This is a TWO part assignment. Each part has its own set of instructions so please read carefully.
Part One (John Mackey, Cofounder and Co-CEO of Whole Market, Believes in "Conscious
Capitalism" (pp. 29 & 30)
This assignment must be done in APA format. This part of the assignment has five questions to
be answered with a minimum word count of 1500 for the overall assignment (without references
included). A minimum of four (4) references along with in-text citations is required for this
assignment.
Please note: The word count for the overall assignment is 1500 words. The required reference
count for the overall assignment is 4 references. Also, although this assignment is in APA
format; please keep the question and answer line up.
For example: Question: XYZ
Answer:XYZ
Reference: XYZ
1. What role, if any, does McGregor's Theory Y play at Whole Foods? Explain.
2. How does Whole Foods build human and social capital?
3. Where would you locate Whole Foods on Carroll's global corporate social responsibility
pyramid in Figure 1-3? Explain.
4. Which of the seven moral principles in Table 1-4 appear to be in force at Whole Foods?
Explain.
5. What factors would be an appeal to working at Whole Foods?
Part Two
Instructions: Write a 100 word response to each of the post. There are two of them. No
references needed.
1. Organizational behavior can be defined as the ability to understand and manage an array
of individuals at work (Kreitner & Kinicki, 2013). The ability to understand
organizational behavior can bring cohesiveness to your business. Supervisors can tailor
their environment in a way where employees are happier, more productive, and more
efficient at work. Being able to have a more cohesive business will not only make
employees happy, but it will have a healthy impact on customers. Additionally,
organizational behavior can benefit your personal life, as well. Furthermore, this can have
huge impacts on your professional life. All in all, learning the many different aspects of
organizational behavior can be a huge investment towards your business and employees.
2. The value of studying organizational behavior is knowing why people do what they do at
their job. (Kreitner, Kinicki, 2013) Understanding organizational behavior can help with
the understanding of the way a person performs, the outcome of task and projects and be
understanding of how the person came to their conclusion. Things like diversity, values,
and stereotypes play a factor in organizational behavior. (Kreitner, Kinicki, 2013) An
organization's values can impact how the employee sees the company. (Junhui, 2012)
With values playing an important role in an employee’s view, this can influence an
employee’s performance. Things like Theory X and Theory Y can also affect how an
employee views their job. Employees being treated as Theory X, like they are lazy, and
they do not like their job, will not receive higher performance, quality and value, like a
Theory Y employee who is treated the complete opposite from Theory X. (Kreitner,
Kinicki, 2013) To go further, diversity also plays a big role in organizational behavior.
When integrating diversity within a team, diversity can positively influence the
collectiveness of a team. (Young-Joo, Jung-Hoon, Kyung Sun, 2017) Diversity can be a
positive thing, because, although, diversity can mean conflict between individuals,
diversity can also offer knowledge and information from a different viewpoint. (Kreitner,
Kinicki, 2013) So, the study of organizational behavior can be valuable by revealing the
psychology of how and why a person does their job the way they do, and how a company
can use this information for a positive outcome.
Organizational
Behavior
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tenth
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edition
Robert Kreitner
Angelo Kinicki
Both of Arizona State University
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ORGANIZATIONAL BEHAVIOR
Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc.,
1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2013, 2010, 2008, 2007,
2004, 2001, 1998, 1994, 1992, 1989 by The McGraw-Hill Companies, Inc. All rights reserved.
Printed in the United States of America. No part of this publication may be reproduced or
distributed in any form or by any means, or stored in a database or retrieval system, without
the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to,
in any network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers
outside the United States.
H
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 DOW/DOW 1 0 9 8 7 6 5 4 3 2
ISBN 978-0-07-802936-3
MHID 0-07-802936-8
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,
Vice president and editor-in-chief: Brent Gordon
Editorial director: Paul Ducham
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Development editor: Kelly I. Pekelder
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Cover and interior design: Cara Hawthorne, cara david DESIGN 3
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Printer: R. R. Donnelley
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Library of Congress Cataloging-in-Publication3Data
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Kreitner, Robert.
Organizational behavior / Robert Kreitner, Angelo Kinicki. -- 10th
U ed.
p. cm.
Includes index.
ISBN-13: 978-0-07-802936-3 (alk. paper)
ISBN-10: 0-07-802936-8 (alk. paper)
1. Organizational behavior. I. Kinicki, Angelo. II. Title.
HD58.7.K766 2013
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2011043477
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About the Authors
Robert (Bob) Kreitner, PhD, is professor emeritus of management at Arizona State University and a
member of ASU’s W P Carey School of Business Faculty Hall
of Fame. Prior to joining ASU in 1975, Bob taught at Western
Illinois University. He also taught organizational behavior at
Thunderbird. Bob has addressed a diverse array of audiences
worldwide on management topics. He has authored articles
for journals such as Organizational Dynamics, Business Horizons, Educational and Psychological Measurement, Journal of
Organizational Behavior Management, and Journal of Business
Ethics. He also is coauthor (with Fred Luthans) of the awardwinning book Organizational Behavior Modification and Beyond:
H An Operant and Social Learning Approach and coauthor (with
Carlene Cassidy) of Management, 12th edition, an introductory
I management text. His textbooks collectively have been through
editions.
G 31 Among
Bob and his wife Margaret atop 13,140-foot Boundary Peak
his consulting and executive development clients
(Nevada’s highest point).
G have been American Express, SABRE Computer Services,
S Honeywell, Motorola, Amdahl, the Hopi Indian Tribe, State Farm
Insurance, Goodyear Aerospace, Doubletree Hotels, Bank One–Arizona, Nazarene School of Large Church Management, Ford
Motor Company, US Steel, and Allied-Signal. In 1981–82 he ,served as chairman of the Academy of Management’s Management
Education and Development Division.
Bob was born in Buffalo, New York. After a four-year enlistment in the US Coast Guard, including service on the icebreaker
EASTWIND in Antarctica, Bob attended the University of Nebraska–Omaha
on a football scholarship. Bob also holds an MBA from
S
the University of Nebraska–Omaha and a PhD from the University of Nebraska–Lincoln. While working on his PhD in business at
H
Nebraska, he spent six months teaching management courses for the university in Micronesia. In 1996, Bob taught two courses
in Albania’s first-ever MBA program. He taught a summer leadership
A program in Switzerland from 1995 to 1998. Bob and his wife
Margaret, a retired Intel Corp manager, live in Phoenix with their two cats Yahoo and Sweetie Pie. They enjoy world travel, lots of
N
hiking, and fishing in Alaska.
I
C
Angelo Kinicki, DBA, is a professor, author,
Q and consultant. He is a professor of management and has held
U the Weatherup/Overby Chair in Leadership since 2005. He also
is a Dean’s Council of 100 Distinguished Scholar at the W P
A Carey School of Business. He joined the faculty in 1982, the
year he received his doctorate in business administration from
Kent State University. His primary research interests include
3 leadership, organizational culture, organizational change, and
1 multilevel issues associated with predicting organizational effectiveness. Angelo has published more than 90 articles in a
5 variety of academic journals and is coauthor of seven textbooks
3 (25 including revisions) that are used by hundreds of universities around the world. Several of his books have been transB lated into multiple languages.
Angelo is an award-winning researcher and teacher. He has
U
received several awards, including a best research paper award
Angelo with Na’vi at the Colorado Wolf and Wildlife center.
from the Organizational Behavior (OB) division of the Academy
Na’vi is a 40-pound Black Phase Timber Wolf.
of Management, the All Time Best Reviewer Award (1996–99)
and the Excellent Reviewer Award (1997–98) from the Academy of Management Journal, and six teaching awards from Arizona State University [Outstanding Teaching Award—MBA and
Master’s Program, John W Teets Outstanding Graduate Teacher Award (twice), Outstanding Undergraduate Teaching Excellence
Award, Outstanding Graduate Teaching Excellence Award, and Outstanding Executive Development Teaching Excellence Award].
v
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vi
About the Authors
Angelo also has served on the editorial review boards for the Academy of Management Journal, Personnel Psychology, the Journal
of Management, and the Journal of Vocational Behavior. Angelo has been an active member of the Academy of Management,
including service as a representative at large for the Organizational Behavior division, member of the Best Paper Award committee
for both the OB and Human Resources (HR) divisions, chair of the committee to select the best publication in the Academy of
Management Journal, and program committee reviewer for the OB and HR divisions.
Angelo also is a busy international consultant and is a principal at Kinicki and Associates Inc, a management consulting firm that
works with top management teams to create organizational change aimed at increasing organizational effectiveness and profitability. He has worked with many Fortune 500 firms as well as numerous entrepreneurial organizations in diverse industries. His expertise includes facilitating strategic/operational planning sessions, diagnosing the causes of organizational and work-unit problems,
conducting organizational culture interventions, implementing performance management systems, designing and implementing
performance appraisal systems, developing and administering surveys to assess employee attitudes, and leading management/
executive education programs. He developed a 360-degree leadership feedback instrument called the Performance Management
Leadership Survey (PMLS) that is used by companies throughout the United States and Europe. The survey is used to assess an
individual’s leadership style and to coach individuals interested in developing their leadership skills.
Angelo and his wife Joyce have enjoyed living in the beautiful Arizona
H desert for 30 years and are natives of Cleveland, Ohio.
They enjoy traveling, golfing, hiking, spending time in the White Mountains, and spoiling Nala, their golden retriever.
I
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H
I
With love to myG precious little family, Margaret
G
and our cats Yahoo
and Sweetie Pie.
S
,
—B.K.
S
With respect and
H admiration to Dr William
A has reduced the carbon
Spears. His work
N schools, hospitals, and
footprint of many
I
churches. He also
is a role model for educators
C
and entrepreneurs
everywhere. I am proud to
Q
be his friend. U
A
—A.K.
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par t one
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The World of Organizational
Behavior
1
Organizational SBehavior: The Quest for PeopleH
Centered Organizations
and Ethical Conduct
2
Managing Diversity:
Releasing Every Employee’s
N
Potential
I
3
Organizational CCulture, Socialization, and Mentoring
4
International OB:
U Managing across Cultures
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1
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U
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chapter 1
H
Organizational Behavior:
The Quest
I
for People-CenteredGG Organizations
S
and Ethical Conduct,
S
H
Learning Objectives
A
When you finish studying the material in this chapter,
N you should be able to:
I
LO.1
Define the term organizational behavior, and contrast McGregor’s Theory X and
C
Theory Y assumptions about employees.
