THE BOOK: BUSINESS MANAGEMENT

AND ORGANIZATION
Module: Business English
SQ4R
Realized by: KHADIJA RADI
Supervised by: Ms. Samira Kasmi
 CHAPTER 1. THEORETICAL BACKGROUND

The first chapter will serve two purposes: The first is to equip you with the understanding you will need of the main key terms
you are going to be working with. However, you are not just given definitions. The idea is to offer you a way of developing
your own understanding of key concepts and to be able to evaluate the meanings others attach to the terms you will meet.
Secondly, Section 1 discusses the background to the subject so that you can appreciate why and how it has developed. The
different influences on its development are important. At first it may be difficult to see how this is relevant to your wanting to
understand business and management today, but the developments of today emerge from this background and are often
influenced by the major events and theories of the past.

This study adopts a gender perspective to analyze funding decisions made by an investment fund that invests equity stakes in
new ventures. Prior research has indicated that there is gender skewness in risk capital investments resulting from a
combination of demand- and supply-side issues. We apply signaling theory to examine the interface between demand and
supply to understand gender biases related to risk capital investments. In-depth analyses of decision documents from four
investment cases show that gender plays a role in the signals that are communicated in the prefunding entrepreneur investor
relationship.

1. Background

Let’s think about the concept of ‘organization’. Many definitions are possible, but most of these include the characteristics of
people, goals and structures. People are social beings and, by and large, tend to cooperate in interdependent relationships to
achieve common aims. Originally people formed simple family and tribal structures. Today we have evolved into a complex
society characterized by large, formal and increasingly global structures. For our purposes, then, we can define an
organization as: a social entity that provides the necessary structures to achieve specific aims.

For our purposes in this subject guide, we will understand the term business to mean: a commercial enterprise or
establishment that trades in goods or services.

We can define the business organization as: an entity that is both commercial and social, which provides the necessary
structures to achieve the central objective of trades in goods or services.

1.1. Understanding the business organization – a multidisciplinary approach

We are going to focus, in this section, on sociology, psychology, anthropology (the behavioral sciences) and economics, as
they will provide the major theoretical foundations for other sections in the guide.
Sociological perspectives: The main ways in which sociology informs us about business and management are to help explain:

• How people interact at work

• The effects of different organizational structures on people; sociology can particularly contribute to our understanding of
social relations within the organization, such as the interaction of employees, power relations and social groupings
• The ways in which business and management have impacts on wider society
The anthropology of organizations: Anthropology is the study of cultures and societies throughout the world, and shares
many of the features of sociology. The anthropologist spending time within the organization to develop an understanding of
the behavior patterns, social groupings, rituals, symbols and language within the organization or within a particular group of
employees. The detailed descriptive accounts made possible by this method, and the collection of data over a significant time
length, can yield useful results for understanding problems with organizational efficiency and social relations within the
organization.

The contributions of psychology: The approach of psychology is most useful for issues that are determined by the processes of
the mind. These include how individuals make decisions internally, their performance capabilities, how they can learn, and
how they respond to changing conditions. When exploring individual differences in relation to organizations, the personality is
important. Why might a manager want to assess the personality of an employee? Some examples of how an employee’s
personality could be important are:

• The likelihood that the employee will be suited to a particular type of job
• How successful an employee would be in a management role?
• The method of training that would be most effective
• The way that they interact and work with other employees.
The research methods employed by psychologists have helped business a great deal. They are used in several ways: First,
psychological tests have been adopted to assess the personality and intelligence of potential employees or for decisions about
promotions. Tests are also useful to assess the attitudes of employees, and so to try to identify conflicts with group or
organizational goals. Secondly, the experimental methods of psychology have been used to observe the effect of changes in
the workplace, such as in working conditions, or changes to the benefits received by employees.

Economic approaches to organizations: Economic theory is concerned with understanding the mechanism for the allocation of
limited resources to achieve unlimited wants. In a free market, the price system is the mechanism for allocating resources
between competing wants. Thus, markets allow the interaction of producers and consumers. One of the key elements in
business economics is the focus on those activities of the business that are related to profit maximisation. This assumes that
the overall mission of the organization is ultimately to create as much profit as possible, for as long as possible. This would
therefore be the guiding principle for all decisions made by managers, at all levels of the organization.

1.2. Decision making

Decision making is a key activity in the management of business organizations, ranging from the daily decisions related to
operations in the workplace, to the long-term decisions which will affect the future direction of the business organization.
1.3. The management role
The first reason managers are important is that organizations need their managerial skills and abilities more than ever in
these uncertain, complex, and chaotic times. As organizations deal with today’s challenges—the worldwide economic climate,
changing technology, ever-increasing globalization, and so forth—managers play an important role in identifying critical issues
and crafting responses. Another reason manager is important to organizations is that they’re critical to getting things done.
Finally, managers do matter to organizations! How do we know that? The Gallup Organization, which has polled millions of
employees and tens of thousands of managers, has found that the single most important variable in employee productivity
and loyalty isn’t pay or benefits or workplace environment; it’s the quality of the relationship between employees and their
direct supervisors.

A manager is someone who coordinates and oversees the work of other people so that organizational goals can be
accomplished. A manager’s job is not about personal achievement—it’s about helping others do their work. Is there a way to
classify managers in organizations? In traditionally structured organizations managers can be classified as first- line, middle, or
top.

Figure 1.1. Common terms used to describe managers in an organizational hierarchy

It’s obvious that managers do their work in organizations. But what is an organization? It’s a deliberate arrangement of people
to accomplish some specific purpose. Your college or university is an organization; so are fraternities and sororities,
government departments, churches, Facebook, your neighborhood grocery store, the United Way, the St. Louis Cardinals
baseball team, and the Mayo Clinic. All are considered organizations and have three common characteristics. First, an
organization has a distinct purpose. Second, each organization is composed of people. Third, all organizations develop some
deliberate structure within which members do their work. That structure may be open and flexible, with no specific job duties
or strict adherence to explicit job arrangements.

Management involves coordinating and overseeing the work activities of others so that their activities are completed
efficiently and effectively. We already know that coordinating and overseeing the work of others is what distinguishes a
managerial position from a no managerial one. However, this doesn’t mean that managers can do what they want anytime,
anywhere, or in any way. Instead, management involves ensuring that work activities are completed efficiently and effectively
by the people responsible for doing them, or at least that’s what managers aspire to do. Efficiency refers to getting the most
output from the least amount of inputs. Management is also concerned with being effective, completing activities so that
organizational goals are attained. Effectiveness is often described as “doing the right things”—that is, doing those work
activities that will help the organization reach its goals.

