Management
Saturday, April 12, 2014
Generational Divide - New Research Trade Publication, Coming Soon :)
Monday, September 2, 2013
Managing Spiritual Employees - Spirituality in the Workplace
This week I have been thinking about spirituality in
the workplace because I feel that religion and/or spirituality has no place in society, except in a church setting. I feel
that personal opinion on matter of politics and religion should be kept private
and no one should preach to others about their beliefs, least of all at work; however
I respect all belief systems. I believe that
there is a time and place for religion/spirituality and that company time should
be spent on company matters. However, if people want to place religious
artifacts (tastefully) on their desks, or if they wish to pray at lunch time on
their own time, I do not see an issue with that at all because, after all, I
would appreciate other people respecting my beliefs. Also, because after reading and doing some
research on the subject, it seems that people tend to be more creative and
productive when they are allowed personal freedoms at work and more and more
people are enjoying spirituality at work. According to the text on page 361, “workplace
spirituality is increasingly becoming a fundamental part of the quality of work
life experienced by organizational members” (Bowditch, Buono, & Stewart,
2008). So, is the workplace spirituality
movement a good thing or a bad thing for all of those involved? Also, is this kind of workplace change going
to help companies long or short term?
Many
people confuse religion with spirituality and link their spirituality to a
specific religion. The reason I am
against the workplace spirituality movement is because I feel that if religion-based
spirituality is allowed on company time, this could be an issue due to the fact
that there are so many different types of religions in the world, and the workplace
is very diverse. Just from the top of my
head I can count 20 different religions, plus many religions have a different
sect. Companies would have to cater to all or allow all religions and not just
one, which could take considerable time, depending on the size of the
workplace. Also, religion and
spirituality being what it is (everyone believes their way is the correct way),
it could also cause discrimination in the workplace among employees; after all,
religion-based spirituality tends to create discrimination worldwide. According to Audra Lowe from Better TV,
“charges of religious discrimination in the workplace have exploded in the past
decade, rising faster than any other form of discrimination complaints” (2010).
Audra Lowe asks, was this “a good idea gone
bad, or just poor execution?” (2010). Margie Warrell (Better TV, 2010), author of Find Your Courage states that the
workplace is a great place to talk and discuss spirituality because of the time
spent on the job. Warrell also states
that companies are not pushing a religious agenda by allowing employees to be
spiritual at work. Spirituality has not
been in the workplace for many years and now we have the workplace spirituality
movement (change in the organizational atmosphere). According to the text on page 360,
“historically, the human spirit – with its hopes, dreams, and aspirations – has
largely been excluded from the workplace” (Bowditch, Buono, & Stewart,
2008). However, with this new movement,
spirituality in the workplace is getting more and more attention as the years
slide by.
Contrasts / an alternative
view to the insight:
So
researching on the topic, I felt that the information only supported my previous
beliefs about the workplace spirituality movement which was that it hurts more
than it helps and it is not good for companies short or long term. These beliefs are biased and very subjective;
therefore I did more research on the matter and it seems that the text was
correct in stating that “people must be able to express their values and share
their hopes if they are to fully tap into their creative potential” and “the
role of spirituality in the workplace has begun to take on increased
prominence” (Bowditch, Buono, & Stewart, 2008, p. 360). I also
agree with Warrell (Better TV, 2008) that if there is no religious agenda
within organizations, that spirituality in the workplace should not be an
issue; also if people choose to be spiritual then let them, and if not, then
don’t bother those people with your beliefs – much like how people should
behave outside of a work atmosphere.
Now
about organizational change; this movement is creating change to organizations
and many companies have adopted this spirituality movement. In order for this change to occur seamlessly,
there are some things that need to be addressed. That is because organizational change does
not happen overnight, nor does it always take with the employees in the
organization. According to Kotter (1995),
organizational change will not happen if the change is not anchored to the
organization’s culture. That is to say
that if the organization accepts the workplace spirituality movement, but does
not support it as an organization or does not show that the organization itself
is open-minded and spiritual, then it will not work. Kotter (1995) states under error #8, “change
sticks when it becomes ‘the way we do things around here,’ when it seeps into
the bloodstream of the corporate body.
Until new behaviors are rooted in social norms and shared values, they
are subject to degradation as soon as the pressure for change is removed” (p.
67). So, the workplace spirituality
movement could be a great thing for employees and organizations if
discrimination is not an issue, if it truly opens up creativeness of the
employees, and if the organization supports the change as a whole.
What does anyone else think about the workplace
spirituality movement? Is it a good
thing, or a bad thing? Should religion
be grouped in with spirituality? Is the
spirituality moving through someone’s workplace now? If so, how is it affecting the organization
or other employees?
References:
Bowditch, J. L., Buono,
A. F., & Stewart, M. M. (2008). Chapter 11:Organization Development and
Change. A Primer on Organizational
Behavior (7th ed., p.360-361). Hoboken, NJ: Wiley.
Kotter, J. P. (1995,
4). Leading Change: Why Transformation Efforts Fail. Harvard Business Review.
Retrieved December 4, 2012, from http://hbr.org/2007/01/leading-change-why-transformation-efforts-fail/ar/1
Lowe, A. (2010). Spirituality in the Workplace. Retrieved December 3, 2012, from
http://on.aol.com/video/spirituality-in-the-workplace-258155260
Thursday, August 29, 2013
Ethical Climate vs Ethical Culture
Both ethical climate
and ethical culture are two terms that have been used interchangeably in
organizations to describe overall ethical aspects within organizations. However, many different scholars have pointed
out differences between the two terms, as well as similarities, and have
defined the two terms in their own way. First,
I will define the terms, and then I will describe the differences and
similarities between ethical climate and ethical culture.
Definitions:
Ethical climate is defined by Trevino, Butterfield and
McCabe (1995) as a construct that “measures organizational members’ perceptions
of the extent to which the organization’s normative systems are consistent with
a number of normative ethical theories" (p. 10). As I understand this then, ethical climate
is the employees’ perceptions on how the organization works and how the
organization complies with ethical decisions overall as well as how the
organization is viewed by others.
Another definition of ethical climate is: “Ethical climate refers to an organization's culture,
environment, motives, and pressures. It is the role of senior executives to
establish, drive and reinforce ethical climate throughout an organization”
(Marwick, 1997). Therefore, Marwick is
stating that the ethical climate is also the ideas of an organization and the
culmination of other ethical aspects within an organization that gives the
company an overall value system that is ultimately cared for and looked after
by management. According to Bowditch,
Buono, and Stewart, ethical climate is also a construct that applies not necessarily
to reality but to the perceptions and evaluations of employees (2008, p.
335). Overall then, the definition of ethical climate
can be culminated to state it is a combination of an organization’s beliefs or
value systems and the alignment of those beliefs with employee perceptions and
how the company appears to people overall.
Trevino, et al defines
ethical culture as “a subset of organizational culture, representing a multidimensional
interplay among various formal and informal systems of behavior control that
are capable of promoting ethical or unethical behavior” and therefore can also
be a good predictor of employee behavior (Key, 1999). The Canadian Center of Ethics describes
ethical culture as the part of an organization’s culture “that drives beliefs,
norms, and actions” of employees (Ethics Centre CA,
2008). Therefore with these definitions
that are very close to one another, it is safe to state that the ethical
culture is defined as an integral part of organizational culture which is based
on value systems and beliefs that control and organize employees’ behaviors
through value systems and beliefs.
