2

;.~, ' . ..•..

LEARNING OBJECTIVES

After reading this chapter, you sho uld be able to do the fol lowing:

II Define organizational behavior.

S Identity four action steps for responding -positively in times of change.

m Ide ntity the important syste m components of an organization.

,m Describe t he formal and in fo rmal elements of an organiza[ion.

-.

•

D Understand th e diversity of organizations in the eco no my, as exempl ifi ed by the six focus organizations.

I!!il Recognize the opportun ities that change creates for organizational behavior.

Ell Demonstrate the value of objective knowledge and ski ll deve lopment in the study of o rganizational behavior .

PART 1 INTRODUCTION

THDNB{GN G AJ-ll EAIT}: CARMAX

Changing the Used-Car Business .

. There a re a variety of preconceptions and stereotypes about <!l ~

the used-car business in modem American mythology. Jokes > ~ ~

The way car buyin9 ~ be. · I about used-car salesmen have been kicked around for decades.

CarMax decided to entcr and change the used-car business.

Man}' of the ind ustry's analysts were skeptical about the abi ll ry of the new kid on the block in the

early 19905. By the la te 2000s, CarMax had in fact made a pos itive impact, one chat AuwNarion

attempted to rep li ca te and fa iled, exirin .:; the used-car busi ness in 1999. CarMax has succeeded

through its own un ique fo rmula rather than through intcnsel)' competitive , cutthroat tacrics. They are

winning rhe game in rhe used·cal- industry and they are winni ng it the CarMax way, their- way.l . , The CarMax way is to emphasize ethical business deali ngs, no-haggle pricing, and customer ser-

vice. These a re the three p illars o f the company's success. Wh ile most used-car dea lers tcll you tha t

they do not put frame or structurall y damaged cars on their lots. and most repu table dealers in fact

do not, CarMax goes the extra m ile in showing rhat it does nOt do so. Integrit}, is at the core of the

C HAPTER 1 ORGANIZATI ONAL BEHAVI OR AND OPPORTUNITY 3

iii Define organizotionof behavior.

opportunities

Favorable rimes or chances for progress and advancement.

change

The transformation or modification of an organization and/ or its stakeholders.

challenge

The call to competition, contest, or battle.

organizational behavior

The study of individ ual behavior and group dynam ics in organizations .

company's ethical business practices. In addition to good used cars, CarMax does not engage in

high pressure pricing or haggling. They are upfront about the pricing and explain to customers

what is going to happen at every step along the path to owning that used car. The low.keyed

sales approach was viewed very skeptically in the early years yet the company has done very well,

with over 100 used·car superstores in their system by 2010. The low· key approach does not

mean low profitability. CarMax averages $1,878 in gross profit on each used car, compared with

$1 ,700 in gross profit for new car dealerships that se ll used cars.

Customers are not going to pay extra for no reason; they are not stupid. The third leg in

CarMax's three· pronged approach is [Q emphasize customer service. Customers wa lk into one of

the company's superstores and most of them walk away very satisfied with the experience. They

do not feel that the sales people are attempting to extract money from them. Along with the

integri ty of ethical business practices is the focus on the customer and the customer's needs. A

satisfied customer is ohen a repeat customer over the long term. After more than a decade o f

success , however, Cal'Max faced a real challenge to its business model du ring the sharp 2008-

2009 economic downturn. Wo uld the company's three·way approach be enough to meet the

challenges brought about by a weakening economy and slowing auto sales?

HUMAN BEHAViOR IN ORGANIZATIONS

Human behavior in organizarions is complex and ofren difficulr ro undersrand. Organizarions have been described as clockworks in which human behavior is logi­ca l and rational, but they ofren seem like snake pirs ro rhose who work in them. ' The clockwork metaphor reflecrs an orderly, idealized view of organizarional behav­ior devoid of confl icr or dilemma beca use all rhe worki ng parrs (rhe people) mesh smoorhly. The snake pir-meraphor conveys rhe daily conflict, stress, and srruggle in organizarions. Each meraphor reflecrs reality from a different perspecrive-the organization 'S versus the individual' s point of view. These metaphors reflect the complexity of human behavior, the dark side of w hich is seen in cases of air rage and workplace violence. On rhe posirive side, rhe Gallup Organizarion's Marcus Buckingham suggesrs rhar people's psychological makeup is at rhe heart of rhe emotional economy . J

This chapter is an inrroduction to organizational behavior. The first sectio n pro­vides an overview of human behavior in organizations, its interdisciplinary origins, and behavior in times of change. The second section presents an organizational con­texr within which behavior occurs and briefly introduces the six focli s companies used selectively in the book. The third section highlights the oppo1'tunities thar exist in rimes ' of change and cha.lIenge for people ar work. 4 The fourth section addresses rhe ways people learn abour organizarional behavior and expla ins how rhe rext 's pedagogical features relate to the various ways of learning. The final section of the chapter presents rhe plan for rhe book.

Organizational behavior is individual behavior and group dynamics in orga­nizarions. The study of organizarional behavior is primarily concerned w ith the psychosocial, interpersonal, and behavioral dynam ics in organizations. However,

PART 1 INTRODU CT ION

organizational variables that affect human behavior at work are also relevant to

the study of organizational behavior. These organizationa l variables include jobs, tbe design of work, com munication, performance appraisal, orga nizational design, and organ izational structure. Therefore, although individual behavior and group dynamics are the primary concerns in the study of organizational behavior, organi­zationa l variables a're also important.

This section briefl y contrasts two perspectives for understa nding human behav­ior, the external and the internal perspectives. The section then discusses six scien­tific disciplines from which the study of organizational behavior has emerged and concludes with a discussion of behavior in times of change.

Understanding Huma n Behavior

The vast majority of theories and models of human behaviot fall inro one of twO basic categories. One category has an internal perspective, and the other has an external perspective. The internal perspective considers factors inside the person ro understa nd behavior. This view is psychodynamically oriented. People who sub­scribe ro th is view understand human behaviot in terms of the thoughts, feelings, past experiences, and needs of the individual. The internal perspective expJains peo­ple's actions and behavior in terms of their history and personal value systems. The internal processes of thinking, feeling, perceiving, and judging lead people to act in specifi c ways. The internal perspective has given rise to a w ide range of motivationa l and leadership theoties. Thi s petspective implies that people ate best undersrood from the inside and that theit behavior is best interpreted afrer understanding theit thoughts and feelings.

The other category of theories and models of human behavior takes an external perspective. This perspective focuses on factors outside the person to understand behavior. People who subscribe to th is view understand human behavior in terms of external events, consequences of behavior, and the environmental forces to which

a person is subject. From the external perspective, a person's history, feelings, thoughts, and personal va lue systems are not very impo rrant in interpreting actions and behavior. This perspective has given rise to an alternative set of motivational and leadership theories, which are covered in Chapters 5 and 12 of the text. The external perspective implies that a person's behaviot is best undersrood byexamin­ing the surrounding external events and envirownental forces.

The internal and external perspectives offer alternative explanations for human behavior. For example, the internal perspective might say Mary is an outstand ing employee because she has a high need for achievement, whereas the external per­spective might say Mary is an outstanding employee because she is paid exttemel y well for her work. Kurt Lewin captured both perspectives in saying that behavior is a funct ion of both the person and the environment.s

Interd isciplinary Influences

Organizational behavior is a blended discipline that has grown out of contribu ­tions from numerous earlier fields of srudy, only one of which is the psychological discipline ftom which Kurt Lewin came. These i"terdisciplinary influences ate the roots for what is increasingly recognized as the independent discipline of organiza­tional behavior. The sciences of psychology, sociology, engineering, anthropology, management, and medicine have each contributed to our understanding of human behavior in o rganizati ons .

Psychology is the science of human behavior and dates back to the closing decades of the nineteenth century. Psychology traces its o\·vn origins to ph ilosophy and the

C H APTE R 1 ORGANIZATIONAL BEHAVIOR AND OPPORTUNITY

psycho logy

The science of human behavior.

suciology

The sCience of soclery.

engineering

The applied science of energy and matter.

anthropology

The science of the learned behavior of human beings .

management

Tne study of overseeing activities

and supervismg people in organ izations.

medicine

The applied science of healing or treatment of diseases to

enhance an individual's health

and well-being.

'.

science of physiology. One of the mOSt prominent early psychologists, William James, actually held a degree in medicine (M,D, ), Since its origin, psychology has itself become differentiated into a number of specialized fields, such as clinical, experi­mental, military, organizational, and social psychology. Organizational psychology includes the study of many topics, such as work motivation, which are also covered by organizational behavior' Earll' psychological research for the American military during World War I had later implications for sophisticated personnel selection methods used by corporations such as Johnson & Johnson, Valero Energy, and Texas Instruments.7

Sociology, the science of society, has made important contributions to knowl­edge about group and intergroup dynamics in the study of organizational behavior. Because sociology rakes society rather than the individual as its point of departure, the sociologist is concerned with the variety of roles within a society or culture, the norms and sta ndards of behavior in groups, and the conseq uences of compliant and deviant behavior. For exa mple, the concept of role set, a key contribution to role theory in 1957 by Robert Merton, was used by a team of Harvard educarors to study the school superintendent role in Massachuserrs. & More recently, the role ser concept has been used ro study rhe effecrs of codes of erh ics in organizarions.q

Engineering is the applied science of energy and matter. Engineering has made important contributions ro our understanding of the design of work. By taking basic engineering ideas and applying them ro human behavior ar work, Frederick Taylor had a profound influence on the early years of the Study of organizational behav­iOr,1O Taylor'S engineering background led him to place special emphasis on human productivity and efficiency in work behavior. His notions of perfo rman ce standards and differenria l piece-rate systems have had lasting impact. Taylor's original ideas are embedded in organizational goal-setting programs, such as those at Black & Decker, IBM, and \\7eyerhaeuser. 1l

Anthropo!og)'. the science of human learned behavior, is especially important to underStanding organiza tional culture. Cultural anthropology focuses on the origins of culture and the patterns of behavior as culture is communicated symbol ica lly. Research in this tradition has examined the effects of efficient cultures o n organiza­tion performance" and how pathological personalities may lead ro dysfunctional organizational cultures, IJ Schwartz used a psychodynamic, anthropological mode of inquiry in exploring corporate decal' at General Morors and NASA,"

Management, origi,oa lly ca ll ed administrative science, is a discipline concerned wirh rhe study of overseeing acriviries and supervising people in organizarions. lr emphasizes the design, implementarion, and management of various administrative and organizational systems. March and Simon take the human organization as their point of deparrure and co ncern themselves with the ad minisrrative practices thar will enhance the effectiveness of the system.lS Management is the first discipline to take the modern corporation as the unit of analysis, and this viewpoi nt distinguishes the discipline's contribution to the study of organizational behavior.