Q
LO.2
Identify the four principles of total quality management (TQM).
U
A the Net Generation.
LO.3
Define the term e-business, and describe
LO.4
Contrast human and social capital, and explain why we need to build both.
LO.5
Define the term management, and identify
1 at least five of the eleven managerial skills in
Wilson’s profile of effective managers.
LO.6
LO.7
3
5
Characterize 21st-century managers. 3
B
Describe Carroll’s global corporate social responsibility pyramid, and discuss the
U
problem of moral erosion.
LO.8
Identify four of the seven general ethical principles, and explain how to improve an
organization’s ethical climate.
LO.9
Describe the sources of organizational behavior research evidence.
kre29368_ch01_001-031.indd 2
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Why Is Zappos.com So Good at Zapping the Competition?
There’s a good chance you have never heard of TonyH
Hsieh (pronounced “Shay”), CEO of Zappos.com. But if
you are among the legions of satisfied and loyal custom-I
ers of the online retailer of footwear and other goods, youG
owe him an enthusiastic high five. Initially as an investor/
G
adviser and eventually CEO, Hsieh guided Zappos from
a struggling Internet start-up to a merger with Amazon.S
com in 2009 for $1.2 billion. Along the way, he helped,
Zappos develop a zany corporate culture of close-knit
employees obsessed with great 24/7 customer service.
“Customer Service Isn’t Just a Department!” trumpets theS
firm’s website. When the Amazon deal was announced,H
Hsieh told an all-hands meeting of employees that each
A
of them would receive a free Kindle e-book reader and a
retention bonus equal to 40% of their annual salary. MostN
importantly, he vowed to maintain the company’s cher-I
ished culture. The following excerpt from Hsieh’s new
C
book, Delivering Happiness: A Path to Profits, Passion,
and Purpose, highlights how Zappos.com came to putQ
people—customers and employees—first.
U
I e-mailed the entire company several times and got a
lot of suggestions and feedback on which core values
were the most important to our employees.
I was surprised the process took so long, but we
wanted to make sure not to rush through the process
because whatever core values we eventually came
kre29368_ch01_001-031.indd 3
A
3
1
5
3
B
U
up with, we wanted to be ones that we could truly
embrace. . . .
We eventually came up with our final list of ten core
values [from an initial list of 37], which we still use today:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Deliver WOW Through Service
Embrace and Drive Change
Create Fun and a Little Weirdness
Be Adventurous, Creative, and Open-Minded
Pursue Growth and Learning
Build Open and Honest Relationships with Communication
Build a Positive Team and Family Spirit
Do More with Less
Be Passionate and Determined
Be Humble. . . .
Be Humble is probably the core value that ends up
affecting our hiring decisions the most. There are a lot
of experienced, smart and talented people we interview
that we know can make an immediate impact on our top
or bottom line. But a lot of them are also really egotistical, so we end up not hiring them.
Our philosophy at Zappos is that we’re willing to
make short-term sacrifices (including lost revenue or
profits) if we believe that the long-term benefits are worth
it. Protecting the company culture and sticking to core
values is a long-term benefit.1
08/12/11 6:19 PM
4
Part One
The World of Organizational Behavior
Tony Hsieh does more than just talk about the importance of his company’s people; he trusts, empowers, and listens to them. No surprise then that
Zappos.com ranked number 6 on Fortune’s 2011 “100
Best Companies to Work For” list.2 Hsieh helped
create what Stanford University’s Jeffrey Pfeffer
calls a “people-centered” organization. Research evidence from companies in both the United States and
Germany shows the following seven people-centered
practices to be strongly associated with much higher
profits and significantly lower employee turnover:
1. Job security (to eliminate fear of layoffs).
H2. Careful hiring (emphasizing a good fit with the
Zappos’s CEO Tony Hsieh likes to mix hard work and fun at
company culture).
the online retailer.
I 3. Power to the people (via decentralization and
G self-managed teams).
4. Generous pay for performance.
G
5. Lots of training.
S
6. Less emphasis on status (to build a “we” feeling).
,
7. Trust building (through the sharing of critical information).3
Importantly, these factors are a package deal, meaning they need to be inS
stalled in a coordinated and systematic
manner—not in bits and pieces.
According to Pfeffer, only H
12% of today’s organizations have the systematic
approaches and persistence to qualify as true people-centered organizations, thus
A
giving them a competitive advantage.4 To us, an 88% shortfall in the quest for
people-centered organizations N
represents a tragic waste of human and economic
potential. Pfeffer recently couched
I his call for greater people-centeredness in the
“green management” term sustainability: “Just as there is concern for protecting
Ca similar level of concern for protecting human renatural resources, there could be
sources.”5 There are profound ethical
Q implications as well, especially during the recent deep recession with millions of layoffs. At people-centered organizations (see
Real World/Real People for an U
inspiring example), layoffs are a very last resort, not
a knee-jerk first response to badAnews. Both practical experience and research tell us
that layoffs hurt everyone, including the “survivors” who keep their jobs. A recent
study of 318 companies led to this conclusion: “Three-fourths of 4,172 workers
who have kept their jobs say their
3 productivity has dropped since their organizations let people go.”6 Of course, layoffs are sometimes unavoidable. But imagina1 can make layoffs a last resort with tactics such
tive people-centered organizations
as across-the-board pay cuts and/or
5 reduced hours and voluntary unpaid leaves of
absence. Additionally, consider these unique people-centered tactics:
3
B
Example. Vermont’s Rhino Foods, which makes the cookie dough for Ben & Jerry’s
U
ice cream, recently sent 15 factory workers to nearby lip balm manufacturer Autumn
Harp for a week to help it handle a holiday rush. The employees were paid by Rhino,
which then invoiced its neighbor for the hours worked. President Ted Castle is looking
to adopt a similar approach with salaried managers, too. “It’s a lot easier to just do the
layoff,” says Castle. “But in the long term, it’s not easier for the business.”
Matt Cooper, vice-president of Larkspur (Calif.) recruiting firm Accolo, asked
employees to take five days of unpaid leave this quarter but won’t dock paychecks
until March. If big deals come through, he’ll lift the pay cut.7
Each of us needs to accept the challenge to do a better job of creating and maintaining people-centered organizations, whatever our role(s) in society—employer/
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Chapter One
Organizational Behavior
5
real WORLD // real PEOPLE: ethics
Lola Gonzalez Laid Herself Off First!
Like countless small-business owners, Lola Gonzalez agonizingly resolved to trim her firm’s nine-person staff when
the economic recovery began to sputter . . . [in early 2010].
Unlike other entrepreneurs, she picked an unlikely
employee to lay off: herself.
The owner of Accurate Background Check in Ocala,
Fla., says she couldn’t bear to fire employees who have
worked there for years. So she stopped paying herself
a six-figure salary and got a job for less than half the pay
H
as a social worker.
I
“How could you let somebody go that you trusted and
that trusted you?” says Gonzalez, 51, who’s still a social
G
worker. . . .
Employees initially froze in fear [during her announcement], then erupted in laughter. Until they realized she
was serious. . . .
Besides putting in a 40-hour week, . . . Gonzalez gets
twice-weekly phone updates on goings-on at her business and still does certain background checks herself
without getting paid.
What are the broader, long-term benefits of this
people-centered practice?
SOURCE: Excerpted from P Davidson, “How a Boss Saved Jobs:
She Laid Herself Off,” USA Today, November 26, 2010, p 1B.
G
S
,
student,
entrepreneur, employee, manager, stockholder,
teacher, voter, elected
official, social/political activist. Toward that end, the mission of this book is to
help increase the number of people-centered and ethically managed organizations
around the world to improve the general quality of S
life.8
The purpose of this first chapter is to define organizational
behavior (OB);
H
examine its contemporary relevance; explore its historical, managerial, and ethical
A
contexts; and introduce a topical road map for the balance
of this book.
N
Welcome to the World ofIC OB
Organizational behavior deals with how people act and react in organizations of
Q your life on a regular basis;
all kinds. Think of the many organizations that touch
organizations that employ, educate, connect, inform,
U feed, heal, protect, and entertain you. Cradle to grave, we interface with organizations at every turn. According to Chester I Barnard’s classic definition, anAorganization is “a system of
consciously coordinated activities or forces of two or more persons.”9 Organizations are a social invention helping us to achieve things collectively that we could
3 our reach. Consider the
not achieve alone. For better or for worse, they extend
inspiring example of the World Health Organization
1 (WHO):
TO THE POINT
Why is it important to
study organizational
behavior, regardless of
one’s organizational level
or specialty?
5
Example. In 1967, 10 to 15 million people around the3globe were struck annually by
smallpox. That year, the World Health Organization set up its smallpox-eradication
B the disease. In 1988, 350,000
unit. In 13 years it was able to declare the world free of
people were afflicted by polio when the WHO set U
up a similar eradication unit.
Since then it has spent $3 billion and received the help of 20 million volunteers from
around the world. The result: in 2003 there were only 784 reported cases of polio.10
On the other hand, organizations such as al-Qaeda kill and terrorize, and others such as failed banks and businesses squander our resources. Organizations are
organization System of consciously
coordinated activities of two or more
people.
kre29368_ch01_001-031.indd 5
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6
Part One
The World of Organizational Behavior
the chessboard on which the game of life is played. To know more about organizational behavior—life within organizations—is to know more about the nature,
possibilities, and rules of that game.
LO.1
Organizational Behavior: An Interdisciplinary Field
Organizational behavior, commonly referred to as OB, is an interdisciplinary field
dedicated to better understanding and managing people at work. By definition,
organizational behavior is both research and application oriented. Three basic
levels of analysis in OB are individual, group, and organizational. OB draws
upon a diverse array of disciplines, including psychology, management, sociology,
organization theory, social psychology, statistics, anthropology, general systems
theory, economics, information technology, political science, vocational counseling, human stress management, psychometrics, ergonomics, decision theory, and
H
ethics.11 This rich heritage has spawned many competing perspectives and theories
about human work behavior. IBy 2003, one researcher had identified 73 distinct
theories about behavior withinG
the field of OB.12
G
S
Through the years we (and our colleagues) have fielded some frequently asked
,
questions (FAQs) from our students
about our field. Here are the most common
Some FAQs about Studying OB
ones, along with our answers.