Because organizations exist to achieve some particular purpose, someone must define that purpose and the means for its
achievement. Managers are that someone. As managers engage in planning, they set goals, establish strategies for achieving
those goals, and develop plans to integrate and coordinate activities. Managers are also responsible for arranging and
structuring work to accomplish the organization’s goals. We call this function organizing. Every organization has people, and a
manager’s job is to work with and through people to accomplish goals. This is the leading function. The final management
function is controlling. After goals and plans are set (planning), tasks and structural arrangements put in place (organizing),
and people hired, trained, and motivated (leading), there has to be some evaluation of whether things are going as planned.

In today’s world, managers are dealing with global economic and political uncertainties, changing workplaces, ethical issues,
security threats, and changing technology.

Figure 1.2. Changing and impact of change

You may be wondering why you need to study management. If you’re majoring in accounting or marketing or any field other
than management, you may not understand how studying management is going to help you in your career. We can explain
the value of studying management by looking at three things: the universality of management and the reality of work.

2. Universality of management:

The reality that management is needed in all types and sizes of organizations, at all organizational levels, in all organizational
areas, and in organizations no matter where located.

Figure 1.3. Management is needed in all types

2.1. The Reality of Work

Another reason for studying management is the reality that for most of you, once you graduate from college and begin your
career, you will either manage or be managed. For those who plan to be managers, an understanding of management forms
the foundation upon which to build your management skills.

Omnipotent view of management: The view that managers are directly responsible for an organization’s success or failure.

Symbolic view of management: The view that much of an organization’s success or failure is due to external forces outside

managers’ control.

Organizational culture has been described as the shared values, principles, traditions, and ways of doing things that influence
the way organizational members act. In most organizations, these shared values and practices have evolved over time and
determine, to a large extent, how “things are done around here.”
 Figure 1.4: Organizational Culture
CHAPTER 2. MANAGEMENT AND BUSINESS ORGANIZATION

1. Integrative Managerial Issues

One important feature of today’s global environment is global trade which, if you remember history class, isn’t new. Countries
and organizations have been trading with each other for centuries. Global trade today is shaped by two forces: regional
trading alliances and trade mechanisms that ensure that global trade can happen. When organizations do go international,
they often use different approaches. Managers who want to get into a global market with minimal investment may start with
global sourcing (also called global outsourcing), which is purchasing materials or labor from around the world wherever it is
cheapest. The goal: take advantage of lower costs in order to be more competitive.
 Figure 2.1. How Organizations Go Global

1.1. Managing in a Global Environment

1.1.1. The economic environment
A global manager must be aware of economic issues when doing business in other countries.
First, it’s important to understand a country’s type of economic system. The two major types are a free market economy and
a planned economy. A free market economy is one in which resources are primarily owned and controlled by the private
sector. A planned economy is one in which economic decisions are planned by a central government. Actually, no economy is
purely free market or planned. For instance, the United States and United Kingdom are toward the free market end of the
spectrum but do have governmental intervention and controls. The economies of Vietnam and North Korea are more
planned. China is also a more planned economy, but until recently had been moving toward being more free market. Why
would managers need to know about a country’s economic system? Because it, too, has the potential to constrain decisions.
Other economic issues managers need to understand include currency exchange rates, inflation rates, and diverse tax policies.

1.1.2. The political/legal environment

U.S. managers are accustomed to a stable legal and political system. Changes tend to be slow, and legal and political
procedures are well established. Elections are held at regular intervals, and even when the political party in power changes
after an election, it’s unlikely that anything too radical will happen. The stability of laws allows for accurate predictions.
However, this certainly isn’t true for all countries.

1.1.3. The cultural environment

Organizations have different cultures. Countries have cultures too. National culture includes the values and attitudes shared
by individuals from a specific country that shape their behavior and their beliefs about what is important. Which is more

important to a manager— national culture or organizational culture? Research indicates that national culture has a greater
effect on employees than does their organization’s culture.

1.1.4. Global Management in Today’s World

Doing business globally today isn’t easy! As we look at managing in today’s global environment, we want to focus on two
important aspects. The first aspect involves the challenges associated with globalization, especially in relation to the openness
that’s part of being global. The second aspect revolves around the challenges of managing a global workforce.

As globalization continues to be important for businesses, it’s obvious that managers need to understand how to best manage
that global workforce. Some researchers have suggested that managers need cultural intelligence or cultural awareness and
sensitivity skills. Cultural intelligence encompasses three main dimensions: (1) knowledge of culture as a concept—how
cultures vary and how they affect behavior; (2) mindfulness— the ability to pay attention to signals and reactions in different
cross-cultural situations; and (3) behavioral skills—using one’s knowledge and mindfulness to choose appropriate behaviors in
those situations.

1.2. Managing Diversity

1.2.1. Diversity

Diversity has been “one of the most popular business topics over the last two decades. It ranks with modern business
disciplines such as quality, leadership, and ethics. Despite this popularity, it’s also one of the most controversial and least
understood topics. What’s our definition of workplace diversity? We’re defining it as the ways in which people in an
organization are different from and similar to one another. Notice that our definition not only focuses on the differences, but
the similarities of employees.

1.2.2. Types of Workplace Diversity

As we’ve seen so far, diversity is a big issue, and an important issue, in today’s workplaces. What types of dissimilarities—that
is, diversity—do we find in those workplaces? Figure 2.1 shows several types of workplace diversity.
 Figure 2.2. Types of Diversity Found in Workplaces

1.2.3. Challenges in Managing Diversity

Despite the benefits that we know workforce diversity brings to organizations, managers still face challenges in creating
accommodating and safe work environments for diverse employees. In this section, we’re going to look at two of those
challenges: personal bias and the glass ceiling.

Bias is a term that describes a tendency or preference toward a particular perspective or ideology. It’s generally seen as a
“one-sided” perspective. Our personal biases cause us to have preconceived opinions about people or things. One outcome of
our personal biases can be prejudice, a preconceived belief, opinion, or judgment toward a person or a group of people. Our
prejudice can be based on all the types of diversity we discussed: race, gender, ethnicity, age, disability, religion, sexual
orientation, or even other personal characteristics. A major factor in prejudice is stereotyping, which is judging a person on
the basis of one’s perception of a group to which he or she belongs. For instance, “Married persons are more stable
employees than single persons” is an example of stereotyping. Both prejudice and stereotyping can lead to someone treating
others who are members of a particular group unequally. That’s what we call discrimination, which is when someone acts out
their prejudicial attitudes toward people who are the targets of their prejudice. Discrimination, whether intentional or not,
can lead to serious negative consequences for employers. But it’s not just the potential financial consequences organizations
and managers face for discriminatory actions. It’s the reduced employee productivity, negative and disruptive interpersonal
conflicts, increased employee turnover, and overall negative climate that can lead to serious problems for managers. Even if
an organization has never had an employment discrimination lawsuit filed against it, managers need to aggressively work to
eliminate unfair discrimination.

