Summarize Key Developments in Macroeconomic History

Summarize Key Developments in Macroeconomic History.

We are all human beings and we fall and learn from our own mistakes. Why do we fall? So we can learn to pick ourselves up. The developments in macroeconomic history were the same. We learn from the past then try to explain it and fix it. To summarize the key developments in macroeconomic history, we can follow the big events such as the Great Depression or the Great Recession to get the timeline more quickly. 

In the 1930s, under the Great Depression’s cruel grip, the collapse defies the dominant economic theory which was “economies should be able to reach full employment through a process of self-correction.” The economics try to fix the old ideas of macroeconomics and replace it with something new and effective. Unfortunately, the Great Depression still lasted for more than a decade. 

Then, time moves to the 1960s. While most economists believe that Keynes’s can effectively explain how to solve the problem, the tools Keynes suggested have won widespread acceptance among governments all over the world. But there are always some different ideas come out, economist Milton Friedman argues that money, not fiscal policy, is what affects aggregate demand. He insists that monetary policy should not be used to move the economic activity.

When It comes to the1970s. While Keynes’s theory can not perfectly explain everything, several other economists begin work on a radically new approach to macroeconomic thought.

The Great Recession and the financial crisis in the late 2000s, all follow the same process which is fall, recover and learn how to deal with it when it comes again. Although there are many rounds of controversy, we are still in the natural evolution progress.

The similarities and differences between Keynesian and classical economics

The Similarities

The first similarity between Keynesian and classical economics is that both of the two are trying to reduce unemployment. They all think unemployment is a big problem and we must have a solution to deal with it. The second similarity is that both of the two ideas pay attention to the price, spending which is the flow of the economy. 

The differences

Although both Keynesian and classical economics was trying to help us deal with the problems, their solutions were not the same. The most significant divergence is the involvement of governments. Keynesian suggested that the monetary and fiscal system can be a tool to solve the problem effectively and it's quick. In contrast, classical economics tends to hold back the tools and let the market, the economy recover by itself.

How does each handle issues of unemployment? 

As I said, they all want to handle issues of unemployment and depression, but the solutions are different. If the governments take advantage of the monetary and fiscal system which is Keynesian suggested, they can quickly adjust the unhealthy parts of the downward economy and move it to a healthier situation. The classical economics, in contrast, suggested that the economy would right itself, and returning to the natural level of employment. 

What new developments starting in the 1980s have changed macroeconomic thought?

After the 1980s, the greater use of microeconomic analysis came out, thus better explained the macroeconomic phenomena. Since the monetary policy has become a tool for the governments to use during a weak economy period, the central bank such as the Fed plays a crucial role in the economic system. A significant advance in monetary policy came in the 1990s, under Federal Reserve Chairman Alan Greenspan. The Fed shifted to an expansionary policy as the economy slipped into a recession when Iraq’s invasion of Kuwait in 1990 began the Persian Gulf War and sent oil prices soaring. As a result, the real GDP was rising, but the economy remained in a recessionary gap. After that, The Fed, for the first time, had explicitly taken the impact lag of monetary policy into account. The issue of lags was also a part of Fed discussions in the 2000s.

Advances in fiscal policy and the interest.

When Reagan defeated the Democratic Jimmy Carter in the 1980 election campaign. The Republican Party also won the first half of the Senate in 26 years. Reagan’s economic policy is supply-side economics, known as Reagan’s economics, which reduces income taxes by 25%, reduces inflation, lowers interest rates, increases military spending, increases government deficits and national debt. He deregulation of business moves the US economy to start a strong economic growth in 1982 after a sharp recession in 1981-1982. President Reagan is skeptical about the ability of the federal government on dealing with these kinds of problems, especially in economic matters. His solution is to withdraw government intervention and reduce tax rates and commercial controls so that free-market mechanisms can automatically correct the problems of its own. However, In 1990, with the economy slipping into a recession, President George H. W. Bush agreed to a tax increase despite an earlier promise not to do so. President Bill Clinton, whose 1992 election resulted largely from the recession of 1990–1991, introduced another tax increase in 1994, with the economy still in a recessionary gap. Both tax increases were designed to curb the rising deficit. But the US Congress in the first years of the 1990s rejected the idea of using an expansionary fiscal policy to close a recessionary gap on grounds it would increase the deficit. 

The recession Threatening the Economy Largely

All of the discussions and advances above, tend to have different solutions on less or more government intervention, the federal deficit, and government spendings. However, the tax cuts had provided only a minor amount of stimulus to the economy, while people tend to save money not to spend it, and the recession threatening the economy was larger than they thought.

