Team Size

Smaller teams are better because:

• Less process loss -- need less time to coordinate roles and
resolve differences
• Require less time to develop
• More engaged with team – know members, more
influence on the team
• Feel more responsible for team’s success
But team must be large enough to accomplish task

Copyright McGraw Hill Ryerson 2018

 Team Composition
Cooperating
Effective team •Share resources
•Accommodate
members must be Conflict
others

willing and able to Resolving Coordinating

•Diagnose conflict •Align work with
work on the team sources others
•Use best conflict- Team Member •Keep team on
Effective team handling strategy Competencies track

members possess
Comforting Communicating
specific competencies •Show empathy •Share information
•Provide psych
(5 C’s in diagram) comfort
freely, efficiently,
respectfully
•Build confidence •Listen actively

Copyright McGraw Hill Ryerson 2018

 Team Composition: Diversity
Team members have diverse knowledge, skills,
perspectives, values, etc.
Advantages
• View problems/alternatives from different perspectives
• Broader knowledge base
• Better representation of team’s constituents

Disadvantages
• Take longer to become a high-performing team
• Susceptible to “faultlines” – less motivation to coordinate

Copyright McGraw Hill Ryerson 2018

 Team Roles and Transactive Memory
Role: A set of behaviors that people expected to perform
because they hold certain positions in a team and organization.
Formal Team Roles and Informal Team Roles
Transactive Memory system describes how task-relevant
knowledge is distributed within a team and the collective
awareness of who knows what.
• Clearly defined and complementary strengths make for a stronger team
but unless team members know who has what skill those skills might
get wasted and lead to processes.
• Teams with more well-developed transactive memory systems
outperform teams with less well-developed systems.

Copyright McGraw Hill Ryerson 2018

 Team Norms
Informal rules and shared expectations team establishes to
regulate member behaviors
Norms develop through:
• Initial team experiences
• Critical events in team’s history
• Experience/values members bring to the team
Preventing/Changing Dysfunctional Team Norms
• State desired norms when forming teams
• Select members with preferred values
• Discuss counter-productive norms
• Introduce team-based rewards that counter dysfunctional norms
• Disband teams with dysfunctional norms
Copyright McGraw Hill Ryerson 2018
 Team Cohesion
Team cohesion
• The degree of attraction people feel toward the team and
their motivation to remain members
Team cohesion is stronger/occurs faster with:
• Higher member similarity
• Smaller team size
• Regular/frequent member interaction
• Somewhat difficult team entry (membership)
• Higher team success
• More external competition/challenges

Copyright McGraw Hill Ryerson 2018

 Team Cohesion and Performance
High cohesion teams usually perform better because:
• Motivated to maintain membership and achieve team objectives
• Share information more frequently
• Higher coworker satisfaction
• Better social support (minimizes stress)
• Resolve conflict more swiftly and effectively

Contingencies of cohesion and performance

1. Task interdependence
• Cohesion motivates cooperation; less important with low
interdependence

2. Team norms consistent with organizational objectives

• Cohesion motivates conformity to team norms
• Cohesion motivates LOWER performance if norms oppose company
objectives Copyright McGraw Hill Ryerson 2018
 Team Efficacy
The collective belief among team members if the team’s
capability to successfully completing a task is team efficacy.
Teams with high level of efficacy outperform teams with lower
level of efficacy.
• High efficacy leads to team members setting ambitious goals, put forth
greater effort, persist longer when faced with a challenge and view
negative feedback as an opportunity.
• Low team efficacy leads to team members feeling apathy, uncertainty
and a lack of direction.

In teams with high efficacy, individual team members are more

likely to display coordination and cooperative type behavior.

Copyright McGraw Hill Ryerson 2018

 Three Levels of Trust

High

Identification-based Trust

Knowledge-based Trust

Calculus-based Trust
Low

Copyright McGraw Hill Ryerson 2018

© Victor Biro/Alamy Stock Photo
 Team Processes
Team processes: refers to the interactions and activities that
occur within a team as it works towards it goal.
Internal Team Processes
• Teamwork behaviour: Activities that are devoted to enhancing the
quality of interactions, interdependencies, cooperation and
coordination of teams
• Taskwork behaviour: Efforts devoted to understanding the task
requirements, discovering the rules, establishing patterns of interaction
, exchanging task-related information, developing solutions to problems
and so forth

External Team Processes

• Team boundary spanning: Team actions that establish or enhance
linkages and manage interactions with parties in the external
environment.

Copyright McGraw Hill Ryerson 2018

 Communication Process Model
Sender Receiver
Transmit
Message
Receive
Form Encode Decode
encoded
message message message
message

Noise

Receive
Decode Encode Form
encoded
feedback feedback feedback
feedback
Transmit
Feedback

©McGraw-Hill Education.
 Improving Communication Coding/Decoding
• Sender/receiver have similar
codebooks
• Sender is experienced
encoding that message
• Sender/receiver are
motivated and able to use
the selected channel
• Sender/receiver have shared
mental models of the
communication context

©McGraw-Hill Education.
 Communication Channels
Verbal
• Verbal communication uses words, so it includes spoken or
written channels.
• Spoken and written channels are very different from each
other and have different strengths and weaknesses.
• Written mail has generally been a slower medium however,
transmitting messages through email, tweets etc. has
improved written communication efficiency.
Non-verbal
• Non-verbal communication is any part of communication
that does not use words. It includes facial gestures, voice
intonation, physical distance, and even silence.

