BUS603 Study Guide

Navigating this Study Guide

Study Guide Structure

In this study guide, the sections in each unit (1a., 1b., etc.) are the learning outcomes of that unit. 

Beneath each learning outcome are:

• questions for you to answer independently;
• a brief summary of the learning outcome topic; and
• and resources related to the learning outcome. 

At the end of each unit, there is also a list of suggested vocabulary words.

How to Use this Study Guide

1. Review the entire course by reading the learning outcome summaries and suggested resources.
2. Test your understanding of the course information by answering questions related to each unit learning outcome and defining and memorizing the vocabulary words at the end of each unit.

By clicking on the gear button on the top right of the screen, you can print the study guide. Then you can make notes, highlight, and underline as you work.

Through reviewing and completing the study guide, you should gain a deeper understanding of each learning outcome in the course and be better prepared for the final exam!

Unit 1: Individual Behavior

1a. Classify individual attributes (values, personality, and individual perspectives) that people bring into the workplace

• How do personality, values, and attitudes differ from each other?
• What attitudes are important in the workplace?
• What can a manager do to create job satisfaction and organizational commitment?

Our personality are traits that explain or predict our behavior. Most researchers believe that our personality is developed through both nature (we are born with our personality) and nurture (family values, religion, past experiences, and societal influences). Our values help determine our personality; our values are those things that are most important to us. What do you value? Creativity? Hard work? Trust? What might happen if you work in an environment that does not value what you value? Our attitudes can be positive or negative. Attitudes are our opinions about people, things or situations. Our attitudes can change, especially if an important event occurs that causes us to rethink our attitude toward something.

In the workplace, job satisfaction and organizational commitment are the attitudes most important. Job satisfaction is the feeling people have toward their job. Organizational commitment is the emotional attachment people have toward their place of work. Although these job attitudes can be situational, based on your position and the organization, it's vital to recognize how much job satisfaction and organizational commitment affect your human resources.

Because job satisfaction and organizational commitment are situational, there are things managers can do to build positive job satisfaction and strong organizational commitment: be supportive and provide motivation, provide constructive criticism, lead by example, empower individuals, develop a positive, healthy work environment, encourage teamwork and collaboration, develop core values of the organization, reward success, update technology

To review, see Personality, Work Attitudes, and Employee Productivity.

1b. Describe how an individual's attributes affect their work behavior

• Why do people behave like they do in the workplace? What are key workplace behaviors to focus on as a manager?
• What can organizations do if these key behaviors exist?
• How can you, as an employee, display professionalism?

The first key behavior is job performance, which is our performance level on factors included in our job description. Job performance is highly correlated with our general mental ability, our ability to think and reason, and communication. How we are treated in an organization can have a positive (treated fairly) or negative (treated unfairly) impact on our job performance. Our stress levels also affect our job performance – during times of high stress, our job performance might fall. As mentioned above, job satisfaction has a moderate impact on our job performance. Finally, our personality can affect our job performance – people who are organized, reliable, conscientious, and achievement-oriented seem to have higher job performance.

The second key behavior is citizenship, or Organizational Citizenship Behaviors (OCB). OCB are the voluntary behaviors we perform to help others and benefit the organization. With citizenship behaviors, we help others around us if we feel motivated to do so. When we are in a high-quality relationship with our peers, manager, or organization, we feel obligated to help those around us. One's personality can impact OCB; people who are conscientious and have positive attitudes tend to perform citizenship behaviors more often than others. Our attitude also affects OCB. Happy people tend to display more citizenship behaviors, while unhappy people disengage from their organization and rarely put effort into citizenship behaviors. Finally, as we age, we tend to display more citizenship behaviors.

The third key behavior is absenteeism, or unscheduled absences from work. Absenteeism can be a huge cost for an organization. Some absenteeism is related to health issues; providing wellness programs and encouraging healthy behaviors – including a good work/life balance – can help organizations reduce health-related absenteeism. Poor work attitudes can also lead employees to be absent. Determining the root causes of these poor attitudes and correcting them can again help an organization reduce absenteeism. Finally, age has been shown to predict absenteeism; interestingly, age is actually negatively related to the frequency and duration of absenteeism. Older workers might have a stronger work ethic or a higher organizational commitment than younger workers.

The fourth key behavior is turnover, when an employee leaves an organization. Turnover can be costly as it requires an organization to recruit, hire, and train new workers. Turnover of high-performing employees is particularly difficult; however, if a poor performer leaves the organization, an opportunity exists for the organization to improve productivity. To reduce turnover of high-performing workers, organizations can use many factors discussed above – creating job satisfaction and organization commitment, developing good work/life balance, and reducing stress in the workplace – all these factors could help keep turnover to a minimum.

Behaving professionally at work is a key attribute for employees. Arriving on time, or early, for appointments or the work day is important. Likewise, not sprinting to the door at 5 p.m. is also important. If you can, remain for a few minutes to finish your emails, straighten your work area, or create your To Do List for the next day. These activities show your commitment to your work. While the COVID pandemic has led to more casual work attire, particularly when you telecommute, be sure to return to professional dressing and hygiene when you return to the workplace. Keep your workspace organized and neat. What is your reaction when you walk into a colleague's office to ask for a document and see piles and piles of paperwork everywhere? Are you confident the colleague will find the document you need? Respond to emails and voicemails promptly and professionally. Communicate effectively with your co-workers and always prepare for meetings.

To review, see Organizational Behavior and Professionalism in the Workplace.

1c. Examine how person-job fit and person-organization fit affect work behaviors and job satisfaction

• How does person-job fit affect work behaviors and job satisfaction?
• How does person-organization fit affect work behaviors and job satisfaction?
• How do generational differences affect satisfaction?

Person-job fit (P-J fit) is the relationship between a person's characteristics relating to the job or tasks performed at work. P-J fit can be broken down into two assumptions: demand abilities where the employee's knowledge, skills, and abilities match with their job requirements; supply-value fit occurs when the employee's needs, desires, or preferences are met by the jobs they perform. Research has shown that P-J fit positively relates to job satisfaction, quality of work life, and positive adjustments in new organizations.

Person-organization fit (P-O fit) is the compatibility between individuals and organizations. P-O fit can be divided into two main types: supplementary fit occurs when the individual possesses attributes that are similar to those of other members in the organization; complementary fit occurs when an individual's characteristics add something new to fill a gap missing in the organization. In contrast to P-J fit, P-O fit is mainly concerned with organizational-level outcomes rather than personnel outcomes.

Organizations today are composed of multiple generations of people: baby boomers, generation X, generation Y, and even generation Z. Each of these sociological groups has been affected by different social, economic, and political conditions. As a manager, it's important to understand how each generation defines job satisfaction. In a recent study, researchers looked at how generation X and generation Y perceived job satisfaction. According to these researchers, generation X people find work very important; they are conscientious and hard workers who may experience an imbalance between work and personal life. The job satisfaction of generation X depends on success at work, high position, and work image. Generation Y people are better educated, particularly in technological progress. They also attach greater importance to the quality of life. Generation Y can communicate well through technology but have more difficulty with face-to-face conversations. This weaker relationship with colleagues can impact their job satisfaction as generation Y workers strive to become a member of a dedicated and motivated team and work with positive managers who provide them with regular feedback.

To review, see Job Satisfaction of Generations X and Y Workers and Matching Employees With Jobs.

1d. Compare decision-making models (rational, intuitive, creative, or using the P-O-L-C framework) for individual and organizational decision making

• What is the P-O-L-C framework?
• How do programmed decisions and nonprogrammed decisions differ?
• How might we use the rational, bounded rational, intuitive, and creative decision-making models to make decisions?

The P-O-L-C framework focuses on the four major functions of management: Planning, Organizing, Leading, and Controlling. Within each of these four management functions, decisions must be made for the organization. Planning entails making decisions on the organization's vision and mission, setting goals, and determining the actions necessary to achieve those goals. In the organizing function, we must decide our organizational structure, our resource allocation, and our job design. In leading, we must decide our leadership style and direction, how to motivate our employees, and how to coordinate and communicate with our employees. Finally, in the controlling function, we make decisions that involve our processes and standards; we must review and evaluate what we have done to take corrective action.

Not all decisions we make require a lot of time or major consequences. What to wear each day to work, whether to drive or take the bus to work, what to do in the evening after work – we can make these decisions quickly with very little consequence. These types of decisions are called programmed decisions. In dealing with the P-O-L-C framework, however, many of our business decisions can require substantial time and can have serious consequences. These types of decisions are called nonprogrammed decisions. With nonprogrammed decisions, we have different models of decision-making from which to choose: rational, bound-rational, intuitive, and creative.

The rational decision-making model provides formal steps to consider if your goal is to make the best possible choice: identify the problem, establish decision criteria, weigh decision criteria, generate alternatives, evaluate the alternatives, choose the best alternative, implement the decision, and evaluate the decision. Establishing decision criteria and generating many alternatives are two key steps in this model. While the rational model might look easy, rarely are people able to generate all possible alternatives or can make optimal decisions.

To account for the disadvantages in rational decision-making, the bounded rational model allows people to limit their options to be more manageable and to choose the best alternative without conducting an exhaustive search for alternatives. When you purchase a new cell phone, do you look at every cell phone on the market and compare features across all the models? Or do you choose 2 or 3 models to make your comparison? The first example is a rational model – and could take months to evaluate all cell phone models. The second example is a bounded rational model – you choose 2 or 3 cell phones with which to make your comparison. Your decision takes less time and effort.

In the intuitive decision-making model, people rely on their experience, training, and knowledge to evaluate one option at a time. Intuitive decision-makers have a mental model they follow: they think through the first option, and if that option will not work based on their mental model, they think through the next option. If that option will not work, they think of another option. This mental processing continues until the decision-maker identifies a workable solution – that solution is then implemented. Can you see that only people with experience, training, and knowledge in their field can use this model?

