BUS209 Study Guide

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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: Organizations in Business

1a. Define organizational behavior (OB) and relate it to an organization's success

• What is organizational behavior?
• What are the traditional behavioral sciences, and how are they used in studies about how organizations behave?
• What is employee engagement?
• What OB issue can be addressed by each of these forms of study?

It's important to understand what organizational behavior is, and your understanding begins with your ability to define it. Organizational behavior is the study of people in a business and how that behavior affects company performance. Are you comfortable with stating what organizational behavior is? Can you demonstrate how our understanding of organizational behavior draws on other established behavioral sciences and why that is important in evaluating current studies of OB?

When studying any organization, we need to understand its structure. Think of the classic representation of an organization, which details the various levels, such as president, vice presidents, directors, and so on down the ranks. Much of our discussion on OB will involve looking at these various levels and understanding how they influence and impact those above and/or below.

Find some examples of different organizational structures. Don't just look at public, for-profit firms, but also consider private and not-for-profit organizations. What organizational structure you would like to be a part of? Why do you feel that way? Now that you are looking at some companies, ask yourself why an understanding of OB matters. Firms spend a great deal of time and resources on this topic. Can you list some reasons why this understanding is important? If you were about to invest your time and money to launch a new business, are there some OB ideas you would want to include as you build the business?

There are a few points made in this unit that you should review:

• "People are definitely a company's greatest asset. It doesn't make any difference whether the product is a car or cosmetics. A company is only as good as the people it keeps." – Mary Kay Ash, founder of Mary Kay, Inc.
• In its 2007 Job Outlook Survey, the National Association of Colleges and Employers (NACE) noted that employers sought these skills more than any others:

• In terms of OB, healthy organizations exhibit role clarity, information sharing, and performance feedback. In these terms, 50% of business organizations today are "unhealthy".

We have discussed the importance of studying OB for your benefit, your employer's, and the organization's. But how do we go about conducting these studies? As a consumer of thousands of products, you realize that the companies involved constantly conduct studies to determine what you want, need, and are willing to pay for their products or services. Well, we are interested in conducting studies to understand more about how organizations work, what can increase their effectiveness, what contributes to a more productive workforce, and any additional factors that can help improve the health of our organization.

The more we know about OB, the better managers and leaders we can become. Let's assume that you are stepping into a new role as an executive of a local company. What specific behaviors would you like to see in this organization that could help you succeed?

Over the years, there has been a great deal of discussion on the importance of employee engagement – an employee's emotional commitment to their work and organization – as a determinant of firm success. The higher the level of employee engagement, the higher the level of customer satisfaction, employee satisfaction, and financial return. Take a moment and think about when you were really happy with a job and when you were not so happy. What were some of the factors that contributed to how you felt in each of those situations?

To review, see:

• Organizational Behavior
• What is Organizational Behavior?

1b. Identify current trends in organizational behavior

• How has technology affected businesses over the last five years?
• Is technology ever a disadvantage for a business? If so, how?
• What is the definition of sustainability, and provide an example of how this has been integrated into a business?
• What does the term going green mean to you? List a few companies following this program and provide examples from their product/service offerings.
• List some benefits and concerns that Baby Boomers bring into your company, and do the same for Millennials. If this was your company, what would you do to emphasize the benefits and reduce the conflicts?

Everyone can see the effects of technology on business. Rapid technological changes have affected how we communicate internally and externally, produce goods/services, and reach domestic and foreign markets.

In the past, technology was considered an entry barrier against competition. In other words, companies that invested heavily in various forms of technology made it more difficult for competitors to enter their markets. Now, this barrier has been lowered or eliminated. See if you can identify three examples of firms that created a barrier to entry for their competitors in the past few decades. Now, identify at least three new forms of technology that have made it easier for new companies (start-ups) to enter markets. How can a company benefit from their use of this technology?

Environmental protection regulations influence the business community, which is reflected in products and services that support the ideas of sustainability – the practice of meeting present needs without compromising future generations' resources – and "going green".

One topic that has generated a large amount of research and discussion is the clash in cultures between the Baby Boomer generation (those born between 1946 and 1964) and the Millennial generation (those born between 1981 and 1996). It is important to consider company culture – the shared values, beliefs, and behaviors that shape how people work together – as it represents the organization's attitudes and what it stands for. The differences in generations can be a huge benefit to firms and/or a source of conflict.

We are now participants in a truly global economy. The good news is that you can access more markets and customers than ever. The bad news is that you are faced with more competition than ever. This needs to be a part of any business' strategic plan. There is plenty of discussion about outsourcing, both positive and negative. Outsourcing occurs when a company uses a third party for services, products, or even the work employees do. No discussion of the global economy would be complete without some reference to offshoring. How would you define this activity? Discuss how you feel about these two activities. Would you consider them to be beneficial to the firm? What about the company's employees? Are there any ethical issues you can identify with these practices?

To review, see:

• Why, What, and How We Study Behavior in Organizations
• Employee Engagement Mindset

1c. Discuss globalization, cross-cultural challenges, and benefits of diversity in the workplace

• How would you define diversity?
• What are the benefits that come from a diversified organization?
• As a business executive, what would you do to encourage diversity in your company?
• What steps might you take to ensure that everyone in your company sees the benefits of diversity and integrates diversity into the company culture?