The New Keynesian Economics School

New problems always come out with a new idea. New Keynesian economics successfully incorporated important monetarist and new classical ideas and provided a solution for many people who lack the confidence in the ability of the monetarist or the new classical school alone to explain the macroeconomic change.

The Deregulation of the banks

The deregulation of the banking industry was a crucial matter in the early 1980s because it's produced sharp changes in the ways individuals dealt with money. Such as the introduction of bond funds offered by banks that allowed customers to earn the higher interest rates paid by long-term bonds while at the same time being able to transfer funds easily into checking accounts as needed. 

Advances with Stable and Unstable

The experience of the 1980s, 1990s, and 2000s makes monetary policy much more controversial, while someone thought it's an inappropriate tool that contributes just for short term goals.

#Discussion Consequences of Unemployment in My Country

Consequences of Unemployment in My Country

Personal

During the financial crisis in 2008, some of my friends in Taiwan who work in the banks lost their jobs. Although they have excellent job skills of being work at the banks, they still being fired in that period of time. They started to reduce their spending and finding lower-income but much more stable jobs such as working for the government. The competition of government labors interview increases dramatically and many highly-educated individuals tended to accept lower-paying, less-attractive jobs below their skill levels. You can see many people who have master's degrees working at the positions that just need a high school diploma. The cost of higher education is not so cheap at that time, but it seems like they don't care about what they really want to do or what really makes them happy. Why did they need a higher education if they just wanted to be a bartender? I'm meaning that being a bartender is a bad thing or something like that, but the point is the opportunity cost of doing this job might alter your future to another field.

Social

Of course, the social consequences of prolonged unemployment can be significant. During the financial crisis in 2008, my father's food manufacturing factory fired lots of labors. When they lost their jobs, they protested at my father's factory and office. I told my father not to sue them for their protesting behaviors because unable to go through the crisis is also the responsibility of my father. Imagining that if the protest spread to the citizen level, the consequences can be much worse. When you get hurt, you need more instructions for your body to repair. But virtually, it is hard to do it while you are losing your job. And it's really a bad cycle because if you can not work unit you get well. Unemployment can be even worse if the labors just can not get back to work.

The government should play to reduce negative consequences? 

The government of my country was facing a big challenge during the crisis of 2008 while politicians are seeking opportunities to increase their exposure and supporters. In my opinion, the government should do something to reduce the negative consequences of unemployment. A truly rich country always has a lot of rich citizens not just the government get rich because their wealth is also from the people in the country. 

But don't misunderstand my meanings, the government has to repair your fishing rod not just keep giving you "unhired-fish" for you to eat. 

Develop The Concepts of The “Circular Flow” of Goods and Services

Develop The Concepts of The “Circular Flow” of Goods and Services

In a 1-2 page paper develop the concepts of the “circular flow” of goods and services. Begin by reviewing this video:  Circular Flow from the St. Lois Federal Reserve.

Select one good you are familiar with. Describe how the goods move in relation to:

Starbucks Corporation is an American coffee company and coffeehouse chain that sales espresso coffee drinks and other beverages such as fruit juice and iced cocoa macchiato.

Households

Starbucks buys goods and services such as labor(to work at the store), coffee beans(to make espresso coffee drinks), land(to open a store), and cocoa beans(to make the iced cocoa drinks) from households. The labors who work at the coffee store making coffees and provide services to customers are from households, and coffee beans come from farmers who plant coffee trees, is also come from households. The land for Starbucks to open a store can be owned by a company or individuals, and both of the two are related to households. These costs of production have many different types such as human resources, physical equipment or even knowledge and information. 

Starbucks sales goods and services such as espresso coffee drinks, provide a place to stay, and iced cocoa drinks to households. The customers are from households, and they buy espresso coffee drinks and enjoy it inside a store or pick it up to any other places. Starbucks sales multiples service to customers such as a comfortable environment to stay and enjoy coffee, a table to put your bag on, a chair to sit down, and free internet to use. Although customers are not straightly paying for the place, they also pay it when they buy the drink. 

Suppliers of goods and services

Suppliers sales goods and services such as land, coffee beans, water, espresso machine, tables and chairs to Starbucks. The suppliers pack and transport the coffee beans to the stores for them to make coffee drinks. The supplier sales well-designed coffee machines to Starbucks for them to provide excellent coffee drinks. The chairs and tables are also from suppliers who build them. The utility company is the supplier of water and electricity for making drinks and lighten the stores. Starbucks also purchase their uniforms from the supplier for their employees to wear when they working at the store. 

