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Organizational Behavior

Schermerhorn, Schermerhorn, Hunt, and Osborn


Prepared by Michael K. McCuddy Valparaiso University

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?
Organizational Behavior: Chapter 1 2

Study Question 1: 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.
Organizational Behavior: Chapter 1 3

Study Question 1: 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.
Organizational Behavior: Chapter 1 4

Study Question 1: 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.
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Study Question 1: What is organizational behavior and why is it important?

Pick up Figure 1.1 from the textbook.

Organizational Behavior: Chapter 1

Study Question 1: 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.
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Study Question 1: 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.
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Study Question 1: 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.

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Study Question 2: 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.

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Study Question 2: 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

organizations products and services fit. A vision and sense of future aspirations.
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Study Question 2: 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.
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Study Question 2: What are organizations like as work settings?

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Study Question 2: What are organizations like as work settings? Stakeholders.


People, groups, and institutions having an

interest in an organizations 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.
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Study Question 2: 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.


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Study Question 2: 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.
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Study Question 2: 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 organizations adaptability and development potential. Long-run emphasis on survival.
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Study Question 3: What is the nature of managerial work?


Managers perform jobs that involve

directly supporting the work efforts of others.


Managers assume roles such as

coordinator, coach, or team leader.


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Study Question 3: What is the nature of 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.
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Study Question 3: What is the nature of managerial work?

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Study Question 3: What is the nature of 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.
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Study Question 3: What is the nature of managerial work?

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Study Question 3: What is the nature of managerial work?


Managerial mind-sets.
Reflective mind-set managing ones 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.
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Study Question 3: What is the nature of 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.
Organizational Behavior: Chapter 1 24

Study Question 4: 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.
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Study Question 4: How do we learn about organizational behavior?

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Study Question 4: How do we learn about organizational behavior?

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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?
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Study Question 1: What is a highperformance 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.

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Study Question 1: What is a highperformance organization? Stakeholders.


The individuals, groups, and other

organizations affected by an organizations performance.

Value creation.
The extent to which an organization

satisfies the needs of strategic constituencies.


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Study Question 1: What is a highperformance organization?

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Study Question 1: What is a highperformance 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?
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Study Question 1: What is a highperformance 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 organizations workforce.


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Study Question 1: What is a highperformance 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.


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Study Question 1: What is a highperformance 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.
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Study Question 1: What is a highperformance organization?

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Study Question 2: 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 organizations culture

respects and values diversity.


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Study Question 2: 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.
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Study Question 2: What is multi-culturalism, and how can workforce diversity be managed?

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Study Question 2: 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.


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Study question 3: 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.
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Study question 3: 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 managers radar

screen.

Moral managers.
Incorporate ethical principles and goals into

their personal behavior .


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Study question 3: How do ethics and social responsibility influence human behavior in organizations?

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Study question 3: 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.
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Study question 3: 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.


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Study question 3: 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.
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Study question 3: 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 organizations or persons best interest. Assuming the behavior is acceptable if others dont find out about it. Presuming that superiors will support and protect you.
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Study question 3: 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.
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Study question 4: 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.


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Study question 4: 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 ones values into practice.
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Study question 4: 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.

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Study question 4: 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.


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Study question 4: 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.

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Study question 4: 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.


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Study question 4: 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.
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Study question 4: What are key OB transitions in the new workplace?


Personal management and career planning (cont.).
Personal management. Understand ones self, exercising initiative, accepting responsibility, working well with others, and continually learning from experience. Self-monitoring. Observing and reflecting on ones own behavior and acting in ways that adapt to the situation.
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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?
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Study Question 1: 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.
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Study Question 1: 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.
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Study Question 1: 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).


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Study Question 1: 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.
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Study Question 1: 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.
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Study Question 1: 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.
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Study Question 2: 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.
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Study Question 2: 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.
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Study Question 2: 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.


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Study Question 2: 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.

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Study Question 2: What is culture and how can we understand cultural differences?

Values and national culture.


Cultures vary in underlying patterns of values

and attitudes. Hofstedes five dimensions of national culture:


Power distance. Uncertainty avoidance. Individualism-collectivism. Masculinity-femininity. Long-term/short-term orientation.


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Study Question 2: 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.
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Study Question 2: 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.
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Study Question 2: 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.
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Study Question 2: 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.
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Study Question 2: 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.
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Study Question 2: What is culture and how can we understand cultural differences?

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Study Question 2: 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

ones own culture are the only ways of doing things. Ethnocentrism assuming that the ways of ones culture are the best ways of doing things.
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Study Question 2: What is culture and how can we understand cultural differences?

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Study Question 2: 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.
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Study Question 2: 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.
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Study Question 2: 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.

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Study Question 2: 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.
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Study Question 2: 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.
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Study Question 3: 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.
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Study Question 3: 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.
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Study Question 3: How does cultural diversity affect people at work?

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Study Question 3: 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.
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Study Question 3: How does cultural diversity affect people at work?

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Study Question 3: 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.
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Study Question 4: 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.


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Study Question 4: 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.

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Study Question 4: 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.
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Chapter 4 Study Questions


What is personality? How do personalities differ? What are value and attitude differences among individuals, and why are they important? What are individual differences and how are they related to workforce diversity?
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Study Question 1: What is personality? Personality.


The overall profile or combination of

characteristics that capture the unique nature of a person as that person reacts and interacts with others. Combines a set of physical and mental characteristics that reflect how a person looks, thinks, acts, and feels. Predictable relationships are expected between peoples personalities and their behaviors.
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Study Question 1: What is personality?

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Study Question 1: What is personality?


Heredity and environment.
Heredity sets the limits on the development of

personality characteristics. Environment determines development within these limits. About a 50-50 heredity-environment split. Cultural values and norms play a substantial role in the development of personality. Social factors include family life, religion, and many kinds of formal and informal groups. Situational factors reflect the opportunities or constraints imposed by the operational context.
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Study Question 1: What is personality?

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Study Question 1: What is personality? Personality and the self-concept.


Personality dynamics. The ways in which an individual integrates and organizes social traits, values and motives, personal conceptions, and emotional adjustments. Self-concept. The view individuals have of themselves as physical, social, and spiritual or moral beings. Self-esteem. Self-efficacy.
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Study Question 2: How do personalities differ?


Big Five personality dimensions.
Extraversion
Being outgoing, sociable, assertive.

Agreeableness.
Being good-natured, trusting, cooperative.

Conscientiousness.
Being responsible, dependable, persistent.

Emotional stability.
Being unworried, secure, relaxed.

Openness to experience.
Being imaginative, curious, broad-minded.
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Study Question 2: How do personalities differ? Social traits.


Surface-level traits that reflect the way a

person appears to others when interacting in various social settings.


An important social trait is problem-solving

style.
The way a person goes about gathering and

evaluating information in solving problems and making decisions.


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Study Question 2: How do personalities differ? Information gathering in problem solving.


Getting and organizing data for use. Sensation-type individuals prefer routine and

order and emphasize well-defined details in gathering information.


Intuitive-type individuals like new problems

and dislike routine.


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Study Question 2: How do personalities differ? Information evaluation in problem solving.


Making judgments about how to deal with

information once it has been collected. Feeling-type individuals are oriented toward conformity and try to accommodate themselves to other people. Thinking-type individuals use reason and intellect to deal with problems and downplay emotions.
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Study Question 2: How do personalities differ?

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Study Question 2: How do personalities differ? Personal conception traits.


The way individuals tend to think about their

social and physical settings as well as their major beliefs and personal orientation. Key traits.

Locus of control. Authoritarianism/dogmatism. Machiavellianism. Self-monitoring.


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Study Question 2: How do personalities differ? Locus of control.


The extent to which a person feels able to

control his/her own life. Externals.


More extraverted in their interpersonal

relationships and more oriented toward the world around them.

Internals. More introverted and more oriented towards their own feelings and ideas.
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Study Question 2: How do personalities differ?

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Study Question 2: How do personalities differ? Authoritarianism/dogmatism.


Authoritarianism.
Tendency to adhere rigidly to conventional values

and to obey recognized authority.

Dogmatism.
Tendency to view the world as a threatening place.

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Study Question 2: How do personalities differ?


People with a high-Machiavellian personality: Approach situations logically and thoughtfully. Are capable of lying to achieve personal goals. Are rarely swayed by loyalty, friendships, past promises, or others opinions. Are skilled at influencing others. Try to exploit loosely structured situations. Perform in a perfunctory or detached manner in highly structured situations.
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Study Question 2: How do personalities differ?


