Organizational Behavior in the Workplace
MGT/312 Version 5
Organizational Behavior in the Workplace
Complete the matrix below with 3 to 5 job skills found in the workplace that could lead to improved job
performance.
Job Skills in the Workplace
Example: Problem-solving
Create a 700-word summary of what you have learned about Organizational Behavior from your current
readings.
Include the following in your summary:
•
•
•
•
Explain the connection between organizational behavior and your selected job skills from the matrix.
Discuss how these job skills can lead to improved job performance.
Explain how Organizational Behavior can aid you in decision-making and problem-solving.
Predict the consequences of unethical behavior in the workplace.
Copyright © 2016 by University of Phoenix. All rights reserved.
1
Ch. 1: MAKING OB WORK FOR ME What Is OB and Why Is It Important? 2014 Angelo Kinicki and Mel
Fugate. All rights reserved. Reproduction prohibited without permission of the authors. MAJOR
TOPICS I’LL LEARN AND QUESTIONS I SHOULD BE ABLE TO ANSWER 1.1THE VALUE OF OB TO MY
JOB AND CAREER MAJOR QUESTION: How can I use knowledge of OB to enhance my job
performance and career? 1.2HUMAN AND SOCIAL CAPITAL MAJOR QUESTION: How can human
and social capital affect my career opportunities and job performance? 1.3RIGHT VS. WRONG—
ETHICS AND MY PERFORMANCE MAJOR QUESTION: Why do people fall into ethical lapses, even
unwittingly, and what lessons can I learn from that? 1.4APPLYING OB TO SOLVE PROBLEMS
MAJOR QUESTION: How can I apply OB in a practical way to increase my effectiveness?
1.5STRUCTURE AND RIGOR IN SOLVING PROBLEMS MAJOR QUESTION: How could I explain to a
fellow student the practical relevance and power of OB to help solve problems? 1.6THE
INTEGRATIVE FRAMEWORK FOR UNDERSTANDING AND APPLYING OB MAJOR QUESTION: How
can the Integrative Framework help me understand and apply OB knowledge and tools—and
improve my problem solving? Page 3 winning at work YOUR FUTURE Imagine you are about to
walk in the door and start your first full-time job. It’s the job you’ve always wanted. Or if you are
working now, imagine you’ve finally won the promotion you’ve worked so hard for, and you’re about
to enter your new office or work area on a new floor. Both cases are full of excitement—your
professional life has so much promise! Now take stock of your existing knowledge, skills,
experiences, and common sense. Even with these assets, wouldn’t you want to give yourself an
even greater advantage and transform your knowledge and common sense into practical benefits
at your job? After all, what value are your talents if you don’t apply them? This is why we study OB.
KNOWLEDGE IS NOT ENOUGH Expertise alone does not solve business problems. For decades,
businesses have attributed their successes to the knowledge or technical expertise of their
employees. The rationale was that if workers had the knowledge and necessary technical training,
then results would automatically follow. But over time firms have realized that knowledge and
training alone do not guarantee success. In recent years, business experts have called this
disparity the knowing-doing gap.1 The knowing-doing gap identifies the gap between what people
know and what they actually do. For instance, everybody knows that treating people with respect is
a good idea, but some managers don’t always do this. Closing such gaps is an important element
of your own success at school, work, and home. This also is a major focus of OB and this book.
THE LIMITS OF COMMON SENSE You may feel that common sense will go a long way toward
solving most business and career challenges. But you’d be wrong. If common sense were all that
mattered, businesses would be more successful and all managers would be effective, while you
and other new employees would consistently be happy and perform at your very best. However, this
certainly isn’t true of all employers and managers, and entry-level employees are often ill prepared
and underperform. WHERE EMPLOYERS SAY NEW HIRES FALL SHORT Fortune published results
from a Global Strategy Group study of 500 senior managers and executives. Only 65 percent of
these business leaders found new employees “somewhat prepared” for success in business, while
a significant percentage said new employees are “not prepared at all.” Jeffrey Holmes, a principal
at architectural firm Woods Bagot and sponsor of the survey, confirmed these findings and said:
“Companies need people who can synthesize information and apply it to business problems. . . .
There’s less room for new hires who don’t have that ability. Technical skill is not enough.” This
preference applies to both bachelors and masters students.2 EMPLOYERS WANT PROBLEM
SOLVING AND CRITICAL THINKING Regardless of your area of study, arguably the greatest benefit
of your education is developing problem-solving and critical thinking skills. The Global Strategy
Group survey of executives revealed that the most sought-after skills for all entry-level employees
were problem solving (49%), collaboration (43%), and critical thinking (36%).3 Building your skills in
these areas is the overarching goal of this book. FOR YOUWHAT’S AHEAD IN THIS CHAPTER You’ll
learn how OB can drive your job and career success. We’ll explain why it’s important that you and
your employers invest in building both your human and social capital. We’ll also explore how ethics
are integral to long-term individual and organizational success and we’ll introduce a problem-
solving framework you can use in a wide variety of situations at school, work, and life more
generally. But what really powers this book is our Integrative Framework for Understanding and
Applying OB, which we introduce mid-chapter. This framework will help you organize and apply OB
concepts and tools as you learn them. Page 4 1.1THE VALUE OF OB TO MY JOB AND CAREER
MAJOR QUESTION How can I use knowledge of OB to enhance my job performance and career?
THE BIGGER PICTURE Are you uncertain about the value of organizational behavior (OB) and how it
fits into your curriculum, or even into your professional life? Use that uncertainty to judge how well
this section makes the case for the value of OB. You’ll see how OB knowledge and tools can
enhance your personal job performance and career success. Look for the differences between what
it takes to get hired versus promoted, and the importance of building your human and social
capital. All of these topics affect your future. The term organizational behavior (OB) describes an
interdisciplinary field dedicated to understanding and managing people at work. This includes selfmanagement. OB draws on research and practice from many disciplines to deal with how people
behave at work, including: • Anthropology • Economics • Ethics • Management • Organizational
Theory • Political Science • Psychology • Sociology • Statistics • Vocational Counseling As you can
see, OB is very much an applied discipline that draws from many sources; its value depends on its
usefulness to your job and career. In that spirit, we wrote this book to make the material as applied
and useful for you as possible. Let’s begin by looking at how OB compares to your other courses
and explain the contingency perspective, which is the fundamental premise of contemporary OB.
How OB Fits into My Curriculum and Future Success Consider how OB fits in with other courses in
your curriculum. Organizational behavior is an academic designation focused on understanding
and managing people at work. This includes managing yourself, as well as others, up, down, and
sideways. But unlike jobs associated with functional disciplines (like accounting, marketing, and
finance), you will not get a job in OB. So then, what is the benefit to learning about and applying OB?
The answer is that the effective application of OB is critical for your success in all fields and across
disciplines. As you’ll learn, technical knowledge associated with any given job is important, but
what makes the difference is your ability to influence, get along with, and manage others. People
skills! Applying OB knowledge and tools gives you job opportunities, sets you apart from your peers
and competition, and contributes to your success. And an important part of your success is your
ability to know which tools to use and under what circumstances. This is described as a
contingency approach to managing people and is the foundation of contemporary OB. Page 5 A
Contingency Perspective—The Contemporary Foundation of OBA contingency approach calls for
using OB concepts and tools as situationally appropriate, instead of trying to rely on “one best
way.” This means there is no single best way to manage people, teams, and organizations. The best
or most effective course of action instead depends on the situation. A particular management
practice that worked today may not work tomorrow. What worked with one employee may not work
with another. This is why the contingency approach is so central to OB. It is both pragmatic and
demanding. Pragmatically, the user of the approach is not looking for any single approved or
canned response but the one that will work most appropriately. Demanding, because the user of
the approach must often work to find that appropriate solution. We will expand on the contingency
approach later in this chapter. Harvard’s Clayton Christensen puts it like this: “Many of the widely
accepted principles of good management are only situationally appropriate.”4 In other words, don’t
use a hammer unless the job involves nails. You’ll learn in Chapter 13, for instance, that there is no
single best style of leadership. In this way, OB differs from many of your other courses in that
answers are not always black and white, right or wrong, but instead the best answer (behavior)
depends on the situation. The explicit consideration of the situation or environmental factors is
fundamental to OB and is emphasized later in the chapter and throughout the book. Accordingly, to
be effective you need to do what is appropriate given the situation, rather than adhering to hardand-fast rules. Organizational behavior specialists, and many effective managers, embrace the
contingency approach because it helps them consider the many factors that influence behavior and
performance within and among individuals, groups, and organizations. Whether you are a manager
or employee, you need to consider many potential factors that can influence your performance and
the performance of the people you may manage or affect. You also need to be aware of your own
preferences or typical responses, and question them so as to do what the situation requires, rather
than default to personal habit or organizational custom. Taking a broader, contingent perspective
like this is a fundamental key to your success in the short and long term. The following Example
box illustrates how Google has applied the contingency approach and changed some of its benefits
to more precisely meet employees’ preferences for work–life balance and parenthood.
EXAMPLEGoogle Search: “How Can We Keep Talented Employees?” While Google’s talent is
constantly being poached by its competitors, some employees simply quit, especially women. The
company noticed that many women were leaving, or, more precisely, not returning after maternity
leave. Some women of course choose to stay home after childbirth. However, Google realized that
such employees were leaving at twice the average rate of all employees. It then explored the
possibility that its policies might play a role. THE INDUSTRY STANDARDGenerally, the tech
industry, Silicon Valley in particular, offers 12 weeks of paid time off for maternity leave and seven
weeks for employees outside of California. NEW PLANGoogle’s response was to offer five months
of full pay and full benefits! Better still, new mothers can split the time and take some before the
birth, some after, and some later still when the child is older. NEW PLAN PLUSSeven weeks of
“new-parent” leave is now offered to all of its employees around the world. This enables new
mothers and fathers the opportunity to manage their time and new joy/baby.5 Other companies
expand these practices further still. Alston & Bird, an Atlanta-based law firm, provides employees
$10,000 and 90 days of paid leave toward adoptions. Infertility issues are also covered by their
health plan.6 YOUR THOUGHTS? 1.If you alone could make policies at Google (or where you work),
what would you do to keep valuable employees? 2.How could you apply the contingency approach
to make these and other policies more effective? 3.What else would you do? Page 6 Uncommon
SenseAt first glance the contingency perspective may look like simple common sense. But it’s
different. It attempts to overcome the limits of common sense by not settling for traditional options
if another solution may be more practical and effective. Similarly, understanding the Integrative
Framework and 3-Stop Problem Solving Approach you’ll learn about later provides more insight
than common sense alone. The goal of OB is to give you more than common sense and instead
enhance your understanding of situations at work and guide your behaviors. Moreover, common
sense has three main weaknesses that you need to consider and avoid. •Overreliance on hindsight.