The suppliers buy goods and services from other suppliers or households such as labors, raw materials, and trucks. The labors work at the suppliers' factory and office to build or design the coffee machine, and the truck driver delivers the equipment to Starbucks' store. The delivery service might supply by another supplier that being paid to do the delivery. 

Money

When Starbucks sales coffee to a customer, the money flows from the customers to Starbucks, and the goods and services flow from Starbucks to the customer. Similarly, while the supplier sales goods and services such as land, coffee beans, water, espresso machine, tables and chairs to Starbucks, the money flow from Starbucks to the suppliers, too. 

The money that flows to Starbucks or suppliers does not stop from flowing. Starbucks uses the money to pay the checks for labors' salaries, buy new or maintain the equipment and decorating the store, purchasing coffee beans in order to keep running its business. The suppliers use the money to pay the checks for labors' salaries and buying new or maintain the equipment, either. 

#Notes4.1 Case in Point: Xerox Motivates Employees for Success

Developing Mission, Vision, and Values

4.1 Case in Point: Xerox Motivates Employees for Success

As of 2010, Xerox Corporation (NYSE: XRX) is a $22 billion, multinational company founded in 1906 and operating in 160 countries. Xerox is headquartered in Norwalk, Connecticut, and employs 130,000 people. 

How does a company of such size and magnitude effectively manage and motivate employees from diverse backgrounds and experiences? 

Mulcahy (CEO) believed that among other key businesses changes, motivating employees at Xerox was a key way to pull the company back from the brink of failure. 

One of her guiding principles was a belief that in order to achieve customer satisfaction, employees must be treated as key stakeholders and become interested and motivated in their work, create a stronger and more focused company. 

Mulcahy created a strong and successful business but encouraged individuals to speak their mind, to not worry about hurting one another’s feelings, and to be more critical. The importance of managing individuals in different ways and not intentionally intimidating people but rather relating to them and their individual perspectives. 

The CEO (Ursula Burns) wants to encourage people to get things done, take risks, and not be afraid of those risks. She motivates her teams by letting them know what her intentions and priorities are. 

#Note 7.2 Organizational Structure

Organizational Structure

How individual and team work within an organization are coordinated. 

• To achieve organizational goals and objectives, individual work needs to be coordinated and managed. 
• Structure is a valuable tool in achieving coordination, as it specifies reporting relationships (who reports to whom), delineates formal communication channels, and describes how separate actions of individuals are linked together. 
• Organizations can function within a number of different structures, each possessing distinct advantages and disadvantages. 
• Any structure that is not properly managed will be plagued with issues.
• Some organizational models are better equipped for particular environments and tasks.

Building Blocks of Structure

Four aspects of structure that have been frequently studied in the literature: centralization, formalization, hierarchical levels, and departmentalization. 

Centralization

Centralization is the degree to which decision-making authority is concentrated at higher levels in an organization. In centralized companies, many important decisions are made at higher levels of the hierarchy, whereas in decentralized companies, decisions are made and problems are solved at lower levels by employees who are closer to the problem in question. As an employee, where would you feel more comfortable and productive? If your answer is “decentralized,” you are not alone. Decentralized companies give more authority to lower-level employees, resulting in a sense of empowerment. Decisions can be made more quickly, and employees often believe that decentralized companies provide greater levels of procedural fairness to employees. 

Job candidates are more likely to be attracted to decentralized organizations. Because centralized organizations assign decision-making responsibility to higher-level managers, they place greater demands on the judgment capabilities of CEOs and other high-level managers.

The centralization of operations leads to inefficiencies in decision making. For example, in the 1980s, the industrial equipment manufacturer Caterpillar suffered the consequences of centralized decision making. At the time, all pricing decisions were made in the corporate headquarters in Peoria, Illinois. This meant that when a sales representative working in Africa wanted to give a discount on a product, they needed to check with headquarters. Headquarters did not always have accurate or timely information about the subsidiary markets to make an effective decision. As a result, Caterpillar was at a disadvantage against competitors such as the Japanese firm Komatsu. 

However, centralization also has its advantages. Some employees are more comfortable in an organization where their manager confidently gives instructions and makes decisions. Centralization may also lead to more efficient operations, particularly if the company is operating in a stable environment. 

In fact, organizations can suffer from extreme decentralization. For example, some analysts believe that the Federal Bureau of Investigation (FBI) experiences some problems because all its structure and systems are based on the assumption that crime needs to be investigated after it happens. Over time, this assumption led to a situation where, instead of following an overarching strategy, each FBI unit is completely decentralized and field agents determine how investigations should be pursued. It has been argued that due to the change in the nature of crimes, the FBI needs to gather accurate intelligence before a crime is committed; this requires more centralized decision making and strategy development. 

