organization behavior teacher manual, chapter one

Instructor’s Manual to Accompany

Organizational Behavior 5/eemerging knowledge and practice for the real world

by Steven L. McShane and Mary Ann von Glinow

Chapter 1Introduction to the Field of Organizational Behavior

Prepared by:Steven L. McShane, University of Western Australia

This Instructor’s Manual 1ile is part of the Instructor’s Resource CDROM for Organizational Behavior:Emerging Knowledge and Practice for the Real World, 5th edition10‐digit ISBN: 007336434713‐digit ISBN: 9780073364346

Published by McGraw‐Hill/Irwin, a business unit of The McGraw‐Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2010, 2008, 2005, 2003, 2000 by The McGraw‐Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw‐Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

McGraw-HillIrwin

Introduction to the Field of Organizational Behavior

LEARNING OBJECTIVESAfter reading this chapter, students should be able to:

1. De1ine organizational behavior and organizations, and discuss the importance of this 1ield of inquiry.

2. Diagram an organization from an open systems perspective.3. De1ine intellectual capital and describe the organizational learning perspective of

organizational effectiveness.4. Diagnose the extent to which an organization or one of its work units applies high‐

performance work practices.5. Explain how the stakeholder perspective emphasizes the importance of values, ethics, and

corporate social responsibility.6. Summarize the 1ive types of individual behavior in organizations.7. Debate the organizational opportunities and challenges of globalization, workforce

diversity, and virtual work.8. Discuss how employment relationships are changing, and explain why these changes are

occurring. 9. Discuss the anchors on which organizational behavior knowledge is based.

CHAPTER GLOSSARY

1

absorptive capacity – the ability to recognize the value of new information, assimilate it, and use it for value‐added activities

corporate social responsibility (CSR) ‐‐ organizational activities intended to bene1it society and the environment beyond the 1irm’s immediate 1inancial interests or legal obligations

counterproductive work behaviors, (CWs) ‐‐ voluntary behaviors that have the potential to directly or indirectly harm the organization.

deep‐level diversity ‐‐ differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes

ethics – the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad

evidence‐based management ‐‐ making decisions and taking actions based on research evidence

globalization ‐‐ economic, social, and cultural connectivity with people in other parts of the world

high performance work practices (HPWP) – a perspective that effective organizations incorporate several workplace practices that leverage the potential of human capital

Chapter 1: Introduction to the Field of Organizational Behavior

Page 1-1 © 2010 The McGraw-Hill Companies, Inc. All rights reserved

human capital – the stock of knowledge, skills, and abilities among employees that provide economic value to the organization

intellectual capital ‐‐ company’s stock of knowledge, including human capital, structural capital and relationship capital.

lean management – a cluster of practices to improve organizational ef1iciency by continuously reducing waste, unevenness, and overburden in the production process

open systems – a perspective that organizations depend on the external environment for resources, affect that environment through their output, and consist of internal subsystems that transform inputs to outputs

organizational behavior (OB) ‐‐ the study of what people think, feel, and do in and around organizations

organizational citizenship behaviors (OCBs) ‐‐ various forms of cooperation and helpfulness to others that support the organization’s social and psychological context.

organizational effectiveness – a broad concept represented by several perspectives, including the organization’s 1it with the external environment, internal subsystems con1iguration for high‐performance, emphasis on organizational learning, and ability to satisfy the needs of key stakeholders

organizational ef1iciency ‐‐ the amount of outputs relative to inputs in the organization’s transformation process.

organizational learning – a perspective that organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge

organizational memory – the storage and preservation of intellectual capital

organizations ‐‐ groups of people who work interdependently toward some purpose

stakeholders ‐‐ individuals, organizations, or other entities who affect, or are affected by, the organization’s objectives and actions

surface‐level diversity ‐‐ the observable demographic or physiological differences in people, such as their race, ethnicity, gender, age, and physical disabilities

values – relatively stable, evaluative beliefs that guide a person’s preferences for outcomes or courses of action in a variety of situations

virtual work ‐‐ work performed away from the traditional physical workplace using information technology

work/life balance – the degree to which a person minimizes con1lict between work and nonwork demands

CHAPTER SYNOPSISOrganizational behavior is the study of what people think, feel, and do in and around organizations. Organizations are groups of people who work interdependently toward some purpose. Although OB doesn’t have a speci1ic career path, it offers knowledge and skills that are vitally important to anyone who works in organizations. OB knowledge also has a signi1icant effect on the success of organizations. This book takes the view that OB is for everyone, not just managers.

Organizational effectiveness is a multi‐dimensional concept represented by four perspectives: open systems, organizational learning, high‐performance work practices, and stakeholders. The open systems perspective says that organizations need to adapt to their external environment and con1igure their internal subsystems to maximize ef1iciency and responsiveness. For the most part, the other perspectives of organizational effectiveness are detailed extensions of the open systems model. The organizational learning perspective states that organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge. Intellectual capital is knowledge that resides in an organization, including its human capital, structural capital, and relationship capital. Effective organizations also “unlearn, meaning that they remove knowledge that no longer adds value.

The high performance work practices (HPWP) perspective states that effective organizations leverage the human capital potential of their employees. Speci1ic HPWPs have been identi1ied, and experts in this 1ield suggest that they



need to be bundled together for maximum bene1it. The stakeholder perspective states that effective organizations take into account how their actions affect others, which requires them to understand, manage, and satisfy the interests of their stakeholders. This perspective incorporates values, ethics, and corporate social responsibility into the organizational effectiveness equation.

The 1ive main types of workplace behavior are task performance, organizational citizenship, counterproductive work behaviors, joining and staying with the organization, and work attendance. These represent the individual‐level dependent variables found in most OB research.

Three environmental shifts that are challenging organizations include globalization, increasing workforce diversity, and emerging employment relationships. Globalization refers to economic, social, and cultural connectivity with people in other parts of the world. Workforce diversity includes both surface‐level and deep‐level diversity. Two emerging employment relationship changes are demands for work/life balance and virtual work.