N1edicine is rhe applied science of healing or trearment of diseases to enhance an indi vidual's hea lth and well-being, Medicine has long-sta nding concern for both physical and psychological health, as well as for industrial mental health" More recently, as the war against acute diseases is being won, medical attention has shifted [Q more chronic piseases, such as hyperrensioll, and to occupational health an d well-being." Individual behavior and lifeStyle patterns play important roles in trearing chronic diseasesY; These trends have conrributed to th e growth of corpo­rate well ness programs, such as Johnson & Johnson's "Live for Life Program." The su rge in health care costs over the past twO decades has contributed to increased orga nizational concern with medicine and health care in the workplace,l '

PART 1 INTRODU CTION

Behavior in Times of Change

Early research \\lith individ uals, groups, and organizations in the midst o f environ­mental change fo und that change is often experienced as a threat that leads to a reliance on well-learned and dominant forms of behavior.20 That is, in the midst of cha nge, people often become rigid and reactive, ra ther than open and respon­sive. This may be useful if the cha nge is neither dramatic nor rapid beca use we are often effective at coping with incremental change. However, if significant change occurs, then rigid and well- learned behavior may be counterproductive. Leaders ma y interpret these responses as resistance to change. Strong leaders recognize these behaviors as an opportunity to learn from their criti cs, to understand th e rigid­ity and resistance, and to facilitate pos iti ve pathwa.ys through the change.2 1 The

pracrice of outsourcing is a significa nt change in American in dustry that has been facilitated by dramatic advances in the Internet and nerworking technology." Big changes disrupt people's habitual behavior and require learning if they are to be managed successfully. Eric Brown, ProLine Internationa l's VI' of G lobal Busi ness Development, offers some sage words of advice ro see the opportunity in change .23

H e recommends adapting to change by seeing it as positive and seeing challenge as good rather than bad. His action sreps for doing thi s are to (1) have a posirive attirude, (2 ) ask q uestions, (3) listen to the answers, and (4 ) be committed to suc­cess . We see in the accompanying Science feature how important a positive attitude

toward change is. However, success is never guaranteed, and change sometimes results in fa ilure. If

this happens, do nor despair. Some of the world 's greatesr lea ders, such as Winston

A Strong, Positive Attitude Toward Change

a Identify four action Steps for

responding positively in times of

change.

Th is research studied the dynamic and changing nature of organizations. There are a number of va riables ro un d to be associated with organizational changes that serve as mediators of outcomes of the change process. Not al l changes result in good outcomes a nd not al l cha nge

results in bad outcomes. What makes the difference? This study examined three variables th at might affect the att itudes of 258 police officers toward a change aimed at restructuring its organizational design. The three varia bles were locus of control, growth need strength, and internal work motivation. Locus of con· trol concerns one's personal beliefs about how much

self·con trol one has versus how much control is due to chance or events in the environment. Growth need strength assesses how much a person needs to experi ­ence work as stim ulating and challenging. Internal work motivation assesses one's self· ini tiative and personal

drive. Th ese three variables influence one's attitude

toward change, which may be positive, as in look­ing forwa rd to change, or weak, as in not looking forward to change. These a ll influence o rganizational

commitment following the cha nge. The results found

that strong, posit ive atti tudes towa rd change led to higher levels of organization a l commitment as well as

more successful implementation of change in itiatives. The practical implications of this study suggest that

employees with strong. positive attitude toward change work to ensure that a cha nge in itiative is successful. On the other hand , employees with weak attitudes toward change are likely to resist and potentially sabotage a change initiative.

C HAPTER 1 O RGANI ZAT IONAL BEHAVIOR AND O PPORTUNITY

SOURCE: S. M. Elias, "Employee Commitment in Times of Change: Assessing the Importance of Attitudes Toward Organizational

Change," Jot/mal o{Managemenr 35 (2009): 37-55.

Analyze Yo u r Pe rceptio ns o f a Ch a nge

Everyone perceives change differently. Think of a change situation you a re currently experiencing. It can be any

business, school-related, or' per~onal experience that requires a significant change in your attitude or behavior.

Rate you r fee lings about this . change using the following scales. For -j'nscance, i(you fee l the change is more of a

threat than an opportunity, you would circle 0, 2 , or 4 on the first scale.

1. Threat 0 2 4 6 8 1.0 Opportunity 2. Holding on to the past 0 2 4 6. 8 10 Reach ing for the future

3. fmmob ilized 0 2 4 6 8 10 Activated

4. Rigid 0 2 4 6 8 10 Versatile

5. A loss ·0 2 4 6 8 10 A gain

6. Victim of change 0 2 4 6 8 lO Agent of change 7. Reactive 0 2 4 6 8 10 Proactive . 8. Focused on the past 0 2 4 6 8 10 Focused on the -future 9. Separate from change 0 2 4 6 8 '10 · Involved with change

10. Confused 0 2 4 6 8 10 Clear

How positive a re your perceptions of this change?

SOURCE: H. Woodward and S. Buchholz, Aftershock: Helping People Through Corporate Change, 1 S. Copyright <0 1987 John Wiley & Sons, Inc. Reprinted by permission of John Wiley & Sons, Inc.

IE! Identify the imponant system

components of an organization.

Church ill , experienced dramatic fa ilure before achieving lasting success. The key to

their eventual success was their capaciry to learn from the failure and to respond

positively to the opportuniti es presented to them. One venture capitalist with whom the authots have worked likes to ask those seek ing to build a business to tell him about theif greatest fa ilure. What the venture capita list is looking for in the answer

is how the executive responded to the fai lure and what he or she learned from the

experience. ~rh il e change carries with it the risk of fa ilure as well as the o pportu­

nity for success, it is often ho\..., we behave in the midst of change that determines

which outCome results~ Success can come th rough t he accumulation of small wins and through the use of m icroprocesses, as has been found with middl e m anagers

engaged in in stituti onal dunge.N What are you r perceptions of change? Complete You 1.1 and assess your own behavior in t imes of change.

THE ORGANiZATIONAL CONTEXT

A complete understa nding of organ izatio nal behavior req uires a n understanding of

botb.. human behavior a nd the orga nizatio na l context where behavior is enacted .

This section discusses the organizational context. First, organizations are presented as systems. Second, th e form a l a nd informal organizations are discussed. Finally, six

focus companies are p resented as contemporary exampl es and drawn o n through our the text.

Organizations as Open Systems

As with human behav ior, twO di ffere nt perspectives offer complementary explana­

t ions of o rganiza ti ons . Organizations are open systems of interact ing components,

PART 1 INTRODUCTION

which are people, tasks, technology, and structure. These internal components also interact wjrh components in the organ ization's task environment. Organizations as open systems have people, technology, structure, and purpose. which interact with elements in the organ izat ion's environment.

What, exactly, is an organization? Today, the corporation is the dominant orga­nizational form for much of the Western world, but other organizational forms have dominated other times and societies. Some societies have been dominated by rel i­gious organizations, such as the temple corporations of ancient Mesopotamia and the churches in colonial America .2s Other societies have been dominated by military organ izarions, such as the clans of the Scottish Highlands and rhe regiona l arm ies of rhe People's Republic of Ch ina."·27 All of these societies are woven togerher by family organizations, which themselves may vary from nuclear and extended fami­lies to small, collective commun ities. 28•29 The purpose and structure of the religious, military, and family organizational forms may vary, but people's behavior in these organizations may be very similar. In fact, early discoveries abour power and lead­ersh ip in work organizations were remarkably similar to findings about power and leadership within families. "

Organizations may manufacture products, such as aircraft components or steel, or deliver services, such as managi ng money or providing insurance protection . To understand how organizations do these things requires an understanding of the open system components of the organization and the componen ts of its task environment.

Katz, Kahn, and Leavitt set our open system frameworks for understanding organ izations.3 ! The four major internal components-task, people, technology, and structure-along with the organization 's inputs, outputs, and key elements in the task environment, are depicted in Figure 1.1. The task of the organization is its mission, purpose, or goal for existing. The people are the human resources of the

FIGURE

1.1 An Open Systems View of 0'llanization

Task e nvironment: Competitors Unions Regulatory agencies Clients

------------ ---.... --- ------- ............ ~ ~

////.... " ......

/ "-/ "-

task An organization's mission ,

purpose, or goal for existing.

people

The human resources of the organization.

/ ' / ' I \

I \\ / \

I \ Inputs : I \ Outputs: Material ----;.-11 rl ----.- Products Capital \ I Services Human \ I

\ / \ / \ I

\ / , / , /

'...... //

"""............ --///

............ _-- ~-- -- __ Organizational boundar)' _ - - - --------------

SOURCE: Based on Harold l eaVitt , "Applied Organ1z,Hlonai Change In Industry: Strucwr:J,l, Technolog1cal, and Human1stlc Approaches, ~ In J. G. March , ed., Handbook o(Organizations (Ch icago: Rand McNally, 1965), 1145. Reprinted by permiSSion of James G. March.

CHAPTER' ORGANIZATIONAL BEHAVIOR AND OPPORTUNITY

D Describe the fonnal

and infonnal elements of an

organization.

technology

The wols, knowledge, and/ or techniques used to transform inpurs into outputs.

str'ucture

The systems of communication,

authority and roles, and workflow.

fonnal or'ganization

The official, legitimate, and most visible part of the system.

infor'mal o,..ganization

The unofficial and less visible part

of the system.

Hawthorne studies

Studies conducted during the 1920s and 1930s that discovered the existence of the informal

organization.

"H'M

orgamzation. The technology is the wide range of tools, knowledge, and/or tech­niques used to transform the inputs into Outputs. The structure is the systems of communication, the systems of authority, and the systems of workf1ow.

In add ition to these major internal components, the organization as a system also has an external task environment. The task environment is composed of dif­ferent constituents, such as suppliers, customers, and federal regulators. Thompson describes the task environment as that element of the environment related to the organization'S degree of goal attainment; that is, it is composed of those elements of the environment related to the organization'S basic task.32 There are a number of organizations that are using or considering the use of Twitter as a way of nerwork­ing elements of their task environments. 33 For example, NASA is using Twitter to update interested parties on fhe status of upcoming space shuttle fl ights . Originally a tool for persona l nerworking and sharing daily life events, Twitter has become a powerful marketing and communication device for companies.

