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The Global Business Environment Module 2 Global Business Acumen ________________________________________________________________________ _____ Professional Skills and Core Leadership Competencies 1

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Page 1: Professional Skills and Core Leadership …€¦ · Web viewModule 2 Global Business Acumen Pre-Module Materials 3 Learning Objectives: 3 Assignment 3 Global Business Acumen 4 Cultural

The Global Business Environment

Module 2Global Business

Acumen

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The Global Business Environment

Pre-Module Materials..........................................................................................3

Learning Objectives:..............................................................................................3

Assignment............................................................................................................3

Global Business Acumen......................................................................................4

Cultural Awareness...............................................................................................7Understanding Diversity 7

Cultural Overview..................................................................................................8Cultural Variations 8Cross-Cultural Meanings of Nonverbals 11

Communicating Effectively in Diverse Teams.....................................................13Tips for Communicating with Diverse Teammates 13

Business Culture...............................................................................................15Introducing People 15Etiquette in Communications 16Meeting Etiquette 17Business Dining Etiquette 19

Case Study: Why Traditional Messages Don’t Always Work...............................20Adapting to Change..........................................................................................21

Understanding Change.......................................................................................21Truths and Misconceptions about Change 21Communicating Change 22Tips: Here are some additional tips for communicating change. 24

Facilitating Change..............................................................................................25

Reactions to Change...........................................................................................26What Affects How People Respond to Change? 26Styles of Reacting to Change 26Negative Reactions to Watch For 27

Moving Forward...................................................................................................27What’s at Stake? 28

Activity.................................................................................................................31How Have You Responded to Change? 31Tips 33

Activity.................................................................................................................34Change and the Leadership Paradigms 34

Building Trust....................................................................................................35

What Is Trust?.....................................................................................................35_____________________________________________________________________________Professional Skills and Core Leadership Competencies 1

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What’s So Important About Trust? 35

Trust in Management..........................................................................................36Building Trust 37

Activity.................................................................................................................38Trust Behaviors 38Are You Trustworthy? 41Tips: Questions to Engender Trustworthiness 41What Is Your Capacity for Trust? 42Tips: Questions about Your Capacity for Trust 42

Activity.................................................................................................................44Reflecting on Your Trust Behaviors 44Trust-Reducing Behaviors 45Trust vs. Mistrust 46

When Trust Breaks Down....................................................................................49Restoring Breached Trust 49

Teams.................................................................................................................50

What is a Cross-Functional Team?.....................................................................50

Overseeing Cross-Functional Teams..................................................................51Setting Team Goals 51Helping Teams Thrive 53

The Fundamentals of Virtual Teams...................................................................55What is a Virtual Team? 55Alternative Offices 56Communication Amongst Virtual Team Members 57Barriers to Communication 59

Supplemental Materials.......................................................................................60Job Aid: Change Process Questions 60Recommended Readings and Resources 62For More Information 63Glossary 64Summary and Transition 65

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Pre-Module Materials

Learning Objectives:

Understand the nature of change The use of cross-functional and virtual teams Proper business etiquette and communication, meeting, and

dining situations.

AssignmentCase Scenario / Team Project Presentation #2

Communication in the Workplace: Negotiating with People from Different Cultures The goal of the case is to present a scenario of how to proactively and positively communicate and negotiate in good faith with individuals or groups who are from another culture. Assume in the scenario that you are part of a team working on a project with others from another industrialized nation. The scenario might include a negotiation such as: an agreement between a supplier and the student’s home organization; a dispute over a change in project scope; travel policies; etc.

The intent is to have your team conduct a role-play in front of the class that would demonstrate potential areas of conflict and present acceptable ways of dealing with cultural differences so that each group can save face and resolve their differences. The role-play case scenario should be suitable for videotaping and be based on appropriate research into cultural differences, strategies used in negotiation, and appropriate performance coaching and feedback approaches needed to help your team members communicate effectively in a difficult workplace setting.

Deliverables: 10 minute (maximum) role play or skit suitable for videotaping

that demonstrates a negotiation interaction between parties with different cultural backgrounds and how to properly address differences.

Three page (maximum) summary team research paper

describing cultural differences and outlining the strategy for negotiation in the specific situation along with justification for why their strategy was selected and valid. The papers should be based on at least three current literary sources, be properly cited in accordance with APA standards. The paper is to be submitted in the appropriate Angel Drop-Box.

One-page “job aid” handout to each class member or one-minute (maximum) original digital “video clip” focused on either how to conduct a negotiation or tips for interacting with associates from a specific culture. (The handout is also to be submitted in the appropriate Angel Drop-Box.)

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Global Business AcumenBusiness has changed over the years, and it is becoming less common to find an organization that doesn’t have some sort of involvement with foreign companies. Buying and selling goods and services completely within national boundaries doesn’t make much sense when opening up to the international market can help organizations save money and find new customers.

International Business OperationsHowever, operating in the international business world isn’t the same as operating within one’s own country. It may be necessary to open up facilities on another continent, which can be costly, and if a company’s products and services don’t have universal appeal, it may also be necessary to customize goods and marketing strategies to appeal to the people of a certain country. For example, while something like everyone uses paper in the same way, products such as books, music, clothing and a multitude of other goods would have to be altered or changed to suit various cultures.

The buying-power of money also changes. Just as tourists exchange money when they go to visit a foreign country, organizations must do the same when conducting business internationally. Organizations that do business internationally are actually the biggest customers of the foreign exchange market.

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Key Economic Indicators and Terms

Understanding the economy's ebb and flow can get complicated. Below are some of the most common statistics that economists watch. For example, the gross domestic product, the key measure of the economy's overall output from quarter to quarter, is a good indicator of where the economy's been.

Gross Domestic ProductAs the barometer of the nation's total output of goods and services, GDP is the broadest of the nation's economic measures. Despite a raft of problems in Asia, Russia and Latin America last year, the U.S. economy managed to post strong growth. This year may not be as kind. Consensus estimates are for growth of 2.3%. InflationIncrease in the volume of money and credit relative to available goods and services resulting in a continuing increase in general price levels.

Job GrowthA key to understanding consumer sentiment is job growth. Consumers feel more at ease when the job market is expanding. But when job growth contracts to 100,000 or less month to month, watch out — the economy could be headed for a slowdown. Currently, this indicator bodes well for the economy.

Consumer ConfidenceThe Conference Board maintains this index of consumer sentiment based on monthly interviews with 5,000 households. After hitting historical highs last summer, the index has been falling.

Weekly Retail SalesThe Census Bureau reports retail sales figures monthly, but if you want to know how sales are going before that, take a look at LJR Redbook's retail averages. The numbers are based on interviews with managers at a wide range of stores. Retailers typically plan for 5% year-to-year growth in same-store sales. Lately, the figures have been just shy of those levels.

Monthly Retail SalesFor the big picture in retail sales, check out the monthly reports from the Census Bureau and watch for changes in the trend line. After falling this summer, sales have rebounded, indicating that consumers are still in a generous mood.

Earnings Growth RatesHistorically, earnings have been a key factor in determining share prices. Lately, the correlation has been less pronounced, but the numbers still give investors a sense of the economy's strength.

Institute for Supply ManagementThe ISM's index is viewed as a solid measurement of whether the manufacturing economy is contracting or expanding. Each month, more than 400 companies provide the ISM with data on changes in production, new orders, new export orders, imports, employment,

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inventories, prices, lead times and the timeliness of supplier deliveries. By compiling the responses, the ISM is able to piece together a national economic picture. An index reading above 50% indicates the manufacturing economy is generally expanding; a reading below 50% means it's contracting.

National DebtThe amount that a nation's government owes to anybody, including its own citizens. Thus it is the total of a national government's outstanding government bonds.

Interest RateThe cost of borrowing money, expressed as a percentage, usually over a period of one year.

Trade DeficitThe value by which a nation's imports exceeds the its exports.. When exceedingly large, trade deficits can contribute to an economic crisis and undermine the value of a country's national currency.

CAFTAThe proposed U.S.-Central America Free Trade Agreement (CAFTA) promotes trade liberalization between the United States and five Central American countries: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. Modeled after the ten-year old North American Free Trade Agreement (NAFTA), CAFTA is widely considered to be a stepping stone to the larger Free Trade Area of the Americas (FTAA) that would encompass 34 economies.

NAFTAIn January 1994, the United States, Canada, and Mexico launched the North American Free Trade Agreement (NAFTA) and formed the world's largest free trade area. The Agreement has brought economic growth and rising standards of living for people in all three countries. In addition, NAFTA has established a strong foundation for future growth and has set a valuable example of the benefits of trade liberalization.

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Cultural AwarenessUnderstanding Diversity

What is Diversity?Examples of diversity include, but are not limited to, the following:

Ethnicity – People will often differ in race, nationality, or ethnic background. This can introduce varying cultural norms as well as differences in how one uses language or even which holidays certain people observe.