Several conceptual anchors represent the principles on which OB knowledge is developed and re1ined. These anchors include beliefs that OB knowledge should be multidisciplinary and based on systematic research, that organizational events usually have contingencies, and that organizational behavior can be viewed from three levels of analysis (individual, team, and organization).

POWERPOINT® SLIDES

Organizational Behavior Fifth Edition includes a complete set of Microsoft PowerPoint® 1iles for each chapter. (Please contact your McGraw‐Hill/Irwin representative to 1ind out how instructors can receive these 1iles.) In the lecture outline that follows, a thumbnail illustration of each PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you don’t want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.)

LECTURE OUTLINE(WITH POWERPOINT® SLIDE THUMBNAILS)

Introduction to the Field of OBSlide 1




Pixar Animation StudiosSlide 2

Opening Vignette

OB practices have helped Pixar Animation Studios to become the world’s most successful animation studio

• Employee competencies

• People-centered• Teamwork and org learning

• Constructive conflict

Organizational Behavior and OrganizationsSlide 3

Organizational Behavior and Organizations

Organizational behavior (OB) -- study of what people think, feel, and do in and around organizations.

Organizations -- groups of people who work interdependently toward some purpose

• Structured patterns of interaction -- expect each other to complete certain tasks in a coordinated way

• Organizations have purpose -- e.g. producing oil from oil sands or selling books on the Internet.

OB FoundationsSlide 4

OB Foundations

Distinct field around the 1940s

OB concepts discussed for more than 2,000 years

Some pivotal scholars before OB formed include:• Max Weber

• Frederick Winslow Taylor• Elton Mayo

• Chester Barnard (shown)• Mary Parker Follett



Why Study Organizational Behavior?Slide 5

Why Study OB?

1. Satisfy the need to understand and predict ‣ Helps us figure out why organizational events happen

2. Helps us to test personal theories ‣ Helps to question and rebuild personal theories

3. Influence behavior‣ Improves our ability to work with people and influence organizational

events

Organizational behavior is for everyone• Application of OB knowledge benefits everyone no matter what

profession they are in, or what position they hold in an organization.

OB and the bottom line•Effective application of OB practices benefits employees and

contributes to the organization’s bottom line.‣ Pixar Animation Studio has benefited from several OB concepts and

practices.

Old Perspective: Achieving GoalsSlide 6

Four Perspectives of Organizational Effectiveness

Old definition of organizational effectiveness- goal oriented• Effective firms achieve their stated objectives

• No longer accepted as a perspective of org effectiveness‣ Companies could set easy goals

‣ Some goals too abstract to know if achieved

‣ Company might achieve goals but go out of business by achieving wrong goals

Four Perspectives of Org. EffectivenessSlide 7

New Definition of Organizational Effectiveness

Broad concept represented by all four perspectives• Open systems: they have a good fit with their external

environment• High-performance work practices: their internal subsystems are

configured for a high-performance workplace • Organizational learning: they are learning organizations

• Stakeholder: they satisfy the needs of key stakeholders

NOTE: Need to consider all four perspectives when assessing a company’s effectiveness



Open systems PerspectiveSlide 8

Open Systems Perspective

Organizations are complex systems that “live” within (and depend upon) the external environment

Effective organizations• Maintain a close “fit” with those changing conditions

• Transform inputs to outputs efficiently and flexibly

Open systems perspective is the foundation on which the other three effectiveness perspective are built

Open Systems PerspectiveSlide 9

Open Systems Perspective

Open systems -- organizations consist of interdependent parts that work together to continually monitor and transact with the external environment

• Receives inputs and transforms them through technology into outputs that are returned to the external environment

• Some output valued (services), but other output have adverse effects (e.g., layoffs, pollution)

External environment -- natural and social conditions outside the organization

• stakeholders – anyone with a vested interest in the organization

• environment is increasingly turbulent – rapid change • Organizations need to adapt to external environment

Need to coordinate subsystems and be aware of unintended consequences

Subsystems processes, task activities, social dynamics within the system

Transformation process -- subsystems transform inputs into various outputs

• Effective transformations have:

1. organizational efficiency (productivity) -- the ratio of inputs to outcomes -

2. adaptability -- responsiveness to environmental change

Feedback -- information from environment about value of outputs/availability of inputs



Organizational Learning PerspectiveSlide 10

Organizational Learning Perspective

An organization’s capacity to acquire, share, use, and store valuable knowledge

Need to consider both stock and flow of knowledge• Stock: intellectual capital

• Flow: org learning processes of acquisition, sharing, and use

Intellectual CapitalSlide 11

Intellectual Capital

Human capital• knowledge that employees carry around in their heads

Structural capital• knowledge captured and retained in an organization’s systems

and structures

Relationship capital• value derived from an organization’s relationships with customers,

suppliers, and others who provide added mutual value for the organization

Organizational Learning ProcessesSlide 12

Organizational Learning Processes

Knowledge acquisition•bringing knowledge into the organization

‣ e.g. hiring people, acquiring companies, insight (experimenting)

Knowledge sharing•Distributing knowledge throughout the organization

‣ e.g. intranets, training, happenstance meetings

Knowledge use•Applying knowledge to accomplish goals•Requires autonomy and culture of experimentation

Organizational unlearning•removes knowledge that no longer adds value

‣ e.g. replacing dysfunctional routines, changing attitudes



Organizational MemorySlide 13

Organizational Memory

The storage and preservation of intellectual capital

Retain intellectual capital by:1. Keeping knowledgeable employees

2. Transferring knowledge to others

3. Transferring human capital to structural capital

Successful companies also unlearn

High Performance Work Practices (HPWPs)Slide 14

High Performance Work Practices (HPWPs)

HPWPs are internal systems and structures that are associated with successful companies•Employees important for competitive advantage (human

capital)‣ valuable

‣ rare

‣ difficult to imitate

‣ nonsubstitutable

•Value of employees increased through specific practices. •Maximum benefit when org practices are bundled

High Performance Work Practices Slide 15

High Performance Work Practices

No consensus, but HPWPs include:1. Employee involvement and job autonomy (and their combination as

self-directed teams).