©McGraw-Hill Education.
 How Email has Altered Communication
• Preferred channel for
coordinating work
• Tends to increase
communication volume
• Significantly alters
communication flow
• Somewhat reduces status
differences and
stereotyping

©McGraw-Hill Education.
 Problems with Emails
• Communicates emotions
poorly
• Reduces politeness and
respect (flaming)
• Inefficient for ambiguous,
complex, novel situations
• Increases information
overload

©McGraw-Hill Education.
 Communicating Through Social Media
Internet/mobile-based channels with user-generated,
interactive content
• Blogs, wikis, tweets, personal sites (e.g. Facebook)
• More conversational and interactive
• Most can develop a public identity
• Encourage communities -- links, interactivity, feedback
Serves diverse functions
• Presenting identity, enabling conversations, etc

©McGraw-Hill Education.
 Emotional Contagion
The automatic process of sharing another person’s
emotions by mimicking their facial expressions and
other nonverbal behavior
Serves three purposes:
1. Provides continuous feedback to speaker
2. Increases emotional understanding of the other person’s
experience
3. Communicates a collective sentiment -- sharing the
experience as part of drive to bond

©McGraw-Hill Education.
 Choosing Channels: Social Acceptance
Do others support use of that communication channel
for that purpose?
Depends on:
1. Firm/team norms for using the channel
2. Individual preferences for using the channel
3. Symbolic meaning of the channel

©McGraw-Hill Education.
 Choosing Channels: Media Richness
The channel’s data-carrying capacity needs to be aligned with
the communication activity

High richness when channel:

1. Conveys multiple cues
2. Allows timely feedback
3. Allows customized message
4. Permits complex symbols
Use rich communication media when the situation is nonroutine
and ambiguous

©McGraw-Hill Education.
 Hierarchy of Media Richness

©McGraw-Hill Education.
 Exceptions to Media Richness
Media richness theory doesn’t apply as well to
electronic channels because:
1. Able to multi-communicate through lean channels
2. More varied proficiency levels
3. Lean channels have less social distraction than do
media rich channels

©McGraw-Hill Education.
 Persuasive Communication
Changing another person’s beliefs and attitudes.
Spoken communication is more persuasive because:
• Accompanied by nonverbal communication
• Has high quality immediate feedback
• Has high social presence
Written communication can also persuade to some
extent.
• Written messages have the advantage of presenting more
technical detail than can occur through conversation.

©McGraw-Hill Education.
 Communication Barriers

Perceptions
Language
• Jargon
• Ambiguity
Filtering
Information Overload

©McGraw-Hill Education.
 Information Overload
Job’s information load exceeds
person’s capacity to process it
• Information gets overlooked
or misinterpreted
Two sets of solutions:
• Increase information
processing capacity
o Examples: Learn to read
faster, remove distractions
• Reduce information load
o Examples: Buffering,
omitting, summarizing

©McGraw-Hill Education.
 Cross-Cultural Communication
Verbal differences
• Language
• Voice intonation
• Silence/conversational overlaps
Nonverbal differences
• Some nonverbal gestures are universal, but others vary
across cultures

©McGraw-Hill Education.
 Getting Your Message Across

• Empathize
• Repeat the message
• Use timing
effectively
• Focus on the
problem, not the
person

©McGraw-Hill Education.
 Active Listening Process and Strategies

Sensing
• Postpone evaluation
• Avoid interruptions
• Maintain interest

Active
Listening
Responding Evaluating
• Show interest • Empathize
• Clarify the message • Organize information

©McGraw-Hill Education.
 Communicating in Hierarchies
Workspace design
• Open offices – consider noise,
distractions
• Cloister people in teams
Internet-based organizational
communication
• Wikis -- collaborative document
creation
• E-zines -- rapid distribution of company
news
Direct communication with management
• Management by walking around
(MBWA)
• Town hall meetings

©McGraw-Hill Education.
 The Meaning of Power
The capacity of a person, team, or Perception – target perceives
organization to influence others powerholder controls a valuable resource

Potential to change attitudes and Power involves unequal dependence

behavior (not actual change)
Countervailing Power: The capacity of a
People may be unaware of their power person, team or organization to keep a
more powerful person or group in the
exchange relationship.

