Organizational Behavior, 9

1. Organizational Behavior, 9/EChapter 1Introduction to OB Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

2. Organizational Behavior: Chapter 1 2 Chapter 1 Study Questions What is organizational behavior and why is it important? What are organizations like as work settings? What is the nature of managerial work? How do we learn about organizational behavior?

3. Organizational Behavior: Chapter 1 3 What is organizational behavior and why is it important? Workplace success depends on:  Respect for people. Understanding of human behavior in complex organizational systems. Individual commitment to flexibility, creativity, and learning. Individual willingness to change.

4. Organizational Behavior: Chapter 1 4 What is organizational behavior and why is it important? Organizations and their members are challenged to:  Simultaneously achieve high performance and high quality of life. Embrace ethics and social responsibility. Respect the vast potential of demographic and cultural diversity among people. Recognize the impact of globalization.

5. Organizational Behavior: Chapter 1 5 What is organizational behavior and why is it important? Organizational behavior. Study of human behavior in organizations. A multidisciplinary field devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics.

6. Organizational Behavior: Chapter 1 6 What is organizational behavior and why is it important?

7. Organizational Behavior: Chapter 1 7 What is organizational behavior and why is it important? Reasons for importance of scientific thinking. The process of data collection is controlled and systematic. Proposed explanations are carefully tested. Only explanations that can be scientifically verified are accepted.

8. Organizational Behavior: Chapter 1 8 What is organizational behavior and why is it important? Contingency approach. Tries to identify how different situations can be best understood and handled. Important contingency variables include: Environment. Technology. Tasks. Structure. People.

9. Organizational Behavior: Chapter 1 9 What is organizational behavior and why is it important? Modern workplace trends. Commitment to ethical behavior. Importance of human capital. Demise of “command and control.” Emphasis on teamwork. Pervasive influence of information technology. Respect for new workforce expectations. Changing definition of “jobs” and “career.”

10. Organizational Behavior: Chapter 1 10 What are organizations like as work settings? An organization is a collection of people working together in a division of labor to achieve a common purpose.

11. Organizational Behavior: Chapter 1 11 What are organizations like as work settings? The core purpose of an organization is the creation of goods and services. Missions and mission statements focus attention on the core purpose. Mission statements communicate: A clear sense of the domain in which the organization’s products and services fit. A vision and sense of future aspirations.

12. Organizational Behavior: Chapter 1 12 What are organizations like as work settings? A strategy is a comprehensive plan that guides organizations to operate in ways that allow them to outperform their competitors. Key managerial responsibilities include strategy formulation and implementation. Knowledge of OB is essential to effectively strategy implementation.

13. Organizational Behavior: Chapter 1 13 What are organizations like as work settings?

14. Organizational Behavior: Chapter 1 14 What are organizations like as work settings? Stakeholders. People, groups, and institutions having an interest in an organization’s performance. Customers, owners, employees, suppliers, regulators, and local communities are key stakeholders. Interests of multiple stakeholders sometimes conflict. Executive leadership often focuses on balancing multiple stakeholder expectations.

15. Organizational Behavior: Chapter 1 15 What are organizations like as work settings? Organizational culture and diversity. Organizational culture refers to the shared beliefs and values that influence the behavior of organizational members. Positive organizational cultures: Have a high-performance orientation. Emphasize teamwork. Encourage risk taking. Emphasize innovation.. Respect people and workforce diversity. Success in business world is tied to valuing diversity.

16. Organizational Behavior: Chapter 1 16 What are organizations like as work settings? Organizational effectiveness approaches. Systems resource approach focuses on inputs. Internal process approach focuses on the transformation process. Goal approach focuses on outputs. Strategic contingencies approach focuses on impact on key stakeholders.

17. Organizational Behavior: Chapter 1 17 What are organizations like as work settings? Longitudinal views of organizational effectiveness. Short-run emphasis on goal accomplishment, resource utilization, and stakeholder satisfaction. Intermediate-run emphasis on organization’s adaptability and development potential. Long-run emphasis on survival.

18. Organizational Behavior: Chapter 1 18 What is the natureof managerial work? Managers perform jobs that involve directly supporting the work efforts of others. Managers assume roles such as coordinator, coach, or team leader.

19. Organizational Behavior: Chapter 1 19 What is the natureof managerial work? The management process. An effective manager is one whose organizational unit, group, or team consistently achieves its goals while its members remain capable, committed, and enthusiastic. Key results of effective management: Task performance. Job satisfaction.