Gender – Men and women often communicate differently, especially in the way they express emotion and feelings. Sexual tension and misinterpretations can also occur in a team composed of mixed genders. All of this can lead to conflict.

Religion – Even if religion is not openly discussed on your team, you should be aware that it can influence a person’s behavior. This factor often comes to play when a decision has the potential to be viewed as immoral or unethical.

Age – People from different generations were often brought up with different norms and values. For example, someone from an older generation may prefer “tried and true” methods of approaching a problem while younger people may favor a more progressive approach.

Sexual Orientation – As with religion, sexual orientation may not always be discussed openly, but it is still something to be aware of. Care should be taken to avoid saying anything that could alienate or offend someone of a minority sexual orientation.

Physical Handicap – Some team members may have physical limitations. Their competencies should not be devalued because of their limitations, but at the same time, you should be aware that certain accommodations might have to be made. For example, scheduling a team meeting in a room that is cramped and difficult to navigate isn’t very fair to a team member who needs to use a wheel chair.

Personality – People will vary greatly in terms of personality. One person may be dominant while another is shy and reluctant to speak. Some people may be supportive of each other and the team, while others may appear unmotivated. Differing personality types will impact how team members communicate with each other.

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Cultural OverviewCultural Variations

When working for an organization that does global sales, it is also important to consider that you may have to work with people whose cultures are very different from your own. Being adept at interacting with people different from you is an important skill in today’s business environment.

Here are some cultural variations you may encounter or want to consider when interacting with others:

Linguistic – One of the most common differences between cultures is the language spoken by the people. It is always best to be fluent in the language of a person with whom you are doing business. Otherwise, you run the risk that your message will be lost in translation.Nonverbal Interactions – Cultures will vary in their nonverbal interactions. Some cultures prefer to have more personal space; others require much less than what we are used to. Hand gestures can also have different meanings depending on where you are. For example, holding up your first two fingers means “peace” in the U.S., but in the UK, it is a rude gesture.

Individual vs. Group Orientation – Some cultures are very individualistic, taking pride in personal accomplishments and empowerment. In cultures such as this, a negotiator is likely to have the authority to make purchases. Other cultures are more group-oriented. They take pride in working together and sharing their accomplishments. In cultures such as this, you may have to exhibit patience while negotiators consult with their team members and superiors before making a purchasing decision.

Male-Dominated – Some cultures are dominated by males, which can influence their views on how women are supposed to behave and dress. This is something to take into consideration when assigning female representatives to interact with people from this type of culture because they may encounter chauvinism and discrimination.

Religions – Certain cultures place much more emphasis on religion. If working with a highly religious culture, understanding their beliefs can help you when trying to negotiate.

Emotional Displays – Some cultures are more affective than others, i.e. they differ in the amount of emotion they show. For cultures that show little emotion, negotiations will be centered on the product or service being offered. However, in more affective cultures, the negotiations are likely to focus to some degree on the people involved. Even if you are offering an excellent product, if you don’t appear friendly, it can hurt the negotiations. It is often a good policy to try to match the level of affect displayed by the other party.

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Overview of Prominent Cultures

Consider the following information when interacting with people from the cultures below:

African Culture Leisure and family are considered more central to a good life

than work. Business can appear slow-paced, and being too task-oriented may be perceived as rude.

Trusted relationships must be formed before business can be conducted. This means that decisions are based on personal factors as well as data and facts.

It is common for friendly touching to occur. The elderly are highly regarded and given much respect.

Asian Culture The collective is favored over the individual, with a focus on

achieving harmony. Rank and status are highly valued, especially that of males.

Show respect for seniority and age as well as tradition and history.

Formalities are very important when conducting business. For this reason, receiving a business card may hold more weight than it does in the U.S.

Physical contact is uncommon, and personal space should be respected.

European Culture Socialization is highly valued, with emphasis placed on friends

and family. Building strong relationships is considered important.

Eastern Europeans are often highly competitive, and decision-making can be a lengthy process.

Authority and status are important, with respect being shown to tradition.

Southern Europeans tend to be more relaxed about time and punctuality, so you may have to be patient about delays. They also show little regard for personal space and are very expressive when speaking.

Latin American Culture Trust, long-term relationships and loyalty are highly valued. Communication often occurs face-to-face, and schedules are

highly adaptable. Expressiveness and friendly touching are very common. Titles and status are important when conducting business.

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Middle Eastern Culture

Status and integrity are valued over achievements. Using titles is a good way to show respect for a person’s status, and establishing a trusted relationship is likely to help you when arranging a business deal.

Bargaining is a key part of Middle Eastern culture, so negotiations can be very competitive.

Business is often conducted up close, and touching is common.

Women are generally not part of the business world. Religion and family are considered more important than

business. Deadlines and punctuality can be very flexible. People are very expressive. However, many gestures have

different meanings. For example, an upward nod of the head means “no” not “yes,” and turning your back to someone is insulting. It may be useful to read up on gestures before you begin negotiations

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Cross-Cultural Meanings of Nonverbals

Caution

Nonverbal language can have meaning that is culture-specific. An example of a nonverbal behavior that has different meanings among different cultures is eye contact. In the United States, maintaining strong eye contact indicates that the listener is attentive and interested in the message. In some Asian cultures, looking directly into a speaker’s eyes indicates disrespect, while lowering the eyes indicates polite manners. In the animal world, direct eye contact is a challenge or form of aggression, while averted eyes mean submission or harmlessness.

Touching someone while speaking is known as “haptics.” When, where, and how often we touch each other has cultural significance. Americans tend to touch each other less than members of many other cultures.

“Chronemics” is the timing of verbal exchanges—the pause between the conclusion of one person speaking and the other replying. For some, a long wait before a reply indicates lack of attention. However, in some cultures, a pause before replying indicates a polite and considered response.

Personal space is another aspect of nonverbal communication that is culturally specific. Within each culture, there are expected personal distances for different types of relationships. Nonverbal communication can be confusing when these comfort zones are violated. For example, a disaster relief worker in Louisiana successfully calms an elderly, female hurricane victim by patting her on the shoulder as they talk. During a different disaster, the same worker uses the identical tactic on a male disaster victim from another culture and is told she will be "very sorry if you put your hands on me again."

Studies indicate that Americans prefer these proximities:

Personal distance – 1.5 to 4 feet. This is the distance typically found between friends and intimates.

Social distance – 4 to 12 feet. This is the usual distance for social and business transactions.

Public distance – 12 feet or more. This distance is generally preferred among strangers in public.

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Below are examples of some typical nonverbal clusters and their meanings in the United States:

Evaluation chewing on eyeglass frames wearing a thoughtful, intense expression

Boredom slouching in seat yawning staring out window no eye contact neutral expression fidgeting closed posture drifting attention slow to respond neutral or “slurred” speech

Frustration rubbing forehead with hand tense, worried expression throwing hands up in the air

Agreement or Enthusiasm leaning towards speaker making eye contact touching speaker’s arm or hand nodding head relaxed, open posture smiling or laughing faster speech higher pitch

Disagreement or Confusion Frowning shaking head leaning back or away pursing lips tightened jaw and closed posture staring elsewhere shallow, rapid breathing limited facial expression and hand gestures slower speech lower pitch

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Communicating Effectively in Diverse Teams

T i p s

Tips for Communicating with Diverse Teammates Interact with your teammates as much as possible.

Converse with them, and actively listen to what they have to say. Once you get to know a person, it is a lot easier to understand his or her perspective.

Don’t jump to conclusions. Consider a teammate’s cultural norms and background when deciding how to react to a situation or respond to a comment that was made.

Ask questions when you don’t understand someone’s point of view.

Address teammates according to their personality or interpersonal styles. For example, you can use open-ended questions to help prompt shy harmonious team members to contribute to discussions, and you should speak calmly to dominant authoritative team members, using a friendly tone, so that they don’t feel you are attacking their ideas.

Be open-minded about ideas that may seem strange to you. Just because an idea isn’t mainstream doesn’t mean that it couldn’t be beneficial to the team.

Encourage your teammates to share their ideas. The unique perspectives of the various team members can help produce solutions that have a broad appeal.

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How does diversity affect a team?

Diversity can have a very positive effect on teams. The collective variety of backgrounds and experiences can lead to unique ways of viewing a situation, creative problem-solving, and a dynamic work environment. It is true that diversity can cause misunderstandings, but if handled properly, the end-result can be a stronger, more productive team. However, the wide spectrum of differences in viewpoints, values, experiences, preferences, etc. creates the potential for unhealthy conflict, where team members are constantly sidetracked by petty differences. This type of conflict is counterproductive and impedes the process of achieving team goals. It is important to value one another’s differences and be flexible regarding viewpoints different from your own in order to avoid the types of misunderstandings that lead to destructive conflict.Resolving Conflict in Diverse Teams

Rationalize the behavior of others – At times, you may not understand why a conflict is occurring. Try to rationalize the behavior of others, taking into account any background or cultural norms that may be influencing someone’s actions. Understanding where a person is coming from can help you get to the root of a conflict.