No discussion on OB can take place without including the issue of a diverse workforce, customer base, or management team. Companies today recognize the benefits they can realize from having a culture that supports diversity – the inclusion and empowerment of people with different backgrounds, characteristics, and perspectives. In a corporate context, diversity extends to varied perspectives, experiences, and skills individuals bring to the workplace. In a corporate context, diversity extends to varied perspectives, experiences, and skills individuals bring to the workplace. However, it is not always so easy to achieve diversity. There are several benefits to diversity for a business. These include increased creativity, better customer service, improved employee satisfaction, better financial performance, and lower legal costs. Create a chart that provides examples of these benefits, using research on different companies.

As you can see from your readings and research, diversity has real benefits for business in many ways. However, recognizing the benefits and actually achieving diversity are two very different topics. Diversity will not just occur in the normal conduct of business but result from an organization's leaders being proactive in pursuing a truly diverse firm.

Globalization is a catch-all term that describes the increasing interconnectedness and interdependence of the world's economies, cultures, and populations, driven by advances in transportation, communication, and technology. A global marketplace can affect any business in any country. Part of improving our understanding of the issue is to recognize that the world is made up of many cultures that are quite different.

Review the definitions of individualism, collectivism, power distances, uncertainty avoidance, masculinity, and femininity in this list.

• Individualism: Cultures where people define themselves as individuals and form looser ties with their groups
  • Includes countries like the United States, Australia, the United Kingdom, Canada, and Hungary
• Collectivism: Cultures where people have stronger bonds to their groups and group membership forms a person's self-identity
  • Includes countries like Guatemala, Ecuador, Indonesia, Pakistan, and China
• Low Power Distance: A society that views an unequal distribution of power as relatively unacceptable
  • Includes countries like Austria, Denmark, Israel, Ireland, and New Zealand
• High Power Distance: A society that views an unequal distribution of power as relatively acceptable
  • Includes countries like Malaysia, Slovakia, the Philippines, Russia, and Mexico
• Low Uncertainty Avoidance: Cultures in which people are comfortable in unpredictable situations and have a high tolerance for ambiguity
  • Includes countries like Denmark, Jamaica, Singapore, China, and Sweden
• High Uncertainty Avoidance: Cultures in which people prefer predictable situations and have low tolerance for ambiguity
  • Includes countries like Belgium, El Salvador, Greece, Guatemala, and Portugal
• Masculinity: Cultures in which people value achievement and competitiveness, as well as the acquisition of money and other material objects
  • Includes countries like Slovakia, Japan, Hungary, Austria, and Venezuela
• Femininity: Cultures in which people value maintaining good relationships, caring for the weak, and quality of life
  • Includes countries like Norway, the Netherlands, Sweden, Costa Rica, and Chile

If you have traveled in any foreign countries, can you recall any instances when you observed these differences? If you haven't traveled outside your home country, research this topic to feel comfortable with the issue. Now that you have appreciated some of the existing cross-cultural challenges, can you discuss how you would address these challenges in your company?

Many companies today, both large and small, are conducting business around the globe. If your company is going to have a dynamic, positive, and effective global strategy, you will need specific plans for addressing cultural diversity. Hofstede's Cultural Framework provides a very interesting way to compare cultural attributes.

To review, see:

• Why, What, and How We Study Behavior in Organizations
• Employee Engagement Mindset

Unit 1 Vocabulary

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

• Baby Boomer generation
• collectivism
• diversity
• employee engagement
• femininity
• globalization
• high power distance
• high uncertainty avoidance
• individualism
• interpersonal skills
• low power distance
• low uncertainty avoidance
• masculinity
• Millennial generation
• organizational behavior
• outsourcing
• sustainability

Unit 2: Managing Individuals

2a. Discuss how work environment affects workplace behavior, such as an employee's attitudes and perceptions

• What is job satisfaction?
• From a management perspective, why are employee attitudes important?
• Have you ever participated in a survey intended to measure employee, customer, or student satisfaction? Why do you think the organization was interested in this information?
• How does the low unemployment rate impact workplace behavior?

Imagine your career. You get a job where you work 40 hours a week and continue to work for 25 years, after which you decide to retire. This job will represent 50,000 hours or 1,250 weeks of your life. In that work environment, things like the friendliness of the people you work with, how you get along with your supervisor, the physical aspects of the workplace, and many other factors will have a direct influence on how you feel about your work and how you perform the tasks assigned to you.

Attitudes are opinions, beliefs, and feelings about aspects of our environment. We care about our attitudes, as they can influence our relationships with others. In the workplace, we care about how attitudes can affect the relationships between and among employees, as seen by our customers, and/or their impact on job performance. One measure of the attitude of employees is the level of job satisfaction – how satisfied we are with our job may dictate how hard we work, whether we call in sick, or our behavior in the workplace.