People with a low-Machiavellian personality:
Accept direction imposed by others in loosely

structured situations.
Work hard to do well in highly structured

situations.
Are strongly guided by ethical considerations. Are unlikely to lie or cheat.
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Study Question 2: How do personalities differ? Self-monitoring.


A persons ability to adjust his/her behavior to

external situational factors. High self-monitors.


Sensitive to external cues. Behave differently in different situations.

Low self-monitors. Not sensitive to external cues. Not able to disguise their behaviors.
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Study Question 2: How do personalities differ? Emotional adjustment traits.


How much an individual experiences distress

or displays unacceptable acts. Type A orientation.


Characterized by impatience, desire for

achievement, and perfectionism.

Type B orientation. Characterized as more easygoing and less competitive in relation to daily events.
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Study Question 3: What are value and attitude differences among individuals, and why are they important?

Values.
Broad preferences concerning appropriate

courses of action or outcomes. Values influence behavior and attitudes. Parents, friends, teachers, and external reference groups can influence individual values. Values develop as a product of learning and experiences.
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Study Question 3: What are value and attitude differences among individuals, and why are they important?

Pick up Figure 4.5 from the textbook.

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Study Question 3: What are value and attitude differences among individuals, and why are they important?

Gordon Allports values categories.


Theoretical values. Economic values. Aesthetic values. Social values. Political values. Religious values.
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Study Question 3: What are value and attitude differences among individuals, and why are they important?

Maglinos categories of workplace values.


Achievement. Helping and concern for others. Honesty. Fairness.

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Study Question 3: What are value and attitude differences among individuals, and why are they important?

Attitudes.
Are influenced by values and are acquired

from the same sources as values.


Are more specific and less stable than values. An attitude is a predisposition to respond in a

positive or negative way to someone or something in ones environment.


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Study Question 3: What are value and attitude differences among individuals, and why are they important?

Organizational Behavior: Chapter 4

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Study Question 3: What are value and attitude differences among individuals, and why are they important?

The attitude-behavior relationship is stronger when:


Attitudes and behaviors are more specific. There is freedom to carry out the behavioral

intent.
The person has experience with the attitude.
Organizational Behavior: Chapter 4 116

Study Question 3: What are value and attitude differences among individuals, and why are they important?

Attitudes and cognitive consistency.


Cognitive dissonance. Describes a state of inconsistency between an individuals attitudes and his or her behavior. Cognitive dissonance can be reduced by: Changing the underlying attitude. Changing future behavior. Developing new ways of explaining or rationalizing the inconsistency.
Organizational Behavior: Chapter 4 117

Study Question 3: What are value and attitude differences among individuals, and why are they important?

Attitudes and cognitive consistency (cont.).


Dissonance reduction choices are influenced

by:
The degree of control a person has over the

situation.
The magnitude of the rewards involved.

Organizational Behavior: Chapter 4

118

Study Question 4: What are individual differences and how are they related to workforce diversity?

Workforce diversity.
The presence of individual human

characteristics that make people different from one another.

Challenge of workforce diversity.


Respecting individuals perspectives and

contributions and promoting a shared sense of organizational vision and identity.


Organizational Behavior: Chapter 4 119

Study Question 4: What are individual differences and how are they related to workforce diversity?

As workforce diversity increases, the possibility of stereotyping and discrimination increases.


Demographic characteristics may serve as the

basis for stereotypes.


Organizational Behavior: Chapter 4 120

Study Question 4: What are individual differences and how are they related to workforce diversity?

Equal employment opportunity.


Nondiscriminatory employment decisions.
No intent to exclude or disadvantage legally

protected groups.

Affirmative action.
Remedial actions for proven discrimination or

statistical imbalance in workforce.


Organizational Behavior: Chapter 4 121

Study Question 4: What are individual differences and how are they related to workforce diversity? Demographic characteristics.
The background characteristics that help shape what a

person becomes.

Important demographic characteristics for the workplace.


Gender. Age. Able-bodiedness. Race. Ethnicity.


Organizational Behavior: Chapter 4 122

Study Question 4: What are individual differences and how are they related to workforce diversity?

Gender.
No consistent differences between men and

women in:

Problem-solving abilities. Analytical skills. Competitive drive. Motivation. Learning ability. Sociability.
Organizational Behavior: Chapter 4 123

Study Question 4: What are individual differences and how are they related to workforce diversity?

Gender (cont.).
As compared to men, women:
Are more conforming. Have lower expectations of success. Have higher absenteeism. Are more democratic as leaders.

Organizational Behavior: Chapter 4

124

Study Question 4: What are individual differences and how are they related to workforce diversity? Age.
Aging workforce. Older workers are more susceptible to stereotyping. Age discrimination lawsuits are increasingly common

in the United States.


Small businesses tend to value older workers. Experienced workers, who are usually older, tend to

perform well, be absent less, and have low turnover.


Organizational Behavior: Chapter 4 125

Study Question 4: What are individual differences and how are they related to workforce diversity?

Able-bodiedness.
Despite evidence of effective job performance,

most disabled persons are unemployed.


Most disabled persons want to work. More firms are likely to hire disabled workers

in the future.
Organizational Behavior: Chapter 4 126

Study Question 4: What are individual differences and how are they related to workforce diversity?

Racial and ethnic groups.


African Americans, Asian Americans, and

Hispanic Americans make up an everincreasing percentage of the American workforce.


Potential for stereotypes and discrimination

can adversely affect career opportunities.


Race cannot be a BFOQ.
Organizational Behavior: Chapter 4 127

Study Question 4: What are individual differences and how are they related to workforce diversity?

Important lessons regarding demographic characteristics.


Respect and deal with the needs and concerns

of people with different demographics.


Avoid linking demographics to stereotypes. Demography is not a good indicator of

individual-job fits.
Organizational Behavior: Chapter 4 128

Study Question 4: What are individual differences and how are they related to workforce diversity?

Aptitude.
A persons capability of learning something.

Ability.
A persons existing capacity to perform the

various tasks needed for a given job.


Includes relevant knowledge and skills.
Organizational Behavior: Chapter 4 129

Chapter 5 Study Questions What is the perception process? What are common perceptual distortions? How can perceptions be managed? What is attribution theory?
Organizational Behavior: Chapter 5 130

Study Question 1: What is the perception process?


Perception.
The process by which people select, organize,

interpret, retrieve, and respond to information.


People process information inputs into

responses involving feeling and action.


The quality or accuracy of a persons

perceptions has a major impact on responses.


Organizational Behavior: Chapter 5 131

Study Question 1: What is the perception process?

Organizational Behavior: Chapter 5

132

Study Question 1: What is the perception process?

Organizational Behavior: Chapter 5

133

Study Question 1: What is the perception process?

Organizational Behavior: Chapter 5

134

Study Question 1: What is the perception process?


Information attention and selection.
Selective screening.
Lets in only a tiny portion all the information that

is available.

Two types of selective screening.


Controlled processing. Screening without perceivers conscious

awareness.
Organizational Behavior: Chapter 5 135

Study Question 1: What is the perception process?


Organization of information.
Schemas. Cognitive frameworks that represent organized knowledge about a given concept or stimulus developed through experience. Types of schemas: Self schemas. Person schemas. Script schemas. Person-in-situation schemas.
Organizational Behavior: Chapter 5 136

Study Question 1: What is the perception process?


Information interpretation.
Uncovering the reasons behind the ways

stimuli are grouped.


People may interpret the same information

differently or make different attributions about information.


Organizational Behavior: Chapter 5 137

Study Question 1: What is the perception process?


Information retrieval.
Attention and selection, organization, and

interpretation are part of memory.


Information stored in memory must be

retrieved in order to be used.


Organizational Behavior: Chapter 5 138

Study Question 2: What are common perceptual distortions?

Organizational Behavior: Chapter 5

139

Study Question 2: What are common perceptual distortions?


Stereotypes or prototypes.
Combines information based on the category

or class to which a person, situation, or object belongs.


Individual differences are obscured. Strong impact at the organization stage.
Organizational Behavior: Chapter 5 140

Study Question 2: What are common perceptual distortions?


Halo effects.
Occur when one attribute of a person or

situation is used to develop an overall impression of the individual or situation.


Likely to occur in the organization stage. Important in the performance appraisal

process.
Organizational Behavior: Chapter 5 141

Study Question 2: What are common perceptual distortions?


