Exam 2 COM 105

Chapter 5-9 CHAPTER 5 Decision Leadership in groups

3/19/2013 12:43:00 PM

Ways groups make decisions: 1. Consensus Consensus: uncontested support for a decision by all members involved in process Unanimous (everyone agrees upon it) consensus (jury) o Benefit: little to no conflict in the implementation process o Challenge is that it takes a very long time to reach absolute consensus. Recall the conflicts you have experienced in group projects Majority consensus (natural resource conflicts or politics) False consensus: when groups are silenced from pressure to not contest a decision 2. Majority rule Process of voting for or against the various alternatives Followed by almost all political bodies Principle benefits: o Equal voice (one person- one vote) Facilitates moving decisions forward (give it an up or down vote) Principal drawback o The process does not encourage innovation Consensus forces people to work together to find solutions which address all concerns

3. Minority Rule Occurs when a small group within a group make the decision There are two types: o Minority rule in decision: when a small group decides for the` group o Minority veto: when a small group effectively stops a decision from being made

Often to maintain the status quo by blockading a discussion for change Often this is accomplished through generalizations and assessment of alternatives based upon shifting criteria

4. Expert opinion Decisions are driven by technical or specialized knowledge in a particular area Principal benefit: most technically sound option is chosen Principal drawbacks o Problems are defined in a narrowly technical way and other voices/ interests are systematically shut out o Expert opinion decisions are NOT democratic 5. Authority Rule Occurs when the person primarily responsible for organizational management and possessing decision authority chooses among available options Principal benefits o Efficiency (democracy is slow and unified command is fast) o Responsibility for decision clearly lies with a person Principal drawback: person making decision is likely NOT the most technically knowledgeable o Ex: us president and congress are ultimately responsible for decisions concerning natural disasters, complex technology choices and economic poly; yet lots of people have a more technical qualifications than they do

Leadership Attributes What Leadership Does: Helps people make sense or understand something in a particular way. Makes sense of circumstances and gets people to see them in alternative (hopefully, better) ways. In sum: Leadership is _____________. This involves: 1 understanding various leadership styles 2 organizational vision , mission structure and image Organizational Leadership Styles:

Black and mouton model ^ Leadership Concerns: Concern for task: degree of concern for the function of the organization Ex: getting the morning paper printed and delivered, filling a shoe order out the door on time In extremes: this person is an authoritarian manager with little focus on shared vision Concern for People: Degree of concern for people that organization is fulfilling Examples: boss who wants to friend employees Leadership Style: Impoverished: indifferent to both people and organizational mission Going through the motions but not really committed to organization, its future, the development of its people or resources Country club: focused mostly on people dynamics and making employees/ followers feel good about work at the cost of productivity. Want everyone to be happy

Authoritarian: leadership may perform well on technical and strategic accomplishments but most often at the cost of people and relationships. Sweatshop Team leader or democratic: ongoing balance of task and people concerns. Tends to work with people and manage a collaborative process. We must adapt leadership style to fit with followership and context characteristics Impoverished: indifferent to both people and organizational mission. You arent helping anyone what is the locus of leadership? o Locus: the intersection follower characteristics, situation characteristics and leadership characteristics Superstar leader

Adapting for Islamic cultures: http://www.youtube.com/watch?v=BNwpL3z6wZU&feature=related Adapting for Indigenous cultures in America: http://www.youtube.com/watch?v=ts8JXuMN0Q4 Leadership Mission and Vision: The tools of Innovative leadership: Envisioned Future Convictions Mission Integration of Mission and Structure Stakeholder Management Leadership Mission and Vision Map of Innovative Leadership:

Future Vision External Leadership

Public Image

Image Campaigns Organizational Mission Organizational Structure & Culture Internal Leadership Strategic Objectives External leadership and internal leadership should have an arrow running back and fourth in a circle between each other Envisioned Future: A Clearly Envisioned Future: A vivid description of what you see in the future for your team in five, ten or more years in the future. Visionary Leadership involves Describing your IDEAL workplace (social movement, political structure, etc) Thinking beyond what is take-for-granted or assumed today Cultivating support (shared vision) among leaders and followers Willingness to resist and experience resistance A Clearly Envisioned Future: Ex: Martin Luther Kings I have a Dream speech Convictions Convictions: Convictions are a commitment or certainty (not necessarily total!) to principled action. Doing what you feel is right. Doing now what you see as leading to a different and better future state.