2. Employee competence (training, selection, etc.).

3. Performance-based rewards

HPWP Limitations• Not theory-based

• may satisfy shareholder and customer needs at the expense of employee well-being



Stakeholder PerspectiveSlide 16

Stakeholder Perspective

Stakeholders: any entity who affects or is affected by the firm’s objectives and actions

Personalizes the open systems perspective• Identifies social entities in the environment

• Stakeholder relations are dynamic

Problem:• Stakeholders have conflicting interests

• Firms have limited resources

Stakeholder PerspectiveSlide 17

Stakeholder Perspective

Lockheed Martin is rated by engineering students as an “ideal” employer

• Pays attention to its many stakeholders

• Relies on values and ethics to guide decisions• Strong emphasis on corporate social responsibility (e.g. photo

shows clean-up after hurricane Katrina)

Stakeholders: Values and EthicsSlide 18

Stakeholders: Values and Ethics

We rely on values and ethics to prioritize stakeholder interests

Values• Stable, evaluative beliefs, guide preferences for outcomes or

courses of action in various situations• Shared values -- values held by a team or firm of employees

Ethics• Moral principles/values, determine whether actions are right/

wrong and outcomes are good or bad



Stakeholders and CSRSlide 19

Stakeholders and CSR

Stakeholder perspective includes corporate social responsibility (CSR)

• Benefit society and environment beyond the firm’s immediate financial interests or legal obligations

• Organization’s contract with society

Triple bottom line•Part of corporate social responsibility•Supporting economic, social, and environmental spheres of

sustainability

Various stakeholders (job applicants, current employees, and suppliers) associate with firms based on their CSR

Many firms talk about their CSR, but few practice CSR or have their actions evaluated

Types of Individual BehaviorSlide 20

Types of Individual Behavior

Task performance• goal-directed behaviors under the individual’s control that support

organizational objectives. • transform raw materials into goods and services or support and

maintain the technical activities

Organizational citizenship behaviors (OCBs)• Contextual performance -- co-operation and helpfulness to others

that support the organization’s social and psychological context• e.g. assisting or accommodating co-workers, supporting company

image, attending voluntary events



Types of Individual BehaviorSlide 21

Types of Individual Behavior (con’t)

Counterproductive work behaviors (CWBs).• voluntary behaviors that have the potential to directly or indirectly

harm the organization. • Five categories of CWBs: abuse of others, threats, work

avoidance, work sabotage, overt acts

Joining and staying with the organization• Worries about skills shortages

• Cost of high turnover, including loss of intellectual capital• Turnover partly caused by low job satisfaction

• Shock events -- emotionally-charged events that trigger search for a new job, or quitting directly

Maintaining work attendance• Situational Factors (bad weather), • Motivational Factors (dislike job, sick leave pay)

• Absence culture & norms

Contemporary Challenges for Organizations: GlobalizationSlide 22

Contemporary Challenges for Organizations

1. Globalization

Economic, social, and cultural connectivity with people in other parts of the world

• Has activities in other parts of the world, participates in other markets, competes against organizations located elsewhere

Effects of Globalization• Requires new organizational structures and different forms of

communication• Adds more diversity to the workforce.

• Increases competitive pressures, mergers, work intensification and demands for work flexibility from employees.



Increasing Workforce DiversitySlide 23

2. Increasing Workforce Diversity

Surface-level diversity• Observable demographic or physiological differences in people

(e.g. race, ethnicity, gender, age, physical capabilities)• Increasing surface-level diversity in Canada and other countries

Deep-level diversity• Differences in the psychological characteristics of employees

(e.g. personalities, beliefs, values, and attitudes)

• Example: Differences across age cohorts (e.g. Gen-X, Gen-Y)

Consequences of diversity• Leveraging the diversity advantage

• Challenges of diversity (e.g. team development, conflict)• Ethical imperative of diversity

Employment RelationshipsSlide 24

3. Employment Relationships

Work/life balance • Degree to which a person minimizes conflict between work and

nonwork demands number one indicator of career success

Virtual Work• Use of information technology to perform one’s job away from the

traditional physical workplace. • Telecommuting (teleworking) –alternative work arrangement ‣ working from home, usually with a computer connection to the office

‣ need to replace face time with performance output

‣ changes employment relationship expectations



Organizational Behavior AnchorsSlide 25

Organizational Behavior Anchors

Multidisciplinary anchor• Many OB concepts adopted from other disciplines‣ e.g. psychology concepts in motivation, perceptions

‣ emerging fields: communication, information systems, marketing, women's studies

• OB develops its own theories, but also scans other fields

Systematic research anchor• OB researchers rely on scientific method‣ a set of principles and procedures that help researchers systematically

understand previously unexplained events and conditions.

• Should apply evidence-based management -- making decisions and taking actions based on research evidence

• Why managers don’t apply evidence-based management1. Bombarded with theories and models from many sources2. Challenge translating general OB theories to specific situations3. People swayed by heavy marketing of some theories/models4. Perceptual biases -- we ignore evidence contrary to our current

theories

Organizational Behavior AnchorsSlide 26

Organizational Behavior Anchors (con’t)

Contingency anchor• A particular action may have different consequences in different

situations• Need to diagnose the situation and select best strategy under

those conditions• OB searches for simpler theories, but usually need contingencies

Multiple levels of analysis anchor• OB issues can be studied from individual, team, and/or

organizational level

• OB topics usually relevant at all three levels of analysis

Introduction to the Field of OBSlide 27




SOLUTIONS TO CRITICAL THINKING QUESTIONS

1. A friend suggests that organizational behavior courses are useful only to people who will enter management careers. Discuss the accuracy of your friend’s statement.

