CHAPTER SUMMARY – CHAPTER 16
What Is Motivation?
 Define motivation.
 Explain the energy, direction, and
persistence aspects of motivation.
Motivation is the process by which a
person’s efforts are energized, directed, and
sustained towards attaining a goal. The energy
element is a measure of intensity or drive. The
effort needs to be channeled in a direction that
benefits the organization. Finally, motivation
includes a persistence dimension in that
employees need to persist in putting forth effort to
achieve goals.
Early Theories of Motivation
 Describe Maslow’s hierarchy of needs and
how it can be used to motivate.
 Discuss how Theory X and Theory Y
managers approach motivation.
 Describe Herzberg’s motivation-hygiene
theory.
 Explain Herzberg’s views of satisfaction
and dissatisfaction.
Maslow’s hierarchy of needs proposes that
there are five need levels (physiological, safety,
social, esteem, and self-actualization) arranged in
a hierarchy. Once a need level has been generally
satisfied, it no longer serves to motivate behavior.
(See Exhibit 16-1.)
According to McGregor, a Theory X
manager assumes that people don’t like to work
and must be threatened, forced, and directed to
work. A Theory Y manager assumes that people
like to work and exercise self-direction.
Herzberg’s motivation-hygiene (two-
factor) theory proposes that the hygiene factors
(those associated with job context) keep people
from being dissatisfied, but don’t motivate. The
motivators (those job factors associated with job
content) are the ones that motivate employees.
(See Exhibit 16-2.)
Herzberg viewed satisfaction and
dissatisfaction as two separate concepts. (See
Exhibit 16-3.) Those factors that led to job
satisfaction and job dissatisfaction were separate
and distinct.
Contemporary Theories of Motivation
 Describe the three needs McClelland
proposed as being present in work settings.
 Explain how goal-setting and
reinforcement theories explain employee
motivation.
 Describe the job characteristics model as a
way to design motivating jobs.
 Discuss the motivation implications of
equity theory.
 Contrast distributive justice and
procedural justice.
 Explain the three key linkages in
expectancy theory and their role in
motivation.
McClelland’s three needs were the need
for achievement (the drive to excel, achieve, and
succeed), the need for affiliation (the desire for
friendly and close interpersonal relationships),
and the need for power (the need to make others
behave in a way they would not have behaved
otherwise).
Intention to work towards a goal is a major
source of job motivation. Goal-setting theory says
that specific goals increase performance and that
difficult goals, when accepted, result in higher
performance than do easy goals. (See Exhibit 16-
5.) Reinforcement theory says that behavior is a
function of its consequences. Behavior that is
reinforced is likely to be repeated.
The Job Characteristics Model (JCM)
describes jobs in terms of five core job
dimensions: skill variety, task identity, task
significance, autonomy, and feedback. When
these dimensions are designed into a job, positive
personal and work outcomes will result. (See
Exhibits 16-6 and 16-7.)
Equity theory proposes that employees
compare their outcomes/inputs ratio to others to
see if there is equity. (See Exhibit 16-8.) If they
perceive that inequity exists, they will do
something about it. In addition, employee
motivation is influenced significantly by relative
rewards and absolute rewards.
Distributive justice is the perceived
fairness of the amount and allocation of rewards
among individuals. Procedural justice is the
perceived fairness of the process used to
determine the distribution of rewards.
Expectancy theory proposes that
individual effort leads to individual performance
which leads to organizational rewards which
influence individual goals. (See Exhibit 16-9.)
The theory proposes that an individual tends to act
in a certain way based on the expectation that the
act will be followed by a given outcome and on
the attractiveness of that outcome. The three key
linkages are effort-performance (expectancy or
the probability that a given amount of effort will
lead to a certain level of performance);
performance-reward (instrumentality or the
degree to which the individual believes
performing at that level is instrumental in
attaining the desired outcome); and reward-goal
(valence or attractiveness of the reward or how
important that reward is to the person).
Current Issues in Motivation
 Describe the cross-cultural challenges of
motivation.
 Discuss the challenges managers face in
motivating unique groups of workers.
 Describe open-book management,
employee recognition, pay-for-
performance, and stock option programs.
The cross-cultural challenges of
motivation have to do with whether the
motivation theories are appropriate for that
culture.
Who Are Leaders and What Is Leadership?
 Define leaders and leadership.
 Explain why managers should be leaders.
A leader is someone who can influence
others and who has managerial authority.