Organizational commitment is one way to describe employees' emotional commitment toward the company for which they work. Higher levels of organizational commitment are associated with greater employee satisfaction. This chart lists some of the factors that contribute to satisfaction:

To review, see:

• Understanding People at Work
• Individual Differences and Personality

2b. Assess your own personality characteristics and motivation through a series of surveys

• Why is it important to understand your personality?
• How can a series of personality surveys help you to better understand yourself?
• Why does an employer need to be concerned with workplace turnover?
• Why is it important for an employer to track employee absenteeism?

An individual's behavior toward a task or in their interactions with others can result in positive or negative workplace environments. There are a few behaviors employers need to consider regarding employees.

Turnover is the number of people who leave an organization and are replaced by new employees. High turnover can be costly for employees, and many employers have plans in place to ensure that employees have a higher level of job satisfaction. An employer can monitor turnover by regularly reviewing an employee's job performance – how effectively employees execute their assigned duties and responsibilities. Absenteeism occurs when an employee takes leave or doesn't come to work but is not sick or has no good reason to be absent.

Absenteeism and employee turnover have several negative impacts on a business. These include higher costs associated with lost work time, recruiting new employees, training, and overall employee morale.

To review, see:

• Attitudes and Job Satisfaction
• Individual Attitudes and Behaviors

2c. Describe the effects of motivation on performance and motivational theories

• What does it mean to be self-motivated?
• Why does your perception differ from your co-workers?
• How would you explain Maslow's Hierarchy of Needs in business?
• What might occur when two employees have perception differences?

Discussing perceptions may require us to step back for a minute and think about what this term means. We all have perceptions of people, places, and things. Perceptions are not right or wrong but represent how we feel about something or someone based on our experiences, real or imagined. We might perceive a situation as positive or negative, and perceptions can influence our behavior.

When considering employees' perceptions of their supervisor, job, or colleagues, we recognize that these perceptions may benefit the firm or work to its disadvantage. What could you do to positively influence a person's perception?

Perceptions – how we interpret and make sense of information from our environment – are developed from what we see and experience. However, what we see can be influenced by whether we truly understand what is happening or what is being said. Sometimes, we may form perceptions based on erroneous information.

We are all subject to emotions to a greater or lesser degree. Positive emotions (like happiness, joy, love, or excitement) can result in a more positive attitude, while negative emotions (like fear, hate, unhappiness, or jealousy) can have the opposite effect. Any efforts to improve employee satisfaction and increase job performance must recognize the influence that emotions can have. Negative emotions tend to affect more people and last longer than positive emotions. Why do you think this is true? Draw on your own experiences.

Emotional intelligence is the ability to step back and recognize that our emotional state, at any given time, can influence those around us. It is an ability to control our emotions in certain settings for the benefit of the department, team, or company. What can you do to ensure that you are aware of your emotions and will make sure not to allow them to negatively influence those around you?

Imagine the owner of a company who sees that the company's profitability is declining. This owner may feel angry, frustrated, or even afraid of what is happening. Recognizing the value of communication, this owner gets everyone together to discuss the state of the business and encourage the employees to try to improve the company's financial performance. The emotional state of this owner can either be a help or a hindrance.

Think about times that you have felt motivated to take on some task. Perhaps you were motivated to start on a research paper early or to volunteer for a project at work. In those times when we are motivated, our performance improves, and we feel better about what we have achieved. Motivated employees experience higher levels of job satisfaction and produce better outcomes for the company. Motivation, ability, and the work environment are contributing factors to performance.

Think of a time when you felt motivated to do a specific task. What motivated you to take this task on? Now, think about when you were not motivated but still had to get something done. Describe any differences between when you were motivated and when you were not. Sometimes, it will be necessary for you to motivate someone else. Can you think about a time when you could motivate a friend or an employee? What did you do?

There are times when an employee needs to find the motivation to take on an assignment or complete a task. An employer must also be aware that employee motivation results in improved outcomes and must design ways to motivate them. One way employers help employees work on their motivational skills is through SMART goals – goals that are specific, measurable, achievable, relevant, and time-bound.

Several theories attempt to better understand what motivates people and how to create a work environment that fosters motivation. Acquired-Needs Theory states that people are motivated by achievement, power, and affiliation; these may differ among employees depending on their perception and life experiences. Goal Setting Theory occurs when employees set clear and precise goals to help them move forward and increase performance. A Need-Based Theory occurs when people are driven to fulfill their own needs; for example, they may take a job to pay their bills and may not consider the details of the job. Herzberg's Two-Factor Theory includes job satisfaction and job dissatisfaction, which can affect an employee's motivation (or lack of motivation) in the workplace. Maslow's Hierarchy of Needs is a popular theory about individual motivation, and it states that higher-level needs (like self-esteem, self-actualization, or love) cannot be met until the lower needs have been fulfilled (like food, safety, or shelter).

Once we understand the importance of motivation in improving employee performance or our performance, we need to start thinking about ways to motivate people. An old saying says you can motivate others by using either a stick or a carrot. The stick might threaten you: complete this job, or you will be fired! A carrot could be a bonus for getting this job done on time.

Diversity provides real benefits to an organization by introducing different points of views, life experiences, skill sets, and personalities that can improve the company's overall performance. However, this same diversity means that different individuals may be motivated by different incentives. One employee may be motivated by time off, while another employee may be motivated by a cash bonus. This presents a challenge for the organization.