This chapter begins by saying that this book is about people working in organizations. Undoubtedly, many individuals will specialize in a distinct 1ield of study and enter careers other than management. However, they too will be members in work organizations. As such, the three main reasons for studying organizational behavior (understanding, predicting, in1luencing) will bene1it them as well. You may think of this technical knowledge/skills as providing “what” you need to know and be able to do to be successful in your chosen 1ield. On the other hand, OB knowledge bene1its everyone by addressing the people issues needed to apply technical knowledge and skills. Knowledge of OB provides valuable knowledge of “how” to address these people issues when applying accounting, marketing, engineering and other ideas in organizational settings. Ultimately, an individual’s career success is largely determined by his or her ability to understand and apply concepts in motivation, communication, team dynamics and other OB topics.

2. A number of years ago, employees in a city water distribution department were put into teams and encouraged to ?ind ways to improve ef?iciency. The teams boldly crossed departmental boundaries and areas of management discretion in search of problems. Employees working in other parts of the city began to complain about these intrusions. Moreover, when some team ideas were implemented, the city managers discovered that a dollar saved in the water distribution unit may have cost the organization two dollars in higher costs elsewhere. Use the open systems perspective to explain what happened here.

[NOTE: This critical thinking question is based on a real incident. For details, see: B. Sheehy, “A Near‐Run Thing: An Inside Look at a Public‐Sector Productivity Program,” National Productivity Review, Spring 1985, pp. 139‐145.]

This incident illustrates that organizations are open systems with many interdependent parts that function as a whole to achieve a set of goals. This city has many subunits with close links to each other. When the water distribution unit employees tried to improve ef1iciency, the interdependence of these subsystems became apparent. Some of the actions that improved productivity in one area sent ripples through other parts of the organization. In other words, other departments and subunits had to adapt to changes implemented in the other area. Indeed, savings in one area sometimes resulted in increased costs in another area.

3. After hearing a seminar on organizational learning, a mining company executive argues that this perspective ignores the fact that mining companies could not rely on knowledge alone to stay in business. They also need physical capital (such as digging and ore processing equipment) and land (where the minerals are located). In fact, these two may be more important than what employees carry around in their heads. Evaluate the mining executive’s comments.

Although less common, many executives still view land and capital as a company’s most valuable assets. They give lip service to the idea that “People are our most value assets” but still don’t understand that land and capital have little value without people. For instance, this mining company would not have found land with ore deposits unless it had the knowledge to 1ind those minerals. It could not operate the equipment to extract and re1ine the ore unless it had enough knowledge.

The executive’s comment that companies cannot remain in business with only knowledge is incorrect. On the contrary, some of the wealthiest organizations (including many software companies and consulting 1irms) have few physical assets. Banks are selling off their corporate headquarters because their competitive advantage ‐‐ their source of wealth ‐‐ is found in knowledge. Mining companies are also outsourcing several aspects of physical assets. Their ships and rail cars are often owned by others. The digging equipment is leased or owned by companies that



specialize in drilling. The major oil companies today are mainly in the knowledge business – prospecting for minerals or marketing what others have found and extracted.

This question also suggests a subtle misunderstanding by the executive about knowledge management. Although much corporate knowledge resides in the brains of its employees (called human capital), it also resides in the organization’s systems and structures (known as structural capital).

4. A common refrain among executives is “People are our most important asset.” Relate this statement to any two of the four perspectives of organizational effectiveness presented ion this chapter. Does this statement apply better to some perspectives than to others? Why or why not?

This is an open discussion question because the statement can relate to all four perspectives of organizational effectiveness.

Open systems ‐‐ probably the least focus on employees of the four perspectives. People represent the internal subsystems of organizations, so are vital in that respect. Some employees are also “boundary spanners” in that they link the organization to the external environment.

Organizational learning ‐‐ these perspective views employees as reasonably important because they hold a large portion of intellectual capital (human capital and possibly some forms of relationship capital). People bring knowledge into the organization and are largely responsible for sharing that knowledge. Knowledge use is also ultimately a human endeavor.

High performance work practices ‐‐ arguably the perspective that views people (employees) as the most critical resource. HPWPs embrace the human capital model; they consider employees competitive advantage. HPWPs are practices to leverage or unleash the competitive advantage potential of employees.

Stakeholder ‐‐ Employees are one type of stakeholder, so the statement applies to this perspective. It recognizes that employees have a vested interest in the organization and its actions.

5. Corporate social responsibility is one of the hottest issues in corporate boardrooms these days, partly because it is becoming increasingly important to employees and other stakeholders. In your opinion, why have stakeholders given CSR more attention recently? Does abiding by CSR standards potentially cause companies to have con?licting objectives with some stakeholders in some situations?

These questions are open to speculation and debate. Some might argue that increasing af1luence allows society to raise the bar on companies by demanding more than a living wage. Others might point out that environmental problems (e.g. global warming) may have raised awareness of corporate roles in the triple bottom line. Still others might suggest that globalization has brought developed world companies closer to people in poverty and countries in need of better health standards.

Students may also point to corporate scandals such as Enron and WorldCom as being responsible for bringing the issue to the forefront of public discourse. Other reasons include the preference of stakeholders wanting to be associated with organizations that are deemed socially responsible. This preference has not gone unnoticed in corporate boardrooms. A growing number of companies are equating social responsibility with increased pro1itability. As a result, they are changing the way they do business. They reason that CSR can be leveraged as a competitive advantage in the market.

Regarding the con1licting objectives, many students would agree. After all, the textbook states that companies can’t satisfy all stakeholders because there are limited resources and stakeholders have con1licting goals. But some corporate leaders have suggested that there is less con1lict then assumed. They particularly believe that satisfying communities and the environment ultimately satis1ies the needs of shareholders and employees.



