Learning Objective 9.3 Describe How Managers Lead the Processes of Organizational Change 1.19 Eth cs Hidden Agendas in Organizational Change Rah Lewlne/Media Bakery sharing power is a popular choice when implementing a change strategy. It means allowmg others to have a decisionmaking role and be involved throughoutlhe change process. This approach can generate a lot of good ideas and helps to establish all-important \"buyin" to support change. But suppose the ideas offered and the ensuing conversations move in a direction that top management me managers use deception to oval losing Inuence w the appearance ofsharlng powe Some managers are afraid of losing influence while sharing power during organizational change. So, they resort to hidden agendas. They handpick key members to be on their change teams. They also ask them to take prominent roles in discus- sions and support the \"right" ideas. The goal is to make sure that change heads in the predetermined "preferred\" direction while still giving everyone a sense of being included and em- powered. It's a very political way of appearing to share power enjoyingthe imagerelated benefits of inclusiveness but still get- ting your way. Your Decision? What are the ethical issues involved here? As a manager, would you handpick the leaders of a change effort to get your way, even if that meant that alternative points of view were likely to he excluded from the process? What ir your boss sele(ted you to represent your department on a task force just because you agreed with his or her favored approach? If you knew that most or your coworkers disagreed, would you do what your boss wanted you to do? Or, would you try to represent the wishes of the majority of your coworkers? What are the risks of sharing power on the surface while keeping power for yourselr in private? thinks is wrong? What happens then? engages others as a team to develop consensus to support change. This requires being comfortable and confident in allowing others to influence decisions that affect the planned change and its implementation. Because it entails a high level of involvement, this strategy is often time consuming. But shared power can deliver major benefits in terms of longerclastc ing and internalized change. The great strength of the shared power strategy lies with unlocking the creativity and experience of people in the system. Still, many managers hesitate to use it for fear of losing con trol or having to compromise on imponant organizational goals. Harvard scholar Teresa M. Amabile points out, however, that managers and change leaders can share power regarding choice of means and processes, even ifthey can't debate the goals. \"People will be more crec ative,\" she says, \"if you give them freedom to decide how to climb particular mountains. You needn't let them choose which mountains to climb.\"'3 Change Leaders Identify and Deal Positively with Resistance to Change. You may have heard the saying \"change can be your best friend." At this point, however, we should add . . . \"but only ifyou dealwith resistance in the right ways." when people resist change, they are most often defending something important to them that nowappears threatened. It is tempting to view such resistance as something that must be overcome. But this mindcset can easily cause problems. Perhaps a better approach is to view resistance as feedback, as a source of information about how people view the change and its impact on them. A change leader can learn a lot by listening to resistance to develop ideas for Improving the change and the change process.\" Such resistance is often associated with the following hangups and concerns: e Feorofthe unknownnot understandingwhat is happeningor what comes next . Disruptedhabitsifeeling upset to see the end ofthe old ways of doing things . Loss ofconfidencefeeling incapable of performing well under the new ways of doing things Result 2 of 22 > 106 CHAPTERS ControlsandCentre-[Systems WileyPLUS I See AuthorVideo Controlling is the process of measuring performance and takingaction to ensure desired results. Why Is Controlling 5o Impomnt in the Manage- ment Process! Controlling is the process of measu ring performancefinding out how well you are doing and taking action to achieve desired results to make sure results meet expec- tations, When controlling IS done well. it sets a strong foundation for performance. Remember:what gets measured happens. Learning Objective 5.1 l Identify How and Why Managers Use the Control Process. Things to Remember - Controlling is one of the four functions of management. . Step 1Control begins with objectives and sta ndards. - Step 2Control measures actual performance. . Step 3Control compares results with objectives and standards. - Step 4Control takes corrective action as needed. \"Keeping in touch" . . . \"staying informed" .. . \"being in control.\" These are important respone sibilities for every manager. Vet \"control" is similar to \"power.\" If you aren't careful when and how the word is used, it leaves a negative connotation. But control plays a positive and neces sary role in the management process. To have things \"under control\" is good; for things to be \"out of control" is generally bad. So, what happened at these welleknown companies?1 ToyotaiRecalled more than 6 m on vehicles to fix throttle problems. Toyota North America's president and C00 Jim Lentz said: \"I am truly sorry for the concern our recalls have caused, and want you to know we're doing everything we canas fast as we canto make things right. . ..We'll continue to do everything we can to meetiand exceediyour expectations and justify your continued trust in Toyota.\" LuiulemoniRecalled black yoga pants and offered full refunds after customers discovered they were seeethrough when worn. The cost to the firm was a damaged reputation, plus some $60 million in lost revenues. Lululemon's CEO Christine Day, since replaced, said: \"The only way to test for the problem is to put the pants on and bend over.