Part Four: Managing Organizational Architecture

Chapter 10
Managing Organizational Structure

Chapter Objectives
 

Explain how managers group tasks into jobs that are motivating and satisfying for employees.

Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

Explain why there is a need to both centralize and decentralize authority.

Explain why managers must coordinate and integrate between jobs, functions, and divisions as an organization grows.

Explain why managers who seek new ways to increase efficiency and effectiveness are using strategic alliances and network alliances.

Chapter Outline

1 Identify the factors that influence managers' choice of an organizational structure.

1. Designing Organizational Structure
   Organizing is the process of establishing working relationships among employees. Organizational structure is the formal system of task and job reporting relationships. Organizational design is the creation of the tasks and job relationships.
   1. The organizational environment – the faster the external environment is changing, the more difficult is it for managers to find scarce resources.
   2. Strategy – different organizational strategies require different organizational structures.
   3. Technology – the skills, knowledge, tools, machines, and equipment that are used by the organization.
      1. Task variety – the number of new situations a manager encounters in performing the job.
      2. Task analyzability – the degree to which programmed decisions are available to managers.
      3. Small-batch technology – produces small amounts of customized products.
      4. Mass-production technology – uses automated machines the perform the same operations over and over again.
      5. Continuous-process technology – produces products by automated machines that work in sequence.
      6. Information technology – IT can allow new tasks and job-reporting relationships.
   4. Human resources – the people who work for the organization

2 Explain how managers group tasks into jobs that are motivating and satisfying for employees.

2. Grouping Tasks into Jobs: Job Design
   Job design is the process of deciding how to divide tasks into specific jobs.
   1. Job enlargement and job enrichment
      1. Job enlargement – increasing the number of tasks in a job
      2. Job enrichment – increasing the worker's responsibility for managing his or her own job.
   2. The job characteristics model of Hackman and Oldham – how motivating is the job itself?
      1. Skill variety – the extent to which the job requires a wide range of different skills or knowledge.
      2. Task identity – the extent to which the worker must do all of the tasks of the job.
      3. Task significance – the degree to which the job is meaningful.
      4. Autonomy – the degree to which the worker can schedule tasks and decide how to do them.
      5. Feedback – the extent to which the job gives information to the worker about how well the job is being performed.

3 Describe the types of organizational structures managers can design, and explain why they choose one structure over another.

3. Grouping Jobs into Functions and Divisions
   1. Functional structure – all the departments used by the organization.
   2. Divisional structures: product, market, and geographic
      1. Product structure – each product line or business is in its own division with its own strategy.
      2. Geographic structure – assigning divisions to specific geographic regions.
      3. Market structure – grouping divisions by the type of customer that they serve.
   3. Matrix and product team designs
      1. Matrix structure—workers are grouped simultaneously by function and by product.
      2. Product team structure – workers are permanently assigned to a cross-functional team; there is no dual reporting relationship.
   4. Hybrid structure – different divisions or businesses choose different structures.
4. Coordinating functions and divisions
   1. Allocating authority – the power a manager has to make decisions and to allocate resources.
      1. Span of control – the number of subordinates who report to a manager.
      2. Line manager – a manager who is in the direct chain of command who has formal authority over subordinates.
      3. Staff manager – has responsibility for a function (e.g. finance).
   2. Tall and flat organizations
      1. Tall organization – has many levels of authority
      2. Flat organization – few levels of authority

4 Explain why there is a need to both centralize and decentralize authority.

3. Centralization and decentralization of authority – centralization means that top management retains control of decisions, while decentralization means that decision-making authority is "pushed down" the organization to lower-level managers who are closer to the customer.

5 Explain why managers must coordinate and integrate among jobs, functions, and divisions as an organization grows.

4. Types of integrating mechanisms – used to coordinate the work of managers
   1. Direct contact – personal contact between managers
   2. Liaison roles – assigning coordinating responsibility to a manager
   3. Task forces – managers from different functional areas are assigned to work on a mutual problem.
   4. Cross-functional teams – managers from different functional areas work together.
   5. Integrating roles – a role whose single function is to improve coordination.
   6. Matrix structure – two-boss managers work on project teams.