6. Look through the list of chapters in this textbook and discuss how globalization could in?luence each organizational behavior topic.

This is an open‐ended question which could be used as an exercise activity with subsequent class discussion. The main objective is to help students understand how globalization has profound implications for behavior in organizations.

Here are some of the topics linked to globalization. Students will certainly identify others:

‣ Teams‣ Employee motivation‣ Perception‣ Values‣ Communication‣ Stress‣ Communicating in organizational settings‣ Interpersonal con1lict‣ Leadership‣ Organizational change

7. “Organizational theories should follow the contingency approach.” Comment on the accuracy of this statement.

OB theories must be simple, yet accurate. While simplicity calls for universal theories, accuracy usually requires the contingency approach because most human behavior is too complex to understand suf1iciently through universal (i.e., one best way) theories. Contingency theories are more re1ined because they recognize that environmental and personal characteristics moderate most cause‐effect relationships. In other words, while it would be preferable to use universal theories for the sake of simplicity, we often must rely on contingency theories to suf1iciently understand and predict organizational behavior.

8. What does “evidencebased management” mean? Describe situations where you have heard about companies practicing evidencebased management, as well as situations where companies have relied on fads that lacked suf?icient evidence of their worth.

There are two parts to this question. The 1irst requires students to de1ine what “evidence‐based management” is. The second part asks students to provide an example of fads that lacked evidence, but which companies relied on in the past. Answers to the second part will vary based on individual student experiences.

A sample answer to the 1irst part of the question “evidence‐based management” may include the following:

Evidence –based management is the idea that management decisions and initiatives should be based on the systematic research anchor to ensure effective implantation. In other words, we should manage the workplace based on sound evidence gathered as a result of systematic research. This involves using knowledge 1lowing from the process of: forming research questions, systematically collecting data, and testing hypotheses against those data. Applying evidence‐based management would prevent corporate leaders from embracing fads and relying on their pet beliefs before 1inding out if they actually work.



CASE STUDY 1-1: JERSEY DAIRIES, INC.

Case Synopsis

Jersey Dairies, Inc., introduced quality management (QM) to compete more effectively. A QM consultant was hired into the new position of vice‐president of quality,. Employees received several days of QM training (e.g.. quality measurement), but had dif1iculty learning the material. Supervisors were reluctant to form continuous improvement (CI) teams, claiming the teams were “asking too many questions.” Employees thought QM was a fancy way for management to speed‐up the work. Jersey’s president told employees that QM would beat the competition, but also warned that employees must support the QM program to save their jobs. Jersey’s purchasing manager was replaced for being too passive and collegial with suppliers. The new purchasing manager told suppliers to begin a QM program and that Jersey will negotiate lower prices in the next contracts.

After twenty months of QM, Jersey’s president left and its vice‐president of 1inance was promoted. The Board wanted the new president to strengthen the bottom line. Jersey had nearly tripled its training budget with little bene1its from the CI teams. A considerable sum was spent on customer surveys and focus groups. Employee turnover was higher, mainly due to dissatisfaction with the QM program. Jersey’s nonunion production work force had contacted a labour union. A group of suppliers told the new president that their long‐term relationships with Jersey were being damaged. Jersey’s new president ended several QM initiatives and announced that the vice‐president of Quality position would no longer exist. Instead, the company would rely more one marketing and technology to improve its competitiveness.

Suggested Answers to Case Questions

1. What perspective of organizational effectiveness did Tina Stavros and James Alder attempt to apply in this case? Describe how speci?ic elements of that perspective related to their interventions.

Tina Stavros and James Alder attempted to apply the open systems perspective of organizational effectiveness. More speci1ically, they attempted to improve ef1iciency of the transformational process of inputs to outputs. This was most apparent in the application of continuous improvement teams to reduce waste in the production process. In addition, putting pressure on suppliers to cut costs re1lects the open systems view that inputs are an important in1luence of the organization’s outputs.

Some students might suggest that Jersey Dairies applied the high performance work practices (HPWP) approach to organizational effectiveness. the company formed teams and trained employees, which are two common features of HPWPs. This approach might be correctly identi1ied, but note that the employees were not really given much autonomy in the production process, which is usually considered a critical feature of HPWPs.

This case illustrates the potential problem that QM costs might exceed its bene1its. As with most QM programs, Jersey Dairies had dramatically higher payroll costs in terms of training and time off with pay to attend training. The company also spent a considerable sum on customer surveys and focus groups. Although some of these expenditures were clearly bene1icial, their bene1its do not seem to have offset the costs. This is certainly true for the CI teams which did not come up with enough productivity improvement ideas to offset the training and other costs.

2. Explain what went wrong in this case using one or more of the other perspectives of organizational effectiveness.

Many of the problems facing Jersey Dairies, Inc. are connected to the fact that QM tends to overlook the stakeholder perspective of organizational effectiveness. Employees had higher turnover and were about to unionize because the company paid less attention to their interests. Some suppliers threatened to break their relationship with Jersey for the same reasons.



CASE STUDY 1-2: WORKING FROM HOME -- IT'S IN THE DETAILS

Case SynopsisRoads leading to Microsoft’s headquarters in Redmond, Wash., simply weren't designed to handle the 35,000 commuters who report for work there each day. The daily gridlock has become so acute that it nearly caused Washington State’s Governor to miss his own speech at the software maker on a recent morning. Microsoft has 1igured out how to tackle the commuter crisis: it has introduced a program to get more staff telecommuting, either working from home or other off‐site locales.

About 14% of the U.S. workforce gets its job done at a home of1ice more than two days per week. That's up from 11% in 2004, and will be around 17% in another year or two. But the growth of telecommuting has also awakened many companies to the reality that not everyone is ready for virtual work. Companies also need to make adjustments to the way they operate in order for telecommuting to have lasting bene1its.