Selective perception.
The tendency to single out those aspects of a

situation, person, or object that are consistent with ones needs, values, or attitudes.
Strongest impact is at the attention stage. Perception checking with other persons can

help counter the adverse impact of selective perception.


Organizational Behavior: Chapter 5 142

Study Question 2: What are common perceptual distortions?


Projection.
The assignment of ones personal attributes to

other individuals.
Especially likely to occur in interpretation

stage.
Projection can be controlled through a high

degree of self-awareness and empathy.


Organizational Behavior: Chapter 5 143

Study Question 2: What are common perceptual distortions?


Contrast effects.
Occur when an individual is compared to other

people on the same characteristics on which the others rank higher or lower.
People must be aware of the impact of contrast

effects in many work settings


Organizational Behavior: Chapter 5 144

Study Question 2: What are common perceptual distortions?


Self-fulfilling prophecy.
The tendency to create or find in another

situation or individual that which one expected to find. Also called the Pygmalion effect. Can have either positive or negative outcomes. Managers should adopt positive and optimistic approaches to people at work.
Organizational Behavior: Chapter 5 145

Study Question 3: How can perceptions be managed?


Impression management.
A persons systematic attempt to behave in

ways that create and maintain desired impressions in others eyes. Successful managers:
Use impression management to enhance their own

images. Are sensitive to other peoples use of impression management.


Organizational Behavior: Chapter 5 146

Study Question 3: How can perceptions be managed?


Distortion management.
Managers should:
Balance automatic and controlled information

processing at the attention and selection stage.


Broaden their schemas at the organizing stage. Be attuned to attributions at the interpretation

stage.
Organizational Behavior: Chapter 5 147

Study Question 4:What is attribution theory?


Attribution theory aids in perceptual interpretation by focusing on how people attempt to:
Understand the causes of a certain event. Assess responsibility for the outcomes of the

event. Evaluate the personal qualities of the people involved in the event.
Organizational Behavior: Chapter 5 148

Study Question 4:What is attribution theory?


Factors influencing internal and external attributions.
Distinctiveness consistency of a persons

behavior across situations. Consensus likelihood of others responding in a similar way. Consistency whether an individual responds the same way across time.
Organizational Behavior: Chapter 5 149

Study Question 4:What is attribution theory?


Fundamental attribution error.
Applies to the evaluation of someones else

behavior.
Attributing success to the influence of

situational factors.
Attributing failure to the influence of personal

factors.
Organizational Behavior: Chapter 5 150

Study Question 4:What is attribution theory?


Self-serving bias.
Applies to the evaluation of our own behavior. Attributing success to the influence of

personal factors.
Attributing failure to the influence of

situational factors.
Organizational Behavior: Chapter 5 151

Study Question 4:What is attribution theory?


Techniques for effectively managing perceptions and attributions.
Be self-aware. Seek a wide range of differing information. Try to see a situation as others would. Be aware of different kinds of schemas. Be aware of perceptual distortions. Be aware of self and impression management. Be aware of attribution theory implications.
Organizational Behavior: Chapter 5 152

Chapter 6 Study Questions


What is motivation?

What do the content theories suggest about individual needs and motivation? What do the process theories suggest about individual motivation? What are reinforcement theories and how are they linked to motivation?
Organizational Behavior: Chapter 6 153

Study Question 1:What is motivation?


Motivation refers to forces within an individual that account for the level, direction, and persistence of effort expended at work.
Direction an individuals choice when presented

with a number of possible alternatives.


Level the amount of effort a person puts forth. Persistence the length of time a person stays with a

given action.
Organizational Behavior: Chapter 6 154

Study Question 1:What is motivation?


Categories of motivation theories.
Content theories. Focus on profiling the needs that people seek to

fulfill.
Process theories. Focus on peoples thought or cognitive processes. Reinforcement theories. Emphasize controlling behavior by manipulating

its consequences.
Organizational Behavior: Chapter 6 155

Study Question 2: What do the content theories suggest about individual needs and motivation? Content theories.
Motivation results from the individuals attempts to

satisfy needs.

Major content theories.


Hierarchy of needs theory. ERG theory. Acquired needs theory. Two-factor theory.

Each theory offers a slightly different view.


Organizational Behavior: Chapter 6 156

Study Question 2: What do the content theories suggest about individual needs and motivation?

Organizational Behavior: Chapter 6

157

Study Question 2: What do the content theories suggest about individual needs and motivation?

ERG theory.
Existence needs.
Desire for physiological and material well-being.

Relatedness needs.
Desire for satisfying interpersonal relationships.

Growth needs.
Desire for continued personal growth and

development.
Organizational Behavior: Chapter 6 158

Study Question 2: What do the content theories suggest about individual needs and motivation? Acquired needs theory.
Need for achievement (nAch).
The desire to do something better or more efficiently, to solve

problems, or to master complex tasks.

Need for affiliation (nAff).


The desire to establish and maintain friendly and warm

relations with others.

Need for power (nPower).


The desire to control others, to influence their behavior, or to

be responsible for others.

Organizational Behavior: Chapter 6

159

Study Question 2: What do the content theories suggest about individual needs and motivation?

Organizational Behavior: Chapter 6

160

Study Question 3: What do the process theories suggest about individual motivation?

Process theories.
Focus on the thought processes through which

people choose among alternative courses of action.

The chapter focuses on two process theories:


Equity theory. Expectancy theory.
Organizational Behavior: Chapter 6 161

Study Question 3: What do the process theories suggest about individual motivation? Equity theory.
People gauge the fairness of their work outcomes in

relation to others.
Felt negative inequity. Individual feels he/she has received relatively less

than others in proportion to work inputs.


Felt positive inequity. Individual feels he/she has received relatively more

than others in proportion to work inputs.


Organizational Behavior: Chapter 6 162

Study Question 3: What do the process theories suggest about individual motivation?

Equity restoration behaviors.


Change work inputs. Change the outcomes received. Leave the situation. Change the comparison person. Psychologically distort the comparisons. Take actions to change the inputs or outputs of

the comparison person.


Organizational Behavior: Chapter 6 163

Study Question 3: What do the process theories suggest about individual motivation? Coping methods for dealing with equity comparisons.
Recognize that equity comparisons are inevitable in the

workplace.
Anticipate felt negative inequities when rewards are given. Communicate clear evaluations for any rewards given. Communicate an appraisal of performance on which the reward

is based.
Communicate comparison points that are appropriate in the

situation
Organizational Behavior: Chapter 6 164

Study Question 3: What do the process theories suggest about individual motivation?

Organizational Behavior: Chapter 6

165

Study Question 3: What do the process theories suggest about individual motivation? A persons motivation is a multiplicative function of expectancy, instrumentality, and valence (M = E x I x V). Motivational implications of expectancy theory.
Motivation is sharply reduced when, expectancy,

instrumentality, or valence approach zero. Motivation is high when expectancy and instrumentality are high and valence is strongly positive.
Organizational Behavior: Chapter 6 166

Study Question 3: What do the process theories suggest about individual motivation?

Extrinsic rewards.
Positively valued work outcomes given to the

individual by some other person.

Intrinsic rewards.
Positively valued work outcomes that the

individual receives directly as a result of task performance.

Organizational Behavior: Chapter 6

167

Study Question 3: What do the process theories suggest about individual motivation?

Guidelines for the distribution of extrinsic rewards.


Clearly identify the desired behaviors. Maintain an inventory of rewards that have the

potential to serve as positive reinforcers. Recognize individual differences in the rewards that will have a positive value for each person.
Organizational Behavior: Chapter 6 168

Study Question 3: What do the process theories suggest about individual motivation? Guidelines for the distribution of extrinsic rewards (cont.).
Let each person know exactly what must be done to

receive a desirable reward; set clear target antecedents and give performance feedback. Allocate rewards contingently and immediately upon the appearance of the desired behaviors. Allocate rewards wisely in terms of scheduling the delivery of positive reinforcement.

Organizational Behavior: Chapter 6

169

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Reinforcement.
The administration of a consequence as a

result of a behavior.
Proper management of reinforcement can

change the direction, level, and persistence of an individuals behavior.


Organizational Behavior: Chapter 6 170

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Organizational Behavior: Chapter 6

171

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Law of effect.
Theoretical basis for manipulating

consequences of behavior.
Behavior that results in a pleasant outcome is

likely to be repeated while behavior that results in an unpleasant outcome is not likely to be repeated.
Organizational Behavior: Chapter 6 172

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Organizational Behavior: Chapter 6

173

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Organizational behavior modification (OB Mod).