6 Explain why managers who seek new ways to increase efficiency and effectiveness are using strategic alliances and network structures.

5. Strategic Alliances, B2B Network Structures, and IT
   1. Strategic alliance – two or more companies agree to share resources in order to market a product.
   2. Network structure – a series of global alliances with suppliers, manufacturers, and distributors to market a product.

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Chapter 11
Organizational Control and Change

Chapter Objectives
 

Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.

Identify the main behavior controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees.

Explain the role of clan control or organizational culture in creating an effective organizational architecture.

Discuss the relationship between organizational control and change and explain why managing change is a vital management task.

Chapter Outline

1 Define organizational control, and describe the four steps of the control process.

1. What is Organizational Control?
   Controlling is the process of monitoring and regulating the efficiency and effectiveness of workers.
   1. The importance of organizational control – control processes can improve innovation in an organization.
   2. Control systems and IT – control systems monitor and evaluate whether or not the organization is functioning efficiently and effectively.
      1. Feedforward control – tries to anticipate problems before they occur.
      2. Concurrent control – gives managers immediate feedback about the efficiency of the organization.
      3. Feedback control – provides information about customers' reactions to goods and services sold by the organization.
   3. The control process: four steps
      1. Set standards of performance
      2. Measure actual performance
      3. Compare actual performance to the standards of performance
      4. Evaluate the result and perform corrective action

2 Identify the main output controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees

2. Output Control
   1. Financial measures of performance
      1. Profit ratios – ROI and Gross profit margin
      2. Liquidity ratios – current ratio
      3. Leverage ratios – debt-to-assets
      4. Activity ratios – measure the value created from the assets
   2. Organizational goals – the best goals are specific and difficult to achieve
   3. Operating budgets – how managers plan to use the organization's resources
      1. Cost (expense) budgets – a fixed budget for the resources of the organization
      2. Revenue budget – an attempt to maximize sales
      3. Profit budget – the difference between revenues and expenses
   4. Problems with output control – profit can be increased either by increasing sales or by reducing expenses.

3 Identify the main behavior controls, and discuss their advantages and disadvantages as means of coordinating and motivating employees

3. Behavior Control
   1. Direct supervision – the most immediate and most powerful type of behavior control.
   2. Management by objectives (MBO) – a system for evaluating subordinates
      1. Set specific objectives
      2. Managers and subordinates agree on the subordinates' objectives
      3. Managers and subordinates periodically review progress
   3. Bureaucratic control – a detailed system of rules and standard operating procedures (SOPs) that regulate the behavior of workers
   4. Problems with bureaucratic control – it is much easier to set up a rule than to discard it once it is outdated and unnecessary; rules can inhibit creative problem-solving.

4 Explain the role of clan control or organizational culture in creating an effective organizational architecture.

4. Organizational Culture and Clan Control
   Organizational culture -- the shared beliefs and values that influence how workers work together.
   Clan control – control of workers by shared standards of behavior.
   1. Adaptive cultures versus inert cultures
      1. Adaptive culture – controls workers' attitudes and behavior.
      2. Inert culture – values that do not motivate workers anymore

5 Discuss the relationship between organizational control and change, and explain why managing change is a vital management task.

5. Organizational Change
   Organizational change attempts to move the organization from its present state of operations toward some desired future state of operations.
   1. Assessing the need for change – all aspects of the organization are candidates for change.
   2. Deciding on the change to make – what is the ideal future organization?
   3. Implementing the change
      1. Top-down change – top managers decide what changes are needed and try to implement these changes.
      2. Bottom-up change – managers at all levels work together to develop a plan for changing the organization.
   4. Evaluating the change – has the change improved the organization?