Leadership is what leaders do – that is, the
process of influencing a group to achieve goals.
Ideally all managers should be leaders
because leading is one of the four management
functions.
Early Leadership Theories
 Discuss what research has shown about
leadership traits.
 Contrast the findings of the four
behavioral leadership theories.
 Explain the dual nature of a leader’s
behavior.
Trait theories of leadership looked for
characteristics (traits) that could be used to
differentiate leaders from non-leaders. It proved
impossible to identify one set of traits that would
always do this. However, there are seven traits
associated with leadership (the process) including
drive, the desire to lead, honesty and integrity,
self-confidence, intelligence, job-relevant
knowledge, and extraversion. (See Exhibit 17-1.)
The University of Iowa studies identified
three leadership styles: autocratic, democratic, and
Employees differ in their motivational
requirements. Managers must deal with groups
such as: a diverse workforce (the key is
flexibility); professionals (the key is offering
challenges and support); contingent workers (the
key is opportunities for full-time work or
education/training); and low-skilled, minimum
wage workers (the key is using employee
recognition programs).
Open-book management is sharing
financial information (opening up “the books”) so
employees can see how their work affects the
financials. Employee recognition programs are
motivational programs consisting of personal
attention and expressing appreciation for a job
well done. Pay-for-performance programs are
variable compensation plans that pay employees
on the basis of some performance measure. Stock
options are financial instruments that give
employees the right to purchase shares of stock at
a set price.
CHAPTER SUMMARY – CHAPTER 17
laissez-faire. The Ohio State studies identified two
leadership behaviors: consideration and initiating
structure. The University of Michigan studies also
identified two leadership behaviors: employee-
oriented and production-oriented. The Managerial
Grid assessed leaders on their concern for people
and their concern for production. (See Exhibits
17-2 and 17-3.)
As these behavioral studies showed, a
leader’s behavior encompasses two dimensions:
people and tasks.
Contingency Theories of Leadership
 Explain how Fiedler’s model of leadership
is a contingency model.
 Contrast situational leadership theory and
the leader participation model.
 Discuss how path-goal theory explains
leadership.
Fiedler’s contingency model of leadership
proposed that effective group performance
depended on properly matching the leader’s style
of interacting with his or her followers
(relationship oriented or task oriented) and the
degree to which the situation allowed the leader to
control and influence (leader-member relations,
task structure, and position power). (See Exhibit
17-4.) Fiedler believed, however, that a leader’s
style was fixed.
 Situational leadership theory is a
contingency theory that focuses on followers’
readiness. Successful leadership is achieved by
selecting the right leadership style which is
contingent on the followers’ readiness level. (See
Exhibit 17-5.) The leader participation model
related leadership behavior and participation to
decision making. It uses a decision-tree approach
to determine the best style of leadership. (See
Exhibits 17-6 and 17-7.)
Path-goal theory states that it’s the
leader’s job to assist his or her followers in
attaining their goals and to provide the direction
or support needed to ensure that their goals are
compatible with the overall group’s goals. To do
this, leaders choose from four leadership
behaviors: directive, supportive, participative, and
achievement oriented. (See Exhibit 17-8.)
Contemporary Views of Leadership
 Differentiate between transactional and
transformational leaders.
 Describe charismatic and visionary
leadership.
 Discuss what team leadership involves.
Transactional leadership describes how
leaders lead primarily by using social exchanges
(or transactions). Transformational leadership
describes how leaders stimulate and inspire
(transform) followers to achieve extraordinary
outcomes.
Charismatic leadership is a leader whose
enthusiastic, self confident personality and actions
What Is Control and Why Is It Important?
 Define control.
 Contrast the three approaches to designing
control systems.
 Discuss the reasons why control is
important.
 Explain the planning-controlling link.
Controlling is the process of monitoring,
comparing, and correcting work performance.
The market control approach emphasizes
the use of external market mechanisms to
establish the control standards. The bureaucratic
control approach emphasizes organizational
authority and relies on administrative rules,
regulations, procedures, and policies. The clan
control approach uses shared values, norms,
traditions, rituals, beliefs, and other aspects of the
organization’s culture (the clan) to control
employee behavior. (See Exhibit 18-1.)
(charisma) influence people to behave in certain
ways. Visionary leadership is the ability to create
and articulate a realistic, credible, and attractive
vision of the future that improves upon the present
situation.