Common sense excels in well-known scenarios with predictable outcomes. But much of modern
business involves uncertainty and adapting to change. In other words, common sense is especially
weak in responding to the unknown or unexpected. And because it focuses on the past, common
sense lacks vision for the future. •Lack of rigor. If we are comfortable with our commonsense
response, we may not apply the effort required to find the real problem when considering possible
causes. This will likely result in not choosing the optimal course of action or solution. If you lack
rigor, then you are unlikely to measure the right predictors and outcomes when solving problems.
•Lack of objectivity. Common sense can be overly subjective and lack a basis in science. In such
cases we are not always able to explain our reasoning to others, let alone apply it to new situations.
In Business News Daily, Microsoft researcher Duncan Watts says we love common sense because
we prefer narrative. “You have a story that sounds right and there’s nothing to contradict it.” Watts
contrasts a more effective approach, as outlined in his book Everything Is Obvious Once You Know
the Answer: How Common Sense Fails Us. He advocates using a scientific approach. “The
difference is we test the stories and modify them when they don’t work,” he says. “Storytelling is a
useful starting point. The real question is what we do next.”7 One way that OB moves beyond the
limitations of common sense is by its systematic and science-based approach to understanding
people and how they behave at work. OB therefore can make you more attractive to potential
employers and more effective once employed. Let’s explore this idea in more detail, beginning with
the importance of possessing and developing both hard and soft skills. Employers Want Both Hard
and Soft Skills Most of us know the difference between hard and soft skills. •Hard skills are the
technical expertise and knowledge to do a particular task or job function, such as financial analysis,
accounting, or operations. •Soft skills relate to our human interactions and include both
interpersonal skills and personal attributes. Employers are increasingly aware of the importance of
soft skills. “People rise in organizations because of their hard skills and fall due to a dearth of soft
skills.”8 Maybe that’s why firms tend to weight soft skills so heavily when hiring for top positions.
Recruiters rate interpersonal skills, cultural fit with the company, and leadership attributes as the
top three selection criteria for MBA graduates.9 Experts agree: Anyone can take a course in C11,
but it’s not going to land you the job. . . . The most sought-after skill-sets for recruiters are
becoming less and less about proficiency in specific [technical or job skills] and more about how
you think . . . and work within the context of the team. Learning [the technical details or skills of a
job] is the easy part. Having the mindset to apply it . . . [and social/psychological dexterity] are the
critical skills.10 Page 7 TABLE 1.1FOUR SKILLS MOST DESIRED BY EMPLOYERS SKILL
DESCRIPTION THIS BOOK 1. Critical thinking Using logic and reasoning to identify the strengths
and weaknesses of alternative solutions, conclusions, or approaches to problems. Fundamental to
this book and woven throughout. We designed features and exercises to help you think critically
and apply your OB knowledge and tools. 2. Problem solving Identifying complex problems and
reviewing related information to develop and evaluate options and implement solutions. Our
problem-solving approach is used throughout the book. We repeatedly ask you to apply your
knowledge for solving problems at school, work, and life. 3. Judgment and decision making
Considering the relative costs and benefits of potential actions to choose the most appropriate
ones. Integral to problem solving and success. We integrate judgment and decision making in all
problem-solving content and devote an entire chapter to these soft skills. 4. Active listening Giving
full attention to what other people are saying; taking time to understand the points being made;
asking questions as appropriate and not interrupting. Key success factor at work. We address this
directly in the chapters on influencing others and leadership. SOURCE: Adapted from M. Casserly,
“The 10 Skills That Will Get You Hired in 2013,” Forbes, December 12, 2012,
http://www.forbes.com/sites/meghancasserly/2012/12/10/the-10-skills-that-will-get-you-a-jobin-2013/; and M. Robles, “Executive Perception of the Top 10 Skills Needed in Today’s Workplace,”
Business Communication Quarterly, 2012, 453–65. The above quote comes from a study by
CareerBuilder on the most desired skills for the top 10 jobs in 2013. Table 1.1 shows the top four
such skills, along with a brief explanation of how they are directly addressed in this book. What do
you notice about the top four items? Which are hard skills? None! Instead, all are soft skills, the
skills you need to interact with, influence, and perform with others. Soft skills are not job specific.
They are portable skills, more or less relevant in every job, at every level, and throughout your
career.11 All of these and many more soft skills represent OB topics covered in this book, whether
in the personal or interpersonal domain: Personal attributes (build goodwill and trust; demonstrate
integrity) •Attitudes (Chapter 2) •Personality (Chapter 3) •Teamwork (Chapter 8) •Leadership
(Chapter 13) Interpersonal skills (foster respectful interactions) •Active listening (Chapters 12 and
13) •Positive attitudes (Chapters 2 and 7) •Effective communication (Chapter 9) How OB Fits into
My Career Hard skills are of course important, as they give you credibility. For instance,
accountants need to understand debits and credits; finance people, net present value; and both
need to understand cash flows. However, to be competitive and give employers what they want,
you need to develop your soft skills as well. In fact, certain kinds of soft skills increase in
importance over one’s career and help set you apart from your competition.12 To highlight this
point, think about the criteria used for hiring workers versus promoting them. •What It Takes to Get
Hired. Regardless of where you are in your career today, ask yourself: What criteria were used to
hire you for your first job? What factors did your hiring manager consider? (If your first job is still
ahead of you, what factors do you imagine are most important?) Most of you will identify things like
education, grades, interpersonal skills, and experience. In short, for most jobs you are selected for
your technical skills, your ability to do the given job. Firms may assume you possess particular
competencies needed to meet basic job responsibilities based on your education (say an
accounting degree if you’re going to be an auditor or a finance degree if you’re going to be an
analyst). Page 8 •What It Takes to Get Promoted. Now ask yourself, what criteria are being used for
promotions? Of course, often performance in the current job will be a primary consideration.
However, you and many other employees may fail to realize that your perceived ability to get things
done through others and manage people will be another important deciding factor. If you and three
of your coworkers are all vying for an open manager’s job, likely all four of you perform at a high
level. Therefore performance isn’t the deciding factor. Instead, it is your perceived ability to directly
or indirectly manage others! An understanding of OB can give you extremely valuable knowledge
and tools to help “sell” yourself during job interviews. Applying this OB knowledge can also
enhance your chances for promotions. Roxanne Hori, an associate dean at Northwestern
University’s Kellogg School of Management, echoes this argument: “Yes, your knowledge of the
functional area you’re pursuing is important. But to succeed longer term . . . having strong team
skills and knowing how to build and manage relationships were seen as just as important.” One
executive she interviewed suggested that students “take as much organizational behavior
coursework as possible . . . because as you move into leadership roles, the key skills that will
determine your success will be around your ability to interact with others in a highly effective
fashion.”13 We make this point visually in Figure 1.1. It illustrates how technical or job-specific
skills decline in importance as you move to levels of higher responsibility, while personal skills
increase. Performance Gives Me CredibilityPerformance matters because it gives you credibility
with your peers and those you may manage. Just be aware that early in your career your bosses
will be looking for more. They will evaluate your management potential, and their opinion affects
your opportunities. So even in a line (non-management) position you need to know how to: •Apply
different motivational tools (Chapter 5) •Provide constructive feedback (Chapter 6) •Develop and
lead productive teams (Chapters 8 and 13) •Understand and manage organizational culture and
change (Chapters 14 and 16) Therefore, knowledge of OB is critical to your individual performance,
your ability to work with and manage others, and your career success (promotions, pay raises,
increased opportunities). FIGURE 1.1RELATIVE IMPORTANCE OF DIFFERENT SKILLS BASED ON
JOB LEVEL SOURCE: Adapted from M. Lombardo and R. Eichinger, Preventing Derailment: What to
Do Before It’s Too Late (Greensboro, NC: Center for Creative Leadership, 1989). Page 9 1.2HUMAN
AND SOCIAL CAPITAL MAJOR QUESTION How can human and social capital affect my career
opportunities and job performance? THE BIGGER PICTURE You’ve likely heard the expression—“It’s
not what you know, but who you know” that determines whether you get a particular job. We argue
that both matter, and that you and your employers benefit from investing in what you know and
who you know. You may have older or retired relatives who worked the same job for all of their
lives. But such “cradle-to-grave” careers are increasingly rare. The U.S. Bureau for Labor Statistics,
examining a younger segment of the baby-boomer generation (born 1946–1964), finds that the
average number of jobs was 11! Men had on average 11.4 jobs and women, 10.7. But we’re not all
average. Twenty-five percent had 15 or more jobs and 12 percent had zero to four. The same study
revealed that changes continue into middle age, where 33 percent of employees held jobs for less
than a year!14 It thus seems extremely unlikely you will experience a “cradle-to-grave” career with
one company as in generations past. It therefore is extremely important that you continually
develop your skills and your network. The first is part of your human capital and the second, part of
your social capital. Human and Social Capital as Investments Just as individuals and companies
invest in more traditional forms of capital (e.g., real estate, stocks, bonds, facilities, and equipment)
to earn a positive future return, both employees and their employers invest in human and social
capital with the intention of reaping future returns or benefits. This is good news to all of us, as we
can continue to increase our value through such investments. Human resource experts
acknowledge this development, which is highlighted in the following comment: “In the modern
knowledge-based and service-oriented economy, the success of many firms has shifted from