In the 1980s, the term glass ceiling, first used in a Wall Street Journal article, refers to the invisible barrier that separates
women and minorities from top management positions. Research on the glass ceiling has looked at identifying the
organizational practices and interpersonal biases that have blocked women’s advancement. Findings from those studies have
ranged from lack of mentoring, sex stereotyping, views that associate masculine traits with leader effectiveness, and bosses’
perceptions of family–work conflict

1.2.4. Workplace Diversity Initiatives

Workplace diversity management initiatives include top management commitment to diversity; mentoring, which is a process
whereby an experienced organizational member provides advice and guidance to a less-experienced member; diversity skills
training; and employee resource groups, which are groups made up of employees connected by some common dimension of
diversity

1.3. Managing Social Responsibility and Ethics

1.3.1. Social Responsibility
Social obligation is when a firm engages in social actions because of its obligation to meet certain economic and legal
responsibilities. The organization does what it’s obligated to do and nothing more. This idea reflects the classical view of social
responsibility, which says that management’s only social responsibility is to maximize profits. We define social responsibility
as a business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for
society. Our definition assumes that a business obeys the law and cares for its stockholders, but adds an ethical imperative to
do those things that make society better and not to do those that make it worse. A socially responsible organization does
what is right because it feels it has an ethical responsibility to do so.

1.3.2. Managers and Ethical Behavior

As managers plan, organize, lead, and control, they must consider ethical dimensions. What do we mean by ethics? We’re
defining it as the principles, values, and beliefs that define right and wrong decisions and behavior. Many decisions that
managers make require them to consider both the process and who’s affected by the result. An organization’s managers do
play an important role here. They’re responsible for creating an environment that encourages employees to embrace the
culture and the desired values as they do their jobs. In fact, research shows that the behavior of managers is the single most
important influence on an individual’s decision to act ethically or unethically. A strong culture exerts more influence on
employees than a weak one. If a culture is strong and supports high ethical standards, it has a powerful and positive influence
on the decision to act ethically or unethically.
1.3.3. Social Responsibility and Ethics Issues in Today’s World

Managers can manage ethical lapses and social irresponsibility by being strong ethical leaders and by protecting employees
who raise ethical issues. The example set by managers has a strong influence on whether employees behave ethically. Ethical
leaders also are honest, share their values, stress important shared values, and use the reward system appropriately.
Managers can protect whistle-blowers (employees who raise ethical issues or concerns) by encouraging them to come
forward, by setting up toll-free ethics hotlines, and by establishing a culture in which employees can complain and be heard
without fear of reprisal. Social entrepreneurs play an important role in solving social problems by seeking out opportunities to
improve society by using practical, innovative, and sustainable approaches. Social entrepreneurs want to make the world a
better place and have a driving passion to make that happen. Businesses can promote positive social change through
corporate philanthropy and employee volunteering efforts.

1.4. Managing Change and Innovation

1.4.1. Types of Organizational Change

We classify these changes as organizational change, which is any alteration of people, structure, or technology. Organizational
changes often need someone to act as a catalyst and assume the responsibility for managing the change process—that is, a
change agent. Change agents can be a manager within the organization, but could be a no manager. Changing structure
includes any change in structural variables such as reporting relationships, coordination mechanisms, employee
empowerment, or job redesign. Changing technology encompasses modifications in the way work is performed or the
methods and equipment that are used. Changing people refers to changes in attitudes, expectations, perceptions, and
behavior of individuals or groups.

1.4.2. Contemporary Issues in Managing Change

The shared values that comprise an organization’s culture are relatively stable, which makes it difficult to change. Managers
can do so by being positive role models; creating new stories, symbols, and rituals; selecting, promoting, and supporting
employees who adopt the new values; redesigning socialization processes; changing the reward system, clearly specifying
expectations; shaking up current subcultures; and getting employees to participate in change. Stress is the adverse reaction
people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities. To help
employees deal with stress, managers can address job-related factors by making sure an employee’s abilities match the job
requirements, improve organizational communications, use a performance planning program, or redesign jobs. Addressing
personal stress factors is trickier, but managers could offer employee counseling, time management programs, and wellness
programs. Making change happen successfully involves focusing on making the organization change capable, making sure
managers understand their own role in the process, and giving individual employees a role in the process.

1.4.3. Stimulating Innovation

Creativity is the ability to combine ideas in a unique way or to make unusual associations between ideas. Innovation is turning
the outcomes of the creative process into useful products or work methods. Important structural variables include an organic-
type structure, abundant resources, frequent communication between organizational units, minimal time pressure, and
support. Important cultural variables include accepting ambiguity, tolerating the impractical, keeping external controls
minimal, tolerating risk, tolerating conflict, focusing on ends not means, using an open-system focus, providing positive
feedback, and being an empowering leader. Important human resource variables include high commitment to training and
development, high job security, and encouraging individuals to be idea champions.

Figure 2.3. Innovations variables

2. Planning

Planning (also called forethought) is the process of thinking about and organizing the activities required to achieve a desired
goal. It involves the creation and maintenance of a plan, such as psychological aspects that require conceptual skills. There are
even a couple of tests to measure someone’s capability of planning well. As such, planning is a fundamental property of
intelligent behavior.

Also, planning has a specific process and is necessary for multiple occupations (particularly in fields such as management,
business, etc.). In each field there are different types of plans that help companies achieve efficiency and effectiveness. An
important, albeit often ignored aspect of planning, is the relationship it holds to forecasting. Forecasting can be described as
predicting what the future will look like, whereas planning predicts what the future should look like for multiple scenarios.
Planning combines forecasting with preparation of scenarios and how to react to them. Planning is one of the most important
project management and time management techniques. Planning is preparing a sequence of action steps to achieve some
specific goal. If a person does it effectively, he can reduce much the necessary time and effort of achieving the goal. A plan is
like a map. When following a plan, he can always see how much he has progressed towards his project goal and how far he is
from his destination.