If you S
thoughtfully study this book, you will learn more
about yourself, how to interactHeffectively with others, and how to thrive (not just
survive) in organizations. Lots of insights about your own personality, emotions,
A needs, and goals are available in Part 2. Relavalues, job satisfaction, perceptions,
tive to your interpersonal effectiveness,
you will learn about being a team player,
N
building trust, managing conflict, negotiating, communicating, and influencing
I
and leading others. We conclude virtually every major topic with practical howto-do-it instructions. The ideaCis to build your skills in areas such as self-management, making ethical decisions, avoiding groupthink, listening, coping with
Q
organizational politics, handling change, and managing stress. Respected OB
scholar Edward E Lawler III U
created the “virtuous career spiral” in Figure 1–1
to illustrate how OB-related skills
A point you toward career success. “It shows that
increased skills and performance can lead to better jobs and higher rewards.”13
Why Study OB?
If I’m an Accounting (or
3 Other Technical) Major, Why Should I
Study OB? Many students in technical fields such as accounting, finance,
1 consider OB to be a “soft” discipline with little
computer science, and engineering
or no relevance. You may indeed
5 start out in a narrow specialty, but eventually your
hard-won success will catch up with you and you will be tapped for some sort of su3
pervisory or leadership position. Your so-called soft people skills will make or break
your career at that point. Also,B
in today’s team-oriented and globalized workplace,
your teamwork, cross-cultural, communication, conflict handling, and negotiation
U
skills and your powers of persuasion will be needed early and often. Jack Welch, the
legendary CEO of General Electric, and Suzy Welch, the former editor of Harvard
Business Review, offered this answer to a business school professor’s question about
how best to prepare students for today’s global business environment:
Example. We’d make the case that the nitty-gritty of managing people should rank
higher in the educational hierarchy. In the past two years we’ve visited 35 B-schools
around the world and have been repeatedly surprised by how little classroom attention is paid to hiring, motivating, team-building, and firing. Instead, B-schools
seem far more invested in teaching brainiac concepts—disruptive technologies,
kre29368_ch01_001-031.indd 6
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Chapter One
figure 1–1
Organizational Behavior
7
OB-Related Skills Are the Ticket to Ride the Virtuous
Career Spiral
Job
s
ard
w
Re
Rew
ard
Motivation and Satisfaction
s
Pe
rfo
rm
H
I
G
Perf
orma
G
nc e
Skills
Job
S
SOURCE: Edward E Lawler III, Treat People Right! How Organizations and
, Individuals Can Propel Each Other
ance
Skills
into a Virtual Spiral of Success, Jossey-Bass, 2003, p 21. Reprinted with permission of John Wiley & Sons, Inc.
S
complexity modeling, and the like. Those may be useful, particularly if you join a
consulting firm, but real managers need to know howHto get the most out of people.
We hope you have the clout to make sure people management is front and
A
center at your university. If you do, you’ll launch your students’ careers with a real
14
N
head start.
I
C is an academic designation.
Can I Get a Job in OB? Organizational behavior
With the exception of teaching/research positions, OB
Q is not an everyday job category such as accounting, marketing, information technology, or finance. Students
U per se. This reality in no
of OB typically do not get jobs in organizational behavior,
way demeans OB or lessens its importance in effective
Aorganizational management.
OB is a horizontal discipline cutting across virtually every job category, business
function, and professional specialty. Anyone who plans to make a living in a large
3 organizational behavior.
or small, public or private, organization needs to study
1
A Historical Perspective 5of OB
3 helps in studying organiA historical perspective of the study of people at work
zational behavior. According to a management history
B expert, this is important
because:
U
Example. Historical perspective is the study of a subject in light of its earliest phases
and subsequent evolution. Historical perspective differs from history in that the object of historical perspective is to sharpen one’s vision of the present, not the past.15
organizational behavior Interdisciplinary field dedicated to better
kre29368_ch01_001-031.indd 7
TO THE POINT
What lessons from
McGregor and Deming
can help managers
build human and social
capital?
understanding and managing
people at work.
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Part One
The World of Organizational Behavior
In other words, we can better understand where the field of OB is today and
where it appears to be headed by appreciating where it has been and how it is being
redirected.16 Let us examine four significant landmarks in the understanding and
management of people in the workplace.
1.
2.
3.
4.
The human relations movement.
The quality movement.
The Internet and social media revolution.
The age of human and social capital.
The Human Relations Movement
Go to
www.mcgrawhillconnect.com
for an interactive exercise
to test your knowledge on
the history of organizational
behavior.
A unique combination of factors during the 1930s fostered the human relations
H
movement. First, following legalization
of union–management collective bargaining in the United States in 1935,
management
began looking for new ways of
I
handling employees. Second, behavioral scientists conducting on-the-job research
G to the “human” factor. Managers who had lost
started calling for more attention
the battle to keep unions out G
of their factories heeded the call for better human
relations and improved working conditions. One such study, conducted at Western
S plant, was a prime stimulus for the human
Electric’s Chicago-area Hawthorne
relations movement. Ironically,, many of the Hawthorne findings have turned out
to be more myth than fact.
The Hawthorne LegacyS Interviews conducted decades later with three
subjects of the Hawthorne studies and reanalysis of the original data with
H
modern statistical techniques do not support initial conclusions about the posiA
tive effect of supportive supervision.
Specifically, money, fear of unemployment during the Great Depression,
managerial
discipline, and high-quality raw
N
materials—not supportive supervision—turned out to be responsible for high
output in the relay assembly Itest room experiments.17 Nonetheless, the human
relations movement gathered C
momentum through the 1950s, as academics and
managers alike made stirring claims about the powerful effect that individual
Q and group dynamics apparently had on job
needs, supportive supervision,
performance.
U
A
The Writings of Mayo and Follett Essential to
These relay assembly test room employees in the
classic Hawthorne Western Electric studies turned in
record performance. Why? No one knows for certain,
and debate continues today. Supportive supervision
was long believed to be the key factor. Whatever the
reason, Hawthorne gave the budding human relations
movement needed research credibility.
kre29368_ch01_001-031.indd 8
the human relations movement were the writings of Elton
Mayo 3
and Mary Parker Follett. Australian-born Mayo,
who headed the Harvard researchers at Hawthorne, ad1
vised managers
to attend to employees’ emotional needs in
his 1933
classic
The
Human Problems of an Industrial Civil5
ization. Follett was a true pioneer, not only as a woman
3
management
consultant in the male-dominated industrial
world of
the
1920s,
but also as a writer who saw employees
B
as complex combinations of attitudes, beliefs, and needs.
U Follett was way ahead of her time in telling
Mary Parker
managers to motivate job performance instead of merely
demanding it, a “pull” rather than “push” strategy. She
also built a logical bridge between political democracy and
a cooperative spirit in the workplace.18
McGregor’s Theory Y In 1960, Douglas McGregor
wrote a book entitled The Human Side of Enterprise,
which has become an important philosophical base for the
modern view of people at work.19 Drawing on his experience as a management consultant, McGregor formulated
08/12/11 6:19 PM
Chapter One
table 1–1
Organizational Behavior
9
McGregor’s Theory X and Theory Y
OUTDATED (THEORY X) ASSUMPTIONS
ABOUT PEOPLE AT WORK
MODERN (THEORY Y) ASSUMPTIONS
ABOUT PEOPLE AT WORK
1. Most people dislike work; they avoid
it when they can.
1. Work is a natural activity, like play
or rest.
2. Most people must be coerced and
threatened with punishment before
they will work. People require close
direction when they are working.
2. People are capable of selfdirection and self-control if they are
committed to objectives.
3. Most people actually prefer to be
directed. They tend to avoid responsibility and exhibit little ambition.
They are interested only in security.
3. People generally become committed
to organizational
objectives if they
H
are rewarded for doing so.
4.
5.
I
G employee can learn to
The typical
acceptG
and seek responsibility.
The typical
S member of the general
population has imagination,
, and creativity.
ingenuity,
SOURCE: From D McGregor, The Human Side of Enterprise, McGraw-Hill, 1960, Ch 4. Copyright © 2008
The McGraw-Hill Companies. Reprinted with permission.
S
H
A
two sharply contrasting sets of assumptions about human
nature (see Table 1–1).
His Theory X assumptions were pessimistic and negative
and,
according to McN
Gregor’s interpretation, typical of how managers traditionally perceived employI
ees. To help managers break with this negative tradition,
McGregor formulated
his Theory Y, a modern and positive set of assumptions
about
people. McGregor
C
believed managers could accomplish more through others by viewing them as selfQ
energized, committed, responsible, and creative beings.
Unfortunately, according to ongoing research
U on employee engagement,
McGregor’s Theory Y is still a distant vision in the American workplace:
A
Example. The August 2009 Gallup Employee Engagement Index reported that
3 49 percent are not engaged,
only 33 percent of workers are engaged in their jobs,
and 18 percent are actively disengaged. The Gallup
1 Organization defines the
categories as follows:
Engaged employees work with passion and feel a5profound connection to their
company. They drive innovation and move the organization
forward.
3
Non-engaged employees have essentially “checked out.” They sleepwalk
B
through workdays. They put in time but don’t approach their work with energy or
U
passion.
Actively disengaged employees aren’t just unhappy at work; they’re busy acting out their unhappiness. Every day, these workers undermine what engaged coworkers accomplish.
Theory Y McGregor’s modern
and positive assumptions about
employees being responsible and
creative.
kre29368_ch01_001-031.indd 9
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Part One
The World of Organizational Behavior
Gallup researchers, who base the Employee Engagement Index on a survey of
nearly 42,000 randomly selected adults, estimate that disengaged workers cost US
businesses as much as $350 billion a year.20
Employee engagement, and many ways to improve it, are discussed in later
chapters.
New Assumptions about Human Nature Unfortunately, unsophisticated behavioral research methods caused the human relationists to embrace some
naive and misleading conclusions.21 For example, human relationists believed in
the axiom, “A satisfied employee is a hardworking employee.” Subsequent research, as discussed later in this book, shows the satisfaction → performance linkage to be more complex than originally
thought.
H
Despite its shortcomings, the human relations movement opened the door to
I human nature. Rather than continuing to view
more progressive thinking about
employees as passive economicG
beings, managers began to see them as active social
beings and took steps to create more humane work environments.