Show empathy –Put yourself in the other person’s shoes. Try to understand how you would feel if you were in his or her situation. This will help you remain objective and make it easier to keep your emotions in check.

Search for a solution – Once you have taken steps to understand the other person’s point of view, you are ready to work together to find a solution. Communicate openly with each other, and come up with a list of viable alternatives to address the problem. Seek to find a solution that will benefit everyone involved in the conflict.

Move forward – Choose a viable solution, and work to implement it. Once you have done this, don’t harbor any hard feelings about the conflict. Holding a grudge or feeling as though your pride has been wounded will not help anybody. Instead, try to feel a sense of accomplishment that you and your teammates were able to face a problem and successfully overcome it.

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Business CultureIntroducing People

Introductions happen all the time in the business world. New employees have to meet their coworkers and supervisors, clients must be introduced to the people they will be interacting with, new people are encountered at a social gathering, etc. Introductions are the first step to building relationships, and using proper etiquette can help you get off to a good start.

T i p s

Making Proper IntroductionsThe following guidelines outline the general rules of etiquette that should be followed when making introductions:

When rank is known – When introducing two people who have never met, the person of higher rank has priority; therefore, someone of lower rank should be introduced to a person of higher rank. Reversing the process then finishes the introduction. Those with higher rank should also be addressed using any appropriate titles. For example, here is how you might introduce a new employee to a member of upper management: “Ms. Johnson, I would like you to meet Wesley Price. He is new to the organization. Wesley, this is Sarah Johnson, our director of Human Resources.”

Introducing a client – A client should be treated as the person of highest rank; therefore, even when introducing a client and a member of upper management, the client is the one who receives the other person, i.e. you would introduce someone from the organization to the client.

When rank is equal – When introducing two people of equal rank, the person you are least familiar with should be introduced to the person you know better.

When rank is unknown – When introducing people whose ranks you don’t know, there are still some rules of etiquette you can follow: introduce a younger person to an older person; introduce a non-profession to a professional or officer of some sort, and when you are at a party or convention, introduce an attendee to the guest of honor.

Being introduced – It is just as important to show proper etiquette when you are being introduced to someone as when you are doing the introducing. Making eye contact, smiling, and shaking hands are all standard things to do when being introduced. These actions all convey a positive attitude towards meeting the other person. If you are seated, it is considered polite to stand when meeting someone. After the initial exchange of names, you should also make some sort of pleasant greeting, such as “it’s a pleasure to meet you.”

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Introducing yourself – There are occasions when you will be required to introduce yourself. This often happens at business meetings and social gatherings where there are many people who do not know each other. Introducing yourself is a perfectly acceptable thing to do in this sort of situation. However, you should avoid using titles when referring to yourself. It can appear presumptuous and make the situation feel awkward.

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Etiquette in Communications

Once introductions have been made, it is important to continue using good etiquette to help you build solid business relationships. Areas to pay attention to include: Face-to-face interactions, telephone conversations, and written communications.

Polite Communication

The following guidelines outline the general rules of etiquette that should be followed when communicating with others:

Face-to-face Interactions Actively listen. This includes asking questions when

appropriate and using body language that demonstrates you are paying attention (e.g. sitting up straight, making eye contact, not fidgeting or looking at your watch, etc.)

Try to include shy people into a group conversation so that they don’t feel left out.

Pay attention to the body language of the other person to help gauge whether he or she is comfortable with the topic of conversation.

Stick to neutral topics of conversation when speaking with someone you don’t know very well. Avoid speaking about controversial issues such as religion, sex, politics, etc.

Be tactful when speaking, trying to phrase things in a manner that is acceptable to everyone. This includes respecting any differences between you and another person (e.g. differences in culture, gender, background, etc.)

Telephone Conversations Pick up the phone promptly when you hear it ring. Answer with

a standard greeting, identifying the company and stating who you are and what department the caller has reached.

Enunciate and speak at a proper volume to help keep your message from being garbled.

Do not eat food, chew gum or drink anything while on the telephone. It is very likely that the other person will hear you and perceive this as rude.

When someone is calling to ask for assistance, be as helpful as possible. Try to establish rapport with the person and avoid transferring the call or putting the person on hold. If you must put a person on hold, make sure you ask if this is permissible before doing so. Otherwise, the caller may become frustrated.

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T i p s

Meeting Etiquette

In addition to the etiquette of normal interactions, there are a certain set of guidelines you should follow when conducting and/or attending a meeting. This involves meeting logistics (e.g. who should attend the meeting, when should it be held, etc.) and how you should conduct yourself when at a meeting.

Etiquette in Meetings

Meeting Logistics The person leading the meeting should invite people who need

to know the information being presented, people who will contribute to the meeting, and if possible, anyone who will be affected by the content of the meeting.

It may not be feasible to work around everyone’s schedule, but meetings should be held when the majority of those invited can attend.

Choose a room that is sufficient for the number of people attending (not too big and not too small), and make sure the location is reasonably close to the majority of the participants.

It is customary to have beverages of some sort available (e.g. coffee, tea or ice water).

Participants should be notified about the meeting far enough in advance that they have time to adequately prepare. They should also receive an agenda of the meeting and a roster of who will be attending.

The seating should be arranged to suit the type of meeting. If it is an informational meeting, a classroom style is appropriate, with all the seats facing the front. If people will need to discuss things with one another, then seating should be arranged so that people are facing one another.

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Meeting Conduct Respond promptly to a meeting invitation. If you won’t be able

to attend, have someone take notes for you or fill you in at a later date.

Adequately prepare for a meeting, doing any requisite research or reading before you arrive.

Be on time for meetings (i.e. neither late nor early). Arriving more than 10 minutes early may distract the leader because he or she may still be preparing some last minute details. Arriving late can be perceived as rude, and it may disrupt the meeting. If you know you will be running late, mention it to the meeting leader beforehand.

If you need to leave early because of another commitment, inform the meeting leader ahead of time and sit near the door so you can leave without distracting anyone.

Respect the meeting agenda by not trying to talk about a subject out of turn. This allows every topic of discussion to receive a fair amount of time.

Participate when it is called for, either sharing your ideas or asking questions for clarification, but avoid interrupting, waiting until the appropriate time to ask questions.

Avoid appearing bored or inattentive. You should not fidget, doodle or stare off into space. Instead, actively listen to what is being said, taking notes if necessary.

Turn off any audible signals on your watch, PDA, cell phone, etc. before entering a meeting. Not only is this respectful, it prevents unnecessary distractions.

Even if you have a personal grudge against someone at the meeting, focus on the issues being discussed rather than on your interpersonal problems with another attendee.

If you are asked to do something as a result of the meeting, follow-up with the meeting leader at a later time to inform him or her of your progress.

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Business Dining Etiquette

Approximately 50% of all business transactions are finalized over a meal (Hamilton-Wright, 2004). Table manners can say a lot about your image.

Sit at the head of the table if you are the host, guests should be seated after the host sits or asks the guest to be seated

When using utensils, start from the outside and work your way in, food dishes are always to your left.

Bypass alcoholic beverages and order foods that are easy to work with

Rest your utensils vertically on the sides of your plate, fork on the left, knife on the right

Always pass salt & pepper together, whether or not both are requested, pass food counterclockwise

Never double dip! To hail the server, make eye contact or discreetly raise your

hand. The host generally pays the bill and tip, it could be good

etiquette to offer to pay or leave the tip.

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Case Study Case Study: Why Traditional Messages Don’t Always Work

To illustrate how cultures shape behavior, read the short case study below. Then, try to analyze what you think occurred.

What’s Going On Here?Your community has a large population of immigrants and their descendants from India. As part of a community preparedness campaign, you have been asked to speak at a town meeting about how to be prepared for extreme temperatures.

On the evening of your talk, you arrive early to check out the audience and notice that a large percentage is Indian. As you begin your talk, you notice that the Indian members of the audience are slowly shaking their heads back and forth sideways. You don’t understand why they don’t understand your message because the others in the audience are obviously engaged.

AnswersAnswers to Case Study

What happened during your talk?

Were the Indian members of the audience not listening? Did they not understand? Did they disagree?

Slowly shaking one’s head back and forth sideways does not always mean “no.” Rather, it signals “I’m listening” in parts of India. The Indian members of your audience were paying every bit as much attention to your message as others.

Why Traditional Messages Don’t Always Work

As you saw from the case study, cultural differences reflect internal beliefs and thought patterns that cause people to react differently to the same situation.

To a large extent, the misunderstandings that occur involving people from different cultures have nothing to do with what they said—it’s how they said it, what they did when they said it, or even who they said it to.