The creative decision-making model focuses on the generation of new, imaginative ideas. You only have to watch episodes of Shark Tank to see how creative entrepreneurs are in developing new and imaginative products. But can anyone be creative? Brainstorming can be used to generate a lot of ideas. Idea quotas can be used alone or in conjunction with brainstorming to ensure many ideas. In wildstorming, people look at impossible ideas and then imagine what would happen to make the idea possible. Do you think the first airplane, the first electric car, or the first cell phone resulted from wildstorming?

To review, see Decision Making in Management.

Unit 1 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• absenteeism
• attitudes
• bounded rational decision-making model
• brainstorming
• complementary fit
• creative decision-making model
• demand abilities
• general mental ability
• idea quotas
• intuitive decision-making model
• job performance
• job satisfaction
• nonprogrammed decisions
• Organizational Citizenship Behaviors (OCB)
• organizational commitment
• P-O-L-C framework
• person-job fit (P-J fit)
• person-organization fit (P-O fit)
• personality
• programmed decisions
• rational decision-making model
• supplementary fit
• supply-value fit
• turnover
• values
• wildstorming

Unit 2: Motivation

2a. Apply theories of motivation (job-oriented, behavior-oriented, cognition-oriented, and needs-oriented) to inspire and motivate individual employees and groups in a variety of work situations to achieve high performance in organizations

• Why is motivation so important to an organization?
• How can you use different models of motivation to motivate people?
• Is there one best way to motivate others?

Through research, we know that motivated employees look for a better way to complete a task, are more quality-oriented, and work with higher productivity and efficiency. Thinking back to Unit 1, can you see how motivated employees might increase employee satisfaction and commitment to the organization? Motivated employees might also lead to less absenteeism and lower turnover!

Needs-oriented motivation theories provide fulfillment of various human needs. These human needs can be as simple as providing food for a family to as complex as helping an employee with self-esteem and confidence. The most well-known of the needs-oriented theories is Abraham Maslow's Hierarchy of Needs. Maslow felt that lower-level needs, such as food, water, and safety, must be met before a person can pursue the higher-level needs of self-esteem, confidence, and self-actualization. It should be easy to see that if an employee is homeless or lacks proper nutrition, they might be more interested in a salary increase rather than a seminar on boosting self-confidence. Atkinson and McClelland proposed the Need for Achievement Theory, these needs being achievement, authority, and affiliation. While everyone might have a need for all three of these needs to be fulfilled, one of them is usually stronger. Can you see that if a person has a high need for affiliation, he/she might be uncomfortable with competition among employees?

Cognitive-oriented theories tell us that people have a need for equitable compensation. The equity theory tells us that employees believe their experience, skill, and performance is equal to their perception of respective compensation and advancement opportunities. The expectancy theory is actually a calculation whereby Motivation = Expectation(∑ Instrumentality ⨉ Valence). Instrumentality is the belief that a level of performance will result in a level of outcome, and valence refers to the value of that outcome. What do you think happens to an employee's motivation when he/she believes their hard work is not resulting in compensation or a promotion?

Behavior-oriented theories, sometimes referred to as Reinforcement Theory, come from the psychological idea of conditioning. You may have heard of the experiments that Ivan Pavlov did with dogs; he trained dogs to begin salivating when they heard a bell ring just as they were being fed. Quickly, the dogs learned to salivate (a conditioned response) when the bell rang, whether they were fed or not. In this theory, then, managers try to promote positive behavior and deter negative behavior. Paying people by commission can create a conditioned response of the employee working harder. Promoting employees and increasing their pay for good performance can also create a conditioned response throughout the organization.

Job-oriented theories contend that employees are innately driven to contribute to the organization and that compensation and other incentives are less important. Herzberg's Two-Factor Theory is built on the idea that hygiene factors, or tangible benefits (salary, benefits, status, for example), only reduce employees' dissatisfaction and that motivators, and intangible benefits (autonomy, recognition, and responsibility, for example) are satisfiers. Do you think that Maslow's Hierarchy and Herzberg's Two-Factor Theory have some commonality?

Looking at these four categories of motivation theories, you can likely assume that there is no one best way to motivate your employees; each employee might respond to different motivators based on their individual differences. However, if we can understand our employees' motivators, we can provide the type of motivator that best meets their needs.

To review, see Motivating an Organization and Motivating Employees.

2b. Utilize a system that includes performance appraisals and feedback as tools for employee development and to improve job performance 

• What tools are available for performance appraisals?
• What are the advantages and disadvantages of each method?
• Knowing that no one system is perfect, how can you combine appraisal methods to ensure the goals of the employee and the organization?

Many appraisal methods have been developed to help managers review the performance of the employees: graphic rating scale, essay, checklist scale, critical incidents, work standards approach, ranking, Management by Objectives (MBO), and Behaviorally Anchored Rating Scale (BARS). Each of these methods has advantages and disadvantages, and each of these methods might be appropriate for different work situations. In thinking about a performance appraisal system in your organization, consider how often the performance appraisals will be given, whether pay increases should be tied to performance appraisals, what goals the organization hopes to achieve with performance appraisals, and who should evaluate the performance of the employee.

Errors can occur when choosing or implementing a performance appraisal system. Keep these errors in mind as you develop or change an appraisal system in your organization. The halo effect occurs when the appraiser feels one aspect of the job is high or low and then rates all performance as high or low. Validity issues can occur if you do not measure the key skills and responsibilities of the job. Reliability issues can occur if two or more raters do not rate one employee the same – your rating system may not be written specifically enough to create reliable results. Acceptability occurs when employees accept the performance appraisal system as a valid measure of their performance. If the appraisal system is not acceptable to employees, you will likely get flawed results. Finally, the specificity of the appraisal systems lets employees know the job expectations and how those expectations can be met. If you use an appraisal system that is not specific enough, determining employee development and communicating expectations to the employee can be difficult.

To review, see Performance Appraisal.

2c. Recommend incentives and rewards to inspire high performance in teams 

• Why are incentives and rewards important in our organizations?
• What are systems we can use to determine pay?
• What are common forms of incentives and rewards to offer to employees?
• How might you determine the best incentive and reward plans?

Job satisfaction and organizational commitment are strong attributes for organizations. In addition to incentives and rewards helping to build job satisfaction and organizational commitment, they also help tie rewards to good performance – as evidenced by the Expectancy Theory. Rewards and incentives can also reduce absenteeism and turnover. Finally, potential employees can be influenced to join an occupation and/or an organization based on the rewards.

Obviously, how you pay employees can be an incentive and a reward if that employee values increased pay. You have several methods with which to establish pay. Some organizations, especially government agencies, use pay grade levels. Once pay grades are set, all employees earn the same pay as others in their grade. While this system could be a fair pay method, it may not have the motivating effect you desire with your employees. You can also use the going rate model, where considerations such as the going rate and the specific job pay at a particular point in time is considered. Supply and demand in the labor force greatly affect the going rate. Many industries provide salary and hourly pay rates common in that industry.

Beyond pay, how can you motivate employees with incentives and rewards? A broad category consists of benefits – non-pay benefits you can offer to your employees. Some benefits, at least in the United States, are mandated by law: Social Security, Medicare, Unemployment Insurance, Workers' Compensation, and Consolidated Omnibus Budget Reconciliation Act (COBRA) – which requires organizations to allow their employees to extend their medical benefits through the organization if the person is terminated and has reduced hours.

Other benefits you offer to your employees are voluntary on your part. These benefits might include incentive pay systems, such as a commission plan, stock options, employee stock ownership plans, merit pay, and bonuses. Beyond pay benefits, you can offer medical insurance, disability insurance, 401(k) retirement plans, paid time off, paid holidays, sick leave, and paid vacation.

When determining the elements of your incentive and reward systems, how might you decide? Certainly, you need to consider the ability to recruit and retain valuable employees. However, you also need to consider what your workforce would find valuable; talk with the employees to see what they care about. The incentives and rewards you offer might differ among employees – older workers might be more interested in retirement benefits, while younger workers may care more about paid time off. Certainly, the incentives and rewards you offer will be impacted by the age or generation of your employees. As Baby Boomers (those born between 1946-1964) continue retiring, Millennials (those born between 1981-2000) will make up an increasing number of your workforce. Knowing what these Millennials value as incentives and rewards will be crucial to your recruitment and retention plans.

To review, see Reward Systems in Organizations, Compensation, Compensation and Benefits, and Positive Employee Relations with Millennials.

Unit 2 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• acceptability
• behavior-oriented theories
• Behaviorally Anchored Rating Scale (BARS)
• checklist scale
• cognitive-oriented theories
• Consolidated Omnibus Budget Reconciliation Act (COBRA)
• critical incidents
• equity theory
• essay
• expectancy theory
• going rate model
• graphic rating scale
• halo effect
• Herzberg's Two-Factor Theory
• hygiene factors
• job-oriented theories
• Management by Objectives (MBO)
• Maslow's Hierarchy of Needs
• motivators
• needs-oriented motivation
• pay grade levels
• ranking
• reliability
• specificity
• validity
• work standards approach

Unit 3: Business Communication

3a. Examine methods to successfully communicate with people in writing, orally, non-verbally, and digitally based on the communicator's role, the work situation, organizational culture, and organizational goal 

• How do the concepts of encoding, decoding, noise, and feedback affect our communication?
• What are the major influences on interpersonal communication?
• How does nonverbal communication affect our communication?

Powerful interpersonal communication influences our workforce, expresses our intentions to others, provides and exchanges important information, and uses formal communication to reinforce the goals of our organization. Errors in the communication process can affect our entire organization. Any message we give is first encoded through either verbal or written communication. Our message is then decoded by the recipient. Finally, the decoder provides feedback to the encoder; feedback can be non-evaluative, corrective, or reinforcing. When messages become distorted, noise has occurred. Noise can occur at any time in the communication process.