G
S
The Quality Movement
, documentary titled “If Japan Can . . . Why Can’t
In 1980, NBC aired a television
We?” It was a wake-up call for North American companies to dramatically improve product quality or continue losing market share to Japanese electronics and
S
automobile companies. A full-fledged movement ensued during the 1980s and
H and done about improving the quality of both
1990s. Much was written, said,
goods and services.22
A
Thanks to the concept of total quality management (TQM) and Six Sigma
N and services we purchase today is significantly
programs, the quality of the goods
better than in years past. Six Sigma
was developed in 1986 at Motorola by engiI
neer Bill Smith to achieve an astounding 99.9997% quality target by eliminating
C licensed to companies such as General Electric
defects and cutting waste. It was
that became avid users. An estimated
35% of US companies have adopted Six
Q
Sigma.
U
A
Example. Six Sigma, broadly speaking, expresses a way of thinking about busi-
ness problems that encourages precision and predictability. The mantra of Six
Sigma “black belts” is DMAIC,
3 for “define, measure, analyze, improve, control.”
The “sigma” refers to the Greek letter, which in statistics is used to measure how
1
far something deviates from perfection.
The “six” comes from the goal to be no
more than six standard deviations
5 away from that perfect measure.23
3
The underlying principles B
of TQM and Six Sigma are more important than
ever given customers’ steadily rising expectations:
U
Example. Establish a reputation for great value, top quality, or pulling late-night
miracles in time for crucial client meetings, and soon enough, the goalposts move.
“Greatness” lasts only as long as someone fails to imagine something better. Inevitably, the exceptional becomes the expected.
Call it the performance paradox: If you deliver, you only qualify to deliver
more. Great companies and their employees have always endured this treadmill of
expectations. But these days, the brewing forces of technology, productivity, and
transparency have accelerated the cycle to breakneck speed.24
kre29368_ch01_001-031.indd 10
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Chapter One
Organizational Behavior
11
The quality movement has profound practical implications for managing people today.
What Is TQM? Experts on the subject offered this definition of total quality
management:
Example. TQM means that the organization’s culture is defined by and sup-
ports the constant attainment of customer satisfaction through an integrated
system of tools, techniques, and training. This involves the continuous improvement of organizational processes, resulting in high-quality products and
services.25
H
Quality consultant Richard J Schonberger sums
I up TQM as “continuous,
customer-centered, employee-driven improvement.”26 TQM is necessarily emG be continuously improved
ployee driven because product or service quality cannot
without the active learning and participation of every
G employee. Thus, in successful quality improvement programs, TQM principles are embedded in the organization’s culture. In fact, according to the resultsSof a field experiment, bank
customers had higher satisfaction after interacting with
, bank employees who had
27
been trained to provide excellent service.
The Deming Legacy
S
Quality is in the corporate DNA today thanks in large
H28 Ironically, the mathematipart to the pioneering work of W Edwards Deming.
cian credited with Japan’s post–World War II quality
A revolution rarely talked in
terms of quality. He instead preferred to discuss “good management” during the
hard-hitting seminars he delivered right up until hisNdeath at age 93 in 1993.29 Although Deming’s passion was the statistical measurement
and reduction of variaI
tions in industrial processes, he had much to say about how employees should be
C
treated. Regarding the human side of quality improvement,
Deming called for the
following:
Q
U
Formal training in statistical process control techniques
and teamwork.
Helpful leadership, rather than order giving and
A punishment.
Elimination of fear so employees will feel free to ask questions.
Emphasis on continuous process improvements rather than on numerical
3
quotas.
1
• Teamwork.
• Elimination of barriers to good workmanship.530
•
•
•
•
3
One of Deming’s most enduring lessons for managers
is his 85–15 rule.31
Specifically, when things go wrong, there is roughly
B an 85% chance the system
(including management, machinery, and rules) is at fault. Only about 15% of the
U
time is the individual employee at fault. Unfortunately, as Deming observed, the
typical manager spends most of his or her time wrongly blaming and punishing
individuals for system failures. Statistical analysis is required to uncover system
failures.
total quality management An
organizational culture dedicated to
training, continuous improvement,
and customer satisfaction.
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Part One
The World of Organizational Behavior
LO.2 Principles of TQM
Despite variations in the language and scope of TQM
programs, it is possible to identify four common TQM principles:
1.
2.
3.
4.
Do it right the first time to eliminate costly rework and product recalls.
Listen to and learn from customers and employees.
Make continuous improvement an everyday matter.
Build teamwork, trust, and mutual respect.32
Deming’s influence is clearly evident in this list. Once again, as with the human
relations movement, we see people as the key factor in organizational success.
In summary, TQM advocates have made a valuable contribution to the field
of OB by providing a practical context for managing people. The case for TQM
is strong because, as discovered in two comprehensive studies, it works.33 When
people are managed accordingHto TQM principles, more of us are likely to get
the employment opportunities and high-quality goods and services we demand.
I the TQM principle of continuous improvement
Organizations that lose sight of
do so at their own peril. When
GChrysler’s once-popular PT Cruiser went out of
production in 2010, one observer noted, “It’s a car that, initially, people loved. But
G
the company then tried to squeeze as much profit as it could out of the car, refusing to properly redesign it and S
eventually fitting it with cheaper radios and interior
34
materials to save a few pennies.”
,
As you will see many times in later chapters, this book is anchored to Deming’s
philosophy and TQM principles—especially the idea of continuous improvement.
S
H
Back to the Chapter-Opening
Case
A
What TQM principles are embedded
N in Zappos.com’s values and culture?
I
C
Q
LO.3 The Internet and Social
Media Revolution
U start-ups were the rage, advocates said the InterIn the early 1990s, when Internet
net would change everything. A
Then came the tech crash of 2001 and the Internet
Go to
www.mcgrawhillconnect.com
for an interactive exercise to
test your knowledge on The
Net Generation.
promise was ridiculed as pure hype. But after some adolescent growing pains,
the now-mobile Internet has in fact changed everything. Raw numbers are impressive: Internet users worldwide3grew from 361 million in 2001 to nearly 2 billion
by 2010.35 What was once e-commerce (buying and selling goods and services
over the Internet) has evolved 1
into e-business, using the Internet to facilitate every
aspect of running a business, 5
including the management of virtual teams.36 Said
one industry observer: “Strip away the highfalutin talk, and at bottom, the In3
ternet is a tool that dramatically lowers the cost of communication. That means
it can radically alter any industry
B or activity that depends heavily on the flow of
information.”37
U
Another important shift in the Internet—enabled by social media innovations
such as Facebook, LinkedIn, and Twitter—is the growing importance of usergenerated content. Passive consumers of mass content (e.g., watching TV and
movies and reading print media) have become creators and distributors of individualized content who blog, Facebook, and tweet whatever they like to whomever they like whenever they like.38 This is hugely empowering for the individual
consumer, employee, citizen, student, etc.
Example. [Social media entrepreneur] Amit Kapur envisions a Web that’s more
about him. When he visits a news site, the headlines will be heavy on technology,
kre29368_ch01_001-031.indd 12
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Chapter One
Organizational Behavior
13
real WORLD // real PEOPLE: ethics
Is Your Robot Watching Me?
In a 2007 issue of Scientific American, [Microsoft cofounder] Bill Gates predicted that the future would bring a
“robot in every home.” In the foreseeable future, though,
it may be a robot in every cubicle—or at least every third
cubicle.
Industrial and technological companies across the
globe are already hard at work trying to make this a reality.
The QB, a “remote presence robot” created by Anybots,
based in Mountain View, California, is basically a videoH
conferencing system on wheels. The QB, which looks
I
a little like Wall-E, is controlled remotely through a Web
browser and keyboard, allowing managers to virtually visit
G
satellite branches from the comfort of their offices. The
$15,000 QB was unveiled in May, and according to Anybots’ founder, Trevor Blackwell, sales are in the hundreds.
“Everyone already has videoconferencing,” says Blackwell.
“Yet planes are still full of people traveling for business.”
Where should managers draw the line between
proper managerial oversight of remote workers
and invading their privacy with electronic monitoring technology?
SOURCE: Excerpted from E Spitznagel, “The Robot Revolution Is
Coming,” Bloomberg Businessweek, January 17–23, 2011, p 70.
G
S
his passion; when we opens Yelp on his iPhone, the restaurant review app will al,
ready know about his upcoming trip to San Francisco and recommend restaurants
there. “I imagine this future where everywhere you go online or any application
you open on your mobile device is in some way personalized to you and your inS
terests,” says Kapur, 29.39
H
A
New technologies such as smart phones, cloud computing, and augmented
reality are important change drivers.40 But relativeNto OB, we need to focus on
how the evolving Internet has changed the behavior
I of those who have grown
up with the Internet and take Google, Facebook, YouTube, and tweeting for
C Grown Up Digital: How
granted. Don Tapscott, author of the intriguing book
the Net Generation Is Changing the World, says the
Q81 million Americans born
between January 1977 and December 1997 have a unique worldview shaped by
U
the Internet:
A
Example. These are the eight norms of the Net Generation. They value free-
dom—freedom to be who they are, freedom of choice.
3 They want to customize
everything, even their jobs. They learn to be skeptical, to scrutinize what they
see and read in the media, including the Internet.1They value integrity—being
honest, considerate, transparent, and abiding by their
5 commitment. They’re great
collaborators, with friends online and at work. They thrive on speed. They love to
3
innovate.
B your company, school or
. . . [I]f you understand these norms, you can change
41
university, government, or family for the twenty-first
Ucentury.
(Tapscott’s ideas about the Net Generation are expanded upon in Chapter 14.) In
short, organizations and organizational life will never be the same because of the
virtual world of the Internet42 (see Real World/Real People).
e-business Running the entire
business via the Internet and managing virtual teams.
kre29368_ch01_001-031.indd 13
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14
Part One
The World of Organizational Behavior
Managers are challenged to effectively communicate with, supervise, and
lead widely dispersed individuals and teams linked via modern telecommunications and Internet technology. The creation and management of virtual teams
is covered in detail in Chapter 11 and virtual organizations are explored in
Chapter 17.
LO.4
The Need to Build Human and Social Capital
Knowledge workers, those who add value by using their brains rather than the
sweat off their backs, are more important than ever in today’s global economy.