Cultural issues aren’t your only considerations when communicating. Differences in age and sex, the presence of a disabling condition—and even the part of the country you live in—can affect how you communicate.

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Adapting to Change

Understanding ChangeChange is an essential part of life. History shows how everything from fashions to attitudes change through the years. Change reflects the underlying shifts in the values and expectations of their times (Holman & Devane, 1999).

Some people may welcome it, and some people may dread it, but the fact of the matter remains – change is a part of organizational life. Understanding some of the truths about change (and banishing some of the misconceptions) can make it easier to embrace and cope with change.

Truths and Misconceptions about Change

TruthsChange is necessary – Change is a source of growth, creativity and renewal; without it, companies stagnate. Although organizations should not initiate “change for change’s sake,” as new technologies arise, companies merge, new organizational strategies become popular and the global market becomes more and more accessible, organizations that do not change to fit the times risk being left behind by their competition.

Change is inevitable – Change is a constant part of the workplace environment. As organizations work to increase productivity and improve processes, you will have to adjust to accommodate these changes. Be prepared to have to do things in a way that you are unaccustomed to.

Change is unpredictable – Although change can be an excellent opportunity to revitalize an organization, there is also risk involved with change efforts. There is the potential for failure, and this can make people nervous and stressful. If change is perceived as damaging in some way, people may try to resist it.

Misconceptions Change is a response to a problem – While it is true that an organization can change in order to fix a problem that it is experiencing (e.g. low customer satisfaction), change should not be viewed solely as a way to fix something wrong. Change can also be undertaken in response to an opportunity. For example, a company may wish to upgrade its software because a better technology has become available. Even though the current system isn’t malfunctioning, it is perfectly acceptable to change to the new software if it will be beneficial to the organization. Changing in response to opportunities can help keep organizations on the cutting edge.

Change affects everyone equally – Even if two people with similar jobs are experiencing the same exact change effort, it is unlikely that they will react to the change in the same manner. People have

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different levels of resilience (i.e. the ability to cope with change). Some individuals will adapt rather quickly, and a few many never completely adjust. Regardless of a person’s resilience, everyone will need a period of transition, during which they will come to terms with the consequences of the change. They may have to learn to use new equipment or software, adjust to a different way of doing things, and in general, become comfortable with their new environment. The timeline for this depends upon each individual and how well he or she can cope with the change.

Communicating Change

Communication is the common thread that is woven throughout all of the change process components. The ability to communicate effectively about change is a critical aspect of a leader’s success at facilitating change.

Why?

In Managing Transitions, (Bridges, 1991) outlines a simple and effective method for communicating during a change initiative. This method includes communicating “Four Ps”: Purpose, Picture, Plan, and Part.

Purpose

Communicating the purpose of the change relates to the Purpose of Change component of the change model. It involves answering the question, “What is the reason or idea behind the change initiative?” “What problem are we trying to fix?” or “What opportunity are we trying to capitalize on?”

Bridge suggests that leaders need to sell the problems before they begin communicating the solutions.

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100%Successful

Picture

A leader must communicate a picture of what things will look like when the change is complete. This relates to the Change Process component of the change model.

People need to know the outcome of the change and how they will fit into the picture. The picture needs to be as detailed as you can make it.

Plan

A leader must communicate the plan for how things are going to happen. This also relates to the Change Process component of the change model.

This communication is the step-by-step description of how the organization plans to get from its current state to the desired state. It also includes a description of how and when people will receive the training and resources they will need to make a successful transition.

What about me? Part

Finally, a leader must communicate the part each employee or stakeholder will play in the process and the outcome. This relates to Personal Response to Change and to Sustaining Energy Over Time.

Stakeholders will want to know how they will fit into the new scheme of things. Foremost in their mind is, “How will my job and/or life change?” and “Can I contribute to making this change a reality?” Most people also want a role in helping to shape and guide the change process itself.

You may not always have all the information required to communicate the Four Ps. However, it will be your responsibility as a leader to get the information needed by those involved in or impacted by change. (Remember, this is the kind of information that enables the “Hems” and “Haws” to move forward.)

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T i p s Tips: Here are some additional tips for communicating change.

Communicate first through action, then words.

In other words, “walk the talk.” Your statements, no matter how well crafted, will only deliver a conflicting and ultimately alienating message if your behavior is inconsistent with the underlying values or vision being expressed.

Behavioral integrity, the hallmark of a transformational leader, is of utmost importance when communicating change. As a leader, you are expected to walk the talk and to operate with integrity. If you twist the truth or spin the facts, people will become distrustful and you will lose their respect.

Recognize that perceptions will become distorted.

During times of change, perceptions become distorted. Employees will read underlying messages into what they see and hear, inferring messages behind actions and statementseven when no message is intended. Keeping people informed and being honest with them go a long way in countering unfounded perceptions.

Remember the “rule of six.”

When people receive new information, they often don’t “get it” the first time around, even though we think they should have. That’s why it’s important to communicate new information related to the change six times, in six different ways.

Anticipate and allow for strong emotions.

Allow people to “let off steam.” Recognize and communicate that emotions are not only natural, but also a necessary part of the change and transition process. Find productive venues for people to express their anger, frustration, confusion, anxiety, and other emotions.

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6x6times ways

walkthetalk

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Facilitating ChangeIn her book, Change Process Guidebook, Linda Ackerman described a change management process with seven components. The process is depicted below and described on the following pages. Note that this is not a linear process. You will often find yourself working in many components of the process simultaneously. In addition, some of the concepts presented in each component overlap with other components.

Leadershipmindsetabout

change Purposeof

change

Changeprocess

Predictableforces set inmotion

Structuresfor managing

the change

Sustaining theenergy for changeover time

Personalresponse to

change

Environment

The Process Components

Leadership Mindset About Change involves creating conditions of success and demonstrating continuous sponsorship for and support of the change effort. The essence of a leadership mindset is advocacy. In other words, the leader must be able to:

Explain the drivers for change (what is happening, why it is important).

Advocate the change.

Convey a sense of urgency.

Leverage opportunities to move forward.

Be visible and involved.

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Reactions to Change

What Affects How People Respond to Change?

The following factors can affect whether people respond positively or negatively to change:

Level of confidence – If people have a high level of confidence in their ability to change, they are much more likely to view a change as positive. When people perceive that they aren’t up to the task, they may feel anxious about the change.

Potential for loss or gain – Whether a person stands to gain or lose from a change will affect his or her behavior. Employees who believe they will benefit from a change are much more likely to support it than those who perceive that the change will harm them in some way. One way to help employees respond well to change is to convince them that the change is beneficial.

Prior experience with change – People who have successfully weathered change efforts in the past should feel confident about an upcoming change effort. However, those who have had negative experiences with change may associate their bad experiences with all change, which could result in feelings of fear and anxiety regarding an upcoming change effort.

Degree of the change – Undergoing a small change, such as the inclusion of new employees into the workplace, is relatively easy to manage. Larger-scale change, such as a company merger, can be much more stressful on employees. If there are multiple change efforts going on at the same time, this can also have a negative effect because people may become overwhelmed by too much change too quickly.

Styles of Reacting to Change

People fall into three general categories when responding to change:

Innovators – These are the people who respond very well to change; they may even be the ones who initiate it. For them, change is new and exciting, and it can’t come soon enough. Approximately 20% of the people in an organization fall into this category.

Traditionalists – These people are deeply rooted in tradition. They prefer things to stay the same, and they may actively resist change efforts. Because of their deep desire to maintain the “status quo,” traditionalists will have difficulty completing a change effort, and some may never fully adapt. Approximately 20% of the people in an organization fall into this category.

Adaptors – These people are usually hesitant about change at the outset, but they are willing to undergo change when it is necessary. Often, they will wait to see how the change will affect them before

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making any decisions about it. Approximately 60% of the people in an organization fall into this category.

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Negative Reactions to Watch For

The transition time of a change effort can be a time when new ideas surface and employees discover unknown talents, but transition can also be a difficult period for employees. Watch out for the following reactions:

Negative emotions – Feelings of anger, fear and/or depression are common during a change effort. Company loyalty may also suffer. It is important to acknowledge these feelings and talk through them with a co-worker, supervisor, or even a counselor. If left unchecked for too long, these feelings can cause morale to drop.

Poor team performance – While adjusting to a change, it is common for teamwork to suffer. It is difficult to focus on a task while also trying to accommodate a change in the workplace. The poor performance should pass once team members become accustomed to their new work environment.

Low motivation – If employees do not agree with the change effort, they may lose their motivation to work diligently. A symptom of this is increased absence from work.

Moving ForwardTips for Moving Ahead

Make sure that you have accurate knowledge about a change effort. It’s easy for people to think the worst if they don’t know what is going on.

Discuss your concerns with a supervisor, and seek advice if you are having trouble adjusting to a change.