The systematic reinforcement of desirable

work behavior and the nonreinforcement or punishment of unwanted work behavior. Uses four basic strategies:
Positive reinforcement. Negative reinforcement. Punishment. Extinction.
Organizational Behavior: Chapter 6 174

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Positive reinforcement.
The administration of positive consequences

to increase the likelihood of repeating the desired behavior in similar settings. Rewards are not necessarily positive reinforcers. A reward is a positive reinforcer only if the behavior improves.
Organizational Behavior: Chapter 6 175

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Principles governing reinforcement.


Law of contingent reinforcement.
The reward must be delivered only if the desired

behavior is exhibited.

Law of immediate reinforcement.


The reward must be given as soon as possible after

the desired behavior is exhibited.


Organizational Behavior: Chapter 6 176

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Scheduling reinforcement. Continuous reinforcement.


Administers a reward each time the desired

behavior occurs.

Intermittent reinforcement. Rewards behavior periodically either on the basis of time elapsed or the number of desired behaviors exhibited.
Organizational Behavior: Chapter 6 177

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Organizational Behavior: Chapter 6

178

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Negative reinforcement.
Also known as avoidance. The withdrawal of negative consequences to

increase the likelihood of repeating the desired behavior in a similar setting.

Organizational Behavior: Chapter 6

179

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Punishment.
The administration of negative consequences

or the withdrawal of positive consequences to reduce the likelihood of repeating the behavior in similar settings.

Organizational Behavior: Chapter 6

180

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Implications of using punishment.


Punishing poor performance enhances

performance without affecting satisfaction.


Arbitrary and capricious punishment leads to

poor performance and low satisfaction.


Punishment may be offset by positive reinforcement from another source.
Organizational Behavior: Chapter 6 181

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Extinction.
The withdrawal of the reinforcing

consequences for a given behavior. The behavior is not unlearned; it simply is not exhibited. The behavior will reappear if it is reinforced again.

Organizational Behavior: Chapter 6

182

Study Question 4: What are reinforcement theories and how are they linked to motivation?

Organizational Behavior: Chapter 6

183

Study Question 4: What are reinforcement theories and how are they linked to motivation? Ethical issues with reinforcement usage.
Is improved performance really due to reinforcement? Is the use of reinforcement demeaning and

dehumanizing? Will managers abuse their power by exerting external control over behavior? How can we ensure that the manipulation of consequences is done in a positive and constructive fashion?
Organizational Behavior: Chapter 6 184

Chapter 7 Study Questions


How are motivation, job satisfaction, and performance related? What are job-design approaches? How are technology and job design related? What alternative work arrangements are used today?
Organizational Behavior: Chapter 7 185

Study Question 1: How are motivation, job satisfaction, and performance related? Job satisfaction.
The degree to which individuals feel positively

or negatively about their jobs.


Job satisfaction can be assessed:
By managerial observation and interpretation. Through use of job satisfaction questionnaires.

Organizational Behavior: Chapter 7

186

Study Question 1: How are motivation, job satisfaction, and performance related?
Implications of key work decisions for job satisfaction.
Joining and remaining a member of an organization.
Satisfied workers have better attendance and less turnover.

Working hard in pursuit of high levels of task

performance.
Three alternative relationships between performance and

satisfaction.
Organizational Behavior: Chapter 7 187

Study Question 1: How are motivation, job satisfaction, and performance related? Argument: satisfaction causes performance.
Managerial implication to increase

employees work performance, make them happy. Job satisfaction alone is not a consistent predictor of work performance.

Organizational Behavior: Chapter 7

188

Study Question 1: How are motivation, job satisfaction, and performance related? Argument: performance causes satisfaction.
Managerial implication help people achieve

high performance, then satisfaction will follow. Performance in a given time period is related to satisfaction in a later time period. Rewards link performance with later satisfaction.
Organizational Behavior: Chapter 7 189

Study Question 1: How are motivation, job satisfaction, and performance related? Argument: rewards cause both satisfaction and performance.
Managerial implications. Proper allocation of rewards can positively influence both satisfaction and performance. High job satisfaction and performance-contingent rewards influence a persons work performance. Size and value of the reward should vary in proportion to the level of ones performance.
Organizational Behavior: Chapter 7 190

Study Question 1: How are motivation, job satisfaction, and performance related?

Organizational Behavior: Chapter 7

191

Study question 2: What are jobdesign approaches?

Organizational Behavior: Chapter 7

192

Study question 2: What are jobdesign approaches?


Scientific management.
Sought to improve work efficiency by creating

small, repetitive tasks and training workers to do these tasks well. Job simplification.
Standardizes work procedures and employs people

in clearly defined and highly specialized tasks. Intent is to increase efficiency, but it may be decreased due to the motivational impact of unappealing jobs.
Organizational Behavior: Chapter 7 193

Study question 2: What are jobdesign approaches?


Job enlargement and job rotation.
Job enlargement. Increases task variety by combining into one job two or more tasks that were previously assigned to separate workers. Job rotation. Increases task variety by periodically shifting workers among jobs involving different tasks. Enlargement and rotation use horizontal

loading to increase job breadth.


Organizational Behavior: Chapter 7 194

Study question 2: What are jobdesign approaches?


Job enrichment.
The practice of enhancing job content by

building motivating factors such as responsibility, achievement, recognition, and personal growth into the job. Adds planning and evaluating duties to the job content. Uses vertical loading to increase job depth.
Organizational Behavior: Chapter 7 195

Study question 2: What are jobdesign approaches?


Ways to increase job depth.

Allow workers to plan. Allow workers to control. Maximize job freedom. Increase task difficulty. Help workers become task experts. Provide performance feedback. Increase performance accountability. Provide complete units of work.
Organizational Behavior: Chapter 7 196

Study question 2: What are jobdesign approaches?


Concerns about job enrichment.
Job enrichment can be very costly. Controversy concerning whether pay

must be increased when jobs are enriched.


Herzbergs argument regarding the impact

of competitive pay and enriched jobs.


Organizational Behavior: Chapter 7 197

Study question 3: What are the keys to designing motivating jobs?

Organizational Behavior: Chapter 7

198

Study question 3: What are the keys to designing motivating jobs?


Core job characteristics.
Skill variety.
Degree to which a job requires a variety of different activities

and involves the use of a number of different skills and talents of the individual.

Task identity.
Degree to which the job requires the completion of a whole

and identifiable piece of work; one that involves doing a job from beginning to end with a visible outcome.

Organizational Behavior: Chapter 7

199

Study question 3: What are the keys to designing motivating jobs?


Core job characteristics (cont.).
Task significance.
Degree to which the job is important and involves a

meaningful contribution to the organization or society in general.

Autonomy.
Degree to which the job gives the employee substantial

freedom, independence, and discretion in scheduling the work and in determining the procedures used in carrying it out.
Organizational Behavior: Chapter 7 200

Study question 3: What are the keys to designing motivating jobs?


Core job characteristics (cont.).
Job feedback.
Degree to which carrying out the work activities provides

direct and clear information to the employee regarding how well the job has been done. .

Organizational Behavior: Chapter 7

201

Study question 3: What are the keys to designing motivating jobs?


Motivating potential score.
Combined together, the core job

characteristics create a motivating potential score (MPS). MPS indicates the degree to which the job is capable of motivating people. A jobs MPS can be raised by enriching the core characteristics.
Organizational Behavior: Chapter 7 202

Study question 3: What are the keys to designing motivating jobs?


Critical psychological states.
When the core characteristics are highly

enriched, three critical psychological states are positively influenced.


Experienced meaningfulness of work. Experienced responsibility for work outcomes. Knowledge of actual results of work activities.

Positive psychological states create positive

work outcomes.
Organizational Behavior: Chapter 7 203

Study question 3: What are the keys to designing motivating jobs?


Enriched core job characteristics will create positive psychological states, which in turn will create positive work outcomes only when:
Employee growth-need strength is high. The employee has the requisite knowledge and

skill. Employee context satisfaction exists.


Organizational Behavior: Chapter 7 204

Study question 3: What are the keys to designing motivating jobs?


Social information processing theory.
Social information in organizations influences

the way people perceive their jobs and respond to them. Research evidence shows that both social information and the core characteristics are important determinants of how people perceive their jobs.
Organizational Behavior: Chapter 7 205

Study question 3: What are the keys to designing motivating jobs?


