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Department
Commerce
Course
COMMERCE 1BA3
Professor
Emad Mohammad
Semester
Fall

Description
WEEK 8A: CULTURE & SOCIALIZATION Stages of Socialization 1. Anticipatory (Pre-Arrival):  Ex. job fair, career fair, handshake, psychological contract, listening to boss talk about job  Nothing bad has happened yet  Employees begin with certain expectations about organization and job  May be unrealistic  If unmet will result in dissatisfaction, turnover, etc. 2. Encounter:  Employee has started new job  Ex. Orientation Program (policies, procedures, job duties, benefits, meeting coworkers etc.)  Inconsistencies between expectations and reality emerge  Cognitive dissonance occurs  Benefits of a good orientation program: o Shows organization values to employee o Reduces employee anxiety and turnover o Reduces start-up costs o Clarifies job and organizational expectations o Improves job performance 3. Change (Settling in):  Inconsistencies start to get worked out  Employee begins to identify with organization  Transition from being an “outsider” to feeling like an “insider”  Usually involves taking on new attitudes, values, behaviours to align with organization’s  Misalignment: o Employee starts to conform and do not like it o Causes dissatisfaction and turnover Socialization Tactics (people processing) 1. Collective vs. Individual  Collective: the group of new recruits go through the same set of experiences  Individual: going to process the recruits one by one; almost in isolation; want to have unique socialization process for each person 2. Formal vs. Informal  Formal: put recruits through experiences that are tailored just for the newcomers  Informal: all new employees get the same type of socialization (everyone in organization) 3. Sequential vs. Random  Sequential: organization will specify a given set of steps leading to target role  Random: so sequence whatsoever; no order; check-list has to be done but no order 4. Serial vs. Disjunctive:  Serial: experienced members groom the newcomers for a certain role; following someone’s footsteps  Disjunctive: no footsteps to follow in; new position; want them to do position in a different way 5. Investiture vs. Divestiture:  Investiture: wishes to use and build upon the person’s skill, values, attitudes; they like how you are and do not try to change you; just try to grow  Divestiture: hiring you for your malleability; stripping away you The “Strong Culture” Concept Advantages (1)Coordination: o Facilitate communication and coordination o Finance is listening to marketing; everyone working together; subcultures mesh into one (2)Conflict Resolution: o Sharing core values can resolve conflicts o Strong-cultured organizations are able to resolve conflict because at their core they are all working toward the same thing (3)Financial Success: when the culture supports the concrete pieces the assets of that get translated to the bottom line Disadvantages (1)Resistance to Change: o Damage a firm’s ability to innovate o Strong people are resistant to change; cannot think outside the box because too focused on what they are focused on (2)Culture Clash: o Strong cultures can mix badly when a merger or acquisition occurs What are the seven socialization steps that strong-cultured organizations put their people through? (1)Selection: short-term pain for long-term gain (spend a lot of time on the selection process) (2)Hazing: like frosh week (3) In the trenches training: throw you into role early (4)Rewards and promotions: compensate very well and career-path you (5)Continuously expose you to the corporate culture (immediately and continuously exposed to the culture; know the values) (6)Organizational folklore: storytelling, rights and rituals (7)Role models: mentors, footsteps to follow WEEK 8B: LEADERSHIP Transformational vs. Transactional Leadership  Transformational: o Natural born leaders o Arouse intense feelings o Inspirational o Rely on personal sources of power o Charisma  Transactional: o Motivate by exchanging rewards for services o Manager-like role House’s Path-Goal Theory  Path-Goal Theory: concerned with situations under which various leader behaviors are most effective  The Theory: o Most important activities of leaders are those that clarify the paths to various goals of interest to employees o Goals can include: promotion, sense of accomplishment, pleasant work climate o Opportunity to achieve goals promotes job satisfaction, leader acceptance, high effort o Effective leader forms a connection between employee goals and organizational goals  Leader behavior seen as unnecessary or unhelpful will be resented  Must make rewards dependent on performance  Must make sure employees have clear picture of how to achieve rewards Leader Behavior  Directive behavior: o Schedule work, maintain performance standards, let employees know what is expected o Identical to initiating structure  Supportive behavior: o Friendly, approachable, concerned with pleasant interpersonal relationships o Identical to consideration  Participative behavior: consult with employees about work related matters and consider opinions  Achievement-oriented behavior: o Encourage employees to exert high effort and strive for goals o Express confidence that employees can reach goals Situational Factors (1)Employee characteristics: o Different types of employees need/prefer different forms of leadership: o Employees who are high need achievers  work well under achievement-oriented leadership o Employees who prefer being told what to do  directive leadership o Leaders have to tailor behaviors to needs, abilities, personalities of (2)Environmental factors: o Tasks are clear and routine  employees perceive directive leadership as redundant and unnecessary o Tasks are challenging but ambiguous  employees appreciate directive and participative leadership o Employees with frustrating and dissatisfying jobs want supportive behavior What is the ideal amount of yellow in the brain of a leader?  