\" Controlling Is One ofthe Four Functions of Management. Managers understand controlling as a process of measuring performance and taking action to ensure desired results. Planning sets the direction. Organizing arranges people and resources for work. Leading inspires people to put forth their best efforts. And, as shown in Figure 6,1,cone trolling sees to it that the right things happen, in the right way, and at the right time. If things go wrong, control helps to get things back on tmck. As with any aspect of decision making, the foundation of control is information. Henry Schacht, former CEO of Cummins Engine Company, once discussed control in terms of what he to set the direction THE to ensure results - Measure performance - Take corrective action MANAGEMENT PROCESS to create structures to inspire effort Learning Objective 6.1 Identify How and Why Managers Use the Control Process 107 called "friendly facts." "Facts that reinforce what you are doing are nice," he said, "because they help in terms of psychic reward. Facts that raise alarms are equally friendly, because they give you clues about how to respond, how to change, where to spend the resources." Effective control offers the great opportunity of learning from experience. Consider, for example, the program of after-action review pioneered by the U.S. Army and now used in After-action review is a struc- many other organization settings. It is a structured review of lessons learned and results tured review of lessons learned accomplished through a completed project, task force assignment, or special operation. Partic- and results accomplished through ipants answer questions such as: "What was the intent?" "What actually happened?" "What did a completed project, task force we learn?" The after-action review encourages everyone involved to take responsibility for his assignment, or special operation. or her performance efforts and accomplishments Even though improving performance through learning is one of the great opportuni- ties offered by the control process, the potential benefits are realized only when learning is translated into corrective actions. For example, after IBM executives learned that male attitudes were creating barriers to the success of female managers, they made male senior executives report annually on the progress of women managers in their divisions. This action substantially increased the percentage of women in IBM's senior management ranks.* Step 1-Control Begins with Objectives and Standards. The control process consists of the four steps shown in Figure 6.2. The process begins with set- ting performance objectives and standards for measuring them. It can't start any other way. This s the planning part-setting the performance objectives against which results can eventually be compared. Measurement standards are important, too. In today's terminology, we refer to them as metrics, numbers that identify key outcomes used to assess and track performance over time. Metrics are numbers that identify It isn't always easy to set metrics, but they are essential to the control process. After all, key outcomes used to assess and if we don't measure how well we are doing how are we going to improve in the future? Busi- track performance over time. nesses use earnings per share, sales growth, market shares, Web visits, service or delivery times, and error rates as metrics for measuring performance. But how about other types of organi- zations? When the Cleveland Symphony Orchestra wrestled with performance standards, the members weren't willing to rely on vague generalities such as "we played well," "the audience seemed happy," and "not too many mistakes were made." Instead, they decided on unique but relevant metrics like standing ovations, invitations to perform in other countries, and how often other orchestras copied their performance styles. An output standard measures Earnings per share for a business and standing ovations for a symphony are examples performance results in terms of of metrics based on output standards. They measure actual outcomes or work results. quantity, quality, cost, or time. Step 1: FIGURE 6.2 What Are the Establish performance Four Steps in the Control objectives and Process? The control process standards is straightforward, essential to management, applies equally well to personal careers. Without career objectives, how do you know where Step 4 Step 2: you really want to go? How can you Take necessary THE CONTROL Measure actual allocate time and other resources action PROCESS performance to take best advantage of opportu nities? Without measurement, how can you assess how well you are doing and make adjustments to do Step 3 in the future Compare actual performance with objectives and standards Q are set and the right resource inputs are available Ensure the right things > Ensure that nal results are being done as part are up to desired of workilow operations standards Solve problems while they Ire occurring W What Arethe nineronres Among Feedlorwzrd, Concurrent, and reeabark Controls? Organizations are input-throughputoutput systems, and each point in the cycle offers its own opportunities for control over perrorrnonce. Feedforwa rd controls try to solve problems before they occur by making sore the production systems have high-quality inputs. Concurrent controls try to solve problems as they occur by monitoring and correcting problems during the work process, Feedback controlstry to correct problems after they have occurred and inform the system so similar mistakes can be avoided in the future. Feedfurward control ensures clear directions and needed resources before the work begins. Concurrent control focuseson