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Chapter 12
Human Resource Management

Chapter Objectives
 

Describe the steps managers take to recruit and select organizational members.

Discuss the training and development options that ensure that organizational members can effectively perform their jobs.

Explain why performance appraisal and feedback is such a crucial activity, and list the choices managers must make in designing effective performance appraisal and feedback procedures.

Explain the issues managers face in determining levels of pay and benefits.

Chapter Outline
 

1 Explain why strategic human resource management can help an organization gain a competitive advantage.

1. Strategic Human Resource Management
   Human resource management (HRM) includes activities needed to attract and retain employees so that the organization achieves its goals. Strategic HRM is the process of designing an HRM system.
   1. Overview of the components of HRM
      1. The training and development of current workers is a constant process.
      2. Performance appraisal and feedback are needed to make good human resource decisions.
      3. Labor relations describes the process of developing good working relationships with labor unions.
   2. The legal environment of HRM
   3. The goal of equal employment opportunity (EEO) is to ensure that all applicants have an equal opportunity to be hired.

2 Describe the steps managers take to recruit and select organizational members.

2. Recruitment and Selection
   Recruitment deals with developing a group of candidates for a job opening, while selection deals with deciding which applicant to hire.
   1. Human resource planning
      1. Demand forecasts – estimate the number and qualifications of employees that the organization will need in the future.
      2. Supply forecasts – estimate the number of current employees that are qualified for different positions.
      3. Outsourcing – people who do not work for the organization on a daily basis are hired to work on specific projects as needed.
   2. Job analysis
      1. Job description – identifying the tasks, responsibilities, and duties of a job
      2. Job specifications – the knowledge, skills, and abilities needed to perform a specific job.
   3. External and internal recruitment
      1. External recruiting – trying to find job applicants from people who do not work for the organization.
      2. Internal recruiting – trying to find existing employees who can fill a job opening.
      3. Honesty in recruiting – giving job applicants an honest picture of what the organization and the job will be like as a workplace.
   4. The selection process
      1. Background information – checking the education and work experience of job applicants.
      2. Interviews – meeting with applicants to determine their acceptability for a specific job.
      3. Paper-and-pencil tests – tests of ability or personality
      4. Physical ability tests – measures of strength or stamina or mechanical dexterity.
      5. Performance tests – measure performance on actual job tasks.
      6. References – recommendations used to confirm a hiring decision.
      7. The importance of reliability and validity
         1. Reliability – does the test produce the same results each time it is administered to a specific job applicant?
         2. Validity – does the test measure what it claims to measure?

3 Discuss the training and development options that ensure organizational members can effectively perform their jobs.

3. Training and Development
   Training involves helping employees to learn how to do their current job better, while development focuses on improving the knowledge and skills of employees so that they can take on new responsibilities.
   1. Types of training
      1. Classroom instruction – knowledge pursued in a classroom setting.
      2. On-the-job training – learning occurs at work in performing a job
   2. Types of development
      1. Varied work experience – giving employees experience in a variety of different jobs.
      2. Formal education – college courses taken while working
      3. Transfer of training and development – knowledge must be transferred to the actual work situation in order to be useful on the job.

4 Explain why performance appraisal and feedback is such a crucial activity, and list the choices managers must make in designing effective performance appraisal and feedback procedures