30 -40 percentile (below 50) for a healthy brain and a good leader Know the difference between:  Neutralizers of Leadership: factors in the work setting that reduce a leader’s opportunity to exercise influence  Substitutes for Leadership: factors in the work setting that can take the place of active leadership, making it unnecessary or redundant WEEK 9: POWER, POLITICS, & ETHICS Five Bases (Types) of Individual Power (1)Legitimate Power:  Power derived from a person’s position or job in an organization  Formal title, the right to give orders  Ex. present of the company (2)Reward Power:  Power derived from the ability to provide positive outcomes and prevent negative outcomes  Person possesses resources/capabilities to give material rewards and recognition  Ex. employee works overtime because wants boss to promote them (3)Coercive Power:  Power derived from the use of punishment and threat  Controlling people through fear  Organization does not give this but tolerates it  Ex. employees arrive to work 15 minutes early because they know that their boss will freak out if they are late (4)Referent Power:  Power derived from being well-liked by others  People do things for you because they admire you  Person has charisma  This can be earned but not given  Ex. people will do a favour for you because you are such a nice person (5)Expert Power:  Power derived from having special information or expertise that is valued by an organization  Person is perceived to be highly experienced and highly trained  Can sway opinions and behaviours of those who are less experienced  Has two components: 1. Status: credentials, letters behind name (ex. PhD, MBA) 2. Information: does the person know what they are talking about  Structural source of power: o Something that the organization gives to the person o Ex. power to punish, coerce, etc. o First three are structural  Personal sources of power: o Not given to person by organization o Comes from the individual o Last two are personal Empowerment  Giving people the authority, opportunity, and motivation to take initiative and solve organizational problems  Giving people the freedom and ability to make decisions and commitments  Puts power where it is needed to make it effective (requires a healthy ego)  People who are empowered have a strong sense of self-efficacy Degrees of Empowerment • No Discretion: o Routine, repetitive, tasks assigned o Operate according to rules rather than initiative • Participatory Empowerment: o Autonomous work groups o Given some authority • Self-Management: o Full decision-making power o Management has faith in employees carrying out organizational missions and goals Characteristics of Empowered People (1)Self-determination:  Free to choose how to work  Not micro-managed (2)Sense of meaning:  Their work is important to them  They care about what they are doing (3)Sense of competence:  Confident about their ability to do their work well  Know they can perform well (4)Sense of impact:  Believe they can have an influence on their work unit  Others listen to their ideas An Alternative View: How do subunits obtain power?  Subunit power: the degree of power held by various organizational subunits (such as departments Reasons A Subunit Could Gain Power 1) Scarcity of Resources: subunits with resources will gain power 2) Uncertainty: during ambiguity, chaos, change  subunit that can decrease uncertainty will gain power 3) Centrality: some subunit that is central to the workflow could be given power if something goes wrong 4) Substitutability: the more non-substitutable you are the more power you have Four Components of Corporate Social Responsibility  Economic: o To be profitable o Required of business society  Legal: o Obey all laws, adhere to all regulations o Required of business by society  Ethical: o Avoid questionable practices o Expected of business by society  Philanthropic: o Be a good corporate citizen o Desired/expected of business by society WEEK 10: CONFLICT AND STRESS Causes of Organizational Conflict (1)Group Identification and Intergroup Bias: o We-they phenomenon o My goals, objective, agenda are more important than yours o Fighting across perspectives when it comes to why we are here andw hat we are supposed to be doing (2)Interdependence: o Sequential: need someone’s work in order to do your work (if they are late yours will be late too/cannot do it properly) o Reciprocal: dependent on each others work (3)Difference in Power, Status, and Culture: o Conflict because two cultures or subcultures are clashing o Ex. “I am an engineer and you are not so I know best” (4)Ambiguity: o Conflict becau
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