Because communication occurs between at least two people, many factors can affect the quality of communication. Social influences, such as status barriers, norms, and roles within an organization, can dictate who speaks to whom and when. Perception can also affect the quality of the communication; how the decoder perceives the encoder can affect the noise in that communication. How involved both parties are in the conversation is called interaction involvement. If either person is preoccupied, for instance, the effectiveness of the communication is diminished. Organizational design affects communication; if communication must go through many levels of managers (such as in a hierarchical design), noise can occur. A more flat organizational design can lead to more participative employees, leading to more effective communication.

Nonverbal communication is as important to communication as written or verbal communication – more important, perhaps. Nonverbal communication happens continually, and nonverbal communication is permanent. You cannot retract nonverbal cues like you can with written or verbal communication. Nonverbal communication consists of space, time, physical characteristics, body movements, touch, paralanguage, artifacts, and environment. Take time to analyze your own nonverbal communication to determine what you are silently conveying to others.

To review, see Types of Communication, Managerial Communication, and Nonverbal Communication.

3b. Explain practices in daily interactions, selection of communication channels, approaches to the direction of the communication, and levels of authority that build rapport with personnel to foster leadership in organizations 

• How can we use the direction of our communication for effective communication?
• How might our communication channel affect the type of communication we provide?
• How can we use communication to build rapport with our boss(es)?

Communication can be downward (to our subordinates, upward (to our superiors), or horizontal (peers at the same level in our organization). Downward communication is usually one-directional and is used to share information with lower-level employees. Examples of downward communication include policies and procedures, organization mission and vision, and handbooks. It's important in downward communication that you understand your audience – particularly their experience, knowledge, level of authority, and status. To ensure more effective downward communication, write or speak clearly and respectfully, using non-ambiguous language. Upward communication, which could include proposals, complaints, reports, and grievances, is an important source of information for managers. Communication within a team or between organizational divisions are examples of horizontal communication. While horizontal communication can be more timely, direct, and efficient than downward or upward communication, horizontal communication requires that peers are not territorial.

Channels of communication are the various ways in which we send information, which include face-to-face conversations, videoconferencing, telephone, written letters or memos, emails, or digitally. Knowing the appropriate channel to use in your communication can have an impact not only on your goal for the communication but on the relationship you have with the audience. Would you fire an employee through a text message? We usually use written communication to convey facts, to keep the information as a permanent record in the organization, when time is not urgent, when feedback is not urgent, and when the ideas are complicated. Verbal communication works well when we need to convey emotion and feelings, the message does not need to be a permanent record when there is time urgency, when you need immediate feedback, and when the ideas are relatively simple.

Managing your boss is not about getting your boss to accept a proposal or report, it is about building trust with your senior leadership to achieve the organizational mission. Keep these tips in mind when you are communicating with/managing your boss: (1) take solutions, not problems; (2) solve your boss's problems, not your problems; and (3) use the One Challenge Rule. Rather than disagreeing with, or arguing with your boss, show or tell your boss why your solution is good for the organization. If your boss disagrees again, move on and implement what the boss decides.

To review, see Communicating with Precision and Delivering Your Message.

3c. Use communication strategies and frameworks to affect business strategy 

• How can understanding models or frameworks of communication inform our communication strategies?
• In what ways do the models of communication – linear, interactive, and transaction- differ?
• How is the digital era affecting the relationship and communication between leader and follower?

Understanding communication models helps us see specific concepts and steps within the process of communication, define communication, and apply communication concepts. As we become aware of how communication functions, we can think more deliberately through our communication endeavors and prepare for effective communication. The first model of communication is the Linear Model. In the linear model, communication is handled in a one-way direction; that is, from the person communicating to the person being communicated to. The main focus of a linear model of communication is to ensure that the communication message is sent. The communicator assumes that if the message is sent – such as a radio or TV advertisement – the message is also received. This model of communication is focused solely on the message. Feedback between the person sending the message and the person receiving the message is not considered. Do you think that, in our modern organizations, written communication such as policies and procedures, handbooks, and meeting minutes use the linear model?

The second model of communication is the Interactive Model, which adds the element of feedback between the sender of the message and the receiver of the message. In this model, the sender can become the receiver and vice versa. This switching of roles often happens effortlessly. Another key difference between the linear model and the interactive model is how the physical and psychological contexts affect communication in the interactive model. Have you ever found yourself in a meeting in a warm office, struggling to remain alert? As you study for this course, perhaps in your bedroom, do you ever think of taking a quick nap? The physical space in which communication happens is important and must be considered in this communication model. In terms of psychological contexts, can your communication be affected by emotions, stress, tension, or happiness? So with the interactive model, we are adding elements of uncertainty to our communication – feedback, physical contexts, and psychological contexts.

The transaction model of communication adds more complexity to our communication process. In this model, we communicate to create relationships, form alliances, shape our self-concepts, and create communities. Unlike the interactive model, where the sender and receiver can reverse roles, in the transaction model, the sender and receiver are both simultaneously. Have you ever been typing a text message to a friend when you get a text from that friend adding new information? Did you change the content of your message before sending it back? If so, you were simultaneously a sender and a receiver. More importantly, to understand, you are now adapting your communication to real-time, based on new information. The transaction communication model also goes beyond physical and psychological contexts to include social, relational, and cultural contexts. These additional contexts make effective communication even more difficult.

As you think about these different communication models, also think about how modern organizations are now operating – fewer levels of management, more blurring of leadership roles, how millennials pTo review, see work, and the digitization of the workplace. How you communicate in your organization is going to have a profound effect both on your organization and your workforce.

The digital era has fundamentally changed the relationship between the leader and the follower. Where once organizations were based on formal hierarchies, with bosses and subordinates, followers today behave as leaders in the virtual organization. This change in the role of leader/follower is the result of several contextual factors: (1) physical reality is now virtual reality – physical attributes of leaders are no longer necessary; (2) human interactions have moved from face-to-face communication to electronic communication; (3) digitization and automation have eliminated numerous management positions; (4) employees today must develop new technical and soft skills, almost on a daily basis, to remain competitive in the job market; (5) digital communication has lead to feelings of isolation, language barriers, cultural differences, and technological breakdowns; (6) the roles of leader and followers has changed – followers have the opportunity to lead in this digital era; and (7) employees who have grown up in the digital era speak a different language and represent a different culture than those employees how had to learn the skills of the digital era – leading to generational tensions and challenges in communication.

To review, see Communication Models and Digital Leadership.

3d. Classify audience traits such as beliefs, ethnicity, language, values, psychological attributes, and demographics to ensure effective message delivery 

• How can analyzing our audience help us communicate effectively?
• How might I conduct an audience analysis?

Communication professionals often segment audiences by demographic, geographic, and psychographic characteristics. Knowing who your audience is should lead to more successful communications. Demographic characteristics to know about your audience can include age, gender, nationality, religion, income, sexual orientation, education, and income. Communicating to a group of people over 60 would require a different message than to a group of teenagers, for example. Geographic characteristics can also help define our message. People in different parts of the world communicate differently; knowing and applying those differences to your communication will more likely lead to successful communication. A person's values, desires, goals, interests, and lifestyle choices make up psychographic characteristics. All three of these characteristics help us to define and better identify our audience's needs when it concerns communication.

In an audience analysis, we gather information to better understand the audiences' wants, needs, desires, expectations, beliefs, values, attitudes, and opinions. Sometimes an audience analysis can be done quickly; you probably know at least some of this information about your co-workers and can easily tailor your message to this audience. In some cases, particularly if your communication goes beyond people in your organization, an audience analysis can take time. Organizations exist that can provide you with demographic, geographic, and psychographic information that will help you understand this broader audience.

To review, see Audience Analysis and Audience Segments: Psychographics.

3e. Determine how the audience and the communicator are affected by perception, interpretation, and the organization of communications 

• How does perception occur?
• What influences our perception?
• What are some common tendencies of perceptions?

Perception involves selection, organization, interpretation, and negotiation – as it relates to business communication. In selection, we decide what we are going to pay attention to. We are constantly exposed to sights, sounds, smells, and other stimuli; with all of these stimuli, what will we focus on? In organization, we broadly categorize items into groups we understand. In interpretation, we begin thinking about how we feel about what we are seeing. If we categorized an animal as a dog, how do we feel about dogs? If you have good memories of dogs as you were growing up, you might have positive feelings; if you were bitten by a dog, you might have negative feelings. In negotiation, we begin working with, or influencing others, on their interpretations.

Perception can be influenced by many factors: access to information; physiological influences like our five senses, age, health, hunger, mood, and self-concept; social influences such as gender roles, occupational roles, and relational roles. Can you see that presenting a high-level business process to an audience that is tired or hungry might influence their perception of your topic?

While our perception helps us understand the world around us better, our perceptions can also be detrimental. Snap judgments of how we organize and interpret information can harm others; likewise, first impressions can be harmful. The idea that we are more charitable toward ourselves – we are smart, but the professor just asked stupid questions – is very common. We also use perception to stereotype others, particularly in terms of gender roles and occupation roles.

To review, see Overview of Perception and Process of Perception.

Unit 3 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• artifacts
• audience analysis
• body movements
• decoded
• demographic characteristics
• downward communication
• encoded
• environment
• feedback
• geographic characteristics
• horizontal communication
• interaction involvement
• interactive model of communication
• interpretation
• linear model of communication
• negotiation
• noise
• organization
• organizational design
• paralanguage
• perception
• physical characteristics
• psychographic characteristics
• selection
• social influences
• space
• time
• touch
• transaction model of communication
• upward communication

Unit 4: Managerial Human Capital

4a. Explain how viewing people as part of the human capital of the firm adds value to the organization in terms of talent management and competitive advantage 

• How does investing in human capital add value to an organization?
• How can we implement talent acquisition and development to gain a competitive advantage?
• How does succession planning provide a bridge between talent development and talent acquisition?