 Cultivating a shared commitment among key players Conviction: Behavior Continuous Learning: Actively engage View work and life as an ongoing "learning program", and then we can continue to learn from almost everything in life. Integrity: Matching statements and behaviors? Doing what is right. Organizational Mission Organizational Mission: Mission states, in 1-2 sentences, why your company (or group, team, social movement, et cetera) exists. Vision is the overall picture of where we are headed Conviction is a commitment to principled action getting us to vision Purpose or mission is a more concrete description of who we are and what we are doing Also known as the mission statement (?) Mission-Slogan-Strategic Objectives: Mission: short description of why we exist (our purpose) -- Why we exist Slogan: public messages to represent organizational mission to public Who we are Strategic Objectives: specific action items (things we do) to accomplish and fulfill our mission. - What we are doing Mission: Benefits of Strong Mission: Guides strategic Planning Clarifies decision making (Should!) establish priorities and work practices Boeing Vision Statement: The Boeing Vision is: People working together as a global enterprise for aerospace leadership. How will we get there? Run healthy core businesses Leverage our strengths into new products and services Open new frontiers In order to realize our vision, we consider where we are today and where we would like to be tomorrow. There are certain business imperatives on which Boeing places a very strong emphasis.

Detailed customer knowledge and focus that understand, anticipate and respond to customer needs. Large-scale systems integration that continually develops and advances technical excellence. A lean enterprise characterized by efficiency, supplier management, short cycle times, high quality and low transaction costs. Aribus Vision Statement: Airbus is a high-performance environment. But performance isnt only about what you achieve: its also about how you achieve it. Thats why we have theAirbusway. A set of guiding principles that underpin a fully integrated company where all people share common values, behaviors and ways of working. All Airbus employees strive to live theAirbusway. But this does not mean that everyone should be exactly the same. Far from it. We encourage individuality. We embrace diversity. We want people to bring their own style and contribute to the richness of our organization. Drawn from more than 80 different nationalities, Airbus employees have drive, dynamism and creativity, plus an ability to transcend geographical and professional boundaries to work together on cuttingedge projects. Airbus is proof that great things happen when individuals from different backgrounds and with different skill sets co-operate to tackle and overcome the most challenging of obstacles. Setting Strategic Objectives: Conceivable We need to perceive that the vision is possible Achievable We need to see how the conceivable vision can be accomplished Measurable We need measurable outcomes to tell if we are getting closer to the vision Significant Controllable We need to know what we do and do not control and know that we control enough to accomplish vision

Challenging Overall vision should push us but we also need to see progress toward end goal Conflict: What is interpersonal Conflict? Conflict occurs when people differ in: Perspective Interests Values Beliefs Conflict is an expected part of life yet effective management of conflict is complex and can involve specialized training and a lot of experience Destructive Conflict What is it? Focused on winning argument Shows lack of respect for others Emphasizes People over Problem Negatively expresses emotion Results: Wastes time Produces poor decisions Feelings of anger, frustration Getting Even Parties not having needs met Decreased self confidence Incomplete tasks Decreased team performance

E.g. anger and raised voices Constructive Conflict: What is it? Emphasizes task completion and problem solving Emphasizes relationships o Keeps people and problems separate Listen first, talk second Set out objectives

 Explore options together Leads to: Win-win solutions Open and honest communication Needs of both parties being met Resolution of conflict Improved team performance E.g. remaining calm in angry conflicts Clich: Two heads are better than one Caveat: True IF they are collaborating not clashing 65% of performance problems result from strained relationships. It doesnt have to be this way! Conflict Grid:

Styles of Conflict: Competing style Concerned only or primarily for ones own needs and is willing to engage others only to the degree they serve self interests Avoiding style

Simply wants to be left alone and is not interested in either their own or others interests Accommodating style Willing to sacrifice ones own interests for the interests of others Collaborating style Has high concern for both ones own interest and the interests of others Compromise style Sees the need to operate as a middle-ground on all levels: a genuine interest in competing and cooperating for both ones own and others interests

Chapter 6 Successful Meetings Preparation and Follow through Agenda: Criteria for meeting or not meeting Preparation Wrap Up Follow-through This meeting was pointless! Rules to decide about meeting or not meeting Do not hold a meeting if. The meeting is for simple information transfer and can be disseminated through written memoranda or other one-way medium The leader/boss is not willing to actually incorporate the feedback participants provide Member absences will undermine the objective of the meeting Do hold a meeting There is a genuine need and benefit for meeting The decision has truly not been made Participant input will actually impact the decision