This BusinessWeek case study discusses the issues that companies are facing with the rising tide of telecommuting, as well as the strategies these organizations are applying to overcome these obstacles. Read the full‐text of this BusinessWeek article and prepare for the discussion questions below.

Suggested Answers to Case Questions

1. Identify and discuss the main problems or concerns mentioned in this case study regarding telecommuting. In your opinion, do most of these problems originate with the company or the employee?This article mentions several problems or concerns with telecommuting. They include:

(a) Some employees fear they will step off the corporate ladder, that if they're out of sight, they will be out of mind

(b) Some people need a busy environment to stay productive.

(c) Some managers are reluctant to scatter direct reports because keeping tabs on a virtual workforce can be harder than managing those close at hand.

(d) Many managers simply don't know how to manage a virtual workforce.

(e) Some virtual workers can feel lonely, isolated, or deprived of vital training and mentoring.

(f) Telecommuting is subject to communication breakdowns, which can impede innovation, trust, job satisfaction, and performance.

2. Describe the characteristics of people who adjust more easily to telecommuting. How can companies identify these employees or develop others to be better prepared for telecommuting? This article doesn’t say much about the characteristics of employees who are best suited to telecommuting. It mentions that telecommuting is not appropriate for new hires, because they require more face‐to‐face coaching from peers and managers. However, students can identify several personal characteristics that relate to effective telecommuting. Some of these features are measured in the self‐assessment for this chapter. they include:

Company alignment ‐‐ Effective telecommuters follow company procedures and have values congruent with company values.

Social needs ‐‐ Effective telecommuters do not rely on co‐workers to satisfy their social needs

Independent initiative ‐‐ One of the most important characteristics of successful teleworkers is that they are able to set their own work goals and maintain a productive work schedule without direct supervision



TEAM EXERCISE 1-3: HUMAN CHECKERS

PurposeThis exercise is designed to help students understand the importance and application of organizational behavior concepts.

MaterialsNone, but the instructor has more information about the team’s task. [Note: This exercise sometimes works better with two lines of tape on the 1loor to keep student teams in a straight line.]

Task Description (read to students)Each team will develop and execute a strategy in which the four (4) team members on either side of an open space will move to the other side in the same 1inal order (see exhibit on this page). [NOTE: The textbook might say form teams of “six” people; the activity can be done well with six ‐‐ three people in each direction ‐‐ but is more typically completed with four in each direction.] Team members A, B, C, and D begin on the left side and must move to the right side in the same order. Team members W, X, Y, and Z will begin on the right side of the open space and must move to the left side in the same order (see Exhibit below).

SpacesSpacesSpacesSpacesSpacesSpacesSpacesSpacesSpacesSpaces

1 2 3 4 5 6 7 8 9

Start A B C D W X Y Z

End W X Y Z A B C D

Instructions (provided in textbook)

Step 1: Form teams with eight students. (NOTE: Larger or smaller teams may be formed, but all teams must be the same size and have the same number of people on each side.) If possible, each team should have a private location where team members can plan and practice the required task without being observed or heard by other teams.

Step 2: All teams will receive special instructions in class about the team’s assigned task. All teams have the same task and will have the same amount of time to plan and practice the task. At the end of this planning and practice, each team will be timed while completing the task in class. The team that completes the task in the least time wins.

Step 3: No special materials are required or allowed for this exercise. Although the task is not described here, students should learn the following rules for planning and implementing the task:

Rule #1: You cannot use any written form of communication or any props to assist in the planning or implementation of this task.

Rule #2: You may speak to other students in your team at any time during the planning and implementation of this task.

Rule #3: When performing the task, you must move only in the direction of your assigned destination. In other words, you can only move forward, not backwards.



Rule #4: When performing the task, you can move forward to the next space, but only if it is vacant (see Exhibit 1 in textbook).

Rule #5: When performing the task, you can move forward two spaces, if that space is vacant. In other words, you can move around a student who is one space in front of you to the next space if that space is vacant (see Exhibit 2 in textbook).

Step 4: When all teams have completed their task, the class will discuss the implications of this exercise for organizational behavior.

Comments for Instructors

This exercise is also called “Traf1ic Jam”. Halfway through the planning stage, it may be useful to advise students that the task can be completed in less than 20 seconds. This makes some teams rethink their strategy. The exercise offers plenty of fun and is an excellent icebreaker for the beginning of the course.

However, be prepared to use up an entire 45 minute class for this exercise with some time for debrie1ing. It usually takes teams up to 30 minutes to 1igure out the solution and to improve their ef1iciency in the task. Then, time is required for each team to demonstrate and compete.

Discussion Questions

1. Identify organizational behavior concepts that the team applied to complete this task.

Human checkers is an exciting exercise that applies many organizational behavior topics. It relates to teams because the planning and practice stage involves team development and performance. Leadership may be an issue here because some people help the team to work toward its goals. Creativity and decision making are relevant because the team must 1igure out how to get everyone to the opposite side within the constraints indicated. Some students might note that they are not as good at either 1iguring out the method or synchronizing as well as other people in the team. This relates to the elements of individual behavior. Con1lict may become an issue if some team members don’t work as effectively as others.

2. What personal theories of people and work teams were applied to complete this task?

This is a subjective question in which students reveal their personal theories. It is useful to identify the types of theories that emerge, that is, which topics (leadership, individual performance, etc.) a mentioned most often.

3. What organizational behavior problems occurred and what actions were (or should have been) taken to solve them?

Several OB problems potentially emerge. Team dynamics are most often mentioned. Con1lict sometimes occurs. Leadership may be an issue where one person dominates the process too much.



