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Mgmt 570 Course Overview. Agenda Part 1: Course Overview Syllabus Introductions Part 2: Management Epistemologies Part 3: Research Methods. WHY OFFER A COURSE ON MANAGING EMPLOYEE ATTITUDES & BEHAVIORS? Because….
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Mgmt 570 Course Overview Agenda Part 1: Course Overview Syllabus Introductions Part 2: Management Epistemologies Part 3: Research Methods
WHY OFFER A COURSE ON MANAGING EMPLOYEEATTITUDES & BEHAVIORS? Because… (1) We now have evidence that people (human resources) make a difference in “bottom line” outcomes (2) Managers need to respond to new trends if they want to influence employee attitudes and behaviors
(1)People make a difference in “bottom line” outcomes (1)People make a difference in “bottom line” outcomes • A competitive, strategic, and bottom line difference in firm performance. • We will read articles to support how human resource activities create value • Sears: First to show how human resources create value by showing interconnections among investors, employees and customers.
Supporting employee ideas & innovation helped • make Sears a compelling place to work. Satisfied • employees assisted in making Sears a fun (compelling) • place to shop. And more shopping raised profits, • making Sears a compelling place to invest. • A 5% increase in employee attitudes led to 1.3% • increase in customer satisfaction which in turn led to • 0.5% increase in revenue growth. • This systems perspective represents a change in • thinking for those interested in managing human • resourcesfor competitive advantage (1)People make a difference in “bottom line” outcomes
2. Managers need to respond to new trends • Organizations may fail if they do not realize employee-employer relations are changing dramatically • Employees are willing to change jobs more frequently and expect to negotiate their jobs & working conditions • Only 2 articles before 2000
The employer—employee “deal” is changing, …and many employers still don’t get it. Some still subscribe to “command & control” ideas Frederick Taylor introduces “scientific management,” which holds that jobs should be defined in detail to remove individual discretion.
85 of Fortune’s 100 Best Companies to work for allow telecommuting or work from home. Cisco ● Intel Accenture Pricewaterhouse Coopers They allow employees to work wherever they want, whenever they want, as long as they get their jobs done. …Others do “get it”. Cisco Accenture
New labor market conditions: Boomers, once 40% of the labor force, are slowly exiting! • · Future belongs to Gen X & Y (Millennials) • Multiple jobs are now the norm. • Turnover averages ~ 15%. • Unscheduled absenteeism is rising. • Boomer-aged managers & contemporary employees are not in sync regarding how pay, health care, retirement plans, and work-life balance programs affect retention. (2)Managers need to respond to new trends
WHY A COURSE ON EMPLOYEE ATTITUDES AND BEHAVIORS? • Review syllabus • Introductions • BREAK!!!
Part 2: Management Epistemologies • How Do Mangers Determine the Best Way to Manage People? • Baseline Quiz • Fads • Review Epistemologies
How Do Managers Determine the “Best Way” to Manage? • Course favors science but realizes there are other ways of determining truth • Unawareness of evidence leads to imitation & adoption of fads • What are the “hot” practices or emerging trends popular among managers today? • Look at some fads over time
Management Innovation or “Fad”???? The 1950s The 1960s The 1970s Quantitative Mgmt Managerial Grid Zero-based Budgeting Theory Y T (sensitivity) Groups Strategic Planning MBO Matrix Management Portfolio Mgmt The 1980s The 1990s 2000 & Beyond 1-Minute Manager Downsizing Relationship Marketing Theory Z Reengineering Supply Chain Mgmt Corporate Culture Cycle time Sustainability JIT, TQM Employee Empowerment “In Search of Excellence”
HOW DO MANAGERS DETERMINE THE BEST WAY TO MANAGE PEOPLE? My goal is to encourage greater reliance on scientific advice on mgmt problems. Like it or not, the evidence-based, cutting-edge ideas are in journals. Also, to get you ahead of the curve by exposing you to original ideas and encouraging you to be a more discerning, critical consumer of advice to managers. Avoid “fads”. It is NOT my goal to turn you into a scientific researcher but instead to choose to rely on evidence-based management.
