Organizational Behaviour

1. Organizational Behaviour Chapter 1 Needed People-Centered Managers and Workplaces

2. Needed: People-Centered Managers and Workplaces Learning Objectives • Identify at least four of Pfeffer’s people-centered practices, and define the term management. • Contrast McGregor’s Theory X and Theory Y assumptions about employees. • Explain the managerial significance of Deming’s 85-15 rule, and identify the four principles of total quality management (TQM). • Contrast human capital and social capital, and explain why we need to build both. • Explain the impact of the positive psychology movement on the field of OB. • Define the term E-business, and specify five ways the Internet is affecting the management of people at work. Chapter One

3. Pfeffer’s Seven People-Centered Practices 1-1 • Job security • Careful hiring • Power to the people • Generous pay for performance • Lots of training • Less emphasis on status • Trust building

4. People (Skilled, motivated people who can handle change. Less stress.) Productivity (Less wasteful, more efficient use of all resources.) Products (Satisfied customers because of better quality goods/services. Job creation.) Processes (Faster, more flexible, leaner, and ethical organizational processes. Organizational learning.) The 4-P Cycle of Continuous Improvement 1-2 Figure 1-1

5. Skills & Best Practices: The Effective Manager’s Skill Profile 1-3 • Clarifies goals and objectives for everyone involved. • Encourages participation, upward communication, and suggestions. • Plans and organizes for an orderly workflow • Has technical and administrative expertise to answer organization-related questions. • Facilitates work through team building, training, coaching, and support.

6. Skills & Best Practices: The Effective Manager’s Skill Profile (Cont.) 1-4 • Provides feedback honestly and constructively. • Keeps things moving by relying on schedules, deadlines, and helpful reminders. • Controls details without being overbearing. • Applies reasonable pressure for goal accomplishment. • Empowers and delegates key duties to others while maintaining goal clarity and commitment. • Recognizes good performance with rewards and positive reinforcement.

7. Primary role Order giver, privileged elite, manipulator, controller Facilitator, team member, teacher, advocate, sponsor, coach, partner Learning and knowledge Periodic learning, narrow specialist Continuous life-long learning, generalist with multiple specialties Compensation criteria Time, effort, rank Skills, results Cultural orientation Monocultural, monolingual Multicultural, multilingual Evolution of 21st Century Managers 1-5 Table 1-1 Past Managers Future Managers

8. Primary source of influence Formal authority Knowledge (technical and interpersonal) View of people Potential problem Primary resource Primary communication-pattern Vertical Multidirectional Decision-making style Limited input for individual decisions Broad-based input for joint decisions Evolution of 21st Century Managers (Cont.) 1-6 Table 1-1 Past Managers Future Managers

9. Ethical considerations Afterthought Forethought Nature of interpersonal relationships Competitive (win-lose) Cooperative (win-win) Handling of power and key information Hoard and restrict access Share and broaden access Approach to change Resist Facilitate Evolution of 21st Century Managers (Cont.) 1-7 Table 1-1 Past Managers Future Managers

10. McGregor’s Theory X and Theory Y 1-8 Theory X • Most people dislike work • Most people must be coerced and threatened before they will work • Most people actually prefer to be directed Theory Y • Work is a natural activity • People are capable of self-direction and self-control • Rewards cause people to be more committed to organizational goals • The typical employee can learn to accept and seek responsibility • People are imaginative, creative and have ingenuity

11. What is TQM? 1-9 Total Quality Management: An organizational culture dedicated to training, continuous improvement, and customer satisfaction Principles of TQM • Do it right the first time to eliminate costly rework. • Listen to and learn from customers and employees. • Make continuous improvement an everyday matter. • Build teamwork, trust and mutual respect.

12. The Age of Human and Social Capital 1-10 Human Capital • The productive potential of one’s knowledge and actions Social capital • The productive potential of strong, trusting, and cooperative relationships

13. The Strategic Importance and Dimensions of Human and Social Capital 1-11 Figure 1-2 Strategic Assumption Individual Human Capital Social Capital Organizational Learning

14. Company Program or activity TDIndustries Dallas 1,393 employees “Education is foremost at this construction company, where all employees—called ‘partners’—are allowed 100% reimbursement of tuition, fees, and books at any state-supported college.” A.G. Edwards St. Louis 16,482 employees “The brokerage…spends $75,000 per worker on training, and just built AGEU, a 20,000 square foot education center for new financial consultants” Skills & Best Practices: How to Build Human and Social Capital 1-12 Building Human Capital

15. Company Program or activity Microsoft Redmond, WA 36,665 employees “The software giant…matches charity donations up to $12,000.” American Express New York 43,477 employees “The 153-year-old travel and financial services firm…recently reinstated 12-week sabbaticals [so] staff can take time off to work at nonprofits.” Skills & Best Practices: How to Build Human and Social Capital (Cont.) 1-13 Building Social Capital

16. Company Program or activity Timberland Stratham, NH 2,116 employees “The maker of rugged footwear gives employees up to 40 hours a year of paid time off for community service.” Skills & Best Practices: How to Build Human and Social Capital (Cont.) 1-14 Building Social Capital

17. Positive Organizational Behavior 1-15 • Positive Organizational Behavior (POB) the study and improvement of employees’ positive attributes and capabilities

18. Luthans’s CHOSE Model Of Key POB Dimensions 1-16 Table 1-3 • C onfidence/self-efficacy • H ope • O ptimism • S ubjective well-being • E motional intelligence

19. E-business Implications for OB 1-17 • E-business running the entire business via the Internet • E-ManagementFast paced; Virtual teams, Networking skills • E-communicationEmail use/abuse; Telecommuting promised and drawbacks • E-leadership Involves electronically-mediated interactions in combination with traditional face-to-face • Goal setting and feedbackWeb-based goal-setting/evaluation; Risk of over control? • Organizational structure Virtual teams and organizations; Lack of trust and loyalty in “faceless” organizations? • Job design“Sticky” work settings; Unrealistic expectations?

20. E-business Implications for OB (Cont.) 1-18 • Decision making – Less time to make more decisions; Information overload; Empowerment and participative decision making • Knowledge management – E-training; E-learning; distance learning: Asynchronous vs. synchronous • Speed, conflict, and stress – Does relentless speed equal burnout? • Change and resistance to change – Stop the World, I want to get off! Constant change equals conflict • Ethics – Net slaves (low pay with unrealistic promises of riches); Electronic monitoring; Repetitive motion injuries; Abuse of part-timers (no benefits, no job security); Privacy issues