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Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct. Chapter One. Learning Objectives. LO.1 Define the term organizational behavior, and contrast McGregor’s Theory X and Theory Y assumptions about employees.
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Organizational Behavior: The Quest for People-Centered Organizations and Ethical Conduct Chapter One
Learning Objectives LO.1 Define the term organizational behavior, and contrast McGregor’s Theory X and Theory Y assumptions about employees. LO.2 Identify the four principles of total quality management (TQM). LO.3 Define the term e-business, and describe the Net Generation. LO.4 Contrast human and social capital, and explain why we need to build both. LO.5 Define the term management, and identify at least five of the eleven managerial skills in Wilson’s profile of effective managers.
Learning Objectives (cont.) LO.6 Characterize 21st-century managers. LO.7 Describe Carroll’s global corporate social responsibility pyramid, and discuss the problem of moral erosion. LO.8 Identify four of the seven general ethical principles, and explain how to improve an organization’s ethical climate. LO.9 Describe the sources of organizational behavior research evidence.
The Field of Organizational Behavior • Organizational Behavior • Interdisciplinary field dedicated to better understanding and managing people at work
OB-Related Skills Are the Ticket to Ride the Virtuous Career Spiral
The Human Relations Movement • Legalization of union-management collective bargaining • Behavioral scientist called more attention to the human factor • Elton Mayo – Western Electric Hawthorne study
The Hawthorne Legacy • Interviews do not support initial conclusions about positive effect of supportive supervision • Money, fear of unemployment, managerial discipline and high quality raw materials were responsible for high output
McGregor’s Theory Y • Theory X assumptions • pessimistic and negative, typical of how managers traditionally perceived employees
McGregor’s Theory Y • Theory Y • believed managers could accomplish more through others by viewing them as self-energized, committed, responsible, and creative beings
Question? As a production manager of Great Golf Products (GGP), Lorena believes that her employees are capable of self-direction and self-control. She also believes that they are committed to Titanium's objectives since they are rewarded for doing so. Lorena can be described as a: • Theory X manager. • Theory Z manager. • Futuristic manager. • Theory Y manager.
What is TQM? • Total Quality Management • means that the organization’s culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools, techniques, and training. • This involves the continuous improvement of organizational processes, resulting in high-quality products and services.
Principles of TQM • Do it right the first time to eliminate costly rework and product recalls. • Listen to and learn from customers and employees. • Make continuous improvement an everyday matter. • Build teamwork, trust, and mutual respect
The Internet and Social Media Revolution • e-business • using the Internet to facilitate every aspect of running a business, including the management of virtual teams • Another important shift in the Internet is the growing importance of user-generated content • Facebook, LinkedIn, Twitter
Question? http://www.Thinkgeek.com only has a business presence on the web. This is an example of a(n) __________. • “Brick & Click” • “Click & Mortar” • E-business • Retailer
The Strategic Importance and Dimensions of Human and Social Capital
What is Human Capital? • Human Capital • The productive potential of one’s knowledge and actions • A present or future employee with the right combination of knowledge, skills, and motivation to excel
What is Social Capital? • Social capital • The productive potential of strong relationships, goodwill, trust, and cooperative effort
Question? The productive potential of strong, trusting, and cooperative relationships is known as __________. • Learning capacity • Social capital • Talent engagement • Knowledge accessibility
The Managerial Context: Getting Things Done with and through Others • Management • the process of working with and through others to achieve organizational objectives, efficiently and ethically, in the face of constant change. • For students of OB, the central feature of this definitionis working with and through others
21st-Century Managers • Teams are pushing aside the individual as the primary building block of organizations. • Command-and-control management is giving way to participative management and empowerment. • Ego-centered leaders are being replaced by customer-centered leaders. • Employees increasingly are being viewed as internal customers.
The Contingency Approach to Management • Contingency Approach • Using management concepts and techniques in a situationally appropriate manner, instead of trying to rely on “one best way”
The Ethics Challenge • Ethics is concerned with right versus wrong, good versus bad, and the many shades of gray in-between supposedly black-and-white issues
A Model of Global Corporate SocialResponsibility and Ethics • Corporate social responsibility (CSR) • “the notion that corporations have an obligation to constituent groups in society other than stockholders and beyond that prescribed by law or union contract.
A Model of Global Corporate SocialResponsibility and Ethics • Make a profit consistent with expectations for international businesses to fulfill economic responsibility. • Obey the law of host countries as well as international law to fulfill legal responsibility.
A Model of Global Corporate SocialResponsibility and Ethics • Be ethical in its practices, taking host-country and global standards into consideration to fulfill ethical responsibility. • Be a good corporate citizen, especially as defined by the host country’s expectations to fulfill philanthropic responsibility.
Taking Local Norms and Conduct into Consideration • National culture affects how people think and act about everything, including ethical issues • Each culture requires its own ethical analysis, taking local norms into consideration.
Ethical Lapses in the Workplace • Lower-level employees regularly witness common ethical lapses such as lying about being sick, fudging a report, bullying and sexual harassment, personal use of company equipment, and stealing company property or funds.
Intense Pressure for Results Starts Early • Most common is an individual’s own desire to “look good” for their bosses, which has been identified as a cause of unethical behavior in lower- and mid-level employees and managers.
Intense Pressure for Results Starts Early • Managers pressure unethical behavior due to their own motivations to perform, perceptions that such behaviors are actually acceptable or that no consequences will occur, reward systems that incentivize unethical behaviors, and/or the physical environment facilitates such actions
The Magnificent Seven: General Moral Principles for Managers
Video Case: Starbucks • Why does Starbucks view its social responsibility activities not as an expense or requirement, but rather as an “enlightened self-interest”? • What is the benefit for Starbucks in assisting Latin American farmers in obtaining financing to pay their pickers? • Why is Starbucks so interested in protecting the interests of the farmers who supply their coffee? Aren’t there others they could buy from?
Video: Pike Place Fish Market • What does it mean at Pike Place Fish to be world famous? Why does it take some new employees months to understand this concept? • What role does organizational culture play in Pike Place Fish’s quest to be world famous? Why are other firms such as Coffee Bean & Tea Leaf adopting the “fish” philosophy? • How does Pike Place Fish create the context for workers to reach their maximum potential? What role does socialization and mentoring play in creating and nurturing this atmosphere?