What you know and who you know increasingly are the keys to both personal and
organizational success (see Figure 1–2). In the United States, the following “perfect storm” of current and emerging trends heightens the importance and urgency
of building human capital: H
I
• Spread of advanced technology
to developing countries with rapidly growing middle classes (e.g., China,
India,
Russia, and Brazil).
G
• Offshoring of increasingly sophisticated jobs (e.g., product design, architecture, medical diagnosis). G
Sand science skills among America’s youth.
• Comparatively poor math
, by retiring post–World War II baby-boom
• Massive brain drain caused
generation.43
S
H
figure 1–2 The Strategic
Importance and Dimensions of Human and
A
Social Capital
N
Strategic
I assumption:
CPeople, individually
collectively,
Qand
are the key to
U organizational
success
A
Individual human capital
3
• Intelligence/abilities/
knowledge
1
• Visions/dreams/aspirations
• Technical and social skills 5
• Confidence/self-esteem
3
• Initiative/entrepreneurship
B
• Adaptability/flexibility
• Readiness to learn
U Organizational
learning
• Creativity
(Shared knowledge)
• Enthusiasm
• Motivation/commitment
• Persistence
• Ethical standards/courage
• Honesty
• Emotional maturity
kre29368_ch01_001-031.indd 14
Social capital
• Shared visions/goals
• Shared values
• Trust
• Mutual respect/goodwill
• Friendship/support groups
• Mentoring/positive role
modeling
• Participation/empowerment
• Connections/sources
• Networks/affiliations
• Cooperation/collaboration
• Teamwork
• Camaraderie
• Assertive (rather than
aggressive) communication
• Functional (rather than
dysfunctional) conflict
• Win–win negotiations
• Philanthropy/volunteering
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Chapter One
Organizational Behavior
15
What Is Human Capital? (Hint: Think BIG) A team of human resource management authors offered this perspective: “We’re living in a time when
a new economic paradigm—characterized by speed, innovation, short cycle times,
quality, and customer satisfaction—is highlighting the importance of intangible
assets, such as brand recognition, knowledge, innovation, and particularly human
capital.”44
Human capital is the productive potential of an individual’s
knowledge and actions. Potential is the operative word in this intentionally broad definition. When you are hungry, money in your
pocket is good because it has the potential to buy a meal. Likewise,
a present or future employee with the right combination of knowledge, skills, and motivation to excel represents human capital with
the potential to give the organization a competitive advantage. In a
2010 poll of 449 human resource professionals, “Obtaining
human
H
capital and optimizing human capital investments” was identified
as the number-one challenge for companies over theInext 10 years.45
Intel, a high-tech computer-chip manufacturer, is proactive
in this
G
area because its future depends on innovative engineering. It takes Thanks to Intel’s deep commitment to
G engineers. education and building human capital, these
years of math and science studies to make world-class
select students got a pat on the back from
Not wanting to leave the future supply of engineers S
to chance, Intel President Obama.
annually spends $100 million funding education initiatives at all
,
to study
levels worldwide.46 The company encourages youngsters
math and science and sponsors rigorous science competitions with scholarships
up to $100,000 for the winners.47 Will all of the students end up working for Intel?
S
No. That’s not the point. The point is much bigger—namely,
to build the world’s
human capital.
H
A
What Is Social Capital? Our focus now shifts
Nfrom the individual to social
units (e.g., friends, family, company, group or club, nation). Think relationships.
I strong relationships, goodSocial capital is productive potential resulting from
48
will, trust, and cooperative effort. Again, the word
C potential is key. According
to experts on the subject: “It’s true: the social capital that used to be a given in
Qsocial capital we can build
organizations is now rare and endangered. But the
will allow us to capitalize on the volatile, virtual possibilities
of today’s business
U
environment.”49 Relationships do matter. In a general survey, 77% of the women
A boss” extremely important.
and 63% of the men rated “Good relationship with
Other factors—including good equipment, resources, easy commute, and flexible
hours—received lower ratings.50 Moreover, research indicates the favorable im3
pacts positive social interactions can have on cardiovascular health and the im51
1
mune system.
5
Building Human and Social Capital Various
dimensions of human
3
and social capital are listed in Figure 1–2. They are a preview of what lies ahead in
Blearning in Chapter 17. Forthis book, including our discussion of organizational
mal organizational learning and knowledge management
U programs, as discussed in
Chapter 12, need social capital to leverage individual human capital for the greater
good. It is a straightforward formula for success. Growth depends on the timely
sharing of valuable knowledge. After all, what good are bright employees who do
not network, teach, and inspire?
human capital The productive
potential of one’s knowledge and
actions.
kre29368_ch01_001-031.indd 15
social capital The productive
potential of strong, trusting, and
cooperative relationships.
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16
Part One
The World of Organizational Behavior
Back to the Chapter-Opening Case
How does Zappos.com build human and social capital?
LO.5
TO THE POINT
Which of Wilson’s
managerial skills are
most important for 21stcentury managers?
The Managerial Context:
Getting Things Done with
and through Others
H managers touch our lives in many ways. Schools,
Like the organizations they run,
hospitals, government agencies,I and large and small businesses all require systematic management. Formally defined, management is the process of working with
G
and through others to achieve organizational
objectives, efficiently and ethically, in
the face of constant change. For
G students of OB, the central feature of this definition is working with and through others. Managers play a constantly evolving role.
S no longer the I’ve-got-everything-under-control
Today’s successful managers are
order givers of yesteryear. Rather,
, they need to creatively envision and actively sell
bold new directions in an ethical and people-friendly manner. Effective managers are team players empowered by the willing and active support of others who
S
are driven by conflicting self-interests.
Each of us has a huge stake in how well
managers carry out their evolving role. A recent review of 30 years of business
H
literature led to this conclusion about what good management involves: “Find a
A experience and a mass of information can interclear purpose. Be aware that past
fere with wise decisions. Maintain
N a bias toward action. Be open to change. Seek
feedback.”52 A good managerial role model is Walmart’s CEO Mike Duke. His
predecessor Lee Scott recently Ihad this to say in a Fortune magazine interview:
C
Example. “Mike is not only aQ
good leader but a really good manager. There’s so
much said today about leadership.
U But I don’t think in business you can forget the
fact that you don’t just have to lead, you have to manage.” . . .
A than I am,” says Scott. “I think it’s his ability to
“Yeah, he’s a better manager
deal with data, his ability to set a schedule and follow that schedule, and to get all
of the things done that he needs to get done. Mike is disciplined, and I think that
3
causes him to be able to accomplish
a great deal—how he manages his time, how
he manages his people, and the1effectiveness of the time he spends with people.”53
5
Quality of management can
3 make a big difference for employees and customers, alike.
Let us take a closer look atB
the skills managers need to perform and the future
direction of management.
U
What Do Managers Do? A Skills Profile
Observational studies by Henry Mintzberg and others have found the typical
manager’s day to be a fragmented collection of brief episodes.54 Interruptions are
commonplace, while large blocks of time for planning and reflective thinking are
not. In one particular study, four top-level managers spent 63% of their time on
activities lasting less than nine minutes each. Only 5% of the managers’ time was
devoted to activities lasting more than an hour.55 But what specific skills do effective managers perform during their hectic and fragmented workdays?
Many attempts have been made over the years to paint a realistic picture of
what managers do. Diverse and confusing lists of managerial functions and roles
kre29368_ch01_001-031.indd 16
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Chapter One
table 1–2
Organizational Behavior
17
Skills Exhibited by an Effective Manager
1. Clarifies goals and objectives for everyone involved.
2. Encourages participation, upward communication, and suggestions.
3. Plans and organizes for an orderly work flow.
4. Has technical and administrative expertise to answer organization-related
questions.
5. Facilitates work through team building, training, coaching, and support.
6. Provides feedback honestly and constructively.
H
7. Keeps things moving by relying on schedules, deadlines,
and helpful reminders.
I
G
Applies reasonable pressure for goal accomplishment.
Empowers and delegates key duties to others G
while maintaining goal clarity
and commitment.
S
Recognizes good performance with rewards and
, positive reinforcement.
8. Controls details without being overbearing.
9.
10.
11.
S
H
A
have been suggested. Fortunately, a stream of research
N
over the past 20 years by Clark Wilson and others has
I
given us a practical and statistically validated profile
C
of managerial skills56 (see Table 1–2). Wilson’s managerial skills profile focuses on 11 observable categoQ
ries of managerial behavior. This is very much in tune
U
with today’s emphasis on managerial competency.
Wilson’s unique skills-assessment technique goes beA
SOURCES: Adapted from material in F Shipper, “A Study of the Psychometric Properties of the Managerial
Skill Scales of the Survey of Management Practices,”Educational and Psychological Measurement, June
1995, pp 468–79; and C L Wilson, How and Why Effective Managers Balance Their Skills: Technical,
Teambuilding, Drive (Columbia, MD: Rockatech Multimedia Publishing, 2003).
yond the usual self-report approach with its natural
bias. In addition to surveying a given manager about
his or her 11 skills, the Wilson approach also asks
3
those who report directly to the manager to answer
1
questions about their boss’s skills. According to Wilson and his colleagues, the result is an assessment of
5
skill mastery, not simply skill awareness.57 The logic According to Lee Scott, Mike Duke’s predecessor as CEO
3
behind Wilson’s approach is both simple and compelof Walmart, Duke is both a good leader and a good manager
ling. Who better to assess a manager’s skills than the
B because of his discipline, ability to handle lots of data, people
people who experience those behaviors on a day-to- skills, and focus on getting timely results.
U
day basis—those who report directly to the manager?
The Wilson managerial skills research yields four useful lessons:
1. Dealing effectively with people is what management is all about. The 11
skills in Table 1–2 constitute a goal creation/commitment/feedback/reward/
accomplishment cycle with human interaction at every turn.
management Process of working
with and through others to achieve
organizational objectives, efficiently
and ethically, amid constant change.
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Part One
The World of Organizational Behavior
2. Managers with high skills mastery tend to have better subunit performance
and employee morale than managers with low skills mastery.58
3. Effective female and male managers do not have significantly different skill
profiles,59 contrary to claims in the popular business press in recent years.60
4. At all career stages, derailed managers (those who failed to achieve their
potential) tended to be the ones who overestimated their skill mastery (rated
themselves higher than their employees did).61 This prompted the following
conclusion from the researcher: “[W]hen selecting individuals for promotion to managerial positions, those who are arrogant, aloof, insensitive, and
defensive should be avoided.”62
LO.6
21st-Century Managers
Today’s workplace is indeed Hundergoing immense and permanent changes.63
Organizations have been “reengineered”
for greater speed, efficiency, and flexI
ibility. Teams are pushing aside the individual as the primary building block of
G
organizations.64 Command-and-control management is giving way to participaG
tive management and empowerment.