4. Performance Appraisal and Feedback
   Performance appraisal – evaluating an employee's job performance.
   Performance feedback – managers share performance information with subordinates and discuss ways in which to improve it.
   1. Types of performance appraisal
      1. Trait appraisal – assessing skills, abilities, and personality.
      2. Behavior appraisals – assess how workers perform their jobs
      3. Result appraisals – focusing on what a worker accomplishes
      4. Objective and subjective appraisals
         1. Objective – based on facts.
         2. Subjective – based on a manager's perception of ability and results achieved.
   2. Who appraises performance? – this is typically the job of the employee's supervisor.
      1. Self, peers, subordinates, and clients – all of these can provide appraisal of the quality of the work of an employee.
      2. 360-degree performance appraisal – fellow employees at several levels as well as customers appraise a manager's performance.
   3. Effective performance feedback
      1. Formal appraisals -- occur at regular intervals (e.g. quarterly).
      2. Informal appraisals – managers and subordinates meet as needed
         1. Focus on specific behaviors that can be corrected.
         2. Avoid criticizing and focus on problem-solving.
         3. Express confidence in the subordinate's ability to improve.
         4. Provide regular performance feedback.
         5. Praise good performance when it occurs
         6. Avoid personal criticisms.
         7. Set a time frame for improving performance.

5 Explain the issues managers face in determining levels of pay and benefits

5. Pay and Benefits
   Pay includes base salaries, raises, and bonuses, while benefits include sick days, vacation days, and insurance benefits.
   1. Pay level – how the organization's pay compares to similar organizations.
   2. Pay structure – creates categories of similar jobs to set pay ranges for these types of jobs.
   3. Benefits
      1. Organizations are legally required to provide workers' compensation, Social Security, and unemployment insurance benefits.
      2. Other benefits can include health insurance, dental insurance, vacation time, pension plans, life insurance, flexible working hours, day-care assistance, and wellness programs.
      3. Cafeteria-style benefit plans – workers are allowed to choose the set of benefits that they most want from a list of possible benefits.
6. Labor Relations
   1. Unions – represent worker's interests in the organization.
   2. Collective bargaining – negotiations between management and labor unions to resolve conflict and working issues.
      1. Mediator – a third party that helps management and labor unions to agree.
      2. Grievance procedure – the union represents workers who feel that they have been treated unfairly.

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Part Five: Managing Individuals and Groups

Chapter 13
Motivation and Performance

Chapter Objectives
 

Describe from the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce.

Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance.

Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory.

Explain why and how managers can use pay as a major motivation tool.

Chapter Outline

1 Explain what motivation is and why managers need to be concerned about it.

1. The Nature of Motivation
   Motivation consists of the psychological forces that determine the direction and effort of a person's behavior. Effort refers to how hard a person works. Persistence refers to whether or not a person keeps trying.
   1. Intrinsically motivated behavior – work performed for its own sake.
   2. Extrinsically motivated behavior – work performed to receive money or social rewards or to avoid punishment.
   3. Outcome – anything a worker receives from a job.
   4. Input – anything a worker contributes to a job.

2 Describe from the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce.

2. Expectancy Theory
   Expectancy theory – Vroom believed that motivation is high when performance leads to the desired outcomes.
   1. Expectancy – a person's perception of how his or her effort will result in a given level of performance.
   2. Instrumentality – a person's perception about how performance will result in achieving outcomes.
   3. Valence – the desirability of each outcome available from a job.
   4. Bringing it all together – high motivation will result from high expectancy, instrumentality, and valence.

3 Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance.

3. Need Theories
   1. Maslow's hierarchy of needs
      1. Physiological – basic needs for food, water, and shelter.
      2. Safety – need for security and a safe environment.
      3. Belongingness – needs for social interaction and friendship and love.
      4. Esteem – need to feel good about oneself and to be respected by others.
      5. Self-actualization – need to achieve one's full potential.
   2. Alderfer's ERG theory: three universal needs
      1. Existence – needs for food, water, clothing, and shelter in a safe environment.
      2. Relatedness – need for good interpersonal relations.
      3. Growth – need for self-development and productive work
   3. Herzberg's motivator-hygiene theory
      1. Motivator needs – relate to the nature and challenge of the work.
      2. Hygiene needs – related to the context in which the work occurs.
   4. McClelland's needs for achievement, affiliation, and power.
      1. Need for achievement – the need to perform challenging tasks well according to personal standards of excellence.
      2. Need for affiliation – the need to maintain good interpersonal relations.
      3. Need for power – the need to control others.
   5. Other needs – the need to balance work and personal life.
4. Equity Theory
   1. Equity theory focuses on the perception of fairness outcomes in proportion to inputs.
   2. Equity – exists when a persons perceives that his own outcome-input ratio equals another's outcome-input ratio.
   3. Inequity – a lack of fairness.
      1. Underpayment inequity – a person's own output-input ratio is less than another person's.
      2. Overpayment inequity – a person's own output-input ratio is greater than another person's.
   4. Ways to restore equity – either by lowering one's inputs or by changing one's perception of his own or another's inputs or outcomes.
5. Goal-setting Theory
   1. Goal-setting theory focuses on motivating workers to contribute inputs to their jobs.
   2. Learning theories – learning is a change in behavior or knowledge resulting from practice or experience.