Realize that change will often occur whether you like it or not, so accept the need to move forward and adjust to the new circumstances.

Think about the vision of the company. Change is usually undertaken in order to improve the company in some way. Understanding how the change effort will help the organization can help you realize that it is for the best.

Maintain a positive attitude. It can help to try to view the change effort as a way to not only better the organization, but to improve your own skills as well.

Offer feedback about the change effort to your supervisor or manager. Some of your suggestions may help move things along for everyone.

If things are difficult, avoid placing blame on the organization or those who initiated the change. Accept that problems will occur, and work to overcome them.

Take time to relax and unwind. Reward yourself when you have made noticeable steps towards adjusting to the change. This will help you avoid burnout.

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What’s at Stake?

Most organizations, whether private or public, have been facing wave after wave of significant change that will only increase in volume, speed, and intensity in the future. With all the change going on, the cost of failed change has become high for organizations. There is an equally high “human toll” from failed change because the first casualty is loss of trust. Compound that loss with the emergency management goal of protecting life and property in the face of disasters, and the potential loss is great indeed.

Of crucial importance is not what change happens, but how change happens. In the late 1990s, a study for managing change in the government singled out leadership as the most critical factor in the successful implementation of change. Clearly, organizations that are most successful are those that:

Have learned how to respond to changes that impact them.

Have leaders who know how to plan for and implement change well.

Attend to people’s reactions and feelings associated with the change.

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Change Process involves activities such as: Articulating a vision (where we want to be and what the

benefits will be) and soliciting ideas and contributions from stakeholders throughout the process.

Creating an implementation plan. The plan should identify and assign responsibility for actions critical to success; anticipate and address potential obstacles; and outline measures for assessing progress.

Implementing the change.

Monitoring and analyzing the impact of the change, including the impact on the workforce, needed training, and system modifications.

Fine-tuning the change process: identifying and correcting problems early, learning from mistakes, and adjusting as needed.

Predictable Forces Set in Motion involves:

Identifying the potential resistance points to the change.

Establishing ways to manage the resistance.

Recognizing that performance may be temporarily impacted.

A leader must be attuned to the politics of change (both internal and external) and be willing to act as a catalyst for change by shifting the culture to accept change.

Structures for Managing Change (the area where organizations most often fail when managing change) is the nuts and bolts of implementation. The leader must facilitate change by anticipating needed adjustments to such structures as:

Organization and systems, including interim systems during implementation of the change.

Policies.

Short- and long-term action plans and communication plans.

Resources (e.g., training and development, exercising, electronic capability, space, personnel, budget).

Transition managers who can serve as coaches.

It is important that the implementation structures include representatives of key stakeholder groups, as well as those needed for their expertise and technical and/or functional authority.

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Sustaining Energy for Change Over Time relates to:

Creating a critical mass for change by identifying those who will be affected by the change and whose support is critical.

Asking for and providing what employees need to accept and support the change.

Being available to listen to employee concerns.

Leaders need to be highly visible and personally involved throughout the change process, continually revalidating that objectives are being met. Even small successes should be celebrated.

Personal Response to Change involves attending to the “people” part of changebeing tuned in to how people respond to change. It requires:

Soliciting employee feedback throughout the process.

Anticipating that people will have different reactions to the change.

Constructively responding to employees’ reactions and needs.

Soliciting authentic feedback from stakeholders is an important means of keeping a finger on the pulse of personal response to change.

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Activity

ActivityHow Have You Responded to Change?

A. Responding to External Change

Think of an instance in which you were faced with a major external change.

1. Can you identify any of the four characters just described in the way you responded?

2. How did you prepare yourself to make the change?

3. What challenges did you meet along the way?

4. What drove you, or supported you, in making the change?

B. Responding to Internal Change

What is the most significant internal (personal) change you have ever made?

1. Can you identify any of the four characters in the way you responded?

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2. How did you know you needed to make the change?

3. How did you prepare yourself to make the change?

4. What challenges did you meet along the way?

5. Who or what drove you, or supported you, in making the change?

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T i p s

TipsSomeone with a leadership mindset about change would have the following characteristics and behaviors:

Is credible and influential.

Acts as a catalyst instead of controller.

Balances organizational and individual needs.

Takes fear out of change by focusing on the opportunities presented.

Is helpful, visible, and personally involved.

Walks the talk (backs up words with consistent action).

Is willing to listen to employee concerns.

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Activity

Activity Change and the Leadership Paradigms

1. Which of the change process components just discussed are most associated with thinking like a transformational leader?

2. Which are most associated with thinking like a transactional manager?

Answers:1.The following components relate to the Transformational paradigm:

Leadership mindsetPurposePredictable forces set in motionSustaining energyPersonal response

2.The following components relate to the Transactional paradigm: Change process

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Structures for managing change

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Building Trust

What Is Trust?

Trust is a relationship based on mutual confidence that we will both:

Do what we say.

Communicate honestly.

Respect one another’s knowledge, skills, and abilities.

Maintain confidentiality.

Keep our interactions unguarded.

Trust is a state of mind. Notice that all of these things are actions. It’s not our words that generate trust, but what we do. The real message is in our actions. Trust is a combination of trusting others and being trustworthy.

What’s So Important About Trust?

Trust is a fundamental building block of human relationships. In simple terms, it’s just how people treat each other.

Trust is also the very core of leadership. Willing followers must trust their leaders. (Without trust, no one will follow.) But trust cannot be mandated; it must be earned.

Earlier, we said that Transformational Leaders get their credibility and power “from behavioral integrity’walking the talk and talking the walk.’ Leaders’ power comes from their consistent, principle-centered behavior and actions that demonstrate honesty, integrity, trust, dignity, and respect for all people.” This is why people choose to follow them.

Benefits of a High-Trust Environment

A high-trust environment creates commitment and loyalty to the organization. When people get the idea, “We’re all in this boat together,” the organization is invariably better for it.

In a high-trust environment, leadership tells the truth, and people are enlightened about the organization’s position and what actions they need to take to help achieve its goals.

In a high-trust environment, people are more willing to accept change and to work toward successfully integrating the effects of change.

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Trust in Management

Every manager in business, industry, and government has an important leadership role in building a high-trust environment with his or her employees.

As a leader within management, you have a more complex role of building trust at multiple levels. Trust is a necessary element of:

Leading your subordinates to work energetically toward meeting the organization’s goals.

Developing trusting relationships with other levels of the government hierarchy to ensure a coordinated response to the needs of the community.

Working with other organizations or departments in joint mitigation, preparedness, including evaluation of hazards, planning, inter-department activities, and voluntary agreements.

Teaming with other organizations or departments in challenging times.

Developing constructive relationships with the media to ensure effective cooperation in public education and communications.

Building positive relationships with the public that will foster willing cooperation.

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Building Trust

When things are continually changing, it can become difficult to build a case for trust. It’s almost as if you were saying . . .

Trust me . . . I’ve never done this either!

In these times of rapid change, more than ever before, your challenge as a leader is to build trust where it has never been and to rebuild trust where it has been lost.

Many of the strategies discussed will help you to minimize the erosion of trust. How else can you, as a leader, build trust among your constituentswhether they are employees, those above you in rank, your peers in other organizations, the media, or the public?

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Activity

ActivityTrust Behaviors

1. What are some of the specific ways you demonstrate that you “do what you say”?

2. What are some of the ways you can show respect for the knowledge, skills, and abilities of your employees or other stakeholders?

3. What actions can you take to ensure that your interactions with employees and/or stakeholders are and will remain unguarded?

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Learning Points:

1. Doing what you say may be evidenced by such behaviors as:

Managing expectations Establishing boundaries Delegating appropriately Encouraging mutually serving intentions Honoring agreements Being consistent Meeting expectations

2. You can demonstrate respect for other people’s knowledge, skills, and abilities by such actions as:

Acknowledging their abilities to do their jobs. Allowing them to use their talents to accomplish goals. Being aware of your control needs and their impact on

others. Reducing controls; not micromanaging. Involving others and seeking their input. Helping people learn skills. Giving them the resources, authority, and responsibility

needed to get their work done right. Trusting your own competence to assess each situation with

open eyes and determine whom you can trust with what.

3. You can demonstrate unguarded interactions by such behaviors as:

Sharing information. Telling the truth. Admitting mistakes. Giving and receiving constructive feedback. Allowing for mutual influence; clarifying mutual expectations. Maintaining confidentiality. Speaking with good purpose.

Transformative Trust

Building and nurturing trust in the workplace takes thinking and acting from a Transformational leadership perspective.

In Trust and Betrayal in the Workplace, (Reina & Reina, 1999) discuss “Four Cs” of transformative trust that leaders must demonstrate and support.

The Four Cs of Transformative Trust Conviction: The conviction to acknowledge the truth about

the dynamics that have occurred, including any loss of trust people have experienced.