2.1. Foundations of Planning

Planning involves defining the organization’s goals, establishing an overall strategy for achieving those goals, and developing
plans for organizational work activities. The four purposes of planning include providing direction, reducing uncertainty,
minimizing waste and redundancy, and establishing the goals or standards used in controlling. Studies of the planning-
performance relationship have concluded that formal planning is associated with positive financial performance, for the most
part; it’s more important to do a good job of planning and implementing the plans than doing more extensive planning; the
external environment is usually the reason why companies that plan don’t achieve high levels of performance; and the
planning-performance relationship seems to be influenced by the planning time frame.

2.1.1. Goals and Plans

Goals are desired outcomes. Plans are documents that outline how goals are going to be met. Goals might be strategic or
financial and they might be stated or real. Strategic plans apply to the entire organization while operational plans encompass
a particular functional area. Long- term plans are those with a time frame beyond three years. Short-term plans cover one
year or less. Specific plans are clearly defined and leave no room for interpretation. Directional plans are flexible and set out
general guidelines. A single-use plan is a one-time plan designed to meet the needs of a unique situation. Standing plans are
ongoing plans that provide guidance for activities performed repeatedly.

Figure 3.1: types of plans

2.1.2. Setting Goals and Developing Plans

In traditional goal setting, goals are set at the top of the organization and then become sub goals for each organizational area.
MBO (management by objectives) is a process of setting mutually agreed-upon goals and using those goals to evaluate
employee performance. Well-written goals have six characteristics: (1) written in terms of outcomes, (2) measurable and
quantifiable, (3) clear as to time frame, (4) challenging but attainable, (5) written down, and (6) communicated to all
organizational members who need to know them. Goal setting involves these steps: review the organization’s mission;
evaluate available resources; determine the goals individually or with input from others; write down the goals and
communicate them to all who need to know them; and review results and change goals as needed. The contingency factors
that affect planning include the manager’s level in the organization, the degree of environmental uncertainty, and the length
of future commitments. The two main approaches to planning include the traditional approach, which has plans developed by
top managers that flow down through other organizational levels and which may use a formal planning department. The
other approach is to involve more organizational members in the planning process.

2.1.3. Contemporary Issues in Planning

One contemporary planning issue is planning in dynamic environments, which usually means developing plans that are
specific but flexible. Also, it’s important to continue planning even when the environment is highly uncertain. Finally, because
there’s little time in a dynamic environment for goals and plans to flow down from the top, lower organizational levels

should be allowed to set goals and develop plans. Another contemporary planning issue involves using environmental
scanning to help do a better analysis of the external environment. One form of environmental scanning, competitive
intelligence, can be especially helpful in finding out what competitors are doing.

2.2. Strategic Management

Strategic management is what managers do to develop the organization’s strategies. Strategies are the plans for how the
organization will do whatever it’s in business to do, how it will compete successfully, and how it will attract and satisfy its
customers in order to achieve its goals. A business model is how a company is going to make money. Strategic management is
important for three reasons. First, it makes a difference in how well organizations perform. Second, it’s important for helping
managers cope with continually changing situations.

Finally, strategic management helps coordinate and focus employee efforts on what’s important.

2.2.1. The strategic management process

(see figure 3.2) is a six-step process that encompasses strategy planning, implementation, and evaluation.
2.2.2. Corporate Strategies
A growth strategy is when an organization expands the number of markets served or products offered, either through current
or new businesses. The types of growth strategies include concentration, vertical integration (backward and forward),
horizontal integration, and diversification (related and unrelated). A stability strategy is when an organization makes no
significant changes in what it’s doing. Both renewal strategies— retrenchment and turnaround—address organizational
weaknesses that are leading to performance declines. The BCG matrix is a way to analyze a company’s portfolio of businesses
by looking at a business’s market share and its industry’s anticipated growth rate. The four categories of the BCG matrix are
cash cows, stars, question marks, and dogs.

2.2.3. Competitive Strategies

An organization’s competitive advantage is what sets it apart, its distinctive edge. A company’s competitive advantage
becomes the basis for choosing an appropriate competitive strategy. Porter’s five forces model assesses the five competitive
forces that dictate the rules of competition in an industry: threat of new entrants, threat of substitutes, bargaining power of
buyers, bargaining power of suppliers, and current rivalry. Porter’s three competitive strategies are as follows: cost leadership
(competing on the basis of having the lowest costs in the industry), differentiation (competing on the basis of having unique
products that are widely valued by customers), and focus (competing in a narrow segment with either a cost advantage or a
differentiation advantage)

2.2.4. Current Strategic Management Issues

Managers face three current strategic management issues: strategic leadership, strategic flexibility, and important types of
strategies for today’s environment. Strategic leadership is the ability to anticipate, envision, maintain flexibility, think
strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the
organization and includes eight key dimensions. Strategic flexibility—that is, the ability to recognize major external
environmental changes, to quickly commit resources, and to recognize when a strategic decision isn’t working— is important
because managers often face highly uncertain environments. Managers can use e-business strategies to reduce costs, to
differentiate their firm’s products and services, to target (focus on) specific customer groups, or to lower costs by
standardizing certain office functions. Another important e-business strategy is the clicks and-bricks strategy, which combines
online and traditional stand-alone locations. Strategies managers can use to become more customer oriented include giving
customers what they want, communicating effectively with them, and having a culture that emphasizes customer service.
Strategies managers can use to become more innovative include deciding their organization’s innovation emphasis (basic
scientific research, product development, or process development) and its innovation timing (first mover or follower).

3. Organizing
Organizing is a systematic process of structuring, integrating, coordinating task goals, and activities to resources in order to
attain objectives.

3.1. Basic Organizational Design

3.1.1. Designing Organizational Structure

The key elements in organizational design are work specialization, chain of command, span of control, departmentalization,
centralization-decentralization, and formalization. Traditionally, work specialization was viewed as a way to divide work
activities into separate job tasks.
Today’s view is that it is an important organizing mechanism but it can lead to problems. The chain of command and its
companion concepts—authority, responsibility, and unity of command—were viewed as important ways of maintaining
control in organizations. The contemporary view is that they are less relevant in today’s organizations. The traditional view of
span of control was that managers should directly supervise no more than five to six individuals. The contemporary view is
that the span of control depends on the skills and abilities of the manager and the employees and on the characteristics of the
situation. The various forms of departmentalization are as follows: Functional groups jobs by functions performed; product
groups jobs by product lines; geographical groups jobs by geographical region; process groups jobs on product or customer
flow; and customer groups jobs on specific and unique customer groups. Authority refers to the rights inherent in a
managerial position to tell people what to do and to expect them to do it. The acceptance view of authority says that
authority comes from the willingness of subordinates to accept it. Line authority entitles a manager to direct the work of an
employee. Staff authority refers to functions that support, assist, advise, and generally reduce some of managers’
informational burdens. Responsibility is the obligation or expectation to perform assigned duties. Unity of command states
that a person should report to only one manager. Centralization- decentralization is a structural decision about who makes
decisions—upper-level managers or lower-level employees. Formalization concerns the organization’s use of standardization
and strict rules to provide consistency and control.