©McGraw-Hill Education. © Arlen Redekop, PNG /Post Media

 Legitimate Power
Agreement that people in certain roles can request
certain behaviors of others
Zone of indifference -- range of behaviors for deference
to authority
Norm of reciprocity -- felt obligation to help someone
who has helped you
Information control -- right to distribute information to
others
• Creates dependence
• Frames situation
©McGraw-Hill Education.
 Other Sources of Power
Reward power
• Control rewards valued by
others, remove negative
sanctions
Coercive power
• Ability to apply punishment
Referent power
• Capacity to influence
others through
identification with and
respect for the power
holder
• Associated with charisma
©McGraw-Hill Education.
 Expert Power
Capacity to influence others by possessing knowledge
or skills that they value
Coping with uncertainty
• Organizations operate better in predictable environments
• People gain power by using their expertise to:
- Prevent environmental changes
- Forecast environmental changes
- Absorb environmental changes

©McGraw-Hill Education.
 Influencing Others
Influence is any behavior
that attempts to alter
someone’s attitudes or
behavior
Applies one or more
power bases
Essential activity in
organizations
• Coordinate with others
• Part of leadership
definition
• Everyone engages in
influence
©McGraw-Hill Education.
 Types of Influence (1 of 4)

Silent • Following requests without overt influence

Authority • Based on legitimate power, role modeling
• Common in high power distance cultures

Assertiveness • Actively applying legitimate and coercive

power (“vocal authority”)
• Reminding, confronting, checking,
threatening

©McGraw-Hill Education.
 Types of Influence (2 of 4)

Information • Manipulating others’ access to information

Control • Withholding, filtering, re-arranging
information

Coalition • Group forms to gain more power than

individuals alone
Formation
1. Pools resources/power
2. Legitimizes the issue
3. Power through social identity

©McGraw-Hill Education.
 Types of Influence (3 of 4)

Upward • Appealing to higher authority

Appeal • Includes appealing to firm’s goals
• Alliance or perceived alliance with higher
status person

• Logic, facts, emotional appeals

Persuasion
• Depends on persuader, message content,
message medium, audience
• Inoculation Effect: A persuasive
communication strategy of warning listeners
that others will try to influence them

©McGraw-Hill Education.
 Types of Influence (4 of 4)

Impression • Actively shaping or public image

Management • Self-presentation
• Ingratiation

Exchange • Promising or reminding of past benefits in

exchange for compliance
• Negotiation, reciprocity, networking

©McGraw-Hill Education.
 Consequences of Influence (1 of 3)

people oppose the behavior desired by the influencer

motivated by external sources

(rewards) to implement request

identify with and

highly motivated to
implement request

Resistance Compliance Commitment

©McGraw-Hill Education.
 Consequences of Influence (2 of 3)

Hard Influence Soft Influence

Tactics Tactics

Silent authority Persuasion

Upward appeal Impression mgt
Coalition formation Exchange
Information control
Assertiveness

Resistance Compliance Commitment

©McGraw-Hill Education.
 Consequences of Influence (3 of 3)
“Soft” tactics generally more acceptable than “hard”
tactics

Appropriate influence tactic depends on:

• Influencer’s power base
• Organizational position
• Cultural values and expectations

©McGraw-Hill Education.
 Is Conflict Good or Bad?
Conflict is a process in which one part perceives that its
interests are being opposed or negatively affected by
another party
Negative Outcomes Positive Outcomes
• Wastes time, energy, resources • Fuller debate of decision choices
• Less information sharing, productivity • Decision assumptions are questioned
• More organizational politics • Potentially generates more creative
ideas
• More job dissatisfaction, turnover,
stress • Improves responsiveness to external
environment
• Weakens team cohesion (when
conflict is within team) • Increases team cohesion (conflict with
other teams)

©McGraw-Hill Education.
 Emerging Views: Task vs Relationship Conflict
Task (constructive) conflict
• Parties focus on the issue, respect
people with other points of view
• Try to understand
logic/assumptions of each position
Relationship conflict
• Focus on personal characteristics
(not issues) as the source of
conflict
• Try to undermine each other’s
worth/competence
• Accompanied by strong negative
emotions

©McGraw-Hill Education. © Caiaimage/Glow Images

 Minimizing Relationship Conflict
Goal: encourage task conflict, minimize relationship
conflict
Problem: relationship conflict often develops when
engaging in task conflict
Three conditions that minimize relationship conflict
during task conflict:
• Emotional intelligence
• Cohesive team
• Supportive team norms

©McGraw-Hill Education.
 Structural Sources of Conflict (1 of 2)

• One party’s goals perceived to interfere

Incompatible with other’s goals
Goals • Manifests due to differences in how to
achieve goals

• Different values/beliefs
Differentiation • Explains cross-cultural, generational,
merger conflict

• Conflict increases with interdependence

Interdependence • Parties more likely to interfere with each
other

©McGraw-Hill Education.
 Structural Sources of Conflict (2 of 2)

Scarce
• Motivates competition for the resource
Resources

Ambiguous • Creates uncertainty, threatens goals

Rules • Encourages political behavior

• Rely on stereotypes
Communication
• Less motivation to communicate
Problems
• Arrogant language escalates conflict