Ego-centered leaders are being replaced by
customer-centered leaders. Employees
increasingly are being viewed as internal
S
customers. A 2008 summit of 35 executives and management scholars prompted
,
a call for a reinvention of management.
Lead researcher Gary Hamel framed the
challenge this way:
S
Example. [Historically,] the problems
were efficiency and scale, and the solution
H
was bureaucracy, with its hierarchical structure, cascading goals, precise role defiAprocedures.
nitions, and elaborate rules and
Managers today face a newNset of problems, products of a volatile and unforgiving environment. Some of the most critical: How in an age of rapid change do
you create organizations that Iare as adaptable and resilient as they are focused
and efficient? How in a world where
C the winds of creative destruction blow at gale
force can a company innovate quickly and boldly enough to stay relevant and
Q
profitable? How in a creative economy
where entrepreneurial genius is the secret to
success do you inspire employees
to
bring
the gifts of initiative, imagination, and
U
passion to work every day? How . . . do you encourage executives to fulfill their
A
responsibilities to all stakeholders?65
3
All this creates a mandate for more flexible, innovative, and responsive organi1 in the 21st century (see Table 1–3).
zations and a new kind of manager
5
3
Back to the Chapter-Opening Case
B
What evidence of a 21st-centuryUorganization, based on Table 1–3, can you find in the
Zappos.com case?
The Contingency Approach to Management
Scholars have wrestled for many years with the problem of how best to apply the
diverse and growing collection of management tools and techniques. Their answer
is the contingency approach. The contingency approach calls for using management techniques in a situationally appropriate manner, instead of trying to rely on
“one best way” or “one size fits all.”
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Chapter One
table 1–3
Organizational Behavior
19
Evolution of the 21st-Century Manager
PAST MANAGERS
FUTURE MANAGERS
Primary role
Order giver, privileged
elite, manipulator,
controller
Facilitator, team member,
teacher, advocate,
sponsor, coach
Learning and knowledge
Periodic learning,
narrow specialist
Continuous life-long
learning, generalist with
multiple specialties
Compensation criteria
Time, effort, rank
Skills, results
Cultural orientation
Monocultural,
monolingual
Primary source of
influence
Formal authority
View of people
Potential problem
Primary communication
pattern
Vertical
Decision-making style
Limited input for
individual decisions
Ethical considerations
Nature of interpersonal
relationships
Handling of power and
key information
Approach to change
H Multicultural, multilingual
I
Knowledge (technical and
G interpersonal)
G Primary resource; human
S capital
, Multidirectional
Broad-based input for joint
S decisions
H Forethought
Afterthought
A
Competitive (win–lose) Cooperative (win–win)
N
I Share and broaden access
Hoard and restrict
access
C for greater transparency
Resist
Q Facilitate
U
A
The contingency approach encourages managers to view organizational behavior within a situational context. According to this modern perspective, evolving
situations, not hard-and-fast rules, determine when3 and where various management techniques are appropriate. Harvard’s Clayton Christensen put it this way:
1
“Many of the widely accepted principles of good management
are only situation66
ally appropriate.” For example, as discussed in Chapter
5 16, contingency researchers have determined that there is no single best style of leadership. Organizational
3
behavior specialists embrace the contingency approach because it helps them reB circumstances inside and
alistically interrelate individuals, groups, and evolving
outside the organization. Moreover, the contingency
Uapproach sends a clear message to managers in today’s global economy: Carefully read the situation and then
be flexible enough to adapt (see Real World/Real People on page 20).
contingency approach Using
management tools and techniques
in a situationally appropriate
manner; avoiding the one-best-way
mentality.
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Part One
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real WORLD // real PEOPLE
Will Happy Employees Mean Happy Customers for American Express?
[L]ast year when [American Express] gave its global customer service division a makeover, it decided to focus on
making life better for its 26,000 call-center employees.
The theory: Happier employees mean happier customers.
“We’ve learned the importance of the attitude of the employee,” says Jim Bush, EVP of world service. AmEx started
by asking customer service employees what they wanted
to see—and then delivered better pay, flexible schedules,
and more career development. It also switched from a
directive to keep calls short and transaction-oriented to
engaging customers in longer conversations. Collectively,
the moves have boosted service margins by 10%. “Great
service starts with the people who deliver it,” says [CEO
Ken] Chenault. “We want American Express to be the
company people recommend to their friends.”
Based on Table 1–3, what evidence of 21st-century
management can you find here?
TO THE POINT
How can an
understanding of
Carroll’s social
responsibility pyramid
and the seven moral
principles lead to more
ethical conduct in the
workplace?
SOURCE: Excerpted from C Tkaczyk, “American Express,” Fortune,
August 16, 2010, p 14.
H
I
G
G
S
,
American Express CEO Kenneth I Chenault.
S
H
The Ethics Challenge
A
Thanks to highly publicized criminal acts of now-jailed executives from the likes
N
of Enron, Tyco, and WorldCom,67 corporate officers in the United States became
subject to high accountability Istandards and harsh penalties under the SarbanesOxley Act of 2002.68 Sadly, instead of improving, business ethics continued to hit
C
new lows, as symbolized by Ponzi schemer Bernard Madoff’s 150-year prison senQ record $550 million fine to settle fraud charges
tence in 2009 and Goldman Sachs’s
and elected officials (who have their own criminal
in 2010.69 The general public U
hall of shame) continue to call for greater attention to ethical conduct.70
A in the effort to stem this tide of unethical conClearly, everyone needs to join
duct. There are a variety of individual and organizational factors that contribute
to unethical behavior. OB is an excellent vantage point for better understanding and improving workplace 3
ethics. If OB can provide insights about managing
human work behavior, then it can
1 teach us something about avoiding misbehavior.
Ethics involves the study of moral issues and choices. It is concerned with right
versus wrong, good versus bad,5and the many shades of gray in supposedly blackand-white issues. Moral implications
spring from virtually every decision, both on
3
and off the job. Managers are challenged to have more imagination and the courB the world a better place.
age to do the right thing to make
To enhance our understanding
U of ethics within an OB context, we will discuss
(1) a corporate social responsibility model, (2) the general erosion of morality, (3)
seven moral principles for managers, (4) how to improve an organization’s ethical
climate, and (5) a personal call to action.
LO.7
A Model of Global Corporate Social
Responsibility and Ethics
Corporate social responsibility (CSR) is defined as “the notion that corporations
have an obligation to constituent groups in society other than stockholders and
beyond that prescribed by law or union contract.”71 CSR challenges businesses
to go above and beyond just making a profit to serve the interests and needs of
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Chapter One
figure 1–3
Organizational Behavior
21
Carroll’s Global Corporate Social Responsibility Pyramid
Be a good
global
corporate
citizen
Be
ethical
Obey
the
law
Be
profitable
Do what is desired
by global stakeholders
Philanthropic
Responsibility
Ethical
Responsibility
Do what is expected
by global stakeholders
H
I
G
Legal
G
Responsibility
S
,
Do what is
required by global
stakeholders
Economic
S
Responsibility
Do what is
required by
global
capitalism
H
A
SOURCE: A B Carroll, Academy of Management Executive: The Thinking Manager’s Source. Copyright © 2004 by The Academy of
N via Copyright Clearance Center.
Management. Reproduced by permission of The Academy of Management
I
C customers, suppliers, and
“stakeholders,” including past and present employees,
Go to
countries and communities where facilities are located.
Q 72 A good deal of contro- www.mcgrawhillconnect.com
versy surrounds the drive for greater CSR because classical economic theory says for a video case on Patagonia
U
businesses are responsible for producing goods and services to make profits, not and their philosophy
solving the world’s social, political, and environmental
A ills.73 What is your opinion? concerning corporate social
University of Georgia business ethics scholar Archie B Carroll views CSR in
broad terms. So broad, in fact, that he created a model of CSR/business ethics
3 in mind (see Figure 1–3).
with the global economy and multinational corporations
This model is very timely because it effectively triangulates
three major trends: (1)
1
economic globalization, (2) expanding CSR expectations, and (3) the call for im5 from the bottom up, advises
proved business ethics. Carroll’s global CSR pyramid,
organizations in the global economy to
3
responsibility.
• Make a profit consistent with expectations forB
international businesses.
• Obey the law of host countries as well as international law.
U
• Be ethical in its practices, taking host-country and global standards into
consideration.
• Be a good corporate citizen, especially as defined by the host country’s
expectations.74
ethics Study of moral issues and
choices.
kre29368_ch01_001-031.indd 21
corporate social responsibility
Corporations are expected to go
above and beyond following the
law and making a profit.
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Part One
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In keeping with the pyramid idea, Carroll emphasizes that each level needs
to be solid if the structure is to stand. A pick-and-choose approach to CSR is
inappropriate. The top level of the pyramid, according to Carroll, reflects “global
society’s expectations that business will engage in social activities that are not mandated by law nor generally expected of business in an ethical sense.”75 The spirit
of Carroll’s global corporate social responsibility pyramid is evident in Nike’s ongoing quest to shake its sweatshop image:
Example. Progress has been slow in coming to Nike’s global supply chain, which
employs nearly 800,000 workers in 52 countries. Still, Nike . . . has made strides
since it embraced corporate responsibility. What started as a massive PR shield
has evolved into a broader mandate for the way it makes and sells products. Nike
has been particularly inventive at weaving environmental awareness into its deH
sign process, rating each sneaker according to a sustainability index. On labor, the
company admits that its initialIefforts—setting a code of conduct and monitoring
compliance—haven’t ended abuses across the hundreds of factories that produce
G
its goods. But the lessons from the 1990s—to own up to problems, then find comG the world’s biggest shoemaker . . . with labor
panywide solutions—are helping
issues. “I’m proud of what we’ve
S accomplished, but we’re still not where we need
to be,” says Nike’s current CEO, Mark Parker.76
,
Our OB in Action Case Study on Whole Foods at the end of this chapter is a good
CSR example. With this globalS
CSR perspective in mind, we now narrow the focus
to individual moral behavior. H
A
N
Back to the Chapter-Opening Case
I
Where does Zappos.com belong
Con Carroll’s Corporate Social Responsibility Pyramid
in Figure 1–3? Explain.