3.1.2. Traditional Organizational Design

A simple structure is one with low departmentalization, wide spans of control, authority centralized in a single person, and
little formalization. A functional structure groups similar or related occupational specialties together. A divisional structure is
made up of separate business units or divisions.

3.2. Adaptive Organizational Design

In a team structure, the entire organization is made up of work teams. The matrix structure assigns specialists from different
functional departments to work on one or more projects being led by project managers. A project structure is one in which
employees continuously work on projects. A virtual organization consists of a small core of fulltime employees and outside
specialists temporarily hired as needed to work on projects. A network organization is an organization that uses its own
employees to do some work activities and networks of outside suppliers to provide other needed product components o
work processes. A learning organization is one that has developed the capacity to continuously learn, adapt, and change. It
has certain structural characteristics including an emphasis on sharing information and collaborating on work activities,
minimal structural and physical barriers, and empowered work team.

Flexible work arrangements give organizations the flexibility to deploy employees when and where they’re needed. Structural
options include telecommuting, compressed workweeks, flextime, and job sharing. Telecommuting is a work arrangement in
which employees work at home and are linked to the workplace by computer. A compressed workweek is one in which
employees work longer hours per day but fewer days per week. Flextime is a scheduling system in which employees are
required to work a specific number of hours a week but are free to vary those hours within certain limits. Job sharing is when
two or more people split a full-time job.

3.3. Managing Human Resources

Human research management is important for three reasons. First, it can be a significant source of competitive advantage.
Second, it’s an important part of organizational strategies. Finally, the way organizations treat their people has been found to
significantly impact organizational performance. The external factors that most directly affect the human research
management process are the economy, labor unions, legal environment, and demographic trends.

Figure 4.1. Human Resource Management

3.3.1. Managing Teams

A group is two or more interacting and interdependent individuals who come together to achieve specific goals. Formal
groups are work groups that are defined by the organization’s structure and have designated work assignments and specific
tasks directed at accomplishing organizational goals. Informal groups are social groups. The forming stage consists of two
phases: joining the group and defining the group’s purpose, structure, and leadership. The storming stage is one of intragroup
conflict over who will control the group and what the group will be doing. The norming stage is when close relationships and
cohesiveness develop as norms are determined. The performing stage is when group members began to work on the group’s
task. The adjourning stage is when the group prepares to disband.

The major components that determine group performance and satisfaction include external conditions, group member
resources, group structure, group processes, and group tasks. External conditions, such as availability of resources,
organizational goals, and other factors, affect work groups. Group member resources (knowledge, skills, abilities, personality
traits) can influence what members can do and how effectively they will perform in a group. Group roles generally involve
getting the work done or keeping group members happy. Group norms are powerful influences on a person’s performance
and dictate things such as work output levels, absenteeism, and promptness. Pressures to conform can heavily influence a
person’s judgment and attitudes. If carried to extremes, groupthink can be a problem. Status systems can be a significant
motivator with individual behavioral consequences, especially if incongruence is a factor. What size group is most effective
and efficient depends on the task the group is supposed to accomplish. Cohesiveness is related to a group’s productivity.
Group decision making and conflict management are important group processes that play a role in performance and
satisfaction. If accuracy, creativity, and degree of acceptance are important, a group decision may work best. Relationship
conflicts are almost always dysfunctional. Low levels of process conflicts and low-to-moderate levels of task conflicts are
functional. Effective communication and controlled conflict are most relevant to group performance when tasks are complex
and interdependent.

The challenges of managing global teams can be seen in the group member resources, especially the diverse cultural
characteristics; group structure, especially conformity, status, social loafing, and cohesiveness; group processes, especially
with communication and managing conflict; and the manager’s role in making it all work. With the emphasis on teams in
today’s organizations, managers need to recognize that people don’t automatically know how to be part of a team or to be an
effective team member. Like any behavior, team members have to learn about the skill and then keep practicing and
reinforcing it. In building team skills, managers must view their role as more of being a coach and developing others in order
to create more committed, collaborative, and inclusive teams. Managers need to understand the patterns of informal
connections among individuals within groups because those informal social relationships can help or hinder the group’s
effectiveness.

4. Leading
4.1. Understanding Individual Behavior

Just like an iceberg, it’s the hidden organizational elements (attitudes, perceptions, norms, etc.) that make understanding
individual behavior so challenging.
 Figure 4.1. Organization as Iceberg
Organization behavior (OB) focuses on three areas: individual behavior, group behavior, and organizational aspects. The goals
of OB are to explain, predict, and influence behavior. Employee productivity is a performance measure of both efficiency and
effectiveness. Absenteeism is the failure to report to work. Turnover is the voluntary and involuntary permanent withdrawal
from an organization. Organizational citizenship behavior (OCB) is discretionary behavior that’s not part of an employee’s
formal job requirements but it promotes the effective functioning of an organization. Job satisfaction is an individual’s general
attitude toward his or her job. Workplace misbehavior is any intentional employee behavior that is potentially harmful to the
organization or individuals within the organization.

4.1.1. Attitudes and Job Performance

The cognitive component refers to the beliefs, opinions, knowledge, or information held by a person. The affective
component is the emotional or feeling part of an attitude. The behavioral component refers to an intention to behave in a
certain way toward someone or something.

Job satisfaction refers to a person’s general attitude toward his or her job. Job involvement is the degree to which an
employee identifies with his or her job, actively participates in it, and considers his or her job performance to be important to
his or her self-worth. Organizational commitment is the degree to which an employee identifies with a particular organization
and its goals and wishes to maintain membership in that organization. Employee engagement is when employees are
connected to, satisfied with, and enthusiastic about their jobs. Job satisfaction positively influences productivity, lowers
absenteeism levels, lowers turnover rates, promotes positive customer satisfaction, moderately promotes OCB, and helps
minimize workplace misbehavior. Individuals try to reconcile attitude and behavior inconsistencies by altering their attitudes,
altering their behavior, or rationalizing the inconsistency.
4.1.2. Personality
The MBTI measures four dimensions: social interaction, preference for gathering data, preference for decision making, and
style of making decisions. The Big Five Model consists of five personality traits: extraversion, agreeableness,
conscientiousness, emotional stability, and openness to experience. The five personality traits that help explain individual
behavior in organizations are locus of control, Machiavellianism, self-esteem, self-monitoring, and risk- taking. Other
personality traits include Type A/Type B personalities, proactive personality, and resilience. How a person responds
emotionally and how they deal with their emotions is a function of personality. A person who is emotionally intelligent has
the ability to notice and to manage emotional cues and information.