Hitting the right balance between decentralization and centralization is a challenge for many organizations. At the Home Depot, the retail giant with over 2,000 stores across the United States, Canada, Mexico, and China, one of the major changes instituted by former CEO Bob Nardelli was to centralize most of its operations. Before Nardelli’s arrival in 2000, Home Depot store managers made a number of decisions autonomously and each store had an entrepreneurial culture. Nardelli’s changes initially saved the company a lot of money. For example, for a company of that size, centralizing purchasing operations led to big cost savings because the company could negotiate important discounts from suppliers. At the same time, many analysts think that the centralization went too far, leading to the loss of the service-oriented culture at the stores. 

Formalization

Formalization is the extent to which an organization’s policies, procedures, job descriptions, and rules are written and explicitly articulated. 

• Many written rules and regulations. 
• Control employee behavior using written rules
• Employees have little autonomy to decide on a case-by-case basis. 
• An advantage of formalization is that it makes employee behavior more predictable. 
• Whenever a problem at work arises, employees know to turn to a handbook or a procedure guideline. Therefore, employees respond to problems in a similar way across the organization; this leads to consistency of behavior.
• While formalization reduces ambiguity and provides direction to employees

• Lead to reduced innovativeness because employees are used to behaving in a certain manner. 
• Strategic decision making in such organizations often occurs only when there is a crisis. 
• A formalized structure is associated with reduced motivation and job satisfaction as well as a slower pace of decision making. 
• The service industry is particularly susceptible to problems associated with high levels of formalization.
• Sometimes employees who are listening to a customer’s problems may need to take action, but the answer may not be specified in any procedural guidelines or rulebook. For example, while a handful of airlines such as Southwest do a good job of empowering their employees to handle complaints, in many airlines, lower-level employees have limited power to resolve a customer problem and are constrained by stringent rules that outline a limited number of acceptable responses.

Tall structures: Organizations with several layers of management between frontline employees and the top level.

Flat structures: Organizations with few layers, often with large numbers of employees reporting to a single manager.

Hierarchical Levels

• Tall structures have several layers of management between frontline employees and the top level.
• In tall structures, the number of employees reporting to each manager tends to be smaller, resulting in greater opportunities for managers to supervise and monitor employee activities.
• Tall structures are better at satisfying security needs of employees. Because tall structures are typical of large and well- established companies, it is possible that when working in such organizations employees feel a greater sense of job security.

• Flat structures consist of only a few layers. 
• Flat structures will be relatively unable to provide close supervision, leading to greater levels of freedom of action for each employee. Research indicates that flat organizations provide greater need satisfaction for employees and greater levels of self-actualization. 
• At the same time, there may be some challenges associated with flat structures. Research shows that when managers supervise a large number of employees, which is more likely to happen in flat structures, employees experience greater levels of role ambiguity—the confusion that results from being unsure of what is expected of a worker on the job. This is especially a disadvantage for employees who need closer guidance from their managers. Moreover, in a flat structure, advancement opportunities will be more limited because there are fewer management layers. 
• Finally, while employees report that flat structures are better at satisfying their higher-order needs such as self-actualization, they also report that 

Departmentalization

Broadly categorized as either functional or divisional.

• Organizations using functional structures group jobs based on similarity in functions. 
• Such as marketing, manufacturing, finance, accounting, human resources, and information technology. 
• Each person serves a specialized role and handles large volumes of transactions. 
• For example, in a functional structure, an employee in the marketing department may serve as an event planner, planning promotional events for all the products of the company. 

• Divisional structures, departments represent the unique products, services, customers, or geographic locations the company is serving. 
• Each unique product or service the company is producing will have its own department. Within each department, functions such as marketing, manufacturing, and other Companies such as IKEA, the Swedish furniture manufacturer and retailer, are successfully using flat structures within stores to build an employee attitude of job involvement and ownership.

Functional structures : Structures in which jobs are grouped based on similarity in functions.

In reality, many organizations are structured according to a mixture of functional and divisional forms. For example, if the company has multiple product lines, departmentalizing by product may increase innovativeness and reduce response times. Each of these departments may have dedicated marketing, manufacturing, and customer service employees serving the specific product; yet, the company may also find that centralizing some operations and retaining the functional structure makes sense and is more cost effective for roles such as human resources management and information technology. The same organization may also create geographic departments if it is serving different countries.

Functional structures tend to be effective when an organization does not have a large number of products and services requiring special attention. 

When a company has a diverse product line, each product will have unique demands, deeming divisional (or product-specific) structures more useful for promptly addressing customer demands and anticipating market changes. 