Preparation 1st rule: What is the purpose of the meeting? Every meeting should produce decision and action plans What is the history of the future? Learning from the pasts experiences, results etc. and figuring out what worked and what didnt in order to move forward with a vision Planning future actions based on past mistakes Figure out where you will be in the future, and action plans to get there (back scheduling) What is armchair testing and under what circumstances do you use it? (look it up) The tendency of wanted everyone to participate in everything Too many people in the room stifles creativity Wrap up Avoid the endless meaning syndrome Solution? o Set a time frame How about adapting? The end of the meeting should lead to people performing their action steps outside the meeting To do this it is necessary to establish who is doing what at the end of the meeting Meeting success is like if we establish plan for the next one (Whats on the next piece?) Follow-through: Recorder needs to quickly summarize meeting in a one page to document the key discussion areas, decisions, and action steps. Make sure assignments are completed by agreed-upon deadlines. Ideally, meeting follow-through should couple seamlessly into the preparation stage for next meeting.

CHAPTER 7 Managing organizational structure:

Managing organizational communication Avon case: A managers Challenge: CEO experiencing failing global sales Problem: Global expansion= too munch autonomy AVONs global organizational hierarchy exploded o 7 levels to 15 levels of managers increased in a decade Solution: Solve the crisis o Restructure Avons organizational hierarchy o Lay off thousands of global managers o Used expert managers to examine functional activities What they found: duplication of marketing efforts in other countries was source of high costs Organizational structure: Organizational Architecture: combination of organizational structure, culture, control system and human resource management that determine the use of organizational resources. Organizational Structure: A formal system of task and job reporting relationships that determines how employees use resources and achieve organizational goals. Organizational Design: the process of using organizational structure and culture to fulfill organizational mission Challenges: Create an architecture that Motivates managers and employees to work hard and develop supportive job practices Coordinate the actions of employees, groups, functions and divisions to ensure overall organization is efficient and effective What is the best organizational design? There is no one best way to design an organization: design reflects each organizations specific situation FOUR factors are important determinants of the type of organizational structure: o The nature of the organizational environment o Type of strategy the organization pursues o Technology the organization uses o Characteristics of the organizations human resources Factors Affecting Organizational Structure:

 Organizational Structure and Environment: Organizational environment= turbulence and change = the factors external to and impacting organizational functioning Political economic Socio-cultural Environmental National/local celebrations Weather Act. Organizational structure: Traditional theory: mostly views org environment as a non-issue because focus was/is placed on internal management of the machine System theory: is especially interested in connection between internal and external processes

 Ex: foot and mouth disease Organizational design must fit org environment. Examples: You must be able to move as quickly as your environment does (be adaptable!) Bureaucracies work well in stable environments: ex food and automobile manufacturing plans where market demands changed slowly over time Matrixes work well in project based organizations: ex consulting or training firms: driven by client demand Networks work well is emergent and grassroots contexts where org mission and function are intentionally responsive to member practices: think local community garden, environmental organization, community food program or digitally-based organization Organizational Structure: Strategy Strategy: the way different units are coordinated in accomplishing organizational mission Centralized strategy: means org decisions are made by a central unit and other units must follow those procedures. This would accompanied by rigid bureaucracy Differentiation strategy: for example, allow units to deviate from central products or process. This would be accompanied by some sort of adaptive structure like a matrix Org structure: technology Technical knowledge, skills and machines that enables org to fulfill its missions: distribution of goods and services Task Variability= the number of new or unexpected problems that a person or function experiences in performing tasks Task Analyzability= the degree to which programmed solutions can be put in place to solve/manage these problems Which industries or sectors tend to run into low versus high variability problems? Organizational structure: human resources: Human resources: the management of work tasks and focus of employees

Think about the difference of a forewomen watching closely over the actions of temporary employees in a factors setting versus a lab technician working largely unsupervised High skill area: decentralized and autonomy from human resource management. Low skill area= centralized and dependent of human resource management Lows skill area: centralized and dependent on human resource management Grouping tasks into jobs: Job design: process by which managers decide how to divide tasks into specific jobs Ex: McDonalds managers and the division of labor, tasks related to chiefs and tasks related to giving food to the customer Job simplification: process of reducing the number of tasks that each worker performs Can reduce efficiency and workers can become demotivated and unhappy= performing at a low level Job enlargement: increasing the number of different tasks in a given job by changing the division of labor Increasing the range of tasks performing by a worker will reduce boredom (at subway they make the food and serve it) Job enrichment: increasing the degree of responsibility a worker has over his or her job Empowering workers to experiment to find new ways to do the job Encouraging workers to develop new skills Allow workers to respond to unexpected situations Allow workers to monitor and measure their own performance Job Characteristics Model: 5 characteristics that determine job motivation: Skill variety Task Task