To review, see:

• Emotional Intelligence
• Cognitive and Process Theories
• Theories of Motivation

2d. Explain the various components of job design

• What is job design, and how does it relate to job enrichment?
• How can a business use job specialization? bus
• Why are performance appraisals important for employees and employers?
• What is an example of employee feedback?

Next, we will discuss increasing motivation by specifically considering the design of each job and the work environment. This requires an evaluation of a job that goes beyond just describing what must be done and also considers the different ways that it could be done.

The job characteristic model to provide a high Motivating Potential Score is:

(MPS) = skill variety + task identity + task significance / 3 + autonomy + feedback.

Employees receive feedback regarding their job performance, which may include constructive or positive feedback. Autonomy occurs when employees are free to make their own decisions in the workplace.

There are many other ways to design jobs to improve motivation, including job sharing, job rotations, making tasks more meaningful, providing frequent feedback, and telecommuting, to name a few. Job rotations may include employees who can perform different roles at the organization. Identify one technique that appeals to you, and see if you can research a company that is using this technique. Job enrichment is another aspect of job design and occurs when organizations consider how to make the employee's job more satisfying and fulfilling. Job specialization occurs when employees develop specific skills to do the job. Job enlargement occurs when an employee is assigned additional responsibilities during the job design process.

Companies often use performance appraisals to evaluate an employee's performance during the year. They may be the basis for promotions and/or salary increases. Consider a performance review that you have had, or interview a friend or family member who has had a review. What was the experience like? Was it accurate and fair? Was the person motivated to improve their efforts?

To review, see:

• Attitudes and Job Satisfaction
• Individual Attitudes and Behaviors

Unit 2 Vocabulary

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

• absenteeism
• Acquired-Needs Theory
• attitude
• autonomy
• emotional intelligence
• feedback
• Goal Setting Theory
• Herzberg's Two-Factor Theory
• job enlargement
• job enrichment
• job performance
• job rotation
• job specialization
• Maslow's Hierarchy of Needs
• Need-Based Theory
• organizational commitment
• perception
• performance appraisal
• SMART goals
• turnover

Unit 3: Managing Groups

3a. Compare and contrast groups and teams, their identities, development, and dynamics

• How would you define a workplace team?
• What is the difference between a group and a team?
• Why is it important to understand group formation?
• What social dynamics are involved in teams?

Chances are that you have been involved in many groups in your experience. You may have worked on a group project for an assignment in school or a group effort to address some situation at work. A group is a collection of individuals who interact with each other such that one person's actions affect the others. A team shares a common goal and typically works more closely than a group. When companies downsize, outsource, or right-size their organizations, fewer employees are available to work on issues that arise. This has created an increased need to gather employees from different parts of the organization to form working groups and teams, both formal and informal.

Informal groups are not organized by the company but result when individuals get together to work on some task. Planning a work party is one example of an informal work group. Can you remember a time you participated in an informal group? What were the dynamics among the members of this group? Were some interactions not as effective as they could have been? How might those processes be improved?

A formal group is organized by an employer and is typically organized to work on a specific task. An example of a formal work group might be a team of employees who need to develop a new product line for a company. They may be a department that works together temporarily or full-time.

When you consider the value that groups can contribute, whether in business or some personal endeavor, it is important to make every effort to create a group project that is as effective and efficient as possible. Informal groups can arise for many reasons and do not result from a planned effort. But in many instances, we will need to put together a group for a very specific task.

Let's consider a business scenario. You are managing a business, and there seems to be a problem with a major customer account. You need to identify the specifics of your customer's concerns and develop an action plan to address them. As the issue involves products, shipping, and customer service, you assemble a group of experienced employees to work on this problem.

Interpersonal communication occurs in the workplace when individuals express their thoughts, share information or ideas, or their feelings. This type of activity may occur between two people or within the confines of a team or group. A high-performance team occurs when a team works well together and productivity is high.

There are five stages of group development:

1. Forming – getting the group together
2. Storming – may see conflict as the group gets to know each other
3. Norming – the group settles in and begins to understand each other
4. Performing – productivity is high, and the group gets along well
5. Adjourning – closing the group and project end

Once a group has been assembled, they need to establish how they will work together. They should discuss the various roles that may be needed, a project schedule, deliverables, and so on. Time spent at the beginning of this process can save a great deal of time later. 

Imagine you are one of four employees who has been assigned to a group by your supervisor and directed to address quality issues with a new product. What action items should be on the agenda at the first group meeting?

There is a requirement for some pre-group planning to take place to increase the probability of the group being successful. This means having a clear idea of the project to be undertaken, the members' make-up (like their skills, experience, and training), and identifying appropriate roles. In some cases, the company may also find it necessary to provide training for the group before the project begins. This training might include project management, product knowledge, communication, or other skills the members need.

Groups are made up of people with individual personalities, character traits, emotions, and ability to work with others. It should come as no surprise then that the dynamics of groups will vary per the make-up of the members. Group dynamics is the study of how people react within the group, and interpersonal relations are part of any group activity and lend to various group dynamics. Group cohesion occurs when the group works well together and has high performance.