Differences:
With the definition of ethical culture and ethical
climate examined, the differences are apparent that, though similar (discussed
below), these two issues in management and business are separate and
distinct. Ethical culture is aimed at
controlling behaviors and includes such things as rewards, rules, and norms
within an organization whereas ethical climate is the outward and inward
appearance of an organization which relates the organization’s overall values
to employees and outsiders (Ethics & Compliance Officer Association, 2007). According to Trevino, et al, ethical culture
consists of “formal and informal control systems (e.g. rules, rewards, and norms)
that are aimed more specifically at influencing behavior”; and the ethical
climate of an organization includes “broad normative characteristics and
qualities that tell people what kind of organization this is—essentially what
the organization values” (2001, p. 308). Some major differences between ethical
climate and culture include:
Ethical Climate:
|
Ethical Culture:
|
Mainly
based on psychological theory.
|
Mainly
based on anthropological theory.
|
Includes
decision-making criteria; focuses on behaviors, employee attitudes and
outwardly visible organization values.
|
Includes
rewards, norms, rules, and a punishment system.
|
Focuses
on the overall impact of the image of the organization – the organization’s
personality.
|
Includes
informal and formal control systems that regulate and influence employee
behavior as well as teach employees how to behave.
|
Note: Table adapted from the Canadian Center
for Ethics and Corporate Policy: http://www.ethicsworld.org/corporategovernance/PDF%20links/ManageEthicsNL_Summer08_FA.pdf
Essentially, ethical culture is different from ethical
climate in that ethical culture is considered a directional tool that provides
employees with direct for their every day behaviors with reward/punishment
systems in place – the anthropological aspect of an organization. Ethical
climate is included in the organization’s ethical culture and is the overall
way employee’s and outsiders view the organization – the psychological aspect
of an organization (Ethics & Compliance Officer Association, 2007).
Similarities:
Ethical culture and ethical climate
overlap because ethical climate is a part of ethical culture (Appelbaum, Deguire,
& Lay, 2005). Through reading and
research, it seems that both of these terms are used interchangeably within
organizations but are also considered to go hand-in-hand in many ways. For instance, both ethical climate and
ethical culture influence the overall organizational culture and impact rates
of misconduct, organizational expense, employee performance, employee
commitment to an organization, employee perceptions of authority and
leadership, and employee satisfaction.
The ethical culture is created by the ethical climate and it is the
manager’s job to handle and appropriate rules, rewards, punishments, and an
overall positive image of the company to employees at all times to maintain
both the ethical culture and climate; “the attitudes, choices, and actions of
business leaders play a primary role in the creation of an organization’s
ethical culture and climate” (Ethics & Compliance Officer Association,
2007). Therefore, although ethical
culture and ethical climate are scholarly different aspects within an
organization, an overlapping occurs between the two elements; employees use the
terms interchangeably and both ethical culture and climate affect similar aspects
within the organization itself.
References:
Appelbaum, S. H., Deguire, K. J., & Lay, M.
(2005). The relationship of ethical climate to deviant
workplace behaviour. Appelbaum Consultants.
Retrieved November 9, 2012, from
www.appelbaumconsultants.com/articles/2005-06/relationship.PDF
Bowditch, J. L., Buono, A. F., & Stewart, M. M.
(2008). Chapter 5: Group Dynamics. A
Primer on Organizational Behavior
(7th ed., p. 155). Hoboken, NJ: Wiley.
Bowditch, J. L., Buono, A. F., & Stewart, M. M.
(2008). Chapter 10: Organizational Culture and Effectiveness.
A Primer on Organizational Behavior
(7th ed., pp. 325-328, 335). Hoboken,
NJ: Wiley.
Ethics Centre CA. (2008). Developing and Maintaining
an Ethical Corporate Culture. Canadian Center for Ethics and Corporate Policy.
Retrieved November 8, 2012, from http://www.ethicsworld.org/corporategovernance/PDF%20links/ManageEthicsNL_Sum mer08_FA.pdf
Ethics & Compliance Officer Association. (2007,
October 15). Ethical Culture Building: A Modern
Business Imperative. Ethics Resource
Center. Retrieved November 6, 2012, from
www.ethics.org/files/u5/ECOA-Report-FINAL.pdf
Key, S. (1999). Organizational Ethical Culture: Real
or Imagined?. Journal of Business Ethics,20(3), 218,219.
Khai, E. (2012). Hawthorne Effect (Mayo). All you need to know about management. Retrieved November 11, 2012, from http://www.12manage.com/methods_mayo_hawthorne_effect.html
Marwick, P. (1997). KPMG US -- Business Ethics. www.andrew.cmu.edu. Retrieved November 7, 2012, from http://www.andrew.cmu.edu/course/80241/guided_inquiries/articles/kpmg_bus_ethics_proc.html
Tharp, B. M. (2012). Defining “Culture” and
“Organizational Culture”: From Anthropology to the
Office. Haworth. Retrieved November
11, 2012, from www.haworth.com/en-us/knowledge/workplace-library/documents/defining-culture-and-organizationa-culture_5.pdf
Trevino, Butterfield and McCabe (1995), ‘Contextual
Influences on Ethics-Related Outcomes in Organizations:
Rethinking Ethical Climate and Ethical Culture’, paper presented at the Annual
Academy of Management Meeting, Vancouver, BC.
Trevino, Butterfield and McCabe. (2001). The Ethical
Context in Organizations: Influences on Employee
Attitudes and Behaviors. The Next Phase
of Business Ethics, 3: 301-337.
Wilkins, A. (1984). The creation of company
cultures: The role of stories and human resource systems. Human Resource
Management, 23(1), 41-60.
Thursday, August 15, 2013
Management: Affirmative Action and Diversity Training
In
Favor of Diversity Training:
“Here is not merely a
nation but a teeming Nation of nations.” “Here the flowing trains, here the
crowds, equality, diversity, the soul loves” (Whitman & Beach, 2012).
The United States is a land full of diverse
people – we are not a nation of just one race, gender, religion, sexual
orientation, etc… The only thing most of
the people of America actually have in common is that our ancestors all
traveled here by way of the ocean. Diversity
is around everyone of us constantly; especially in the workplace. I am from a small town called Farmington
Missouri and even in this very small town I have friends of all colors,
nationalities, sexual orientation, both male and female, of all ages, and
religions. It is because of this
diversity among people that there is a large need for effective diversity
training in the workplace. I say
effective diversity training here, because the training needs to be done
properly and needs to be taught by an instructor who actually understands how
to teach the program based on research/tools that have been proven to assist
employees in the training process. If a
manager is simply going through the motions and just doing what is required of
them to get people through a training program, then chances are that the
program is not going to be as effective as it would be if a proper instructor
was doing the training.