Investing in human capital can be done in many ways: improving working conditions, improving health conditions, or investing in corporate education and programs, to mention a few. Investing in human capital should bring results such as an increase in productivity, a decrease in absenteeism and turnover, and an increase in worker commitment to the organization.

Investing in our human capital is essential for a successful organization. As you have learned in earlier units in this course, not only are job satisfaction and workplace commitment important, but the workplace is changing rapidly based on the needs of generation X and millennials. Flattening our organizational structure also requires human capital investment to ensure we have employees who are flexible in their thinking, who are quick to learn new skills, and who are interested in building relationships and community in the workplace. But where do we find these employees?

Talent acquisition refers to the area of human resource management responsible for the recruitment and hiring of our human capital. Hiring key leadership people is crucial to adding value and creating a competitive advantage for our organization. The current leaders in the organization and human resources must work together to develop a recruiting plan and process. The first step in the process is to anticipate needs – how many people do you need, and in what positions, in the next few years? The next step is to specify the job – what skills and knowledge are necessary, and what support resources are necessary for this position? The third step is to develop the pool – traditional recruitment models might work, but also ask suppliers, trusted insiders, or even professional service providers to help. The fifth step is to assess the candidates through the interview process. Once a candidate is selected, the next step is to close the deal – sharing your passion for the organization, what your organization does well, and providing a creative salary and benefits package can help. The final step is to integrate your new hire into the organization. Providing a mentor can be very helpful at this point.

Talent development is all the processes and programs an organization uses to assess and develop talent. In terms of talent development, we are not discussing routine safety training programs or training in the latest compliance rules. Talent development is engaged in having a plan to develop key talent within the organization. One of the key tools used in talent development is talent review. A talent review assesses the future potential of your current key employees. Higher-potential employees often display business knowledge, strategic thinking, leadership and people skills, learning agility, and technology skills. A talent review provides an indication of which employees are not yet ready to advance in the organization, which employees are close to ready, and which employees are currently ready to advance. Identifying high-, medium-, and low-potential employees will also help the organization determine any gaps or issues with talent development.

Because you have identified potential among employees in your talent review, you can use this information for succession planning. Succession planning is the process of reviewing key roles and determining the readiness levels of potential internal and external candidates to fill these roles. Succession planning, particularly in key leadership positions, helps to ensure we have the appropriate talent necessary to benefit the organization.

To review, see Investing in Human Capital.

4b. Explain the forces (such as technology, business processes, workflow, skills gaps, generational changes, and talent development) that impact enterprise decision-making in managing human resources 

• How are organizations changing?
• What changes in the workplace are affecting organizations the most?
• How can organizations respond to this dramatically changing workplace?

Based on an international survey, 45% of respondents say that employees are working in more diverse teams; 68% say employees are working with virtual technologies; 55% say collaboration and social media tools are more often key to working; and 44% say employees are working primarily using mobile devices. As you can see, the workplace has transformed dramatically from a decade ago, and business agility and continuous learning are key to workforce and organizational success.

The nature of how people work is also changing, requiring that the systems they use in the workplace must also change. Employees are using more self-service to do their work; for example, instead of waiting for data to flow down from top levels of management, employees can access dashboards to gain real-time data. Employees are tracked using real-time performance measures. Finally, employees have more and more flexibility about where and when they work. What human resource processes do you think are changing to accommodate this changing workplace?

You learned in previous units how generational differences, Baby Boomers versus Millennials, can affect everything from work practices to communication styles to motivation. Today's workers are less loyal to their organizations and emphasize well-being in their workplace. Contingency workers, rather than permanent workers, are increasing.

On the other side, employers are concerned about skills gaps and finding workers with the right skills. In particular, organizations have skill gaps in digital skills, soft skills, leadership and management skills, and sales skills. Employers also indicate they need new and better approaches to talent management; you know from the previous subunit that talent acquisition, talent development and management, and succession planning are key drivers for a successful organization. Reasons given for organizations not engaging as much in talent management are lack of investment and a business culture that does not emphasize talent management. One disturbing result is that survey participants indicated they have "other priorities". The inability to look 2-3 years in the future and put into place talent management systems can have a detrimental effect on the competitive advantage of an organization.

According to the survey respondents, the top 5 tools necessary for the future success of talent management are employer brand and values, high-quality data and analytics, next-generation technologies, closer integration between HR and business systems, and strategic influencing skills in HR leadership.

To review, see [4.2 Transforming Talent].

4c. Examine ethical principles (fairness, role modeling, role clarification, concern for sustainability, and integrity) as well as how to enforce legal obligations (non-discrimination, safety laws, equal pay, religious tolerance, etc) to manage people and execute corporate social responsibility 

• What is ethical leadership?
• Does equal opportunity mean treating everyone the same?
• Is there a difference between acting morally and acting ethically?

Businesses performing "unethically" are often in the news: Enron, WorldCom, and Wells Fargo, as examples. What's important to understand is the difference between "legal" and "ethical". Some actions taken by organizations may be legal but not ethical to some or all of their stakeholders.

Prejudice and discrimination are still real in this world: racism, sexism, ageism, and homophobia. Prejudice and discrimination are learned processes; we learn prejudiced attitudes and beliefs from society: our parents, teachers, friends, the media, and even social media.

Many laws in the United States exist in an attempt to enforce legal obligations to employees, including the Age Discrimination in Employment Act (ADEA) and the Americans with Disabilities Act (ADA). Additionally, organizations cannot discriminate based on national origin, pregnancy status, race/color, or religion.

To review, see Business Ethics, Workplace Environment and Working Conditions, and Ethical Leadership.

Unit 4 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• Age Discrimination in Employment Act (ADEA)
• Americans with Disabilities Act (ADA)
• succession planning
• talent acquisition
• talent development
• talent review

Unit 5: Leadership

5a. Categorize behavioral styles such as laissez-faire, autocratic, democratic, transformational, transactional, or charismatic and models of situational leadership using the contingency approach

• Why is it important to understand the different behavioral styles of leadership?
• How do the behavioral styles of leadership differ?
• What are some emerging theories of leadership that might be effective in our rapidly-changing workplaces?

Many styles of behavioral leadership exist. Behavioral style refers to the way in which leaders lead their team or organization. What is important to remember is that no one style or theory is the best; what works best is dependent on the leader, the situation, and the employee. However, understanding these styles and theories provides a framework whereby leaders can build different leadership styles that meet the needs of their organization and their employees.

Some leadership styles keep power within the leader. Autocratic leaders make all the decisions and do not entertain suggestions or initiatives from employees. Opposite to autocratic is laissez-faire leadership, where the leader lets employees decide their policies and method of work. In between these two styles, you have democratic/participative leaders who share decision-making authority with employees.

Transformational leaders focus on increasing employee motivation and engagement. They focus on the individual strengths and weaknesses of employees to enhance their commitment to organizational goals. Transformational leadership, then, works with the ideas of job satisfaction and organizational commitment – two key ideas you have studied throughout this course. Transactional leaders, on the other hand, are task- and outcome-oriented. They work within the organizational goals and performance measures and use punishment and reward to motivate. Transformational and transactional leadership are not mutually exclusive leadership styles – they can and have been used in what is referred to as the full-range theory of leadership, which blends the best aspects of transactional and transformational leadership into one approach. An example of the full-range theory can often be seen in sports coaches, who must work within a defined space of the rules and regulations of the sport but also must find a way to motivate and engage the players to work as a team toward a common goal.

The contingency approach to leadership studies how leaders can change their leadership style based on the needs of the employees and the specific situation that is occurring. Some major contingency theories include: The Fiedler situational contingency model uses the least preferred co-worker (LPC) test whereby test takers rate the various traits of their LPC. However, this test is not about the LPC but helps leaders understand how their employees react to those they do not like working with. The Hersey and Blanchard situational leadership theory is focused on the appropriate leadership style of the task behavior of followers and the maturity level of followers. The theory posits that followers who have little knowledge of a task need more direction from the leader and that followers who are less confident in completing their task need a different leadership style than those followers who have the skills and confidence to take ownership of the task. Can you see the relationship between the Hersey and Blanchard theory with autocratic and laissez-faire leadership styles?

Two additional contingency approaches to leadership include House's Path-Goal theory and the Vroom-Yetton-Jago model of leadership and decision-making. The role of the leader in the Path-Goal theory is to help followers define their goals, understand organizational goals, and find a path to reach both. House defined four leadership styles to help followers based on the specific situation: directive, achievement-oriented, participative, and supportive. As a decision model, the Vroom-Yetton-Jago model is a decision tree that helps leaders determine how to make the best decision regarding how participatory the followers need to be.

Newer leadership styles are emerging based on the changing workforce and workplace. Emotional leadership is used to influence followers toward a common goal. This leadership style requires charismatic leadership traits and high emotional intelligence on the part of the leader. In interactive leadership, the goal is to help followers understand the different aspects of the organization to engage them in the organizational goals. Ethical/moral leadership involves leadership that respects the rights and dignity of others. In the servant leadership model, the leader focuses on the growth and well-being of the community – whether that community is a project team or the entire organization. Shared leadership or Distributed leadership distributes leadership responsibility so that people within a team and organization lead each other. E-leadership depends on social influences within a dispersed team, such as a virtual team, to reach organizational goals.

To review, see Everyday Leadership, Understanding Organizational Behavior, and What It Takes to Be a Leader.