4 Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory

2. Skinner's operant conditioning theory – people learn behaviors that lead to desired consequences, and avoid behaviors that lead to undesired consequences.
   1. Positive reinforcement – people receive rewards when they perform desirable behaviors.
   2. Negative reinforcement – people stop performing undesirable behaviors to avoid receiving undesired consequences.
   3. Extinction – undesirable behaviors are not reinforced.
   4. Punishment – administering undesirable consequences when undesirable behavior occurs.
   5. Organizational behavior modification – encouraging desirable behaviors in the organization, and discouraging undesirable behaviors.
3. Social learning theory – motivation can occur from one's thoughts and beliefs.
   1. Vicarious learning – a learner observes a model perform a behavior for which the model is positively reinforced.
   2. Self-reinforcement – people motivate themselves by accomplishing goals.
   3. Self-efficacy – the extent to which a person believes in his ability to be successful in a given activity.

5 Explain why and how managers can use pay as a major motivation tool

6. Pay and Motivation
   1. Basing merit pay on individual, group, or organizational performance – all of these can be used to determine a manager's pay level.
   2. Salary increase or bonus? – bonuses are typically more motivational than salary increases.
   3. Examples of merit pay plans
      1. Piece-rate pay – workers are paid on the basis of the number of units produced.
      2. Commission pay – workers are paid a percentage of sales only when a sale actually occurs.
      3. Profit sharing – workers receive part of the organization's profits.

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Chapter 14
Leadership

Chapter Objectives

Identify the traits that show the strongest relationship to leadership, the behaviors in which leaders engage, and the limitations of the trait and behavior models of leadership.

Explain how contingency models of leadership enhance our understanding of effective leadership and management in organization.

Describe what transformational leadership is and explain how managers can engage in it.

Characterize the relationship between gender and leadership.

Chapter Outline

1 Explain what leadership is, when leaders are effective and ineffective, and the sources of power than enable managers to be effective leaders

1. The Nature of Leadership
   Leadership is the process by which one person influences others to achieve organizational goals.
   1. Personal leadership style and managerial tasks – a manager's personal leadership style is the way the manager chooses to influence others.
   2. Leadership style across cultures – leadership styles are different in different cultures.
   3. Power: the key to leadership – the ability of the leader to get others to act in certain ways.
      1. Legitimate power – authority a manager has based on his position in the organization.
      2. Reward power – the ability of a manager to give rewards based on a subordinate's performance.
      3. Coercive power – the ability of a manager to punish others.
      4. Expert power – power derived from specialized knowledge or skills.
      5. Referent power – power that comes from the subordinates' respect for the manager.
   4. Empowerment: an ingredient in modern management – giving subordinates the authority to make decisions and to be responsible for their outcomes.

2 Identify the traits that show the strongest relationship to leadership, the behaviors leaders engage in, and the limitations of the trait and behavior models of leadership

2. Trait and Behavior Models of Leadership
   1. The trait model – focuses on identifying personal characteristics that cause effective leadership.
   2. The behavior model – the Ohio State model
      1. Consideration – managers show subordinates' that they trust and respect and care about them.
      2. Initiating structure – managers take steps to ensure that the work gets done well and on time.