©McGraw-Hill Education.
 Conflict Handling Contingencies (1 of 3)
Problem solving (win-win orientation)
• Best when:
- Interests are not perfectly opposing
- Parties have trust/openness
- Issues are complex
• Problem: other party may use information to its advantage

Forcing (win-lose orientation)

• Best when:
- You have a deep conviction about your position
- Quick resolution required
- Other party would take advantage of cooperation
• Problems: relationship conflict, long-term relations

©McGraw-Hill Education.
 Conflict Handling Contingencies (2 of 3)
Avoiding
• Best when:
- Conflict is emotionally-charged (relationship conflict)
- Conflict resolution cost is higher than benefits
• Problems: doesn’t resolve conflict; causes frustration

Yielding
• Best when:
- Other party has much more power
- Issue is much less important to you than other party
- Value/logic of your position is imperfect
• Problems: increases other’s expectations; imperfect
solution

©McGraw-Hill Education.
 Conflict Handling Contingencies (3 of 3)
Compromising
• Best when:
- Parties have equal power
- Quick solution is required
- Parties lack trust/openness
• Problem: Sub-optimal solution where mutual gains are
possible

©McGraw-Hill Education.
 Cultural and Gender Differences in Conflict
Handling Styles
Research suggests that people from collective cultures –where
group goals are valued more than individual goals- are motivated
to maintain harmonious relations.
Cultural values and norms influence the conflict handling style
used most often in a society but they also represent an
important contingency when outsiders choose the preferred
conflict handling approach.
Gender
• Compared to men, women pay more attention to the relationship between
the two parties. Women tend to adopt a compromising or problem solving
style and are more likely to use the avoiding style.
• Men tend to be more competitive and take a short-term orientation to the
relationship.
©McGraw-Hill Education.
 Structural Approaches to Conflict Management
(1 of 3)
1. Emphasize superordinate goals
(goals that the conflicting parties
value and whose attainment
requires the joint resources and
effort of those parties)
• Emphasize common objective not
conflicting sub-goals
• Reduces goal incompatibility and
differentiation

2. Reduce differentiation
• Reduce differences in values,
attitudes, and experiences
- e.g. Move employees around to
different jobs

©McGraw-Hill Education.
 Structural Approaches to Conflict Management
(2 of 3)
3. Improve communication/
understanding
• Use dialogue to improve mutual
understanding
• Contact hypothesis, Johari window
• Warning: Apply communication
and understanding after
reducing differentiation

©McGraw-Hill Education.
 Structural Approaches to Conflict Management
(3 of 3)
4. Reduce interdependence
• Create buffers
• Use integrators
• Combine jobs

5. Increase resources
• Increase amount of resources
available

6. Clarify rules and procedures

• Establish rules and procedures
• Clarify roles and responsibilities

©McGraw-Hill Education.
 Types of Third Party Intervention (1 of 2)
Third party conflict resolution is any attempt by a
relatively neutral person to help conflicting parties
resolve their difference
High
Mediation Inquisition

Level of
Process
Control
Arbitration

Low Level of Decision Control High

©McGraw-Hill Education.
 Types of Third Party Intervention (2 of 2)
Arbitration: Arbitrators have high control over the final decision but low control over
the process.
Inquisition: Inquisitors control tall discussion about the conflict. They have high
decision control because they choose the form of conflict resolution and they also
have high process control.
Mediation: Mediators have high control over the intervention process. Their main
purpose is to manage the process and context of interaction between the disputing
parties. The final decision is made by the parties.
Mediation-Arbitration: It is a hybrid dispute resolution process.
▪ Positive: Parties enter the process with certainty that the dispute will be
resolved either as a settlement or as a part of the binding decision.
▪ Negative: While parties control the flow of information for negotiation
purposes, deciding what they choose to revel in mediation, parties may feel
compelled to answer corollary questions that arise from previously disclosed
information.

©McGraw-Hill Education.
 Choosing the Best 3rd Party Intervention
Strategy
Managers prefer inquisitional strategy, but not usually
best approach
Mediation potentially offers highest satisfaction with
process and outcomes
Use arbitration when mediation fails

©McGraw-Hill Education.
 Resolving Conflict through Negotiation
Negotiation refers to decision making situations in
which two or more interdependent parties attempt to
reach an agreement.
Distributive: When the goals of two or more people are
zero-sum so that one can gain only at the other’s
expense.
Integrative: When parties’ goals are linked, but not
zero-sum, so that one person’s goal achievement does
not block the goal achievement of another.

