Nine Generic Influence Tactics * 1. Rational persuasion. Trying to convince someone with reason, logic, or facts. * 2. Inspirational appeals. Trying to build enthusiasm by appealing to others’ emotions, ideals, or values. * 3. Consultation. Getting others to participate in planning, making decisions, and changes. * 4. Ingratiation. Getting someone in a good mood prior to making a request; being friendly, helpful, and using praise or flattery. * 5. Personal appeals. Referring to friendship and loyalty when making a request. * 6. Exchange. Making express or implied promises and trading favors. * 7. Coalition tactics. Getting others to support your effort to persuade someone. * 8. Pressure. Demanding compliance or using intimidation or threats. * 9. Legitimating tactics. Basing a request on one’s authority or right, organizational rules or policies, or express or implied support from superiors.6 first five influence tactics—rational persuasion, inspirational appeals, consultation, ingratiation, and personal appeals—soft tactics
Exchange, coalition, pressure, and legitimating tactics accordingly are called hard tactics because they involve more overt pressure.
3 Influence Outcomes * 1. Commitment. Your friend enthusiastically agrees and will demonstrate initiative and persistence while completing the assignment. * 2. Compliance. Your friend grudgingly complies and will need prodding to satisfy minimum requirements. * 3. Resistance. Your friend will say no, make excuses, stall, or put up an argument.9
Five Bases of Power * Reward power - Obtaining compliance with promised or actual rewards. * Coercive power - Obtaining compliance through threatened or actual punishment. * Legitimate power - Obtaining compliance through formal authority.
Personal – derived from one’s personal characteristics, relationship with others, and behavior towards others. * Expert power - Obtaining compliance through one’s knowledge or information. * Referent power - Obtaining compliance through charisma or personal attraction.
Disruptive Innovation – Clayton Christensen describes a new product or service that is so innovative, it disrupts the market and forces businesses in that market to radically change their business or suffer consequences.
Participative Management – the process whereby employees play a direct role in setting goals, making decisions, solving problems, and making changes in the organization.
Lewin’s Change Model suggests that there are three stages to planned change – * The first stage is unfreezing where leaders create the motivation to change. * The second step is changing when employees are provided with the information and tools to adjust or modify their way of doing things. * The final stage is refreezing which happens once the change becomes a normal part of daily operations.
John Kotter eight steps for leading organizational change - * The first step begins with establishing a sense of urgency – unfreeze the organization by creating a compelling reason for why change is needed. * The second step is creating the guiding coalition or team – create a cross-functional, cross-level group of people with enough power to lead the change. * The third step is developing a change vision and strategy – create a vision and strategic plan to guide the change process. * The fourth step is communicating the change vision to individuals within the organization – create and implement a communication strategy that consistently communicates the new vision and strategic plan. * The fifth step is empowering action around the change – eliminate barriers to change, use target elements of change to transform the organization. * The sixth step is generating short –term wins by meeting project milestones – plan for and create short-term “wins” or improvements. * The seventh step is using the wins to produce more change – the guiding coalition uses credibility from short term wins to create change. Additional people are brought into the change process as change cascades throughout the organization. * The eighth step is anchoring the changes in the culture of the organization – reinforce the changes by highlighting connections between new behaviors and processes and organizational success.
Forces of Change
External – demographic characteristics, technological advancements, shareholder, customer and market changes and social and political pressures.
Internal – Human resource problem and Managerial behavior/decisions.
Types of Organizational Change
Structural Change – characterized by attempts to modify or reconfigure the parts of an organization through restructuring, mergers, acquisitions, etc.
Cost cutting – occurs when organizations try to organize in a way that increases efficiencies and eliminates waste.
Process change – exemplified by changes in way that work is performed.
Cultural changes – exemplified by changes in the orientation of the company. Shifting from a sale orientation to a marketing orientation.
Theory E - Economic approach – driven by top level managers and is pushed down within the organization for the purpose of meeting economic or financial goals. Characterized by cost cutting, downsizing, and sales of business units.
Theory O – more collaborative and process driven. This approach is used to foster cultural change resulting in better long term performance for the organization.
Span of control – the number of people reporting directly to a given manager.
Staff personnel – provide research, advice and recommendations to line managers.
Line managers – have authority to make organizational decisions.
Five principles for designing horizontal organizations. * Organize around complete workflow processes rather than tasks * Flatten hierarchy and use teams to manage everything * Appoint process team leaders to manage internal team processes. * Let supplier and customer contact drive performance. * Provide required expertise from outside the team as required.
Functional
* Organized according to business function (marketing, finance, etc.)
Divisional Structure * Organized by activities related to outputs (e.g., product or service type)
Matrix Structure * Horizontal cooperation necessary as is functional knowledge * Typically organized by function vertically and product/service horizontally * Invention is the creation of new products or processes through the development of new knowledge or from new combinations of existing knowledge * Innovation is the initial commercialization of invention by producing and selling a new product, service, or process * Product innovation * Service innovation * Process innovation * Incremental innovation refers to simple changes or adjustments in existing products, services, or processes * Intrapreneurship – the act of behaving like an entrepreneur while working within a large organization. * Continuous improvement, what in Japanese is called kaizen, is the process of relentlessly trying to find ways to improve and enhance a company’s products and processes from design through assembly, sales, and service * Toyota’s CCC21: construction of cost competitiveness for the 21st century * Six Sigma is a rigorous and analytical approach to quality and continuous improvement with an objective to improve profits through defect reduction, yield improvement, improved consumer satisfaction, and best-in-class performance * A breakthrough innovation is an innovation in a product, process, technology, or the cost associated with it that represents a quantum leap forward in one or more of those ways * Breakthrough approaches to innovation are inherently more risky than incremental innovation approaches
Ways to lower risk: * Product teams * Cross-functional groups * Joint ventures * Cooperation with lead users * “Do it yourself” innovation * Acquiring innovation * Outsourcing innovation * Ideagoras - A web-enabled, virtual marketplace which connects people with unique ideas, talents, resources, or capabilities with companies seeking to address problems or potential innovations in a quick, competent manner. * Self-esteem – a belief about one’s own worth based on an overall self-evaluation. * Self-efficacy – a person’s belief about his or her chances of successfully accomplishing a specific task. * Self-monitoring – the extent to which a person observes his or her own self-expressive behavior and adapts it to the situation. * Organizational identification – a psychological process whereby one comes to integrate beliefs about one’s organization into one’s identity, which should result in employees with higher levels of organizational identification being more loyal, committed, and harder working.
Branden’s Six Pillars of Self Esteem * Live consciously. * Be actively and fully engaged in what you do and with whom you interact. * Be self-accepting. * Don’t be overly judgmental or critical of your thoughts and actions. * Take personal responsibility. * Take full responsibility for your decisions and actions in life’s journey. * Be self –assertive. * Be authentic and willing to defend your beliefs when interacting with others, rather than bending to their will to be accepted or liked. * Live purposefully. * Have clear near-term and long-term goals and realistic plans for achieving them to create a sense of control over your life. * Have personal integrity. * Be true to your word and your values.