The organization system works by taking inputs, converting them into throughputs, and delivering OUtputs to its task environment. Inputs consist of the human, informational, material, and financial resou rces used by the organization. Throughputs are the materials and resources as they are rransfotmed by the organi­zation's technology component. Once the transformation is complete, they become outputs for customers, consumers, and clients. The actions of suppliers, customers, regulators, and other elements of the task environment affect the organization and the behavior of people at work . For example, Onsire Engineering and Management experienced a rhreat ro irs su rvival in rhe mid-1980s by being rotally dependent on one large utility for its outputs. By broadening its client base and improving the qual ity of its services (i.e., its outputs) over the next several years, Onsite became a healthier, more successful small company. Transforming inputs into high-quality outputS is critical to an organization'S success.

The Formal and informal Organization

The open systems' view of organization may lead one to see the design of an orga­nization as a clockwork with a neat, precise, interrelated functioning. The formal organization is the official, legitimate, and most visible part that enables people to think of organizations in logical and rational wavs . The snake pit organizational metaphor mentioned -earlier has its roots in the study and examination of the in/ormal organization, \vhich is unofficial and less visible. The informal elements were first fully appreciared as a result of the Hawthome studies, conducred dur­ing the 1920s and 1930s. lr was during the interview study, the third of the four Hawthorne studies, that the research ers began ro deve lop a deeper understanding of the informal elements of the Hawthorne Works as al1 organizarion." The formal and informal elements of the organization are depicted in Figure 1.2.

Potential conflict between the formal and informal organization makes an understanding of both imporrant. Conflicts between these twO elements erupted in many organi::ations during the early yea rs of the twentieth century and were embodied in the un ion-management strife of that era. The conflicts escalated into violence in a number of cases. For example, during the 1920s, supervisors at the Homestead Works of U .•. Steel were issued pisrols and boxes of ammunirion "jusr in case" it became necessary to shoot unruly, dangerous steelworkers. Such poten­tial formal-informal, management-labor confl ict does not characterize all organi­zations. During the same era, Eastman Kodak was very progressive. The company helped with financial backing for employees' neighborhood communities, such as Meadowbrook in Rochester, New York. Kodak's concern for employees and atten­rio'n to informal issues made unions unnecessary within the company .

PART 1 INTROD UCTION

F I GURE

,--­i

Social surface

The informal elements of the organization are frequent points of diagnostic and intervention activities in organization development, though the formal elements must always be considered as well beca use they provide the context for the informal. 3S

These informal elements are important because people's feelings, thoughts, and aniwdes about their work do make a difference in their behavior and performance. Individual behavior plays out in the context of the formal and informal elements of the system, becoming organizational behavior. The uncovering of the informal elements in an organization was one of the major discoveries of the Hawthorne stud ies. The importance of employees' moods, emotions, and disposi tional affect is being re-recognized as a key influence on critical organizational outcomes, such as job performance, decision making, creativity, turnover, teamwork, negotiation, and leadership."

Six Focus Organizations

Organizational behavior always occurs in the context of a specific organizational setti ng. Most attempts at explaining or predicting organizational behavior rely heavily on factors within the organization and gi'l..e less weight to external environ­mental considerations . .l7 Students can benefit from being sensitive to the industrial Context of organizations and from deve;oping an appreciation for each organization as a whole . .l B In this vein, six organizations each appear three times for a total of eighteen Thinking Ahead and Looking Back features. CarMax is illustrated in this chapter. We challenge you in each chapter to anticipate what is in the Looking Back feature once you read Thinking Ahead.

CHAPTER 1 ORGANIZATIONAL BEHAVIOR AND OPPORTUNITY

D Understand the diversity of

organizations in the econom}"

as exemplified by the six focus

organizations.

The U.S. economy is the largest in the world, with a gross domestic product of more than $14.2 trillion in 2008. Figure 1.3 shows the major sectors of the economy. The largest sectors are service (43 percent) and product manufacture of nondurable goods (21 percent) and durable goods (7 percent). All together, the manufacture of products and the delivery of services account for 71 percent of the U.S. economy . Government and fixed investments account for the remaining 29 percent. Large and small organizations operate in each sector of the economy shown in Figure 1.3.

The private sectors are an important parr of the economy. The n1anufacruring sector includes the production of basic materials, such as secel, and the production of finished products, such as automobiles and electronic equ ipment. The service sector includes transportation, financ ial services, insurance, and retail sales. Th e government sectors, which provide essential infrastructure, and nonprofit organiza ­tions are also important to our collective well-being because they meet needs not addressed in these economic sectors. "'\X1e have chosen organizations that reflect a broad cross section of business : CarMax, Facebook, No rdstrom, IKEA, Research in Motion, and Deloitte.

Each of these six organizations makes an important and unique contribution to the manufactuting or service sectors of the national economy andlor to our national well-being. These organizations are not alone, however. Hundreds of other small, medium, and large organizations are making valuable and significant contributions to the economic health and human welfare of the United States. Brief examples from many orga nizations are used throughout the book. We hope that by better understanding these organizations, you may have a greater appreciation for your own organization and others within the diverse world of ptivate business enterprises and nonprofit organizations.

FIG u It E

1 .3 11."5. GrossDomesticProduct (Approximately $14.4Trillion for 2008)

Fixed

Personal consumption­durable goods (Il"/o)

Federal government purchases (7%)

PART' INTRODUCTION

CarM ax CarMax is a Fortune 500 company and is the largest retailer of used cars in the United States . Founded in 1992 as a concept fo r revolutionizing the way Americans buy cars, CarMa x opened its first store in 1993 wirh a fleer of 500 used vehicles. The company recorded irs firsr annual profir in the year 2000 and, five years lacer, was listed on Fortune magazine's "100 Best Companies to Work For" list. CarMax has earned that distinction each year since debuting on the list in 2005, advancing from number forty-six in 2008 to nwnber thirry-one in 2009.

CarMax prides itself on changing the perceprion of rhe used car-buying experi­ence, from the ordinary to the extraordinary. From the moment car shoppers step foor on rhe lot, rhey are mer with a sa lesperson rhat remains with them throughout the entire process, from the greeting to the financing. Customers don't haggle for pric­ing. They don't bave ro haggle since the prices of vehicles are disclosed righr away. CarMax goes out of its way to ensure customer confidence in the veh icles it sells by inspecting, reconditioning, and backing them with limited warranties. CarMax's goal is to make rhe car-buying experience painless and fun. According to its CEO, Tom Folliard, "CarMax was founded on the fundamental principle of integriry, reflected in the way we serve our customers, treat each other and deliver our products." This is evidenced by the company being only one of two North American companies to receive the Better Business Bureau·s highest honor in recognition of ethical business pracrices, rhe Internarional Torch Award fo r Marketplace Excellence.

CatMax is hcadquartered in Richmond, Virginia, and currently opera res 100 used-car superstores in 46 markers. The company reported ner sa les and opera ring revenues of $6.97 billion and ner earn ings of $59.2 mill ion in fiscal year 2009 -'9

Facebook Facebook is the second most-trafficked social networking Web site in rhe world. The company was founded in February 2004 by Mark Zuckerberg and his classmates from Harvard University, Chris Hughes, Dustin Moskovitz, and Eduardo Saverin. Facebook was first launched in their dorm room and was avail­able for only Harvard students. Throughout 2004, Facebook expanded its nerwork to orher colleges and by the end of the year, the site had over 1 mill ion active users. Now, anyone can join Facebook; the site has over 200 mill ion active users and is available in 40 translations with 50 more in development.

Since inceprion, the company has developed numerous technologies to help the sharing of information through one's social graph, the digiral mapping of user's real-world social connections, and has made an,..enormous impact on the way people communicate all over the world. Facebook has gone far beyond a communica tion rool for effi~

cienrly inreracting with friends and families, and is now, for example, a marketing tool, a means to

screen job ca ndidates, and a way to rally support for political campaigns and policies. As a forum for over 200 million users and with so many uses, Facebook is navigating uncharted waters with issues such as user privacy and allowable COntent which they are addressing with innovative solu­tions such as customer participation in decision making. b

Facebook has over 850 employees and is headquartered in Palo Alto, California, with its international headquarters in Dublin, lreland. Addirionally, the company has offices in Atlanta, Ch icago, Dallas, Detroit, New York, Venice Beach, London, and Paris ."

Facebook.com worker Ginnie Chan, left, won(s at Faccbool, headquartcrs in Palo Alto, Califomia.

CHAPTER 1 ORGANIZATIONAL BEHAVIOR ANO OPPORTUNITY

Nordstrom Nordstrom is a fashion specia lty chain with a focus on customer ser­vice, generalis size ranges, and a selection of fine apparel, shoes, and accessories for the whole family. The first Nordstrom store was opened as a shoe store in Searrle, Washington, in 1901, under the name Wallin & Nordsrrom. John W. Nordstrom and Carl Walli n founded this store on the principles of exceptional service, selec­tion, quali ty, and value. In the late 1920s, boch Wallin and Nordstrom sold rheir stake in the company to Nordstrom's sons, and members of the Nordstrom family have been involved in the company ever since.

Nordsrrom also strives to be socia lly responsible. Every year, the company . donates millions of dollars to nonprofits, it prints on Forest Stewardship Council (FSC)-ccrrified paper wirh 30 percent recycled content, and in 2007, the com­pany decided to pursue a more organized and comprehensive social responsibility strategy focusing on four primary areas: Supponing Commun ities, Sustaining the Environment, Protecting Human Rights, and Caring for OUf People.

Nordstrom has a long-standing philosophy for hiring personality and moriva­tion and training the skills. When they find the righr employee, they treat them well. They were one of the first companies to offer profit-sharing to employees. The company also has generous 401K, and in 2008, Nordstrom was listed on Forttme magazine's 2008 list of "100 Best Compa nies to Work For."

Today, Nordstrom is still headquartered in Seattle and is one of the nation 's leading fashion specialty retailers with 177 U.S. stores in twenty-eight states."