Some people cannot rely
on parental guidance, legal reprimand, or even social cues to learn how to be
tolerant and respectful of others. From
what I have personally witnessed myself, some people enjoy being rude and
ignorant when it comes to other people who are different than they are (even if
they know it’s wrong to admit aloud that they are prejudice). Ignorance fuels discrimination and inhibits
diversity. However, ignorance is a
curable affliction - "Teaching leads to understanding, understanding leads
to tolerance, tolerance leads to diversity, diversity leads to acceptance and
acceptance leads to peace” (Fang, 2005).
This is why diversity training is necessary in the workforce. The information regarding diversity needs to
be given to people; after all, would a little education hurt anyone? Even if a person is extremely tolerant,
diversity training would simply be a reinforcement tool. It is my experience when re-learning
something, I always learn something new.
The overall goals of
diversity training are to “minimize discrimination and harassment lawsuits” and
to improve “acceptance and understanding of people with different backgrounds,
experiences, capabilities, and lifestyles” (Mathis & Jackson, 2009). However, giving information to people is
simply not enough. People must embrace
the idea behind the information; “Research has shown that it is only when
people take diversity personally that they are able to turn it into a practice
at work” (Gilliard, 2008). Therefore,
the concept of tolerance and acceptance must also be integrated into an
effective diversity training program in addition to the basic information of
diversity in the workplace and the person/employee needs to be a willing
participant in the training program. Managers truly need to be able to provide
effective diversity programs for their employees in an attempt to educate them
on the diverse nature of the workplace.
Diversity is prevalent in the workplace and a good program to teach
diversity is essential to the harmony of a diverse set of employees. “Diversity
is a reality for employers today, and effective diversity management is crucial
to HR management” (Mathis & Jackson, 2009).
As a side note, and
something to ponder – diversity leads to synergy; new ideas from a diverse
background of people. The introduction
and mixing of cultures, languages, technology and much more comes from the fact
that the world is diverse and people do have the ability to communicate effectively
with those who are different than themselves (the Internet, and globalization
are examples). Now, my question is, how
would the world be if all people remained in their own little groups of
all-white, all-black, all-Asian, all-gay, all-straight, all-Christian,
all-Muslim, all-female, all-male groups?
How would the workplace be different if it was like this? How would it be better or worse? Would there be as much discovery and
innovation in the world? These types of
questions are important to me because I feel as a human race, these trivial
issues of skin color and other genetic assignments should not be considered
whatsoever. And for those who are not sure how to treat fellow humankind in the
workplace (or the world for that matter), effective diversity training is a
step in the right direction.
References:
Fang, S. (2005, Jul
12). Ignorance, terrorism go hand in hand. The
Atlanta Journal - Constitution, pp. 13-A.13. Retrieved from http://search.proquest.com/docview/337201135?accountid=38003
Gilliard, J. P. (2008).
Diversity training: A study of the impact of diversity training on
organizational performance, financial results and accountability. Capella
University). ProQuest Dissertations and
Theses, , n/a. Retrieved from
http://search.proquest.com/docview/304815214?accountid=38003. (304815214).
Mathis, R. L., &
Jackson, J. H. (2009). Equal Employment/Diversity. Human resource management essential perspectives (5th ed., p. 56,57).
Australia: South-Western Cengage Learning.
Whitman, W., & Beach,
J. M. (2012). Book XXIII. Walt Whitman:
Leaves of grass (the complete1891-92 edition) (p. 241). Austin, TX:
Createspace. (Original work published 1892)
Against
Affirmative Action:
This word alone does
not sit well with many people when thinking about Affirmative Action. The
purpose of Affirmative Action is to include minorities who would otherwise not
be included in the workplace due to possible discrimination. “Through Affirmative Action, employers are
urged to hire groups of people based on their race, age, gender, or national
origin to make up for historical discrimination” (Mathis & Jackson,
2009).
Does Affirmative Action
cause Reverse Discrimination, polarization, resentment, and separatism among
employees:
Many Americans feel
that Affirmative Action is a form of reverse discrimination; that if they are a
white male, they have fewer opportunities in the workplace. A testing technician in Gilbert, Arizona,
Joseph Ruhnke, stated “It just makes
me upset when this subject gets thrown down your throat. I'm a white single
male and they try to make you feel guilty because they're not getting jobs and
that it's our fault. It's not my fault that somebody can't get a job.” (Morin
& Warden, 1995). When employees are
upset in the workplace and feel they are discriminated against but have no real
outlet to protect them such as the minorities, I can see where there can be
polarization, resentment, and separatism.
It would seem that Affirmative Action reinforces separatism not with
skin color, race, or religion, but by grouping minorities against the majority
which is the white male. Some people in
the minority group see things just a little differently than Joseph Ruhnke.
Graig Gillis, age 25, stated, “There should be some type of reparations for 300
to 400 to 500 years of discrimination of all types of minorities, not just
blacks” (Morin & Warden, 1995). But
there already has been justice for the inequalities against women, African
American, Native Indian, and more minorities in the United States. When is enough, enough? No wonder there is some resentment,
polarization, separatism, and feelings of reverse discrimination in the
workplace. Even with laws and policies
in place, the NAACP, all-black movie channels, etc... Some people still want
more and believe just due to their skin color they are owed more. This sense of entitlement from a white
person, black person, Asian person, gay person, or any person in general
creates resentment in other people. Dan
Oswald states regarding the Declaration of Independence: “Nowhere in there does
it say we are entitled to respect or to be treated a certain way. And expecting
those things, having a sense of entitlement, causes bitterness and resentment.”
(Oswald, 2012). One of the key points outlined in the text
states “Affirmative Action creates more equality for all persons, even if
temporary injustice to some individuals may result” (Mathis & Jackson,
2009). And the debate is before us under
this section because “Affirmative Action penalizes individuals (males and
whites) even though they have not been guilty of discrimination” (Mathis &
Jackson, 2009). Since Affirmative Action is based on equality and fairness,
does this seem truly fair?
Though
quotas are illegal in the United States, do the goals of organizations
sometimes become quotas when hiring minorities:
According
to the text, “Goals become quotas by forcing employers to ‘play by the numbers’”.
(Mathis & Jackson, 2009). The Supreme Court ruled on June 28, 1978
through the Bakke decision (formerly The University of California Regents v.
Bakke) that quotas were unconstitutional.
Allan Bakke, a white male, applied for medical school and was denied
even when minority students were admitted to the program that had lower
scores/admission requirements - “applicants
were admitted under the special program with grade point averages, MCAT scores,
and benchmark scores significantly lower than Bakke's.” (UNIVERSITY OF
CALIFORNIA REGENTS 1978). The argument for Bakke fell under The
Equal Protection Clause of the Fourteenth Amendment and Title VI of the 1964
Civil Rights Act which states: “No person in the United States shall, on the
ground of race, color, or national origin, be excluded from participation in,
be denied the benefits of, or be subjected to discrimination under any program
or activity receiving Federal financial assistance”. (Title VI, 1986). Even though quotas are illegal due to
precedence now in the United States, another point is to be made from this
case: Why an executive order now when
there are other protections granted through precedence and The Equal Protection
Clause and the Civil Rights Act of 1964 that clearly protects anyone, not just minorities, from
discrimination under the law?