acquisition of tangible (physical) resources to the accumulation of intangible (human)
resources.”15 In the ideal job environment, both employer and employee will invest in these two
forms of capital, which is why we discuss them together. Table 1.2 lists some basic forms of
human and social capital. A Closer Look at Human CapitalRemember that human capital is the
productive potential of an individual’s knowledge, skills, and experiences. Potential is the operative
word in this intentionally broad definition. A present or future employee with the right combination
of knowledge, skills, experience, and motivation represents human capital with the potential to give
the organization a competitive advantage. For that reason today’s executives concern themselves
with recruiting and retaining talented people, developing employees’ skills, keeping them fully
engaged, and preparing for the day when valuable people retire or leave for another employer.16
Research also supports the benefits of human capital, such that employers who invest in
employees’ human capital by building their skills, purposefully motivating them, and providing
opportunities also enjoy lower turnover and improved financial outcomes.17 Page 10 TABLE 1.2A
BRIEF LIST OF VARIOUS FORMS OF HUMAN AND SOCIAL CAPITAL HUMAN CAPITAL SOCIAL
CAPITAL Education Social relationships Experience Family relationships Knowledge, skills, and
abilities Relationships within current employer Vision Relationships within industry Confidence and
self-esteem Professional memberships Initiative and entrepreneurship Goodwill Adaptability and
flexibility Trust Readiness to learn Status Reputation Support from others SOURCE: Adapted in part
from J. A. Felicio, E. Couto, and J. Caiado, “Human Capital and Social Capital in Entrepreneurs and
Managers of Small and Medium Enterprises,” Journal of Business Economics and Management,
2012, 395–420. The topic of a firm’s human capital arose when Tim Cook, for example, replaced
Steve Jobs as the CEO of Apple. Many argue that it is not possible to actually replace Jobs, but
Apple nevertheless needed a capable executive to replace the then-ailing icon. It helped that Cook
had served as interim CEO three times previously when Jobs was dealing with cancer and was the
chief of operations before taking the top spot full time. Add to that seven years of previous
experience as senior and executive VP. And before Apple he also was a VP at Compaq computers
(now part of Hewlett-Packard) and COO of Intelligent Electronics. Cook also worked in a paper mill
and aluminum plant. Until Cook assumed the CEO role on a permanent basis in late 2011, few
people knew who he was and even fewer recognized him or knew much about his background.18
What does Steve Jobs’s successor’s résumé need to look like? What human capital characteristics
are needed? Tim Cook’s résumé is quite varied and quite impressive. How well do you think his
experience fits the needs of the CEO job at Apple? The value of each employee’s individual human
capital (e.g., knowledge, skills, and experience) accumulates to produce a company’s overall
human capital.19 Think of the massive human capital that exists for companies such as Apple and
Google. No wonder so many other companies continually attempt to poach their talent! A Closer
Look at Social CapitalRecall that social capital is the productive potential resulting from
relationships, goodwill, trust, and cooperative effort. As described in Table 1.2, with social capital
the focus shifts from the individual to social units (e.g., friends, family, company, group, club, or
nation). Again, the word potential is key. But here the potential lies in your relationships with other
people rather than in your own skills, abilities, and experience. Author and speaker Joe Gerstandt
said, “If you want more influence in your organizations, relationships will help you get there. . . .
Having thousands of friends on Facebook isn’t the solution . . . social capital is about quality not
quantity.”20 Think of social capital as a means for leveraging or utilizing the knowledge, skills,
experience, and relationships of people you know. We’ve all been told “network, network, network”
and “it’s not what you know but who you know.” These common sayings support the importance of
the relationships that make up your social capital. Page 11 Building social capital, by Identifying
and building relationships with others, can improve your transition and performance at a new job.
Researchers and businesses continue to discover how social capital can improve operations. In a
recent study in the journal Human Relations, Russell Korte and Shumin Lin looked at how new hires
are brought up to speed. They found that when newly hired workers developed social capital with
other team members in their work groups, there was a correlation with better job satisfaction and
faster learning of their responsibilities and fitting in to the workplace culture. More than manager
supervision, social capital was key to successful integration. Higher quality relationships with
members of the work group translated into greater access to information and resources.21
Companies are starting to realize the business potential in their employees’ relationships. The firm
Ernst & Young (EY) gives preference in the selection process to candidates referred by existing
employees. Riju Parakh, for example, submitted her résumé through normal channels. However, on
the basis of the recommendation of a friend who works at EY, Riju’s résumé was fast-tracked—
separated from the “pile of thousands” and inserted into the interview process—resulting in her
being hired within three weeks. She said, “You know how long this usually takes . . . it was
miraculous.” EY says employees now recommend approximately 45 percent of non–entry level
hires—up from 28 percent in 2010.22 Other companies provide incentives and rewards for such
recommendations, all as means for identifying and attracting talent contained in employees’
networks. How to Build Human and Social Capital How can you build these valuable assets? Table
1.3 provides several examples.You can also increase your human capital by building on strengths
and overcoming weaknesses identified by completing the Self-Assessments in this book. Human
capital can be either specific to your current job (e.g., knowledge of your company’s products) or
more generic and serve you across jobs (e.g., Series 7 certification to sell financial products).
Social capital can be either internal or external to your current organization. TABLE 1.3WAYS OF
BUILDING MY HUMAN AND SOCIAL CAPITAL HUMAN CAPITAL EXAMPLES AND PURPOSES 1.
Training Software certification to gain knowledge and skills to improve performance in current job
2. Work-based development opportunities Job rotation (Chapter 5), shadowing, and crossfunctional project teams (Chapter 8) to build your knowledge and your relationships 3. Learning
activities outside of work Fluency gained in a second language to increase opportunities within and
outside of current employer 4. Career planning Opportunities identified inside or outside of your
current place of employment and assessing your strengths and weaknesses SOCIAL CAPITAL
EXAMPLES AND PURPOSES 1. Internal Mentoring relationship to provide guidance and
opportunities (Chapter 13) Membership on a company softball team to build relationships outside
of your work area 2. External Conference attendance to meet people at other companies and learn
of other job opportunities Join local, industry-specific organizations to identify new customers
SOURCE: Derived from T. W. H. Ng and D. C. Feldman, “The Effects of Organizational
Embeddedness on Development of Social and Human Capital,” Journal of Applied Psychology,
2010, 696–712. Page 12 TAKE-AWAY APPLICATION—TAAP Using Table 1.3: 1.Think of your most
desired job. Now describe what you could do to develop your human and social capital to make you
a more attractive job candidate. 2.Assume you graduate this year and are fortunate enough to get a
job interview with your most desired employer. Explain in terms of human and social capital how
you would promote or sell yourself in that interview. Both forms of capital are extremely important.
We therefore strongly encourage you to take initiative—build your own human and social capital
and look for employers that also will make such investments in you! How Self-Awareness Can Help
You Build a Fulfilling Career To have a successful career, you need to know who you are and what
you want. Larry Bossidy (former CEO of Honeywell) and Ram Charan (world-renowned
management expert) said it best in their book Execution: “When you know yourself, you are
comfortable with your strengths and not crippled by your shortcomings. . . . Self-awareness gives
you the capacity to learn from your mistakes as well as your successes. It enables you to keep
growing.”23 They also argue that you need to know yourself in order to be authentic—real and not
fake, the same on the outside as the inside. This is essential to influencing others (which we
discuss in detail in Chapter 12). People don’t trust fakes, and it is difficult to influence or manage
others if they don’t trust you. As professors, consultants, and authors, we couldn’t agree more. We
are strong advocates of self-awareness, and to help you increase yours we include multiple SelfAssessments in every chapter. The Self-Assessments are an excellent way to learn about yourself,
measure the extent to which you possess many of the OB topics we will discuss, and apply
knowledge of both yourself and OB to school, work, and your personal lives. Put another way, the
Self-Assessments are an interesting and especially effective way to make OB come alive and be
practical for you. We therefore encourage you to go to the web, complete the assessments, and
then answer the questions included in each of the Self-Assessment boxes. Let’s start with you
learning about your motivation to manage others, considering the strong case we made that
working with and through others is critical for your near and long-term success. First, realize that
many employees never manage others. Sometimes this is by choice; other times it is because they
shouldn’t or never get the chance! But what about you? How motivated are you to manage others?
Go to connect.mheducation.com and take this Self-Assessment to learn your motivation for
managing others. What you learn might surprise you. Surprised or not, understanding more
precisely your motivation to manage others can guide your course selection in college and your job
choices in the marketplace. SELF-ASSESSMENT 1.1How Strong Is My Motivation to Manage? Go to
connect.mheducation.com and when finished respond to the following: 1.Does this instrument
accurately assess your potential as a manager? Explain. 2.Which of the seven dimensions do you
think is likely the best predictor of managerial success? Which is the least? Explain. 3.The
instrument emphasizes competition with others in a win-lose mentality. Describe the pros and
cons of this approach to management. Page 13 1.3RIGHT VS. WRONG—ETHICS AND MY
PERFORMANCE MAJOR QUESTION Why do people fall into ethical lapses, even unwittingly, and
what lessons can I learn from that? THE BIGGER PICTURE If you were asked, “Do you know right
from wrong? Are you secure in your ethics?” you would likely answer “yes” to both questions.