©McGraw-Hill Education.
 Bargaining Zone Model

Your Positions
Initial Target Resistance

Bargaining
Zone

Resistance Target Initial

Opponent’s Positions

©McGraw-Hill Education.
 Strategies for Claiming Value
Claiming value – aiming for the best possible outcomes
for yourself and your constituents.
1. Prepare and set goals
2. Know your BATNA
3. Know your limits
Distributive Strategies that work:
1. Manage first offers and concessions
2. Manage time

©McGraw-Hill Education.
 Strategies for Creating Value
Creating value – use problem solving to help both
parties reach the best outcomes.
1. Gather information
2. Discover priorities through offers and concessions
3. Build the relationship (trustworthiness)

©McGraw-Hill Education.
 Situational Influences on Negotiations
Location – easier to negotiate on your own turf
Physical setting –seating arrangements, etc.
Audience – negotiators are more competitive, make
fewer concessions when audience is watching

©McGraw-Hill Education.
 Leadership Defined
Leadership is the ability to influence, motivate,
and enable others to contribute toward the
effectiveness of the organizations of which they
are members.

©McGraw-Hill Education. © Tim Fraser

 Transformational Leadership Model

Build Develop/communi
commitment to cate a strategic
the vision vision

Elements of
Transformational
Leadership

Encourage Model the vision

experimentation

Jump to Appendix 1 long image

description
©McGraw-Hill Education.
 Transformational Leadership Elements (1 of 2)
1. Develop/Communicate the vision Build Develop/
Develop/
commitment to communicate
communicate aa

• Use symbols, metaphors, symbols the vision strategic vision

strategic vision

• Frame the vision Elements of

Transformational

• Leaders communicate with humility,

Leadership

sincerity, passion Encourage Model

experimentation the vision

2. Model the vision

• Enacting the vision (“walking the talk”)
• Leader’s own behaviour symbolizes, demonstrates the vision
• Two functions:
- Legitimizes and demonstrates the vision
- Builds employee trust in the leader

©McGraw-Hill Education.
 Transformational Leadership Elements (2 of 2)
Build Develop/

3. Encourage experimentation commitment to

the vision
communicate a
strategic vision

• Encourage employees to question Elements of

current practices Transformational

Leadership

• Support a learning orientation

Encourage Model
experimentation the vision

4. Build commitment to the vision

• Stronger commitment from earlier elements
- communicating, modelling, encouraging experimentation
• Also through rewards, recognition, celebrations

©McGraw-Hill Education.
 Evaluating Transformational Leadership
Transformational leadership is important
• Higher satisfaction, commitment, performance, OCBs,
decisions, creativity
Transformational leadership limitations
• Circular logic
• Mixed models (behaviour and attributes)
• Universal theory

©McGraw-Hill Education.
 Task vs People Styles of Leadership
Task-oriented behaviours
• Assign work, clarify responsibilities
• Set goals and deadlines, provide feedback
• Establish work procedures, plan future work

People-oriented behaviours
• Concern for employee needs
• Make workplace pleasant
• Recognize employee contributions
• Listen to employees

Both styles necessary, but different effects

©McGraw-Hill Education.
 Path-Goal Leadership
Leaders motivate through expectancies and valences
• Expectancy theory and rational decision model
Contingency theory of managerial leadership
• Best leadership style depends on employee/situation
Four main path goal leadership styles
• Directive
• Supportive
• Participative
• Achievement-oriented

Jump to Appendix 2 long image description

©McGraw-Hill Education.
 Path-Goal Leadership Model

Employee
Contingencies
Leader Leader
Behaviours Effectiveness

• Directive • Employee
• Supportive motivation
• Participative • Employee
satisfaction
• Achievement-
oriented • Acceptance of
leader
Environmental
Contingencies

Jump to Appendix 2 long image

description
©McGraw-Hill Education.
 Path-Goal Contingencies
Skill and experience
• Low: directive and supportive leadership
Locus of control
• Internal: participative and achievement leadership
• External: directive and supportive leadership
Task structure
• Nonroutine: directive and/or participative leadership
Team dynamics
• Low cohesion: supportive leadership
• Dysfunctional norms: directive leadership

©McGraw-Hill Education.
 Attributes of Effective Leaders (1 of 4)
Personality
• Most Big Five dimensions predict effective
leadership
• Strongest are high extroversion and
conscientiousness
Self-concept
• Complex, internally consistent, clear self-view as a
leader
• Positive self-evaluation
• Transformational and managerial leader self-view

©McGraw-Hill Education. © dpa picture alliance archive/Alamy Stock Photo

 Attributes of Effective Leaders (2 of 4)
Leadership motivation
• Motivated to lead others
• Strong need for socialized power
Drive
• High need for achievement
• Related to high conscientious-ness and
positive self-concept
• Inquisitiveness, action-oriented, boldness

©McGraw-Hill Education. © dpa picture alliance archive/Alamy Stock Photo

 Attributes of Effective Leaders (3 of 4)
Integrity
• Truthfulness and consistency of words and
actions
• Judge dilemmas using sound values
• Related to honesty and ethical conduct
Knowledge of the business
• Tacit and explicit knowledge of the
organization’s environment

©McGraw-Hill Education. © dpa picture alliance archive/Alamy Stock Photo

 Attributes of Effective Leaders (4 of 4)
Cognitive/Practical Intelligence
• Above average cognitive ability
• Superior ability to analyze complex alternatives
and opportunities
• Able to use business knowledge to solve real-
world problems
Emotional Intelligence
• Recognize/regulate emotions in themselves and
others