3 Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations

3. Contingency Models of Leadership
   Contingency models assert that a manager should act differently in different situations.
   1. Fiedler
      1. Relationship-oriented leaders – want to be liked by their subordinates.
      2. Task-oriented leaders – focus on encouraging subordinates to perform at a high level on the job.
      3. Situational characteristics – Fiedler believed that leaders cannot change their leadership style.
      4. Leader-member relations – the extent to which subordinates trust and are loyal to their leader.
      5. Task structure – the extent to which subordinates know what and how to do their jobs.
      6. Position power – the amount of legitimate, reward, and coercive power a leader has from his position in the organization.
   2. House's Path-Goal Theory – what do leaders need to do to motivate subordinates to achieve organizational goals?
      1. Find out what outcomes subordinates want
      2. Reward subordinates with the outcomes they want
      3. Show subordinates how to achieve goals and express confidence in their abilities.
      4. Four leader behaviors that motivate subordinates:
         1. Directive behaviors – set goals and assign tasks.
         2. Supportive behaviors – look out for the interests of subordinates.
         3. Participative behaviors – allow subordinates to play a part in decisions.
         4. Achievement-oriented behaviors – motivate subordinates to perform at the highest level possible.
   3. The leader substitutes model – something that makes leadership unnecessary.
   4. Bringing it all together -- managers lead in ways that are appropriate for the situation and also for the subordinates that are being led.

4 Describe what transformational leadership is, and explain how managers can engage in it.

4. Transformational Leadership
   Transformational leadership occurs when managers change their subordinates by helping them understand how important their jobs are to the success of the organization, help subordinates to understand that the manager is aware of their needs, and motivate them to perform at a high level.
   1. Being a charismatic leader – an important aspect of transformational leadership.
   2. Stimulating subordinates intellectually – helping subordinates to see problems as challenges that they can meet.
   3. Engaging in developmental consideration – the manager makes a great effort to encourage subordinates and helps them to grow and succeed on the job.
   4. The distinction between transformational and transactional leadership – in transactional leadership, managers use rewards and coercion to encourage high performance in subordinates.

5 Characterize the relationship between gender and leadership

5. Gender and Leadership
   1. Emotional intelligence and leadership – can help leaders develop a vision for the organization and motivate subordinates to perform to work to achieve it.

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Chapter 15
Effective Groups and Teams

Chapter Objectives
 

Identify the different types of groups and teams that help managers and organizations achieve their goals.

Explain how different elements of group dynamics influence the functioning and effectiveness of groups and teams.

Explain why it is important for groups and teams to have a balance of conformity and deviance and a moderate level of cohesiveness.

Describe how managers can motivate group members to achieve organizational goals and reduce social loafing in groups and teams.

Chapter Outline

1 Explain why groups and teams are key contributors to organizational effectiveness

1. Groups, Teams and Organizational Effectiveness
   A group consists of two or more people who interact to accomplish goals. A team is a group whose members work intensely with one another to achieve a common goal.
   1. Groups and teams as performance enhancers – when a group is more productive than it would have been if its members had worked alone, we say that synergy has occurred.
   2. Groups, teams, and responsiveness to customers – the diversity of knowledge and expertise needed should exist within the team.
   3. Teams and innovation – the creative development of new products, technologies, services, or organizational structure.
   4. Groups and teams as motivators – members of teams are more likely to be satisfied with their work than they would be if they worked alone. Also, teams can help to motivate members to produce output and can lower worker turnover.