What’s interesting is that most people who suffer ethical lapses also answer yes. OB can teach you
about the drivers of unethical behavior, and in the process improve your awareness and enable you
to reduce your risk. You’ll learn that even though most unethical behavior is not illegal, it still
causes tremendous damage to people and businesses. Fortunately, the OB concepts and tools you
pick up through this course will help you recognize and navigate ethical challenges. major question
Ethics is concerned with behavior—right versus wrong, good versus bad, and the many shades of
gray in between. We present ethics here at the start of your OB journey and weave it throughout the
book for three key reasons. 1.Employees are confronted with ethical challenges at all levels of
organizations and throughout their careers. 2.Unethical behavior damages relationships, erodes
trust, and thus makes it difficult to conduct business. 3.Unethical behavior also reduces
cooperation, loyalty, and contribution, which of course hurts the performance of individuals, teams,
and organizations. Ethics also gets priority because many OB topics have direct and substantial
influence on the ethical conduct of individuals and organizations. Notably, reward systems
(Chapter 6), decision making (Chapter 11), leader behavior (Chapter 13), and organizational culture
(Chapter 14) all can powerfully affect ethical conduct at work. Let’s begin by describing the legal
implications, frequency, causes, and solutions of unethical behavior at school and work. Cheating
In 2013, Lance Armstrong made alarming public confessions of blood doping and performance
enhancing drug (PED) use during his cycling career (legal charges were ultimately filed). Not long
after, many professional baseball players also were accused of PED use. Studies revealed that 87
percent of undergraduate business students admitted to cheating on exams!24 And research
shows that pressure to perform starts early in life. A survey of 787 youngsters ages 13 to 18 found
that “44 percent of teens feel they’re under strong pressure to succeed in school, no matter the
cost. Of those, 81 percent believe the pressure will be the same or worse in the workplace.”25
Anonymous surveys by the Josephson Institute of over 23,000 students from private and public
high schools across the United States found 59 percent admitted cheating on a test in 2009 and 51
percent in 2011. Thirty-two percent reported plagiarizing via the Internet in 2011, down from 34
percent in 2009. The Institute noted that for the first time in a decade, “students are cheating, lying
and stealing less than in previous years.”26 What do you think the incidence is at your school? Now
let’s explore other forms of unethical conduct and their legality, frequency, and solutions. Page 14
Some of Armstrong’s actions will cause him legal troubles, but what effect will his cheating have on
the sport of cycling? Other professional sports? What can be done to prevent cheating like
Armstrong’s? Ethical Lapses—Legality, Frequency, Causes, and Solutions “The vast majority of
managers mean to run ethical organizations, yet corporate corruption is widespread.”27 You likely
recognize the names of some of the executives and scandals of the past few decades that
bankrupted the companies they led, destroyed the lives of many employees, and caused enormous
losses for investors and customers: Kenneth Lay and Jeff Skilling (Enron, 2001), Bernie Ebbers
(WorldCom, 2002), and, of course, Bernie Madoff (Madoff Investment Securities LLC, 2009). None of
these leaders acted alone. To clarify, we are not indicting other employees—that is a matter for the
courts. Our point is that each of these disgraced captains of industry led companies that in most
cases employed thousands of other people. Surely these companies did not advertise for and hire
thousands of criminally minded individuals to help the leaders in their criminal endeavors. The
reality is that the degree of knowledge and involvement on the part of these other employees
ranged from intense and detailed to little or none. So how does the work environment produce
unethical conduct, sometimes on an extreme scale, from people who are otherwise good, wellintentioned, and on the right side of the law? Knowledge of OB helps you answer this question.
Unethical Does Not Mean IllegalForms of unethical conduct and the degree of its consequences
vary greatly. At the extreme we have highly publicized criminal acts of now-jailed executives like
those noted above, forcing losses on employees, investors, and other stakeholders (e.g., suppliers)
that sometimes reach billions of dollars! While these examples filled the headlines, they are the
exception. The truth is that very few unethical acts are illegal, most are not punished in any way,
and even if illegal few are prosecuted. Page 15 This means you should not rely on the legal system
to manage or assure ethical conduct at work. For instance, FoxConn, Apple Computer’s number one
supplier in China, has been in the spotlight for its highly publicized repugnant treatment of its 1.2
million Chinese employees—14-hour workdays, 6–7 days per week schedules, low wages, and
retaliation for protesting.28 American Airlines pilots provided another example in 2012 when they
created widespread slowdowns in flights to pressure the company in negotiations with their union.
American’s on-time performance was 48 percent versus 77 percent for Southwest and 69 percent
for Delta (on-time was 80 percent in the previous period). Such slowdowns had enormous costs
and inconveniences for their thousands of customers.29 The following Example box provides
another notable instance of how widespread unethical behavior has resulted in virtually no legal
consequences. EXAMPLEWrong? Absolutely! Illegal? Seemingly Not. Unethical behavior is rarely
illegal. The Wall Street meltdown of 2008–2009 that caused the Great Recession has produced very
few prosecutions and virtually no convictions. The US Department of Justice and the Securities and
Exchange Commission keep surprisingly little related data. Why? “I can tell you why you wouldn’t
keep the data,” said economics and law professor William Black: “Because it would be really
embarrassing.” Of the more than 14,000 financial fraud cases during the period, only 17 involved
CEOs and other executives, and only one of these was directly related to the financial crisis (a case
against three Credit Suisse employees for inflating mortgage bond values). Eric Holder, the US
Attorney General, said that the conduct that led to the crisis was “unethical and irresponsible.” And
“some of this behavior—while morally reprehensible—may not necessarily have been criminal.”30
YOUR THOUGHTS? 1.What is your reaction? 2.If you think the executives (and perhaps other
employees) of financial institutions should be punished, then describe what you think is
appropriate. 3.Alternatively, if you think they should not be punished, then explain why. Why Ethics
Matter to Me and My EmployerCriminal or not, it is important to realize that unethical behavior
negatively affects not only the offending employee but also his or her coworkers and employer.
Unethical behavior by coworkers (e.g., company executives) can make you look bad and tarnish
your career. SAC Capital Advisors, for example, is one of the most successful hedge funds in recent
years. But the fund and its founder, Steven Cohen, were dogged throughout 2012–2013 by
suspicions of potential insider trading. Their troubles were in part due to the fact that many traders
with ties to SAC have been convicted or pled guilty to insider trading. Before any formal charges
were made against the firm itself or its founder, clients withdrew nearly $2 billion in assets.31 SAC
investors ultimately withdrew even more money, over a billion dollars in fines were levied, and the
fund was ordered to close. To make this more personal, imagine you are interviewing for a job. How
would you explain your past employment history if it included jobs at SAC, Enron, Countrywide, MF
Global, or Madoff and Associates? While you certainly would find a way, it is safe to assume that
you’d rather not have to make such explanations. Understanding ethics improves your job
performance and increases your career opportunities and success. Research shows that
“sustainable businesses are led by CEOs who take a people-centered, inclusive approach rather
than a controlling, target-driven one. They are people who listen, who foster cultures in which
employees are not scared to point out problems and in which staff feel they have a personal
responsibility to enact corporate values, be they health and safety concerns or putting the client’s
interests first.”32 Ethical DilemmasEthical dilemmas involve situations with two choices, neither of
which resolves the situation in an ethically acceptable manner. Such situations surround us at
school and work. They highlight the fact that choosing among available options is not always a
pure choice between right versus wrong. As a result, many ethical dilemmas place us in an
uncomfortable position. An excellent example is those who are responsible for determining which
employees are downsized. When Audi of North America decided to relocate a large percentage of
its operations from one part of the United States to another, one of the finance managers was
responsible for “working the numbers” on how many people would be invited to relocate, how many
would be terminated, and what types of severance packages to offer and to whom. Page 16 All of
this is necessary and, of course, is somebody’s responsibility. The problem however was that many
of these people were friends and colleagues of the person doing these analyses. In other words,
she had the “hit list” for weeks and was unable to share this information with the others, even as
they worked side-by-side, had lunch, and did things socially in the meantime. EXAMPLEThe
Whistleblower’s Dilemma Whistleblowing often creates a particularly challenging type of ethical
dilemma. People do wrong, bad, unethical, and even illegal things at work. And you and other
employees may know that they did. The dilemma is what to do about it. Many times you’re tempted
to reveal the behavior to management or to the authorities—blow the whistle. This seems like the
“right thing to do.” Depending on the situation, you may even profit, but you might also pay. Sherron
Watkins became famous as the whistleblower that helped undo Enron. She now earns a living
speaking about her experience and ethics more generally, which pays far less than jobs in the
energy sector. WHISTLEBLOWING FOR PROFIT Dodd-Frank legislation and some regulatory
agencies provide incentives for whistleblowers. Some can receive up to 30 percent of any
settlement, if regulators collect over $1 million due to the infraction.33 Bradley Birkenfeld, an exbanker for UBS, was awarded $104 million for exposing how his bank helped US clients hide money
in Swiss accounts. Cheryl Eckard was awarded $96 million for revealing manufacturing flaws in the
production of some of Glaxo Smith Kline’s pharmaceuticals.34 THE COSTS As a VP at Chase Bank,
Linda Almonte and her team were asked to review more than 20,000 past-due credit card accounts
before they were sold to another company. “Almonte’s team reported back to her that nearly 60
percent contained some sort of major error, including discrepancies about the amount or whether
the court had indeed ruled for the bank. Concerned, Almonte went up the chain of command,
flagging the errors and encouraging management to halt the sale. Instead, the bank fired Almonte
and completed the deal.”35 Nobody would hire her, which ruined her professionally and financially.