20. Organizational Behavior: Chapter 1 20 What is the natureof managerial work?

21. Organizational Behavior: Chapter 1 21 What is the natureof managerial work? The nature of managerial work. Managers work long hours. Managers are busy people. Managers are often interrupted. Managerial work is fragmented and variable. Managers work mostly with other people. Managers spend a lot of time communicating.

22. Organizational Behavior: Chapter 1 22 What is the natureof managerial work?

23. Organizational Behavior: Chapter 1 23 What is the natureof managerial work? Managerial mind-sets. Reflective mind-set — managing one’s self. Analytic mind-set — managing organizational operations and decisions. Worldly mind-set — managing in a global context. Collaborative mind-set — managing relationships.  Action mind-set — managing change.

24. Organizational Behavior: Chapter 1 24 What is the natureof managerial work? Managerial skills and competencies. A skill is an ability to translate knowledge into action that results in a desired performance. Categories of skills. Technical. Human. Conceptual.

25. Organizational Behavior: Chapter 1 25 How do we learn about organizational behavior? Learning is an enduring change in behavior that results from experience. Organizational learning is the process of acquiring knowledge and utilizing information to adapt successfully to changing circumstances.

26. Organizational Behavior: Chapter 1 26 How do we learn about organizational behavior?

27. Organizational Behavior: Chapter 1 27 How do we learn about organizational behavior?

28. Organizational Behavior, 9/EChapter 2Current Issues in OB Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

29. Organizational Behavior: Chapter 1 29 Chapter 2 Study Questions What is a high-performance organization? What is multiculturalism, and how can workforce diversity be managed? How do ethics and social responsibility influence human behavior in organizations? What are key OB transitions in the new workplace?

30. Organizational Behavior: Chapter 1 30 What is a high-performance organization? High-performance organizations. Value and empower people, and respect diversity. Mobilize the talents of self-directed work teams. Use cutting-edge technologies to achieve success. Thrive on learning and enable members to grow and develop. Are achievement-, quality-, and customer-oriented, as well as being sensitive to the external environment.

31. Organizational Behavior: Chapter 1 31 What is a high-performance organization? Stakeholders. The individuals, groups, and other organizations affected by an organization’s performance. Value creation. The extent to which an organization satisfies the needs of strategic constituencies.

32. Organizational Behavior: Chapter 1 32 What is a high-performance organization?

33. Organizational Behavior: Chapter 1 33 What is a high-performance organization? Total quality management (TQM). A total commitment to: High-quality results. Continuous improvement. Customer satisfaction. Meeting customers’ needs. Doing all tasks right the first time. Continuous improvement focuses on two questions: Is it necessary? If so, can it be done better?

34. Organizational Behavior: Chapter 1 34 What is a high-performance organization? Human capital. The economic value of people with job-relevant abilities, knowledge, ideas, energies, and commitments. Knowledge workers. People whose minds rather than physical capabilities create value for the organization. Intellectual capital. The performance potential of the expertise, competencies, creativity, and commitment within an organization’s workforce.

35. Organizational Behavior: Chapter 1 35 What is a high-performance organization? Empowerment. Allows people, individually and in groups, to use their talents and knowledge to make decisions that affect their work. Social capital. The performance potential represented in the relationships maintained among people at work.

36. Organizational Behavior: Chapter 1 36 What is a high-performance organization? Learning and high-performance cultures. Uncertainty highlights the importance of organizational learning. High-performance organizations are designed for organizational learning. A learning organization has a culture that values human capital and invigorates learning for performance enhancement.

37. Organizational Behavior: Chapter 1 37 What is a high-performance organization?

38. Organizational Behavior: Chapter 1 38 What is multi-culturalism, and how can workforce diversity be managed? Workforce diversity. Describes differences among people with respect to age, race, ethnicity, gender, physical ability, and sexual orientation. Multiculturalism. Refers to pluralism and respect for diversity and individual differences in the workplace. Inclusivity. The degree to which the organization’s culture respects and values diversity.

39. Organizational Behavior: Chapter 1 39 What is multi-culturalism, and how can workforce diversity be managed? Diversity biases in the workplace. Prejudice. Discrimination. The glass ceiling effect. Sexual harassment. Verbal abuse. Pay discrimination.

40. Organizational Behavior: Chapter 1 40 What is multi-culturalism, and how can workforce diversity be managed?

41. Organizational Behavior: Chapter 1 41 What is multi-culturalism, and how can workforce diversity be managed? Managing diversity. Developing a work environment and organizational culture that allows all organization members to reach their full potential. A diversity mature organization is created when: Managers ensure the effective and efficient utilization of employees in pursuit of the corporate mission. Managers consider how their behaviors affect diversity. Well-managed workforce diversity increases human capital.