what happens d u ring thework process. Feedback control takes place aftercompleting an action. Internal control, o r sellcontrol. occursas people exercise self-d iscipllne in iulfilli rig lob expectations. External control occu rs through direct supervision or ad ministrative systems. Result 2 of 30 > 112 CHAPTER 6 Controls and Control Systems ssues 'For various reasons, individuals decide not to reveal truthful information to their family members, close friends, fellow group members, members of organizations, media, leaders, or society members." When Self-Control Becomes Self-Censorship individual self-censors in ways that comply with and obey group norms and expectations. If one feels the need to self-censor to fit in, is that good or bad, right or wrong? Some black executive are starting to share with coworkers their personal experiences with racial discrimination. But why self-censor to begin with? Researchers describe self-censorship by black women as an attempt to "fit in" and as "a behavior adjust- ment strategy designed to manage society's impressions of how one is viewed." Their self-censorship includes "use of silence, tone of voice, attire, language, accent, attitude, hair, and code- switching." A survey of campus climate at the University of North Caro- lina included questions on political preferences and classroom dis- cussions. Some 68% of students self-described as "conservatives" said they kept opinions to themselves even when relevant to the subject matter. Self-censorship by "moderates" was 49% and for Mode Images/Alamy Stock Photo "liberals" was 24%. Censorship is intentional withholding of information. We know it as citizens being unwilling to criticize their governments, as news Your Thoughts? reporters holding back parts of their stories, or as children telling Do you practice self-censorship? If so, when, why, where, and to parents what they think they want to hear. This same behavior is what effects? Have there been times when self-censorship has found at all levels in organizations and in all types of social inter- helped you deal with a difficult situation or obtain an outcome actions as individuals filter their verbal and nonverbal communica- that you might otherwise have been denied? How about the tions with others. downsides? Can you describe the borderline between helpful Suppose the information being withheld is very personal - self-control and harmful tendencies to comply, obey, and "fit in" say about one's sexuality, gender identity, or minority culture? The through self-censorship? Bureaucratic control influences The logic of bureaucratic control is that authority, policies, procedures, job descriptions, behavior through authority, budgets, and day-to-day supervision ensure people behave in ways consistent with organi- policies, procedures, job descrip zational interests. For example, organizations typically have policies and procedures regard- tions, budgets, and day-to-day ing sexual harassment. They are designed to make sure people behave toward one another supervision. respectfully and without sexual pressures or improprieties. Clan control influences behavior Whereas bureaucratic control emphasizes hierarchy and authority, clan control influences through social norms and peer behavior through social norms and peer expectations. This is the power of collective identity. expectations. Persons who share values and identify strongly with each other tend to behave in ways that are consistent with one another's expectations. Just look around the typical college classroom and campus. You'll see clan control reflected in dress, language, and behavior as students tend to mirror the expectations of peers and groups with whom they identify. The same holds true in organizations where close-knit employees display common behavior patterns. Market control is essentially the Market control is essentially the influence of competition on the behavior of organiza- influence of market competition tions and their members. Business firms adjust products, pricing, promotions, and other on the behavior of organizations practices in response to customer feedback and competitor moves. Think about the growing and their members. emphasis on "green" products and practices. When firms such as Walmart get good publicity from their expressed commitment to eventually power all their stores with renewable energy, the effect is felt by their competitors." They have to adjust practices to avoid giving up this public relations advantage to Walmart. In this sense, the timeworn phrase "Keeping up with the competition" is really another way of expressing the dynamics of market controls in action. Managing by Objectives Helps Integrate Planning and Controlling. Managing by objectives is a process of joint objective set- Managing by objectives is a technique that helps to integrate planning and controlling ting between a superior and a within work teams. Often called MBO, it is a structured process of regular communication subordinate. in which a team leader and a team member jointly set performance objectives and review Q 20 CHAPTERI ManagersandtheManagementProcess m Usinga Personal SWOT Analysis lor Strategic Career Planning SWOT analysis examines individual or organizational Strengths and Weaknesses, as well as environmental Opportunities and Threats. When SWOT is used for personalcareei planning, sell-awareness is enhanced. and constructive actions can be planned to build on personal strengths and take advantage of career opportunities, while correcting personal weaknesses and overcoming career threats. This is your career readiness minimumyour strengths ELaiostoLmyour weaknesses anaction strategies to make best use of them diatomyour career opp ortu nities anaction strategies to make best use of them PJanactien strategies to eliminate or overcome them ELaiostoLmyour