She and her family ultimately moved to another state, where they lived in a hotel while she
continued to look for work. WHAT’S THE LESSON? Don’t underestimate the likelihood and costs of
retaliation. Codes of ethics that forbid retaliation are just empty words if unethical people aren’t
held accountable. And a lack of accountability is the hallmark of corrupt organizations. “Doing the
right thing” can be very costly. YOUR THOUGHTS? 1.What can employers do to encourage and
avoid punishing whistleblowers? 2.What can you do as an individual employee when you witness or
become aware of unethical conduct? What Causes Unethical Behavior?Harvard professor Max
Bazerman and Ann Tenbrunsel of the University of Notre Dame have studied ethical and unethical
conduct extensively. They concluded that while criminally minded people exist in the workplace,
most are in fact good people with good intentions. Instead of ill-intent, Bazerman and Tenbrunsel
contend that cognitive biases (see Chapter 4) and organizational practices “blind managers to
unethical behavior, whether it is their own or that of others.”36 Table 1.4, which summarizes their
findings, outlines causes of unethical behavior and what can be done to address that behavior as
employees and managers. Page 17 TABLE 1.4CAUSES OF UNETHICAL BEHAVIOR AT WORK AND
WHAT TO DO ABOUT IT SOURCE: Reprinted by permission of Harvard Business Review. “Ethical
Breakdowns: Good People Often Let Bad Things Happen” by M. Bazerman and A. Tenbrunsel, April
2011. Copyright 2011 by the Harvard Business School Publishing Corporation; all rights reserved.
TAKE-AWAY APPLICATION—TAAP 1.Think of the three most common forms of unethical behavior
at school or where you work. Be specific. 2.Using Table 1.4, determine what the likely causes are
for each. 3.Describe one thing that can be done to prevent or remedy each of the three most
common unethical behaviors you noted in question 1. Use Table 1.4 for ideas/suggestions. What
about Unethical Behavior in College and When Applying for Jobs?A study of graduate students,
including MBAs, in the United States and Canada found that peer behavior was by far the strongest
predictor of why students cheated, followed by severity of potential penalties, and certainty of being
reported.37 However, don’t be too quick to blame it on your lying, cheating classmates. The same
researchers acknowledge that there are many other potential reasons for cheating, such as the
perceived fairness in grading. It also is possible that students see different degrees of cheating—for
instance, in homework assignments versus exams. Page 18 As for job hunting, an analysis of 2.6
million job applicant background checks by ADP Screening and Selection Services revealed that
“44 percent of applicants lied about their work histories, 41 percent lied about their education, and
23 percent falsified credentials or licenses.”38 Can you imagine being a recruiter? If you believe
these numbers, then it is likely that half of the people you interview are lying to you about
something! Like cheating in school, many potential reasons for unethical behavior at work exist,
beyond those listed in Table 1.4, such as: 1.One’s personal motivation to perform (“I must be
number 1”) 2.Pressure from a supervisor via unrealistic performance goals along with threats for
underperforming 3.Reward systems that incentivize bad behavior 4.Employees’ perception of no
consequences for crossing the line39 Some of the most unethical people don’t see themselves this
way. The Enron executives, Ken Lay (until he died) and Jeff Skilling (to this day), emphatically
claimed their innocence. And while a skeptic could find it hard to believe, they may truly believe
this. We explore such self-serving bias in Chapter 4. Nevertheless, it will be helpful for you to learn
more specifically about your own ethical tendencies. Some people view ethics in ideal terms, which
means that ethical principles or standards apply universally across situations and time. Others,
however, take a relativistic view and believe that ethical standards are dependent on the situation.
Take Self-Assessment 1.2 to learn about your own views. Knowing this will help you understand
your view of ethics, as well as that of others. SELF-ASSESSMENT 1.2Assessing My Perspective on
Ethics Go to connect.mheducation.com and when finished respond to the following: 1.Are your
views more idealistic or more relativistic? 2.What do you think about students cheating on
homework assignments in school? What about them cheating on exams? 3.Are your answers
consistent with your score? Explain. 4.Given your score, and assuming you’re a manager, what are
the implications for how you would handle the unethical behavior of somebody you manage? What
about the unethical behavior of your boss? What Can I Do about It? You, like most everybody else,
have or will likely witness either questionable or even blatantly unethical conduct at work. And
when this happens you’ll likely think of many excuses for not confronting the unethical conduct.
Excuses include the following: This is common practice, the incident is minor, it’s not my
responsibility to confront such issues, and loyal workers don’t confront each other. While such
rationalizations for not confronting unethical conduct are common, they have consequences for
individuals, groups, and organizations. What can you do? Below are a few suggestions: 1.It’s
Business; Treat It That Way. Ethical issues are business issues, just like costs, revenues, and
employee development. Therefore, collect data and present a convincing case against the unethical
conduct just as you would to develop a new product or strategy. 2.Accept that Confronting Ethical
Concerns Is Part of Your Job. Whether it is explicit in your job description or not, ethics is
everybody’s job. If you think something is questionable, then take action. Page 19 Edward Snowden
blew the whistle on the NSA’s monitoring of phone and Internet communications. His actions had a
enormous impact on his own life, as well as policies and practices within and between companies,
industries, and even countries! 3.Challenge the Rationale. Many issues occur despite actual policy
against it. If this is the case, then ask: “If what you did is common practice or okay, then why do we
have a policy forbidding it?” Alternatively, and no matter the rationale, you can ask: “Would you be
willing to explain what you did and why in a meeting with our superiors or customers, or, better still,
during an interview on the evening news?” 4.Use Your Lack of Seniority or Status as an Asset. While
many employees unfortunately use their junior status to avoid confronting ethical issues, being
junior can instead be an advantage. It enables you to raise issues by saying, “Because I’m new, I
may have misunderstood something, but it seems to me that what you’ve done is out of bounds or
could cause problems.” 5.Consider and Explain Long-Term Consequences. Of course, many ethical
issues are driven by temptations and benefits in the short term. It therefore can be helpful to frame
and explain your views in terms of long-term consequences. 6.Solutions—Not Just Complaints.
When confronting an issue, you will likely be perceived as more helpful and taken more seriously if
you provide an alternative course or solution. Doing so will also make it more difficult for the
offender to disregard your complaint.40 What Role Do Business Schools Play?To be clear, each of
us as individuals is first and foremost responsible for our own ethical conduct. However, we also
know that our conduct is shaped by the environment and people around us. Leaders have particular
influence on the ethical policies, practices, and conduct of organizations. For instance, a recent
study reported that 35 percent of all undergraduate degrees are in business, yet 75 percent of
business schools do not require ethics courses!41 If ethics are so important, then this disparity
begs the question: “Why?” The researchers asked this question and investigated what role the
deans, leaders of business schools, played in this striking disconnect. They found that the gender
and academic background of the deans, along with the private-public nature of the school,
predicted the likelihood of requiring ethics courses. Female deans with a background in
management were most likely to require ethics courses, while men with economics and finance
backgrounds were least likely. Private and religiously affiliated schools were more likely than
publics.42 What is the case at your school? Does it align with these findings? Page 20
1.4APPLYING OB TO SOLVE PROBLEMS MAJOR QUESTION How can I apply OB in a practical way
to increase my effectiveness? THE BIGGER PICTURE Now that you know that OB is not just
common sense, the challenge is to find a way to organize and apply its many concepts and
theories. In this section, we use the metaphor of taking a journey to explain how you can apply OB.
The journey includes three stops: Stop 1—define the problem; Stop 2—identify potential causes
using OB concepts; and Stop 3—make recommendations. We all encounter problems in our lives. A
problem is a difference or gap between an actual and a desired situation. Problems arise when our
goals (desired outcomes) are not being met (actual situation). So it is important to carefully
consider what your goal or desired outcome is in order to define the problem appropriately. In turn,
problem solving is a systematic process of closing these gaps. For example, Jeff Bezos, CEO and
founder of Amazon, famously downplays the importance of meeting quarterly numbers to please
Wall Street. Instead, Bezos defines his problem as delivering superior service to customers, today,
tomorrow, and forever. His problem-solving efforts are thus more likely to focus on innovative
products and delivery times than profit margins and earnings per share. Military operations often
involve extremely complex problems and coordinating the efforts of many individuals. This White
House photo depicts President Obama and the national security team monitoring the raid of Osama
bin Laden’s compound. The decision and eventual action took place in the context of tremendous
uncertainty and time pressure, and the outcome had (potentially) enormous consequences. Can
you think of a problem you confronted that had similar characteristics? Page 21 If you view
problem solving as a journey, like we suggest in this book, then you need to know where you are
and where you want to go. From a problem solving perspective, you could view this distance as a
problem, as it represents a gap between your current and desired location. Identifying and selecting
route is another part of the journey and problem solving process. Problem-solving skills are
increasingly important in today’s complex world. Loren Gary, associate director at Harvard’s Center
for Public Leadership, echoes this conclusion: “The ability to identify the most important problems
and devising imaginative responses to them is crucial to superior performance in the modern
workplace, where workers at all levels of the organization are called upon to think critically, take
ownership of problems, and make real-time decisions.”43 The understanding and application of OB
knowledge and tools will help you do these very things. To help you increase your personal
performance and well-being at school, work, and home, we created an informal approach you can
use today to apply OB tools and concepts to help you solve problems. It’s simple, practical, and
ready for you to use now. A 3-Stop Journey We compare problem solving in OB to taking a journey.
You choose a destination. You plan your route and identify which roads you’ll take and important
stops along the way. Then you take the trip. Basics of the 3-Stop ApproachOur applied approach to
problem solving proposes three activities or stops along the way: Stop 1: Define the Problem. The
definition of the problem is closely linked to the desired outcome. Students and managers routinely
make the same common mistake during Stop 1—they don’t spend enough time defining the
problem. One reason for this is that most people identify problems reactively—after the fact—which
causes them to quickly jump to conclusions. People make snap judgments or assumptions that
lead to selecting the wrong causes and solutions for the problem at hand. All of us would likely
benefit from the comment of Albert Einstein. He said: “If I were given one hour to save the planet, I
would spend 59 minutes defining the problem and one minute resolving it.” Why don’t we take
Professor Einstein’s advice? Page 22 Stop 2: Identify Potential Causes Using OB Concepts and
Theories. So far, you already have OB concepts like the contingency perspective, human and social
capital, and ethics—and many more are coming. The more options you have to choose from, the
more likely you will identify the appropriate cause(s) and response Stop 3: Make Recommendations
and (if Appropriate) Take Action. In some workplace situations you will be making
recommendations and in others you will also be implementing the recommendations. To be
successful in Stop 3, it is necessary to define the problem appropriately and identify the likely
causes. How This Problem-Solving Approach Develops Throughout the BookAs we introduce more
OB concepts and tools, this approach will become richer and more useful. After all, there are many
useful approaches to solving problems. As your knowledge deepens, you’ll see in Chapter 11 that
this approach is an abbreviated version of the rational approach to decision making. Along the way
you’ll learn that the 3-Stop approach shows you how to effectively apply your OB knowledge to
produce better performance for you, your team, and your organization. Tools to Reinforce My
Problem-Solving Skills Because of the value of problem solving at school, work, and home, we
created numerous opportunities for you to master this skill while applying OB. Each chapter, for
instance, includes the following features: •Problem-Solving Applications—A brief example or minicase that presents a problem or challenge. You are asked to apply the 3-Stop approach to each.