5b. Examine theories and traits of leadership such as Theory X and Theory Y, modern trait theory, behavioral theory, contingency theory, and full range theories

• How do leadership styles and leadership theories differ?
• How do trait theory, contingency theory, behavioral theory, and full-range theories help to inform our leadership?

In the previous subunit, you learned about the many different leadership styles that leaders can use. Remember, a leadership style is how a leader approaches the leadership of a team or organization. A leadership theory is broader in that it refers to the strategies and philosophies that leaders use to guide their team or organization. While there are differences in leadership style and leadership theories, many times, these terms are used interchangeably. What is key is that no one leadership style or theory is best or works in every leadership situation.

Historically, trait theory was based on the physiological and demographic traits of leaders (gender, height, weight, age, socioeconomic background, education, etc.); research in modern trait theory, however, reveals that significant leadership traits are intelligence, adjustment, extroversion, conscientiousness, openness to experience, and general self-efficacy. Theory X and Theory Y are based on the research done by Douglas McGregor. In the Theory X approach to leadership, the leader/manager assumes that most people do not like work. Employees are perceived as needing to be led and told what tasks to do and how to do them. Theory Y leaders/managers assume that people seek inner satisfaction and fulfillment from their job. They like to participate in and provide input into both personal and organizational goals. Have you had a superior who believes Theory X or Theory Y about his/her employees?

Contingency theory assumes that different situations require different leadership skills, and no single leader profile exists. Behavioral theory suggests that leadership requires a strong personality with a well-developed positive ego. Finally, the full-range theory posits that four qualities are necessary for leaders: individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence. Again, what these theories provide for us is a framework by which we can consider leadership strategies.

To review, see Four Theories of Leadership and Leadership and Organization.

5c. Compare the characteristics of trustworthy leaders (fairness, role models, trust in followers, passionate, inspirational, align values and actions) to those of untrustworthy leaders (narcissistic, abuse power, irrational, disagreeable, dishonest, and careless) 

• How can destructive leadership negatively impact employees?
• What are the characteristics of toxic leaders?

In the Three Nightmare Traits (TNT) in Leadership, you learned that three traits are particularly destructive in organizations. Leader Dishonesty can be problematic in an organization because it may induce, encourage, and/or exacerbate an unethical culture with low trust, satisfaction, and high turnover. The consequence of leader dishonesty can range from negative consequences for individual employees and teams to negative consequences for the entire organization's performance. Enron, Worldcom, and Wells Fargo are examples of organizations where the consequences of leader dishonesty were vast.

Leader Disagreeableness is the tendency of a leader to be unforgiving, overly critical, inflexible, and impatient. Leader disagreeableness can induce fear and retaliation, leading to job dissatisfaction, turnover, and costs associated with conflict management mediation or even lawsuits. Other conditions, such as despotism, abuse, autocratic/authoritarian, destructive, and tyrannical, often occur in leader disagreeableness.

Leader Carelessness is the tendency for the leader to be sloppy, lazy, negligent, and impulsive. These characteristics can lead to an accident-prone culture in which rules and regulations are disregarded and industry standards are violated. This can lead to a culture where low, instead of high, performance is the norm.

While much of your work in this unit concerns the positive aspects of leadership, toxic leaders build a culture of distrust, conflict, fear, and anxiety. The characteristics of a toxic leader include: (1) they don't (or won't listen), (2) they are never wrong, (3) it's all about them and ONLY them, (4) they need to control everything, (5) they are too emotional, (6) they abuse their power, (7) they do nothing. As you have learned, leaders are responsible not only for themselves but for their followers as well. Toxic leadership in an organization must be dealt with quickly to lessen the stress, anxiety, and emotional exhaustion of the followers. If not dealt with quickly, toxic leaders can cause far more serious mental health effects and long-term stress, potentially on the entire organization.

To review, see Three Nightmare Traits in Leaders and Signs You Have a Toxic Boss or Leader.

5d. Assess the effects of leadership on human support systems and workforce planning to ensure employee well-being and achieve high organizational performance 

• How does workforce planning work in an organization?
• How is the digitization of the workplace affecting management and leadership?
• How are the roles of leadership, CEOs, and CIOs changing?
• What skills do e-leaders need to work effectively with virtual teams?

Workplace planning, done as part of the strategic, long-term plan of the organization, consists of 6 steps. The process begins with strategic planning so that the workforce planning process aligns with the strategic goals of the organization. Next, a current workforce analysis is done to analyze current resources, particularly in projections for training and development and turnover. Identification of future workforce requirements helps us develop specifications for the types, quantities, and locations of human resources. A gap analysis is then done to find gaps between the current workforce and the projected workforce needs. Once the gap is identified, action planning must occur, including plans for recruiting, training, reskilling, organizational restructuring, contracting/outsourcing, automation, and succession planning. Finally, execution and evaluation occur, where resources are secured and processes are monitored relative to organizational goals.

Through a meta-analysis of the literature, researchers have found that digital technology has forever changed the workplace. Digitalization is changing the shape of our organization, the work environment, and the processes in our organizations, creating new challenges for leaders. Workplaces are becoming increasingly digitized as many jobs now involve extensive use of technology and require the ability to exploit it quickly. Increased connectivity and information sharing are contributing to breaking hierarchies, functions, and organizational boundaries resulting in project-based activities where employees directly participate in creating new added value to the organization. Leadership is vital to managing and retaining talent by connecting and engaging with employees.

Some very interesting studies were discussed in this meta-analysis, with results that are important. One article suggests that future leaders base their organizations on three pillars: (1) assuring a highly connected and open working environment at any hierarchical levels and units in organizations, (2) engaging customers by gathering knowledge about the whole person, and (3) establishing more integrated and networked relationships with partners and competitors.

The role of CEOs in organizations is also changing. CEOs in the digital age assume the additional role of digital change agents and digital enablers and recognize the opportunities offered by new technologies. CEOs, who were once just the face of the organization, must now use social media to actively engage stakeholders across the organization's boundaries. The role of the CIO is also changing from fixing technology issues to being an active partner in digital strategy definition and implementation.

Because digital tools affect the design of the work and how people work together, leaders and e-leaders must learn to communicate effectively through digital media, make high-speed decisions, manage disruptive change and connectivity, and learn new technical skills.

Virtual teams have allowed us to remove organizational barriers to adding cultural diversity to our teams. But one of the biggest barriers to communication in virtual teams is the inability to read facial cues, facial expressions, and other non-verbal communication. One of the most important practices an e-leader must adopt is the setting and periodical revision of communication norms within the team. E-leaders must also choose the right communication tools to avoid disruptions in communication. While synchronous platforms like Zoom and Microsoft Teams are best suited for complex, interdependent tasks, asynchronous platforms may help team members with different backgrounds and in different time zones process others' ideas more effectively. A virtual leader must also have good cross-cultural skills and must ensure that diverse team members are understood, appreciated, and leveraged.

To review, see Building Trust in High-Performing Teams.

5e. Articulate the benefits of organizational trust and its role in conflict management and creating a collaborative culture 

• What is trust, and how can we build trust in an organization?
• How are organizations affected by low trust in leaders?
• How can you increase trust in your organization?

The components of trust include authenticity, real rigor in logic, and empathy directed toward others. If any of these components are missing, trust is threatened. Real empathy comes from removing distractors, whether the distractor is a cell phone or the busy lives we lead. Real empathy requires time to listen and feel what the other person is feeling. A failure in logic results from either the quality of your logic or your inability to communicate that logic. To communicate your logic effectively, begin with the main idea and follow that with your supporting evidence. Authenticity is about being yourself; however, society sometimes makes it difficult to be ourselves. As leaders, we must set conditions that make it safe for employees to be authentic. We must make authenticness celebrated in the workplace.

While you might assume that trust cannot be measured, a lack of trust in leadership can result in measurable metrics. If your team doesn't trust you, their effort beyond the bare minimum requirements will be low or non-existent. Your team might become less innovative. Teamwork with peers will suffer; without trust, employees will not share ideas and might be anxious and stressed. All of these conditions can lead to lower productivity and less profit.

To increase or develop trust in your organization: (1) honor every single commitment you make, (2) be appropriately yet scrupulously transparent, (3) authentically and loyally respect those with whom you interact, (4) tell the truth, (5) be a predictable leader; consistency is key, (6) be a competent leader by continuously developing and refining your leadership competencies,

To review, see Trust Underpins Organizational Effectiveness, How to Build (and Rebuild) Trust, and Listen, Learn, then Lead.

Unit 5 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• autocratic leadership
• behavioral theory
• contingency approach to leadership
• contingency theory
• democratic/participative leadership
• E-leadership
• emotional leadership
• ethical/moral leadership
• Fiedler situational contingency model
• full-range theory
• full-range theory of leadership
• Hersey and Blanchard situational leadership
• House's Path-Goal theory
• interactive leadership
• laissez-faire leadership
• leader carelessness
• leader disagreeableness
• leader dishonesty
• least-preferred coworker (LPC)
• modern trait theory
• shared/distributed leadership
• Theory X
• Theory Y
• Three Nightmare Traits (TNT) in leadership
• transactional leaders
• transformational leaders
• Vroom-Yetton-Jago model of leadership and decision making
• workplace planning

Unit 6: Managing Groups and Teams

6a. Determine the effects of authentic leadership on relational cohesion

• What is authentic leadership?
• Why is authentic leadership important?
• How can you instill a culture of authentic leadership in your organization?

Authentic leadership begins with the leader being honest about him/herself. Authentic leaders constantly practice self-awareness and self-regulation. Authentic leaders understand who they are by determining the advantages and disadvantages of their ego and trying to reduce the gap between them. Authentic leaders then strive to meet organizational goals based on genuine relationships with subordinates. Relational cohesion occurs when an employee perceives his/her relationship with team members as collaborative, close, and highly cohesive.