42. Organizational Behavior: Chapter 1 42 How do ethics and social responsibility influence human behavior in organizations? Ethical behavior. “Good” or “right” as opposed to “bad” or “wrong” in a particular setting. The public demands that people in organizations act according to high moral standards.

43. Organizational Behavior: Chapter 1 43 How do ethics and social responsibility influence human behavior in organizations?  Immoral managers. Do not subscribe to any ethical principles; pursuit of self-interest. Amoral managers. Ethics is simply not on this manager’s “radar screen.” Moral managers. Incorporate ethical principles and goals into their personal behavior .

44. Organizational Behavior: Chapter 1 44 How do ethics and social responsibility influence human behavior in organizations? 

45. Organizational Behavior: Chapter 1 45 How do ethics and social responsibility influence human behavior in organizations? Ways of thinking about ethical behavior. Utilitarian view –– the greatest good for the greatest number of people. Individualism view –– best serving long-term self-interests. Moral-rights view –– respects and protects the fundamental rights of all human beings. Justice view –– fair and impartial in the treatment of all people.

46. Organizational Behavior: Chapter 1 46 How do ethics and social responsibility influence human behavior in organizations? Different types of justice. Procedural justice –– properly following rules and procedures in all cases. Distributive justice –– treating people the same under a policy, regardless of demographic differences. Interactional justice –– treating people affected by a decision with dignity and respect.

47. Organizational Behavior: Chapter 1 47 How do ethics and social responsibility influence human behavior in organizations? Ethical dilemmas. Occur when someone must choose whether or not to pursue a course of action that, although offering the potential of personal or organizational benefit or both, may be considered unethical.

48. Organizational Behavior: Chapter 1 48 How do ethics and social responsibility influence human behavior in organizations? Rationalizations for unethical behavior. Pretending the behavior is not really unethical or illegal. Saying the behavior is really in the organization’s or person’s best interest. Assuming the behavior is acceptable if others don’t find out about it. Presuming that superiors will support and protect you.

49. Organizational Behavior: Chapter 1 49 How do ethics and social responsibility influence human behavior in organizations? Organizational social responsibility. The obligation of organizations to behave in ethical and moral ways as institutions of the broader society. Managers should commit organizations to: Pursuit of high productivity. Corporate social responsibility. A whistleblower exposes others’ wrongdoings in order to preserve high ethical standards.

50. Organizational Behavior: Chapter 1 50 What are key OB transitions in the new workplace? Corporate governance and ethics leadership. Society expects and demands ethical decisions and actions from businesses and other social institutions. Corporate governance. The active oversight of management decisions, corporate strategy, and financial reporting by Boards of Directors.

51. Organizational Behavior: Chapter 1 51 What are key OB transitions in the new workplace? Corporate governance and ethics leadership (cont.). Ethics leadership. Making business and organizational decisions with high moral standards that meet the ethical test of being “good” and not “bad,” and of being “right” and not “wrong.” . Integrity. Acting in ways that are always honest, credible, and consistent in putting one’s values into practice.

52. Organizational Behavior: Chapter 1 52 What are key OB transitions in the new workplace? Positive organizational behavior. Quality of work life. The overall quality of human experience in the workplace. Commitment to quality of work life is an important value within organizational behavior. Theory Y provides the theoretical underpinnings for contemporary quality of work life concepts.

53. Organizational Behavior: Chapter 1 53 What are key OB transitions in the new workplace? Positive organizational behavior (cont.). Positive organizational behavior focuses on practices that value human capacities and encourage their full utilization. Positive organizational behavior is based on the core capacities of: Confidence. Hope. Optimism. Resilience.

54. Organizational Behavior: Chapter 1 54 What are key OB transitions in the new workplace? Globalization, job migration, and organizational transformation. Globalization. The worldwide interdependence of resource flows, product markets, and business competition. Job migration. The shifting of jobs from one nation to another.

55. Organizational Behavior: Chapter 1 55 What are key OB transitions in the new workplace? Globalization, job migration, and organizational transformation (cont.). Global outsourcing. Involves employers cutting back on domestic jobs and replacing them with contract workers in other nations. Job migration and global outsourcing have contributed to organizations redesigning themselves for high performance in a changed world.

56. Organizational Behavior: Chapter 1 56 What are key OB transitions in the new workplace? Personal management and career planning. Shamrock organizations. Relatively small core group of permanent, full-time employees with critical skills. Outside operators contracting to core group to perform essential daily activities. Part-timers hired by core group on an as-needed basis.

57. Organizational Behavior: Chapter 1 57 What are key OB transitions in the new workplace? Personal management and career planning (cont.). Personal management. Understand one’s self, exercising initiative, accepting responsibility, working well with others, and continually learning from experience. Self-monitoring. Observing and reflecting on one’s own behavior and acting in ways that adapt to the situation.