IKEA IKEA was founded in 1943 by Ingvar Kamprad in Sweden. The name IKEA came from the founders' inirials (I.K .) and Elmtaryd (E) and Agunnaryd (A), the farm and village where he grew up. Kamprad starred by buying sma ll items such as pens, wallets, and picrure frames in bulk and selling them by making individual sales calls. He sold the items for a profit but still at greatly reduced prices. He very quickly outgrew his ability to make sa les calls and started a ma il -order business using the local milk man to deliver products to the train station. In 1950s, Kamprad discovered the cost-saving and transportation advantages of not fuJly assembling its furniture. For the next fifty years, "flat-packs" have served IKEA well as the com­pany has expanded throughout Europe, Asia, the Middle East, and North America as well as developed a Web presence.

IKEA takes corpora te social responsibility seriousl y. Despite its low-coSt model, IKEA does nO(.l:ut COStS at any price . They do not produce products with hazardous materials, they do not use wood from devastated forests, child labor is unacceptable, and suppliers musr have a responsible attitude toward the environ­ment. IKEA coworkers are on-site monitoring suppliers, monitoring forests, and discouraging child labor. Funhermore, IKEA supportS initiatives of organizations such as UNICEF, Save the Children, and Ameri ca n Forests. Every new employee at IKEA goes through environmental training and each Store has an environmental coord inator who acrively works toward saving energy and educating employ­ees and customers on reducing waste. For this focus on responsibility, in 2006, IKEA received the Foreign Policy Association Award for Global Corpor2te Social Responsibility.

!KEA has been recognized as a good place to work' as well. For four consecutive years beginning in 2003~ IKEA was on Working Mother magazine's annual list of the " 100 BeSt Companies for Working Mothers." IKEA was also on Training maga­zine's ann'~allist of tOP companies that excel at human capital development for five consecutive years beginning in 2002. Additionally, lKEA was lisred on Fortune's "100 Best Compdnies to Work For" in 2005, 2006, and 2007.

PART 1 INTRODUCTI ON

Currently, there are more than 250 IKEA Stores in 34 counuies, including 29 in the United States, where IKEA plans to open 3-5 stores a year. lKEA has abou t 128,000 employees in 39 countries and posted $21.2 billion in 2008 revenues"

Research In Motion (RIM) RIM was founded in 1984 by its President and co· CEO Mike Lazaridis, who was joined by Jim Balsillie as co-CEO in 1992. What began as a witeless email solution for enterprise clients has evolved into a multifac­eted and robust wireless platform that suppOrtS a wide range of communications, information, and entertainment applications for both businesses and consumers. RIM is the maker of the hugely populat BlackBerry (a favorite among many busi­ness executi ves) and a host of other wireless solutio ns for the worldwide mobile communications market.

The competition for the global converged device marketshare is heating up, and RIM is on pace to be a major contender. It opened its BlackBerry App World in April 2009 to compete directly for a piece of Apple's fast-growing iPhone business and broaden irs appeal beyond irs well-established base in the corporate world. The BlackBerry boasted approximarely 3.9 million net new subscribers during the fourth quarter of 2009, bringing its total subscriber base to approximately 25 million. By 2009, RIM had shipped over 50 million BlackBerry smartphones and had grown its revenues by an impressive 170,000 percent. Strengthened by irs core values of teamwork and egal itarianism, RLM is confident that it will continue to flourish and "stay in motion . l)

RIM is based in Waterloo, Ontario, Canada and has offices in North America, Europe, and Asia -Pacific. The firm posted revenues of $11.07 billion for fiscal year ended February 28, 2009.43

Deloitte Deloitte is one of rhe world's largest accounting and professional service delivery firms, providing aud it, tax, consulting, and financial advisory services to some of the largest companies in more than twenty industries. It is currently num­ber fo ur of the top fo ur audit ing firms. Bur being number four of the "Big Four" doesn't intimidate Delaine. Instead of selling off its consulting business as its major competitors have done, Deloitte expanded that side of its offerings and is by far the largest in terms of headcount, footprint of services, and global delivery.

Deloitte's origins can be traced from William Welch Deloitte's public accou n­tancy apprenticeship in 1833 with London's B3ofolkruptcy Court to the merger of his own accountancy office \vith George Touche's firm in 1990. This merger created Deloitte & Touche. Today, the "Deloitte" brand encompasses a global network of 70 firms in 142 countries operating under the name Deloitte Touche Tohmatsu. Sun I'harma, Reliance, and Tata Morors are among Deloitte's biggest clients.

As an employer, Deloine has received pra ise for its cu lture of diversity and inclu­sion, professional development, and workplace flexibility. In 2008, it was named one of Workil1g Mother's "Best Companies for Multicultural Women" and marked its fifteenth consecutive year on Workil1g Mother's "100 Best Companies" list. Deloitte's emphasis on high-level recruiting, training programs, and attention to employee benefits has made it a tOP choice for Generation Y workers starting their professional careers.

Deloitte's leadership team includes its CEO James Quigley and U.S. CEO Barry Salzberg. Sharon Allen is the U.S . Chairman of the Board and sits on Deloitte Touche Tohmatsu's global board of direcrors. The firm is headquartered in New York and had a tota l headcount of 44,375 employees in 2008, up nearly 3,400 in 2007. Deloitte reported $27.4 billion in rota l revenues in fiscal year 2008."

CHAPTER 1 ORGANIZATIONAL BEHAVIOR AND OPPORTUN ITY

MccDolliald's Leal"lI1Is from Different Countries

launched in Sweden. France,

o ne of the company's best­

performing and busiest coun­

t ries, has the . Croque MeDa, I wh ich is ham and Swiss cheese on toast. The Netherlands has j - the McKroket, which is a deep-

~ fried patty of beef. South Korea ~ ~ has the Bulgogi Burger, which i

American corporations typically do things t he American way as they globalize and extend their

reach into all parts of the world.

The process of standardization is a uniquely American way of bus i­ness since the adventofthe Model T by Henry Ford. McDonald's has shown that it does not have

to be that way. There was a time when McDonald 's was vilified

McDonald's has learned about countries a nd their unique taStes. Opernt ions around the world arc now able to invent

is a pork patty marinated in soy-based sauce. Taiwan has the Rice Burger, which is shred-for pushing America onto the

wo rld, large sectors of which

their own uni'lue products. ~

resented being Americanized. McDonald 's has turned the tables and begun to learn about other countries and their unique tastes. McDonald's operations around the world are now able to invent their own buns, bags, and business practices. The approach has been a huge success for the company, most of whose busi ness now

comes from global markets. Rather than a Big Mac, the really successful Big Tasty was invented in Germany and

ded beef between two rice pat­ties. Because many Indians do not eat beef, they have the Maharaja Mac, which is two chicken patties with smoke flavored mayo. McDonald's current global success is being achieved through accommodation, not through domination.

SOURCE: P. Gumbel, "Big Mac's Local Flavor," Fortune 157(9 )

(2008), 114-121.

CHANGE CREATES OPPORTUNITIES

lIm! Recognize the opportunities

that change creates for

organizational behavior.

Change creates opponunities and risks, as mentioned earlier in the chapter. Global competition is a leading-force driving change at work and American compan ies can learn from the competition. McDonald's did just that as we see in The Real World 1.1. Competition in the United States and world economies has increaseci significantly dur­ing the past couple of decades, especia lly in industries such as banking, finance, and air transportation. Corporate competition creares performance and cost pressures, which have a ripple effect on people and their behavior at work. While one risk for employ­ees is [he marginalization of parr-time professionals, good management practice can ensure the integtation of these part-time professionals." The competition mal' lead to downsizing and restructuring, yet it p rovides the opponunity for revitalization as well." Further, smalJ companies are not necessarily the losers in this competitive environment. Scientech, a small power and energy company, found it had to enhance its managerial talent and service quality to meet the challenges of growth and big-company competi­tors. Product and service qua li ty is one tool that can help companies become winners in a competitive environment. Problem-solving skills ate another tool used by IBM, Control Data Setvices, 11>c., Northwest Airlines, and Southwest Airl ines to help achieve high-quality products and services.

·PM

Too m uch change leads to chaos; too little change leads to stagnation. Some companies lead the way in creating change and transforming industries, as CarMax did in the used-car industry over the past two decades . Winn ing in a competitive

PART 1 INTROOUCTION

industry can be a transient victory howeverj continuous change is required to stay ahead of the competition . One way that CarMax stayed ahead of the competiti on was through its ethical business practices as we saw in Thinking Ahead. CarMax has been a game changer in their industry.

Three Challenges for Managers Reiated to Change

Chapter 2 develops three challenges for managers related to change in contemporary organizati ons: global ization, workforce diversity, and ethics. These are three dri ving torces creating and shaping changes at work. Further, success in global competi­tion requires organizations to be more res ponsive to ethn ic, religious, and gender diversity as well as persona l integrity in the workforce, in addition to responding positivel y ro the competition in the international marketplace. Workforce demo­graphic change and diversity are critical cha llenges in themselves for the stud y and management of organ izational behavior. 47 Th e theories of motivation, lead ership, and group behavior based on resea rch in a workforce of one composition may not be appl icable in a workforce of a very differenccomposition." This may be especially problematic if ethnic, gender, and/or religious differences lead to conflict berween leaders and followers in organizations. For example, the Russian military establishment found ethnic and religious conflicts between th e officers and en li sted corps a serious imped iment to unit cohes ion and performance.

Global Competition in Business

Managers and executives in the United States face radical change in response to

increased globa l competition. According to noted economist Lester Thurow, this competition is characterized by intense rivalry between the United States, Japan, and Europe in core industries. 49 Econom ic competition places pressure on all cat­egories of employees to be productive and to add va lue to the firm. The uncertainty of unemployment resulting from corporate warfare and competition is an ongoing feature of organizational life for people in compani es or industr ies that pursue cost­cutting strategies to achieve economic success. The global competition in the auto­motive industry among the Japanese, U.S., and European car compan ies embodies the intensity that can be expected in other industri es in the future.

Some people feel that the furure must be the-focus in coming to grips with this international competi ti on; others believe we can deal with the future o nl y by study­ing the pasr.50 Global, economic, and organizational changes have dramatic effects on the study and management of o rganizatio nal behavior. For exa mple, American college students are fou nd to have a much more positive atti tu de abour globalization than the general public and older generations.51 How positive were your perceptions of the change you analyzed in You 1.1? Are you an optimist who sees opportunity or a pessimist who sees threat?

Customer Focused for High Qua'ity

Global co mpetition has challenged organizations to become more customer focused, to meet changing product and service dema nds, alfld to exceed customers' expecta­tions of high quality. Quality has the potential for giv ing o rga nizat ions in viable ind ustries a competitive edge in meeting internati onal competition . In Thinking Ahead, we saw that CarMax has a strong customer focus.