Team leadership is leading teams. There
are four specific team leadership roles: coach,
liaison with external constituencies,
troubleshooter, and conflict manager. (See Exhibit
17-9.)
Leadership Issues in the Twenty-First Century
 Tell the five sources of a leader’s power.
 Discuss the issues today’s leaders face.
 Explain why leadership is sometimes
irrelevant.
The five sources of a leader’s power are
legitimate (power because of position of
authority), coercive (power to punish or control),
reward (power to give positive benefits or
rewards), expert (power based on expertise,
special skills, or knowledge), and referent (power
from desirable resources or personal traits).
The main issues that leaders face today are
developing trust (see Exhibit 17-10), providing
ethical leadership, empowering employees, cross-
cultural leadership challenges (see Exhibit 17-11),
gender differences in leadership (see Exhibit 17-
12), and the demise of the “celebrity” leader.
Leadership is sometimes irrelevant
because certain individual, job, or organizational
variables can act as substitutes for leadership.
CHAPTER SUMMARY – CHAPTER 18
Control is important for three reasons. It’s
how managers know whether goals and plans are
on target. It’s also beneficial for empowering
employees. And it’s used to protect the
organization and its assets.
Planning and controlling are linked
because through controlling, managers are able to
determine whether the goals and plans established
in the planning phase are actually being
accomplished. (See Exhibit 18-2.)
The Control Process
 Describe the three steps in the control
process.
 Explain why what is measured is more
critical than how it’s measured.
 Explain the three courses of action
managers can take in controlling.
The three steps in the control process are
measuring actual performance, comparing actual
performance to standards, and taking any
necessary managerial action. (See Exhibits 18-3
and 18-7.)
“What” is measured is more critical than
“how” it’s measured since selecting the wrong
criteria to measure can create serious problems.
Also, people in the organization will attempt to
excel at what is being measured. (See Exhibit 18-
4.)
The three possible courses of action
include doing nothing, correcting actual
performance (immediate corrective action or basic
corrective action), or revising the standard.
Controlling for Organizational Performance
 Define organizational performance.
 Describe the most frequently used
measures of organizational performance.
Organizational performance is the
accumulated end results of all the organization’s
work activities.
The most frequently used measures of
organizational performance include organizational
productivity (overall output of goods or services
produced divided by the inputs needed to generate
that output), organizational effectiveness (how
appropriate organizational goals are and how well
the organization is achieving those goals), and
industry rankings (see Exhibit 18-8), which are
comparisons of companies within industries on
various measures.
Tools for Controlling Organizational
Performance
 Contrast feedforward, concurrent, and
feedback controls.
 Explain the types of financial and
information controls managers can use.
 Describe how balanced scorecards and
benchmarking are used in controlling.
Feedforward controls are controls that
prevent anticipated problems since they’re used
before the actual work activity. Concurrent
controls are controls that are used while a work
activity is in progress. Feedback controls are
controls that are used after the actual work
activity has been completed. (See Exhibit 18-9.)
Managers can use the traditional financial
controls including budgets and ratio analysis. (See
Exhibit 18-10.) They could also use other
financial controls such as economic value added
and market value added. Information controls that
managers could use include a management
information system and data and information
security.
A balanced scorecard is a performance
measurement tool that looks at four areas that
contribute to a company’s performance –
financial, customers, internal processes, and
people/innovation/growth assets. Benchmarking –
the search for best practices – can be a useful
control tool for identifying specific performance
gaps and potential areas of improvement.
Contemporary Issues in Control
 Describe how managers may have to
adjust controls for cross-cultural
differences.
 Discuss the types of workplace concerns
managers face and how they can address
those concerns.
 Explain why control is important to
customer interactions.
 Explain what corporate governance is and
how it’s changing.
Because of differences in culture and the
challenges associated with long-distance
managing, managers may use more formal
techniques and rely more on information
technology. Another challenge is comparability of
data.
Three main workplace concerns face
managers: workplace privacy, employee theft, and
workplace violence. Managers need to monitor
workplaces because of potential lost work
productivity, to reduce the potential risk of being
sued for creating a hostile work environment, and
to ensure that company secrets aren’t being
leaked. Employee theft and workplace violence
can be deterred or reduced by approaching it from
the perspective of feedforward, concurrent, and
feedback controls. (See Exhibits 18-13 and 18-
15.)
Control is important for customer
interactions because organizations want to create
long-term and mutually beneficial relationships
with their customers.