Do the minorities being
hired actually want the charity of Affirmative Action (case in point: white
women):
A
story:
As a white female, I do not feel the need for
Affirmative Action. I feel that my
gender has not had an effect on my grades, my life, my personal or professional
circumstances and quite frankly the only time I do get offended is when I am
referred to as “the weaker sex” or a “minority” because I have good self-esteem.
I do not appreciate the labels, nor do I need the labels in order to succeed in
life. I had never been discriminated
against due to my race, gender, age, or sexual orientation until I was hired
for the purpose of having a woman on an all-white, all-male sales team at an
organization when I was 19 years old (I was actually told that is why I was
being hired by my boss at the time). I
was not qualified as much as other applicants and I found this out later, but I
was 19, I had a daughter to support and I was not going to turn down a
job. I performed the job well, however
the men at the job were upset and angry that their boss hired a woman for the
position “just because” and because of the fact that I had no official training
for the job. They left pictures of naked
women on my desk, they called me derogatory names referring to my sexual
orientation (they thought I was gay for some reason), and having been a new
mother, they would often call me at my desk and pretend to be advocates from
the Division of Child Services claiming I was being investigated. A couple of the salesmen even exposed
themselves to me. Could I have sued on
so many different levels of injustice here?
Certainly. Did I? No. I didn’t because I did not want or need anyone’s
pity. Instead I made a plan. I took all of their sales by simply being a
better salesperson; I then called the main office and reported my sales for the
previous two months because my sales were not being sent in for some reason
before. I was given “Employee of the
Month” for my last two months of work and the owner of the organization came
down to Cape Girardeau from St. Louis to personally thank me and take me out to
dinner for a job well done. After proving
that I could not only do the job better as an untrained salesperson, I quit
citing my reasons as “personal” and in the letter I stated that I was “proud to
be the only salesperson in the history of the organization to have achieved 242
sales in only 45 days after only being hired for 4 months”.
Sure, I felt horrible
and what they did was not only wrong, it was illegal in many ways, but I did
not need pity or a push. I feel that
perseverance in the face of diversity, tolerance in the face of ignorance, and
gaining respect of peers through hard work is what is truly important. One year later, I re-applied to the
organization after all of the people who previously worked there were fired or
left for their own reasons. I worked
there for another 6 months and maintained very high sales records (I left
because I had to move to a different city).
I was not hired again because I was a woman, I was hired because I had
more sales experience than the former applicants (and I made sure of it this
time). This experience taught me a lot
about diversity as well as the workplace environment, but most of all it taught
me how not to hate or be resentful toward people just because a handful of
those types of people were ignorant. In
other words, I do not feel that society owes me anything; I feel that I owe my
society something. I am not alone in the feelings of other people labeled the
same way in our society as a minority. “Two out of three women opposed affirmative
action preference programs for women, compared to three out of four men.”
(Morin & Warden, 1995). Maybe in the
1960’s and 1970’s Affirmative Action was the most helpful but I feel that it
has worn out its welcome. “Few white women think themselves beneficiaries of
affirmative action, and most are simply not open to the idea that they have
been; few if any expect it to help them in the future; and most share the same
concerns as white men regarding "reverse discrimination," or the
perceived hiring of unqualified minorities.” (Wise, 1998).
Side note ** On the case for both diversity training and Affirmative
Action, one clear constant keeps arising – that is the level of education and
qualifications of people after K-12 school.
I have run into countless articles providing direct links between
quality of education, intelligence, pay scale, and tolerance. I read complaints regarding a level playing
field for all races but the ground is only truly level when there are equal
qualifications. Perhaps the problem really isn’t with the types of diversity
training, or the “temporary injustices” of Affirmative Action; however perhaps
the problem rests with the quality of education for our children in the United
States?
References:
Mathis, R. L., &
Jackson, J. H. (2009). Equal Employment/Diversity. Human resource management essential perspectives (5th ed., p. 57,58).
Australia: South-Western Cengage Learning.
Morin, R., &
Warden, S. (1995, March 24). Washingtonpost.com: AMERICANS VENT ANGER AT
AFFIRMATIVE ACTION. Washington Post:
Breaking News, World, US, DC News & Analysis. Retrieved September 9,
2012, from http://www.washingtonpost.com/wpsrv/politics/special/affirm/stories/aa032495.htm
Oswald, D. (2012, March
2). Dangers of a Sense of Entitlement | The Oswald Letter by Dan Oswald. Hr Hero Blogs. Retrieved September 9,
2012, from http://blogs.hrhero.com/oswaldletters/2012/03/02/dangers-of-a-sense-of-entitlement/
Title VI, Civil Rights
Act of 1964. (1986, October 21). OASAM. United
States Department of Labor. Retrieved September 9, 2012, from
http://www.dol.gov/oasam/regs/statutes/titlevi.htm
UNIVERSITY OF CALIFORNIA
REGENTS v. BAKKE, 438 U.S. 265 (1978). Retrieved from http://caselaw.lp.findlaw.com/cgi-bin/getcase.pl?court=us&vol=438&invol=265
Wise, T. (1998). Is
sisterhood conditional: White women and the rollback of affirmative action. NWSA Journal, 10(3), 1-26. Retrieved
from http://search.proquest.com/docview/233240063?accountid=38003
Thursday, August 8, 2013
Management - Internal and External Environments
I owned a business for over 10 years and with owning the business
I noticed that I could create (or better yet, control) the internal environment
but also that the external environment influenced my company greatly – much
more so than I could control. Everything
I controlled within my business was a response in one way or another to the
dynamic external environment. As an
example, I could choose to carry specific product lines, where to ship, what
relationship to create, build, or discard, and whether or not I wanted to be
more customer-centric. There were many
variables that I could experiment with to create more profits; however, I could
not control many things. Consumer
demand, new government policies or recalls on baby items, government fees,
prices offered by my competitors, new entrants into the industry, and customer
issues with product shortages (supply) were all uncontrollable aspects of the
external environment and all of these aspects affected the way I did business,
internally.
Expanding on the issue of an organization creating its environment
is relatively complex because it largely depends on the type of
organization. For instance, Weick
mentioned in his article that Polaroid was able to create a situation where the
stock was “less attractive to hold” and ultimately satisfied a “self-fulfilling
prophecy” (Weick, 2001). Weick stated
through examples that banks, actors, and physicians can also create their
environments through investor size and contribution, improvisation in theater,
and type 2 errors when diagnosing patients.
Essentially when a company is creating its environment, it is creating a
situation where the environment is conducive to growth and their structure is
not necessarily attached to the demands of the external environment. My argument is this: How can a company truly believe they are
creating their own environment when they are creating/controlling the
environment in response to ultimate consumer or other demand? I mean, the entire existence of the
organization is for the purpose of helping others, creating profit, other
otherwise dealing with other people in general.
I can understand how creation of the environment can be seen in the
examples that Weick provided, but people bailing out on stock? Doctors
diagnosing patients incorrectly get more business; and improvisational actors
having fun? I agree that these
organizations are being more proactive than reactive to their specific environments;
however the situations in these examples are not necessarily contributing to
the growth of business (monetarily or otherwise). My main concern here is do companies create
the environment because they want to or because they need to (response
mechanism to externalities)? I feel that
Weick’s article is very interesting and is a good read; however I feel that the
examples have narrow scope and are not exactly indicative of the majority of
organizations. That is to say for
instance that I hope doctors are not creating type 2 errors with the majority
of their patients. I feel that
organizations evolve and adapt to changes in the external environment, but also
try to control as much as possible, even if most of that creation or control is
sometimes impossible and/or solely internal.