Q
U
A
Go to
www.mcgrawhillconnect.com
for an interactive comprehension
case exercise to learn about
ethics.
An Erosion of Morality?
David Callahan, in his book 3
The Cheating Culture: Why More Americans Are
Doing Wrong to Get Ahead, paints this disturbing picture of modern society:
1
5
Example. [T]he character of Americans has changed. Those values associated
with the market hold sway in3their most caricatured form: individualism and
self-reliance have morphed into
B selfishness and self-absorption; competitiveness
has become social Darwinism; desire for the good life has turned into materialU
ism; aspiration has become envy. There is a growing gap between the life that
many Americans want and the life they can afford—a problem that bedevils
even those who would seem to have everything. Other values in our culture have
been sidelined; belief in community, social responsibility, compassion for the
less able or less fortunate.77
Bolstering this negative view is a 2010 survey in which 72% of Americans polled
said corruption had increased in the United States during the past three years.78
Does this portrayal of a “cheating culture” have merit and, if so, to what extent?
Let us examine the OB research evidence for relevant insights.
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Chapter One
Organizational Behavior
23
Taking Local Norms and Conduct into Consideration National
culture, as discussed in Chapter 4, affects how people think and act about everything, including ethical issues. This reality was supported in a multination study
(including the United States, Great Britain, France, Germany, Spain, Switzerland,
India, China, and Australia) of management ethics. Managers from each country
were asked to judge the ethicality of 12 questionable behaviors, including such
things as giving and accepting gifts, passing blame, sharing confidential information, and concealing errors. Results revealed significant differences across the 10
nations in the study. That is, managers in some countries approved of practices
that were frowned upon in other countries.79 Consequently, care needs to be taken
when extrapolating Callahan’s characterization of American morality to other
cultures. Each culture requires its own ethical analysis, taking local norms into
consideration.
H
Ethical Lapses in the Workplace A nationwide
survey of 581 human
I
resource professionals revealed that 62% of the respondents occasionally observed
behavior occurs at all organiunethical behavior at their companies.80 Unethical G
zational levels, although recent research indicates G
that senior executives tend to
have significantly more positive perceptions of ethics in their organizations than
S
employees regularly
do lower-level employees.81 Perhaps that is because lower-level
witness common ethical lapses such as lying about, being sick, fudging a report,
Go to
www.mcgrawhillconnect.com
for a self-assessment to
determine your ethical
decision-making skills.
bullying and sexual harassment, personal use of company equipment, and stealing
company property or funds. Executives are not immune to being victims of unethical conduct, however. For example, a survey of jobSapplicants for executive positions indicated that 64% had been misinformed about the financial condition of
H negatively affected by this
potential employers, and 58% of these individuals were
misinformation.82 It is very likely that some of those
A affected individuals moved
their families and left their friends only to discover the promise of a great job in
N
a financially stable organization was a lie. Job applicants, for their part, also have
I checks by ADP Screening
ethical lapses. An analysis of 2.6 million background
and Selection Services, revealed that “44% of applicants
C lied about their work histories, 41% lied about their education, and 23% falsified credentials or licenses.”83
Experts estimate that US companies lost about Q
$994 billion to fraud in 2008,
much of it at the hands of insiders.84 On a global scale,
U the World Bank says, “bribery has become a $1 trillion industry.”85
A
Intense Pressure for Results Starts Early Lower-level managers generally want to “look good” for their bosses.
3 In support of this
conclusion, many studies have found a tendency among middle- and
lower-level managers to act unethically in the face of1 perceived pressure
for results. Further, this tendency is particularly pronounced
when in5
dividuals are significantly rewarded for accomplishing their goals.86 By
3
fostering a pressure-cooker atmosphere for results, managers
can unwittingly set the stage for unethical shortcuts by employees
who seek to
B
please the boss, protect their jobs, and be loyal to the company.87
U
Unfortunately, the seeds of this problem are planted early in life. A
survey of 787 youngsters ages 13 to 18 found “that 44% of teens feel
they’re under strong pressure to succeed in school, no matter the cost.
Of those, 81% believe the pressure will be the same or worse in the workplace.”88 Sixty-nine percent of the students admitted to lying in the past
year (with 27% confessing they even lied on the survey!).89 Anonymous
surveys by the Josephson Institute of Ethics of 43,321 students ages
15 to 18 from private and public high schools across the United States
found 60% admittedly had cheated on a test in 2010 “and 34% did so
twice or more. Students at non-religious private schools cited the lowest
percentage (33%), while 56% at religious schools said they cheated.”90
kre29368_ch01_001-031.indd 23
Some believe intense pressure for
results by BP managers ultimately
was responsible for the 11 deaths
and environmental disaster when
Transocean’s Deepwater Horizon drilling
rig exploded and sank into the Gulf of
Mexico in 2010.
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24
table 1–4
Part One
The World of Organizational Behavior
The Magnificent Seven: General Moral Principles for Managers
1. Dignity of human life: The lives of people are to be respected. Human beings, by the fact of their existence,
have value and dignity. We may not act in ways that directly intend to harm or kill an innocent person.
Human beings have a right to live; we have an obligation to respect that right to life. Human life is to be
preserved and treated as sacred.
2. Autonomy: All persons are intrinsically valuable and have the right to self-determination. We should act
in ways that demonstrate each person’s worth, dignity, and right to free choice. We have a right to act in
ways that assert our own worth and legitimate needs. We should not use others as mere “things” or only as
means to an end. Each person has an equal right to basic human liberty, compatible with a similar liberty
for others.
3. Honesty: The truth should be told to those who have a right to know it. Honesty is also known as integrity,
truth telling, and honor. One should speak and act so asH
to reflect the reality of the situation. Speaking and
acting should mirror the way things really are. There are Itimes when others have the right to hear the truth
from us; there are times when they do not.
G
4. Loyalty: Promises, contracts, and commitments should be honored. Loyalty includes fidelity, promise
G in quality of work, reliability, commitment,
keeping, keeping the public trust, good citizenship, excellence
and honoring just laws, rules, and policies.
S
5. Fairness: People should be treated justly. One has the right
, to be treated fairly, impartially, and equitably.
One has the obligation to treat others fairly and justly. All have the right to the necessities of life—especially
those in deep need and the helpless. Justice includes equal, impartial, unbiased treatment. Fairness
tolerates diversity and accepts differences in people and their ideas.
S
6. Humaneness: There are two parts: (a) Our actions oughtHto accomplish good, and (b) we should avoid
doing evil. We should do good to others and to ourselves. We should have concern for the well-being of
A
others; usually, we show this concern in the form of compassion,
giving, kindness, serving, and caring.
N good for the greatest number” of people.
7. The common good: Actions should accomplish the “greatest
One should act and speak in ways that benefit the welfare of the largest number of people, while trying to
I
protect the rights of individuals.
C
Q
U
In summary, Callahan’s earlier characterization of America’s cheating culture is an appropriate wake-upA
call. The challenge to improve is immense because
SOURCE: From Kent Hodgson, A Rock and a Hard Place: How to Make Ethical Business Decisions When the Choices Are Tough © 1992.
Reprinted with permission of the author.
unethical behavior is pervasive.
LO.8
3
1
Management consultant and writer Kent Hodgson has helpfully taken manag5 by identifying seven general moral principles
ers a step closer to ethical decisions
(see Table 1–4). Hodgson calls3them “the magnificent seven” to emphasize their
timeless and worldwide relevance. Notions of both justice and care are clearly
B which are detailed and, hence, more practical.
evident in the magnificent seven,
Importantly, according to Hodgson,
there are no absolute ethical answers for
U
General Moral Principles
decision makers. The goal for managers should be to rely on moral principles
so their decisions are principled, appropriate, and defensible.91 (See Real World/
Real People.)
How to Improve the Organization’s
Ethical Climate
Improving workplace ethics is not just a nice thing to do; it also can have a positive
impact on the bottom line. Studies in the United States and the United Kingdom
demonstrated that corporate commitment to ethics can be profitable. Evidence
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Chapter One
Organizational Behavior
25
real WORLD // real PEOPLE: ethics
Do Billionaire Businesspeople Have an Obligation
to “Give Back” to Society?
Bill Gates and Warren Buffett announced . . . [in 2010]
that 40 of America’s richest people have agreed to
sign a “Giving Pledge” to donate at least half their
wealth to charity. With a collective net worth said to
total $230 billion, that promise translates to at least
$115 billion. . . .
Successful entrepreneurs-turned-philanthropists typiH
cally say they feel a responsibility to “give back” to society. But “giving back” implies they have taken something.
I
What, exactly, have they taken? Yes, they have amassed
G
great sums of wealth. But that wealth is the reward they
have earned for investing their time and talent in creating
products and services that others value. They haven’t
taken from society, but rather enriched us in ways that
were previously unimaginable.
What do you think about the issue of giving
back? Explain the ethics and general moral principles of your position.
SOURCE: Excerpted from K O Dennis, “Gates and Buffett Take the
Pledge,” The Wall Street Journal, August 20, 2010, p A15.
G
S
,
suggested that profitability is enhanced by a reputation for honesty and corporate
citizenship.92 Ethics also can impact the quality of people who apply to work in
an organization. An online survey of 1,020 individuals
S indicated that 83% rated a
company’s record of business ethics as “very important” when deciding to accept
a job offer. Only 2% rated it as “unimportant.”93 H
A team of management researchers recommended
A the following actions for
improving on-the-job ethics.94
N
• Behave ethically yourself. Managers are potent role models whose habits
I
and actual behavior send clear signals about the importance of ethical
C
conduct. Ethical behavior is a top-to-bottom proposition
and executives are
challenged “to simultaneously maximize the so-called
triple
bottom line, or
Q
‘People, Planet, Profit.’”95
U are generally lax when
• Screen potential employees. Surprisingly, employers
it comes to checking references, credentials, transcripts,
and other informaA
tion on applicant résumés. More diligent action in this area can screen out
those given to fraud and misrepresentation. Integrity testing is fairly valid
3
but is no panacea.96
• Develop a meaningful code of ethics. Codes of 1
ethics can have a positive
impact if they satisfy these four criteria:
5
1. They are distributed to every employee.
3
2. They are firmly supported by top management.
B
3. They refer to specific practices and ethical dilemmas
likely to be encountered by target employees (e.g., salespersonsU
paying kickbacks, purchasing
agents receiving payoffs, laboratory scientists doctoring data, or accountants “cooking the books”).