Q uality became a rubric for products and services of high starus. Total qual­ity is defined in many wa ys." Toral qua li ry managemenr (TQM ) is the complere dedication to co ntinu o us improvement and to customers so that their needs ate

C H APTER 1 ORGANIZATIONAL BEHA VIOR AND OPPORTUN ITY

Six Sigm a

A high· performance system to

execute business strategy that is customer driven, emphasizes

quantitative decision making, and places a priority on saving money.

met and their ex pectations exceeded . Quality is a customer-oriented philosophy of managemen t with important implications for virtually all aspects of organiza­tional behavior. Quali ty cannOt be optim ized, because customer needs and expec­tations are always changing. It- is a cultural value embedded in highly successful organizations. Ford Moror Company's dramat ic metamorphosis as an automotive leader is artributable to the decision to "make qual ity Job One" in all aspects of the design and manufacture of cars. W hi le TQM management consulting went through a boom-tO-bust cycle, its sol id technical foundation means that it is here to stay.53

QuaLty improvement enhances the probabil ity of organiza tional success in increas­ingly competitive ind usuies. One study of 193 general med ical hospitals examined seven TQM practices and found them positively related to the financial performance of the hospitak54 Qualiey improvement is an enduring feature of an organization's culture and of the economic competition we face today. It leads to competitive advan­tage through custOmer responsiveness, results acceleration, and resource effective­ness" The three key questions in eva luating quality improvement ideas for people at work are as follows: (1) Does the idea improve custOmer response? (2) Does the idea accelerate results? (3) Does the idea increase the effectiveness of resources? A "yes" answer means the idea shou ld be implemented to improve quality.

Six Sigma is a philosophy for company-wide quality improvement developed by MotOro la and popu larized by General Electric. The Six Sigma program is characterized by its customer-driven approach, its emphasis on decis ion making based on quanritative data, and its priority on saving money .56 It has evolved into a high-performance system to execute business strategy, Part of its quality program is a 12-srep problem-solving method specifica ll y designed to lead a Six Sigma "Black Belt" to significant improvement with in a defined process. It tackl es problems in four p hases : (1) measure, (2) analyze, (3 ) improve, and (4) control. In addition, it demands that executives be aligned to the right objective and 'targets, quality improvement teams be mobil ized for action, results be accelerated, and sustained improvement be monitored. Six Sigma is set up in a way that it can be applied to a range of problems and areas, from manufacturing settings to service work environments. Table 1. 1 contrasts Six Sigma and TQM. One study com­pared Six Sigma with two other methods for qua li ty improvement (specifically, Taguchi 's methods and the Shainin system) an d found it to be the most complete strategy of the three~with a stro ng emphasis on exploiting statistical modeling techniques.57

TAB l E

' -;J .• 1 J:"Ontr:a:stin~5ix5!gma"'ndTDtal QlJalityiMan"ogement .1

Six Sigma Total Quality Ma nage m e nt

Executive ownership Self-d irected work teams

Business strategy execution system Quality initiative

Truly cross-fu nctional ,. Largely with in a s ingle function

Focused training with veri fiable No mass train ing in statistics and quality

Return on investment Return on investment

Bus iness resu lts oriented Quali ty oriented

SOURCE: M. Barney, "Motorola's Second Generation," Sile Sigma FOfllm Magazine (May 2002): 13.

PART 1 INTRODUCTION

Behavior and Quality at Work

Whereas rota I quality may draw on reliability engineering or just-in-ti me manage­ment, rotal qual iry improvement can be successful only when employees have the skills and authority ro respond to customer needs." Total qua lity has direct and important effects on the behavior of employees at all levels in the orga nization, nor just on employees working direedy with customers. Chief executives can advance total quality by engaging in participative management, being will ing ro change everyth ing, focusing quality efforts on cusromer service (not cost cutting), including quality as a criterion in reward systems, improving the flow of information regard­ing qua li ty improvement successes or fa ilures, and being actively and personally involved in qualit)1 efforts. Wh ile serv ing as chairman of Motorola, George Fisher e J11pJ~asized the behavioral attributes of leadership, cooperati on, commun ication, and participation as imporrant elements in the company's Six Sigma program.

Quality improvement continues to be important to OUf competitiveness. The U.S. Department of Commerce's sponsorship of an annual award in the name of Malcolm Ba ldrige, former secretary of commerce iD the Reagan administration, recognizes companies excelling in quality improvement and management. The Malcolm Baldrige Nationa l Quality Award examination eval uates an organiza tion in seven categories: leadership, information and analysis, strategic quality pla nn ing, human reSOurce uti lization! quality assurance of prod ucts and services, qua li ty results, and cuStomer satisfaction.

Accord ing to former Presiden t George H . W . Bush, quality management is not JUSt a strategy. It must be a new style of working, even a new style of thinking. A dedication to quality and excell ence is more than good business. It is a way of life, giving something back to society, offering your best to others .

Q uality is one watchword for competitive success. Many factors can affect ser­vice qua li ty, and one study in the airline industry fou nd that multimarket contact led to delays in on-time arri vals, one key indicator of quality for airlin e passengers.59

Organizati ons rhar do not respond to custOmer needs lind rheir customers choosing alternative prod uct and service suppliers who are will ing ro exceed their expecta­tions . With this sa id, you sho ul d not concl ude that total quality is a panacea for all organizations Or that it guarantees unqualified success.

M anaging Organizat ional Behavior in Changing Times

Over and above the challenge of quality improvement to meet international compe­tition, managing organizational behavior dur ing changing times is challenging for at least three reasons: (1) the increasing global ization of organizations! operating terri­tory, (2) the increasing diversity of organizational workforces, and (3) the contin u­ing demand fo r higher levels of motal and erhica l behavior at work . These a re the important issues to address in managing people. For example! a federa l governmenr study found diversity management strongly linked to both work group performance and job satisfaction .60 1n addition, people of color saw benefits from diversity man­agement above and beyond those experienced by white emp loyees.

Each of these three issues is explored in detail in Chapter 2 and highlighted throughout the text because they are intertwined in the contemporary practice of organizational behavior. For example, the issue of women in the workplace con­cerns workforce diversity and at the same time overlaps rhe global ization issue. Gend~r ro les a re often defined differently in various cultures, an d sexual harassmenr is a frequent ethica l problem for orga nizat ions in the United Stares, Europe, Israe l, and SOllth Africa . For another example, the public demand for ethical behavior in business is grov./ ing and the meaning of corporate codes of eth ics can no longer be

C HAPTER 1 ORGA NI ZATIONAL BEHAVIOR AND OPPORTUNITY

An Ethics Czar foe- President Obama Will You T al<e the Job?

~

i § ~ • ui

to demonstrate these qualities in all the things you think, say, and do. Second , praise generously. Providing corrective feedback at critical times can save lives and withholding praise when well deserved can kill initiative. Third, criti­cize to build up, not tear down. Legitimate criticism is linked to careful, accurate observation; it is not negative. Fourth , be kind, unwind. Learn to relax and let the small stuff go. Most of it is small stuff. Fifth, punish fairly. When punish-

~ ment is needed, it must be adminis-u

~ tered justly. Sixth, if it is to be, it is up to

Early in his administration, President Obama appointed an impressive array of policy leaders to tackle the country's ever-mounting social and economic problems. Tough times call for creative solutions and so the president looked to the-best and the brightest to help lead the nation. There was the Energy Czar, the Health Reform Czar, the Technology Czar, and the Green Czar; how about the Ethics Czar? Rather than federalizing the oversight of ethi­cal behavior, the government could outsource the job. That is, make every American personally responsible for ethics and integrity. Will you be a n Ethics Czar? That is right, you! CEOs,

President Bamck Obama "nnounces thee. Some problems solve themselves. However, most problems are solved by problem solvers. Be a problem solver

a nomination.

managers, leaders, entrepreneurs, and cabinetmakers can all set high standards in their companies and make a positive difference. Here is a Code of Conduct for Ethics Czars who accept the appointment. First, ,lead by example. The best way to promote ethics and integrity is

at work and take personal responsibility for what hap­pens in your space and in your place of work.

SOURCE: B. Weinstein, "We Need an Ethics Czar to Battle Widespread

Breakdown in Standards,': BusincssWeek (March 16, 2009).

~ Demonstrate the valu e of

objective knowledge and skill

development in the study of

organizational behavior.

objective knowledge

Knowledge that results from

research and scientific activities.

skill development

The mastery of abilities essential

to successfu l function ing in

organizations.

taken for granted, which means that integrating ethical reasoning inro work is the only way to maximize business opportunities." Should President Obama involve the federal government with an Ethics Czar' Read about it in The Real World 1.2. Therefore, students of organizational behavior mUSt appreciate and understand these important issues . ..

lEARNING ABOUT ORGANiZATIONAL BEHAVIOR

Organizational behavior is based on scientific knowledge and applied practice. It involves the study of abstract ideas, such as valence and expectancy in motivation. as well as the study of concrete matters, such as observable behaviors an d medical symptoms of distress at work. Therefore, learning about orga nizational behavior includes at least three activities, as shown in Figure 1.4. First, the science of orga­nizational behavior requires the mastery of a certain body of objective knowledge. Objective knowledge results from research and scientific activities, as reflected in the Science feature in each chapter. Second, the practice of organizational behavior requires skill development based on knowledge and an understanding of yourself in order to master the abilities essential to success. The You features in each chap­ter challenge you to know yourself and apply what you are learning. Third, both objective knowledge and skill development must be applied in real-world settings. The Real World features in each chapter open windows into organizational realities where science and sk ills are applied.

PART 1 INTRODUCTION

F I GURE

Learning Act1vity Pedagogical Feature; ---------1

Theories Research Articles

Exercises Questionnaires

Learning is challenging and fun because we are all different. Some would deny our diversity, as the French have in not wanting to acknowledge differences in eth­nic origin .62 Within learning environments, student diversiry is best addressed in the learning process through more options for students and greater responsibility on the part of students as coproducers in the effort and fun of learning. 63 For those who are blind or have vision impairments, learning can be a special challenge. The alignment of teaching styles with learning styles is importaor for the best fit, and teaching is no longer just verbal and visual bur also virtual with a new generation of students.'" To gain a better understanding of yourself as a learner, thereby maximizing your poten­tial and developing strategies in specific learrung.environments, you need [0 evaluate the way you prefer to learn and process information. You 1.2 offers a quick way of assessing your learning style. If you are a visual learner, then use charts, maps, PowerPoint slides, videos, the Internet, notes, or flash cards, and write things out for visual review. If you are an aud itory learner, then lisren, take notes during lectures, and consider raping them so you can fill in gaps later; review your notes frequently; and recite key concepts our loud. If you are a tactile learner, trace words as you are saying them, write down facts several times, and make study sheets.