Human Checkers SolutionThere are likely several solutions to this exercise, but the solution below is the most common. Keep in mind that although the solution is sequential, students speed up this process by completing two or more of these steps at the same time. For example, moves M4, M5, and M6 can be done at the same time ‐‐ B, C, and D move in the same direction when they move out of their previous space

Move 1 2 3 4 5 6 7 8 9 Instruction

Start A B C D W X Y Z

M1A B C D W X Y Z

D 4 moves to 5

M2A B C W D X Y Z

W 6 moves to 4

M3A B C W D X Y Z

X 7 moves to 6

M4A B C W X D Y Z

D 5 moves to 7

M5A B W C X D Y Z

C 3 moves to 5

M6A B W C X D Y Z

B 2 moves to 3

M7A W B C X D Y Z

W 4 moves to 2

M8A W B X C D Y Z

X 6 moves to 4

M9A W B X C Y D Z

Y 8 moves to 6

M10A W B X C Y D Z

Z 9 moves to 8

M11A W B X C Y Z D

D 7 moves to 9

M12A W B X Y C Z D

C 5 moves to 7

M13A W X B Y C Z D

B3 moves to 5

M14 W A X B Y C Z DA 1 moves to 3



Move 1 2 3 4 5 6 7 8 9 Instruction

M15 W A X B Y C Z DW 2 moves to 1

M16 W X A B Y C Z DX 4 moves to 2

M17 W X A Y B C Z DY 6 moves to 4

M18 W X A Y B Z C DZ 8 moves to 6

M19 W X A Y B Z C DC 7 moves to 8

M20 W X A Y Z B C DB 5 moves to 7

M21 W X Y A Z B C DA 3 moves to 5

M22 W X Y A Z B C DY 4 moves to 3

M23 W X Y Z A B C DZ 6 moves to 4

M24 W X Y Z A B C DA 5 moves to 6



WEB EXERCISE 1-4: DIAGNOSING ORGANIZATIONAL STAKEHOLDERS

Purpose

This exercise is designed to help you understand how stakeholders in1luence organizations as part of the open systems anchor.

Materials

Students need to select a company and, prior to class, retrieve and analyze publicly available information over the past year or two about that company. This may include annual reports, which are usually found on the web sites of publicly‐traded companies. Where possible, students should also scan full‐text newspaper and magazine databases for articles published over the previous year about the company.

Instructions

The instructor may have students work alone or in groups for this activity. Students will select a company and will investigate the relevance and in1luence of various stakeholder groups on the organization. Stakeholders will be identi1ied from annual reports, newspaper articles, web site statements, and other available sources. Stakeholders should be ranked ordered in terms of their perceived importance to the organization.

Students should be prepared to present or discuss their organization’s rank ordering of stakeholders, including evidence for this rank ordering.

Comments for Instructors

In this era of web savvy students, this activity 1its nicely into student preferences. It allows students to collect information in ways that they have become familiar, yet requires them to engage in active learning by searching for information and critical thinking by evaluating the information they 1ind.

Most instructors will use this activity as a take‐home exercise or assignment. However, for those with in‐class computer labs (or wireless internet and student laptops), this can be a fun challenge in a one‐hour exercise. As long as students understand the concept of stakeholders and perhaps the instructor has con1irmed the availability of annual reports and other valuable information for several companies, the in‐class version of this activity can prove to be an exciting challenge for students.

There are several places and ways for students to collect stakeholder information for a speci1ic company. Most of the information can be found on the company’s web site, but Google and other search engines might assist by identifying relevant articles in newspapers and magazines. In schools where students have access to several full‐text databases, the instructor may need to specify whether students should use these sources.

Along with searching and identifying relevant information about stakeholders, this assignment requires students to rank order the importance of these stakeholders. Instructors should expect students to justify their rank ordering, thereby providing a higher‐order level of learning in the process.



SELF-ASSESSMENT 1-5: IT ALL MAKES SENSE?

PurposeThis exercise is designed to help students understand how organizational behavior knowledge can help you to understand life in organizations.

InstructionsRead each of the statements below and circle whether each statement is true or false, in your opinion. The class will consider the answers to each question and discuss the implications for studying organizational behavior. After reviewing these statements, the instructor will provide information about the most appropriate answer. (Note: This activity may be done as a self‐assessment or as a team activity.)

Comments for InstructorsThis exercise addresses the point that common sense isn’t always correct. Of course, some students will be counter‐intuitive in anticipation that these are “trick” questions. We have included some true statements to complicate the exercise. By reviewing each statement, you can help students to see that organizational behavior systematically studies these issues and helps us to correct or clarify popular misperceptions.

Here are the eleven statements with their correct answers and references to their discussion in the textbook.

1. A happy worker is a productive worker.

TRUE. To be more accurate, the answer is “true, to some extent”. This is one of those “truths” that students will probably answer correctly and many OB instructors will answer incorrectly because they rely on old organizational behavior research. The latest research indicates that job satisfaction has a moderately strong association with job performance (a correlation of around .30). For details, see Chapter 4 on workplace emotions and attitudes.

2. Decision makers tend to continue supporting a course of action even though information suggests that the decision is ineffective.

TRUE. This statement represents the escalation of commitment phenomenon, which is described in Chapter 7. There are several reasons why people continue to support a bad decision. These include: (a) self‐justi1ication ‐‐ people want to present themselves in a positive light; (b) prospect theory effect ‐‐ decision makers dislike losing more than they enjoy gaining the same amount; (c) perceptual blinders ‐‐ decision makers do not see the problems soon enough; and (d) closing costs ‐‐ decision makers will persist because the costs of ending the project are high or unknown.

3. Organizations are more effective when they prevent con?lict among employees.

FALSE. Actually, the correct answer is in a state of 1lux. The dominant OB research indicates that task‐oriented is often bene1icial (such as in decision making) whereas relational con1lict has negative consequences. But some emerging research concludes that even task‐oriented con1lict can be a problem. We also discuss both the bene1its of and problems with con1lict in Chapter 11.

4. It is better to negotiate alone than as a team.

FALSE. Although not explicitly discussed in this Essentials version of the book, team listening is an important virtue in negotiations. The more people listening, the more your side will hear valuable information and



understand the subtle nonverbal cues communicated by the other party. This information makes it easier to identify low‐cost concessions or proposals that will satisfy the other side.