©McGraw-Hill Education. © dpa picture alliance archive/Alamy Stock Photo

 Authentic Leadership

Know Yourself Be Yourself

• Engage in self-reflection • Develop your own style

• Feedback from trusted • Apply your values
sources • Maintain a positive core
• Know your life story self-evaluation

©McGraw-Hill Education.
 Leader Attributes Perspective Limitations
1. Universal approach
2. Different combinations of attributes may be equally
good
3. Views leadership within person – should be
relational
4. Link between attributes and effective leadership is
biased by implicit leadership
5. Competencies refer to leadership potential, not
performance

©McGraw-Hill Education.
 Organizational Structure Defined
Division of labour and
patterns of coordination,
communication, workflow,
and formal power that direct
organizational activities.

©McGraw-Hill Education. © Samsung Electronics

 Elements of Organizational Structure

Departmentalization Span of control

Elements of
Organizational Structure

Formalization Centralization

©McGraw-Hill Education.
 Span of Control
Number of people directly
reporting to the next level
Wider span of control is
possible when:
• Other coordinating mechanisms
are present
• Routine tasks
• Low employee interdependence

©McGraw-Hill Education. © Vibrant Pictures/Alamy Stock Photo

 Tall vs Flat Structures
As companies grow, they:
• Build a taller hierarchy
• Widen span of control
• Do some combination of both

Problems with tall hierarchies

• Poorer upward information
• Higher overhead costs
• Undermines employee
empowerment/engagement

©McGraw-Hill Education. © Vibrant Pictures/Alamy Stock Photo

 Centralization/Decentralization

Centralization – Formal
Information
decision making authority is Production Technology Sales
held by a few people, Upper Mgt Upper Mgt Upper Mgt

usually at the top

Decentralization increases
as companies grow Middle Mgt Middle Mgt Middle Mgt

Varying degrees of
centralization in different Supervisory Supervisory Supervisory

areas of the company

• Example: decentralized
Front line Front line Front line
sales; centralized infotech
= locus of decision making authority

©McGraw-Hill Education.
 Formalization
Standardizing behaviour through rules, procedures,
training, etc.
Older, larger, regulated firms usually have more
formalization
Problems with formalization
• Less organizational flexibility
• Discourages organizational learning/creativity
• Less work efficiency
• Increases job dissatisfaction and work stress
• Rules/procedures become focus of attention

©McGraw-Hill Education.
 Functional Organizational Structure
Organizes employees around specific knowledge or
other resources (e.g., marketing, production)

CEO

Finance Production Marketing

©McGraw-Hill Education.
 Evaluating Functional Structures
Benefits Limitations
• Economies of scale • Emphasizes subunit more
• Supports professional than organizational goals
identity and career paths • Higher dysfunctional conflict
• Easier supervision • Poorer coordination across
units

©McGraw-Hill Education. Courtesy of David Chapman’s Ice Cream

 Divisional Structure
Organizes employees around outputs, clients, or geographic
areas
Best type depends on environmental diversity, uncertainty
Geographic structures becoming less common

CEO

Lighting Consumer
Healthcare
Products Lifestyle

©McGraw-Hill Education.
 Evaluating Divisional Structures
Benefits
• Building block structure – accommodates growth
• Focuses on markets/products/clients

Limitations
• Duplication, inefficient use of resources
• Silos of knowledge – expertise isolated across divisions
• Executive power affected by shifting divisional structure

©McGraw-Hill Education.
 Team-Based Structure
Self-directed teams organized around work processes
Typically an organic structure within a divisional structure
Benefits
• Responsive, flexible
• Lower admin costs
• Quicker, more informed decisions

Limitations
• Interpersonal training costs
• Team development
• More stressful
• Team leader issues
• Duplicated resources

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 Organizational Strategy
Structure follows strategy
• Strategy points to the environments in which the organization
will operate
• Leaders decide which structure to apply
Innovation strategy
• Providing unique products or attracting clients who want
customization
Cost leadership strategy
• Maximize productivity in order to offer competitive pricing

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 Organizational Structure Defined
Division of labour and
patterns of coordination,
communication, workflow,
and formal power that direct
organizational activities.