Through research on authentic leadership, we have found that authentic leaders are honest with themselves, are consistent, self-regulate, and positively affect employees' well-being. Second, the relationship among team members who perform tasks together is very important in addition to a team leader's authentic leadership, particularly for employees to feel hedonic (pleasant sensations through experiences of pleasure and enjoyment) well-being. Third, controlling for the factors of transformational and ethical leadership, this study found that authentic leaders can help their employees pursue true happiness. Fourth, individualism and collectivism show positive effects on employees' well-being.

Researchers in this study encourage organizations to go beyond leadership training that focuses on behavioral approaches for short-term performance. Instead, organizations must begin training leaders about individual authenticity and develop the qualities leaders need through self-awareness.

To review, see The Effects of Authentic Leadership on Employees' Well-Being and The Effects of Leadership Styles on Team Motivation.

6b. Explain why diversity is important to team and organizational success and the impact of discriminatory practices 

• What does, or will, a diverse workforce look like?
• How does a diverse workforce add value to an organization?
• How can we create a diverse workforce?

Historically a diverse workforce included race, gender, and religious differences. Now, however, diversity encompasses different thinking styles and personality types, along with other factors such as physical and cognitive abilities and sexual orientation. The Bureau of Labor Statistics projects from 2010 – 2050 that the workforce makeup in the U.S. in 2050 will look more diverse. Asian workers will grow from 5% in 2010 to 8% in 2050; Black workers will remain even at 12%; White workers will decrease from 85% to 75%, and all others will increase from 2% to 5%.

Diversity strengthens internal organization relationships with employees and improves employee morale. A diverse workforce builds better relationships with external customer groups. Studies show that organizations that adopt diversity policies do well financially. Differences in age, experience and country of residence may result in a more global mindset and cultural fluency that will help international businesses succeed.

Organizations that are committed to diversity, equality, and inclusion must take steps to make these values part of the organizational culture. Hiring practices should be structured to reduce bias. Mentoring relationships should be developed between employees who differ in terms of their status in the organization and society. Leadership strategies in the organization should be developed that support diversity. In her work on diversity, Bahati suggested that inclusive leadership – a leadership style that focuses on having the courage to break down barriers for people at risk of being excluded – is one way to create a diverse and inclusive organization. According to Bahati, inclusive leaders have six characteristics: (1) commitment, (2) courage, (3) cognizance of bias, (4) curiosity, (5) cultural intelligence, and (6) collaboration. Barriers to inclusive leadership include the "like me" bias, stereotypes, the perceived threat of loss, and ethnocentrism.

To review, see Diversity and Inclusion in the Workforce, Recommendations for Managing Diversity, and Inclusive Leadership and Potential Barriers.

6c. Examine methods to manage conflicts in organizations and among team members 

• What is conflict?
• What are some causes of conflict in an organization?
• How should we NOT resolve conflict in an organization?

Conflict exists when individuals or groups react to other individuals and groups that have frustrated or are about to frustrate their plans, goals, beliefs, or activities. In organizations, we can have goal conflicts when people desire a different outcome than others do, cognitive conflict when one individual or group holds ideas or opinions that are inconsistent with those of others, affective conflict when two people just do not get along with each other, and behavioral conflict when one person or group does something that is unacceptable to others. A key idea to remember is that conflict is not necessarily bad. Conflict can lead to new ideas and change. Try changing the word "conflict" to "opportunities". That change in wording moves people from the negative to the positive.

Robert Miles points to several reasons for conflict: (1) task interdependencies – the greater the task interdependence to accomplish a goal, the more likely a group will experience conflict; (2) status inconsistencies – unfair treatment among the different "status" of employees can cause conflict; (3) jurisdictional ambiguities – where the responsibility for a task is ambiguous; (4) communication problems; (5) dependence on common resource pool – where conflicts occur over limited resources; (6) lack of common performance standards; and (7) individual differences.

However, how NOT to solve conflict is equally important! These strategies are not only ineffective, but some of them can also actually increase the problem. Nonaction, or doing nothing to solve the conflict and hoping it will go away, rarely works. Administrative orbiting occurs when managers agree there is a problem but take little serious action. These managers use terms like: "the problem is under study", "more information is needed", or "these things take time". Due process nonaction occurs when a process or procedure is in place to resolve conflicts, but that process or procedure is long, complicated, and costly. Using secrecy to reduce conflict rarely works. "What they don't know won't hurt them" leads to mistrust in management. Character assassination – labeling someone a troublemaker – results in social isolation and silencing voices.

To review, see Conflict and Negotiations.

6d. Explain how teamwork is impacted by individual-level values and behavior, group behavior, and the characteristics of group development 

• How can direct or indirect communication affect a multicultural team?
• How might accents and fluency of language affect a multicultural team?
• How does cultural status affect a multicultural team?
• How do decision-making norms affect a multicultural team?

Cultural differences can have a negative effect on a team. Understanding whether a culture uses direct or indirect communication is important to understand. In the United States, a more direct approach to communication is valued, while in many Middle Eastern and Asian countries, the indirect approach to communication is valued. At the extreme, direct communication could be seen as offensive to others, while indirect communication could be perceived as unproductive or passive-aggressive. As a leader, how would you reconcile these different communication approaches on your multicultural team?

The second cultural difference in a multicultural team might have is trouble with accents and fluency. If only one primary language is used, will those who don't speak the language feel left out? Even if team members speak two or more languages, accents and whether or not the speaker is fluent can hinder effective communication and team processes.

A third cultural difference is hierarchy or status. Some cultures are acutely aware of hierarchy and status, while other countries are more egalitarian and don't observe hierarchical differences to the same degree. Conflict can occur when someone believes they are of high status but is ignored by others.

A fourth cultural difference is decision-making norms. Different cultures use different decision-making processes; some cultures apply a high degree of analysis and preparation before making a decision, while other cultures make decisions quickly based on only the information they need to make a decision. These differentiating rates, or length of time to decide, can be frustrating to others.

To review, see Multicultural Teams.

6e. Evaluate team effectiveness using insight into individual behavior and theories of motivation 

• Why should we assess individual members of a team?
• Why should we assess teams?
• What are the benefits of assessing teams?

Assessing individual members of a team, and the entire team, are essential in team development. Assessing individual members can involve self-evaluations, self-monitoring, and self-regulation, whereby an individual identifies areas he/she can improve in team collaboration. Peer evaluations can also be done by other team members to assess each other's strengths and weaknesses. However, standards for peer evaluations should be objective and confidential.

Successful teams measure accomplishment, identify issues, and correct internal problems. Strategies for assessing team performance include: (1) generate clear and understandable team goals, (2) identify examples of quality work and successful standards, (3) use team discussion and reflection to compare team performance to goals, and (4) identify strategies needed to close performance gaps.

The benefits of assessing teams fall into three broad categories: improve goal attainment, enrich relationships, and enhance team performance. Assessing goal attainment can strengthen the members' commitment to goals and priorities and help team members understand the objectives. Enriching relationships can improve the team's cohesiveness and morale, enhance communication, increase role clarity, and reduce conflicts. Enhancing team performance can allow the team to streamline processes, increase team members' confidence, and improve learning output.

To review, see Principles of Team Effectiveness.

6f. Explain the effects of individual behavior on the behaviors of team members in the workplace 

• What is the difference between a hero and a leader?
• Why is interdependence required for collaboration to happen?

In her TedTalk, Lorna Davis discusses her work with B Corporations, a group of interrelated businesses that believe businesses are to do good. She compared what she calls a "heroic" leader – a traditional leader – with an "interdependent" or "collaborative leader'' and found three major differences: they set goals differently, they announce those goals differently, and they have a different relationship with other people.

A heroic leader sets a goal that can be individually delivered and measured – a sales goal of 10 new clients a month, for example. Interdependent leaders begin with a goal that is impossible to achieve by one person or one company. Through interdependence, problems are solved.

Interdependent leaders are also willing to declare their goals before they have a plan. Heroic leaders tend to announce their goals when the path to achieve that goal is clear. Heroic leaders announce triumphs in goal attainment; interdependent leaders seek out co-creators.

Davis believes that once you have goals that cannot be accomplished by one person or one company, and you have announced that goal with no plan on how to achieve it, you see people inside and outside the company differently. Heroic leaders see everyone as a competitor or a follower. Heroic leaders want to control everything, oftentimes because they want the credit. Meetings are their way of controlling the narrative. Interdependent leaders know they need others and that meetings are not just mindless calendar fillers. Attendees react to these interdependent leaders with enthusiasm and engagement.

At the end of her video, Davis asks: "Why does hero culture persist and why don't we work together more?" As you start or continue a career that involves leadership, and you find yourself being the 'heroic leader,' watch this video again to see if it inspires you instead to be a radical interdependent leader!

To review, see A Guide to Collaborative Leadership.

Unit 6 Vocabulary

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• B corporation
• direct communication
• heroic leadership
• inclusive leadership
• indirect communication
• interdependent or collaborative leadership

Unit 7: Creating a Winning Organizational Culture

7a. Relate the dimensions of organizational culture, such as employee's values and beliefs, common goals, leadership styles, and shared assumptions 

• How can organizational culture affect employees and the organization?
• What are the different models or frameworks of organizational culture?
• How are these models similar and dissimilar?

Organizational culture serves two purposes: culture helps an organization adapt to and integrate with its external environment and creates internal unity by bringing together employees so that they work more cohesively to achieve common goals. The organization is usually framed by the top manager or the founder of the organization. That individual's vision, values, and mission set the tone for the organization. Organizational culture, because it is based on values, influences employees' beliefs, behaviors, relationships, and the way they work.