To review, see:

• Managing Groups and Teams
• Group Influence in Individuals

3b. Explain the benefits and costs of teams from the organization's perspective

• How might you motivate your team to make sudden changes?
• What are a few benefits when a team performs well?
• Do teams increase or decrease employee satisfaction? Why?
• Why is it important to understand team dynamics?

A team is a cohesive coalition of people working together to achieve mutual goals. We have all heard about the need for teamwork or how individuals can work together for a common purpose. It involves everyone putting forth their best efforts for the team's benefit, not their own individual preferences.

While there are certainly several positive outcomes from using employee teams, there are also very real expenses involved in team-based initiatives. For example, what training requirements will be needed to ensure that the team has the required skills? How will you cover individual team members' responsibilities while they are working on the team? Are there complex reporting requirements involved with managing the team? What allocation of resources will be required to facilitate the team's work?

As a new manager in your firm, you want to create an employee team to work on developing ideas for a new consumer product. You will be meeting with the company president to present your idea, and you know that the discussion will include cost. You will also want to consider how you will reward this team if they successfully meet the project's goals. You know that your company has awarded bonuses to employees in the past. Think about a proposal for a bonus for the team, and review if it will be individual bonuses or a group bonus. Think about the reasons for your choice.

Other costs can be incurred depending on the location of the employees and the need for technological support. It is not unusual for large companies to have employees throughout the country. Travel costs can add up very quickly. These costs can be even higher for global firms establishing teams from locations in several countries. You may also supervise a virtual team where everyone works remotely and hold regular meetings with your team. Another consideration when groups work closely together is groupthink, which occurs when the group doesn't consider new ideas from individuals on the team and the rest of the group is too afraid to go against the team's cohesiveness.

To review, see:

• Groups vs. Teams
• Diversity in Teams

3c. Discuss the skills required for working effectively in teams

• What does an effective team look like?
• What impact does a team have on employee engagement?
• How might team members help each other be more effective?
• What skills are needed to work in an effective team?

A company can gain many benefits from using employee teams. With the increasing use of teams and their importance in helping companies improve their financial performance, you will want to ensure that any teams you create will be able to succeed.

It is important to understand that each employee on the team will not have the same skill set. For example, one team member may need to understand a product/service, while another team member may need experience with a process. Each team member should be able to assist with their areas of expertise.

When employees are engaged, their productivity, job satisfaction, and commitment to the company increase. However, we can't just hope that our employees will be engaged. We must proactively find ways to let our employees know just how important they are to the company and that their voices will be heard.

To review, see:

• Group Processes in the Organization

3d. Describe interpersonal communication styles within groups and teams

• What are interpersonal communication styles?
• Does it matter if team members have different communication styles? If so, why?
• What are the differences between a team that has worked together for years vs. a few months?
• Why is it important to consider the communication style of each team member?

Wherever we have more than one person in a group, the need for clear and effective communication is vital. Have you ever had a conversation with someone, and after they left, you wondered if they heard what you were saying? One would think that communication is a simple task. After all, you've been communicating for years. Anyone who has left a department or team meeting and then had conversations with colleagues trying to understand what you just heard knows the problems that can occur with communication.

This is a basic communication model:

As you review this model, make a list of each step in the communication process – the exchange of information between a sender and receiver through encoding, transmission, and decoding of messages.

When communicating our positions or opinions to a group of colleagues, we should be aware of those things that can interfere with how our message is received. These barriers include filtering, selective perception, information overload (too much information is given all at once), emotional disconnects, lack of source familiarity or credibility, gossip, semantics, gender, bias, and culture. Consider three of these that you may have experienced or are interested in learning more about, and research them.

With an understanding of the importance of communication and recognizing that sometimes there are issues with the clarity of communication, we should spend some time discussing how communication can be improved. As with so many areas of interpersonal relationships, once a concern is identified, it is possible to work on ways to eliminate those concerns. Communication channels are directional: they can flow down (supervisor to employee), up (employee to supervisor), or laterally (among peers). Can you think of something that could be communicated for each channel? Communication can also be oral, written, or non-verbal (like facial expressions, eye contact, or tone). Body language is another non-verbal aspect that is important to consider, as it may demonstrate how someone feels without any words spoken.

The key is the richness or completeness of conveying all the information as clearly as possible. Different circumstances require different methods of communicating. What is the potential use of each of these methods? There is no doubt that technology has transformed the way we communicate. Email, texting, and social media have become daily communication for personal and business topics. Identify three benefits and three disadvantages of electronic communication. Think about the issue of message richness as you consider this technology. We are in the age of global business, whether the company is large or small. Cultural diversity can present some challenges to effective communication.

We cannot underestimate the importance of effective communication in our personal and professional lives. The more important the message we wish to deliver, the more critical it is that we communicate it clearly and ensure that it is received exactly as intended. We need to make an effort to understand the potential barriers that can impede the reception of our message and to learn about methods to reduce or eliminate those barriers.