Courage: The courage to honor relationships when the _____________________________________________________________________________Professional Skills and Core Leadership Competencies 41

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going gets tough and when we are truly challenged.

Compassion: A sense of compassionwillingness to forgive ourselves and others for mistakes and transgressions.

Community: A sense of community to reframe painful situations and take responsibility to help people understand what we and others have experienced, draw on it in constructive ways, and let go.

onvictionourageompassionommunity

onvictionourageompassionommunity

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Are You Trustworthy?

Demonstrating the “4 Cs” is important to building trustworthiness. In addition, you should periodically gauge how worthy of trust your own behavior is. You can use the following questions (Kouszes & Poser, 1993) as a starting point.

T i p s

Tips: Questions to Engender Trustworthiness

Is my behavior predictable or erratic?

Some degree of predictability or consistency is required for people to believe in you. Consistency means that your values and goals influence your actions and words and these will not give way to the shifting tides of politics or fads.

Do I communicate clearly or carelessly?

Sometimes people think out loud and make statements that may still be very tentative in our minds. When you do this frequently without being committed to your intentions, people will begin to see you as unreliable and begin to distrust you.

Do I treat my promises seriously or lightly?

People will respond to your commitments and promises in the same way that you do, so it’s important to think about the message you want to send. And, if people can’t distinguish between your vague desires and serious commitments, the ensuing confusion will lead to distrust.

Am I forthright or dishonest?

If you deliberately mislead or lie, then other people have good reason not to trust you. Honesty doesn’t require full disclosure, but it does require an indication of areas about which complete openness should not be expected and a good reason why it’s not appropriate.

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What Is Your Capacity for Trust?

Your ability to sustain trusting relationships also hinges on the extent to which you are able to put your trust in other people. Your capacity for trust reflects your propensity to assume that others are trustworthy (or not) when you don’t have specific evidence to go on. To some extent, that view relates to the extent to which you trust yourself.

The following questions1 will help you begin to think about your capacity for trusting others.

T i p s

Tips: Questions about Your Capacity for Trust

Do you trust yourself? In what types of situations can you answer “yes” and in

which is the answer “no”? In what ways do you consider yourself reliable? In what ways do you consider yourself unreliable?

Do you trust others? In what situations can you say “yes” and in which is the

answer “no”? What do you look for when considering whether another

person is trustworthy?

Do you tend to assume that others can be trusted until proved otherwise, or do you wait for people to prove they are trustworthy? How does this tendency, one way or the other, affect your

personal and work relationships?

1

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Deciding to Trust

Your capacity for building trusting relationships, in general, is a function of your propensity to use trust-enhancing behaviors and the degree to which you expect others to use them.

But what about specific relationships? Your decision to trust a specific person, and the degree of trust you place in that person, are influenced by many factors, including:

History and experience with that individual.

The person’s level of competence and ability.

How much risk is involved, or the potential for negative consequences.

The person’s relative power and authority.

The organizational environment.

So, you can work diligently on your general propensity to trust, but some people will still let you down. Does that mean you shouldn’t trust?

No, because although trust can be person-specific and situation-specific, you still have a general propensity to (or not to) trust. And that propensity will in turn influence the decisions you make. Most people can stand to expand their capacity for trust.

Expanding Your Capacity for Trust

First, you can simply be aware of the kinds of behaviors that help to build and maintain interpersonal trust, including those that you personally tend to (or not to) demonstrate.

Then you can identify instances, examples, and situations where you can try to use those trusting behaviors more (those you might not use enough).

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Activity

ActivityReflecting on Your Trust Behaviors

1. Reflect on the Questions to Engender Trustworthiness (page 4-8). Then list at least one action you can take to improve in each of the following areas:

a. To improve the predictability of my behavior, I can:

b. To improve the clarity of my communication, I can:

c. To improve the seriousness with which I treat my promises, I can:

d. To improve my forthrightness, I can:

2. Reflect on the Questions about Your Capacity for Trust (page 4-9). In what ways or in what situations do you have the least capacity for trust?

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Activity

Trust-Reducing Behaviors

We have discussed a number of ways to build trust and fulfill the expectations of a trusting relationship: doing what we say; communicating honestly; respecting one another’s knowledge, skills, and abilities; maintaining confidentiality; and keeping our interactions unguarded.

Just as consistently fulfilling expectations strengthens trust, failure to act in these ways invariably undermines and erodes trust. For example, the following types of behavior will invariably reduce trust:

Distorting, withholding, or concealing real motives.

Falsifying relevant information.

Attempting to control or dominate.

Obscuring, distorting, or avoiding discussion of mutual expectations.

Not meeting others’ expectations of performance or behavior.

Attempting to evade responsibility for behavior.

Accepting credit for other people’s work.

Not honoring commitments.

Giving people responsibility without the appropriate resources and authority.

Gossiping.

Any of these behaviors can be intentional or unintentional.

Remember, building trust is a slow process, and trust can be destroyed by a single event. Trust is destroyed by a win/lose mentality, and trust is strengthened by a win/win mentality.

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Activity

Trust vs. Mistrust

Instructions: Review each of the following behaviors. Decide if it would be likely to build trust or to build mistrust. Then check the appropriate box.

BehaviorBuilds Trust

Builds Mistrust

1. When in doubt about taking on a commitment, air your concerns with the relevant parties.

2. Be unclear or not exactly explicit about what you need or expect. Assume that anyone would know to do or not do that.

3. Solve problems through direct communication at the lowest equivalent levels: yourself and peers; yourself and your direct manager; yourself, your manager, and his/her manager.

4. When engaged in an ongoing commitment, communicate anticipated slippage as soon as you suspect it.

5. Make a pretended or “soft” commitment (e.g., “I’ll respond later.”).

6. Schedule regular meetings for input and feedback for those reporting to you.

7. Acknowledge the intent and risk of innovation first, then address the issue with your honest opinion.

8. Talk with others about problems you are having with a peer without doing everything reasonably possible to solve the problem through direct communication with that peer.

9. Spend “informal” time mingling, asking nonassumptive questions, making only promises you can keep, working back through existing lines of authority.

10. Take credit for yourself, or allow others to give you credit for an accomplishment that was not all yours.

11. Communicate abruptly when others venture new opinions or efforts.

12. Have performance evaluation time be the only, or primary, time for coaching input.

13. Get in direct, tactful communication, airing your problem and seeking win-win resolution.

14. Withhold deserved recognition at times when you yourself are feeling underrecognized.

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15. Manage or supervise from behind your desk only.

16. Share credit generously. When in doubt, share.

17. Be explicit and direct. If compromise is productive, do it in communication, not in your mind alone.

18. Be timely.

19. Be willing to be wrong.

20. Withhold potentially useful information, opinions, or action until the drama heightens, thus minimizing your risk of being wrong and maximizing credit to you if you’re right.

21. Hold in your mind another department’s productivity or behavior as a reason for less cooperation.

22. Extend yourself beyond your own short-term feeling and validate success or new effort.

23. Develop systems for staff to evaluate supervisors and managers.

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AnswersAnswers:

Builds Trust

Builds Mistrust

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

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When Trust Breaks Down

You’ll probably survive one unintentional breach of trust, especially if you take action to address the situation. But as unintentional breaches accumulate, other people will eventually begin to distrust you. With their distrust will come the belief that your intentions are not sincere and that you have ulterior motives.

Restoring Breached Trust

T i p s

After you’ve breached trust, it is important to consider how to restore it. Here are six steps you can take to recover from a mistake that may have unintentionally damaged trust.

Accept: Accept personal responsibility for your actions and those of your organization.

Admit: Publicly acknowledge that you have made a mistake. Many times, leaders either deny or attempt to cover up any wrongdoing for fear that admitting a mistake might damage their credibility. Evidence shows that attempting to hide mistakes will be much more damaging and will actually erode trust.

Apologize: Offer an apology. This lets others know that you are concerned about the impact or problem your actions may have created.

Act: Take action to deal with the immediate consequences of a mistake. This lets employees know that you are willing to do something. This is a good time to get others involved by asking for suggestions and trusting their judgment.

Amend: Make amends. A leader’s error can cause undue hardship to others. The amends should fit the problem.

Attend: Leaders need to make sure that they are attuned to the influence their actions are having on rebuilding lost trust. Pay close attention to the reactions of those who are affected, ask for feedback, and be nondefensive in listening to constructive criticism. This should also help you avoid unintentional breaches of trust in the future.

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Teams

What is a Cross-Functional Team?

A cross-functional team is made up of employees from different functional areas and/or departments in an organization. Every team member brings a specific skill or expertise to the team (e.g. knowledge of human resources, marketing, legal issues, etc.), and people from varying levels in an organization may also be selected (e.g. an executive officer, manager, sales representative, etc.). A key characteristic of cross-functional teams is that they are created to serve a specific purpose. They work to achieve a certain goal, and once that is accomplished, they are disbanded. Because the team is not permanent, the team members often have to split their time up, working to fulfill the team’s objective while at the same time continuing to perform their normal job duties. Cross-functional teams can be useful for accomplishing a variety of goals, such as quality improvement, developing new products, handling special projects, or improving processes.