Functional structures are more effective in stable environments that are slower to change. In contrast, organizations using product divisions are more agile and can perform better in turbulent environments. 

The type of employee who will succeed under each structure is also different. Research shows that when employees work in product divisions in turbulent environments, because activities are diverse and complex, their performance depends on their general mental abilities. 

Two Configurations: Mechanistic and Organic Structures

The different elements making up organizational structures in the form of formalization, centralization, number of levels in the hierarchy, and departmentalization often coexist. As a result, we can talk about two configurations of organizational structures, depending on how these elements are arranged.

Mechanistic structures are those that resemble a bureaucracy. These structures are highly formalized and centralized. Communication tends to follow formal channels and employees are given specific job descriptions delineating their roles and responsibilities. 

Mechanistic organizations are often rigid and resist change, making them unsuitable for innovativeness and taking quick action. These forms have the downside of inhibiting entrepreneurial action and discouraging the use of individual initiative on the part of employees. Not only do mechanistic structures have disadvantages for innovativeness, but they also limit individual autonomy and self-determination, which will likely lead to lower levels of intrinsic motivation on the job. 

Despite these downsides, however, mechanistic structures have advantages when the environment is more stable. The main advantage of a mechanistic structure is its efficiency. Therefore, in organizations that are trying to maximize efficiency and minimize costs, mechanistic structures provide advantages. 

For example, McDonald’s has a famously bureaucratic structure where employee jobs are highly formalized, with clear lines of communication and specific job descriptions. This structure is an advantage for them because it allows McDonald’s to produce a uniform product around the world at minimum cost. 

Mechanistic structures can also be advantageous when a company is new. New businesses often suffer from a lack of structure, role ambiguity, and uncertainty. The presence of a mechanistic structure has been shown to be related to firm performance in new ventures. 

Organic structures

In contrast to mechanistic structures, organic structures are flexible and decentralized, with low levels of formalization. 

• Communication lines are more fluid and flexible. 
• Employee job descriptions are broader and employees are asked to perform duties based on the specific needs of the organization at the time as well as their own expertise levels. 
• Higher levels of job satisfaction on the part of employees. 
• Conducive to entrepreneurial behavior and innovativeness. 
• An example of a company that has an organic structure is the diversified technology company 3M. The company is strongly committed to decentralization. At 3M, there are close to 100 profit centers, with each division feeling like a small company. Each division manager acts autonomously and is accountable for his or her actions. As operations within each division get too big and a product created by a division becomes profitable, the operation is spun off to create a separate business unit. This is done to protect the agility of the company and the small-company atmosphere.
  

• KEY TAKEAWAY

The degree to which a company is centralized and formalized, the number of levels in the company hierarchy, and the type of departmentalization the company uses are key elements of a company’s structure. These elements of structure affect the degree to which the company is effective and innovative as well as employee attitudes and behaviors at work. These elements come together to create mechanistic and organic structures. Mechanistic structures are rigid and bureaucratic and help companies achieve efficiency, while organic structures are decentralized, flexible, and aid companies in achieving innovativeness.

 9. Those structures that are flexible and decentralized with low levels of formalization where communication lines are more fluid and flexible.

#Learning Journal What was the most helpful strategy you learned during this course

What was the most helpful strategy you learned during this course? 

I used to be confused. Why do need to take the"College Success"? After several weeks, I understood what the course is about. But I was not taking it seriously, because I did not get much interested in it and I have another course need to study until I found something that motivates me. In Taiwan, we don't have a course like this. Our colleges only teach us how to get a job and make money after we leave from school. The most helpful strategies I learned during this course are critical thinking and note-taking. 

How will you apply this strategy in your future studies here at UoPeople?

Critical thinking helps me think much more flexible and spot the most important details inside things. I remember that a few months ago before I apply for University of The People, I read a book on a moving high-speed train. The book title is "Insight Outsight", the book is telling every manager who wants to improve their skills about what they should know and give several examples to prove the theory. While I think of critical thinking, I thought of that book immediately. Every book has its own theory to show you why it is correct. But if we have critical thinking skills, we might begin to search even more evidence to prove it is right or it's might be a fake. There is so many fake news around social media and on the internet, many of it is created by some advertisement suppliers, to trick you to buy something you might not think it's necessary at first. If you can not think critically, you might fall into the fraud they set. I will apply the critical thinking skill to make my study much deeper into the truth.

What was the most surprising thing you learned this term? 

The most surprising thing I learned this term is the critical thinking process. 

Why did it surprise you?