As stated in the text on page 274, “It is important to realize that
while organizations can learn and adapt to their environment, they also, to
varying degrees, attempt to change and control their environment” (Bowditch,
Buono, & Stewart, 2007).
Expanding on the issue of external environments influencing
organizations is also complex, because, again, it largely depends on the type
of organization to what degree the external environment has on the
organization. All organizations are
affected by the general external environment which is discussed by Dr. Olga
Chapa from the University of Houston-Victoria as “the economic, technological, sociocultural, and political trends that
affect all organizations” (Uhv.edu, 2010).
In my company, I constantly had to change, or evolve, to the ever
pressing demands from consumers. I had
to pay very close attention to recalls from the government, watch for new
entrants into the industry, and constantly benchmarked competitor’s pricing and
programs. I could control the
environment of the organization when it came to internal policies, which
products to carry, and overall organizational climate. However, I could not
control the external environment; instead I had to respond to it in order to
survive in the industry. For instance
when customers were complaining about certain aspects of customer service, I
had to change some of the corporate culture to respond to the demands. As stated in the text, “organizations are
open systems that are influenced by a multitude of environmental forces”
(Bowditch, Buono, & Stewart, 2007). I completely agree with this statement, furthermore
I believe that even though organizations try to create or control their
environment they also are influenced by the environment and that an open system
is a better choice for most organizations today due to the dynamic nature of
the environment itself. I feel this way because of consumer demands,
economic issues, political conditions, rapid change in technology, and various
other dynamic external conditions need to be responded to by an organization. It
is this response that ultimately shapes the strategy the business uses. The organization needs to be sensitive to the
changes and respond appropriately and quickly to those external changes in
order to succeed. According to the
Encyclopedia of Business Reference for Business online, “research during the 1960s showed that traditional
bureaucratic organizations generally failed to succeed in environments where
technologies or markets were rapidly changing. They also failed to realize the
importance of regional cultural influences in motivating workers” (Referenceforbusiness.com, 2011). I feel that organizations simply cannot
afford not to be open systems due to the current market and
consumer interests / demands. But
organizations still need to implement control of their organizational
environment in response to the needs and pressures of the external
environment.
Weick takes the position that organizations mainly create their
environments. “Organizations are more
active in constructing the environments that impinge on them than is commonly
recognized” (Weick, 2001). Weick
believes that organizations create their environments and also have varying
degrees of control over these environments once they are built. Weick also states that “as an organization
increases in size it becomes more and more its own selection system and finally
quite literally does impose the environment that imposes on it”. So, essentially Weick is stating that
organizations build their own environments, and then eventually have to control
the other aspects of environment once it is imposed onto the organization. “Organizations have to build their
environment before they can even have the luxury of controlling them” (Weick,
2001). This statement says it all –
Weick’s view is that an organization does not automatically know the
environment because it has yet to be built and once it is built then the
organization can worry about controlling it.
And that the only thing that is truly known is what a person has already
done or what they are thinking. Weick is
concerned with the definitions of boundaries that are defined by other
people. He sees the definitions of these
boundaries as non-existent and problematic.
Weick stated that “an
organization can never know what it thinks or wants until it sees what it does”
(Weick, 2001). I understood this as an
organization can offer a good or service to consumers and based on the consumers,
then the organization can see what it wants and what it thinks about a
situation. Organizations will have to
respond, evolve, and/or adapt to the external environment, especially in the
case of a bad product or service being offered.
I wonder how Weick would reconcile advocacy groups, economic recessions,
and new laws that are passed which affect business as usual. Would Weick state that these were all
conditions because the organizations made them so? I can see Weick’s point, but I do not agree
with it. For instance, if I started a
company again selling any type of product retail, I would have to exam the
external environment first. The external
environment has a huge impact on what I can sell in this economy. Then as new laws are passed, I would have to
adhere to those laws; I would have to constantly adjust business due to the
changing external environment. I mean,
bell-bottom pants and polyester white leisure suits were cool back in the day,
but would they sell now? Making
adjustments due to the external environment is the evolution of an
organization.
Personal thoughts:
Weick used three examples, which were described above in answer
number 1, and states that the banks, physicians, and actors influence their
environment instead of the environment influencing them. At what point does an organization cross ethical
lines when attempting to influence their environment? Also,
Weick dives deep into his article discussing environments as a psychological
thing (he does have a Ph.D. in organizational psychology after all). So, I have another question: Are many organizations really solipsistic in
nature?
Cognition & Sensemaking
Karl Weick’s article
provided a link between cognition and the environment. I took away a lot from this because I
absolutely adore psychology and enjoy reading theories and various articles on
the subject, especially regarding cognition and reality. I felt that the entire take away from this
article was to understand how a person (or organization) can justify their
thoughts, rationalize their ideas and enact these emotions through sensemaking thus
creating their environment. According to
Dr. Weick, “sensemaking
fills important gaps in organizational theory.” And “The seemingly transient
nature of sensemaking belies its central role in the determination of human behavior,
whether people are acting in formal organizations or elsewhere” (Weick,
Sutcliffe, & Obstfeld, 2005). Even
though I have an opposing view on the some of Weick’s views (but I plan to read
a lot more of his articles), I can understand what Dr. Weick and his colleagues
were conveying –that people or organizations gather thoughts and ideas, put
them in order (organize them) and enact these thoughts back to the environment
in order to make their environments more logical overall. And this is why I took this part out of the
reading and enjoyed it the most – order out of chaos. It seems it is a human need to create,
control, project their feelings, and try to make sense of their environment,
always, even if there really is no connection. When people are faced with
ambiguity and uncertainty “people search for meaning” and “settle for
plausibility then move on” (Weick, Sutcliffe, & Obstfeld, 2005).
Connecting abstract thoughts to concrete actions, creating an environment, and
looking back in retrospect is the cornerstone of sensemaking. For instance, when I ran my business I would
often think, plan, do, and look back at the decisions I made and altered what I
needed to in order to control my environment.
However, I learned very fast that in my industry if my decisions did not
work out as planned that it was mainly due to outside influences such as demand
and supply; conversely, if my internal plans did work, it was because they were
in harmony with the external environment. If the demand did not run high or low and
remained stable, then my actions would have been to do nothing; it was because
of the flux in demand and supply that started a reaction in my business to
alter prices and to order more or less goods in a period. The decisions I did make created the
environment that produced more profit. So perhaps Weick is correct, perhaps I
made the decisions, thereby creating the environment and found myself inside my
own creation.
References:
Bowditch, J. L., Buono, A. F., & Stewart,
M. M. (2008). Organization-Environment Relations.A primer on organizational
behavior (7th ed., pp.
252, 274). Hoboken, NJ: Wiley.
Weick, K.E. (2001). In Weick, K.E. (ed.), Making Sense of the Organization:179-206,
Malden, MA: Blackwell Publishers.
Referenceforbusiness.com. (2012).