In recent years, research has shown that five basic personality dimensions underlie all others and encompass most of the
significant variation in human personality.49 The five personality traits in the Big Five Model are: 1. Extraversion: The degree
to which someone is sociable, talkative, assertive, and comfortable in relationships with others. 2. Agreeableness: The degree
to which someone is good-natured, cooperative, and trusting. 3. Conscientiousness: The degree to which someone is reliable,
responsible, dependable, persistent, and achievement oriented. 4. Emotional stability: The degree to which someone is calm,
enthusiastic, and secure (positive) or tense, nervous, depressed, and insecure (negative). 5. Openness to experience: The
degree to which someone has a wide range of interests and is imaginative, fascinated with novelty, artistically sensitive, and
intellectual.

We can’t leave the topic of personality without looking at the important behavioral aspect of emotions. How we respond
emotionally and how we deal with our emotions are typically functions of our personality. Emotions are intense feelings that
are directed at someone or something. They’re object-specific; that is, emotions are reactions to an object. For instance,
when a work colleague criticizes you for the way you spoke to a client, you might become angry at him. That is, you show
emotion (anger) toward a specific object (your colleague). Because employees bring an emotional component with them to
work every day, managers need to understand the role that emotions play in employee behavior. How many emotions are
there? Although you could probably name several dozen, research has identified six universal emotions: anger, fear, sadness,
happiness, disgust, and surprise. Do these emotions surface in the workplace? Absolutely! I get angry after receiving a poor
performance appraisal. I fear that I could be laid off as a result of a company cutback. I’m sad about one of my coworkers
leaving to take a new job in another city. I’m happy after being selected as employee-of-the- month. I’m disgusted with the
way my supervisor treats women on our team. And I’m surprised to find out that management plans a complete restructuring
of the company’s retirement program.

4.1.3. Perception
Perception is how we give meaning to our environment by organizing and interpreting sensory impressions. Because people
behave according to their perceptions, managers need to understand it. The characteristics of the target being observed can
also affect what’s perceived. Loud people are more likely than quiet people to be noticed in a group as are extremely
attractive or unattractive individuals. The relationship of a target to its background also influences perception, as does our
tendency to group close things and similar things together. You can experience these tendencies by looking at the visual
perception examples shown in Figure 5.2. Notice how what you see changes as you look differently at each one.
 Figure 5.2. What Do You See?
Attribution theory depends on three factors. Distinctiveness is whether an individual displays different behaviors in different
situations (that is, is the behavior unusual). Consensus is whether others facing a similar situation respond in the same way.
Consistency is when a person engages in behaviors regularly and consistently. Whether these three factors are high or low
helps managers determine whether employee behavior is attributed to external or internal causes. The fundamental
attribution error is the tendency to underestimate the influence of external factors and overestimate the influence of internal
factors. The self- serving bias is the tendency to attribute our own successes to internal factors and to put the blame for
personal failure on external factors. Three shortcuts used in judging others are assumed similarity, stereotyping, and the halo
effect.

Managers need to recognize that their employees react to perceptions, not to reality. So whether a manager’s appraisal of an
employee’s performance is actually objective and unbiased or whether the organization’s wage levels are among the highest
in the community is less relevant than what employees perceive them to be. If individuals perceive appraisals to be biased or
wage levels as low, they’ll behave as if those conditions actually exist. Employees organize and interpret what they see, so the
potential for perceptual distortion is always present. The message is clear: Pay close attention to how employees perceive
both their jobs and management actions.

4.1.4. Learning
Operant conditioning argues that behavior is a function of its consequences. Managers can use it to explain, predict, and
influence behavior. Social learning theory says that individuals learn by observing what happens to other people and by
directly experiencing something. Managers can shape behavior by using positive reinforcement (reinforcing a desired
behavior by giving something pleasant), negative reinforcement (reinforcing a desired response by withdrawing something
unpleasant), punishment (eliminating undesirable behavior by applying penalties), or extinction (not reinforcing a behavior to
eliminate it).
4.2. Social Learning
Some 60 percent of the Radio City Rocketed have danced in prior seasons. The veterans help newcomers with “Rocketed
style”—where to place their hands, how to hold their hands, how to keep up stamina, and so forth.87 As the Rocketed are
well aware, individuals can also learn by observing what happens to other people and just by being told about something as
well as by direct experiences. Much of what we have learned comes from watching others (models)—parents, teachers,
peers, television and movie actors, managers, and so forth. This view that we can learn both through observation and direct
experience is called social learning theory. The influence of others is central to the social learning viewpoint. The amount of
influence that these models have on an individual is determined by four processes: learning Any relatively permanent change
in behavior that occurs as a result of experience operant conditioning A theory of learning that says behavior is a function of
its consequences social learning theory A theory of learning that says people can learn through observation and direct
experience shaping behavior The process of guiding learning in graduated steps using reinforcement or lack of reinforcement
1. Attentional processes. People learn from a model when they recognize and pay attention to its critical features. We’re most
influenced by models who are attractive, repeatedly available, thought to be important, or seen as similar to us. Retention
processes. A model’s influence will depend on how well the individual remembers the model’s action, even after the model is
no longer readily available. 3. Motor reproduction processes. After a person has seen a new behavior by observing the model,
the watching must become doing. This process then demonstrates that the individual can actually do the modeled activities.
4. Reinforcement processes. Individuals will be motivated to exhibit the modeled behavior if positive incentives or rewards
are provided. Behaviors that are reinforced will be given more attention, learned better, and performed more often. Shaping:
A Managerial Tool Because learning takes place on the job as well as prior to it, managers are concerned with how they can
teach employees to behave in ways that most benefit the organization. Thus, managers will often attempt to “mold”
individuals by guiding their learning in graduated steps, through a method called shaping behavior. Consider the situation in
which an employee’s behavior is significantly different from that sought by a manager. If the manager reinforced the
individual only when he or she showed desirable responses, the opportunity for reinforcement might occur too infrequently.
Shaping offers a logical approach toward achieving the desired behavior. We shape behavior by systematically reinforcing
each successive step that moves the individual closer to the desired behavior. If an employee who has chronically been a half-
hour late for work comes in only 20 minutes late, we can reinforce the improvement. Reinforcement would increase as an
employee gets closer to the desired behavior. Four ways to shape behavior include positive reinforcement, negative
reinforcement, punishment, and extinction. When a behavior is followed by something pleasant, such as praising an employee
for a job well done, it’s called positive reinforcement

4.3. Managers and Communication

Communication is the transfer and understanding of meaning. Interpersonal communication is communication between two
or more people. Organizational communication includes all the patterns, networks, and systems of communication within an
organization. The functions of communication include controlling employee behavior, motivating employees, providing a
release for emotional expression of feelings and fulfillment of social needs, and providing information.