To review, see:

• Communication in the Organization
• Communication

Unit 3 Vocabulary

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

• body language
• communication channel
• communication process
• formal group
• group
• group cohesion
• group dynamics
• groupthink
• high-performance team
• informal group
• information overload
• interpersonal communication
• non-verbal communication
• stages of group development
• team
• virtual team

Unit 4: Leveraging Power

4a. Assess the impact of various leadership approaches and how they compare to managerial styles

• Why is it important to understand leadership styles?
• Why should you understand your leadership style?
• What makes someone a leader?
• How are leaders and managers different?

Consider the importance and influence of leadership in an organization. Different leadership styles and attributes can produce very different results.

Being a leader can help you in your career and your personal life. If you aspire to become a leader, consider the value of identifying people with the attributes you admire and trying to learn from them. In business, it is useful to identify an executive who exhibits these leadership traits and see if he/she will agree to be a mentor.

In any organization, there will be leaders and managers. These roles are not necessarily the same, and given certain circumstances, there may be a need for one or the other, and sometimes both. Think about what you want a leader in your department to accomplish. How do you define leadership success?

As a manager, perhaps it is time to fill a vacancy in your company. What skills would you look for in that specific job? What will this manager need to accomplish? What team will they manage, and what does that team need the most in a manager? How is a leader different from a manager?

There are four types of leaders: directive, supportive, participative, and achievement-oriented. Directive leaders provide specific directions to their employees. Supportive leaders offer emotional support to employees. Participative leaders ensure that employees are involved in making important decisions. Achievement-oriented leaders set goals for employees and encourage them to reach their goals.

When we think of leaders, we consider individuals who can create a vision, motivate others to support the vision, encourage employees to excel at what they do, and are the founders of the company culture. Managers take on the responsibility for creating the plans necessary to achieve the vision and provide the day-to-day direction necessary for the business to operate efficiently.

To review, see:

• Leading People Within Organizations
• How Great Leaders Inspire Actions

4b. Explain modern theories of leadership and how these relate to influencing workers

• What are the various types of leaders?
• Can you describe the different leadership styles?

Much can be learned from studying the different leadership styles, especially for those who aspire to lead. These leadership styles are the most popular in management today:

• Charismatic leaders seem to have a magnetic personality, draw people in, and become easy for employees to follow.
• Transformational leaders encourage and inspire employees to develop themselves and often give people responsibility to see what they can accomplish.
• Servant leaders serve the people who work for them and do what they can to remove obstacles from their path so work can easily be accomplished.
• Authentic leaders are transparent with information and very self-aware of how they impact others.
• Laissez-faire leaders have a hands-off management approach and allow employees the freedom to complete their work with little interference.

Good leaders are required by any organization, public or private, to achieve all their goals and objectives, create a culture of respect, and develop a team of motivated people who truly want the organization to succeed. Many organizations today look for a specific leadership style in new hires to manage departments that need that kind of leader. For example, a transformational leader may be matched with a department that requires drastic changes. Or a department with mostly employees who have worked for decades for the organization might be matched with a servant leader who can assist with removing obstacles and stay out of employees' way as they complete their work.

Remember, leaders can be made. By identifying the skills and attributes of leadership, you may be able to determine where there is a skills gap or which manager is right for specific departments. You can also assist in determining how the company will move forward productively.

To review, see:

• Bad Bosses
• Command and Control Leadership vs. People-Centered Leadership

4c. Differentiate the areas of power in leadership

• How do scarce organizational resources and competing interests between departments influence how leaders exercise different types of power?
• What role does emotional intelligence play in a leader's ability to choose and apply appropriate forms of power?

At some time in your life, you have had someone exercise power over you, from parents and family, teachers and professors, and supervisors at work. You may have also experienced when you had the power in some supervisory or management role. Power means influencing others to achieve goals.

While someone may have power, they may never use it or use it too often. Some managers may never have been trained to be managers or could have been placed in their roles because they were good employees. Good leaders understand the power of influence – the ability to affect others' behavior through persuasion rather than authority – and use it to gain employee support or consensus.

One type of power may be more appropriate than another in a certain circumstance. One attribute of leadership is the ability to apply the kind of power most likely to achieve the desired outcome. This is one of the attributes of emotional intelligence (EI).

In an organization, politics is the process of influencing others and their actions to accomplish something useful to the individual or the individual's team or department. Think about what you have read about organizational politics in this unit and how you might observe it in business. 

Organizations are coalitions of individuals and interest groups that form because the members need each other's support. There are enduring differences among individuals and groups in values, preferences, beliefs, information, and perception of reality. Most important decisions in organizations involve allocating scarce resources: decisions about who gets what. Because of scarce resources and enduring differences, conflict is central to organizational dynamics, and power is the most important resource. Organizational goals and decisions emerge from bargaining, negotiating, and jockeying for positions among members of different coalitions.

To review, see:

• Leadership and Power
• Sources of Power

Unit 4 Vocabulary

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

• achievement-oriented leader
• authentic leader
• charismatic leader
• directive leader
• influence
• laissez-faire leader
• participative leader
• power
• servant leader
• supportive leader
• transformational leader

Unit 5: Conflict Management and Negotiations

5a. Describe the various types of conflict

• What are the various types of conflict?
• Can you think of an example of a healthy conflict?
• What are some causes of workplace conflict?
• What is intrapersonal conflict?