Functioning Together

Cross-functional teams can be very beneficial to an organization. They enhance communication between departments, and the unique knowledge of the different team members can lead to issues being identified and addressed early on in the problem-solving process. Working together can also help team members become more creative and have a sharper focus on furthering the goals of the organization as a whole rather than just their department. However, functioning as a team can be difficult. There needs to be an environment where the team can thrive; otherwise, there is very little chance of success.

Examples

In the 1990s, Raytheon, migrated to a new mainframe computer system that did not include a materials tracking program creating a supply chain problem. Using a cross-functional team to search for a remedy, a solution was developed that is now project to save the company $26 million over the next four year (King, 2004).

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Overseeing Cross-Functional Teams

Hierarchy of Leadership in Cross-Functional Teams

Steering committee – This is the highest level of leadership for a cross-functional team. This is the group that is responsible for determining that a cross-functional team is necessary, writing the team charter, and appointing a team sponsor.

Team sponsor – This is a member of upper management who is responsible for overseeing a team’s project. This person has the authority to make decisions regarding the team and the power to give team members access to resources. The team sponsor is not an actual member of the team, but he or she should be given regular updates on the team’s progress. The sponsor will then communicate this progress to the steering committee.

Mangers and supervisors – Although they don’t have direct control over a team, managers and supervisors still oversee the employees who have been appointed to a team. Having their support will help ensure that the various team members have enough time to devote to the project.

Team Leader – The team leader is responsible for working with managers to select who is best suited to be on the team, as well as keeping managers informed of the team’s progress. The team leader is also the person who will oversee the daily functioning of the team. He or she must delegate responsibility, facilitate group interaction, and help resolve conflict. This is the person team members would go to first if they have a problem or concern.

Setting Team Goals

While cross-functional teams are given broad goals from the steering committee in the team charter, that isn’t enough for a team to get down to the business of completing a project. Before any work begins, a team must define its purpose, starting generally and gradually narrowing until every team member has a specific task to accomplish.

Developing Team Objectives

The following steps can be used to guide a team from a broad goal to achievable objectives:

1. Develop a vision – Team members need to work together to develop a vision for their team, i.e. a hope for the future. The vision can focus on how the team plans to make the future of the organization brighter, or it can even extend outwards, focusing on how the world at large will ideally be made better in some way as the result of the team accomplishing its goals.

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2. Develop a mission – A team’s mission is a concrete statement about what the team hopes to accomplish, i.e. a stated purpose that highlights the specific goals or problems that the team will address. Having a concrete mission statement will help the team become more cohesive because the members will have a firm grasp on why the team exists and what they hope to accomplish.

3. Develop team goals – Developing team goals is the first step in breaking down the mission into manageable parts. Goals are the major things that need to be accomplished in order to achieve the mission of the team. These goals should have a timeline, usually no more than 2-5 years, and the entire team should work together to develop them.

4. Develop team objectives – Objectives are specific, short-term steps that team members can take to accomplish the team goals, and team members should work together to develop them. The timeline for objectives is usually no more than a year. Both goals and objectives are important for teams because they serve as measurable criteria for determining what the team has accomplished and what it still has left to do.

5. Develop an action plan – The final step a team must take before it can begin working to complete a project is to develop an action plan. The action plan lays out the responsibilities of each team member according to their functional expertise, and it also details the date by which these tasks should be completed. By using the action plan, team members will be able to identify what resources they will need to fulfill their duties. Having a set timeline will also give the team a baseline off of which they can measure their progress.

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Helping Teams Thrive

The following qualities will help create an environment conducive to team success:

Strong leadership – A leader must have the appropriate technical skills to oversee the team project, as well as strong interpersonal skills to help manage diverse team members. It is the leader’s job to delegate responsibility and establish roles and expectations.

Adequate authority – If a team does not have enough authority, it cannot go about completing its tasks. Authority also needs to be clearly defined. Requesting documentation of the team’s authority from upper management is a good way to let the team know how much power it has.

Clearly defined goals – Every cross-functional team has an ultimate goal to achieve, but it is unlikely that the goal can be reached in one step. Having clearly identified intermediate goals will help the team make progress and lessen ambiguity about assignments.

Managerial support – The support of upper management is necessary in order for teams to receive approval and have access to required resources and funding. Team members also need the support of their supervisors in order to properly fulfill all of their obligations. However, managerial support is not the same as managerial interference. Some members of upper management may push for results that conflict with the purpose of the team. This type of interaction is likely to decrease creativity and interfere with team progress.

Motivated team members – Team members will naturally vary in how motivated they are to be on the team. Some may approach the idea with much enthusiasm, while others will be more reluctant. Receiving positive feedback and constructive advice can help team members feel that they are valued, which will increase their motivation.

Conflict resolution skills – Regardless of whether conflict is beneficial or destructive, it takes time to resolve, which can be costly for a team. If the team leader and team members have good conflict resolution skills, the time taken to address conflict can be minimized, allowing the team to get back to the business of accomplishing its goals.

Appropriate size – A team that is too large will struggle with communication and reaching consensus on decisions. Only those integral to team success should be on the team. The ideal size is 4-6, with 10 as an upper limit.

A team charter – Having a team charter is a good way to define the details of how the team will function. It contains the overarching purpose and goals of the team, how these goals will benefit the company, the resources available to the team, and a deadline for the project. It can also detail the amount of authority the team has to make decisions.

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Where Leadership Begins In his book Leading from the Inside Out, (Cashman, 1998) said:

“We tend to view leadership as an external event . . . as something we do. Rather, leadership is an intimate expression of who we are; it is our being in action.”

In other words, we tend to think of leadership as telling others what to do instead of looking inside ourselves and thinking about how our leadership actions reflect who we are. Thus, instead of thinking, “What action should I take in this situation?” perhaps we ought to think more broadly and look at how our view of the world impacts our decisions, and how the messages we send through our language and actions impact others

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The Fundamentals of Virtual Teams

What is a Virtual Team?

Virtual teams, in essence, are very similar to traditional teams except that the team members are separated by long distances. This comes as a result of organizations globalizing their operations yet still needing employees to collaborate to achieve certain goals. Virtual teams face all of the same challenges that a normal team must confront, but there is the added complexity of the team members being in different locations. Team members must use various forms of communication technology (e.g. telephone, fax, video conferencing, e-mail, chat rooms, etc.) to work together, share information and collaborate their work efforts.

When working in any team it is important t address the following items. However when working in a virtual team, this becomes critical (Sookman, 2004).

Commit to the scope of the project Agree to time schedules Recognize the risks involved Agree to share information on a regular basis

Pros and Cons of Virtual Teams

Virtual teams can be essential for an organization that wants to function in a global environment, and technological advances are making the formation of such teams easier by the day. However, organitizations need to be aware that there can be drawbacks to implementing the use of virtual teams. The pros and cons should be weighed when deciding on which course to take.

Advantages and Disadvantages of Virtual Teams

Advantages

People that wouldn’t normally be able to work together because of distance can collaborate on projects.

Employees are able to work at a variety of locations. They aren’t bound to a single spot in order to be able to work effectively.

There are no long trips or commutes for team members to be able to meet.

There is the opportunity to add diversity to teams. New technologies can be explored and incorporated into the

workplace.

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Disadvantages

Technology must be relied upon to bridge geographical distances between team members. This requires all team members to have access to the same technological resources.

If employees are far enough apart, differing time zones can make coordinating schedules for real time meetings tricky.

When employees are working for different branches of an organization’s global operations, differences in culture, language and methods of working can make collaborating more difficult.

Alternative Offices

Types of Alternative Offices

Advances in technology have made alternative office arrangements more prevalent. Some of the most common arrangements are:

Telecommuting – This is one of the most popular alternative office arrangements today. Instead of coming into work, employees will work from home one or more days a week, using equipment such as computers and fax machines to communicate with others at the office.

Mobile Office – Similar to telecommuting, employees do not come into an actual office space. However, employees in a mobile office often travel extensively, so they take their work with them, using equipment such as a laptop to communicate with others and do work in diverse locations (e.g. a car, airport, hotel room, etc.)

Office “Hoteling” – In organizations where telecommuting is popular, office “hoteling” is one method of saving the organization money. Since telecommuters have reduced needs for office space, in a hoteling arrangement, several workers will share the same workspace, reserving it in advance before coming in to the office to work, similar to how one would reserve a hotel room.

Satellite Office – This type of arrangement usually occurs when businesses are located in big cities. Rather than force their employees to undergo hour-long commutes every day, satellite offices can be set up in the suburbs, closer to where employees live. Employees will generally work in a satellite office several days a week, and go into the main office the other days.