•Self-Assessments—A validated instrument that allows students to immediately assess personal
characteristics related to OB concepts, frequently with a personal problem-solving focus, and often
followed by a Take-Away Application (TAAP) (see below). •Take-Away Applications (TAAPs)—You
are asked to apply what you just learned to your own life at school, at work, or socially. •End of
Chapter Problem-Solving Application Case—Full-length case that requires you to apply OB
knowledge gained in that particular chapter to define the problem, determine the causes, and make
recommendations. How good are your problem-solving skills? To get you started, take SelfAssessment 1.3 to measure your problem-solving skills. It will help you understand: •What types of
things you consider. •How you think about alternative solutions. •Which approach you prefer. This
self-awareness will help you learn about OB and apply it to improve performance. (Tip: Take this
assessment again at the end of the course to see if your skills have increased.) SELFASSESSMENT 1.3Thinking and Problem Solving Go to connect.mheducation.com and when
finished respond to the following: 1.What do items 1–3 tell you about your ability to define
problems? 2.Do your scores on items 4–6 match your perceptions of your ability to generate
effective solutions? 3.Using the individual items, describe the pros and cons of your tendencies
toward implementing solutions. Page 23 1.5STRUCTURE AND RIGOR IN SOLVING PROBLEMS
MAJOR QUESTION How could I explain to a fellow student the practical relevance and power of OB
to help solve problems? THE BIGGER PICTURE Have you ever felt the solution to a problem was just
beyond your reach? That you knew what the solution was but somehow you didn’t know it?
Sometimes this is a matter of organizing or structuring the problem and its elements. In such
situations OB can help. We show you some useful tools to help you organize and apply your OB
knowledge as it grows throughout this book and course. These same tools can be applied to solve
problems both more rigorously and effectively. Your ability to understand and apply OB knowledge
and concepts is made easier by categorizing or organizing them. The first and most fundamental
distinction is between elements that reside within individuals, like you, and those that are in the
environment. The Person–Environment Distinction OB concepts and theories can be classified into
two broad categories: person factors and environmental characteristics. The person–environment
distinction integrates these categories. •Person factors represent the infinite number of
characteristics that give individuals their unique identities. These characteristics combine to
influence every aspect of your life. In your job and career, these elements influence your goals and
aspirations, the plans you make to achieve them, how you execute such plans, and your ultimate
level of achievement. (Part One of this book is devoted to person factors.) This makes perfect
sense, but as we all know in reality it isn’t so simple. Things get in the way, and these “things” often
are environmental characteristics. •Environmental characteristics consist of all the elements
outside of ourselves that influence what we do, how we do it, and the ultimate results of our
actions. A potentially infinite number of environmental factors can either help or hinder you when
trying to accomplish something (see the following Problem-Solving Application box). In either case,
environmental characteristics are critically important to OB and your performance. Parts Two and
Three of this book are devoted to such characteristics. Hundreds, if not thousands, of studies have
shown that many person–environment characteristics influence a host of important outcomes,
such as job satisfaction, performance, and turnover. But this also begs the question—which is more
important—the person or the situation? Which Influences Behavior and Performance More—Person
or Environmental Factors?Researchers and managers have debated the answer to this question for
decades. Common versions of this debate revolve around the issues of “nature versus nurture” or
whether “leaders are born or made.” These issues will be addressed in Page 24 solving application
Technology: An Environmental Characteristic That Greatly Impacts My Performance Technology is
both helpful and detrimental to employee performance and well-being. To set the stage, consider
that roughly two-thirds of all full-time workers own smartphones.44 What are the benefits? More
and more companies are using smartphones to save time and money. At Rudolph & Sletten, for
example, a contractor located in Redwood City, California, workers use blueprint software on their
iPads. “The digitized documents partly replace hundreds of pages of construction blueprints that
need to be updated so often that student interns handle the monotonous work.” The company
estimates that using digitized blueprints can save from $15,000 to $20,000 on a large building
contract. This also leads to fewer construction errors because workers are using up-to-date
blueprints. Coca-Cola Enterprises similarly uses mobile-centric devices to streamline the workday
of its restaurant service technicians. The company estimates that the technology saves about 30
minutes a day.45 So what’s the downside of technology? More and more people report working
more hours because they use their smartphones after hours. This is why roughly two-thirds of US
employees indicate that they work during vacations. “People are tired of always being plugged in,”
says Tanya Schevitz, a spokeswoman for the Jewish cultural think tank Reboot. Do you get paid for
this “overtime”? Another problem concerns the payment of overtime. According to the Fair Labor
Standards Act, employees receive overtime pay for any time spent working beyond 40 hours in a
week. This can create a problem if employees access their mobile devices after hours. For example,
a court allowed a class-action lawsuit filed by a Chicago police officer. He claimed that employees
were using their work-issued BlackBerrys for police work after leaving their shifts, and they were
not paid for the time they used the device. “They’re hourly wage earners,” says the officer’s lawyer.
He concluded that “if you are going to make people work when they’re not on duty, you’ve got to
pay them.”46 YOUR CALLLet’s use the 3-Stop approach: Stop 1:What problem is described in this
example? Stop 2:Identify two potential causes (be sure to link the causes to the problem you
identified). Stop 3:Make a recommendation aimed at the cause that you feel will improve or remove
the problem. Chapters 3 and 13, respectively, but the relative influence of person and environment
characteristics on behavior and performance is fundamental to OB. Many observers believe that
some people are by their nature better suited than others to perform well at work (“born winners”).
In contrast, others believe that some people are clearly better in a given job or situation. No
particular person would outperform every other person in every possible job! Nobody is the best at
everything. This common view is supported by research in psychology and OB. Notably, the
interactional perspective states that behavior is a function of interdependent person and
environmental factors. Put another way, environments present various types of rewards and
opportunities that people achieve or realize with diverse knowledge, skills, abilities, and
motivations. Furthermore, “different people may perceive similar situations in different ways and
similar people may perceive different situations in the same way.”47 Page 25 People and
Environments Are DynamicIt is important to note that neither people nor environments are static.
People change, situations change, and the two change each other. To illustrate: •People bring their
abilities, goals, and experiences to each and every situation, which often changes the situation.
•Conversely, because situations have unique characteristics, such as opportunities and rewards,
they change people. What you value in a job will likely differ between now and the time you are
trying to make a move to senior management. •It also is true that the current job market and
employer expectations differ from those at the height of the technology bubble in the late 1990s or
at the depths of the Great Recession in 2007–2009. In the first scenario, you changed, and in the
second the environment changed. •Finally, your manager—an environmental characteristic—can
change what you do, how you do it, and your effectiveness. You in turn can impact these same
characteristics in your manager. The bottom-line implication for OB and your work life is that
knowledge of one without the other is insufficient. You need to understand the interplay between
both person and environmental characteristics to be an effective employee, and especially an
effective manager. How Can I Use Person and Environmental Characteristics to Apply OB
Knowledge?It is helpful to classify what you learn about OB into two easily understood categories
or buckets. This will assist you when trying to identify which OB concepts or theories are relevant
to a particular problem because every new concept or theory you learn represents a possible cause
of a problem. Consider the ever-common event of downsizing, also referred to as a reduction in
force or RIF, rightsizing, reorganization, restructuring, trimming dead wood, elimination of
redundancies, strategic realignment, or just cutting back. Many companies restructure
indiscriminately and cut large percentages of their employee ranks. Assume you and five of your
coworkers, who all do the same job, are kicked off the island (downsized). You experienced the
same event—all of you lost your jobs. Yet despite this it is likely that you and your coworker’s
reactions will vary. For instance, while personally you are not delighted about losing your job, you
might not feel too bad given that you didn’t like the job and were considering going to graduate
school next year anyway. Two of your coworkers, however, may be devastated and depressed.
Nevertheless, because the event was the same for all of you (environmental characteristic), we can
assume that the differences in everyone’s reactions were due to things about you as individuals
(person factors), such as other job opportunities, how much each of you likes the job you just lost,
your savings versus debt, and whether you have kids, mortgages, or a working spouse. The
person–environment distinction therefore provides a means for classifying OB concepts and
theories into causes of behavior. Levels—Individual, Group/Team, and Organization Another lens
through which OB sees the world relies on organizational levels. OB distinguishes among three:
individual, group, and organizational. The distinction between levels is fundamental to OB. (Note
that it even provides the structure for this book, with separate parts on each level.) Page 26 As an
example of how being sensitive to these levels helps in considering real-world problems, consider
the many reasons why people quit their jobs: •Some people quit because their job just doesn’t fulfill
what they value, such as challenging and stimulating work (an individual-level input). •Others quit
because of conflicts with their boss or they have nothing in common with their coworkers (a
group/team level process). •A faulty reward system (an organizational-level process) that unfairly
distributes raises, bonuses, and recognition is another common reason people quit. Understanding
and considering levels increases your problem-solving effectiveness. Applying OB Concepts to
Identify the Right Problem Nothing causes more harm than solving for the wrong problem. If you
don’t define the problem accurately, then all subsequent problem-solving efforts are adversely
affected. This happens because people end up focusing on a symptom or the wrong problem. It’s
like a doctor treating your fever with aspirin instead of diagnosing and treating an underlying
infection that caused the fever. The distinctions we’ve just discussed allow you to see the current
situation with more clarity. To illustrate, assume that many people in your department at work are
quitting. What could be the cause of the problem? Of course, the fact that people are quitting
doesn’t necessarily indicate a problem, but at the least it raises a red flag. Using the person–
environment distinction allows you to consider unique individual factors as well as external factors
that might be the source of the problem. And the structural levels of individual, group, and
organization will allow you to look at each level for possible reasons. For example, the reason for
the turnover may become more apparent by applying these concepts as you look at the situation.