2 Identify the different types of groups and teams that help managers and organizations achieve their goals

2. Types of Groups and Teams
   A formal group is established by a manager to achieve organizational goals. Informal groups meet to achieve their own goals, not the organization's goals.
   1. The top-management team – top managers are responsible for developing strategies that create a competitive advantage for the organization.
   2. Research and development (R&D) teams – develop new products.
   3. Command groups – are composed of subordinates who report to the same supervisor.
   4. Task forces – are established to accomplish specific goals and then are normally disbanded.
   5. Self-managed work teams – have the autonomy to complete specific work tasks.
      1. They should be given enough autonomy to be self-managing.
      2. The work should be complex.
      3. Members should be selected very carefully.
      4. The manager of these teams should give coaching and supportive behavior, and should not give supervision.
      5. Provide training needed by members.
   6. Virtual teams – rarely meet face-to-face but interact using information technology.
      1. Synchronous technologies – allow team members to communicate in real time.
      2. Asynchronous technologies – delayed communications by email and the Internet.
   7. Friendshipgroups – informal groups who socialize with one another.
   8. Interest groups – informal groups who meet to achieve a common goal related to their organization.

3 Explain how different elements of group dynamics influence the functioning and effectiveness of groups and teams

3. Group Dynamics
   Group dynamics refers to the ways in which the groups functions.
   1. Group size, tasks, and roles
      1. Group size – the number of members of a group can determine motivation and commitment of the members to group performance.
      2. Group tasks – task interdependence refers to the degree to which the work of one member influences the work of other members.
      3. Pooled task interdependence – group members make separate and independent contributions to group performance.
      4. Sequential task interdependence – group members must perform tasks in a specific sequence.
      5. Reciprocal task interdependence – the work of each group member is dependent on the work of other group members.
      6. Group role – tasks a member of the group is expected to perform because of his or her position in the group.
   2. Group leadership – all groups need leadership.
   3. Group development over time – groups have stages of development.
      1. Forming – members try to reach a common understanding of what the group is supposed to accomplish.
      2. Storming – group members disagree about how they are supposed to act.
      3. Norming – group members develop close ties with one another.
      4. Performing – the group accomplishes what it is supposed to accomplish.
      5. Adjourning – happens when and if the group disbands.

4 Explain why it is important for groups and teams to have a balance of conformity and deviance and a moderate level of cohesiveness

4. Group norms – rules of behavior which group members follow.
   1. Conformity– group members conform to obtain rewards or to avoid punishments, to imitate members they like, and because they feel it is the right thing to do
   2. Deviance is a failure to conform to the group norms that can result in:
      1. The group tries to get the member to conform.
      2. The group expels the deviant member.
      3. The group changes its norms to be consistent with the deviant's behavior.
   3. Encouraging a balance of conformity and deviance – a group needs both conformity to its norms and some deviance from its norms.
5. Group cohesiveness – the degree to which members are loyal to their group.
   1. Level of participation – as group cohesiveness increases, participation increases.
   2. Conformity to group norms – as group cohesiveness increases, conformity to group norms increases.
   3. Emphasis on group goal accomplishment – as cohesiveness increases, emphasis on group accomplishment of its goals increases.
   4. Factors leading to group cohesiveness
      1. Group size – members of small groups tend to be more motivated and more committed to the group's goals.
      2. Effectively managed diversity – people tend to like and get along with people similar to themselves.
      3. Group identify – promotes healthy competition between groups.
      4. Success – successful groups are attractive to their members and become more cohesive.

5 Describe how managers can motivate group members to achieve organizational goals and reduce social loafing in groups and teams

4. Managing Groups and Teams for High Performance
   1. Motivating group members to achieve organizational goals – members need to benefit when the groups performs successfully.
   2. Reducing social loafing in groups – individuals put forth less effort when they work in groups than when they work alone.
      1. Make sure that individual contributions can be attributed to specific members.
      2. Emphasize the valuable contributions of every member.
      3. Keep group size at a level where individual contributions can be identified.
   3. Helping groups to manage conflict effectively – all groups have conflict within the group (intragroup conflict) or with other groups (intergroup conflict).

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