Five Job characteristics affect an employees motivation because they affect three critical psychological states. If employees feel their work is meaningful they will be more motivated (Hackman and Oldham) Types of organizational structure: Functional Structure: is driven by the principal functions of an organization to complete is mission o Each functional areas includes more specific task department: Human resources includes payroll and benefits Planning includes credit services and marketing Functional areas, business college Public relations *add figure 10.3 for pier 1 imports

Befits of functional structure o Learning and specialization from working closely with people with similar skill sets o Easier and more precise supervision o Easier monitoring and more responsive changes in the environments of those function areas Negatives Less effective as organization expands

Narrow focus on management of departments and less attention on grand mission of organization Divisional structure: Organizes task areas/ units/ departments by specialization, market or geography Creates smaller, more manageable and responsive units that focus on a particular product line, problem, areas and so forth Most managers of large organizations choose a divisional structure to create business units

*insert figure 10.4 product market and geographic structure Product structure: each product line or business is handled by a selfcontained divisions Benefits of Product Structure: Allows functions managers to focus on one product line Division heads/ leads become more expert in their particular industry or market niche Division heads are freed from micro-managing and maintain an organization-wide view o activities and mission

Negatives of Product Structure Creates an additional layer of management and there could be issues of mission associated with the division. Geographic Structure: _______ Structure: in which each region of a country or area of the world is served by a self-contained division Department stores use geographic structure because needs of retail customers differ by region o Global ___________ structure: managers locate different divisions in each of the world regions where the organization operates o Global ___________ structure: each product division, not the country and regional managers, takes responsibility for deciding where to manufacture its products and how to market them in countries worldwide Market Structure: Market Structure: _______ Lets managers be responsive to the needs of their customers (flexibility in decision making and response to customers) Types of Organizational Structure: Matrix Structure functional employees and tasks being organized simultaneously into (a) functional areas, and (b) product (or other) division. Functions: allow them to learn from one another and become more skilled and productive Product teams: members of different functions work together to develop a specific product o Each person reports to two manager: (team members known as two-boss employees) Functional boss: who assigns individuals to a team and evaluates their performance from a functional perspective

Boss of the product team: evaluates performance on the team

Types of organizational structure: Matrix organization function and product team combined Functional employees and tasks being organized simultaneously into functions areas and product (or other) division Functions: allows them to learn from one another and become more skilled and productive Product team: members of different functions work together to develop a specific product

o Each person reports to two managers (team members known as two boss employees) Functional boss: who assigns individual to a team and evaluates their performance from a functional perspective Boss of the product team: evaluates performance on the team

Product team structure: Product team structure: in which employees are permanently assigned to a cross-functional team and report only to the product team manager or to one of his or her direct subordinates

Cross-functional team: ____________________________________________ Organizational Structure: Allocating Authority: Hierarchy of Authority: (_________________) organizations chain of command, specifying the relative authority of each manager ___________: the number of subordinates who report directly to a manager Tallness/flatness of Hierarchy: can be literally counted from topbottom When organization grows its hierarchy of authority lengthens= taller Tall organizational: _________ levels of authority relative to company size Flat organizational:__________levels relative to company size When organizations become taller:_______________________________ Chain of command: Choosing who is on your team Chain of Command at The office

Organizational Structure: Organizational Culture: shared set of beliefs, expectations, values, and norms that influence how members of an organization work together Internalized by employees/members Values identify (explicitly or implicitly) what is / in not good (shared standards that members use to evaluate) Norms prescribe behavior (prescribe shared beliefs, attitudes, and behaviors). Ideally helps company achieve values o Over time members of a company learn from one another how to perceive and interpret various events that happen in the work setting Types of Organizational Structure:

Organizational Culture, Where does it come from? Organizational culture shaped by the interaction of four main factors: The personal and professional characteristics of people within org Organizational ethics Nature of the employment relationship Design of its organizational structure Org Members: companies (intentionally) attract people with certain values and norms. Put them together and there is an additive effect. When organizations members become too similar over time they lose their ability to adapt to changes in the environment Organizational Ethics: the moral values, beliefs, and rules that establish the appropriate way for an organization and its members to deal with each other and with people outside the organization. Ethical values become an important part of an organizations structure Employment relationship and human resource practices impacts org culture (seasonal, temporary, full time. High/low turn-over. Career/job minded. Promotion from within or hiring best in field) Org structure determines who talks to whom org culture. Tall versus short orgs different org cultures

How managers work to influence these four factors determines whether an organizations culture is strong and adaptive or is inert and difficult to change