External locus of control – one’s life outcomes attributed to environmental factors such as luck or fate.
Internal locus of control – belief that one controls key events and consequences in one’s life.

* Azjen’s Theory or Planned Behavior focuses on intentions as the key link between attitudes and planned behavior. His theory shows three separate but interacting determinants of one’s intentions. * First, the attitude toward the behavior, or the degree to which a person has a favorable or unfavorable evaluation or appraisal of the behavior in question. * Second, the subjective norm, or the perceived social pressure to perform or not perform the behavior. * Third, perceived behavioral control, which is the perceived ease or difficulty of performing the behavior based on past experience as well as anticipated impediments and obstacles.
Theories:
Expectancy Theory – the behavioral process of why individuals choose one behavioral opetion over the other. Positive correlation between efforts and performance.
Linking Pin Model (Robert Likert) – Supervisor has the dual task of maintaining unity and creating a sense of belonging within the group they supervise.
Theory X & Y (Doglas McGregor) – has to do with perceptions that managers hold of their employees.
X – individuals are lazy and not fond of job.
Y – ambitions, self motivated and exercise self control.
McGregor and Maslows relate to this in how human behavior and motivation are main priorities.
Frederick Taylor & Scientific Management – replace “rule of thumb” and common sense and use scientific method to study work and determine most efficient way to perform specific tasks. Rather than assign workers to any job, match them based on capability and motivation. Monitor worker performance and provide instructions and supervision to ensure most efficient ways of working. Allocate work between managers and workers so that managers spend their time planning and training. The skills needed to develop change vision are good communication, management, and vision skills. Managers also need to be trustworthy in order to lead employees through the change.

The process needed for developing a change vision is as follows.

1. Establish a sense of urgency this requires management to study the current marketplace and also to identify threats and opportunities and being honest about them.