It's surprising me because I did not know it even has a process? It sounds like a science experiment or business administration and I follow the steps to see how it works. During the process, I learned many skills that I didn't understand before. It's a procedure to peer any information and think how does it work? Who write it? What is the author's opinion? Is it a fake or for real? Traditionally, we don't doubt about what we learned and what we get from the school or any information when we don't know about one thing thoroughly. "I think, therefore I am"-René Descartes. Nowadays, there are so many frauds around the world that are tricking people by doing something dishonest. We may think we'll never be scammed, but already millions of people have fallen for fake emails, phone calls or letters that look genuine and ask us to give or update our financial details. The criminals get you to look over there whilst they rifle pockets.

Peer assessment is a unique education model. Think back to how you felt about peer assessment at the beginning of the term, and compare that to your feelings now. How have your feelings changed? 

Peer assessment is a model that I have never seen before. I have some doubts about it at first when I am supposed to do it. But a few weeks later, I feel it a useful model for communication and provides several aspects on the same topic. My feeling is from useless switch to effective. Just like an on/off button, it turns on my skills in this area.

Are you more comfortable with peer assessment? 

It's hard to say that it is comfortable or not. Not everyone can read the assessments from the other students without any emotional feelings and be a completely reasonable person. But while the peer assessments have several aspects to consider for, It's much better to do it. 

Have you learned something new while assessing your peer’s work?

The most significant thing I learned from assessing my peer's work is each essay has its own elements or factors to check. Putting pieces of information and words, knowledge together in sort of order, is not a piece of cake. And I learned that when we write something, we built it from words to sentences and then paragraphs. 

#Discussion A system of shared assumptions, values, and beliefs showing people what is appropriate and inappropriate behavior

The text describes organizational culture as “a system of shared assumptions, values, and beliefs showing people what is appropriate and inappropriate behavior.” 

From your own observations, give an example of a company’s culture being a strength or a weakness. 

About 10 years ago, my first fire department where I worked as a firefighter, has a dark history. It's obvious a centralization organization with bureaucracy. The top officer there only cares about the money they can take from the firetruck and equipment suppliers and the relationship with the mayor and the councilmen. They risked the firefighter's lives, just like the firefighters, risk their lives to save people in a burning building. While the culture has cost the firefighters' passions to the limit, they don't want to risk their lives anymore. Because the officers from the top to the bottom all execute like a corrupt bureaucrat, they don't want to change the problems of the shift system of the firefighters and ignored the bad institution behaviors. The value of being a firefighter is gone. They became to work less hard and unwilling to take any risk of their lives to save people in danger. This is the weakness of the organization. 

In what ways was it a strength or weakness? 

Strength or weakness can be reversed quickly if a tiny mistake happens. In this case, the top officers don't make their decisions to match the value and mission of what a fire department should do. Obviously, without integrity, there can be no trust.

Share examples of artifacts you have noticed to support your observation about that organization’s culture.

The example of artifacts, in this case, is the relationship between officers and the firefighters and the meeting spokes. All employees don't want to share their opinions and do more things that might benefit the department and once they get the paycheck is the only thing that keeps them work at the fire department. The amounts of the fire truck there, always a lot more than it's actually needed, and the firefighters don't share respect to any officers there.

#Discussion What strategies will you use to prepare for your final exam?

What strategies will you use to prepare for your final exam? 

First of all, I will calculate how many hours and minutes I have for studying. Then, collect every books, papers, articles or any other materials I have to read and distribute it on my todo list. For instance, if a book has 8 chapters on the catalog, I will do some math and give each chapter a specific number of hours to finish. Now I have the todo list with how many things I have to do and how many hours left under my control. Thus, the next step will to effectively execute the todo list and manage my time and also, avoid any distractions that can possibly get me out of the path or even get lost during the way to get prepared. When everything is set up, the next challenge will be how do I know my progress is going well? To do that, I can retake the self-quiz in the former few weeks' assignments. I set the objectives to achieve each quiz at least 3 times and all the minimize scores are 90 or more. 

Do you have, or have you ever had test-taking anxiety? What strategies will you use to manage test anxiety? 

Like fear, anxiety is a product we create to force ourselves taking seriously on a very important thing that can cause terribly affect us or put ourselves in danger. The danger is real, but the fear, the anxiety is just a product we create. To control and manage it, you have to use it as a weapon to fight the danger you face. If you really afraid of something happen to you, you will do everything you can to prevent it from happening. That's the power of fear. That's the strength of anxiety. 

#Notes 8.4 Signs of Organizational Culture

8.4 Signs of Organizational Culture

How do you find out about a company’s culture? 

Mission Statement

A mission statement is a statement of purpose, describing who the company is and what it does. 