Such considerations could include: •Person factors. Do the people who quit share something in
common? Is there anything in their personality that makes work difficult for them? What about their
ages? Gender? Is the rate or level of turnover in your company greater than for your industry as a
whole? •Environmental characteristics. Have there been changes in the environment, such as a
sudden increase in employment opportunities at better wages? Have the working conditions
changed in any meaningful way? •Individual level. Can you identify any change in how the company
treats employees or what it expects of them? •Group/team level. Have there been any changes or
other causative factors in your work group, including your manager, that might make work less
satisfactory? How does turnover in your group compare to other groups in the organization?
•Organizational level. Has the organization changed ownership, or rewritten company policies, or is
it enforcing policies differently? By going through such an exercise, you widen your focus and
review a larger number of possible causes for the problem, increasing the likelihood you will
identify the right problem. Page 27 1.6THE INTEGRATIVE FRAMEWORK FOR UNDERSTANDING AND
APPLYING OB MAJOR QUESTION How can the Integrative Framework help me understand and
apply OB knowledge and tools—and improve my problem solving? THE BIGGER PICTURE You’re
about to receive the single best tool for understanding and applying OB’s many concepts and
tools—the Integrative Framework for Understanding and Applying OB. The framework also helps
tremendously in improving your problem-solving abilities at school, work, and home. In the final
section, we give you some practical and effective guidance on how to choose among alternative
solutions to problems. We’re now ready to assemble a basic version of the Integrative Framework.
Figure 1.2 illustrates this framework, which we will use throughout the book to help you organize,
understand, and apply your knowledge as you acquire it. The Integrative Framework is also a
crucial part of our problem-solving approach. A Basic Version of the Integrative Framework To
assemble our framework, we use the Systems Approach as our foundation. It includes inputs,
processes, and outcomes. The person–environmental distinction acts as inputs. Processes and
outcomes are organized into the three levels of OB—individual, group, and organization. This
framework implies that person factors and environmental characteristics are the initial drivers of all
outcomes that managers want to achieve. This is the case because inputs affect processes, and
processes affect outcomes. And since events are dynamic and ongoing, many outcomes will in turn
impact inputs and processes. See Figure 1.2. A recent study of 111 people over one week showed
that taking time away from work led employees to feel rested (an outcome) and to [experience]
higher levels of work engagement (a process). Such breaks also enabled them to recover better
during the work day, and this reenergized them for their remaining work (an input).48 FIGURE
1.2INTEGRATIVE FRAMEWORK FOR UNDERSTANDING AND APPLYING OB 2014 by Angelo Kinicki
and Mel Fugate. All rights reserved. Reproduction prohibited without express permission of the
authors. Page 28 These time-sensitive relationships are shown as feedback loops in the Integrative
Framework. Determining the causal relationships between inputs, processes, and outcomes often
depends on a particular point in time—an outcome at one point in time may be an input at another.
As you work through this book you will notice that each chapter begins with a version of the
Integrative Framework that helps introduce the concepts discussed in that particular chapter. Each
chapter repeats the version of the framework at the end as part of the chapter review. If you take
the cumulative effect of the content of each chapter, you’ll end up with the fully articulated
Integrative Framework. We provide you with a version of this at the end of the book, in the Epilogue,
if you’d like to get a more complete picture. The same complete framework is a useful tool for
preparing for a comprehensive final exam. By definition frameworks are simplifications of reality;
they necessarily exclude information. This means that the Integrative Framework at the end of the
book will not show every OB concept that might impact employee behavior and performance. But
the basic elements of the Framework will help you understand and apply any OB topic you
encounter. The following Example box does an excellent job of illustrating the value of the
Integrative Framework and its components. Be sure to answer the “Your Thoughts?” questions, as
these will show you how to apply your new OB knowledge and tools. EXAMPLELife Is Sweeter on
Mars Whether it is the well-known candy (M&M’s, Snickers, Lifesavers) or the similarly popular cat
and dog foods (Whiskas and Pedigree), life is indeed sweet for the employees of Mars. The
Integrative Framework can help us explain and understand why the 72,000 employees feel they
have it so good, and why the company made the Fortune 100 Best Companies to Work For in 2013.
INPUTSThe environment at Mars lacks the perks touted by many tech companies—no foosball
tables, no free gourmet lunches, and no premier health clubs. More than this, some of their
practices seem not just old school but prehistoric. For instance, all employees, including the
president. have to punch a time clock each day and are docked 10 percent if late. However, what
Mars may seem to lack in style it makes up for with its culture. President Paul S. Michaels explains
how the company aligns its values and practices by asking: “Does it add value for the consumer to
pay for marble floors and Picassos?” If it doesn’t, then the company doesn’t provide it. The
employees seem to love the place and have very positive relationships at work, as many families
have three generations working at Mars. The culture seems to be one big family, albeit one of cats,
dogs, and candy. At one facility more than 200 employees bring their dogs to work each day.
(Leash rules apply.) This family-type environment flows from the founding Mars family that still
tightly controls the company, and it is built on the “Five Principles of Mars”: quality, responsibility,
mutuality, efficiency, and freedom. Employees not only recite but also live these principles.
PROCESSESWhile some practices seem frugal, the company reportedly awards bonuses of
between 10 and 100 percent of employees’ salaries. The company also invests heavily in the
community via its Mars Volunteers and Mars Ambassadors programs. In 2011, 9,600 employees
volunteered 37,000 hours at 290 organizations! OUTCOMESMars posts a very low turnover rate (5
percent), which is a sign that employees are highly satisfied with their jobs. And the fact that the
company has managed to grow consistently for decades and remain private is compelling evidence
for its financial performance.49 YOUR THOUGHTS? 1.What positive outcomes does Mars produce
at the individual level? 2.What positive outcomes does Mars produce at the organizational level?
3.What inputs and processes help produce each of these outcomes? Page 29 Let’s now consider
the details of the Integrative Framework and apply it during Stop 2 of the 3-Stop approach to
identify potential causes of a problem. Using the Integrative Framework for Problem Solving OB
and problem solving go hand-in-hand. The concepts and tools you’ll learn can be applied to
understand and overcome challenges in many arenas of your life. When confronted with a problem,
we recommend tackling it using what we call the 3-Stop Problem Solving Approach. It is simple
and widely applicable. Using the Integrative Framework makes the 3-Stop approach even more
effective. You can use the Integrative Framework at all three stops of the problem-solving journey
to add rigor, intelligently apply your OB knowledge, and in turn improve your performance: Stop 1—
make sure you are identifying the right problem; Stop 2—consider appropriate solutions; and Stop
3—select the solution that seems most appropriate. Your ultimate problem-solving success will be
determined by the effectiveness of your recommendation and resulting solution. So let’s discuss
this next. Selecting a Solution and Taking Action (if appropriate)Selecting solutions is both art and
science. Some managers like to rely largely on intuition (discussed in Chapter 11) and experience.
While these approaches can work, others use more analytical or systematic methods to select a
solution. EXAMPLE Intel has long been famous for its data-driven decision-making practices. When
employees encounter and notify their managers of problems, it is common if not expected that
managers automatically reply: “Call me when you’ve worked through your 7-step,” referring to a
companywide problem-solving process. Intel’s selection process is so entrenched that employees
use a common Power-Point template to fill in and ultimately present the relevant details of their
proposed solutions. (Intel illustrates an organizational level–process approach that is similar to the
rational approach to decision making we’ll discuss in Chapter 11.) Don’t Forget to Consider
ConstraintsPragmatically, most people lack the time, knowledge, or access to data to routinely
follow such a rigorous procedure. Therefore, your ultimate selection most often requires you to
consider various constraints—time, money, your own authority, and information—which can occur
at different levels. We therefore close this chapter with some practical pointers on how to select the
best solution among the alternatives you generated in Stop 2. Applied Approaches to Selecting a
Solution You can save yourself time and grief with this practical advice (from renowned problemsolving professor and expert Russell Ackoff): First decide how complete of a response you are
looking for. Do you want the problem to be resolved, solved, or dissolved? •Resolving problems is
arguably the most common form for managers and simply means choosing a satisfactory solution,
one that works but is less than ideal. Putting on a bald and badly worn tire fixes a flat, but it
certainly is less than ideal. •Solving problems is the optimal or ideal response. For instance, you
could buy a brand new, high-quality, full-size spare to keep in your trunk (not the typical “donut” or
the “run-flats” that manufacturers frequently provide). Page 30 •Dissolving problems requires
changing or eliminating the situation in which the problem occurs. Keeping with our example, the
city you live in could build and utilize effective public transportation and thus remove the necessity
of having cars (and tires) altogether.50 Making this decision then helps guide your choice among
alternatives. It helps you determine what is needed, if it is realistic, and, accordingly, what level of
effort and resources to use (e.g., money and time). Basic Elements for Selecting an Effective
Solution After deciding whether to resolve, solve, or dissolve your identified problem, you then need
to select the most effective solution. A problem-solving expert says: “The essence of successful
problem solving is to be willing to consider real alternatives.”51 To help you choose among
alternatives identified in Stop 2, we combed through the many books and articles written on the
topic and distilled these three common elements: 1.Selection criteria. Determine the basis (criteria)
for the decision, such as its effect on: •Bottom-line profits •You and classmates or coworkers
•Reputation with customers or the community •Your own values •The ethical implications
2.Consequences. Consider the consequences of each alternative, especially the trade-offs between
the pros and the cons, such as: •Who wins and who loses •Ideal vs. practical options •Perfection vs.
excellence •Superior results vs. satisfactory results 3.Choice process. Decide who will be involved
in choosing the solution. (If more than one person is involved, then you need to agree on the
method. Will it be by vote? Public or secret? Unanimous or simple majority?): •You •Third party
•Team Whatever the case, it is important to consider the necessary resources, including which
people will be key sources of support for (and resistance to) your ultimate selection. Consider who
can help and who can hurt your efforts—“what’s in it for them?” Putting it all together, the OB
knowledge and tools you’ll learn in this book will help tremendously in selecting and implementing
your “best” solution given the situation you face. Let’s conclude with a brief scenario that will
enable you to “test drive” your new tools. A Practice Problem-Solving Scenario You are
approaching the summer before your senior year in college. Because of your financial situation, you
must graduate next spring, which means you need to take 30 credit hours in the next 12 months
(May of your junior year through the following June). With these facts in mind, you need to decide
how you are going to spend your summer. You would like to study abroad (earns 6 credit hours), do
an internship to improve your job prospects (assume you get paid for the internship), and, of
course, you need to work part time and earn some money to pay tuition (you have to pay half and
your parents pay half) and support your college student lifestyle. You are determined not to take
any loans from anybody. Apply the 3-Stop Approach to solve your problem. After you work through
this scenario on your own, then look at how we worked through the same scenario applying the 3Stop Approach. (Don’t skip ahead; try it yourself first.) Page 31 Apply the Problem-Solving
Approach to OB Stop 1: What is the problem? •Identify the outcomes that are important in this case.