Organization Theory - Open-systems theory, Basic organizational characteristics,
Organizational theory in the 1980s and 1990s. Reference
For Business - Encyclopedia of Small Business, Business Biographies, Business
Plans, and Encyclopedia of American Industries. Retrieved August 28,
2012, from http://www.referenceforbusiness.com/small/Op-Qu/Organization-Theory.html.
Uhv.com.
(2010). Chapter 3 Summary. University of Houston - Victoria: Academic Web.
Retrieved August 29, 2012, from
http://www2.uhv.edu/chapao/MGT3311/outlines/chp3.htm
Weick, K., Sutcliffe, K., & Obstfeld, D. (2005). Organizing and the process of sensemaking. (4 ed., Vol. 16, pp. 409-421). Organization Science
Thursday, August 1, 2013
Management vs Leadership
I feel that both management and leadership are different in a literal sense and by
definition although they can both exist simultaneously. As an example, a manager is appointed or
hired to a position but could also be a leader (that is to say that leadership
is just one facet of management) and, conversely, a leader may be a leader with
or without holding the title of manager.
Also, I feel that both terms are in the title of this class because
leading is becoming more and more popular in management. According to David K. Williams, a
contributing writer for Forbes magazine online, "What if a company simply
dispensed with traditional managers? What if every employee had the opportunity
and potential to lead? What if everyone was given the freedom to consider “Am I
doing the right things?” instead of just “Am I doing things
‘right’?”". This is important
because companies of the future may consider dispensing formal management and
focus more on direct leadership due to the distinction leadership holds for
employees (Williams, 2012). Perhaps this
idea from David K. Williams has a lot of merit and is directly linked to the
Hypercaninophobia complex (aka top-dog fear) which is “fear caused in superiors
when an inferior demonstrates strong leadership potential” (Peter & Hull,
1969). It does make logical sense that
if a manager is also a leader, then the subordinates will follow the manager
instead of a leader born from a group.
There is a fundamental difference between the two terms;
however many people use the terms interchangeably both correctly and well as
incorrectly. The definitions are not
confusing but the practical applications can be and this is why the terms are used
interchangeably - sometimes justified, and sometimes not so much. The term management is defined by
Merriam-Webster's Collegiate Dictionary as "the conducting or supervising
of something (such as a business)", and the term leadership is defined by
the same source as the "capacity to lead". So does this mean that anyone who is a manager
is automatically also a leader or has the capacity to lead? The answer is no, and this is because not
every manager has this capacity, and not every leader has the title of
manager. Furthermore not every manager
wants the distinction of being a leader.
The only time a person is justified in using the terms interchangeably
is when the definition of the term(s) fit(s) the situation correctly. As an example I would like to point out that
a leader such as Dr. Martin Luther King, Jr. did not hold a management position;
and I have personally had managers in fast food environments that just
controlled situations, but they never gave any type of advice or other
direction to employees other than what was mandated by the franchise. Managers are also not always required by an
organization to be a leader due to the structure of the organization, so leadership
can also be considered an asset that a manager holds instead of a necessity. Therefore, the terms can only be used
interchangeably when a person holds the title of manager and also has the
capacity as well as the objective to lead.
Management and (or) leadership is
often contingent upon the structure and overall purpose of the organization.
My Philosophy on Management and Leadership:
In management, managers do things according to policy,
company rules, and generally by the book.
Managers form teams, control situations, organize meetings, staff
employees, and plan various activities that are all aimed at reaching the
overall goal of the company. Managers are viewed by employees as being
authoritative - a person that the employees must directly obey and carefully
listen to whether or not they actually want to.
A manager is hired to a specific
position and therefore a manager is more of a title rather than a label. I feel
that managers think critically about situations and try to stay within the
parameters of company guidelines. To
me, managing a situation means getting into chaos and straightening up a mess
in order to meet a goal or set of goals and a manager is a ruling authority
whereas a leader is someone to follow willingly due to their views,
characteristics, enthusiasm, and passion.
In leadership, leaders think more radically than managers;
they challenge norms, unite people to follow, use emotions to excite followers,
and set examples through their leadership. Leaders are normally not bound entirely by
organizational rules or structure and understand when, as well as how, to
challenge the status quo. Leaders may
not have the expertise of a company or organization like that of managers, but
are able to gain more employee loyalty. Loyalty, I feel, is a key difference between a
leader and a manager. People in general
tend to feel more loyal to a leader than to a manager and I feel this is
because they are not ordered to follow a leader; people actually want to follow
a leader due to the leader’s message, fervor, and direction.
Leaders are able to establish loyalty through
trust building and by creating enthusiasm in their followers. My favorite example of a great leader is Queen
Elizabeth I – she was not called the “manager of England”, and I believe this
is a good way to show the difference between the two terms (perspective). To
me, leading is setting an example by actions, through emotions, and creating
trust and loyalty among followers. If I
want to teach my children about science, I show them how fun science can be and
tell them stories of how science has changed my life and how it is beneficial
to them; if I want to lead a group in class, I show the members that I have the
capacity to contribute to the group and that their ideas and opinions are
extremely important to the success of the group; if I want to lead my employees
I take action, treat them with respect, get to know them on a personal level,
trust them as I want to be trusted, and lead by example. As a note, in all of these situations, proper
and well-timed feedback is always very important as a leader and a
manager.
There certainly is a distinction between the terms
management and leadership; both terms can apply to a person if the standards
mentioned above for both terms are present.
Younger Years - Noticing the Differences:
As a teenager I worked at McDonalds for 2 years. During this time I was strictly managed and not
led. I knew what I had to do, my goals
for the day, and how to carry out these goals.
My managers rarely spoke to me unless they had to give e some type of
directions or orders for work. Later, I
decided to open my own business and through much trial and error I learned that
managing people in this same fashion under a completely different business
structure was simply not going to work. I was only doing what I knew at the time, and
was managing people, not leading a group.
I learned promptly that different people respond to different incentives
in very different ways. Being managed
before at McDonalds taught me that things needed to be done in order to be
profitable but it did not teach me that leading people motivates them to work
harder and to be loyal to the company.
This is probably why McDonalds has an incredibly high turnover rate – as
there is not much loyalty there due to the management style. For my
business I needed people who had general and specific knowledge, who enjoyed
coming into work, and who were loyal to my company. It was because of the uneager response of my
15 employees that I knew I would have to be both a manager as well as a leader. I decided I needed lessons on leadership and
did not have time to go back to college to learn these lessons, yet. So I
purchased books upon books just to learn leadership ability. Books are great, but nothing teaches
leadership like that of a true leader. I looked in various places, sought out
mentors, and the evolution of my thoughts on leadership became more and more of
what not to do as a leader than what to do.
But that is also good, for knowing ‘what not to do’ relinquishes the
possibility of errors when leading in the future.
My thoughts of leadership at this point were focused on
motivating other people. I needed my
employees to want to come to work and I wanted to see smiles. My thoughts of leadership were quiet
antiquated too; for instance during this time I truly believed that people were
either born leaders or born followers and that they could never change their
status. After more trial and error and
going at this leadership all wrong, I found out one day that leadership truly
comes not through words but through actions.
I could talk all day to my employees but it was about as well received
as a preacher spilling out words on Sunday to kids who simply thought they were
going to church for fun due to parental lies.