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Advantages and Disadvantages of Alternative Offices

Advantages

Employees have more flexibility about when and where to work.

There is less time spent commuting to the office. The flexibility in work schedules makes it easier to balance

home and work life. Organizations spend less money on office space. Employees feel more loyal to the organization because of the

freedom they are given.

Disadvantages

Employees have less face-to-face interaction with coworkers and supervisors, which can lead to feelings of isolation.

Managers may have trouble trusting employees with whom they don’t regularly interact. (Regular trips into the office and consistent communication can help prevent this problem.)

Communication breakdown can occur, especially regarding information that is typically spread by word of mouth.

When telecommuting, employees lack the structure of a standard workday. If the employees are not highly self-motivated, productivity can suffer.

Communication Amongst Virtual Team Members

Communication Technology

The biggest aid to communication in virtual teams is technology. There are a variety of technologies that can be used when working on a virtual team, such as:

Video conferencing – This is a technology that allows team members to see and hear each other at the same time. It can be used between two people or multiple people, and some systems also provide an interface for written information. Video conferencing is a good option when team members feel the need for a personal connection, or if the information being discussed is emotional or ambiguous in nature.

Conference calling – This is a system where several people can participate in a telephone conversation at the same time. While it doesn’t allow for team members to observe body language, conference calling is widely available on most telephones, is cost effective, and relatively easy to use, which makes it a popular option for virtual teams.

Electronic white boards – This technology allows team members to draw diagrams and write messages in real time, with the information simultaneously being transmitted to the other team members’ computers. This can be a useful addition to conference calling or video conferencing.

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Groupware – This is a type of software that allows different members of a group to edit a document and share information at the same time. It requires that every team member have access to the same program, but it can help cut down on the time it takes for everyone to review a document.

E-mail – E-mail is readily available, easy to store, and simple to use, making it by far the most common method of exchanging information between team members. E-mail is often used to send large amounts of data to multiple people at the same time. However, there is a time lapse between an e-mail being sent and a person reading it. This should be taken into consideration when sending time-sensitive materials.

Team web pages – Team members can have a shared web page where everyone is allowed to post information and messages for the entire team to view. If this technology is used, it is important to have a team member assigned to maintain the site so that it does not become overly unorganized and unusable.

Chat rooms – It is possible to set up a chat room that is very similar to those you find on the internet. Team members can meet at a designated location on the web, or they can use the chat room function of any of the variety of messenger programs available. Chat rooms will allow team members to converse in real time, but it is important to note that many of the subtleties of communication are lost in a chat room. There is no tone of voice or body language to help you interpret a message, which makes it much easier to misunderstand what another person is saying. It is important to take care before sending a message, double-checking to make sure that nothing can be easily misinterpreted.

Others: ________________________________________________________________________________________________________________________________________________________________________

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Barriers to Communication

The following items may present a communication barrier when working on a virtual team:

Cultural differences – Team members may differ on a wide variety of cultural issues. Not only can there be differences in terms of a person’s national culture (i.e. the culture of the country they were born in), people also vary in terms of organizational culture (i.e. the work rules and habits specific to a certain work location) and functional culture (i.e. the common backgrounds, interests and goals of people with the same functional expertise). All of these cultural differences must be taken into account when communicating with team members.

Language barriers –Team members may not all share the same native language. Even with bilingual or multilingual people, there is the chance that information can become distorted because of little errors. If this is the case, remember to ask for clarification whenever possible, and try to ignore small things like mistakes in grammar and spelling.

Differing business practices – Organizations in different locations may not have the same work hours or holidays. This can cause difficulties when trying to meet as a team. It is often helpful to lay out a schedule of when everyone is free (adjusting for time zone differences if need be) in order to facilitate setting meeting times.

Lack of trust – Teammates who don’t know each other well will have difficulty in trusting each other at first. Having very little face-to-face interaction makes this trust hard to build, and team members who don’t trust each other may have trouble openly communicating. Being honest, sharing important information, considering the needs of others and asking for the ideas and suggestions from your team members are all good ways to help establish trust and good working relationships.

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Supplemental Materials

Job Aid: Change Process Questions

The following questions relate to each of the seven components of the change process. When applying the process to a change situation that you face, you can use these questions to analyze the situation and develop strategies for effecting change.

Leadership Mindset About the Change

What must happen for this change to be successful? How should this be communicated to employees or other stakeholders?

What are the opportunities associated with the change? How can the fear be taken out of the change?

How can you demonstrate continuous support for and sponsorship of this change initiative?

In what specific ways can you be a catalyst rather than a controller of the change?

What challenges might you encounter in balancing the needs of the organization and those of individuals? How can you manage these challenges?

How can you “walk the talk” during this change initiative? What pitfalls will you need to avoid?

Purpose of the Change

What is the rationale for this change? That is, what are we trying to accomplish with the change? How should this be communicated to employees or other stakeholders?

How can the change initiative be linked to the organization’s or the community’s strategy, mission, and environment?

What mechanisms can be used to keep lines of communication with employees and/or stakeholders open and to inform them of progress being made?

Change Process

What is the vision for this change—i.e., what would you like to see happen as a result of this change? What do you see as the benefits of the change?

What are the major components of a plan for this change? How can you keep employees and/or stakeholders involved

in the process? What potential problems and opportunities are associated

with this change? What existing systems might need to be modified to

reinforce needed changes? What mechanisms should be put in place for monitoring

and evaluating the implementation of the change?

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Predictable Forces Set in Motion

What potential resistance points might you encounter? How can you manage this resistance? How might production be impacted and how can you manage

this?

Structures for Managing the Change

What resources will be needed to successfully implement this change? How can you secure these resources?

What interim systems might you need to implement? How should they be implemented?

What formal and informal mechanisms can you use to communicate the change?

How to Sustain the Energy for Change over Time

How can you sustain energy and commitment to this change over time?

Whose support will be critical to the successful implementation of this change? How will you gain their support?

What might employees and/or stakeholders need to accept and support this change?

What small successes can you celebrate? How?

Personal Response to Change

What reactions to this change initiative do you anticipate from employees and/or stakeholders?

What pitfalls should you avoid when responding to these reactions?

What mechanisms can you use to solicit employee and/or stakeholder concerns? How can you demonstrate that you are listening to their concerns about the change?

In what ways can you monitor their comments and feedback?

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Recommended Readings and Resources

Bridges, W. (1991). Managing Transitions: Making the Most of Change. Reading, MA: Addison-Wesley.

Cashman, K. (1998). Leadership from the Inside Out: Becoming a Leader for Life. Provo, UT: Executive Excellence.

Hamilton-Wright, K. J. (2004). Business Dining Etiquette. Black Enterprise, 35(1), 124.

Holman, P., & Devane, T. (Eds.). (1999). The Change Handbook (First ed.). San Francisco: Berrett-Koehler Publishers, Inc.

King, J. (2004). Raytheon Gets Tracking. Computerworld, 38(29), 23.

Kouszes, J. M., & Poser, B. Z. (1993). Credibility; How Leaders Gain and Lose it, Why People Demand It. San Francisco: Jossey Bass.

Reina, D & M. Reina. (1999). Trust & Betrayal in the Workplace. San Francisco: Berrett-Koehler Publishers, Inc.

Sookman, C. (2004). Building Your Virtual Team. Network World, 21(25), 91.

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ReferenceLibrary

For More Information

www.change-management.org

leadership.wharton.upenn.edu/welcome/index.shtml

www.bpubs.com/Management_Science/Change_Management

www.business.com/directory/management/change_management

http://cbae.nmsu.edu/~dboje/jocm.html (Journal of Organizational Change Management)

http://culturegrams.com/

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Glossary

Change - to make different in some particular

Cross-functional teams - made up of employees from different functional areas and/or departments in an organization

Etiquette - rules that govern social behavior, and they include socially acceptable rules of behavior to be used by all members of a given society on every social interaction,

Trust - a relationship based on mutual confidence that both parties will so what they say; communicate honestly; respect one another’s knowledge, skills, and abilities; maintain confidentiality.

Virtual teams - the team members are separated by long distances

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Summary &Transition

Summary and Transition

In this module you learned about the global environment of business. To function in this environment, you need the skills to work in with individuals from diverse backgrounds and cultures.

Teamwork, especially working with individuals from different cultures was emphasized in this module. Because the global nature of the world economy, virtual teams have become a necessity to many businesses. You learned how to effectively communicate with others as well as the skills to build and maintain trust with your colleagues.

Also addressed was business etiquette. Well-honed business skills are necessary to succeed, however, if these skills are not teamed with etiquette, your image can suffer as well as you ability to succeed.

Well -developed communication skills are key to becoming an effective leader. In this module, organization change was examined and the importance of a good leader to guide organizations through the uncertainty of change.

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