•Which of these outcomes are not being achieved in the case? •Based on considering the above two
questions, what is the most important problem in this case? Stop 2: Use the material in this chapter
to help you understand the problem in this case. •What person factors are most relevant? •What
environmental characteristics are most important to consider? •Do you need to consider any
processes? Which ones? •What concepts or tools discussed in this chapter are most relevant for
solving the key problem in this case? Stop 3: What are your recommendations for solving the
problem? •Review the material in the chapter that most pertains to your proposed solution and look
for practical recommendations. •Use any past OB knowledge or experience to generate
recommendations. •Outline your plan for solving the problem in this case. We followed the same
procedure and process to apply the 3-Stop Approach to this scenario. Our results are in ALL CAPS
below. Compare our results to yours and identify sources of agreement and disagreement. Don’t be
surprised if yours differ. You may have defined the problem differently or you may have made
different tradeoffs. Besides, the authors were in school a long time ago. Internships were rare back
then and few people studied abroad. Authors’ Application of the 3-Stop Approach Stop 1: What is
the problem? NEED TO DO SEVERAL THINGS AND STILL GRADUATE ON TIME. Desired state—
graduate on time. Current state—several opportunities and needs between now and graduation.
•Identify the outcomes that are important in this case. GRADUATE ON TIME, IMPROVE JOB
PROSPECTS, STUDY ABROAD, MAKE MONEY TO PAY BILLS •Which of these outcomes are not
being achieved in the case? GRADUATE ON TIME, IMPROVE JOB PROSPECTS, STUDY ABROAD,
MAKE MONEY TO PAY BILLS •Based on considering the above two questions, what is the most
important problem in this case? GRADUATE ON TIME Stop 2: Use the material in this chapter to
help you understand the problem in this case. •What person factors are most relevant? PERSONAL
VALUES (e.g., education, fun, being responsible), FINANCIAL SITUATION, CAREER GOALS AND
ASPIRATIONS •What environmental characteristics are most important to consider? NUMBER OF
CREDITS TO GRADUATE, CALENDAR OF WHEN CLASSES ARE OFFERED, STUDY ABROAD
OPPORTUNITIES, INCOME OPPORTUNTIES DURING SCHOOL •Do you need to consider any
processes? Which ones? NO. WE’LL ASSUME YOU QUALIFY FOR THE STUDY ABROAD PROGRAM,
YOU’RE NOT ON PROBATION AT SCHOOL, YOUR CLASSES ARE AVAILABLE WHEN YOU WANT
THEM, AND YOU’RE HIGHLY MOTIVATED Page 32 •What concepts or tools discussed in this
chapter are most relevant for solving the key problem in this case? HUMAN CAPITAL (it is what
qualifies you to study abroad and earn money during the year), ETHICS (we assume you won’t steal
or do anything illegal to earn income but not work), 3-STOP APPROACH, ELEMENTS OF SELECTING
APPROPRIATE SOLUTIONS Stop 3: What are your recommendations for solving the problem?
A.DON’T DO STUDY ABROAD; DO INTERNSHIP, WORK, AND GO TO SCHOOL IN THE FALL B.DO
STUDY ABROAD, TAKE REDUCED LOAD (study abroad was 6 hours) IN THE FALL AND FIND AN
INTERNSHIP THEN, TAKE A FULL LOAD IN THE SPRING •Review the material in the chapter that
most pertains to your proposed solution and look for practical recommendations. •Use any past OB
knowledge or experience to generate recommendations. •Outline your plan for solving the problem
in this case. FINAL RECOMMENDATION: ALTERNATIVE B—DO THE STUDY ABROAD AND PURSUE
INTERNSHIP IN THE FALL WHILE TAKING A REDUCED LOAD. THIS WILL MAKE YOU MORE
VALUABLE TO PROSPECTIVE EMPLOYERS AND STILL ALLOW YOU TO GRADUATE ON TIME AND
FINANCE YOUR LAVISH COLLEGE LIFESTYLE. Page 33 what did i learn? You learned that OB is an
interdisciplinary field that focuses on understanding and managing people at work. The same rich
collection of OB tools and insights that can help you succeed at work can also help at school and at
home. Your understanding of the practical value of OB knowledge was increased further with the
Integrative Framework for Understanding and Applying OB and the 3-Stop Problem Solving
Approach. Reinforce your learning with the chapter’s Key Points listed below. Next, consolidate
your learning using the Integrative Framework, shown in Figure 1.3. Then, challenge your mastery
of the material by answering the chapter’s Major Questions in your own words. Key Points for
Understanding Chapter 1 You learned the following key points. 1.1THE VALUE OF OB TO MY JOB
AND CAREER •OB is an interdisciplinary and applied field that involves managing the behaviors of
individuals, groups/teams, and organizations. •The practical benefits of OB are based on the
contingency approach, which says that the best or most effective approach requires one to apply
the appropriate knowledge and tools to a given situation, rather than relying on one best way
across all situations. •OB is far more than common sense. Common sense has limits and inherent
pitfalls that OB knowledge and tools help you avoid and overcome. •OB helps you enhance your
attractiveness to employers, as they want employees who have both hard and soft skills. FIGURE
1.3INTEGRATIVE FRAMEWORK FOR UNDERSTANDING AND APPLYING OB 2014 Angelo Kinicki
and Mel Fugate. All rights reserved. Reproduction prohibited without permission of the authors.
1.2HUMAN AND SOCIAL CAPITAL •Human and social capital are critically important aspects of
your career success in the short and long term. •Career success has two dimensions or types:
objective and subjective. •OB helps you increase your self-awareness and achieve your job and
career goals. 1.3RIGHT VS. WRONG—ETHICS AND YOUR PERFORMANCE •Ethics is concerned with
behavior—right vs. wrong, good vs. bad, and the many shades of gray in between. Unethical
behavior thus has many forms and causes. •The vast majority of unethical conduct at work is not
illegal. •Unethical conduct negatively affects the individual targets, the perpetrators, coworkers, and
potentially entire organizations. •Employees often encounter ethical dilemmas, or situations where
none of the potential solutions are ethically acceptable. •Whistleblowers are rarely protected and
often suffer substantial emotional and professional costs. 1.4APPLYING OB TO SOLVE PROBLEMS
•A problem is a difference or gap between a current and a desired situation. •Problem solving is a
systematic means for closing such differences or gaps. Page 34 •The 3-Stop Approach to Problem
Solving involves defining the problem, using OB concepts and theories to understand the problem,
and making recommendations and action plans to solve the problem. 1.5STRUCTURE AND RIGOR
IN SOLVING PROBLEMS •The person–environment distinction is a fundamental way to organize,
understand, and apply OB concepts. •Person factors represent the vast number of characteristics
that give individuals their unique identities. •Environmental characteristics consist of all the
elements outside of ourselves that influence what we do, how we do it, and the ultimate results of
our actions. •Workplace behavior occurs at three levels—individual, group/team, and organizational.
1.6THE INTEGRATIVE FRAMEWORK FOR UNDERSTANDING AND APPLYING OB •The Integrative
Framework for OB is a tool that helps you to organize, understand, and apply your knowledge to
solve problems. •The systems approach is used to create the Integrative Framework for OB. Person
and environment factors are inputs, and the processes and outcomes are organized into individual,
group/team, and organizational levels. •Apply the Integrative Framework to the 3-Stop Approach to
Problem Solving to help you define problems, identify their causes, and generate recommendations.
The Integrative Framework for Chapter 1 In this chapter we introduced our first application of the
Integrative Framework, showing the basic structure of inputs, processes, and outcomes (see Figure
1.3). The basic framework shown here will help you organize new concepts, theories, and tools as
they are introduced, as well as help you retain and apply them. Accordingly, we’ll use the Integrative
Framework at the end of each chapter as an aid to review and apply what you’ve just learned. If you
want a preview of all that you’ll learn, then take a quick look at the full Integrative Framework at the
end of this book (in the Epilogue). We think you’ll be quite impressed with how much you will have
learned! In addition to its usefulness as a study aid, the Integrative Framework is a fundamental
tool to use in the 3-Stop journey of problem solving. And beyond the course, the same framework
can help you understand and manage behavior in many different organizational contexts (e.g.,
clubs, sports teams, and other social groups). Challenge: Major Questions for Chapter 1 At the start
of the chapter, we told you that after reading the chapter you should be able to answer the following
major questions. Unless you can, have you really processed and internalized the lessons in the
chapter? Refer to the Key Points, Figure 1.3, the chapter itself, and your notes to revisit and answer
the following major questions: 1.How can I use knowledge of OB to enhance my job performance
and career? 2.How can human and social capital affect my career opportunities and job
performance? 3.Why do people engage in unethical behavior, even unwittingly, and what lessons
can I learn from that? 4.How can I apply OB in a practical way to increase my effectiveness? 5.How
could I explain to a fellow student the practical relevance and power of OB to help solve problems?
6.How does the Integrative Framework help me understand and apply OB knowledge and tools—
and improve my problem solving? Page 35 PROBLEM-SOLVING APPLICATION CASE (PSAC) The
Cost of “Doing the Right Thing” Apply the knowledge of OB presented in this chapter to the
following case. Applying this knowledge should en...
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