It was the day when my company received
a huge order from a very high-class institution. The order was 200 crib sets packaged and
delivered within 24 hours. We were short
handed because seven employees decided to leave when we got the huge order
in. I told my other employees thank you
for staying, and I immediately began to work. Without much instruction from me, my other
employees also immediately began to work.
But then a very interesting thing happened – they were laughing, having
fun, and one of them said “we can get this done in no time” and the other
employees agreed. It was then that I
realized only when there was a challenging goal and I rolled up my sleeves to
join them, that they were the most eager.
I was no longer just a manager preaching orders from my soapbox, but rather
I was leading them by my actions. When I
took action with a positive attitude, there was a clear domino effect in the
employees. We got the order finished
with 4 hours to spare, and we all went out to celebrate on my dime. After that day, things went very well in the
office; my employees started asking my advice with everything from work to
personal life situations. The seven
employees who showed no loyalty were fired, and the other employees were given
a raise due to the new availability of funds from the firings. My
employees trusted me and were loyal to me based on my actions. This was a very important milestone for me.
More lessons came throughout the years, but my business
closed in 2009 due to economic hardship.
I decided then to go back to school and I have learned so very much from
Southeast Missouri State University regarding leadership and management – and
surprisingly it has been mostly from the way the classes are taught, what the
professor(s) expect from students, how well professors communicate, and then
the actual material of the classes in this order. In one
class, for instance, the professor laid out the syllabus and wrote an email
which said “you can do the assignments as you wish. The due dates are posted.” I emailed the professor 4 times during the
16-week course, only once was I responded to with “that information is in the
syllabus.” This professor certainly
managed the course well through a very organized syllabus, but there was no
leadership, and quite frankly I did not even want to take the course anymore
because of the lack of enthusiasm I felt for it. If the professor wasn’t excited about
teaching it, why should I be excited to learn it? Conversely, the class I took on leadership through
SEMO by Dr. Erin Fluegge was amazing.
She was such an active part in that class, she made the class a lot of
fun, and I got the feeling that she was very happy to teach her students. She managed and led her class very well – all
emails were immediately responded to and in such a positive way. These differences between classes show only a
small picture of management and leadership, or the lack thereof. Outside of the classroom these principles are
the same and I have learned that some people prefer to just manage and show no
passion, but others are full of passion and have the capacity to lead. My perspective
on both leadership and management has evolved greatly throughout the
years. This evolution has taken place
mainly due to trial and error, through formal studies, and through
not-so-formal studies in what not to do as a leader. I am excited and happy to say that my
perspective still has room to grow, and continually does so through more
education on leadership and management.
References:
Merriam-Webster's collegiate dictionary (10. ed.). (1999).
Springfield, Mass.: Merriam-Webster.
Peter, L. J., & Hull, R. (1969). Followers &
Leaders. The Peter Principle, (p. 171). New York: W. Morrow.
Williams, D. K. (2012, July 5). No More Managers. Everyone
Leads - Forbes. Information for the World's Business Leaders - Forbes.com.
Retrieved August 22, 2012, from http://www.forbes.com/sites/davidkwilliams/2012/07/05/no-more-managers-everyone-leads/
Monday, January 7, 2013
The Consumer Buying Process - Understanding the Consumer
The
Consumer Buying Process
Consumers today are switching
from the old economy (standardization, replication, hierarchy, scale,
and efficiency) to the new economy (differentiation, personalization,
speed, customization, and networks) and an overall shift away from quantity of transactions
to quality of relationships.
Companies are switching to meet consumer demands and, if the companies
wish to stay successful, are catering to the new consumer of today. Due to the vast amount of information that is
readily available today, consumers are empowered which means that the
buyer/seller information connection is much more symmetrical instead of
asymmetrical like in the past. Consumers
have more information and therefore have more buying power. A consumer
can spend a second thinking about a purchase or can spend days, months, or even
years weighing cost and benefits. The amount of consumer involvement
largely depends on the amount of money that is to be spent on a purchase (i.e.
larger purchases require a consumer to contemplate more). The consumer buying process includes five
distinct stages that a buyer goes through when purchasing services or goods. These stages are (in order of the buying
process, 1 being the first stage): need recognition, the information search, the
evaluation of alternatives, the purchase decision, and the post purchase
evaluation.
Need Recognition
In the first stage, need
recognition, the buyer realizes that they have an unmet internal (thirst,
hunger) need or an unmet external (talking long distance with family)
need. Time utility with need
recognition is of extreme importance because today people want what they want
as soon as they can get it. Marketers can create this need in customers by
offering to consumers, through advertisements, an idea that they absolutely
need a particular product. A good
example of this first stage of need recognition would be to advertise restaurant
commercials around dinner time and point out that customers need to eat and the
product is already hot and ready. Another good example is the constant
late-night commercials regarding AndroGel, commenting on how men may be lacking
in various (especially sexual) areas in their lives without the product. And yet another good example through marketing
is how AT&T makes it abundantly clear in commercial advertising that people
really need to communicate with others, to get information as fast as possible
(need for speed in this nanosecond culture), and that people need to tell other
people what they are doing as it happens such as seen with iPhone applications
for Facebook. A commercial from AT&T
here: http://www.youtube.com/watch?v=8s9_pi9vQbs shows how the need for speed with information
is a necessity for single women. This
commercial directly caters to a specific segmented market and to the new
economy’s need for speed and information (ShareATT, 2012). Convincing a consumer that they need a product
because they have unmet needs is easier when they are needs regarding thirst or
hunger; however marketing truly shines when marketers are able to convince
consumers that they need something they never knew they needed. Such is the case with luxury cars, for
example. A Geo Metro will get a person
from point A to point B, but people want the luxury of an Audi. This is because the Audi also gets a person
from point A to point B though it does so in style and creates a need from a
want due to the add-ons (such as prestige) that the Audi has to offer. In the buying process a need may be a want in
disguise or an internal/physical need, regardless of the type of need, it is
the marketer’s job to close the gap between current situation and ideal
situation for consumers, and this is done by first understanding consumer
interests.
Some marketing
implications come in with this first stage because consumer interests are
fickle, meaning they change from day to day.
Technology advances, new products hit the shelf every day, and consumers
become more aware as well as more demanding.
Due to globalization, hyper-competition, and the nanosecond
culture, marketers must constantly keep updated with consumer wants and
needs. And it is imperative that
marketers today get consumers involved and to “convince the buyer that
the purchase is significant” (Cherry, 2013).
Information Search
The second stage is
the information search stage wherein a consumer has some interest in a
product and wants more information. The
consumer can passively seek information which means paying more
attention to advertisements they may see or hear in passing, or they may use
information resources to gather said information in an active
search. Place utility is very
important here because the information (as well as the product itself) needs to
be right in front of the seeking consumer for easy access. Not many consumers want to wear themselves
out trying to find out information on a product but they do want as much
information as possible about a product (especially a large purchase) in
today’s fast-paced society. Information can come from many sources including
family, co-workers, word of mouth as internal sources or from websites,
magazines, and television commercials as external sources. According to Ferrell and Hartline (2011),
consumers tend to trust external sources more than internal sources (p. 157).