4.3.1. Methods of Interpersonal Communication

Before communication can take place, a purpose, expressed as a message to be conveyed, must exist. It passes between a
source (the sender) and a receiver. The message is converted to symbolic form (called encoding) and passed by way of some
medium (channel) to the receiver, who retranslates the sender’s message (called decoding). The result is the transfer of
meaning from one person to another

The communication process contains seven elements. First, a sender has a message. A message is a purpose to be conveyed.
Encoding converts a message into symbols. A channel is the medium a message travels along. Decoding happens when the
receiver retranslates a sender’s message. Finally, feedback occurs. Managers can evaluate the various communication
methods according to their feedback, complexity capacity, breadth potential, confidentiality, encoding ease, decoding ease,
time-space constraint, cost, interpersonal warmth, formality, scalability, and time of consumption. The communication
methods include face-to-face, telephone, group meetings, formal presentations, memos, traditional mail, fax, employee
publications, bulletin boards, other company publications, audio- and videotapes, hotlines, e-mail, computer conferencing,
voice mail, teleconferences, and videoconferences.

Figure 5.3 illustrates the elements of the communication process. Note that the entire process is susceptible to noise—
disturbances that interfere with the transmission, receipt, or feedback of a message. Typical examples of noise include
illegible print, phone static, inattention by the receiver, or background sounds of machinery or coworkers. However, anything
that interferes with understanding can be noise, and noise can create distortion at any point in the communication process.

Figure 5.3. The Interpersonal Communication Process

4.3.2. Effective Interpersonal Communication

The barriers to effective communication include filtering, emotions, information overload, defensiveness, language, and
national culture. Managers can overcome these barriers by using feedback, simplifying language, listening actively,
constraining emotions, and watching for nonverbal clues.

4.3.3. Organizational Communication

Formal Versus Informal Communication Communication within an organization is described as formal or informal. Formal
communication refers to communication that takes place within prescribed organizational work arrangements. For example,
when a manager asks an employee to complete a task, that’s formal communication. Another example of formal
communication occurs when an employee communicates a problem to his or her manager.
Informal communication is organizational communication not defined by the organization’s structural hierarchy. When
employees talk with each other in the lunch room, as they pass in hallways, or as they’re working out at the company
wellness facility, they engage in informal communication. Employees form friendships and communicate with each other.
The informal communication system fulfills two purposes in organizations: (1) it permits employees to satisfy their need for
social interaction, and (2) it can improve an organization’s performance by creating alternative, and frequently faster and
more efficient, channels of communication. Formal communication is communication that takes place within prescribed
organizational work arrangements. Informal communication is not defined by the organization’s structural hierarchy.
Communication in an organization can flow downward, upward, laterally, and diagonally. The three communication networks
include the chain, in which communication flows according to the formal chain of command; the wheel, in which
communication flows between a clearly identifiable and strong leader and others in a work team; and the all- channel, in
which communication flows freely among all members of a work team. Managers should manage the grapevine as an
important information network. The negative consequences of rumors can be minimized by communicating openly, fully, and
honestly with employees. Workplace design also influences organizational communication. That design should support four
types of employee work: focused work, collaboration, learning, and socialization. In each of these circumstances,
communication must be considered.

4.3.4. Organizational Communication Networks

The vertical and horizontal flows of organizational communication can be combined into a variety of patterns called
communication networks. Exhibit 15-4 illustrates three common communication networks.

Figure 5.4.

Organizational Communication Networks

Technology has radically changed the way organizational members communicate. It improves a manager’s ability to monitor
performance; it gives employees more complete information to make faster decisions; it has provided employees more
opportunities to collaborate and share information; and it has made it possible for people to be fully accessible, anytime
anywhere. IT affects organizations by influencing the way that organizational members communicate, share information, and
do their work.
4.4. Motivating Employees

Motivation is the process by which a person’s efforts are energized, directed, and sustained toward attaining a goal. The
energy element is a measure of intensity, drive, or vigor. The high level of effort needs to be directed in ways that help the
organization achieve its goals.

Employees must persist in putting forth effort to achieve those goals.

4.4.1. Early Theories of Motivation

The best-known theory of motivation is probably Abraham Maslow’s hierarchy of needs theory. Maslow was a psychologist
who proposed that within every person is a hierarchy of five needs: 1. Physiological needs: A person’s needs for food, drink,
shelter, sex, and other physical requirements. 2. Safety needs: A person’s needs for security and protection from physical and
emotional harm, as well as assurance that physical needs will continue to be met.

3. Social needs: A person’s needs for affection, belongingness, acceptance, and friendship. 4. Esteem needs: A person’s needs
for internal esteem factors such as self-respect, autonomy, and achievement and external esteem factors such as status,
recognition, and attention. 5. Self- actualization needs: A person’s needs for growth, achieving one’s potential, and self-
fulfillment; the drive to become what one is capable of becoming.

Figure 5.4. Maslow’s Hierarchy of Needs

A need that’s substantially satisfied no longer motivates. A Theory X manager believes that people don’t like to work or won’t

seek out responsibility so they have to be threatened and coerced to work. A Theory Y manager assumes that people like to

work and seek out responsibility, so they will exercise self-motivation and self-direction.