Managerial and global implications of enriching jobs.
Not everyones job should be enriched. Job enrichment can apply to groups. Culture has a substantial impact on job

enrichment.
Organizational Behavior: Chapter 7 206

Study Question 4: How are technology and job design related? Sociotechnical systems.
Reflects the importance of integrating people

and technology to create high-performance work systems.


Essential for new developments in job design,

given the impact of computers and information technology in the modern workplace.
Organizational Behavior: Chapter 7 207

Study Question 4: How are technology and job design related? Flexible manufacturing systems.
Adaptive computer-based technologies and

integrated job designs that are used to shift work easily and quickly among alternative products. Workers develop expertise across a wide range of functions. Jobs offer a wealth of potential for enriched core job characteristics.
Organizational Behavior: Chapter 7 208

Study Question 4: How are technology and job design related? Workflow and process reengineering.
Process reengineering is the analysis,

streamlining, and reconfiguration of actions and tasks required to reach a work goal.
This approach for improving workflows and

job designs is driven by one question:


What is necessary and what else can be eliminated?
Organizational Behavior: Chapter 7 209

Study Question 5: What alternative work arrangements are used today?


Compressed work weeks.
Any scheduling of work that allows a full-time

job to be completed in fewer than the standard five days.


4/40 is most common form.

Organizational Behavior: Chapter 7

210

Study Question 5: What alternative work arrangements are used today?


Compressed work weeks (cont.).
Advantages. For workers: added time off. For organizations: lower absenteeism and

improved recruiting of new employees. Disadvantages. For workers: increased fatigue and family adjustment problems. For organizations: work scheduling problems, customer complaints, and possible union opposition.
Organizational Behavior: Chapter 7 211

Study Question 5: What alternative work arrangements are used today?


Flexible working hours.
Gives individuals a daily choice in the timing of

their work commitments.


Advantages:

For workers: shorter commuting time, more leisure time, more job satisfaction, and greater sense of responsibility.
For organizations: less absenteeism, tardiness, and

turnover; more commitment; and higher performance.


Organizational Behavior: Chapter 7 212

Study Question 5: What alternative work arrangements are used today?


Job sharing.
One full-time job is assigned to two or more

persons who divide the work according to agreed-upon hours.


Advantages.
For workers: less burnout and higher energy level. For organizations; attracting talented people who

who would otherwise be unable to work.


Organizational Behavior: Chapter 7 213

Study Question 5: What alternative work arrangements are used today?


Work at home and the virtual office.
Telecommuting. Work done at home or in a remote location via use of computers and advanced communication linkages with a central office or other employment locations. Variants of telecommuting. Flexiplace. Hoteling. Virtual office.
Organizational Behavior: Chapter 7 214

Study Question 5: What alternative work arrangements are used today?


Advantages of telecommuting.
For workers: flexibility, comforts of home, and choice

of work locations consistent with ones lifestyle.


For organizations: costs savings, efficiency, and

improved employee satisfaction.

Disadvantages of telecommuting.
For workers: isolation from co-workers, decreased

identification with work team, and technical difficulties with computer linkages.
Organizational Behavior: Chapter 7 215

Study Question 5: What alternative work arrangements are used today?


Part-time work.
Temporary part-time work.
An employee is classified as temporary and works less than the standard 40-hour work week.

Permanent part-time work.


An employee is classified as a permanent member of the workforce and works less than the standard 40-hour work week.
Organizational Behavior: Chapter 7 216

Study Question 5: What alternative work arrangements are used today?


Advantages of part-time work.
For workers: appeals to people who want to

supplement other jobs or do not want full-time work. For organizations: lower labor costs, ability to better accommodate peaks and valleys of business cycle, and better management of retention quality.

Disadvantages of part-time work.


For workers: added stress and potentially diminished

performance if holding two jobs, failure to qualify for benefits, and lower pay rates than full-time counterparts.
Organizational Behavior: Chapter 7 217

Chapter 8 Study Questions What is goal setting? What is performance appraisal? What are compensation and rewards? What are human resource development and person-job fit?

Organizational Behavior: Chapter 8

218

Study Question 1: What is goal setting?

Organizational Behavior: Chapter 8

219

Study Question 1: What is goal setting? Goal setting guidelines.


Difficult goals are more likely to lead to

higher performance than are less difficult ones. Specific goals are more likely to lead to higher performance than are no goals or vague or general ones. Task feedback, or knowledge of results, is likely to motivate people toward higher performance by encouraging the setting of higher performance goals.
Organizational Behavior: Chapter 8 220

Study Question 1: What is goal setting? Goal setting guidelines (cont.).


Goals are most likely to lead to higher

performance when the people have the abilities and the feeling of self-efficacy required to accomplish them. Goals are most likely to motivate people toward higher performance when they are accepted and there is commitment to them.

Organizational Behavior: Chapter 8

221

Study Question 1: What is goal setting? Goal setting and MBO.


Management by objectives (MBO) is a process

of joint goal setting between a supervisor and a subordinate. MBO is consistent with the goal setting guidelines derived from the Locke and Latham model. MBO establishes performance goals consistent with higher level work unit and organizational objectives.
Organizational Behavior: Chapter 8 222

Study Question 1: What is goal setting?

Organizational Behavior: Chapter 8

223

Study Question 1: What is goal setting?


Potential problems with MBO.
Too much paperwork. in documenting goals and

accomplishments.
Too much emphasis on:
Goal-oriented rewards and punishments. Top-down goals. Goals that are easily stated in objective terms. Individual goals instead of group goals.

MBO may need to be implemented organization-wide.


Organizational Behavior: Chapter 8 224

Study Question 2: What is performance appraisal? Performance appraisal.


Helps both the manager and subordinate

maintain the organization-job-employee characteristics match


The process of systematically evaluating

performance and providing feedback upon which performance adjustments can be made.
Organizational Behavior: Chapter 8 225

Study Question 2: What is performance appraisal? Functions of performance appraisal.


Define the specific job criteria against which

performance will be measured. Measure past job performance accurately. Justify rewards, thereby differentiating between high and low performance. Define ratees needed development experiences.
Organizational Behavior: Chapter 8 226

Study Question 2: What is performance appraisal? Two general purposes of good performance appraisal.
Evaluation.
Concerned with such issues as promotions,

transfers, terminations, and salary increases.

Feedback and development.


Let workers know their status relative to firms

expectations and performance objectives.


Organizational Behavior: Chapter 8 227

Study Question 2: What is performance appraisal? Who does the performance appraisal?
Traditionally done by ratees immediate

superior.
People other than immediate superior may

have better information on certain aspects of ratees performance.


360-degree evaluation provides appraisal

information from multiple perspectives.


Organizational Behavior: Chapter 8 228

Study Question 2: What is performance appraisal? Performance appraisal dimensions and standards.
Output measures.
Quantity of work output. Quality of work output.

Activity measures.
Behavioral measures that are typically obtained

from the evaluators observation and rating.


Organizational Behavior: Chapter 8 229

Study Question 2: What is performance appraisal? Comparative methods of performance appraisal.


Ranking. Raters rank order people from best to worst. Paired comparisons. Raters compare each person with every other person. Forced distribution. Raters place a specific proportion of employees into each performance category.
Organizational Behavior: Chapter 8 230

Study Question 2: What is performance appraisal?


Absolute methods of performance appraisal.
Graphic rating scales. Raters assign scores on a list of dimensions related

to high performance outcomes in a given job.


Critical incident diary records. Rater records incidents of unusual success or

failure in a given performance aspect.


Behaviorally anchored rating scales (BARS). Rater identifies observable job behaviors.
Organizational Behavior: Chapter 8 231

Study Question 2: What is performance appraisal?


Absolute methods of performance appraisal (cont.).
Behavioral observation scale (BOS). Rater rates each observable job behavior on a five-

point frequency scale.


Management by objectives. Jointly established goals used as standards against

which the subordinates performance is evaluated.


Organizational Behavior: Chapter 8 232

Study Question 2: What is performance appraisal?


To be meaningful, an appraisal system must be:
Reliable provide consistent results across time. Valid actually measure people on relevant job

content.

Measurement errors can threaten the reliability or validity of performance appraisals.


Organizational Behavior: Chapter 8 233

Study Question 2: What is performance appraisal?


Measurement errors in performance appraisal.
Halo errors. Raters evaluate on several different dimensions and

give a similar rating for each dimension. Leniency errors. Raters tend to give everyone relatively high ratings. Strictness errors.
Raters tend to give everyone relatively low ratings.

Organizational Behavior: Chapter 8

234

Study Question 2: What is performance appraisal?