How Do Managers Determine the “Best” to Manage? • Course promotes science but realizes effective mgmt is both an art & science • Managers must act and they rely on multiple ways of determining truth (epistemologies) that may reach different conclusions. • Sick leave policy example
EPISTEMOLOGIES USED BY MANAGERS • 1. Experience • 2. Intuition • 3. Common Sense or logic • Expert testimony/Higher • authority/Consultant • 5. History or Tradition • Science or Evidence-based • Management (EBM)
Why are Epistemologies Important to Mangers? • Skip science for just a second • Know what epistemologies are appealing to you and that you rely on so you can appreciate their strengths and limitations • Appreciate that your preferred epistemology may not be valued by others • A successful change agent will be to “shuttle” across epistemologies (i.e., meet people on their “playing fields”), and be convincing by using more than one
Why Science/EBM is Preferred • Definition: EBM means making decisions about the management of employees and organizations through the explicit use of four sources of information: • The best available scientific evidence • Organizational facts, metrics, and characteristics • Stakeholders’ values and concerns • Practitioner expertise and judgment
CHARACTERISTICS OF SCIENCE/Evidence-based Management 1. Empirical 2. Rational 3. General - predict - explain 4. Cumulative: Seek to achieve a systematic body of knowledge - tentative - replication - self-correcting
Tools for Reading Empirical Articles • The Research Process • Terms • Linkages • Operationalization of ideas • Data collection • Analyzing data to test hypotheses • Statistics • Theories/Models • Research Designs • Sampling
THE RESEARCH PROCESS Org. Event Desire to Theoretical Operation- Phenomenon Explain Framework alization Problem (high absenteeism) (low perf.) (curious, (consists of fame, $, concepts & solve a propositions) problem) Derive Collect Analyze data Report Hypotheses the Data to test hypo- whether (statements of (where theses (where the data relationships sample & statistics support among variables) research enters) the hyp. design enter) or not
RESEARCH PROCESS TERMS Concept: A mental image; abstract but rooted in sense experience Proposition: A statement which links concepts together; it describes how concepts are related Linkages: Words describing the relationship between two concepts Theory: A set of one or more propositions. A simple theory describes how one concept is related (predicts) to another. A more complex (but realistic) theory entails more than one proposition
LINKAGES I. Linear Relationships (Straight line relationships) A. There is a direct or positive relationship between X and Y: Hi Job Sat (Y) Lo Lo Hi Job Autonomy (X) B. An inverse or negative relationship between X and Y: Hi Job Sat (Y) Lo Lo Hi Job Autonomy (X)
LINKAGES II. Non-Linear Relationships A. Curvilinear, exponential: Hi Job Satisfaction (Y) Lo Lo Hi Job Autonomy (X) B. Curvilinear, logarithmic: Hi Job Performance (Y) Lo Lo Hi Goal Clarity (X)
RESEARCH PROCESS TERMS Concept: A mental image; abstract but rooted in sense experience Proposition: A statement which links concepts together; it describes how concepts are related Linkages: Words describing the relationship between two concepts Theory: A set of one or more propositions. A simple theory describes how one concept is related (predicts) to another. A more complex (but realistic) theory entails more than one proposition
THE RESEARCH PROCESS Org. Event Desire to Theoretical Operation- Phenomenon Explain Framework alization Problem (high absenteeism) (low perf.) (curious, (consists of fame, $, concepts & solve a propositions) problem) Derive Collect Analyze data Report Hypotheses the Data to test hypo- whether (statements of (where theses (where the data relationships sample & statistics support among variables) research enters) the hyp. design enter) or not
OPERATIONALIZATION, DERIVING HYPOTHESES, AND COLLECTING THE DATA Abstract/Conceptual Level [Concepts & props] x y Job Satisfaction Job Performance operationalizaton score on a job satisfaction index sales performance Empirical Level actual score $ profit/month [Variables & hypotheses]
THE RESEARCH PROCESS Org. Event Desire to Theoretical Operation- Phenomenon Explain Framework alization Problem (high absenteeism) (low perf.) (curious, (consists of fame, $, concepts & solve a propositions) problem) Derive Collect Analyze data Report Hypotheses the Data to test hypo- whether (statements of (where theses (where the data relationships sample & statistics support among variables) research enters) the hyp. design enter) or not
DATA COLLECTION TECHNIQUES • Observation (Direct, video, participation) • Questionnaires, surveys • Interviews (face-to-face, telephone) • Company records (archival)
THE RESEARCH PROCESS Org. Event Desire to Theoretical Operation- Phenomenon Explain Framework alization Problem (high absenteeism) (low perf.) (curious, (consists of fame, $, concepts & solve a propositions) problem) Derive Collect Analyze data Report Hypotheses the Data to test hypo- whether (statements of (where theses (where the data relationships sample & statistics support among variables) research enters) the hyp. design enter) or not
ANALYZING THE DATA TO TEST HYPOTHESES I. Visually Subject Questionnaire Co. Records (Employee)Mean JS scoreProfits/month 1 12 $3500 2 8 2100 3 10 2500 - -- ----- N 3 1600 II. Via Scatterplot. . . Hi . . . . N = 10 Job Performance .. (Y) . Lo Lo Hi Job Satisfaction (X) III. Statistically
STATISTICSA way to summarize relationships among variables For 2 variables in a linear relationship: Pearson r -1 0 +1 (negative) (no relationship) (positive) r = .30 Weak to moderate positive relationship r 2 = .09 (or 9% of the variance explained) For more than 1 independent variable related to a dependent variable: Use a multiple correlation coefficient R
THEORIES/MODELS A theory is nothing more than a set of propositions, outlining how a set of factors is thought to “effect” a dependent variable. E.g. A theory of absenteeism: Job Satisfaction Work Group Size Absenteeism Family size Use R summary statistic (Range is from 0 to 1; no direction can be specified)
RESEARCH DESIGNS Case study: good for exploratory work, no cause and effect, all “after the fact”, not generalizable Field study or field survey: findings generalizable and realistic but weak on control Lab experiment: strong on control, good for isolating cause and effect relationships, weak on generalizability Potential ethical issues. Field experiment: moderate on control and generalizability, difficult to get companies to participate in. Potential ethical issues.
SAMPLING 1. There are many methods of sampling (random, stratified) but first specify the population or universe. What do you want to study? To what do you wish to be able to generalize to? 2. Technically, every unit in the population you wish to generalize to (i.e., infer results to) must have an equal opportunity to appear in the sample. 3. Practically speaking, compromises are always made: POP: Employees of Org. X Sample: Randomly pick 20% to interview POP: American auto workers Sample: Ford, GM, Chrysler employees or Random Sample of just GM employees