In any organization, regardless of size or purpose, conflict between or among the organization's members is possible. Conflict is a process that involves people disagreeing. Conflict can be distracting, but is all conflict something to be avoided? It is possible to disagree without being disagreeable, right?

There are three types of conflict: intrapersonal, interpersonal, and group conflict. Intrapersonal conflict is when an employee has an inner conflict. Perhaps they want to say something to a co-worker or supervisor but are unsure how to present the issue. Or maybe they wish they had repeatedly said something during a conflict and replayed the issue in their head. Interpersonal conflict occurs when two or more people have an issue at work and disagree over a project or values. A group conflict occurs when a group or a team has an issue over a shared project, and how they deal with the issue may demonstrate their strength as a team.

Sometimes, conflict can simply mean a difference of opinion or someone saying, "I don't agree with you on this point". If this conflict results in an exchange of views and ideas, the result may be improved. If it degenerates, it can delay a project or result in inferior decisions.

Conflicts can occur in any organization. If we are concerned about the potential negative effects of conflict, we will want to minimize its causes. Six possible causes of conflicts are organizational structure, limited resources, task interdependence, incompatible goals, personality differences, and communication problems.

Conflict must be identified and managed quickly within any organization, group, or team. We want to minimize dysfunctional conflict and its negative consequences and utilize functional conflict to help produce better outcomes. Conflict management can be integrated into an organization's strategy, and processes for dealing with conflict can be implemented.

To review, see:

• Types of Phases of Conflict
• Conflict Is Good

5b. Explain how to effectively manage conflict and resolve conflict with others

• Should managers get involved in employee conflicts? Why?
• Why is it important for companies to monitor employee conflict?
• What is an example of how conflict can be resolved?
• Who might develop a conflict management plan?

Conflict management is a process for identifying and resolving conflicts in an effective manner that limits any disruption of the organization's tasks. For example, conflicts can sometimes become personal instead of simply disagreements. Conflict management techniques can help refocus people's attention back to the issues. Note that conflicts can grow from a simple misunderstanding to a verbal or physical abuse level if no intervention occurs.

This chart plots the different techniques by evaluating the level of cooperation between conflicting parties versus the level of competitiveness.

Here is a brief description of the five styles of conflict resolution:

• The collaboration conflict style seeks a positive outcome for all parties and uses open communication to collaborate.
• The competition conflict style uses power and pressure to compete with the other side in hopes they can win; this type is typically not concerned with the outcome for the competing side.
• The accommodation conflict style is typically not aggressive and will put the needs of others over their own needs.
• The compromise conflict style will work towards resolving the issue by ensuring each side gives up something to reach the result; typically, the result is something both sides agree on.
• The avoidance conflict style will avoid and ignore conflict at all costs, and a resolution may not be met.

If the parties cannot meet an agreement, then arbitration or mediation might occur. Arbitration occurs when both sides agree to an out-of-court resolution, and a third party listens to both sides and then states the resolution. The word of the arbitrator is the final word on the matter. Mediation occurs when a third party assists both sides in finding a resolution that is acceptable to both sides.

Creating a conflict management plan is one way an organization can plan for future conflict. Some resources might include an employee training program on conflict management consulting firms that can act as a mediator or assist in developing a conflict management plan. You can also ensure that many communication channels are available to people to express a concern, point out a problem, or seek help.

To review, see:

• Conflicts in Organizations
• Intra-Group Conflict and Team Quality

5c. Describe negotiation strategies

• What is the process of negotiation?
• What is BATNA?
• How can you resolve a workplace conflict?
• Should you teach employees the process of negotiation?

Many conflicts may be resolved through the process of negotiation. Negotiations typically require that the parties involved discuss the points of conflict through varying degrees of give and take, which may utilize an independent, outside referee to reach an accommodation. The stages of the negotiation process are investigation, determining your BATNA, presentation, bargaining, and then closure.

BATNA is one way to assist in resolving a conflict. BATNA stands for best alternative to a negotiated agreement. The BATNA tool helps organizations resolve differences by working through the process, which helps both sides realize what they will accept and what they won't accept. Most organizations will utilize the BATNA tool after any negotiation has failed. Once each party understands their lowest threshold for acceptance, a win-win resolution may be easier to find.

There are several ways to address conflicts in an organization. To effectively limit conflicts, an organization must be familiar with many techniques. Different levels of conflict will require a different response. Most of us would agree that it is better to have a win-win outcome, if possible, rather than a win-lose outcome.

To review, see:

• Basics of Negotiations
• Ethics in Negotiations

Unit 5 Vocabulary

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

• accommodation
• arbitration
• avoidance
• BATNA
• collaboration
• competition
• compromise
• conflict
• conflict management
• group conflict
• interpersonal conflict
• intrapersonal conflict
• mediation
• negotiation

Unit 6: Organizational Structure, Culture, and Managing Change

6a. Explain how and why organizations divide their tasks

• How would you define organizational structure?
• How are tasks divided amongst employees?
• Can an organizational structure be defined by a product or service? If so, how?
• Why is it important that an organization have formalization?