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 Elements of Organizational Structure

Departmentalization Span of control

Elements of
Organizational Structure

Formalization Centralization

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 Span of Control
Number of people directly
reporting to the next level
Wider span of control is
possible when:
• Other coordinating mechanisms
are present
• Routine tasks
• Low employee interdependence

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 Tall vs Flat Structures
As companies grow, they:
• Build a taller hierarchy
• Widen span of control
• Do some combination of both

Problems with tall hierarchies

• Poorer upward information
• Higher overhead costs
• Undermines employee
empowerment/engagement

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 Centralization/Decentralization

Centralization – Formal
Information
decision making authority is Production Technology Sales
held by a few people, Upper Mgt Upper Mgt Upper Mgt

usually at the top

Decentralization increases
as companies grow Middle Mgt Middle Mgt Middle Mgt

Varying degrees of
centralization in different Supervisory Supervisory Supervisory

areas of the company

• Example: decentralized
Front line Front line Front line
sales; centralized infotech
= locus of decision making authority

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 Formalization
Standardizing behaviour through rules, procedures,
training, etc.
Older, larger, regulated firms usually have more
formalization
Problems with formalization
• Less organizational flexibility
• Discourages organizational learning/creativity
• Less work efficiency
• Increases job dissatisfaction and work stress
• Rules/procedures become focus of attention

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 Functional Organizational Structure
Organizes employees around specific knowledge or
other resources (e.g., marketing, production)

CEO

Finance Production Marketing

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 Evaluating Functional Structures
Benefits Limitations
• Economies of scale • Emphasizes subunit more
• Supports professional than organizational goals
identity and career paths • Higher dysfunctional conflict
• Easier supervision • Poorer coordination across
units

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 Divisional Structure
Organizes employees around outputs, clients, or geographic
areas
Best type depends on environmental diversity, uncertainty
Geographic structures becoming less common

CEO

Lighting Consumer
Healthcare
Products Lifestyle

©McGraw-Hill Education.
 Evaluating Divisional Structures
Benefits
• Building block structure – accommodates growth
• Focuses on markets/products/clients

Limitations
• Duplication, inefficient use of resources
• Silos of knowledge – expertise isolated across divisions
• Executive power affected by shifting divisional structure

©McGraw-Hill Education.
 Team-Based Structure
Self-directed teams organized around work processes
Typically an organic structure within a divisional structure
Benefits
• Responsive, flexible
• Lower admin costs
• Quicker, more informed decisions

Limitations
• Interpersonal training costs
• Team development
• More stressful
• Team leader issues
• Duplicated resources

©McGraw-Hill Education. Cancan Chu/Getty Images

 Organizational Strategy
Structure follows strategy
• Strategy points to the environments in which the organization
will operate
• Leaders decide which structure to apply
Innovation strategy
• Providing unique products or attracting clients who want
customization
Cost leadership strategy
• Maximize productivity in order to offer competitive pricing

©McGraw-Hill Education.
 Force Field Analysis Model (1 of 2)
Driving forces
• Push organizations toward change
• External forces or leader’s vision
Restraining
Forces
Restraining forces
• Resistance to change
• Employee behaviours that block the
change process
• Try to maintain status quo Driving
Forces

Jump to Appendix 1 long image description

©McGraw-Hill Education.
 Force Field Analysis Model (2 of 2)

Desired Restraining
Conditions Forces

Restraining
Forces Driving
Forces
Restraining
Forces

Driving
Forces
Current Driving
Conditions Forces

Before During After

Change Change Change

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 3-Step Change Model
1. Unfreezing: The first option is to increase the driving
forces, motivating employees to change through fear or
threats (real or contrived). This strategy rarely works,
however, because the action of increasing the
driving forces alone is usually met with an equal and
opposing increase in the restraining forces. A useful
metaphor is pushing against the coils of a mattress. The
harder corporate leaders push for change,
the stronger the restraining forces push back. This
antagonism threatens the change effort by producing
tension and conflict within the organization.
©McGraw-Hill Education.
 3-Step Change Model: unfreezing, changing, refreezing
First option: The first option is to increase the driving
forces, motivating employees to change through fear or
threats (real or contrived). This strategy rarely works,
however, because the action of increasing the
driving forces alone is usually met with an equal and
opposing increase in the restraining forces. A useful
metaphor is pushing against the coils of a mattress. The
harder corporate leaders push for change, the stronger
the restraining forces push back. This antagonism
threatens the change effort by producing tension and
conflict within the organization.

©McGraw-Hill Education.
 Second Option: The second option is to weaken or
remove the restraining forces. The problem with this
change strategy is that it provides no motivation for
change. To some extent, weakening the restraining
forces is like clearing a pathway for change. An
unobstructed road makes it easier to travel to the
destination but does not motivate anyone to go there.
The preferred option, therefore, is to both increase the
driving forces and reduce or remove the restraining
forces. Increasing the driving forces creates an urgency
for change, while reducing the restraining forces lessens
motivation to oppose the change and removes obstacles
such as lack of ability and situational constraints.

©McGraw-Hill Education.
 Unfreezing: This first stage of change involves
preparing the organization to accept that change is
necessary, which involves breaking down the existing
status quo before you can build up a new way of
operating. Key to this is developing a compelling
message showing why the existing way of doing things
cannot continue.
Change: After the uncertainty created in the unfreeze
stage, the change stage is where people begin to resolve
their uncertainty and look for new ways to do things.
People start to believe and act in ways that support the
new direction. In order to accept the change and
contribute to making it successful, people need to
understand how it will benefit them.
©McGraw-Hill Education.
 Refreeze: When the changes are taking shape and
people have embraced the new ways of working, the
organization is ready to refreeze. The outward signs of
the refreeze are a stable organization chart, consistent
job descriptions, and so on. The refreeze stage also
needs to help people and the organization internalize or
institutionalize the changes. This means making sure that
the changes are used all the time, and that they are
incorporated into everyday business. With a new sense
of stability, employees feel confident and comfortable
with the new ways of working.

