees throughout the organization. Employees can be shown how the development of this culture can be a positive step in developing a more focused, established company with leadership skills that can excel in the restaurant industry, providing a good working environment for its employees. This will help employees both in the short run and long run to identify the culture of their company and allow them to associate and identify more with the company as a whole rather than just their individual store.

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