One popular model of organizational culture is the Competing Values Framework (CVF), which diagnoses the effectiveness and fit of the culture with its environment. As a result of this diagnosis, an organization's culture can be defined as an Adhocracy Culture, Clan Culture, Hierarchy Culture, or Market Culture. Another popular model of organizational culture characteristics is the organizational culture profile (OCP). In this model, organizational culture can be framed as innovative culture, aggressive culture, outcome-oriented culture, stable culture, people-oriented culture, team-oriented culture, and detail-oriented culture. If you compare the CVF with the OCP, what similarities and differences would you find?

Other frameworks for organizational culture include Hofstede's Cultural Dimensions, in which Hofstede identified cultural dimensions globally: power distance, uncertainty avoidance, individualism versus collectivism, masculinity versus femininity, long-term orientation, and indulgence versus restraint. Edgar Schein's Cultural Model focuses on artifacts, values, and assumptions. Finally, Charles Handy's Four Types of Culture include power culture, role culture, task culture, and person culture.

While the cultural frameworks mentioned above are helpful, many frameworks exist to define organizational culture.

To review, see Corporate Cultures and Shaping Organizational Culture.

7b. Describe the relationship between the external business environment and the organizational culture 

• What factors make up the external business environment?
• How can we assess the best fit between the external environment and the organization?

The external environment consists of sociocultural forces, natural disasters, human-induced problems, government and political forces, economic forces, and technological forces. The company's industry fit can be determined by two dimensions: environmental complexity and environmental change. Environmental complexity refers to the number of elements in the environment (simple or complex), while environmental change is described as stable or unstable.

Looking at these two dimensions, we can determine if the company industry fit has a simple-stable environment, a complex-stable environment, a simple-unstable environment, or a complex-unstable environment. Working within a complex environment can be very challenging. Some ways to organize your company to meet these complexities include: using self-managing teams or autonomous business units with an entrepreneurial responsibility to the larger organization, developing simple rules to drive out creativity and innovation, or the company building upon its own capabilities.

To review, see External and Internal Organizational Environments.

7c. Explain how organizational design models (i.e. functional, centralized, decentralized, layers of hierarchy, departmentalization, etc.) help to achieve agility and improve performance 

• What factors go into the decision of organizational design?
• What are common organizational designs?
• How are these organizational designs similar and dissimilar?
• How does the necessity for agile organizations match these organizational designs?

Organizational structures tell employees how job tasks are divided, grouped, and coordinated. Factors to consider when choosing or changing an organizational design include work specialization, departmentalization, the chain of command, span of control, centralization/decentralization, and formalization. Another factor to consider is whether or not the organization is mechanistic or organic. Mechanistic organizations exist in stable, low-uncertainty environments. Mechanistic organizations tend to have a top-down hierarchy, narrow span of control, specialized tasks, formal rules, vertical communication, and structured decision-making. Organic organizations exist in unstable, high-uncertainty environments. Organic organizations tend to have a less rigid, horizontal organization; be flexible with few rules; two-way communication; participatory decision-making; generalized shared tasks; and a wide span of control.

Common organizational designs include functional structure, divisional structure, geographic structure, matrix structure, networked team structures, and virtual structures and organizations. The functional structure is organized by departments and expertise areas. A functional structure might be referred to as a "pyramid" structure as they are governed as a hierarchical, top-down control system. A divisional structure has many functional departments grouped under a division head. Each functional group in a division has its own marketing, sales, accounting, manufacturing, and production teams. A geographic structure is designed to serve customers faster and with relevant products and services. Matrix designs use teams to combine vertical with horizontal structures. Employees report to a functional boss while simultaneously reporting to a product or project team boss. Networked team structures move beyond the matrix structure with a structure that is more informal and flexible. Networks comprise clustering – the degree to which a network is made up of tightly knit groups – and path length – the average number of links separating any two nodes in the network. Virtual structures and organizations respond to the need for more flexibility, on-demand solution-based tasks, fewer geographical constraints, and accessibility to dispersed expertise.

To review, see Factors Impacting Organizational Design and Organizational Structures and Corporate Cultures.

7d. Examine the relationship between leadership and the development of subordinates to achieve organizational strategy 

• How are leadership and the development of subordinates linked?
• What leadership styles might be effective in the development of subordinates?
• What are specific actions leaders can take to develop subordinates?

Studies in learning at work indicate that social support – received from managers/leaders and peers – is important in transferring knowledge. Knowledge management looks at how the performance of management helps develop the intellectual/human capital of an organization. Knowledge management, then, is using knowledge as a strategic asset in an organization. A leadership style oriented toward learning and knowledge encourages innovation and knowledge sharing, encouraging open communication and team development.

Transformational leadership, aimed at the positive influence of subordinates, is directly associated with the process of the professional development of subordinates. Transformational leadership can be both supportive leadership and developmental leadership. Supportive leadership, as part of transformational leadership, considers followers' needs and preferences when making decisions. Developmental leadership, as a part of transformational leadership, engages in career counseling, careful observation of employees, recording followers' progress, and encouraging followers to attend technical courses. Development leadership displays a stronger relationship with job satisfaction, career certainty, workplace commitment, and self-efficacy than supportive leadership. Research also indicates that servant leadership and authentic leadership are also effective leadership styles when developing followers.

Transformational leaders can contribute to the professional development of followers across three areas: strategic management, formal learning activities, and informal learning activities. In strategic management, we want to create a work environment that supports learning and commitment. One of the most important areas is to have shared goals with the work teams and to use empowerment leading to workplace commitment. In formal learning activities, the leader's goal is to stimulate the team. In addition to providing formal learning opportunities, the leader can create communities of practice that offer constant challenges and growth possibilities for employees. In informal learning, the leader must inspire followers. Creating multidisciplinary teams can enrich the quality of exchanges within the team. Reflective observation can also be used to enhance learning.

To review, see Attracting the Right Workers.

7e. Apply leadership practices such as mentoring and talent development to foster the career progression of subordinates 

• Why would we want our followers to progress in the organization?
• How can mentoring and talent development help with career progression?
• How can an organization benefit from mentoring and talent development?

As a leader, you must give your followers a reason to remain with your organization. Understanding what each of your followers needs can be done by listening. What are their career goals? What do they like and dislike in their current position? What skills do they want to develop? What assignments have you found most engaging?

Employees also want to grow and develop. Mentoring and networking help to energize people, Through mentoring and networking, people can learn, create, and find new opportunities for growth. Providing followers with a sense of purpose is also very important with Millennials, as this sector of workers ranks meaningful work and challenging experiences at the top of their job search lists.

McKinsey & Company, through a study, found three talent management practices that correlate with financial performance: globally consistent talent evaluation processes, cultural diversity in a global setting, and developing and managing global leaders. Consistent talent evaluation allows a global organization to transfer employees, knowing they have the same skills and standards. Cultural diversity, as you have learned throughout this course, helps employees understand different cultures. Developing global leaders by rotating employees across different cultures gives them international experience and a global viewpoint.

To review, see Human Capital Management: Don’t Reinvent the Wheel.

Unit 7 Vocabulary 

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• adhocracy culture
• aggressive culture
• Charles Handy's Four Types of Culture
• clan culture
• clustering
• Competing Values Framework (CVF)
• complex-stable environment
• complex-unstable environment
• detail-oriented culture
• developmental leadership
• divisional structure
• Edgar Schein's Cultural Model
• environmental complexity
• environment change
• functional structure
• geographic structure
• hierarchy culture
• Hofstede's Cultural Dimensions
• innovative culture
• market culture
• matrix structure
• mechanistic organization
• networked team structures
• organic organization
• Organizational Culture Profile (OCP)
• out-come oriented culture
• path-length
• people-oriented culture
• simple-stable environment
• simple-unstable environment
• stable culture
• supportive leadership
• team-oriented culture
• virtual structures and organizations

Unit 8: Power, Politics, and Change

8a. Describe how power bases such as legitimate power, reward power, expert power, information power, coercive power, and referent power work and how they influence people in organizations

• What are the traditional power bases in an organization?
• What are some emerging power bases?
• How can we use power to influence people in an organization?

Researchers have identified six sources of power in an organization: legitimate, reward, coercive, expert, information, and referent. Legitimate power comes from one's role or position in an organization. Your boss, your boss's boss, and your CEO all have legitimate power over you. Reward power is the ability to grant an award. Most people with legitimate power also have reward power. Reward power is highest when the reward is scarce. Coercive power is the ability to take away or punish someone. Again, those with legitimate power might also have coercive power. Expert power comes from having knowledge and skills. Information power goes beyond expert power in that information power includes access to information. A boss who deliberately withholds information from decision-makers is exerting information power. Referent power is based on the characteristics of another person, so much so that we wish to be more like that person. Charismatic leaders have referent power. However, remember that there can be a dark or negative side to charismatic leaders.

Some additional power bases may also exist in relationships. Affiliation power is the power that is borrowed through association with a more powerful individual. Affiliation power can come from friendships, working with a powerful individual, or acting as a gatekeeper to a powerful individual. Many office support staff play this gatekeeper role; always respect support staff! Group power comes from solidarity and the weight of numbers. Larger groups can more easily influence others. Technology power is the ability to use technology or control access to technology. Millennials often have technology power. Bureaucratic power usually exists with career officials in large, structured organizations. Philosophical power is associated with values and world views that can be expressed and shared by others. Spiritual leaders often possess philosophical power

Leaders have many ways in which they can use power to influence others: rational persuasion, legitimating, personal appeals, exchange, ingratiation, pressure, coalitions, inspirational appeals, and consultation. Where would you place each of these influence tactics in the power bases? For example, rational persuasion might work best for someone with expert power.

To review, see Bases of Power and Influencing Tactics.

8b. Explain common power tactics in organizations and power-shifting strategies to effectively manage workplace politics

• What are common power tactics used in organizations?
• Are power tactics ethical?