58. Organizational Behavior, 9/EChapter 3OB Across Cultures Prepared by Michael K. McCuddy Valparaiso University John Wiley & Sons, Inc.

59. Organizational Behavior: Chapter 1 59 Chapter 3 Study Questions Why is globalization significant for organizational behavior? What is culture and how can we understand cultural differences? How does cultural diversity affect people at work? What is a global view on organizational learning?

60. Organizational Behavior: Chapter 1 60 Why is globalization significant for organizational behavior? Most organizations must achieve high performance within a complex and competitive global environment. Globalization refers to the complex economic networks of international competition, resource suppliers, and product markets.

61. Organizational Behavior: Chapter 1 61 Why is globalization significant for organizational behavior? Forces of globalization. Rapid growth in information technology and electronic communication. Movement of valuable skills and investments. Increasing cultural diversity. Implications of immigration. Increasing job migration among nations. Impact of multicultural workforces.

62. Organizational Behavior: Chapter 1 62 Why is globalization significant for organizational behavior? Globalization is contributing to the emergence of regional economic alliances. Important regional alliances. European Union (EU). North American Free Trade Agreement (NAFTA). Asia-Pacific Economic Co-operation Forum (APEC).

63. Organizational Behavior: Chapter 1 63 Why is globalization significant for organizational behavior? Outsourcing. Contracting out of work rather than accomplishing it with a full-time permanent workforce. Off shoring. Contracting out work to persons in other countries. Job migration. Movement of jobs from one location or country to another.

64. Organizational Behavior: Chapter 1 64 Why is globalization significant for organizational behavior? Global managers. Know how to conduct business in multiple countries. Are culturally adaptable and often multilingual. Think with a worldview and are able to map strategy in the global context. Have a global attitude. Have a global mindset.

65. Organizational Behavior: Chapter 1 65 Why is globalization significant for organizational behavior? Culture. The learned, shared way of doing things in a particular society. The “software of the mind.” Helps define boundaries between different groups and affects how their members relate to one another. Cultural intelligence is the ability to identify, understand, and act with sensitivity and effectiveness in cross-cultural situations.

66. Organizational Behavior: Chapter 1 66 What is culture and how can we understand cultural differences? Language. Perhaps the most visible aspect of culture. Whorfian hypothesis — considers language as a major determinant of thinking. Low-context cultures — the message is conveyed by the words used. High-context cultures — words convey only a limited part of the message.

67. Organizational Behavior: Chapter 1 67 What is culture and how can we understand cultural differences? Time orientation. Polychronic cultures. Circular view of time. No pressure for immediate action or performance. Emphasis on the present. Monochronic cultures. Linear view of time. Create pressure for action and performance. Long-range goals and planning are important.

68. Organizational Behavior: Chapter 1 68 What is culture and how can we understand cultural differences? Use of space. Proxemics. The study of how people use space to communicate. Reveals important cultural differences. Concept of personal space varies across cultures. Space is arranged differently in different cultures.

69. Organizational Behavior: Chapter 1 69 What is culture and how can we understand cultural differences? Religion. A major element of culture. Can be a very visible aspect of culture. Influences codes of ethics and moral behavior. Influences conduct of economic matters.

70. Organizational Behavior: Chapter 1 70 What is culture and how can we understand cultural differences? Values and national culture. Cultures vary in underlying patterns of values and attitudes. Hofstede’s five dimensions of national culture: Power distance. Uncertainty avoidance. Individualism-collectivism. Masculinity-femininity. Long-term/short-term orientation.

71. Organizational Behavior: Chapter 1 71 What is culture and how can we understand cultural differences? Power distance. The willingness of a culture to accept status and power differences among members. Respect for hierarchy and rank in organizations. Example of a high power distance culture — Indonesia. Example of a low power distance culture — Sweden.

72. Organizational Behavior: Chapter 1 72 What is culture and how can we understand cultural differences? Uncertainty avoidance. The cultural tendency toward discomfort with risk and ambiguity. Preference for structured versus unstructured organizational situations. Example of a high uncertainty avoidance culture — France. Example of a low uncertainty avoidance culture — Hong Kong.

73. Organizational Behavior: Chapter 1 73 What is culture and how can we understand cultural differences? Individualism-collectivism. The cultural tendency to emphasize individual or group interests. Preferences for working individually or in groups. Example of an individualistic culture — United States. Example of a collectivist culture — Mexico.