Measurement errors in performance appraisal (cont.).
Central tendency errors. Raters lump everyone together around the average

or middle. Low differentiation errors. Raters restrict themselves to a small part of the rating scale. Examples include leniency, strictness, and central tendency errors.
Organizational Behavior: Chapter 8 235

Study Question 2: What is performance appraisal?


Measurement errors in performance appraisal (cont.).
Recency errors. Raters allow recent events to exercise undue

influence on ratings. Personal bias errors. Raters let personal biases, such as stereotypes, unduly influence the ratings. Cultural bias errors. Raters allow cultural differences of employees to influence the performance appraisal.
Organizational Behavior: Chapter 8 236

Study Question 2: What is performance appraisal?


Ways to reduce rating errors in performance appraisals.
Training raters to understand the evaluation process

and recognize errors. Ensuring that raters observe ratees on an ongoing basis. Not having the rater evaluate too many ratees. Ensuring the clarity and adequacy of performance dimensions and standards. Avoiding terms that have different meanings for different raters.
Organizational Behavior: Chapter 8 237

Study Question 2: What is performance appraisal? Guidelines for ensuring the legality of performance appraisal systems.
Base appraisal on job requirements as

reflected in performance standards. Ensure that employees clearly understand the performance standards. Use clearly defined dimensions. Use behaviorally-based dimensions supported by observable evidence.
Organizational Behavior: Chapter 8 238

Study Question 2: What is performance appraisal? Guidelines for ensuring the legality of performance appraisal systems (cont.).
Avoid abstract trait names. Ensure that scale anchors are brief and logically consistent. Ensure that the system is valid and psychometrically sound. Provide an appeal mechanism to handle appraisal disagreements.
Organizational Behavior: Chapter 8 239

Study Question 3: What are compensation and rewards?


Pay as an extrinsic reward.
Pay can help organizations attract and retain

highly capable workers, and help satisfy and motivate these workers. High levels of job performance must be viewed as the path through which high pay can be achieved. Merit pay bases an individuals salary or wage increase on the persons performance.
Organizational Behavior: Chapter 8 240

Study Question 3: What are compensation and rewards?


Pay as an extrinsic reward (cont.).
Merit pay should be based on realistic and

accurate measures of individual work performance. Some people argue that merit pay plans ignore the high degree of task interdependence among employees.

Organizational Behavior: Chapter 8

241

Study Question 3: What are compensation and rewards?


Creative pay practices.
Skill-based pay. Rewards people for acquiring and developing job-

relevant skills. Gain-sharing plans. Give workers an opportunity to share in productivity gains through increased earnings. Profit-sharing plans. Reward employees based on the entire organizations performance
Organizational Behavior: Chapter 8 242

Study Question 3: What are compensation and rewards?


Creative pay practices (cont.).
Employee stock ownership plans (ESOPs). Give company stock to employees or allow them to

purchase it at a price below market value Lump-sum pay increases. Provide wage or salary increase in one or more lump-sum payments. Flexible benefit plans. Allow workers to select benefits according to their individual needs.
Organizational Behavior: Chapter 8 243

Study Question 4: What are human resource development and person-job fit? Human resource development (HRD) and the person-job fit.
HRD and the person-job fit are key

contributing activities in performance management and rewards. Human resource strategic planning provides the foundation for HRD and the person-job fit. Staffing, training, and career planning and development are important functions in HRD and achieving a person-job fit.
Organizational Behavior: Chapter 8 244

Study Question 4: What are human resource development and person-job fit? Job analysis.
The process and procedures used to collect and classify information about tasks the organization needs to complete. Identifies the worker characteristics needed to perform the job. Forms the basis for a job description and job specifications.
Organizational Behavior: Chapter 8 245

Study Question 4: What are human resource development and person-job fit?
Recruitment.
The process of attracting the best qualified individuals

to apply for a given job.


Typical recruitment steps.
Advertisement of a position vacancy. Preliminary contact with potential job candidates. Preliminary screening to obtain a pool of candidates.

Recruitment approaches are external or internal. Realistic job previews.


Organizational Behavior: Chapter 8 246

Study Question 4: What are human resource development and person-job fit? Selection.
A series of steps from initial applicant

screening to final hiring of the new employee. Selection process.


Completing application materials. Conducting an interview. Completing any necessary tests. Doing a background investigation. Deciding to hire or not to hire.
Organizational Behavior: Chapter 8 247

Study Question 4: What are human resource development and person-job fit? Socialization.
Process that adapts employees to the

organizations culture. Occurs during and after completion of the staffing process. Phases of socialization.
Anticipatory socialization. Encounter. Change and acquisition.
Organizational Behavior: Chapter 8 248

Study Question 4: What are human resource development and person-job fit? Training.
A set of activities that provides the

opportunity to acquire and improve job-related skills. Types of training.


On-the-job training involves job instruction while

performing the job in the actual workplace. Off-the-job training commonly involves lectures, videos, and simulations, and increasingly is done through e-training.
Organizational Behavior: Chapter 8 249

Study Question 4: What are human resource development and person-job fit?

Organizational Behavior: Chapter 8

250

Study Question 4: What are human resource development and person-job fit?
Adult life cycle and career stages.
The different problems and prospects of the adult life

cycle affect peoples work and careers. Career stages reflect the different responsibilities and achievements associated with peoples working lives. Life cycle and career stages. Entry and establishment or the provisional adulthood stage. Advancement or the first adulthood stage. Maintenance, withdrawal, and retirement or the second adulthood stage. .
Organizational Behavior: Chapter 8 251

Chapter 9 Study Questions


What is the nature of groups in organizations? What are the stages of group development? What are the foundations of group performance? How do groups make decisions?
Organizational Behavior: Chapter 9 252

Study Question 1: What is the nature of groups in organizations?


A group is a collection of two or more people who work with one another regularly to achieve common goals. In a true group, members are mutually dependent on one another and interact with one another. Hot groups thrive in conditions of crisis and competition.
Organizational Behavior: Chapter 9 253

Study Question 1: What is the nature of groups in organizations?


Effective groups achieve high levels of:
Task performance.
Members attain performance goals regarding quantity,

quality, and timeliness of work results.

Members satisfaction.
Members believe that their participation and experiences are

positive and meet important personal needs.

Team viability.
Members are sufficiently satisfied to continue working

together on an ongoing basis.


Organizational Behavior: Chapter 9 254

Study Question 1: What is the nature of groups in organizations?


How groups help organizations
Groups are good for people. Groups can improve creativity. Groups can make better decisions. Groups can increase commitments to action. Groups help control their members. Groups help offset large organization size.
Organizational Behavior: Chapter 9 255

Study Question 1: What is the nature of groups in organizations?


Situations in which groups are superior to individuals.
When there is no clear expert in a particular

problem or task. When problem solving can be handled by a division of labor and the sharing of information. When creativity and innovation are needed.
Organizational Behavior: Chapter 9 256

Study Question 1: What is the nature of groups in organizations?


Potential benefits for group members.
People learn from each other and share job skills and

knowledge. Groups are important sources of need satisfaction for their members. Members can provide emotional support for each other in times of crisis or pressure. Members contributions can help them experience self-esteem and personal involvement.
Organizational Behavior: Chapter 9 257

Study Question 1: What is the nature of groups in organizations?


Social loafing.
The tendency of people to work less hard in a

group than they would individually. Reasons for social loafing.


Individual contributions are less noticeable in the group context. Some individuals prefer to see others carry the workload.

Organizational Behavior: Chapter 9

258

Study Question 1: What is the nature of groups in organizations?


Ways of preventing social loafing.
Define member roles and tasks to maximize

individual interests.
Raise accountability by identifying

individuals performance contributions to the group.


Link individual rewards to performance

contributions to the group.


Organizational Behavior: Chapter 9 259

Study Question 1: What is the nature of groups in organizations?


Social facilitation.
The tendency for a persons behavior to be

influenced by the presence of others.


Positively affects performance when a person

is proficient on the task.


Negatively affects task performance when the

task is not well-learned.


Organizational Behavior: Chapter 9 260

Study Question 1: What is the nature of groups in organizations?


Formal groups.
Officially designated to serve a specific

organizational purpose. The head of a formal group is responsible for the groups performance and serves a linkingpin role. May be permanent or temporary. Permanent work groups are command groups. Temporary work groups are task groups.
Organizational Behavior: Chapter 9 261

Study Question 1: What is the nature of groups in organizations?