4. They are evenly enforced with rewards for compliance and strict penalties
for noncompliance.97
• Provide ethics training. Employees can be trained to identify and deal with
ethical issues during orientation and through seminar, video, and Internet
training sessions.98
• Reinforce ethical behavior. Behavior that is reinforced tends to be repeated,
whereas behavior that is not reinforced tends to disappear. Ethical conduct
too often is ignored or even punished while unethical behavior is rewarded.
kre29368_ch01_001-031.indd 25
Go to
www.mcgrawhillconnect.com
for an interactive exercise to
test your knowledge on the
model of global corporate
social responsibility.
08/12/11 6:19 PM
26
Part One
The World of Organizational Behavior
• Create positions, units, and other structural mechanisms to deal with ethics.
Ethics needs to be an everyday affair, not a one-time announcement of a
new ethical code that gets filed away and forgotten. A growing number of
large companies in the United States have chief ethics officers who report
directly to the CEO, thus making ethical conduct and accountability priority issues.
• Create a climate in which whistle-blowing becomes unnecessary. Whistleblowing occurs when an employee reports a perceived unethical and/or
illegal activity to a third party such as government agencies, news media,
or public-interest groups. Enron’s Sherron Watkins was a highly publicized
whistle-blower.99 Organizations can reduce the need for whistle-blowing by
encouraging free and open expression of dissenting viewpoints and giving
employees a voice through fair grievance procedures and/or anonymous
ethics hot lines.
H
I
A Personal Call to G
Action
Go to
www.mcgrawhillconnect.com
for an interactive exercise
to test your knowledge on
improving the ethical climate
in your organization.
TO THE POINT
Which of the five
research methodologies
is likely to provide the
best insights about OB?
In the final analysis, ethics comes down to individual perception and motivation.
G structure, training, and rewards all can point
Organizational climate, role models,
employees in the right direction.
S But individuals first must be morally attentive,
meaning they faithfully consider the ethical implications of their actions and
,
circumstances.100
Second, they must want to do the right thing and have the courage to act.
Bill George, the respected former
S CEO of Medtronic, the maker of life-saving
devices such as heart pacemakers, gave us this call to action: “Each of us needs
H boundaries are and, if asked to violate (them),
to determine . . . where our ethical
101
refuse. . . . If this means refusing
A a direct order, we must be prepared to resign.”
Rising to this challenge requires strong personal values (more about values in
Chapter 6) and the courage to N
adhere to them during adversity.
I
C
Learning aboutQ OB: Research
U
and a Road Map
A We have a lot of ground to cover. To make the
OB is a broad and growing field.
trip as instructive and efficient as possible, we use a theory→research→practice
strategy. For virtually all major topics in this book, we begin by presenting the
3 (often with graphical models showing how key
underlying theoretical framework
variables are related) and defining
1 key terms. Next, we tap the latest research findings for valuable insights. Finally, we round out the discussion with illustrative
5
practical examples and, when applicable,
how-to-do-it advice.
3
LO.9 Five Sources of OB
B Research Insights
OB gains its credibility as an
U academic discipline by being
research driven.
Scientific rigor pushes aside speculation, prejudice, and untested assumptions
about workplace behavior. We systematically cite “hard” evidence from five different categories. Worthwhile evidence was obtained by drawing on the following
priority of research methodologies:
• Meta-analyses. A meta-analysis is a statistical pooling technique that permits behavioral scientists to draw general conclusions about certain variables from many different studies.102 It typically encompasses a vast number
of subjects, often reaching the thousands. Meta-analyses are instructive because they focus on general patterns of research evidence, not fragmented
bits and pieces or isolated studies.103
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Organizational Behavior
• Field studies. In OB, a field study probes individual or group processes
in an organizational setting. Because field studies involve real-life situations, their results often have immediate and practical relevance for
managers.
• Laboratory studies. In a laboratory study, variables are manipulated and
measured in contrived situations. College students are commonly used as
subjects. The highly controlled nature of laboratory studies enhances research precision. But generalizing the results to organizational management
requires caution.
• Sample surveys. In a sample survey, samples of people from specified populations respond to questionnaires. The researchers then draw conclusions
about the relevant population. Generalizability of the results depends on
the quality of the sampling and questioning techniques.
H of a single individual,
• Case studies. A case study is an in-depth analysis
group, or organization, Because of their limited
I scope, case studies yield
realistic but not very generalizable results.
27
Go to
www.mcgrawhillconnect.com
for an interactive exercise to
test your knowledge on the
sources of organizational
behavior research.
G
G
A Topical Model for Understanding
S
and Managing OB
,
Figure 1–4 is a topical road map for our journey through this book. Our destination is organizational effectiveness through continuous improvement. Four
different criteria for determining whether or not an
Sorganization is effective are
discussed in Chapter 17. The study of OB can be a wandering and pointless trip
Han effective and efficient orif we overlook the need to translate OB lessons into
ganized endeavor.
A
At the far left side of our topical road map are managers and team leaders,
N
those who are responsible for accomplishing organizational
results with and
through others. The three circles at the center of Iour road map correspond to
Parts 2, 3, and 4 of this text. Logically, the flow of topical coverage in this book
C to group processes, to or(following introductory Part 1) goes from individuals,
ganizational processes. Around the core of our topical
Q road map in Figure 1–4
is the organization. Accordingly, we end our journey with organization-related
material in Part 4. Organizational structure andUdesign are covered there in
Chapter 17 to establish and develop the organizational
context of organizaA
tional behavior. Rounding out our organizational context is a discussion of
organizational change in Chapter 18. Chapters 3 and 4 provide a cultural con3
text for OB.
The dotted line represents a permeable boundary between the organization
1
and its environment. Energy and influence flow both ways across this permeable
5 highly interactive and inboundary. Truly, no organization is an island in today’s
terdependent world. Relative to the external environment,
international cultures
3
B
U
whistle-blowing Reporting
unethical/illegal acts to outside
third parties.
morally attentive Faithfully
considering the ethical implications
of one’s actions.
meta-analysis Pools the results
of many studies through statistical
procedure.
kre29368_ch01_001-031.indd 27
field study Examination of variables in real-life settings.
laboratory study Manipulation and
measurement of variables in contrived situations.
case study In-depth study
of a single person, group, or
organization.
sample survey Questionnaire responses from a sample of people.
08/12/11 6:19 PM
28
Part One
figure 1–4
The World of Organizational Behavior
A Topical Model for What Lies Ahead
External Environment
(Cultural Context)
Organization
(Structure,
Change)
ructure, Culture, Change
Understanding
and managing
individual
behavior
Managers and team
leaders responsible
for achieving
organizational
results with and
through others
H
I
Understanding
G
and managing
group and social
G
processes
S
,
Organizational
effectiveness
through
continuous
improvement
Understanding
and managing
S
organizational
processes and
H
problems
A
N
I
are explored in Chapter 4. Organization–environment
contingencies are examined
C
in Chapter 17.
Chapter 2 examines the OBQ
implications of significant demographic and social
trends. These discussions provide
U a realistic context for studying and managing
people at work.
A
Bon voyage! Enjoy your trip through the challenging, interesting, and often
surprising world of OB.
Summary of Key Concepts
1. Define the term organizational behavior, and contrast
McGregor’s Theory X and Theory Y assumptions about
employees. Organizational behavior (OB) is an interdisciplinary field dedicated to better understanding and managing people at work. It is both research and application
oriented. Theory X employees, according to traditional
thinking, dislike work, require close supervision, and are
primarily interested in security. According to the modern
Theory Y view, employees are capable of self-direction, of
seeking responsibility, and of being creative.
2. Identify the four principles of total quality management
(TQM). (a) Do it right the first time to eliminate costly
rework. (b) Listen to and learn from customers and employees. (c) Make continuous improvement an everyday
matter. (d ) Build teamwork, trust, and mutual respect.
kre29368_ch01_001-031.indd 28
3
1
5
3.3Define the term e-business, and describe the Net GenBeration. E-business involves using the Internet to more
effectively and efficiently manage every aspect of a busiUness, including virtual teams. Tapscott describes the Net
Generation—the 81 million Americans born between
the start of 1977 and the end of 1997 who grew up with
the Internet—in terms of eight norms: (a) value freedom, (b) customize everything, (c) be skeptical, (d ) value
integrity, (e) abide by commitments, ( f ) be a great
collaborator, (g) thrive on speed, (h) love to innovate.
4. Contrast human and social capital, and explain why we need
to build both. The first involves individual characteristics;
the second involves social relationships. Human capital is
the productive potential of an individual’s knowledge and
actions. Dimensions include such things as intelligence,
08/12/11 6:19 PM
Chapter One
visions, skills, self-esteem, creativity, motivation, ethics, and emotional maturity. Social capital is productive
potential resulting from strong relationships, goodwill,
trust, and cooperative effort. Dimensions include such
things as shared visions and goals, trust, mutual respect,
friendships, empowerment, teamwork, win–win negotiations, and volunteering. Social capital is necessary to tap
individual human capital for the good of the organization
through knowledge sharing and networking.
Organizational Behavior
29
bottom to top, the four levels of corporate responsibility
in Carroll’s pyramid are: economic (make a profit); legal
(obey the law); ethical (be ethical in its practices); and
philanthropic (be a good corporate citizen). Progress needs
to be made on all levels. Callahan’s claim that America
has developed a “cheating culture” is supported by unethical conduct at all organizational levels. An unintended
but serious consequence of excessive pressure for results,
beginning in school and carrying over to the workplace, is
expedient unethical behavior. Moral erosion is evident in
high school and workplace surveys about misconduct.
5. Define the term management, and identify at least five of
the eleven managerial skills in Wilson’s profile of effective
8. Identify four of the seven general ethical principles, and
managers. Management is the process of working with
explain how to improve an organization’s ethical climate.
and through others to achieve organizational objectives in
The “magnificent seven” moral principles are (a) dignity
an efficient and ethical manner. According to the Wilson
of human life, (b) autonomy, (c) honesty,...
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