• The first facet of the planning P-O-L-C function. 
• Effective mission statement: 1. Well known by employees 2.Transmitted to all employees starting from their first day at work. 3.Influences employee behavior.
• If the mission statement does not affect employee behavior on a day-to-day basis, it has little usefulness as a tool for understanding the company’s culture. 
• Enron provided an often-cited example of a disconnect between a company’s mission statement and how the company actually operated. Their mission and values statement started with “As a partner in the communities in which we operate, Enron believes it has a responsibility to conduct itself according to certain basic principles.” Their values statement included such ironic declarations as “We do not tolerate abusive or disrespectful treatment. Ruthlessness, callousness and arrogance don’t belong here.”
• A mission statement that is taken seriously and widely communicated may provide insights into the corporate culture. For example, the Mayo Clinic’s mission statement is “The needs of the patient come first.” This mission statement evolved from the founders who are quoted as saying, “The best interest of the patient is the only interest to be considered.” 
• Mayo Clinics have a corporate culture that puts patients first. For example, no incentives are given to physicians based on the number of patients they see. Because doctors are salaried, they have no interest in retaining a patient for themselves, and they refer the patient to other doctors when needed. 
• Wal-Mart may be another example of a company that lives its mission statement and therefore its mission statement may give hints about its culture: “Saving people money so they can live better.

Rituals

Rituals refer to repetitive activities within an organization that has symbolic meaning.

• Usually, rituals have their roots in the history of a company’s culture. They create camaraderie and a sense of belonging among employees. 
• Serve to teach employees corporate values and create identification with the organization. For example, at the cosmetics firm Mary Kay Inc., employees attend ceremonies recognizing their top salespeople with an award of a new car—traditionally a pink Cadillac. These ceremonies are conducted in large auditoriums where participants wear elaborate evening gowns and sing company songs that create emotional excitement. During this ritual, employees feel a connection to the company culture and its values such as self-determination, willpower, and enthusiasm. 
• Another example of rituals is the Saturday morning meetings of Wal-Mart. This ritual was first created by the company founder Sam Walton, who used these meetings to discuss which products and practices were doing well and which required adjustment. He was able to use this information to make changes in Wal-Mart’s stores before the start of the week, which gave him a competitive advantage over rival stores who would make their adjustments based on weekly sales figures during the middle of the following week. Today, hundreds of Wal-Mart associates attend the Saturday morning meetings in the Bentonville, Arkansas, headquarters. The meetings start and end with the Wal-Mart cheer; the agenda includes a discussion of weekly sales figures and merchandising tactics. As a ritual, the meetings help maintain a small-company atmosphere, ensure employee involvement and accountability, communicate a performance orientation, and demonstrate taking quick actions. 

Rules and Policies

Companies create rules to determine acceptable and unacceptable behavior and, thus, the rules that exist in a company will signal the type of values it has. 

• Policies about issues such as decision making, human resources, and employee privacy reveal what the company values and emphasizes. For example, a company that has a policy such as “all pricing decisions of merchandise will be made at corporate headquarters” is likely to have a centralized culture that is hierarchical, as opposed to decentralized and empowering. 
• The presence or absence of policies on sensitive issues such as English-only rules, bullying and unfair treatment of others, workplace surveillance, open-door policies, sexual harassment, workplace romances, and corporate social responsibility all provide pieces of the puzzle that make up a company’s culture. This highlights how interrelated the P-O-L-C functions are in practice. 
• Through rules and policies, the controlling function affects the organization’s culture, a facet of organizing.

Below are scenarios of critical decisions you may need to make as a manager one day. Read each question and select one response from each pair of statements. Then, think about the effect your choice would have on the company’s culture (your organizing function) as well as on your controlling function.

1. Your company needs to lay off 10 people. Would you

a. lay off the newest 10 people?

b. lay off the 10 people who have the lowest performance

evaluations?

2. You’re asked to establish a dress code. Would you

a. ask employees to use their best judgment?

b. create a detailed dress code highlighting what is proper and

improper?

3. You need to monitor employees during work hours. Would you

a. not monitor them because they are professionals and you trust them?

b. install a program monitoring their Web usage to ensure that they are spending work hours actually doing work?

4. You’re preparing performance appraisals. Would you

a. evaluate people on the basis of their behaviors?

b. evaluate people on the basis of the results (numerical sales

figures, etc.)?

5. Who will be promoted? Would you promote individuals based on

a. seniority?

b. objective performance?

Physical Layout

A company’s building, the layout of employee offices, and other workspaces communicate important messages about a company’s culture. 