Corporate governance is the system used
to govern a corporation so that the interests of
corporate owners are protected. Two areas of
corporate governance reform involve the role of
the board of directors and the organization’s
financial reporting. (See Exhibits 18-17 and 18-
18.)
CHAPTER SUMMARY – CHAPTER 15
Understanding Groups
 Define the different types of groups.
 Describe the five stages of group
development.
Formal groups are work groups defined by
the organization’s structure that have designated
work assignments and specific tasks. (See Exhibit
15-1 for a list of formal groups.) Informal groups
are social in nature.
The five stages of group development (see
Exhibit 15-2) are as follows: forming (joining the
group and defining the group’s purpose, structure,
and leadership), storming (intragroup conflict),
norming (close relationships develop and the
group becomes cohesive), performing (performing
the task at hand), and adjourning (group prepares
to disband).
Explaining Work Group Behavior
 Explain the major components that
determine group performance and
satisfaction.
 Discuss how roles, norms, conformity,
status systems, group size, and group
cohesiveness influence group behavior.
 Explain how group norms can both help
and hurt an organization.
 Define groupthink and social loafing.
 Describe the relationships between group
cohesiveness and productivity.
 Discuss how conflict management
influences group behavior.
 Tell the advantages and disadvantages of
group decision making.
The major components that determine
group performance and satisfaction (see Exhibit
15-3) are: the external conditions imposed on the
group, group member resources, group structure,
group processes, and group tasks.
People play different roles in groups.
These roles tend to either be task-oriented or
member-oriented. Norms are standards or
expectations that are accepted and shared by
group members and dictate factors such as work
output levels, absenteeism, promptness, and
amount of socializing on the job. Conformity is
the pressure felt by members to behave according
to the group. A group’s status system has to do
with its grading, position, or ranking of certain
people or positions within the group. Smaller
groups are faster at completing tasks, but larger
groups get better results. Group cohesiveness
refers to the degree to which members are
attracted to a group and share the group’s goals.
Norms can help an organization because
they can influence work expectations. However,
that’s also the reason that norms can hurt an
organization.
Groupthink is when a group exerts
extensive pressure on individuals to align their
opinions to conform to others’ opinions. Social
loafing is the tendency for an individual to expend
less effort (loaf) when working in a group.
When a highly cohesive group’s goals are
aligned with organizational goals, it will
experience a strong increase in productivity.
However, if the group is not cohesive, it will
experience only a moderate increase in
productivity. If a highly cohesive group’s goals
are not aligned with organizational goals, there’s a
decrease in productivity. (See Exhibit 15-5.)
Conflict is any perceived incompatible
differences. Conflict and how it’s managed can
influence group behavior. Relationship conflicts
almost always are dysfunctional. Low levels of
process conflict and low-to-moderate levels of
task conflict can be functional. (See Exhibit 15-8.)
When making decisions, groups tend to be
more accurate and creative and have a higher
degree of acceptance of the decision. However,
groups are not as fast or efficient as individuals
when making decisions. (See Exhibit 15-6.)
Creating Effective Teams
 Compare groups and teams.
 Explain why teams have become so
popular in organizations.
 Describe the four most common types of
teams.
 List the characteristics of effective teams.
Work teams are different from work
groups. (See Exhibit 15-10.) Work groups interact
primarily to share information and to make
decisions that help each group member
individually do his or her job more efficiently and
effectively. Work teams work intensely on a
specific, common goal using their positive
synergy, individual and mutual accountability,
and complementary skills.
Teams have become popular because
teams typically outperform individuals when the
tasks being done require multiple skills, judgment,
and experience.
The four most common types of teams are
problem-solving teams, self-managed teams,
cross-functional teams, and virtual teams.
 Effective teams have the following
characteristics: clear goals, relevant skills, mutual
trust, unified commitment, good communication,
negotiating skills, appropriate leadership, internal
support, and external support. (See Exhibit 15-
11.)
Current Challenges in Managing Teams
 Discuss the challenges of managing global
teams.
 Explain the role of informal (social)
networks in managing teams.
Why Look at Individual Behavior?
 Explain why the concept of an
organization an iceberg is important to
understanding organizational behavior.
 Describe the focus and goals of
organizational behavior.
 Define the six important employee
behaviors that managers want to explain,
predict, and influence.
The idea of an iceberg reflects the fact that
there are hidden aspects that affect how
employees behave at work. (See Exhibit 14-1.)
Organizational behavior focuses on two
areas: individual behavior and group behavior.