Organizational culture: Org culture: shared set of beliefs, expectations, values, and norms that influence how members of organization work together Internatlized by employees/j members Values identify (explicitly or implicitly) what is/ in not good (shared standards that members use to evaluate) Norms prescribe behavior (prescribe shared beliefs, attitudes, and behaviors) ideally helps company achieve values o Over time memebers of a company learn from one another how to perceive and interpret various events that happen in the works setting Org culture, where dies it come from? Organizational culture shaped by the interaction of four main factors (norms based on the organization) The personal and professional character Org members: Organizational ethics Employment relationship Org structure Strong/ weak cultures Adaptive cultures are organizational whos employees build momentum to grow and change as needed to achieve goals Basically you stay with the same company because you grow with the company Inert cultures are orgs whos values and norms fail to motivate

Short-term employment according org needs, minimal investment in employees. Performance is not clearly tied to reward -> social/task loafing

Three building blocks of organizational culture on YouTube im too drunk for this Consistency between what you do and what you say Behavior Symbols Systems: the process you put to make a difference Symbols and systems

CHAPTER 8 5 Simple Steps to Build a Winning Corporate Culture: Winning culture v: Defined by simple words (easy to explain and understand) Leaders words are aligned with actions Emphasizes three areas Serving the customer Growing the business Developing employees Losing culture: Confusing and complex Places customer needs behind those of the company Emphasizes personal gain over team achievement Enron: (1985-2001) Based in Huston, Texas Industry- energy, commodities, and services Culture: Maximize share value Aggressive partnership hiding debt Supporting the myth of its own invulnerability Arrogant

5 steps to create/redefine corporate culture: 1. Define 3-4 guiding principles that define who you are as an organization 2. Use the principles to guide every business discussion and decision Words are meaningless unless they spur new behavior Use guiding principles to guide discussion and decisions 3. Build the principles into all your people performance and management systems Make sure that your people and performance management systems measure rewards behaviors consistent with guiding principles 4. Create a 2-3 day leadership development experience that reinforces the behavior and values consistent with the principles, and insist all senior leaders attend. You need to constantly reinforce words with action Create an experience based leadership development program that reinforces the values and behaviors consistent with guiding principles 5. Expect resistance, bust stay the course with passion and patience Expect some cynicism at first CHAPTER 9 The Collaborative Organizations: How to make employee networks really work The Leading Question: How can companies build more collaborative and innovative organizations? Executives should analyze ________________________to discover how high-performing individuals and teams connect Networks should be designed to optimize _______________________________, distance, and technical specialty Network analysis can show where__________________________slows decision making DID WE GO OVER THIS POWERPOINT??

CHAPTER 10 Risk and Crisis Communication

Environmental hazards/risks we face: Snow Ice Water quality Food diseases Chemicals in the food GMOs Storm water Risk and Perceived Risk: Storm-water's damage to Puget Sound huge, report says2 Every year, Puget Sound suffers an oil spill equal to more than half an Exxon Valdez. It just happens drop by drop. By Warren Cornwall Seattle Times environment reporter Every year, Puget Sound suffers an oil spill equal to more than half an Exxon Valdez. It just happens drop by drop. Storm-water from roads, parking lots and elsewhere carries between 6.3 million and 8 million gallons of petroleum into the Sound every year, according to a report issued Friday by the state Department of Ecology. The 1989 Valdez accident in Alaska dumped 11 million gallons. And the flow into Puget Sound dwarfs the amount of oil that comes from accidental spills, which add up to 270,000 to 340,000 gallons each year. The findings of the new report underscore a long-standing problem of stormwater pollution as a push to clean up Puget Sound gets under way. It also shows the difficulty of corralling contamination that comes from the region's pavement and storm drains, instead of pipes from a handful of factories. There is a different between hazard and our assessment of hazard The Hazard-Outrage Model: Risk Case= Hazard + outrage Hazard: The actual event future, Future, eminent or already occurred

Low to catastrophic Outrage: Emotions and behaviors of audience Perceptions of hazard Range from apathy to rage Risk / advocacy Communication: Audience is uninterested/ inattentive Challenging, advocacy communications because there is a problem but no one is paying attention Must assess what audience already cares about and use this to persuade toward outcome Ex: pre-storm warnings such as Hurricane Katrina High risk low outrage not showing up to class on Fridays Stake holder Relations: Audience is Attentive and Engaged Easiest communication situation Must remain as transparent and honest as possible Collaborative / consensus building Group interaction and management Ex: Water resource management, natural resource planning processes Outrage management: Audience is very engaged and often negatively and likely at you! Most challenging communication context NO trust of you or your motives but believe their situation is dire Listen and perhaps apologize if that enables more realistic perception Ex: Small oil spill coinciding with Exxon Valdex Crisis communication (high hazard/ high concern) Audience very Engaged and attentive Reaction to actual event Outrage Anger; Outrage = Concern Communicator needs to listen to concerns and show empathy AND demonstrate leadership in managing incident and moving forward o Ex: any natural disaster, airline crash, act of terrorism, financial meltdown Risk Communication:

Risk communication is Spin Brainwashing A genuine effort to enable lay people to make informing decision about something Risk & Perceptions: If risk communication is intended to inform, we need to understand what people already know and think so that information is offered in frames corresponding with preexisting perceptions Perception of Radon: Step 1: Rank order the following risks in terms of deaths per year. Drowning Drunk Driving Home Fire Falling in Home Radon Radon Drunk driving Falls in home Drowning Home fire If risk is _________, information is a tool. Reasons we estimate incorrectly: ANCHORING BIAS: An anchor is information about related risks. Direct estimates were influenced by the anchor given. Subjects told that 50,000 people die from auto accidents produced estimates two to five times higher than those produced by subjects told that 1000 die from electrocution. People seem impacted by how questions are asked and the information surrounding a question. COMPRESSION: a tendency toward the mean with estimates of a number of risk occurrence. (overestimating unlikely risks and underestimating likely risks)

Subjects estimates showed less dispersion than actual risks. However, the anchoring bias suggests that this pattern might have changed with different procedures, which would make the compression of estimates the more fundamental result. AVAILABILIBTIY: Some risks are simply more cognitively available for us because they are more commonly discussed in public (e.g., media). More available risks consistently received higher estimates than less available ones (e.g., nuclear power and floods compared to nanotechnology and dengue fever). MISCALIBRATION OF CONFIDENCE: People tend to be highly confident in their ability to estimate risk occurrence. People tend to chose correctly only 75% of the time but are 90% confident of having done so. This result is a special case of a general tendency to be inadequately sensitive to the extent of ones knowledge. Information = tool; impacted by mental experiential Issues Mental Models: assessing Risk Perceptions Risk Perceptions and Communications: A mental models approach present[s] people with information they need in a form that fits their __________ ways of thinking (Morgan, et al. p. 2050) How Mental Models Work: People process new information within the context of their existing beliefs. If they know nothing about a topic, then a new message will be incomprehensible. If they have erroneous beliefs, then they may misconstrue the message (Morgan, et al.) communicators need to know the nature and extent of a recipients knowledge and beliefs if they are to design messages that will not be dismissed, misinterpreted, or allowed to coexist with misconceptions Morgan, et al.). Steps in a perception driven, risk communication campaign: 1. Create expert model (what is scientifically known?) 2. Open-ended assessment of perceptions 3. Structured protocols/questionnaires to narrow and validate findings

4. Develop communications to provide relevant information given prior perceptions 5. Iterative testing of successive versions of those communications FIVE steps in Risk communication: 1. Create Expert model:

2. Open-ended elicitation of people's beliefs about a hazard, allowing expression of both accurate and inaccurate concepts. Two questions: what is important? How does each thing work? 3. Structured questionnaires designed to validate and test the prevalence of these beliefs. E.g., one respondent believed that cancer was caused by extraterrestrial beings? You would want to test to see how common this belief is. o Radon and house condemnation 4. Development of communications based on what people need to know to make informed decisions and assessment of their current beliefs.

5. Iterative testing of successive versions of those communications using open-ended, closed form, and problem-solving instruments, administered before, during, and alter the receipt of messages. Look at Radon Example in Reading Crisis Communication Crisis Communication: Managing corporate reputation What is crisis? From an organizational standpoint, a crisis is any incident threatening an organizations reputation or procedures of operation. An organizational problem exposed to public attention. Types of Crises: Victim crises: minimal crisis responsibility Natural disasters: acts of nature such as tornadoes or earthquakes Rumors: false and damaging information being circulated about you organization Workplace violence: attack by former or current employee on current employees on-site Product tampering/malevolence: external agent causes damage to the organization i. Tylenol ii. Replacing sand with jello pudding and tying to sue them Accident crisis: low crisis responsibility Challenges: stakeholder claim that the organization is operating in an inappropriate manner Technical error accidents: equipment or technology failure that causes an industrial accident Technical error product harm: equipment or technology failure that cause a product to be defective or potentially harmful Preventable crises: strong crisis responsibility Human-error accidents: industrial accident caused by human error Human-error product harm: product is defective or potentially harmful because of human error Organizational misdeed: management actions that put stake holders at risk and or violate the law