Herzberg’s theory proposed that intrinsic factors associated with job satisfaction were what motivated people. Extrinsic
factors associated with job dissatisfaction simply kept people from being dissatisfied.
David McClelland and his associates proposed the three-needs theory, which says there are three acquired (not innate) needs
that are major motives in work. These three needs include the need for achievement (nAch), which is the drive to succeed and
excel in relation to a set of standards; the need for power (nPow), which is the need to make others behave in a way that they
would not have behaved otherwise; and the need for affiliation (nAff), which is the desire for friendly and close interpersonal
relationships. Of these three needs, the need for achievement has been researched the most.
p. 3 What is the definition of an organization and business
organization?

o Social entity
o Commercial enterprise or establishment that
trades in goods or services
o Entity that is both commercial and social
o Include the characteristics of people, goals and
structures

p.4 What are the mains ways sociology teaching us about

business and administration?

o How people interact at work

o The effect of different organizational structure on
people
o The ways in which business and management have
impacts on wider society
o The method of training that would be most
effective
p.5 What is decision making?

o Key activity in the management of business

organization
o Decision related to operations in the workplace
o Decision which will affect the future direction of
the business organization

p.5 What is the role of mangers?

o Managers play an important role in identifying

critical issues and crafting Reponses
o They’re critical to getting things done
o Coordinates and oversees the work of other people

o Helping other do their work

 p.6 What are the way to classify the manager in
organization?

see the schema o First line: junior level managers

on page 6 o Middle: middle level management
o Top: senior level management
p.6
What are the specific characteristic of an organization?
Ex: university is
an organization, o A deliberate arrangement of people to accomplish
some specific purpose
government
o an organization has a distinct purpose.
departments, o each organization is composed of people
Facebook o all organization develop some deliberate structure
within which members do their work.
p.7
What are the different function of management?

o Planning
o Organizing
o Leading
o Controlling

p.7 What are the different forme the changement in

organization?

o Changing technology digitalization

o Increased emphasis on organizational and
managerials ethics
o Increased competitiveness
o Changing security threats

What types of organizations need management?

p.8
o All sizes of organization small and large
o All types of organization profit and not profit
o All organization level bottom and top
 o All organizational areas, manufacturing and
marketing, ressources and accounting, information
systems

What are the different values that make up

p.9 organizational culture?

o People orientation
o Innovation and taking risqué
o Stability
o Team orientation

p.10 What are the different types of global environnement

that make up the organization?

o The economy environnement

o The political/legal environnement
o The cultural environnement

p.10 What is the synonym of economies environnement?

Ex: the o Economies system

o Market economy
economies of o Planned economy
Vietnam and
north Korea are
more planned,
china also more
planned
economy
p.11
What is the definition of cultural environnement?

o National culture
o The values and attitudes shared by individuals
from specific country
p.11
 What are the different aspect mise en place in the global
management?

o The first aspect involves the challenges associated

with globalization
o The second aspect revolves around the challenges
of managing a global work force
p.12
What is the definition of work place diversity?

o The way in which people in an organization are

p.12 different from and similar to one another

What are the different types of work place diversity?

o Age
o Religion
o Disability and abilities
o Race and ethnicity
o Gender

p.16 What are the different types of organization

management?

o People: refers to changes in attitudes,

expectations, perceptions, and behavior of
individuals or groups.
o Structure: includes any change in structural
variables such as reporting relationships,
coordination mechanisms, employee
empowerment, or job redesign.
o Technology: encompasses modifications in the
way work is performed or the methods and
equipment that are used.
p.16
What are the different contemporary issues in managing
change?

o Creating new stories

o Promoting and supporting employees who adopt
the new values
o Getting employees to participate in change
o Offer employee counseling
p.16 What is the innovation?

o Innovation or creativity is the ability to combine

ideas in a unique way or to make up unusual
associations between ideas
o Turning outcomes of the creative process into
useful products or work methods

p.17 What is the definition of planning?

o Planning is the processes of thinking about and

organizing the activities required to achieve a
desired goal
o Planning combines forecasting with preparation of
scenarios and how to react to them

What are the characteristics of the goals?

p.19
o Utriten in tems of outcomes
o Measurable and quantifiable
o Clear as to time frame
o Challenging but attainable
o Communicated to all organizational members
Who need to know them?
What are the major step of the goals?
p.19 o Review the organization’s mission
o Evaluate available ressources
 o Determine the goals individually or with impact
from other
o Write down the goals and communicate them to all
who need to know them
p.19 What are the contemporary issues in planning?
o Planning in dynamique environnement
o Planning in an environnement uncertain
p.20 o Plans to flow down from the top
What is a strategic management?
o Is what a managers do to develop the
organization’s strategies
o The plan for how the organization well do what
p.20 ever
Why management strategic is important?
o Makes a difference in how well organization
perform
o Helping managers cope with continually changing
situation

o Helps coordinate and focus employee efforts on

what’s important
p.20
What are the most important processes of strategic
management?
o Identify the organization’s current mission goals
Strategies
o SWOT analyses
o Formulate strategies
o Implement strategies
o Evaluate results
p.20 What is corporate strategies?
o When an organization expends the member of
market served or product offered other through
Current or new business
o Growth strategies include concentration vertical
integration, horizontal integration, diversification
p.20 What are the five competitive force?
o Threat of new entrants
o Threat of substitutes
 o Bargaining power of buyers
o Bargaining power of suppliers
o Current rivalry
p.21 What are the different current strategic management?
o Strategic leadership
o Strategic flexibility
o E-business strategies
p.22 What are the key elements in organizational?
o Work specialization
o Chain of command
o Span of control
o Centralization-decentralization
o Formalization

p.23 Why managing human ressources is important?

o It can be significant source of competitive
advantage
o It’s an important part of organizational strategies
o The way organizational treat their people has been
found to significantly impact organizational
performance
p.23 What are the most external factors that most directly
affect the human resource management processes?
o The economy
o Labor unions
o Legal environnement
o Demography trends
p.24 What are the most external factors that most directly
affect the work group?
o Knowledge
o Skills
o Abilities
o Personality traits
p.27 What are the four dimension of personality?
o Social interaction
o Preference for gathering data
o Preference for decision making
o Style of making decision
p.27 What are the five personality traits?
 o Extraversion
o Agreeableness
o Conscientiousness
o Emotional stability
o Openness to experience
p.31 What are the processes of communication?
o Sender has a message
o Conveyed
o Decoding
o Feedback
What are the different method of communication?
p.31 o Face to face
o Telephone
o Group meeting
o Traditional mail
o Fax
o Audio
o Teleconference
o Videoconference
What are the most important barrier the
p.32 communication?
o Emotions
o Information overload
o National culture
o Language
What are the important type of communication?
p.32 o Formal
Ex: formal: o Informal
Why the communication informal is important?
when a manager
o It’s permit’s employees to satisfy their need for
asks an social interaction
employee to o It can improve an organization performance by
complete a task creating alternative
Informal: when o Frequently factor and more efficient
an employee
talks with each
other in the
lunch room