5. Companies are most effective when they have strong corporate cultures.

FALSE. As with so many organizational behavior concepts, the more precise answer is “it depends.” In Chapter 14, students will read that there is a weak relationship between corporate culture strength and organizational performance. Three reasons are offered. First, a strong culture can be a problem when the values are inconsistent with the organization’s environment. Second, a very strong culture can blind employees from seeing other perspectives. Third, a very strong culture suppresses dissenting values that may be important in the future as the environment changes.

6. Employees perform better without stress.

FALSE. As we learn in Chapter 4, some level of stress is essential for life. We need a certain level of stress to energize us. The problem is that we sometimes (or often) experience stress beyond this bene1icial level.

7. The best way to change people and organizations is by pinpointing the source of their current problems.

FALSE. This statement refers to the dominant model of problem solving and organizational change, namely, to identify the problem before looking for solutions. In Chapter 15, we introduce an emerging perspective of organizational change called appreciative inquiry. According to this model, dwelling on problems can bog down the change process and degenerate into political. Instead, change agents need to focus the group on its potential and positive elements.

8. Female leaders involve employees in decisions to a greater degree than do male leaders.

TRUE. There is lot of debate about whether men and women lead differently. As we learn at the end of Chapter 12, men and women are mostly similar in their leadership styles. But there is one exception: female leaders involve employees in decisions to a greater degree than do male leaders. Of course, some female leaders are not participative, and some male leaders are very participative. But generally, female leaders are more participative.

9. The best decisions are made without emotion.

FALSE. The truth is, all decisions involve emotion and require emotion. Without emotion, people are unable to recognize problems and opportunities, and are unable to make choices. As explained in Chapter 6 (and noted in Chapters 3, 4, and 5), people form emotionally anchored preferences before they consciously think about the issue. Indeed, our “awareness” of a problem or opportunity is an emotional reaction to sensory information. Although our rational thought process can evaluate information, those conclusions must be processed by our emotional center(s) in order to make a choice. An important point here is that emotions are an inherent and essential part of human behavior. This is different from “getting emotional”, which occurs when emotions are so strong that they in1luence our actions without conscious control.

10. If employees feel they are paid unfairly, then nothing other than changing their pay will reduce their feelings of injustice.

FALSE. When it comes to money, people tend to play interesting mind games to avoid feeling overreward inequity. Students will read in Chapter 5 that underpaid (underrewarded) employees might reduce the injustice by working less, taking non‐monetary resources, changing the comparison other, or leaving the 1ield (such as quitting). This question also needs to consider that “injustice” is affected just as much by procedures as by distribution. Thus, injustice might be reduced by allowing appeals, ensuring the decision maker considers all information, ensuring that the underrewarded employees is treated with respect, and ensuring that he/she is given an opportunity to stated his/her views (voice).



SELF-ASSESSMENT 1-6: IS TELECOMMUTING FOR YOU?

NOTE: This self-assessment may be completed at the Online Learning Center.

PurposeThis exercise is designed to help students to assess the extent to which they possess the personal characteristics most suitable for telework.

Overview and InstructionsTeleworking (also known as telecommuting) has become one of the fastest‐growing developments in the workplace. With advanced computer and telecommunications systems, knowledge workers can now perform their work at home or another location away from their usual of1ice. But effective teleworking requires more than technology. Some people are better than others tat surviving and succeeding in teleworking arrangements.

This instrument is designed to help students to identify their “telework disposition”, that is, the degree to which their needs, values, and competencies are compatible with teleworking arrangements. This scale does not cover every personal characteristic related to effective teleworking, but it measures three of the most important dispositions. Also, please keep in mind that this scale only considers personal characteristics. Other factors, such as organizational, family, technological systems support must also be taken into account.

Students are asked to read each of the 14 statements in this instrument and indicate the extent to which they agree or disagree that the statement describes them.

Feedback for the Telework Disposition Assessment

This scale assesses three personal dispositions that are identi1ied in the literature as characteristics of effective teleworkers: (a) high company alignment, (b) low social needs at work, and (c) independent initiative.

Company alignmentCompany alignment estimates the extent to which you follow company procedures and have values congruent with company values. The greater the alignment, the more likely that you can abide by company practices while working alone and with direct supervision. While some deviation from company practices may be appropriate, teleworkers need to agree with company values and provide work that is consistent with company expectations most of the time. Scores on this scale range from 4 to 20.

Score Interpretation

15 to 20 High company alignment

9 to 14 Moderate company alignment

4 to 8 Low company alignment



Low social needs at workPeople with a high score on this sub‐scale do not rely on co‐workers to satisfy their social needs. Successful teleworkers tend to score higher on this sub‐scale (i.e. have lower social needs at work) because teleworking offers less opportunity for social interaction with co‐workers than when working in an of1ice setting each day. Scores on this scale range from 4 to 20. Notice that HIGH scores represent LOW social needs.


15 to 20 Low social needs

9 to 14 Moderate social needs

4 to 8 High social needs

Independent initiativeOne of the most important characteristics of successful teleworkers is that they are able to set their own work goals and maintain a productive work schedule without direct supervision. People who score higher on this sub‐scale tend to have a higher degree of independent initiative. Scores on this scale range from 6 to 30.


24 to 30 High independent initiative

15 to 23 Moderate independent initiative

6 to 14 Low independent initiative

Total Telework DispositionThis overall score combines the results for company alignment, social needs at work, and independent initiative. A higher score indicates that students will probably be more satis1ied and productive in a teleworking arrangement than someone with a lower score on this scale. Speci1ically, people with high scores have higher alignment with company values and practices, lower social needs at work, and higher independent initiative. Scores on this scale range from 14 to 70.


54 to 70 High telework disposition

34 to 53 Moderate telework disposition

14 to 33 Low telework disposition



organization behavior teacher manual, chapter one

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