74. Organizational Behavior: Chapter 1 74 What is culture and how can we understand cultural differences? Masculinity-femininity. The tendency of a culture to value stereotypical masculine or feminine traits. Emphasizes competition/assertiveness versus interpersonal sensitivity/relationships. Example of a masculine culture — Japan. Example of a feminine culture — Thailand.

75. Organizational Behavior: Chapter 1 75 What is culture and how can we understand cultural differences? Long-term/short-term orientation. The tendency of a culture to emphasize future-oriented values versus present-oriented values. Adoption of long-term or short-term performance horizons. Example of a long-term orientation culture — South Korea. Example of a short-term orientation culture — United States.

76. Organizational Behavior: Chapter 1 76 What is culture and how can we understand cultural differences?

77. Organizational Behavior: Chapter 1 77 What is culture and how can we understand cultural differences? Understanding cultural differences helps in dealing with parochialism and ethnocentrism. Parochialism — assuming that the ways of one’s own culture are the only ways of doing things. Ethnocentrism — assuming that the ways of one’s culture are the best ways of doing things.

78. Organizational Behavior: Chapter 1 78 What is culture and how can we understand cultural differences?

79. Organizational Behavior: Chapter 1 79 What is culture and how can we understand cultural differences? Cultural differences in handling relationships with other people. Universalism versus particularism. Relative emphasis on rules and consistency, or on relationships and flexibility. Individualism versus collectivism. Relative emphasis on individual freedom and responsibility, or on group interests and consensus.

80. Organizational Behavior: Chapter 1 80 What is culture and how can we understand cultural differences? Cultural differences in handling relationships with other people (cont.). Neutral versus affective. Relative emphasis on objectivity and detachment, or on emotion and expressed feelings. Specific versus diffuse. Relative emphasis on focused and narrow involvement, or on involvement with the whole person.

81. Organizational Behavior: Chapter 1 81 What is culture and how can we understand cultural differences? Cultural differences in handling relationships with other people (cont.).  Achievement versus prescription. Relative emphasis on performance-based and earned status, or on ascribed status.

82. Organizational Behavior: Chapter 1 82 What is culture and how can we understand cultural differences? Cultural differences in attitudes toward time. Sequential view of time. Time is a passing series of events. Synchronic view of time. Time consists of an interrelated past, present, and future.

83. Organizational Behavior: Chapter 1 83 What is culture and how can we understand cultural differences? Cultural differences in attitudes toward the environment. Inner-directed cultures. Members view themselves as separate from nature and believe they can control it. Outer-directed cultures. Members view themselves as part of nature and believe they must go along with it.

84. Organizational Behavior: Chapter 1 84 How does cultural diversity affect people at work? Multinational corporation (MNC). A business firm that has extensive international operations in more than one foreign country. Have a total world view without allegiance to any one national home. Have enormous economic power and impact. Bring benefits and controversies to host countries.

85. Organizational Behavior: Chapter 1 85 How does cultural diversity affect people at work? Multicultural workforces and expatriates. Styles of leadership, motivation, decision making, planning, organizing, and controlling vary from country to country. Expatriates. People who live and work abroad for extended periods of time. Can be very costly for employers. Progressive employers take supportive measures to maximize potential for expatriate success.

86. Organizational Behavior: Chapter 1 86 How does cultural diversity affect people at work?

87. Organizational Behavior: Chapter 1 87 How does cultural diversity affect people at work? Ethical behavior across cultures. Ethical challenges result from: Cultural diversity. Variations in governments and legal systems. Prominent current issues. Corruption and bribery. Poor working conditions. Child and prison labor. Business support of repressive governments. Sweatshops.

88. Organizational Behavior: Chapter 1 88 How does cultural diversity affect people at work?

89. Organizational Behavior: Chapter 1 89 How does cultural diversity affect people at work? Advice regarding cultural relativism and ethical absolutism. Multinational businesses should adopt core or threshold values that respect and protect fundamental human rights. Beyond the threshold, businesses should adapt and tailor actions to respect the traditions, foundations, and needs of different cultures.

90. Organizational Behavior: Chapter 1 90 What is a global view on organizational learning? Organizational learning. The process of acquiring the knowledge necessary to adapt to a changing environment. Global organizational learning. The ability to gather from the world at large the knowledge required for long-term organizational adaptation.

91. Organizational Behavior: Chapter 1 91 What is a global view on organizational learning? Are management theories universal? Answer is “no.” Cultural influences should be carefully considered in transferring theories and their applications across cultures.

92. Organizational Behavior: Chapter 1 92 What is a global view on organizational learning? Best practices around the world. Global organizational learning should identify best practices around the world. Potential high-performance benchmarks exist throughout the world. Cultural diversity enriches global organization learning.