II. Creating a guiding coalition which means to put together a team with enough power to lead the change.

III. Developing a vision and strategy is another step. By doing this it will give the change effort direction.

IV. Communicating the change vision is very important. Managers must have good communication skills in order for the change vision to be understood.

V. Empowering broad-based action is another step. This means getting rid of all obstacles to success and encouraging risk taking and experimentation. This also entails the action of empowering people through knowledge, information, and rewards.

VI. Generating short term wins. Managers need to plan for and create small victories so that employees can see that progress is being made.

VII. Consolidate gains and produce more change is when managers keep changing things in ways that support the vision.

VIII. The last step is to anchor new approaches in the culture. This means that managers should highlight positive results communicate the connections between the new behaviors and the improved results; and keep developing new leaders and agents.

Pygmalion Effect –someone’s high expectations for another person result in high performance.
Galatea effect – an individual’s high self-expectations lead to high performance.
Golem effect – loss in performance due to low leader expectations.
Kelley’s Attribution Model:
Consensus – involves the comparison of an individual’s behavior with that of his or her peers.
Distinctiveness – determined by comparing a person’s behavior on one task with his or her behavior on other tasks.
Consistency – determined by judging if he individual’s performance on a given task is consistent over time.
4 functions of organizational culture:
Give members an organizational identity. Culture helps to establish who the company is and what is stands for. Ideally, employees should be proud to belong to a company who shares their values.
Facilitate collective commitment – drive energy around what is really important. At Southwest, employees know they’ll be taken care of if they take care of their customers.
Promote social system stability – a positive culture is more likely to be able to resolve conflict using a problem-focused approach rather than person-focused or blaming mentality.
Shape behavior by helping members make sense of their surroundings. Decisions made by the company that are consistent with the culture are easy for employees to understand. Performance is rewarded that is aligned with that corporate strategy and values.
The first is the clan culture. This culture is characterized has having an internal focus and valuing flexibility. This type of organization encourages collaboration between employees and is committed to having a cohesive work group and high job satisfaction.
The adhocracy culture has an external focus and values flexibility. This type of culture fosters creation of innovative products and services by being adaptable, creative, and fast to respond to changes in the market place. Centralized power and authority would not be effective structures in an adhocracy. These organizations promote creativity, innovation, and knowledge sharing.
The market culture has a strong external focus and values stability and control. This type of culture focuses on the customer over employee development and satisfaction because the goal of managers is to drive towards productivity, profits, and customer satisfaction. This culture rewards employees who deliver results.
The hierarchy culture has an internal focus and a formalized, structured work environment. It will tend to have reliable internal processes and control mechanisms (e.g., Dell whose focus is on cost-cutting and efficiency.)
Maslow’s Need Hierarchy Theory is probably the best-known conceptualization of human needs.
The theory suggests that there are five human needs and that these are arranged in such a way that lower, more basic needs must be satisfied before higher-level needs become activated. The lowest need that is not well gratified will tend to dominate behavior.
Physiological needs refer to satisfying fundamental biological drives (e.g., the need for food, air, water, and shelter).
Organizations must provide employees with a salary that affords them adequate living conditions. Similarly, sufficient opportunities to rest (e.g., coffee breaks) and to engage in physical activity (e.g., fitness and exercise facilities) also are important for people to meet these needs.
Safety needs refer to the need for a secure environment that is free from threats of physical or psychological harm.
Organizations can provide employees with safety equipment, life and health insurance, and security forces. Similarly, jobs that provide tenure and no-layoff agreements provide a psychological security blanket that helps to satisfy safety needs.
Social needs are the needs to have friends and to be loved and accepted by other people.
Organizations, for example, may encourage participation in social events.
Esteem needs are a person’s need to develop self-respect and to gain the approval of others—examples include the desire to achieve success, have prestige, and be recognized by others.
Companies may have award banquets to recognize distinguished achievements. Giving monetary bonuses--even small ones--in recognition of employees’ suggestions for improvement also helps to promote their esteem. Nonmonetary awards (e.g., trophies and plaques) provide reminders of an employee’s important contributions as well and continuously fulfill esteem needs.
Self-actualization is the need to become all that one can be, to develop one’s fullest potential. Individuals who have self-actualized are working at their peak, and they represent the most effective use of an organization’s human resources.
McClelland identified three needs that individuals have at differing levels. He argued that each of us have these needs but at varying degrees.
Those who have a high need for achievement share three common characteristics: a preference for tasks of moderate difficulty, situations in which their performance is due to their own efforts, and a desire for more performance feedback on their successes and failures.
Those with a high need for affiliation have a strong desire for approval and reassurance from others, a tendency to conform to the wishes of others when pressured by people whose friendships they value, and a sincere interest in the feelings of others.
Finally, those with a high need for power seek to influence and direct others, exercise control over others, and maintain leader-follower relations.
Expectancy is the belief that one’s efforts will positively influence one’s performance.
SMART GOALS – specific, measurable, attainable, results oriented, time bound
Line of sight – knowledge of the organization’s strategic goals and how they need to contribute.
Examples of intrinsic rewards are feelings of competence or accomplishment. These are driven by positive feelings associated with doing well on a task or job.
Examples of extrinsic rewards are money, praise, and recognition.
Tuchman’s five-stage theory of group development:
In the forming stage, the team may appear cohesive; however, there is an underlying ambivalence and concern about the unknown task, members, and leader. The team relies on the leader to make sense for them and provide direction by articulating the goals.
During the storming stage, team members attempt to define their roles and responsibilities and how they will work together. Conflicts and resistance often occur and the leader can be helpful by guiding role clarification and definition and helping members resolve conflicts.
As the group moves through the norming stage, team members have a realistic understanding of the task, each other, and the leader. Norms are established and energy and enthusiasm is displayed.
The performing stage is known as the productive stage when the team begins to see significant payoffs from their shared history and the work norms they have developed.
In the adjourning stage, team members must make the transition from becoming part of a cohesive team to enlarging their network and sharing their knowledge gained from the team experience.