Objective Knowledge Objective knowledge, in any field of stud y, is developed through basic and applied research. Research in organizational behavior has fon tinued since early research on scientific management. Acquiring objective knowledge requires the cognitive mas­tery of theories, conceptual models, and research findings. In this book, the objec­tive knowledge in each chapter is reflected in the nOtes that support the text and in the Science fearure included in each chapter. Mastering the concepts and ideas that come from these notes enables you to intelligently discuss topics such as motivation, performance, leadership,65 and executive stress.66

C HAPTER 1 ORGANIZATIONAL BEHAVIOR AND OPPORTUN ITY

Organizational and Work Context

.'

\~ V'

J1 \(JXLl l. L.earning Style inventory

Directions: This 24-irem survey is not ti med. Answer each question as honestly as you can. Place a check on the

appropriate line after each statement.

1. Ca n remember more about a subject through the lecture method with information , explanations, and discussion.

2. Prefer information to be written on t he chalkboard, with the

use of visual aids and assigned readings. 3. Like to write things down or CO take notes for visual review.

4. Prefer to use posters, models, or actual practice and some act ivities in class.

S. Req uire explanations of diagrams, graphs, or visual directions.

6. Enjoy working with my ha nds or ma king things. 7. Am skillful with and enjoy developing and making graphs

a nd charts. 8. Can tell if sounds match when presented with pairs of sounds. 9. Remember best by writing things down several t imes .

10. Can understand and follow directions on maps. 11. Do better at academic subjects by liste ning to lectures and tapes. 12. Play with coins or keys in pockets. 13. Learn to spell better by repeat ing the word out loud than by

wri ting the word on paper. 14. Can better understand a news development by reading about

it in the pa per than by listen ing to the radio.

15. Chew gu m, smoke, or snack during studies. 16. Feel the best way to remem ber is to picture it in your head.

17. Learn spel ling by "finger spelling" words. 18. Wo uld rather listen to a good lecture or speech than read

about the same material in a textbook. 19. Am good at working a nd solving jigsaw puzzl~s and mazes. 20. Grip objects in hands during learning period. 21. Prefer listening to the news on the radio rather than reading

about it in the newspaper. 22. Obtain informatio n o n a n interest ing subject by reading

relevant materials. 23. Feel very comfortable touching others, hugging,

hand-shaking, etc. 24. Follow oral directions better than written ones.

Scoring Pro cedure s :

OFTEN SOMETIMES

Score 5 points fo r each OFTEN, 3 points for each SOM ETI MES, and 1 point for each SELDOM.

Visual Preference Score: 5 points for questions 2 + 3"+ 7 + 10 + 14 + 16 + 19 + 22 = __ _

Auditory Preference Score: 5 points for questions 1 + 5 + 8 + 11 + 13 + 18 + 21 + 24 = __ _

Tacti le Preference Score: 5 points for questions 4 + 6 + 9 + 12 + 15 + 17 + 20 + 23 = __

SELDOM

SOURCE: Adapted fromJ. N. Gardner and A.J. Jewler, Your College &pemnce: Strategies (or Success, Third C: .1cise Edition (Belmont, CA: Wadsworth/

ITP , 1998), 62-63: E. Jensen , Student Success Secrets , 4th ed . (Hauppauge , NY: Barron 's, 1996), 33- 36.

PART 1 INTRODU CTION

We encourage instructors and students of organizational behavior to think cri ti ­cally about the objective knowledge in organizational behavior. Only by engaging in cri tical thin king can one question or challenge the results of specific resea rch an d responsibly consider how to apply research results in a particular work setti ng. Rote memorization does not enable rhe student to appreciate the complexiry of specific theories or the interrelationships among concepts, ideas, and topics. Good critical th inking, by contrast, enables the stu dent to identify inconsistencies and limitations in the current body of objective knowledge_

Critical thinking, based on knowledge and understanding of basic ideas, leads to inquis itive exploration and is a key to accepting the responsibility of coproducer in the learning process. A questioning, probing atti tu de is at the core of critical t hink­ing. The student of organizational behavior shou ld evolve into a critica l consumer of knowledge related to organizational behavior- one who is able to intelligenrly question the latest research results and distingu ish plausible, sound new approaches from fads that lack substance or adequate foundation . Ideally, the student of orga ni­zational behavior develops in to a scientific professional manager who is knowledge.

able in the art and science of organizational behavior.

Skill Development

Learning about organizational behavior requires doing as well as knowi ng. The developmenr of sk ills and abi lities requires tha t students be challenged by the instructOr and by themselves. Skill development is a very act ive component of the learning process. The You featu res in each chapter give you a chance to lea rn about yourself, challenge yourself, a nd developmentally apply what you a te learning.

The U.S. Department of Labor wants people to achieve the necessary ski lls to

be successful in the workplace. " The essentia l ski lls identified by the Department of Labor are (1) resource management sk ills such as time management; (2) informa­tion managemem skills such as data interpreta tion; (3) persona l interaction skills

such as teamwork; (4) systems behavior and performance skills such as cause- effect relationships; and (5) technology ut ilization ski lls such as troubleshooting. Many of these skills, Stich as decision making and informacion management, are direerly

related to the study of organizational behavior" Developing skills is different from acquiting objective knowledge in that it

requires structured practice and feedback. A key function of experiential learning is ro engage the srudent in indi vidual or group activities that arc systematica lly reviewed, leading to new skills and understandings. Objective knowledge acquisi­tion and skill development are interrelated. The process for learn ing from structured or experiential activit ies is depicted in Figure 1.5. The studenr engages in an indi­vidual or group-structured activi ty and systematicall y reviews that activity, which

leads to new or modified knowledge and skills. If skill development and strucrured learning occur in this way, there should be

an inherentl y self-correcting elemenr to learning because of the modification of th e srudent's knowledge and skills over time'· To ensure that sk ill development does occur and that the learning is self-correcting as it occurs, one must fo ll ow three basic assumptions that underlie the previous model..

First, each student must accept responsibility for his or her own behavior, actions, and learning. This is a key to the coprod ucer role in the learning process. A group cannot learn for its members . Each member must accept responsibiliry for what he or she does and learns. Denial of responsibility helps no one, least of all

the learner. Second, each student must actively participate in the individual or group-struc­

tuted lea rning activity. Structured learn ing is an act ive process. In g roup act ivities,

CHAPTER 1 ORGANIZATIONAL BEHAVI OR ANO OPPORTUNITY

F1GURE

. ; -'.: 'i~ ~'~tcDn'clusions based i.;! ~.,:orl;the'5ystematic Fi 1~t~lIlew . .ie,g.;rthe '. 1i9l"~"P'~ld;betterL,,,,,,;;

--_._-_ ... __ ._ .. __ .. _ .. _--

-;Systematic review :~ ,.uf 1he :structured '; ~'activjty ' (e.g., compare :'.7 ,' lndividual :and ,group i.:; results) t;

'.:,

everyone suffers if just one person adopts a passive attitude. Hence, all must activel y participate.

Third, each student must be open to new information, new skills, new ideas, and experimentation. This does not mean that students should be indiscriminate. It does mean that they should have a nondefensive, open attitude so that change is possible through the learning process.

Participating in group activ ities helps to ensure skill devtloprnent and that learn­ing is self-correcting as it occurs .

Application of Knowledge and Skills

The Real World features in each chapter give you a window into organizational realities and help you assess yo ur own knowledge of the real world at work. Understanding the real world is one essential aspect of appreciating organizational behavior, the other twO being understanding scientific knowl edge and understand­ing yourself.

One of the advantages of structured, experiential learning is that a person can explo re new behaviors and skills in a compara tively safe environment. Losing your temper in a classroom activity and learning about the potential adverse impa ct on other people will have dramatically different consequences from doing so with an important customer in a tense work si tuati on . Learning spaces that encourage the interface of student learning sryles with institutional learning environm ents create safe spaces to engage the bra in to form abstract hypotheses, to actively test these hypotheses through concrete experience, and to reflectively observe the outcomes in behavior and experience .7o The ultimate objective of ski ll application and experien­tiallearning is that students be able to transfer the learning process they employed in structured classroom act ivities and learning spaces to unstructured opportunities in the workplace.

Although organizational behavior is an applied discipline, students a re not "tra ined" in organizational behavior. Rather, they are "educated" in organ iza tional

PART 1 INTRODUCTION

behavior and are a coproducer in learning. The distinction between these two modes of learning is found in the degtee of direct and immediate applicability of either knowledge or skills. As an activity, training more nearly ties direct objective knowledge or sk ill development to specific applications. By con tra st, education enhances a person's residual pool of objective knowledge an d sk ills that may then be selectively applied later-sometimes significantly later-when the opportunity presents itself. Hence, education is highly consistent with the concept of lifelong learning. Especially in a growing area of knowledge such as organizational behav­ior, the student ca n think of the first course as the outset"of lifelong learning about the topi cs and subject.

PLAN FOR THE SOOB<

Cha llenge and opportunity are watchwords in organizations during these changing times. Managets and employees alike are challenged to meet change in positive and optimistic ways: change in how work gets done, change in psychological and legal contracts between individual s and organizations, change in who is working in the organiza tion, and change in the basis for organ ization. Three challenges for man­agers are the global environment, workplace diversity, and ethica l issues at work. These rh.tee challenges, which are discussed in detail in Chaprer 2, are shaping the changes occurring in organizations throughout the world. For example, the increas­ing globalization of business has led to intense international competi tion in core industries, and the changing demographics of the workplace have led to gender, age, racial , and ethnic diversity among working populations.

The first two chapters compose Part 1 of the book, the introduction . Against the backdrop of the challenges discussed here, we develop and explore the specific sub­jects i.n organizational behavior. In addition to the introduction, the text has three major partS. Part 2 addtesses indi vidual processes and behav ior. Part 3 addtesses interpersonal processes and behavior. Parr 4 addresses organizational processes and structure.