Common power tactics include: controlling access to information, controlling access to persons, selective use of objective criteria, controlling the agenda, using outside experts, bureaucratic gamesmanship, and coalitions and alliances. While some might reason that all power sources are inherently bad, that is not true. In particular volatile situations, using these power tactics might be in the best interest of the individual and organization.

When looking at the power bases in an organization, which of these powers is ethical and which is not? All the power bases can be used ethically as long as standards are applied equally and uniformly. Providing a reward to a follower is fine as long as the reward is ethical, credible, and desired by the follower. Even coercive power can be used ethically when followers know the rules and penalties, a warning is given before punishing, punishments are administered consistently and uniformly, the punishment fits the infraction, and the punishment is done privately. Additionally, it's important that leaders with coercive power take the time to fully understand the situation before taking action.

To review, see Uses of Power.

8c. Evaluate methods to manage organizational politics by using rational processes, strategic leader power, reducing system uncertainty, breaking up political fiefdoms, and reducing competition for scarce resources to ensure appropriate and ethical behavior

• How do rational processes differ from political processes?
• How can a person use strategic leadership power to manage politics?
• What techniques are available to manage organizational politics?
• How can power be lost in an organization?

Rational processes are based on analytic processes. An analytical process is a process in which there are agreed-upon methods for generating alternative solutions to problems assigning values to the benefits and costs expected from each of the alternatives, and that computational methods are readily available for calculating benefits/costs ratios once these values are assigned. Trust is a major difference between rational processes and political processes. Political processes are not built on trust. A leader who uses information power would view valuable information as a commodity to be traded for influence. In the rationality frame, a leader trusts that others will also be logical in their decision-making.

At the strategic level of an organization, power is embodied through three fundamental elements: consensus, cooperation, and culture. When an organization has the ability to bring together the commitment of multiple constituencies and stakeholders in response to specific challenges and aspirations, the organization is high in consensus potential. Cooperative potential refers to an organization's capacity to develop cooperative interaction among individuals and groups. Cultural potential seeks to create a strong organizational culture that connects the destiny of the organization to the personal goals and aspirations of its members.

Techniques are available to limit the effects of political power/behavior in an organization: reduce system uncertainty, reduce competition, break existing political fiefdoms, and prevent future fiefdoms. To reduce system uncertainty, ensure you have fair standards for evaluation, that you differentiate rewards among high and low performers, and that rewards are immediate and related to performance. Competition can be reduced by minimizing resource competition among managers and working with managers to see externally oriented goals and objectives. Existing fiefdoms that have a negative impact on the organization should be split. Splitting or removing the most dysfunctional subgroups could stop political maneuvering. To prevent future fiefdoms, make an apolitical attitude a criterion for promotion, putting organizational ends ahead of personal power.

Power can be lost because of negative personal attributes that diminish a leader's capacity to effectively lead with power. Technical incompetence occurs when a leader lacks the conceptual skills to develop a vision and manage organizational change. Self-serving/unethical leaders abuse power by taking special privileges, exploiting peers, or taking credit for others' contributions. Self-serving leaders create an unethical culture that creates divisiveness. Micromanagement destroys individual and team motivation. Arrogant leaders are impressed with themselves and talk down to peers and subordinates. Explosive/Abusive leaders have inadequate control of their temper and abuse subordinates. They often cannot understand complex problems and may solve problems at only a surface level. Inaccessible leaders are not available to their peers and subordinates. They may not place great value on interpersonal relationships, may have weak interpersonal skills, or they may be too self-centered.

To review, see Limiting the Influence of Political Behavior and Leveraging Power and Politics.

8d. Summarize the models of change management in organizations, such as Lewin's Three-Step model, Kotter's Eight Step Plan, Nadler's System Model, and Action Research, as well as planned organizational development and crisis management

• Why is change the only constant?
• What models exist for change management in organizations?
• What are the impacts of organizational development?
• What happens when change is not planned?

Throughout this course, you have learned over and over that rapidly changing technology, rapidly changing workforces, rapidly changing external environments, and rapidly changing diversity and inclusion in the workplace is the new normal. Even organizations that exist in a relatively stable environment have to react to disruptors. Understanding how we can move an organization through a change is critical to the success of our people and our organizations.

Lewin's Three-Step Model includes the ideas of unfreezing, movement, and refreezing. Lewin's model has four characteristics: recognizing the need for change, acknowledging the resistance to change, focusing on people who are the source of change and learning, and the need to support new behaviors. In Kotter's Change Model, Kotter further expanded Lewin's steps into a more detailed 8-step model: Kotter's first four steps – create a sense of urgency, build a guiding coalition, form a strategic vision and initiatives, and enlist a volunteer army equates to the "unfreezing" step. Kotter's next three steps – enable action by removing barriers, generate short-term wins, and sustain acceleration – equate to Lewin's "movement" stage. Finally, the institute change step equates to Lewin's "refreezing" process.

Nadler's System Model states that to implement change successfully, a manager must consider four elements: informal organization elements, formal organizational elements, individuals, and tasks. As with any system, if a change impacts one area, it will create a ripple or domino effect in other areas. Action research is change based on collecting data and selecting a change action based on the analyzed data. Action research involves five steps: diagnosis, analysis, feedback, action, and evaluation. Action research is very problem-focused and engages people all along the process.

The entire area of organizational development deals with long-lasting change. Just as employees need to continually develop, so do organizations. Techniques that organizations can use include sensitivity training, survey feedback, team building, intergroup development, and appreciative inquiry.

Crisis management, in this context, happens when an organization unsuccessfully anticipates its competitor's next move. Organizations may incorrectly view the external environment. How many organizations had plans in place for a worldwide pandemic? You can help avoid crisis management in your organization by staying flexible, keeping innovation fresh, and bringing in new people with new ideas.

To review, see Change Management and Models of Change Management.

8e. Analyze how firms use agility to address change in a complex, turbulent, and uncertain business environment

• How do we define agile leaders?
• How can you be an agile leader?

An agile leader is someone who prepares for the unpredictable. Agile leadership is a style of leadership that is entrepreneurial. Phillips believes we need three things to be agile leaders: have an iterative process, build a tribe of resources, and get uncomfortable on a daily basis. The iterative process consists of building a problem statement, creating a hypothesis, proving or disproving the hypothesis, architecting a solution, reaching out to the tribe of resources anytime you have questions or need additional knowledge, and stepping back and refining your process. A tribe of resources are those people who help you and the people you help.

Agile leadership is related to the agile method of software development. His belief is agility is the ability to move quickly and easily or to think and understand easily. Ali believes in four values: choose individuals and interactions over processes and tools, choose a usable product over paperwork, collaborate over contracts, and be responsive to change rather than sticking to a plan. An agile mindset can lead to stakeholder success, teams doing better, a culture of support, better documentation, clarity in the work needs, and feedback – which leads to budget and time success.

To review, see Agile Leadership and Agile Culture.

8f. Develop processes to manage change, change mindsets, and instill a collaborative culture to solve business problems

• What are some key enablers to change?
• How can you develop the mindset of a leader?
• How can you be the best possible leader?

Transparency and effective communication are essential during an organizational change. Providing the reason for the change and the process for the change can help reduce resistance from employees. Effective education and training are also necessary. Employees who seem uncomfortable with or resistant to the change may need mentors or counselors to help them work through their anxiety. Monitoring the implementation of the change can be done through data or changes in productivity. Additionally, monitoring how the change is affecting employees is also crucial.

Dan Rockwell provides four tips on changing your mindset to a leadership mindset. First, monitor self-talk. When your mind wanders, call it back to a leadership mindset. Second, examine your assumptions and beliefs. Reflect on your beliefs about yourself, others, and the world. Third, choose your leadership mindset. Train yourself to notice what's working in an organization, not solely what is not. Show up as an opportunity-thinker. Earlier, we discussed changing the word "conflict" to "opportunity". Approach conflicts as an opportunity. Fourth, examine your conversational trajectory. Based on your conversations, where are you going? What is the trajectory of your team based on their conversations?

As discussed throughout this course, our current business environment is characterized by turbulence, uncertainty, and rapid technological, social, and political change. The U.S. Military coined the phrase VUCA – Volatility, Uncertainty, Complexity, Ambiguity. As the U.S. Military recognized, "traditional" leadership styles fail to deliver the innovation and entrepreneurship that is required to remain competitive.

How can you reach your potential as a leader? First and foremost, build trust. Be humble, be confident, and be assertive. Use collaboration to empower others and to reach decisions that you, alone, could not reach.

The final paragraph of Barney Jordaan's article on Leading Organisations in Turbulent Times is not only inspirational but sums up this course:

Sustained change needs a shift in mindset away from competing to survive to collaborating to win; from silo mentalities to openness; from making decisions in small, elite circles to allowing employees a meaningful "voice" in decisions that affect them, including the creation of an environment that encourages their inputs and critique, from seeing conflict as bad to embracing it as a potential resource; from behaviors that destroy trust or prevent its development, to the active pursuit of behaviors that develop trust.

That is our challenge to you.

To review, see Changing Mindsets, Develop the Mindset of a Leader, and Strategies for Successful Organizational Change.

Unit 8 Vocabulary 

This vocabulary list includes terms you will need to know to successfully complete the final exam.

• action research
• affiliation power
• analytical process
• arrogant leaders
• bureaucratic power
• Coercive power
• consensus
• cooperation
• culture
• Expert power
• explosive/abusive leaders
• group power
• inaccessible leaders
• information power
• Kotler's Change Model
• legitimate power
• Lewin's Three-Step Model
• micromanagement
• movement
• Nadler's System Model
• philosophical power
• referent power
• refreezing
• Reward power
• self-serving/unethical
• technical incompetence
• technology power
• unfreezing
• VUCA