Task roles: * Initiator suggests new goals or ideas * Information seeker/giver clarifies key issues * Opinion seeker/giver clarifies pertinent values * Elaborator promotes greater understanding through examples or exploration of implications * Coordinator pulls together ideas and suggestions * Orienteer keeps group headed toward its stated goal(s) * Evaluator tests group’s accomplishments with various criteria such as logic and practicality * Energizer prods group * Procedural technician performs routine duties * Recorder performs a “group memory” function by documenting discussion and outcomes
Maintenance Roles: * Encourager fosters group solidarity by accepting and praising various points of view * Harmonizer mediates conflict through reconciliation or humor * Compromiser helps resolve conflict by meeting others “half way” * Gatekeeper encourages all group members to participate * Standard setter evaluates the quality of group processes * Commentator records and comments on group processes/dynamics * Follower serves as a passive audience * The Asch effect is the distortion of individual judgment by a unanimous but incorrect opposition. * In Asch's experiment, group pressure was created by asking one naive subject to indicate which line on the right was equal to the standard line on the left. All of the other “subjects” were actually confederates who purposely chose the wrong line. Thus, the one naïve subject was asked to make an obvious perceptual judgment, but in doing so he or she must make a different judgment from the rest of the group. * Listed here are three desired outcomes of conflict. * Agreement is desired because unresolved conflicts typically come back as problems in the future. Therefore, it is best to handle conflicts positively so that a mutually acceptable agreement can be made. * Stronger Relationships are desired because conflict that is resolved positively is more likely to lead to future interaction and information sharing between parties. * Learning results from positively resolved conflict that helps shape our behavior and helps us grow as individuals. * Let’s discuss different ways of handling conflict. Researchers have categorized conflict styles based on two dimensions: concern for others and concern for self. Put another way, we can discuss each of these styles in terms of who loses and who wins. * The dominating style can be described as the “I win, you lose” perspective. Those with this style are characterized as being assertive and uncooperative and striving to have their own needs met at the other’s expense. This style is good if the aggressor is right and has a better solution than a group would come up with. It’s bad when it results in poorer human relations and causes resentment among others. * The obliging/accommodating style is the “I lose, you win” perspective. This style is characterized as being unassertive and cooperative, neglecting self to satisfy others; believing that being accepted by others is more important than achieving personal goals; not wanting to cause trouble, and being self-sacrificing and generous. This style is good when relationships are maintained, but it may be counterproductive if the accommodator has a better idea or solution. This style works best when the relationship is the most important consideration, the issue is important to the other party but not to you, and time is limited. If this approach is used repeatedly, it may breed contempt on the part of the accommodators and they may get taken advantage of. * The avoiding style is the “I lose and you lose” perspective. This style is characterized by being uncooperative and unassertive, not being concerned with self or others, not addressing the conflict, withdrawing, side stepping, and postponing. This style is good when it maintains a relationship that would be hurt if the issue were resolved. However, the issue doesn’t get resolved; and if this is used too often, the problem will get worse because the problem is unlikely to go away on its own. * The integrating/collaborating style is the “you win, I win” perspective. This style is characterized by being assertive and cooperative, satisfying both parties’ concerns, finding underlying issues, reaching creative solutions, and colluding. This problem-solving style tries to find the solution that will meet everyone’s needs. Those with this style are willing to change to meet a mutually beneficial solution that is based on open and honest communication. This style is good because it seeks optimal solutions; however, it can take time, patience, and lots of discussion to get to it. This is the best approach when maintaining relationships is important, time is available, group goals are valued more than personal goals, and when an important issue is involved where finding the best solution is critical. * The compromising style is the “I win some, you win some” perspective. This style is characterized by using intermediate assertiveness and cooperativeness and achieving a mutually acceptable solution that partially satisfies both by splitting the difference and exchanging concessions. This style is useful because it can usually be accomplished quickly while maintaining relationships. The down side is that the results may be sub-optimal and can lead to playing games such as asking for twice as much initially so that the compromise will be closer to what they wanted to begin with.
Company mission statement – a broadly framed but enduring statement of a firm’s intent. It is the unique purpose that sets a company apart from others of its type and identifies the scope of its operation in product, market, and technology terms.

