Successful Org.

Systems Producing Profits People Practices (Pfeffer & Veiga)

Employment Security, Selective Hiring, Decentralization and Self-Managed Teams, Incentives contingent on
organizational performance, Extensive Training, Reduced Hierarchy and Sharing of Information
Pressure points: short term gains requested by management and shareholders
A companys financial success is directly linked to the way it treats its people. (people at core of the strategies)
40% gain can be obtained by implementing high performance management practices.
One SD increase = Between 18 000$ and 41 000$ increase in stock value per employee
People work harder because of the increased involvement and commitment that comes from having more control and say
in their work; people work smarter because they are encouraged to build skills and competence and people work more
responsibly because more responsibility is placed in hands of employees farther down the organization

Motivation:
Motivation = The intensity, direction and persistence of effort a person shows in reaching a goal (individual differences)
Extrinsic (motivator outside the persons, pay, bonuses) vs Intrinsic (internal desires, challenges)
Needs Theories = Individual have needs that when unsatisfied will result in motivation
Maslow Hierarchy of Needs: Physiological, Safety, Social, Esteem, Self-Actualization
Expectancy Theory: I will put in an effort if I think Ill be successful; if that success will lead to a reward of some kind; and if
I place a value on that reward. (Expectancy=improve the ability to perform, Instrumentality=increase belief that
performance will lead to reward and Valence=make sure reward is meaningful)
Goal Setting Theory: Specific and Difficult goals lead to higher performance (Specific Goal + Participative Decision
Making + Explicit Time Period + Performance Feedback)
Goals should be SMART: specific, measurable, attainable, result oriented and time bound
Self-Efficacy Theory: an individuals belief that he or she is capable of performing a task (improved by gaining experience,
seeing someone else do the task, verbal persuasion and arousal)
Equity Theory: individuals are concerned not only by the amount of rewards for their efforts but also with the relationship
of this amount to what others receive (comparing each others input and output)
Cognitive Evaluation Theory: introduction of extrinsic reward for work effort that was previously done by intrinsic
motivation will decrease the overall level of motivation
How to Increase Intrinsic Motivation: sense of choice, competence, meaningfulness and progress
Shaping Behaviors: positive vs negative reinforcement, punishment and extinction

High Performing Teams

Katzenbach and Smith: A team is a small group of people with complementary skills committed to a common goal purpose
and set of specific performance goals (accountable to one another=commitment and trust)
4 Pillars = Common Commitment/Purpose, Performance Goals, Complementary Skills and Mutual Accountability
Difference between Working Groups and Teams (a team is more than the sum of its parts)
What makes a team effective: Managing Team Subculture and Team Cohesiveness
Norms: acceptable standards of behavior that are shared by the groups members on performance, appearance, social
arrangement and allocation of resources
How norms develop: explicit statements, critical events, initial patterns of behavior, carry over behavior
Cohesiveness influenced by threat and competition, success, diversity, size and toughness of initiation = more
participation, more conformity and more success
Kern, Behfar&Brett = Multicultural Four Strategies adaptation (acknowledging cultural gaps and working around them),
structural intervention (changing shape of team), managerial intervention (setting norms early or bringing in higher-level
manger) and exit (removing team member when other options have failed). Issues = High/Low Context: Direct vs. indirect
communication, Trouble with accents and fluency, Power distance: Differing attitudes toward hierarchy and authority,
Conflicting norms for decision making

Leadership
Mission = (same as purpose): why, what we do, whom we serve and the value for them
Vision= What we want to be when we grow up practical, inspirational, big goal, arouses emotions and stimulates
creativity
EQ: Self-Awareness (not overly critical or unrealistically hopeful), Social Awareness (Empathy), Self-Management = SelfRegulation and Self-Motivation, and Social Skills = Relationship management, Rapport (Daniel Goleman)

Organizational Culture:
The pattern of shared values, beliefs and assumptions considered to be the appropriate way to think and act within an
org.
How culture is established and maintained: philosophy of founder, selection criteria, top management and socialization
Layers = Behavior of top management, performance management (hiring) and goal setting recognition and coaching
(selection and socialization)
Artifacts = Material Symbols, Language, Rituals, Stories vs Culture= Values, Beliefs and Assumptions
Chatman & Cha model to leverage culture as a leadership tool: Strategically Relevant (social control vs formal control)
norms exhibit values, powerful shaper of behavior, Strong Culture (high level of agreement on values vs intensity about it)
and Emphasizing Innovation and Change or use Camerons Model. Tools: Recruiting & selecting for culture fit. Watch out
Similarity Attraction Effect. Managing culture through socialization and training. (clarify values and create bonds)
Socialization: process by which individual understand the values, abilities, expected behaviors, and social knowledge.
Managing through reward system. Three Cs of Culture: Culture works when its Clear, Consistent & Comprehensive.

The irony of leadership through culture is that less

formal direction you give employees about how to
execute strategy, the more ownership they take over
their actions and the better they perform.

Communication, Power and Feedback

Good Communicators (get the intended message,
empathy, relaxed, attentive, flexible)
Bad Communicators (judge the character and not the behaviors)
Speaking Skills, Writing Skills and Channel and Media Selection for good communicators
Power= Coercive: based on fearresistance. Reward (ability to offer or withhold
rewards)compliance. Legitimate (ones position on org chart) compliance. Expert
(earned through practice) commitment. Referent (other people admire/respect you)
commitment. Information (you have information or opportunity to get info ppl want)
depends.
The power others perceive that you are using will enhance or weaken relationships and
communications
Justice= Distributive: what we got. Procedural: how we got it (transparent). Interactional: how its communicated.
Feedback; SAIL Technique (situation, action, impact, link)
Fact/Behavior

Based

only

for

Reinforcement

and

Improvement

Conflict and Decision Making

Roberto & Garvin (Chart)
A Litmus Test: Multiple Alternatives, Assumption Testing, Well-Defined
Criteria, Dissent and Debate, Perceived Fairness
Conflict Types: Cognitive vs Affective. Resolution: Cooperation vs
Assertiveness. Sources: Mis-Communication & Structure (size,
composition, responsibilities) Techniques: Expansion of resources,
authoritative command, altering human variable, altering structure
variable.
Eisenhardt: How Management Teams Can Have a Good Fight: Focus on Facts (more info is better), Multiply Alternatives
(consider more options & promote debate), Create Common Goals (frame choices as collaborative not competitive). Use
Humour (ease tension, make it fun), Balance Power Structure (process needs to be fair), Seek Consensus without forcing.
Build a Fighting Team: Heterogeneous Team. Meet Often. Encourage Members to step outside comfort zone. Apply
multiple mindsets to issues. Actively Manage Conflict

Change

Triggers for Change (outside the org. vs inside)

Targets for change: purpose (rarely), Technology, Structure, People, Culture, Tasks, Strategy, Objectives
Middle Managers Roles: Creating sense of urgency = prepare your 60 sec pitch, preparing people=training, support,
confusion, adjustments, demonstrate short term wins = intrinsic motivators, understand your people and helping them
dealing with it (resistance is natural, empathy) Appeal to the head and the heart
Transitions are psychological (Bridges) = Ending (Certainty), Neutral Zone (Ambiguity), New Beginning (Hope)