However, I agree with Dr. John Cherry in his Minilecture 06 when he states that
“advertising is dead last
in credibility, and it's no surprise to anyone” (2013). Consumers want good, credible information;
they do not want information overload of useless statistics or a forum filled
with thousands of consumer opinions. Microsoft
is a good example of a company who cleverly capitalizes on the information
search in the consumer buying process.
Microsoft’s Bing search engine commercials direct consumers to the
engine because it advertises that it provides good, relevant information during
searches and has the slogan, “What has search overload done to us? Find the cure at Bing.com” with a side slogan
of “Bing & Decide” (ViadTv, 2009).
The information search can be quite lengthy for some purchases, or can
take a very short time for smaller purchases. This stage is a pivotal point for
marketers because if consumers cannot find information on a product they want
or cannot find the right information for which they are searching then they
will simply walk away. Therefore the more relevant information companies have
available to a consumer about their product is critical in the consumer buying
process.
The main marketing
issue for this stage would be that a lot of information takes time, and many
consumers today do not take the time to thoroughly search or read for every
single purchase (even for some of the larger purchases). Simply stated, today people are in a hurry so
marketers have to put as much information as possible out there to consumers in
just the right market segment in order to inform consumers enough to purchase a
product.
Evaluation of Alternatives
Once the consumer
recognizes the need, has all the information they wish about wanting a specific
item, then they have to evaluate the alternatives. This stage is actually another type of
information stage because the consumer gathers information regarding
alternatives and weighs the decision mainly based on cost/benefit ratios. For instance, a new car purchase may start
with the old car breaking down, hence the need.
Then an information search regarding cars, what is considered the best
for the price, and other options the consumer may want to know about their
purchase. Then once information is
gathered, the consumer has other choices on where to purchase and which brand
exactly, since there are many car companies today with various offerings from
which a consumer can choose to purchase. Eventually the consumer picks and chooses
elements they prefer over the other available alternatives and the few items
left in the consumer’s decision pool is called an evoked set. Sellers really want to be in this evoked set
and have tried (and are still trying) everything to understand why consumers
have an evoked set, using techniques that span from demographic studies
to psychological analysis of consumer behavior. If sellers wish to get into or stay into
buyer’s evoked sets, they must maintain product quality, defend against
competition, keep items in stock, use reminder advertising, use specials
and couponing, and use customer loyalty programs. If sellers are not in an evoked set they must
use product sampling techniques, introduce new products into the market,
use comparison to competitor advertising, have a lot of publicity
regarding their products, and use promotional advertising aggressively
(Cherry, 2013).
The main marketing
implication in this stage of the consumer buying process is a lack of differentiation
and many options since that is what consumers are wanting in today’s
economy. For instance, if a company has
a unique product, there are not many substitutes (if any) for that product and
therefore the choices of the consumer are limited. With limited choices in substitutions, the
product the customer needs will be purchased from the company that sells it,
but today marketing is a different story.
Years ago, say in the 1930’s, there were not too many brands of
toothpaste as an example. A consumer in
the 1930’s purchased this need commodity because they basically had no other
choice. As the years have passed, more
and more companies offer homogenous product lines, thereby increasing consumer
choices. And today, with information
being readily available for consumers as well as many more merchants in the
marketplace, they have many more options than they did in the past. A good way to work around many options
consumers have and for a company’s products to stay in the consumer’s evoked
set today is to differentiate, personalize and customize the
products as much as possible, also to make certain that information about the product’s
offerings is readily available.
Purchase Decision
The purchase
decision is the next stage in the consumer buying process and a purchase
decision is not the same thing as making an actual purchase (Ferrell &
Hartline, 2011). It is critical that
during this time the consumer feels that the purchase is needed, significant,
and has an easy way to purchase the goods or services (i.e. one-click
purchase option online and sellers accepting a spectrum of payment methods). Product availability and possession
utility is important during this stage of the consumer buying process
because a buyer wants convenience such as not having to travel 100 miles
to get a specific good and a buyer wants an easy way to pay for the item such
as lay-away or financing so they can possess the product. A good example here is that I do not have a
pool table simply because there is no easy way for me to get one in this
area. I can purchase one online but the
shipping is outrageous and I am scared that the slate table may be broken
during shipment. The closest store that
offers the type of pool table I desire is 112 miles away near St Louis Missouri
and I have no vehicle that can transport the item safely to my home. Marketers and sellers a like need to ensure
that the products are available to consumers and that there is also a convenient
way to purchase services or goods.
Postpurchase Evaluation
This stage is where
consumers have purchased an item and they are thinking about whether or not the
purchase was a good one or if they should have thought harder about their
options. Marketers want the buyers to
feel that the purchase was a good one; after all if the consumer begins to feel
bad about the purchase or think they should have chosen another alternative,
this loses customers for sellers and marketers. This Postpurchase stage is a link
between the consumer buying process and creating, building, and
maintaining customer relationships (Ferrell & Hartline, 2011, p.
159). Also according to Ferrell and
Hartline, during this process the consumer will either feel delighted, satisfied,
dissatisfied, or have Postpurchase doubt (cognitive dissonance). Naturally, marketers want customers to feel
delighted where they feel that the product or service exceeds their
expectations or they are at least satisfied with their purchase (the purchase
met their expectations). Dissatisfaction happens when the products fail
to meet buyer expectations and cognitive dissonance happens when the
consumer is unsure about the overall performance of the product in relationship
to his/her needs. In order to avoid dissatisfaction
or cognitive dissonance, the marketer / seller should find information
and give information to the consumer which supports their choice on the
purchase. For instance, the car company
here in town where I purchased my Hummer (H3) calls me every time the
anniversary of the purchase was made (since 2009) and sends my husband and me
birthday cards on our birthdays. Each
card says “thank you” and with each call our car salesman also tells us “thank
you for your past business and if you need anything else, you know who your
friends are!” Essentially, marketers need to reinforce to the customer that
their purchase was really needed, significant, and wise to make. If the marketer / seller fail to do this,
then the customer will more than likely be lost to other competitors.
References
Cherry, J. (2013, January 14). Chapter 01 Minilecture -
Marketing in Today's Economy. BA 651 - Strategic Marketing.
Cherry, J. (2013, January 28). Chapter 02 Minilecture –
Strategic Marketing Planning. BA
651 - Strategic Marketing.
Cherry, J. (2013, February 25). Chapter 06 Minilecture – Customers,
Segmentation, and Target Marketing. BA
651 -Strategic Marketing.
Ferrell, O. C., & Hartline, M. D. (2011). Buyer
Behavior in Consumer Markets. Marketing strategy (5th ed., pp. 153-189). Mason, OH:
South-Western Cengage Learning.
ShareATT. (2012, March 13). AT&T TV Commercial -
"Speed Dating" iPhone 4S 3x Faster - YouTube. YouTube. Retrieved March 16,
2013, from http://www.youtube.com/watch?v=8s9_pi9vQbs
ViadTv. (2009, June 5). Microsoft Bing #2 Commerical – (Cure for Search
Overload Syndrome). Youtube. Retrieved March 16, 2013 from http://www.youtube.com/watch?v=i1AwFY6MuwE
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