Numerous terms define organizational structure and how businesses operate at all levels. Organizational structure considers how best to organize individuals, departments, and/or teams to work together efficiently and reach company goals. Structures vary depending on factors such as size, product/service, physical facility layout, number of departments, and the kind of culture that you want to develop for your business.

Organizations will usually be structured as either centralized or decentralized. Centralization occurs when management is mostly at the top of an organization, and decentralization occurs when management is distributed evenly. This describes the decision-making process and information flow for the business. Formalization occurs when a company establishes standards, policies, and procedures that employees can follow; this ensures that all employees and customers are treated fairly. Hierarchical levels are seen with levels of authority, and the lower levels of an organization will implement any decisions; this type of hierarchy is seen in governmental and state agencies.

The decisions on what structure should be designed for any business need to consider many factors. What kind of culture is preferred for the organization? For example, if a team-based organization is preferred, the layout of the offices should support large, open areas where teams can meet. We will also think about the decision-making process and the amount of control that will need to be exercised. Will the management team make most of the decisions and pass them down through the organization, or will they empower employees to make more decisions?

Many of us are familiar with the organizational chart, the classic representation of a business' operations.

The organizational chart shows us the firm's various departments and identifies the management structure. As you can imagine, the organization charts can expand as firms grow, sometimes involving dozens of levels.

As companies continue to evaluate ways to improve performance and increase the satisfaction levels of shareholders, employees, and customers, new forms of organizational structure continue to emerge. Many changes in structure have resulted from the continuing study of organizational behavior and the application of the findings to current business operations.

There are many ways to structure an organization. The key is to consider all those choices and decide based on what will be the most beneficial for your organization's members and other stakeholders.

To review, see:

• The Influence of Corporate Culture on Employees
• Igniting Creativity to Transform Corporate Culture
• Organizational Structure

6b. Analyze organizational change and appropriate skills for accomplishing successful organizational changes

• What is organizational change?
• Why might an employee be resistant to change?
• How can a leader help to ensure their team sees change as positive?
• As a group, what occurs when employees resist change?

If there is one certainty in business, it is that the future is uncertain, or in other words, change is inevitable. Organizational change occurs when a company needs to stay ahead of the competition and thrive in the business world. Changes happen in the skills and work ethics of employees and the expectations of customers. Change is driven by the workforce, technology, the economy, world trends, competitor actions, and social trends. That's why businesses today need to be able to adapt to change and move quickly to meet new requirements. However, change is not so easy to achieve.

Although change can sometimes occur unexpectedly, in most cases, it results from an organization purposely deciding that a change is required. Many employees have witnessed good and bad changes in their organizations, and this has created employee resistance to additional changes.

In many instances, change can harm the members of an organization. These negative effects can result in concern or active resistance – deliberate behaviors aimed at blocking or impeding organizational change. Individuals may fear what a change may mean to their continued employment, opportunities for advancement, or compensation. They want employees to actively support those decisions, but resistance impacts how and if those changes are made. This chart shows this level of employee resistance:

Understanding that the members of your organization will have real concerns regarding change, managers have been trained before employees find out when change will occur. By keeping employees informed of upcoming changes, they may be better prepared. This diagram shows one method of enacting change:

To review, see:

• Organizational Change
• Strategies for Successful Organizational Change

6c. Explain the importance of cultural diversity in the workplace

• Why is cultural diversity important?
• How does organizational culture relate to cultural diversity?
• What assumptions might occur in the workplace?
• What is a company vision statement?

Cultural diversity involves appreciating the differences in employees in the workforce. Studies have shown that the more diverse an organization is, the higher its productivity is. When numerous people from various backgrounds look at a problem, they will all see the situation differently, and this is important to take into consideration from a business perspective.

Organizational culture is a system of shared assumptions, values, and beliefs that show people what is appropriate and inappropriate behavior. Assumptions occur when employees believe something even though there may not be any definitive proof of its existence; this is important to understand as a business culture may be based on these beliefs. An organization's culture should reinforce the importance and commitment to the organization's values. Dynamic, growing, and successful organizations create and sustain a culture that enables all the members of that organization to achieve their individual and group goals.

This diagram depicts the various dimensions of organizational culture. Different cultures have varying levels of these dimensions.

An organization's culture typically begins with the vision of its founder. The starting point might be found in the organization's vision statement, which tells internal and external stakeholders what the organization believes in. From there, many factors will influence the culture, including goals and objectives, employees, leadership, and rewards and punishments. To be effective, the culture must be assessed to verify that it is still true to the organization's vision, and adjustments must be made if it is not.

To ensure that the culture is understood and supported by the organization's members, care should be taken to bring in new members who are a good fit for the group. It is also important to focus on diversity and bring in various viewpoints to make the organization more culturally diverse and productive.

For an organization's culture to contribute positively to its success, it must create a sense of belonging for all members. The business culture influences the desired behaviors and commitments required to achieve the organization's goals.

To review, see:

• Organization, Culture, and Environment
• Culture Diversity

Unit 6 Vocabulary

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

• active resistance
• assumption
• centralization
• decentralization
• formalization
• hierarchical level
• organizational change
• organizational chart
• organizational culture
• organizational structure
• vision statement