Stages of Crisis: Stage 1: Pre-crisis planning Crisis Planning involves Environmental scanning, a group watching for all types of possible threats from the natural, economic, product, social and political context. Crisis prevention is about planning and organizational preparedness (preparedness is your capacity to successfully deal with complex and changing situations). Issues audit (assessment of org vulnerability) Issues prioritization Creating a Communications plan Names & Info for crisis team and key personnel Determinations of levels and types of crises and plans to respond Knowing and practicing growth of crisis from initial response to EOC and JIC Designated situation rooms On-call staff Standardized forms and messaging Dark sites Units needed to manage Training Training Training Stage 2: Crisis Management Crisis Management Managing initial to ongoing response Surprise (cameras on scene before leaders know about situation Perceived loss of control, internally (public scrutiny) Anxiety, externally Assessing a Crisis Has someone verified that a crisis actually exists? Is it contained geographically or will it impact things regionally, nationally or internationally? What are the legal and other implications? What is the nature of the crisis: natural disaster, human error, product tampering. What resources are needed and from whom are they coming? Crisis Communication Response: 1. Be quick and try to have initial response within the first hour.

2. Use a third party to speak for youbut only AFTER a high-ranking organizational leader has publicly responded and formally introduced this Public Information Officer. 3. Be accurate by carefully checking all facts 4. Be consistent by keeping spokespeople informed of crisis events and key message points. 5. Make public safety the number one priority. 6. Use all of the available communication channels including the Internet, Intranet, and mass notification systems. 7. Provide some expression of concern/symmoathy for victims. 8. Centralize information 9. Remember to include employees in the initial response. 10. Be ready to provide stress and trauma counseling to victims of the crisis and their families, including employees. Tips for Handling Media Personnel:

Repairing Reputation: Deny Strategies: 1. Attack the accuser: 2. Denial:

3. Scapegoat: Diminish Strategies: 1. Excuse: a. Provocation: b. Defeasibility: c. Accidental: d. Good intentions: e. Justification: Rebuild Strategies: 1. Compensation 2. Apology: Reinforcing Strategies: Bolstering: Ingratiation: CHAPTER 12 Student advocacy and sweatshop labor Background: Russell Athletic: major supplier of clothing and sportswear to college campuses In November 2009, Honduran workers union concluded an agreement with Russell Athletic o Agreement: workers back to work, recognized the union and agreed to collective bargaining, compensation for last wages, to allow access for union to Russell apparel plants in Honduras Outsourcing has positives and negatives Outsourcing to developing countries is an important business strategies of large U.S. corporations Positives: creates new jobs

Negatives: some companies violate workers rights sweatshop environments o Recent companies under criticism: Sweatshops: Sweatshop: Workplace with low wages under harsh working conditions. EX: (long hours, unhealthy conditions, oppressive environment) Two views: acceptance if laborers freely contract to work in these conditions and that the conditions are illegitimate or immoral Sweatshops are: _______________, unethical, and patently unfair to workers U.S. General Accounting Office: Environments where federal laws Different organizations have Different definitions for sweatshops Brief History of sweatshops 1880-1920: garment and cigar manufacturing Also see in laundry work, green grocers, and recently day laborers (those who landscape suburban lawns Now: clothing industry: easy to separate higher and lower skilled jobs o Clothing companies will contract out sewing and finishing work o Make fashion oriented clothing: flexible, change quickly, and done in small batches. From the beginning sweatshops: rely on immigrant labor :

mainlywomen o New York City, Seattle, and London and Paris: sweatshops localized in districts and employed mainly immigrants o Developing countries clothing sweatshops: _________________________ Child labor, forced unpaid overtime, and widespread violations of freedom of association (right to unionize) History of sweatshops:

Cause of Sweatshops in developing nations: Cost cutting by contractors who compete against themselves Sweatshop visibility: public exposure by reformers in England and the U.S. 1889-1890: an investigation by the House of Lords Select Committee on Sweating System 1884: U.S.: public investigations came as a result of efforts to curb tobacco homework= outlawing of production of cigars in living quarters in NY state In US: fire in 1911 destroying Triangle Shirtwaist Company 500 workers in poor conditions 146 workers died Triangle fire made public aware of horrible conditions Sweatshops gradually declined after after (1938 Fair Labor Standards Act: imposed minimum wage and required overtime pay) 1960s sweatshops reappeared in large numbers= growing labor force of immigrants 1980s sweatshops = business as usual 1990s =atrocious conditions 1994: U.S. Department of Labor: 93 % health safety violations, 68% did not pay appropriate overtime wages, 51 % paid less than minimum wage in California Sweatshop Dilemma: Unions: object to sweatshops= concerned about welfare and protect own members jobs Moral and economic perspectives: Morally: exploit and endanger workers Economic: developing countries might not be able to compete o Only alternative to subsistence farming, casual labor, prostitution, and unemployment NGOs anti sweatshop involvement: Ngos: suggest voluntary standards for countries to commit International Labour Office has Tripartite Declaration of Principles Concerning Multinational Enterprise and Social Policy: guidelines for employment, training, working conditions, and industrial relations