Types of formal groups.
Cross-functional teams or task forces. Engage in special problem-solving efforts

drawing on input of the functional areas. Project teams. Formed to complete a specific task with a well-defined end point. Virtual group. Members work together via computers.
Organizational Behavior: Chapter 9 262

Study Question 1: What is the nature of groups in organizations?


Informal groups.
Emerge without being officially designated by

the organization.
Types of informal groups.
Friendship groups. Interest groups.

Organizational Behavior: Chapter 9

263

Study Question 1: What is the nature of groups in organizations?


Effects of informal groups.
Can help people get their jobs done. Can speed up workflow by supplementing

formal lines of authority.


Can satisfy needs that are thwarted or unmet

by the formal group.


Can provide members with social satisfaction,

security, and a sense of belonging.


Organizational Behavior: Chapter 9 264

Study Question 2: What are the stages of group development?

Organizational Behavior: Chapter 9

265

Study Question 2: What are the stages of group development?


Forming stage.
Initial entry of members to a group. Member challenges.
Getting to know each other. Discovering what is considered acceptable

behavior.
Determining the groups real task. Defining group rules.
Organizational Behavior: Chapter 9 266

Study Question 2: What are the stages of group development?


Storming stage.
A period of high emotionality and tension

among group members. Member challenges.


Hostility and infighting. Formation of coalitions and cliques. Clarification of members expectations. Giving attention to obstacles to group goals. Understanding one anothers interpersonal styles. Finding ways to accomplish group goals while satisfying individual needs.
Organizational Behavior: Chapter 9 267

Study Question 2: What are the stages of group development?


Norming stage.
The point at which the group really begins to

come together as a coordinated unit. Member challenges.


Holding group together by maintaining a positive balance. Letting the desire for group harmony obscure group problems. Being mistaken about reaching ultimate maturity .
Organizational Behavior: Chapter 9 268

Study Question 2: What are the stages of group development?


Performing stage.
Marks the emergence of a mature, organized,

and well-functioning group. Member challenges.


Meeting complex tasks and conflicts in creative

ways. Being motivated by group goals and achieving satisfaction. Continuing to improve relationships and performance. Adapting to changing opportunities and demands.
Organizational Behavior: Chapter 9 269

Study Question 2: What are the stages of group development?

Organizational Behavior: Chapter 9

270

Study Question 2: What are the stages of group development?


Adjourning stage.
A well-integrated group is:
Able to disband when its work is finished. Willing to work together in the future.

Particularly important for temporary groups.

Organizational Behavior: Chapter 9

271

Study Question 3: What are the foundations of group performance?

Organizational Behavior: Chapter 9

272

Study Question 3: What are the foundations of group performance?


Tasks.
Technical demands of a task.
Routineness, difficulty, and information requirements.

Tasks that are complex in technical demands

require unique solutions and more information processing.


Organizational Behavior: Chapter 9 273

Study Question 3: What are the foundations of group performance?


Tasks (cont.).
Social demands of a task.
Relations, ego involvement, and controversies over ends and means.

Tasks that are complex in social demands

involve difficulties in reaching agreement on goals or methods for accomplishing them.


Organizational Behavior: Chapter 9 274

Study Question 3: What are the foundations of group performance?


Goals, rewards, and resources.
Long-term performance relies on:
Appropriate goals. Well-designed reward systems. Adequate resources.

A groups performance can suffer when:


Goals are unclear, unchallenging, or arbitrarily imposed. Goals are focused too much on individuals. Adequate budgets, facilities, good work methods and

procedures, and the best technologies are not available.


Organizational Behavior: Chapter 9 275

Study Question 3: What are the foundations of group performance?


Technology.
Provides the means to get work accomplished. The right technology must be available for the

task at hand.
Workflow technology can affect the way

group members interact.


Organizational Behavior: Chapter 9 276

Study Question 3: What are the foundations of group performance?


Membership characteristics.
A group must have the right skills and

competencies available for task performance and problem solving.


Homogeneous groups may not perform well if they

lack the requisite experiences, skills, and competencies. Heterogeneous groups may perform well if they effectively utilize a variety of experiences, skills, and competencies.
Organizational Behavior: Chapter 9 277

Study Question 3: What are the foundations of group performance?


Membership characteristics (cont.).
Diversity-consensus dilemma.
Increasing diversity among group members makes

it harder for group members to work together, even though the diversity itself expands the skills and perspectives available for problem solving.

Organizational Behavior: Chapter 9

278

Study Question 3: What are the foundations of group performance?


Membership characteristics (cont.).
FIRO-B theory. Identifies individual differences in how people relate to one another in groups. Based on needs to express and receive feelings of inclusion, control, and affection. Groups whose members have compatible characteristics are likely to be more effective. Groups whose members have incompatible characteristics are likely to be less effective.
Organizational Behavior: Chapter 9 279

Study Question 3: What are the foundations of group performance?


Membership characteristics (cont.).
Status. A persons relative rank, prestige, or standing in a group. Status congruence. Occurs when a persons position within the group is equivalent in status to positions held outside the group. When status incongruence is present, problems will likely occur.
Organizational Behavior: Chapter 9 280

Study Question 3: What are the foundations of group performance?


Group size.
Can make a difference in a groups

effectiveness. As group size increases, performance and member satisfaction increase up to a point. As a group size continues to grow, communication and coordination problems often set in, and performance and satisfaction may decline. Problem-solving groups should have 5 to 7 members.
Organizational Behavior: Chapter 9 281

Study Question 3: What are the foundations of group performance?


Group dynamics concern the forces operating within groups that affect the way members relate to and work with one another. From a systems perspective, the throughputs for a group or team are group dynamics.
Organizational Behavior: Chapter 9 282

Study Question 3: What are the foundations of group performance?


What goes on within groups.
Work group behaviors.
Required behaviors those that are formally

defined and expected by the organization.


Emergent behaviors those that group members

display in addition to what the organization asks of them.


Organizational Behavior: Chapter 9 283

Study Question 3: What are the foundations of group performance?


What goes on within groups.
Member relationships.
Activities the things people do or the actions

they take.
Interactions interpersonal communications and

contacts.
Sentiments the feelings, attitudes, beliefs, or

values held by group members.


Organizational Behavior: Chapter 9 284

Study Question 3: What are the foundations of group performance?


What goes on between groups.
Intergroup dynamics. The dynamics that take place between two or more groups. Ways to achieve positive intergroup dynamics. Refocusing members on a common enemy or goal. Negotiating directly. Training members to work more cooperatively. Refocusing rewards on contributions to the total organization and how much groups help each other.
Organizational Behavior: Chapter 9 285

Study Question 3: What are the foundations of group performance?

Organizational Behavior: Chapter 9

286

Study Question 4: How do groups make decisions?


How groups make decisions.
Decision by lack of response.
One idea after another is suggested without any discussion-

taking place; when the group finally accepts the idea, all others have been bypassed and discarded by simple lack of response rather than by critical evaluation.

Decision by authority rule.


The chairperson, manager, or leader makes a decision for the

group.

Decision by minority rule.


Two or three people are able to dominate or railroad the

group into making a decision to which they agree.


Organizational Behavior: Chapter 9 287

Study Question 4: How do groups make decisions?


How groups make decisions (cont.).
Decision by majority rule.
Formal voting may take place, or members may be polled to

find the majority viewpoint.

Decision by consensus.
Discussion leads to one alternative being favored by most

members and the other members agree to support it.

Decision by unanimity.
All group members agree totally on the course of action to be

taken.
Organizational Behavior: Chapter 9 288

Study Question 4: How do groups make decisions?


Potential advantages of group decision making.
More knowledge and expertise is applied to

solve the problem. A greater number of alternatives are examined. The final decision is better understood and accepted by all group members. More commitment among all group members to make the final decision work.
Organizational Behavior: Chapter 9 289

Study Question 4: How do groups make decisions?


Potential disadvantages of group decision making.
Individuals may feel compelled to conform to

the apparent wishes of the group.


The groups decision may be dominated by

one individual or a small coalition.


Group decisions usually take longer to make.
Organizational Behavior: Chapter 9 290

Study Question 4: How do groups make decisions?


Ways to avoid groupthink.
Assign the role of critical evaluator to each

group member. Have the leader avoid seeming partial to one course of action. Create subgroups that each work on the same problem. Have group members discuss issues with outsiders and report back.
Organizational Behavior: Chapter 9 291

Study Question 4: How do groups make decisions?