career threats PJanactien strategies to avoid or overcome them This is your Wt powerful way to selfrassess and selfrregulate to achieve your goals for the best possiblejob after graduation and a successful longrterm career. Simply put, it is a great selfrmanagement tool. Spend some time thinking seriously about your strengths. Are you good at math, finance, or programming? Do you have a knack for marketing and sales? Are you a team player and good at reading people? Can you do well working remotely as well as facertorface? Do you have a well-developed network of career connections? Are you good at public speaking? Are you comfortable solving problems \"on the fly\"? These are the kinds of \"strengths\" that you might list to start off your personal SWOT analysis. These kinds of attributes can help to guide you in yourjob search and career goals. Although it can he difficult to think about our own weaknesses, all great leaders have a wellrdeveloped sense oftheir personal weak points. You should, too. This insight wi ll help you to avoid accepting a position or adopting a role that relies heavily on theseareas of expertise or competence right off the bat. It also provides you with a starting point for taking on the responr sibility of developing these areas, for example, by taking a class, applying for an internship, or talking with a trusted mentorwho can guide you on how to improve in an area where you could use some development. Moving away from \"who you are" to \"where you want to be,\" it is also critical to under stand environmental opportunities and threats. This is where the external part ofthe SWOT analysis comes into play. Opportunities might include, for example, internships that coincide with experiences that you've had, a job opening that focuses on the emphasis of your aca demic studies, an offer of a scholarship for giaduate school, or a personal connectionthat links you to a business opportunity. Threats surely include economic adjustments in society due to the virus pandemic. But they also include the fact that there are many other students and job seekers with similar qualifications who are also applying for the same internships and jobs. The critical takeaway here is to take charge of your personal career readiness. It's impor tant to spend time thinking in a systematic way about yourselfwithin a speci c setting and to understand how your internal strengths and weaknesses and the external opportunities and threats you'll Face relate to one another. In short, we want you to become a \"strategic" self manager. When the popular singer Kenny Rogers passed away, a line from one of his interviews was quoted in the popular press. In the early stages of his career, Rogers faced alreadyrestablished greats like Johnny Cash, Willie Nelson, and Waylon Jennings in his desire to be a great country music artist. It was a daunting challenge. \"Vou either do what everyone else is doing and you X Learning Objective 1.3 Discuss the Implications of Important Career Trends and Issues 21 do it better," he said to the interviewer, "or you do what no one else is doing and you don't invite comparison." Rogers found success as a crossover artist who mixed country with jazz, folk, and rock." The same difficult choices face you. What does a serious personal SWOT analy- sis suggest as your pathway to future career success? Study Guide Learning Objective 1.3 Describe the Implications of Important Career Trends and Issues. Terms to Define Analytical competency Globalization Reshoring Corporate governance Implicit bias Self-management Discrimination Intellectual capital Shamrock organization Ethics Intellectual capital equation Smart workforce Free-agent and Job migration SWOT analysis on-demand economy Knowledge workers Tech IQ Glass ceiling effect Leaky pipeline problem Unconscious bias Global sourcing Personal brand Workforce diversity Global supply chains Prejudice Rapid Review Globalization has brought increased use of global outsourcing by businesses and concern for the adverse effects of job migration. . Society increasingly expects organizations and their members to perform with high ethical standards and in socially responsible ways. Organizations operate with diverse workforces, and each member should be respected for her or his talents and capabilities. . Work in the new economy is increasingly knowledge based, relying on people with valuable intellect tual capital to drive high performance. . Careers in the new economy are becoming more flexible, requiring personal initiative to build and maintain skill portfolios that are always up-to-date and valued by employers Questions for Discussion 1. How are current concerns about ethics in business, globalization, and changing careers addressed in your courses and curriculum? 2. Is it possible for members of minority groups to avoid being hurt by prejudice, discrimination, and the glass ceiling effect in their careers? 3. In what ways can the capacity for self-management help you to prosper in a free-agent economy? Be Sure You Can describe how corporate governance influences ethics in organizations explain how globalization and job migration are changing the economy . differentiate prejudice, discrimination, and the glass ceiling effect . state the intellectual capital equation . discuss career opportunities in the shamrock organization . explain the importance of self-management to career success Career Situation: What Would You Do? One result of globalization is that many people now work domestically for foreign employers that have set up businesses in their local communities. How about you? Does it make any difference if you receive a job offer in your home state from a foreign employer or a domestic employer? What are the "pluses and minuses" of working at home for a foreign employer? Could the pluses outweigh the minuses for you? Q