The goals of OB are to explain, predict, and
influence employee behavior.
The six employee behaviors include:
employee productivity – a performance measure
of both efficiency and effectiveness; absenteeism
– the failure to report to work; turnover –
voluntary and involuntary permanent withdrawal
from an organization; organizational citizenship
behavior – discretionary behavior that’s not part
of an employee’s formal job requirements; job
satisfaction – an individual’s attitude towards his
or her job; and workplace misbehavior – any
intentional employee behavior that has negative
consequences for the organization or individuals
in the organization.
Attitudes
 Describe the three components of an
attitude.
 Discuss the three job-related attitudes.
 Describe the impact job satisfaction has on
employee behavior.
 Explain how individuals reconcile
inconsistencies between attitudes and
behavior.
Global teams face challenges from: group
member resources, group structure (conformity,
status, social loafing, and cohesiveness), group
processes, and the manager’s role. (See Exhibit
15-12.)
Social networks describe the patterns of
informal connections among individuals within
teams. These informal social relationships can
hinder or help the team’s effectiveness.
CHAPTER SUMMARY – CHAPTER 14
Attitudes are evaluative statements
concerning people, objects, or events. The three
components of an attitude include the cognitive
(beliefs, opinions, knowledge or information), the
affective (the emotional or feeling part), and the
behavioral (an intention to behave in a certain
way).
Job satisfaction is an important attitude
that can affect productivity (correlation is fairly
strong); absenteeism (satisfied employees
typically have lower levels); turnover (satisfied
have lower levels); customer satisfaction (satisfied
employees increase customer satisfaction and
loyalty); and workplace misbehavior (dissatisfied
employee will respond somehow).
Individuals reconcile inconsistencies
between attitudes and behaviors aligning their
attitudes and behaviors so they appear rational and
consistent or when there is an inconsistency by
taking steps to make it consistent.
Personality
 Contrast the MBTI and the big-five model
of personality.
 Describe the five personality traits that
have proved to be the most powerful in
explaining individual behavior in
organizations.
 Explain how emotions and emotional
intelligence impact behavior.
The MBTI is a popular approach to
classifying personality traits. It looks at social
interaction (extrovert or introvert), preference for
gathering data (sensing or intuitive), preference
for decision making (feeling or thinking), and
style of making decisions (perceptive or
judgmental). The Big Five model looks are five
basic personality dimensions (extraversion,
agreeableness, conscientiousness, emotional
stability, and openness to experience) that
underlie all others and encompass most of the
signification variation in human personality.
The five personality traits that have proved
to be the most powerful in explaining individual
behavior in organizations include locus of control,
Machiavellianism, self-esteem, self-monitoring,
and risk-taking.
Emotions and emotional intelligence
impact behavior because emotions, especially
how we respond emotionally and how we deal
with our emotions, can be functions of our
personality.
Perception
 Explain how an understanding of
perception can help managers.
 Describe the key elements of attribution
theory.
 Discuss how the fundamental attribution
error and self-serving bias can distort
attributions.
 Name three shortcuts used in judging
others.
Perception is a process by which
individuals give meaning to their environment and
managers need to understand how perception
explains, predicts, and influences behavior.
The key elements of attribution theory (see
Exhibit 14-6) are observation of behavior,
interpretation of behavior (distinctiveness,
consensus, consistency), and attribution of cause
(external or internal).
The fundamental attribution error is the
tendency to underestimate the influence of
external factors and overestimate the influence of
internal or personal factors. Self-serving bias
describes how individuals attribute their own
successes to internal factors while putting the
blame for personal failure on external factors.
Three shortcuts used in judging others
include assumed similarity (“like me” effect),
Defining Organizational Structure
 Discuss the traditional and contemporary
views of work specialization, chain of
command, and span of control.
 Describe each of the five forms of
departmentalization.
 Explain cross-functional teams.
 Differentiate authority, responsibility, and
unity of command.
 Tell what factors influence the amount of
centralization and decentralization.
stereotyping (judging someone on the basis of a
group to which he or she belongs), and halo effect
(letting a single characteristic form our general
impression).
Learning
 Explain how operant conditioning helps
managers understand, predict, and
influence behavior.
 Describe the implications of social
learning theory for managing people at
work.
 Discuss how managers can shape
behavior.
Operant conditioning says that behavior is
a function of its consequences and it helps
managers understand, predict, and influence
behavior.