• Nike campus in Beaverton, Oregon, can witness firsthand some of the distinguishing characteristics of the company’s culture. The campus is set on 74 acres and boasts an artificial lake, walking trails, soccer fields, and cutting-edge fitness centers. The campus functions as a symbol of Nike’s values such as energy, physical fitness, an emphasis on quality, and a competitive orientation. In addition, at fitness centers on the Nike headquarters, only those using Nike shoes and apparel are allowed in. This sends a strong signal that loyalty is expected. The company’s devotion to athletes and their winning spirit are manifested in campus buildings named after famous athletes, photos of athletes hanging on the walls, and their statues dotting the campus. 
• The layout of the office space also is a strong indicator of a company’s culture. A company that has an open layout where high-level managers interact with employees may have a culture of team orientation and egalitarianism, whereas a company where most high-level managers have their own floor may indicate a higher level of the hierarchy. 
• Microsoft employees tend to have offices with walls and a door because the culture emphasizes solitude, concentration, and privacy. In contrast, Intel is famous for its standard cubicles, which reflect its egalitarian culture. The same value can also be observed in its avoidance of private and reserved parking spots. 
• The degree to which playfulness, humor, and fun are part of a company’s culture may be indicated in the office environment. For example, Jive Software boasts a colorful, modern, and comfortable office design. Their break room is equipped with a keg of beer, free snacks and sodas, an Xbox 360, and Nintendo Wii. A casual observation of their work environment sends the message that employees who work there see their work as fun.

Stories and Language

Perhaps the most colorful and effective way in which organizations communicate their culture to new employees and organizational members is through the skillful use of stories. 

• A story can highlight a critical event an organization faced and the organization’s response to it, or a heroic effort of a single employee illustrating the company’s values. 
• The stories usually engage employee emotions and generate employee identification with the company or the heroes of the tale. 
• A compelling story may be a key mechanism through which managers motivate employees by giving their behavior direction and by energizing them toward a certain goal, a new tool for engaging employees in setting direction.
• Moreover, stories shared with new employees communicate the company’s history, its values, and priorities, and create a bond between the new employee and the organization. For example, you may already be familiar with the story of how a scientist at 3M invented Post-it notes. 
• Language is another way to identify an organization’s culture. Companies often have their own acronyms and buzzwords that are clear to them and help set apart organizational insiders from outsiders. In business, this code is known as jargon. Jargon is the language of specialized terms used by a group or profession. Every profession, trade, and organization has its own specialized terms.

KEY TAKEAWAY

Organizational cultures are created by a variety of factors, including founders’ values and preferences, industry demands, and early values, goals, and assumptions. Culture is maintained through attraction-selection- attrition, new employee onboarding, leadership, and organizational reward systems. Signs of a company’s culture include the organization’s mission statement, stories, physical layout, rules and policies, and rituals.

#Discussion Forum Stress, both good and bad, is a part of life.

Why is stress management important?

It's unavoidable and all affecting you whether it's good or bad. There are many reasons that cause stress such as, works, assignments, chores, finance, insomnia and more. They all have one thing in common which is all affects you in different ways. We all have a fear of something happens to us whether you are rich or poor.

How does stress affect your life?

Stress, both good and bad. My life has been changed by many events that happened in my early life. When my father closes the business he built in his 20s about 25 years ago, I began to worry about the future, what kind of life I have to live with. Today, my father started a food company and run it well for almost 7 years. I still got stressed sometimes, because after he went through the downtime of his life, he became really emotional and controlling. He stops me from being a veterinary which is my dream job. So I got stressed and feared about the future because I don't know what I am going to do.

Identify three stress management techniques you are going to use to decrease your stress levels. How can you apply these strategies to your life?

We always have a little monkey in our mind to interrupt us and procrastinate. So I have 3 three stress management techniques of my own that are "fun", "easy and organize" and "rewards".

1.FUN: Making things fun is a great way for me to reduce my stress level. If I have to do something and I can't get away from it then I start to think about how can I make it less boring or even have fun doing it. For instance, when I working out or exercising, I imagine that I am fighting against a monster and I don't want to be its lunch.....

2.EASY and ORGANIZE: When something is easy and organized, it's become more possible to achieve. Instead of setting goals like lose weight, it's more achievable to set goals like "eat 400kcal a day" or "run one kilometer every day". Separate your goals to tiny simple and easy pieces can increase the confidence for you to start. Believe is key to achieve anything.

3. REWARDS: You will need some rewards for yourself to build a habit. After the habits have been built, you can decrease your stress levels when you doing something that makes you stressful but you already built a habit which you know that it will come with a reward.

How will these strategies help you manage your stress?

When you get stressed, you might be afraid of something happens to you. So think about the coming up troubles and get prepared. Making things fun, easy, organize and come with rewards to prepare the solution effectively.