1948, General Assembly of United Nations: adopted Universal Declaration of Human Rights: recognized all humans have inherent dignity and specific rights Russel athletic: Russell Athletic Nov. 2009: tipping point for struggle between student antisweatshop movement and corporate worker United Students Against Sweatshops (USAS) against Russell Athletic (RA) RA agreed to rehire o 1,200 workers in Honduras Russel Corporations: Founded by Benjamin Russell in 1902 Marketed under many brands: Largest private employer in honduras Owns all 8 factories in Honduras rather o than subcontract out 2009 Scandal: fired 145 workers in 2007 for supporting a union Ignited antisweatshop campaign against company Forced to reverse decision Still violated workers rights in 2008 o Harassed union activists o Made threats to close the jerzees de Honduras factors o Closed factory on jan 30 2009 NGOs anti-sweatshop pressure: Worker Rights Consortium (WRC) investigation of Russell activity released 36 page report on Nov 7, 2008 Union Vice President: Norma Mejia: personally received death threats WRC issues new reports through 2009 with recommendations to resolve conflict WRC= independent labor rights monitoring organization In-depth investigations, public reports, aids workers at factories to end labor abuses Supported by 175 college and university affiliates: focused on labor practices of factories that make apparel

WRC: Russells decision to close the plant= serious challenge yet faced to the enforcement of university codes of conduct If plant remained closed: o Deprive workers of livelihood o Send message to workers in Honduras (No point in standing up for rights) WRC investigation= spurred nationwide student campaign led by USAS USAS persuaded 96 colleges to sever ties with Russell Athletics USAS: grassroots organization run by students Tackled Russell scandal: tactical actions : picketing at NBA finals to protest leagues licensing agreement with Russell o Fliers inside sport authority o Sending twitter messages to Dicks Sporting Goods customers USAS reached Congress to gain more support Fair Labor Association (FLA) issued a statement June 25, 2009: putting Russell Athletic on probation for not fitting standards FLA policy making body is comprised on 3 constituent groups: o Companies, colleges, and civil society organizations Victory for USAS and WRC: Nov. 2009: two years after USAS campaigning with apparel workersHonduran workers union concluded an agreement with Russell Unprecedented victory for labor rights First time that a factory was shut down to eliminate union was later reopened because of a worker-activist campaign Breakthrough: right to organize Do you think sweatshops can be completely eliminated throughout the world in the near future?

Coca-Cola in India Brief Integrative Case 2.1 Indias Changing Marketplace Soft Drink Industry in India

Total investment by Coke & Pepsi in India: $2,000,000,000 Direct employment by soft-drink industry: ___________ people Indirect employment (supplies, shipping, etc.): ___________ people The Charges Against Coke 2002 Villagers in Kerala allege: ____________ levels had sunk That drinking water was ____________ by the Coke bottling plant Health Minister of Kerala bans sale of all Coca-Cola and PepsiCo products, claiming the products contained unsafe levels of pesticide The Charges Against Coke Sunita Narin (director of Center of Science and Environment): Its wonderful. Pepsi and Coke are doing our work for us. Now the whole nation knows that there is a pesticide problem. Atul Singh (CEO, Coca-Cola India): If pesticides are in the groundwater, why isnt anyone else being tested? We are continuously being challenged because of who we are. Indias Response to the Allegations Indias Response to the Allegations Cokes Path Forward (in India) Coke partners with local and international partners to address water ______________ Central Ground Water Authority State Ground Water Boards Schools and Colleges NGOs Cokes Path Forward (in India) Coca-Cola embarks on a campaign to address micro-nutrient malnutrition, or ________ ________ In India, Coke introduces Vitingo, an orange-flavored beverage fortified with ______-_________ Cokes Path Forward (Globally) Emphasis on water conservation Lessons Learned

Coca-Cola did not: __________ local government reactions to test results __________ quickly enough to customer anxiety __________ how fast news travels in modern India Coca-Cola did: Form committees in India and the US to address the problem Commission its own lab tests Respond in detail (eventually) UN Global Water Challenge Cokes experience in Kerala as a snap-shot of a global problem