Social learning theory says that people
learn through observation and direct experience.
Managers can shape behavior by using
positive reinforcement (administering something
positive to get desired behavior), negative
reinforcement (withdrawing something unpleasant
to get desired behavior), punishment (penalizing
undesirable behavior to eliminate it), and
extinction (ignoring behavior to eliminate it).
Contemporary OB Issues
 Describe the challenges managers face in
managing Gen Y workers.
 Explain what managers can do to deal with
workplace misbehavior.
Managing Gen Y workers presents some
unique challenges especially when it comes to
appearance, technology, and management style.
(See Exhibit 14-7.)
To manage workplace misbehavior,
managers need to recognize that it exists and then
try to prevent it. It can also be important to
monitor employee attitudes because negative
behavior can show up there as well.
CHAPTER SUMMARY – CHAPTER 10
 Explain how formalization is used in
organizational design.
Work specialization was viewed traditionally as
an unending source of productivity. Today’s view
is that it is an important organizing mechanism
but not a source of ever-increasing productivity.
The chain of command and its companion
concepts—authority, responsibility, and unity of
command—were viewed as important ways of
maintaining control in organizations. The
contemporary view is that they are less relevant in
today’s organizations. The traditional view of
span of control was that managers should directly
supervise no more than 5-6 individuals. The
contemporary view is that the span of control
depends on the skills and abilities of the manager
and the employees and on the characteristics of
the situation.
The various forms of departmentalization are as
follows: Functional – groups jobs by functions
performed; product – groups jobs by product
lines; geographical – groups jobs by geographical
region; process – groups jobs on product or
customer flow; and customer – groups jobs on
specific and unique customer groups. (See Exhibit
10-2.)
Cross-functional teams are work teams composed
of individuals from various functional specialties.
Authority is the rights inherent in a managerial
position to tell people what to do and to expect
them to do it. Responsibility is the obligation or
expectation to perform assigned duties. Unity of
command states that a person should report to
only one manager.
Factors that influence the amount of
centralization-decentralization include such things
as the environment, experience of managers,
nature of the decision, size of the company, and so
forth. (See Exhibit 10-4 for a full list.)
Formalization concerns the organization’s use of
standardization and strict rules to provide
consistency and control.
Organizational Design Decisions
 Contrast mechanistic and organic
organizations.
 Explain the relationship between strategy
and structure.
 Tell how organizational size affects
organizational design.
 Discuss Woodward’s findings on the
relationship of technology and structure.
 Explain how environmental uncertainty
affects organizational design.
A mechanistic organization is a rigid and tightly
controlled structure. An organic organization is
highly adaptive and flexible. (See Exhibit 10-5.)
An organization’s structure should support the
strategy. If the strategy changes, the structure also
should change.
Understanding Communication
An organization’s size can affect its structure up
to a certain point. Once an organization reaches a
certain size (around 2,000 employees), it’s fairly
mechanistic.
Woodward found that an organization’s
technology can affect its structure. An organic
structure is most effective with unit production
and process production technology. A mechanistic
structure is most effective with mass production
technology. (See Exhibit 10-6.)
The more uncertain an organization’s
environment, the more it needs the flexibility of
an organic design.
Common Organizational Designs
 Contrast the three traditional
organizational designs.
 Explain team, matrix, and project
structures.
 Describe the design of virtual and network
organizations.
 Discuss the organizational design
challenges facing managers today.
A simple structure is one with low
departmentalization, wide spans of control,
authority centralized in a single person, and little
formalization. A functional structure groups
similar or related occupational specialties
together. A divisional structure is made up of
separate business units or divisions. (See Exhibit
10-7.)
In a team structure, the entire organization is
made up of work teams. The matrix structure
assigns specialists from different functional
departments to work on one or more projects
being led by project managers. A project structure
is one in which employees continuously work on
projects. (See Exhibit 10-8.)
A virtual organization consists of a small core of
full-time employees and outside specialists
temporarily hired as needed to work on projects.
A network organization is an organization that
uses its own employees to do some work activities
and networks of outside suppliers to provide other
needed product components or work processes.
Three organizational design challenges face
today’s managers: keeping employees connected,
building a learning organization, and managing
global structural issues.
CHAPTER SUMMARY – CHAPTER 11
 Differentiate between interpersonal and
organizational communication.
  Discuss the functions of communication.
Interpersonal communication is communication
between two or more people. Organizational
communication is all the patterns, networks, and
systems of communication within an organization.