Horizontal Integration * When a firm’s long-term strategy is based on growth through the acquisition of one or more similar firms operating at the same stage of the production-marketing chain, its grand strategy is called horizontal integration * Such acquisitions eliminate competitors and provide the acquiring firm with access to new markets
Vertical Integration * When a firm’s grand strategy is to acquire firms that supply it with inputs (such as raw materials) or are customers for its outputs (such as warehouses for finished products), vertical integration is involved * The main reason for backward integration is the desire to increase the dependability of the supply or quality of the raw materials used as production inputs
Concentric Diversification * Concentric diversification involves the acquisition of businesses that are related to the acquiring firm in terms of technology, markets, or products * With this grand strategy, the selected new businesses possess a high degree of compatibility with the firm’s current businesses * The ideal concentric diversification occurs when the combined company profits increase the strengths and opportunities and decrease the weaknesses and exposure to risk
Conglomerate Diversification * Occasionally a firm, particularly a very large one, plans acquire a business because it represents the most promising investment opportunity available. This grand strategy is commonly known as conglomerate diversification. * The principal concern of the acquiring firm is the profit pattern of the venture * Unlike concentric diversification, conglomerate diversification gives little concern to creating product-market synergy with existing businesses
Parts of a strategic plan:
Mission statement – what company seeks to accomplish and the manner in which the organization seeks to accomplish it.
Vision Statement – concise statement of organizations future. What company will look like in 5 or more years.
Values Statement – core beliefs
SWOT – summarized view of current position, strengths, weaknesses, opportunities and threats.
Long-Term strategic objectives – 3 yrs or more and it answers the question of what you must focus on to achieve your vision.
Strategies – general methose you intend to use to reach your vision.
Short term goals – convert the strategic objectives into specific performance targets that fall within 1-2 yr time.
Action items – specific statement explain how a goal will be accomplished.
Evaluating Differentiation * Differentiation requires that the business have sustainable advantages that allow it to provide buyers with something uniquely valuable to them * Differentiation usually arises from one or more activities in the value chain that create a unique value important to buyers * Strategists use benchmarking and consider the 5 forces in considering differentiation

* Strategic control is concerned with tracking a strategy as it is being implemented, detecting problems or changes in its underlying premises, and making necessary adjustments
Characterized as a form of “steering control” * Premise control is designed to check systematically and continuously whether the premises on which the strategy is based are still valid * Environmental factors * Industry factors * Strategic surveillance is designed to monitor a broad range of events inside and outside the firm that are likely to affect the course of its strategy * Strategic surveillance must be kept as unfocused as possible * Despite its looseness, strategic surveillance provides an ongoing, broad-based vigilance in all daily operations
SWOT
* An opportunity is a major favorable situation in a firm’s environment * A threat is a major unfavorable situation in a firm’s environment * A strength is a resource or capability controlled by or available to a firm that gives it an advantage relative to its competitors in meeting the needs of the customers it serves * A weakness is a limitation or deficiency in one or more of a firm’s resources or capabilities relative to its competitors that create a disadvantage in effectively meeting customer needs * RBV is a method of analyzing and identifying a firm’s strategic advantages based on examining its distinct combination of assets, skills, capabilities, and intangibles * The RBV’s underlying premise is that firms differ in fundamental ways because each firm possesses a unique “bundle” of resources * Each firm develops competencies from these resources, and these become the source of the firm’s competitive advantages