©McGraw-Hill Education.
 Understanding Resistance to Change
Many forms of resistance
• Complaints, absenteeism, passive noncompliance
• Subtle resistance more common than overt
View resistance as task conflict
• Signals that employees lack readiness for change or that
change strategy should be revised
View resistance as a form of voice
• Redirects resistance into constructive conversations – more
active thinking about the change strategy
• Generates feelings of fairness
• Increases commitment to change

©McGraw-Hill Education.
 Why People Resist Change (1 of 2)
[Link] valence of change
- Negative more than positive outcomes

[Link] of the unknown

- People assume worst
- Perceive lack of control

[Link]-invented-here-syndrome
- Staff oppose change in their area introduced by others
- To protect self-esteem

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 Why People Resist Change (2 of 2)
[Link] routines
- Cost and discomfort of changing routines and habits

[Link] team dynamics

- Team norms conflict with desired change

[Link] organizational systems

- Systems/structures reinforce status quo
- Pull employees back to old ways

©McGraw-Hill Education.
 Creating an Urgency for Change
Inform employees about driving forces
Most difficult when organization is doing well
Customer-driven change
• Human element energizes employees
• Reveals problems and consequences of inaction
Create an urgency to change without external drivers
• Requires persuasive influence
• Use positive vision rather than threats

©McGraw-Hill Education.
 Reducing the Restraining Forces (1 of 3)
1. Communication
• Highest priority, first strategy
• Generates urgency to change
• Reduces uncertainty
• Problems: time consuming and
costly
2. Learning
• Provides new knowledge/skills to
perform well in new situation
• Higher change self-efficacy,
which increases commitment
• Problems: potentially time
consuming and costly
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 Reducing the Restraining Forces (2 of 3)
3. Employee involvement
• More responsibility/ownership
• Minimizes not-invented-here
• Reduces fear of unknown
• Better decisions about the change
• Problems: time-consuming,
potential conflict
4. Stress management
• Reduces negative valence of change
• Less fear of unknown
• Less wasted energy
• Problems: time-consuming, costly,
doesn’t help everyone

©McGraw-Hill Education. © Blueshore Financial

 Reducing the Restraining Forces (3 of 3)
5. Negotiation
• Influence by negotiation–
reduces direct costs
• Use for those who lose (negative
valence) from the change
• Problems: expensive, gains
compliance, not commitment
6. Coercion
• When other strategies fail
• Assertive influence
• Radical form of “unlearning”
• Problems: less trust, subtle
resistance, more politics
©McGraw-Hill Education. © Blueshore Financial
 Coalitions, Social Networks, and Viral Change
Guiding coalition
• Strong commitment to change
• Influence leaders

Social networks and viral

change
• Influence leaders learn and
development commitment to
the change
• Knowledge and enthusiasm is
shared with others in the
network

©McGraw-Hill Education. © Chris Batson/Alamy Stock Photo

 Pilot Projects and Diffusion of Change
Rely on pilot projects and diffuse
through MARS model
Motivation
• Pilot project successful, rewarded
• Minimize resistance to change
Ability
• Employees learn pilot behaviour
Role perceptions
• Translate pilot to other situations
Situational factors
• Provide resources to apply pilot
elsewhere

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 Action Research Approach
Action orientation and research orientation
• Action – to achieve the goal of change
• Research – testing application of concepts
Action research principles
1. Open systems perspective
2. Highly participative process
3. Data-driven, problem-oriented process

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 Action Research Process

Form client-consultant relationship

Diagnose need for change

Introduce intervention

Evaluate and stabilize change

Disengage consultant’s services

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 Appreciative Inquiry Approach
Frames change around positive and possible future,
not problems
1. Positive principle
- focus on positive, not problems
2. Constructionist principle
- conversations shape reality
3. Simultaneity principle
- inquiry and change are simultaneous
4. Poetic principle
- we can choose how to perceive situations (glass half full)
5. Anticipatory principle
- people are motivated by desirable visions

©McGraw-Hill Education.
 Four-D Model of Appreciative Inquiry

Discovery Discovering the best of “what is”

Dreaming Forming ideas about “what might be”

Designing Engaging in dialogue about “what should be”

Delivering Developing objectives about “what will be”

©McGraw-Hill Education.
 Large Group Interventions
Highly participative events involving employees and
other stakeholders
• Involve the “whole system”
• Future oriented, usually to create a shared vision
Limitations of large group interventions
• Limited opportunity to contribute
• Risk that a few people will dominate
• Focus on common ground may hide differences
• Generates high expectations about ideal future

©McGraw-Hill Education.