The five chapters in Part 2 are designed to help the reader understand specific aspects of human behavior. Chapter 3 discusses personality, perception, and attri­bution. Chapter 4 examines 3ttiwcies, values, and ethics. What was your anirucie toward change in You I.]? Chapters 5 and 6 adJ.ress the broad range of motivational theories, learning, and performance management in orga nizations. Finally, Chapter 7 considers stress and well-being, including healthy aspects of life, ar work.

Part 3 is composed of six chapters designed to help the reader better understand interpersonal and group dynamics in organ iza tions. Chaprer 8 addresses comm uni­cation in organizations. Chapter 9 focuses on teamwork and groups as an increas­ingly prominent featu te of the wotkplace. Chapter 10 examines how individuals and grou ps make decisions. Chapter 11 is about power and politics, one very dynamic aspeer of organizational life. Chapter 12 addresses the companion topics of leadership and followership. Finally, Chapter 13 exa mines conflict at work, nOt all of which we consider bad.

The five chapters in rarr 4 are designed to help the reader bettet understand orga­nizational processes and the orga nizati onal contexr of behavior at work. Chapter 14 examines traditional and contempotary approaches to job design. Chapter] 5 develops the topics of organizational design and structu re, g iving special attention to contemporary forces reshaping organizations and ro emerging forms of orga ni za ­tion. Chapter 16 addresses the culture of the otganization. Chapter] 7 focuses on the important issue of careet management. Finally, Chapter 18 brings closure to the text and the main theme of change by addressing the topic of managing change.

CHAPTER 1 ORGANIZATIONAL BEHAVIOR AND OPPORTUNITY

MANAGERiAL IMPUCATBONS: FOUNDATIONS FOR THE FUTURE

Managers must consider personal and environmental factors to understand full y

how people behave in organizations and to help them reach their maximum potential. Human behavior is complex and at t imes confusing. Characteristics of the organizational system and formal-informal dynamics at work are importa nt

environmental factors thar influence people's behavior. Managers should look fo r similarities and differences in manufacturing, service-oriented, nonprofit, and gov­

ernmental organizations.

Change may be seen as a ducat or as an opportunity by contemporary man­

agers. For example, hospital managers face nOt only clinical challenges but also organizational learning and the implementation of effective high involvement man­agement practices with a professional workforce. 71 Changing custonlcr demands

for high-quality outputs in othet indusrries challenges companies to beat the globa l competition. Globalization, workforce diversity, and ethics are three challenges for managers that are developed in Chapter 2 . Another aspect of meeting the compe­tition is learning. Managers must continua lly upgrade rheir knowledge about all

W o m e n Triumph in Times of Recession-Really?

American women are finally in a position to surpass men in the workforce, but it took an economic reces­sion for them to do it. The layoffs and plam: closures

experienced in the man ufacturing and construction

industries have hit working men terribly hard . . Some

estimate that 82 percent of the job losses during the recession have occurred for men. Why the differe~ce? Women tend to hold jobs in "safer" recession-proof industries like healthcare and education.

Women 's increased representation in the work­force should be cause for celebration. However, several issues loom beneath the surface that may

damper the festivities. First, good benefits came with

those good jobs in manufacturing and construction.

This allowed men to support their families at much

higher levels than women are able to do with their

usafe" jobs. Women tend to work in part-time jobs

with little or no health or unemployment insurance. And while the proportion of women in the wor'k­

force may be on pace to surpass that of men, their positions and salaries have not. The average salary

of full-time women remains a . fraction (between 77 and 80 percent) of men. Men continue to hold the

majority of executive-level jobs. Finally, economists

have fo und that even when bot h spouses work, work­

ing women devote much more time to child care and

housework than men. Many agree that the job for laid off spouses-husbands especially-is not to settle into a new support role in which they help with cooking,

cleaning, and running errands. His primary job is to

find another job.

1. Do you believe an extended recession cO':lld

completely change gender roles in the United

States? Explain.

2. Do companies have a responsibility to raise women 's salaries to accommodate their roles as

primary breadwinners? Why or why not?

SOURCE: C. Rampell, "As Layoffs Surge, Women May Pass Me n

in Job Force," New York Times (February 6, 2009): A 1; O. Cauchon , , "Women Take Over Job Market," ABCNews.com.

PART 1 INT RODU CT ION

aspects of their businesses, to include especia lly the human side of the enterprise. They must hone both their technical a nd interpersonal ski lls, engaging in a lifelong educational process. This is a fun and somewhat unp redictable process that ca n at t imes be frustrati ng, while always cha llenging and exciting.

Several business trends a nd ongoi ng changes are affecting managers across the globe. T hese include continuing indust rial restructuring, a dramatic increase in the amount and availability of information, a need ro attract and reta in the best employees, a need to understand a w ide ra nge of human a nd cultura l differences, and a rapid shortening of response t imes in all asp ects of busi ness acci viries . Further, rhe o ld company towns a re largely relics of the past, and managers are bei ng ca lled on to fe-integrate their businesses w ith communities, cu ltures, and societies a t a m uch broader level tha n has ever been req uired before. T rust, predictab ility, a nd a sense of security become imporrant issues in this context. Reweaving the fabr ic of human relat ionsh ips within, across, a nd outside [he orga nization is a cha llenge for managers today .

Knowledge becomes power in tracking th ese trends a nd addressing these issues . Facts a nd informa tion are twO elements of knowledge in this con text. Theori es are a th ird element of a m anager 's knowledge base. Good rheories are tools th at help managers understand human and o rganizationa l behaviot, help them make good business decisions, a nd inform them about actions ro ta ke or [ 0 refra in fro m tak­ing. Managers always use theories, if nOt those generated from systema tic resea rch, then t hose evolved from the manager's implicit observa ti on . Theori es tell us how orga ni za tions, busin ess, and people work-or do not wo rk. Therefo re, t he studen t is chall enged to mas ter the th eories in each topic a rea and then apply and test the theory in the real wo rld o f organiza tio na l life . The cha llenge fo r the stud ent a nd the ma nager is to see what w o rks and w hat does not work in th eir specific work

context.

"

I:..OOB{JNG BACH<: CARlY1AX

Real Success in Challe ng ing T im es

The sha rp economic recess ion of 2008-2009 along with

the accompanyi ng financial cri sis placed t remendou!>

., ~

" ~ ~ >

among others. The U.S. car manufacturing companies

~ The way car buying ~ be.· 8

pressures on the globa l banki ng and auto industri es,

experienced a full-blown crisis, General Motors required federal financial assistance to survive,

and Chrys ler went into bankru ptcy court (0 dramatically restructure. Auto sales declined dra -

matica lly and many compared the crisis to that of the Great Depr'ess ion of the 1930s. These were

challenging times for managers and employees in a wide range of industries. Unemployment

r'ates rose and people worri ed about maki ng their home loan paymenLS to avoid fo reclosure.

While some companies and ind ustries were hurt much worse than others , no one was ab le to

escape the pressures, changes, and cha ll enges of th is pe r·iod.

C H APT ER 1 ORGANIZATIONAL BEHAVIOR AND OPPORTUNITY

In the midst of these challenging times, CarM ax continued to display so lid success. In early

2009, CarMax was named one of Fortune's "l Oa Best Com panies to Work For.'>72 T his d isc; nc ·

tion was for the fifth straight year, beginning in 2005. Ranked number' 3 1 o n the Fortune 2009

li st, CarMax cited the dedication a nd innova6veness of its many associates wh o m oved the

compa ny forward in the cha ll enging times and difficu h: retail environ ment of t he pe l·iod. Rathe r

than pulling in during this period, which is a common practice for companies in a c ris is, CarMax

associates I"cached out:. Participation in the company's Volunteer Team·Bui lder Program, wh ich

is aimed al community se rvice , rose signi fi cantly amo ng asso ciates. Giving to the ir communi ties

is JUSt o ne aspect of making CarMax a great place to work.

In add ition to be ing a great place to work, Ca rMax invests in its associates and was named

in Training magazine 's "Trainrng Top 1 25. "7.1 Each yea r, 125 organizations that excel at associ-

ate developme nt are selected, and 2009 was r.he second consecutive year in which CarMa>: was

named. The companies a re chosen based on criteri a such as best rraining practices, eva luation

methods, and out.c;tanding training ini t iatives. In the case of Car Max, the company was cited for

three premier train ing progl'ams: Extensive Sales T ,'ain ing, BASE Cam p , a nd Culwl-e of Integrity

Training . During challengi ng a nd diffi cult times, some companies cut investmenr COStS aimed al

people development. That can make the company lean, a nd unfortunately weak. By investing in

its associates during cha ll engi ng times , CarMax a ims ro be fi t and strong for the lo ng run. Strong,

competent people meet the chal lenges of d ifficult times more effectively and successfully.

Chapter Summary

1. Organizational behavior is individual behavior and group dynamics in organ izations.

5, Manufacturing organizations, service organizations, privately owned compa nies, and nonprofit organiza­tions all contribute to our national well-being. 2. Change is an opportunity when one has a positive

attitude, asks questions, listens, and is committed to succeed.

3. Organizations are open systems composed of people, structure, and technology committed to a task.

4. Orga ni zations have formal and informal elements within them.

Key Terms ,.

6. The changes and challenges fac ing managers are driven by international competition and customer demands .

7. Learning about organizational behavior requires a ma srery of objecrive knowledge, specific skill devel­opment, and thoughtful application.

anth ropology (p. 6) challenge (p. 4 ) cha nge (p. 4 ) engineering (p. 6)

formal organization (p. 10) Hawthorne studies (p. J 0 ) informal organization (p . 10) management (p. 6)

medicine (p. 6) objective knowledge (p. 20 ) opportunities (p. 4 ) organizational behavior (p. 4 )

28 PART 1 INTRODUCTION

people (p. 9)

psychology (p. 5) Six Sigma (p. 18)

sk ill development (p. 20) sociology (p. 6)

task (p . 9) technology (p . 10)

structure (p. 10)

Review Questions

1. Define organizational behavior. What is its focus?

2. Identify the four action steps for responding posi­tively to cha nge .

3 . What is an organization ? What are irs fOllf system components? Give an example of each.

4. Briefly describe the elements of the fo rmal and the informal organization. Give examples of each.

5. Discuss the six foclIs organizations used in the book.

6. Describe how competiti on and total quali ty are affecting organ izational behavior. Why is manag~ ing o rganizat ional behavior in changing times challenging?

Discussion and Communication Questions

1. How do the forma l aspects of your work environ­ment affect you? What informal aspects of your work environment are important?