The functions of communication include
controlling employee behavior, motivating
employees, providing a release for emotional
expression of feelings and fulfillment of social
needs, and providing information.
The Process of Interpersonal Communication
 Explain all the components of the
communication process.
 List the communication methods managers
might use.
 Describe nonverbal communication and
how it takes place.
 Explain the barriers to effective
interpersonal communication and how to
overcome them.
There are seven elements in the communication
process. (See Exhibit 11-1.) First there is a sender
who has a message. A message is a purpose to be
conveyed. Encoding is converting a message into
symbols. A channel is the medium a message
travels along. Decoding is when the receiver
retranslates a sender’s message. Finally, there is
feedback.
The communication methods include face-to-face,
telephone, group meetings, formal presentations,
memos, traditional mail, fax, employee
publications, bulletin boards, other company
publications, audio- and videotapes, hotlines, e-
mail, computer conferencing, voice mail,
teleconferences, and videoconferences. (See
Exhibit 11-2.)
Nonverbal communication is communication
transmitted without words. The best known types
are body language and verbal intonation.
The barriers to effective communication include
filtering, emotions, information overload,
defensiveness, language, and national culture.
Managers can overcome these barriers by using
feedback, simplifying language, listening actively
(see Exhibit 11-3), constraining emotions, and
watching for nonverbal clues.
Organizational Communication
 Explain how communication can flow in
an organization.
 Describe the three common
communication networks.
 Discuss how managers should handle the
grapevine.
Communication in an organization can flow
downward, upward, laterally, and diagonally.
The three communication networks include the
chain, in which communication flows downward
and upward according to the formal chain of
command; the wheel, in which communication
flows between a clearly identifiable and strong
leader and others in a work team; and the all-
channel, in which communication flows freely
among all members of a work team. (See Exhibit
11-4.)
Managers should manage the grapevine as an
important information network. They can
minimize the negative consequences of rumors by
communicating openly, fully, and honestly with
employees.
Understanding Information Technology
 Describe how technology affects
managerial communication.
 Define e-mail, instant messaging, blogs
and wikis, voice mail, fax, EDI,
teleconferencing, videoconferencing, Web
conferencing, intranet, and extranet.
 Explain how information technology
affects organizations.
Technology has radically changed the way
organizational members communicate. It
improves a manager’s ability to monitor
performance; it gives employees more complete
information to make faster decisions; it has
provided employees more opportunities to
collaborate and share information; and it has made
it possible for people to be fully accessible,
anytime anywhere.
E-mail is the instantaneous transmission of
written messages on linked computers; Instant
messaging is interactive real-time communication.
A blog is an online journal that usually focuses on
a particular subject. A wiki is a type of Web site
that allows anyone visiting it to add, remove, or
otherwise edit the content. Voice mail digitizes a
spoken message, transmits it over a network, and
stores the message for the receiver to retrieve
later. Fax is communication through machines
that allow the transmission of documents
containing both text and graphics. Electronic data
interchange is a way for organizations to
exchange standard business transaction
documents using computer networks.
Teleconferencing allows a group of people to
confer simultaneously using telephone or e-mail
group communication software.
Videoconferencing is a simultaneous
communication conference where participants can
see each other. Web conferencing is holding
group meetings or live presentations over the
Internet. An intranet is an organizational
communication network that uses Internet
technology and is accessible only by
organizational employees. An extranet uses
Internet technology and allows authorized users
inside the organization to communicate with
certain outsiders.
IT affects organizations by affecting the way that
organizational members communicate, share
information, and do their work.
Communication Issues in Today’s
Organizations
 Discuss the challenges of managing
communication in an Internet world.
 Explain how organizations can manage
knowledge.
 Describe why communicating with
customers is an important managerial
issue.
 Explain how political correctness is
affecting communication.
The two main challenges of managing
communication in an Internet world are the legal
and security issues and the lack of personal
interaction.
Organizations can manage knowledge by making
it easy for employees to communicate and share
their knowledge so they can learn from each other
ways to do their jobs more effectively and
efficiently. One way is through online information
databases and another way is through creating
communities of practice.
Communicating with customers is an important
managerial issue since what communication takes
place and how it takes place can significantly
impact a customer’s satisfaction with the service
and the likelihood of being a repeat customer.
Political correctness is affecting communication
in that it sometimes restricts communication
clarity. However, managers must be sensitive as
to how their choice of words might offend others.