2. What is the biggest competitive challenge or change facing the businesses in your industry today? Will that be different in the next five years?

3. Describe the next chief executive of your company and what she or he must do to succeed.

4 . Discuss rwo ways people learn about organizational behavior.

5. Which of the focus companies is your own com­pany most like? Do you work for one of these focus companies? Which company would you most like to work for?

6. (co 111_munication question) Prepare a memo about an organizational change occurring where rOll work

Ethical Dilemma

Disco Global is an online and technology systems firm based out of Atlanta, Georgia; the company has been steadily acq uiring a significant market share for the last five years. Founded by Melissa Young and Brian Whitman, Disco Global 's current strategic goal is to

penetrate international ma rkets w ithin the next three years. When Melissa and Btian first conceived of Disco Global, they envisioned growing a small niche company into one that served the widest market available"while they stay true to their professional values of corporate social responsibility.

Given Disco Global's positioning, the company has been advised to make inroads into the coveted Asian market at this time. Both co-CEO Melissa and Brian agree with this strategy and have secured a local

CHAPTER 1 ORGANIZATI ONAL BEHAVIOR AND OPPORTUNITY

or in your college or university . Write a 100-word description of the change and, usi ng Figure 1.1, identify how it is affecting the people, structure, task, andlor technology of the organization.

7. (communication question) Develop an oral presen­tat ion about the changes and challenges facing your college or university based on an interview with a faculty member or administrator. Be prepared to describe the changes and challenges. Are these good or bad changes? Why?

8. (communication. question) Prepare a brief descrip ~

rion of a service or manu.facturing company, entre­preneurial venture, or nonprofit organization of your choice. Go to the library and read about the organization from severa l sources; then use these multiple sources to write your description.

marketing team in Hong Kong to help facilitate their entrance inm China )s marketplace. Henry Chee Wan, their liaison in Hong Kong, has developed a very tight plan that everyone agrees will promote Disco Global in a positive and effic ient manner.

During the cour,. of their work with Henry, Melissa and Brian learn some facts about working w ithin the Chinese governmerital structu re that have given them pause. In the company)s vision statement, Melissa and Brian specifically incl uded a mention of freedom to obtain knowledge. As they learn more about China's Interner censorship practices, they grow more concerned rhat in acquiescing to the government's conditions, they are moving too far away from their compa ny)s orig in al goa ls and ethica l compass . Henry explains to Melissa

29

and Brian that the Internet is heavily regulated in China and that if their software or hardware was used with criminal, seditious intent, they would be liable for help­ing to reveal the user and cu lprit. Having their technol­ogy being used as filters for what Chinese people can read and hear seems contrary [0 the conception of Disco Global.

However, Melissa and Brian want to capitalize on rhe ;\sian market, and they agree rhat if Disco Global

Experiential Exercises

1.1 What:'s Changing at Worl,?

This exercise provides an opportunity to discuss changes occurring in your workplace and university. These changes may be for the better or the worse. However, rather than eval uating whether they are good or bad changes, begin by simply identifying the changes that are occurring. Later, yo u can evaluate whether they are good or bad.

Srep 1. The class forms into groups of approximately six members each. Each group elects a spokesperson and answers the following questions. The group should spend at least five minutes on each question . Make sure that each mem ber of the group makes a contribution to

each question . The spokesperson for each group should be ready to share the group's collecrive responses.

a .

b.

What are the changes occurring in ),our workplace and university? Members should focus both on inter­nal changes, such as reorganizations, and on external changes, such as new customers or competitors. Develop a list of rhe changes discussed in your group.

What are the forces that are driving the changes? To answer this quesrion, look for the causes of the changes members of the group are observing. For

1.2 My Absolute Worst Job

Purpose: To become acquainted with fell ow classmates. G"Q1,lP size: Any number of groups of two. Exercise schedule:

1. Write answers to the fo llowing questions :

30

a. What was rhe worst job YOll ever had? Describe the following:

(1) The type of work you did

(2) Your boss

(3) Your coworkers

•

doesn't bring Internet and technology services to China, someone else wi ll. Melissa and Brian now have to decide which rhe best decision for Disco Global is : stay true to their stated values or their strategic plan?

Questions:

1. Using conseq uential, cule-based and character theo­ries, evaluate Melissa and Brian's options.

2. What should Melissa and Brian do? Why?

example, a reorganization may be caused by new business opportunities, by new technologies, or by a .combination of factors .

c. What signs of resistance to change do you see OCCUl'­

";,'g? Change is not always easy for people or orga­nizations. Do you see signs of resistance, such as fr ustration, anger, increased absences, or other forms of discomfort with the changes you observe?

Step 2. Once you have answered the three questions in Step 1, your group needs ro spend some time evaluating whether these changes are good or bad. Decide whether each change on the list developed in Step 1a is good or bad. In addition, answer the question "Why?" ThaT is, why is this change good? Why is that change bad?

Step 3. Each group shares the results of its answers to

the questions in Step 1 and its evaluarion of the changes completed in Step 2. Cross-team questions and discus­sion follow.

Step 4. Your instructor may allow a few minutes at the end of rhe class period ro comment on his or her per­ceptions of changes occurring within the university, or businesses with which he or she is fam iliar.

,.

(4) The organization and irs policies

(5) What made the job so bad

b. What is your dream job '

2. Find someone you do nor know, and share your responses.

3. Get rogether with another dyad (pa ir), preferably new people. Partner "a" of one dyad introduces partner "b" to the other dyad; then "b" inrroduces "a." The sa me process is followed by the other dyad . The introduction should follow th.i s format:

PART 1 INTRODUCTION

"This is Mary Cullen. Her very worst job was put­ting appliques on bibs at a clothing factory, and she disliked it for the fo ll owing reason. What she would rather do is be a financial analyst for a big corporation. "

4. Each group of four meets with another quartet and is introduced, as before.

5. Your instructor asks for a show of hands on the number of people whose worst jobs fit into the following categories:

a. Factory

b. Restaurant

c. Manual labor

d. Driving or delivery

e. Professional

f. Health care

g. Pflone sales or communicati on

h. Other

C H APTER 1 ORGANIZATIONAL BEHAVIOR AND OPPORTUNITY

6. Your instructor gathers data on worst jobs from each group and asks the groups to answer these questions:

a. What are the common characteristics of the worst jobs in your group?

b. How did your coworkers feel about their jobs'

c. What happens to morale and productivity when a worker hates the job?

d. What was the difference between your own morale and productiviry in your worst job and in a job you really enjoyed?

e. Why do organizations continue (0 allow unpleasant working conditions to exist?

7. Your instructor leads a group discussion on Parts (aJ through (e) of Question 6.

SOURCE: D. Marcie , "My Absolute WorstJob: An Icebreaker," Organizational

Behavior: Experiences and Cases (St. Paul, MN: West, 1989), 5-6. Copyright 1988 Dorothy Marcie. All rights reserved. Reprinted by permission.

31

I ,

BizFiix In Good Company

A corporate takeover brings star advertising executive Dan Foreman (Dennis Quaid) a new boss who is half his age. Carrer Duryea (Topher Grace), Dan's new boss, wants to

prove his worth as the new marketing chief at Sports America, Waterman Publishing's flagship magazine. Carrer applies his un ique approaches while dating Dan's daughter,

Alex (Scarlett Johansson).

Organizational Behavior and Management: Sports America Magazine

This sequence starts with Caner Duryea entering Dan Foreman's office. lr follows Foreman's reaction towatd the end of a speech given by Globecom CEO Teddy K. (Malcolm McDowell ). Ca rrer Duryea enters while saying, "Oh, my God, Dan. Oh, my God." Mark Steckle (Clark Gregg) soon follows. The sequence ends with Carrer asking, "Any ideas?" Dan Forman says, IIOne. n

What to Watch for and Ask Yourse lf

• The fi lm seq uence shows three people interacting in a work environment. \X/hich aspects of organizational behav ior and management discussed earl ier in this c hapter appear in this seq uence?

• The three people in this sequence represent different management levels in th e com­pany. Which levels do you attribute to Carrer Duryea, Dan Foreman, and Mark

Steckle?

• Critique the behavior shown in the sequence. What are the positive and negative aspects of the beha vior shown?

Workplace Video Ev~: Managing in a Global Environment

Fast-growing online retailer Eva has an exciting new problem : It has more international customers than ever before. In 2001. the Seattle-based company began selling brand name sk i-and -skate gear to U.S. consumers, and today Evo delivers products to places as far away as Bahrain, Turkey, Japan, and Ba li.

Selling to global markets is loaded w ith difficulties, and Evo's cusromer service tep­resenratives tell stories about their cha ll enging interactions with internati onal shoppers. For starters, overseas callers are often disappointed to learn thar they can not order items due to interna tional licensing and distribution agreements . In addition, language barriers between Eva's employees and international consumers make some orders impossi ble to

transact . Daily operations have unusual twists as well, especially in the area of supply chain

management. «Manufacturers overseas can impact us," sa id Eva marketer Molly Hawkins. "There was a lock at all the POrtS in Ch ina and we couldn't import any of their products. Therefore, a lor of soft goods like jackets and pants couldn't be sh ipped."

And it's not just foreign POrts that Eva must worry about: globa li zation affects

products, too. In addition to selling skis, snowboards, and related gear, Evo now offets an international travel package for spOrt adventurers. Known as evoTRIP, the travel service provides gu ided ski, snowboarding, and surf expeditions to exotic destinations in South America, Japan, Indo nesia, and Switzerland. "This concept is near and dear to what all of us value," said Bryce Phillips, Evo"'s founder. "It's getting out there, learn ing more about different cu ltures, doing the activities in different parts of the world, and seeing beauti(ul locations you've never seen before."

To offer the richest, most authentic cultural experience, evoTRIP hires local gu ides. Professional ath letes from each country rravel with groups so tha t evoTrippets can experi­ence the cultural nuances from place to place.

Despite his early success marketing within the United States, Bryce Phillips is excited abour expanding his company's global reach. As licensing practices change to reflect the boundary-free world of e-commerce, and as Eva becomes a global brand, ski-and-board enthusiasts all over the world may soon identify themselves as loyal Eva customers.

Q uestio ns

1. What political and economic challenges co uld evoTRlP enco unter when conducting business in ocher countries?

2. How might globalization affecr Eva's orga nizarional context? Explai n.

3. Whar culrural differences should Evo and evoTRIP participants pay attention to when traveling abroad?