Ways to avoid groupthink (cont.).
Invite outside experts to observe and react to

group processes. Assign someone to be a devils advocate at each meeting. Write alternative scenarios for the intentions of competing groups. Hold second-chance meetings after consensus is apparently achieved.
Organizational Behavior: Chapter 9 292

Study Question 4: How do groups make decisions?


How to improve group decisions.
Brainstorming. Group members actively generate as many ideas and alternatives as possible, and they do so relatively quickly and without inhibitions.

Nominal group technique.


Puts people in small groups of six to seven members and asks everyone to respond individually and in writing to a nominal question.
Organizational Behavior: Chapter 9 293

Study Question 4: How do groups make decisions?


How to improve group decisions (cont.).
Delphi technique.
Involves generating decision-making alternatives

through a series of survey questionnaires.

Computer-mediated decision making.


Group decision making takes place across great distances with the aid of group decision support systems.
Organizational Behavior: Chapter 9 294

Chapter 10 Study Questions


What is a the nature of teams and

teamwork? What is team building? How does team building improve performance? How do teams contribute to the highperformance workplace?
Organizational Behavior: Chapter 10 295

Study Question 1: What is the nature of team and teamwork?


A team is a small group of people with complementary skills, who work actively together to achieve a common purpose for which they hold themselves collectively accountable. Teams are one of the major forces behind revolutionary changes in contemporary organizations.
Organizational Behavior: Chapter 10 296

Study Question 1: What is the nature of team and teamwork?


Types of teams.
Teams that recommend things. Established to study specific problems and recommend solutions to them. Teams that run things. Have formal responsibility for leading other groups. Teams that make or do things. Functional groups that perform ongoing tasks.
Organizational Behavior: Chapter 10 297

Study Question 1: What is the nature of team and teamwork?


Teamwork occurs when group members actively work together in such a way that all their respective skills are well utilized to achieve a common purpose.

Organizational Behavior: Chapter 10

298

Study Question 1: What is the nature of team and teamwork?


Characteristics of high performance teams.
They have strong core values. They turn a general sense of purpose into

specific performance objectives.


They have the right mix of skills. They possess creativity.

Organizational Behavior: Chapter 10

299

Study Question 1: What is the nature of team and teamwork?


Characteristics of teams with homogeneous membership.
Members are similar with respect to such variables as

age, gender, race, experience, ethnicity, and culture.


Members can quickly build social relations and

engage in the interactions needed for teamwork.


Homogeneity may limit the team in terms of ideas,

viewpoints, and creativity.


Organizational Behavior: Chapter 10 300

Study Question 1: What is the nature of team and teamwork?


Characteristics of teams with heterogeneous membership.
Members are diverse in demography, experiences, life

styles, and cultures, among other variables.


Diversity can help improve team problem solving and

increase creativity.
Diversity among team members may create

performance difficulties early in the teams life or stage of development.


Organizational Behavior: Chapter 10 301

Study Question 1: What is the nature of team and teamwork?


Characteristics of teams with heterogeneous membership (cont.).
Enhanced performance potential is possible once

short-run struggles are resolved.


Diversity can provide great advantages for high-

performance organizations.

Organizational Behavior: Chapter 10

302

Study Question 2: What is team building?


Work groups and teams must master challenges as they pass through the various stages of group development. Team building is a sequence of planned activities designed to gather and analyze data on the functioning of a group and to initiate changes designed to improve teamwork and increase group effectiveness.
Organizational Behavior: Chapter 10 303

Study Question 2: What is team building?

Organizational Behavior: Chapter 10

304

Study Question 2: What is team building?


Approaches to team building.
Formal retreat approach. Team building occurs during an offsite retreat. Continuous improvement approach. The manager, team leader, or members take responsibility for ongoing team building. Outdoor experience approach. Members engage in physically challenging situations that require teamwork.
Organizational Behavior: Chapter 10 305

Study Question 3: How does team building improve performance? New members are concerned about issues of:
Participation. Goals. Control. Relationships.
Organizational Behavior: Chapter 10 306

Study Question 3: How does team building improve performance? Behavior profiles of coping with individual entry problems.
Tough battler. Friendly helper.

Objective thinker.

Organizational Behavior: Chapter 10

307

Study Question 3: How does team building improve performance?


Task and maintenance leadership.
Sustained high performance requires meeting both

task needs and maintenance needs.


High-performance teams require distributed

leadership.
Distributive leadership is the sharing among team

members of the responsibilities for task and maintenance contributions.


Organizational Behavior: Chapter 10 308

Study Question 3: How does team building improve performance?

Organizational Behavior: Chapter 10

309

Study Question 3: How does team building improve performance?


Groups members should avoid the following disruptive behaviors:
Being overly aggressive toward other members. Withdrawing and refusing to cooperate with others. Horsing around when there is work to be done. Using the group as a forum for self-confession. Talking too much about irrelevant matters. Trying to compete for attention and recognition.
Organizational Behavior: Chapter 10 310

Study Question 3: How does team building improve performance?


Roles and role dynamics.
A role is a set of expectations associated with

a job or position on a team. Role ambiguity occurs when a person is uncertain about his/her role. Role overload occurs when too much is expected and the person feels overwhelmed with work. Role underload occurs when too little is expected and the person feels underutilized.
Organizational Behavior: Chapter 10 311

Study Question 3: How does team building improve performance?


Roles and role dynamics (cont.).
Role conflict occurs when a person is

unable to meet conflicting expectations. Forms of role conflict.


Intrasender role conflict. Intersender role conflict. Person-role conflict. Interrole conflict.
Organizational Behavior: Chapter 10 312

Study Question 3: How does team building improve performance?

Organizational Behavior: Chapter 10

313

Study Question 3: How does team building improve performance?


Norms represent beliefs about how group or team members are expected to behave. Norms are rules or standards of conduct. Managers and leaders should help their groups adopt positive norms that support organizational goals.
Organizational Behavior: Chapter 10 314

Study Question 3: How does team building improve performance?


Key norms that can have positive or negative implications.

Performance norms. Ethics norms. Organizational and personal pride norms. High-achievement norms. Support and helpfulness norms. Improvement and change norms.
Organizational Behavior: Chapter 10 315

Study Question 3: How does team building improve performance?


Cohesiveness is the degree to which members are attached to and motivated to remain a part of the team High team cohesiveness occurs when:

Members are similar in age, attitudes, needs, and backgrounds. Group size is small. Members respect each others competencies. Members agree on common goals. Members work on interdependent tasks. Groups are physically isolated from others. Groups experience performance success or crisis.
Organizational Behavior: Chapter 10 316

Study Question 3: How does team building improve performance?

Organizational Behavior: Chapter 10

317

Study Question 3: How does team building improve performance?

Organizational Behavior: Chapter 10

318

Study Question 4: How do teams contribute to the high-performance workplace?

Problem-solving teams.
Employee involvements teams include a wide

variety of teams whose members meet regularly to collectively examine important workplace issues. Quality circle.
A special type of employee involvement team. Team meets periodically to address problems

relating to quality, productivity, or cost.


Organizational Behavior: Chapter 10 319

Study Question 4: How do teams contribute to the high-performance workplace?

Cross-functional teams.
Consist of members representing different

functional departments or work units.


Used to overcome functional silos problem. Used to solve problems with a positive

combination of functional expertise and integrative systems thinking.


Organizational Behavior: Chapter 10 320

Study Question 4: How do teams contribute to the high-performance workplace?

Advantages of virtual teams.


Cost-effectiveness and speed where members

are unable to meet easily face-to-face. Computer power fulfills typical team needs for information processing and decision making. Communication is possible among people separated by great distances. Interaction and decision making are focused on facts and objective information rather than emotional considerations.
.
Organizational Behavior: Chapter 10 321

Study Question 4: How do teams contribute to the high-performance workplace?

Disadvantages of virtual teams.


The lack of personal contact between team

members.
Group decisions are made in a limited social

context.

Organizational Behavior: Chapter 10

322

Study Question 4: How do teams contribute to the high-performance workplace?

Organizational Behavior: Chapter 10

323

Study Question 4: How do teams contribute to the high-performance workplace?

Advantages of self-managing teams.


Productivity and quality improvements. Production flexibility and faster response to

technological change. Reduced absenteeism and turnover. Improved work attitudes and quality of work life.

Organizational Behavior: Chapter 10

324

Study Question 4: How do teams contribute to the high-performance workplace? Disadvantages of self-managing teams.
Structural changes in job classifications and

management levels eliminate the need for first-line supervisors.


Managers must learn to deal with teams rather than

individuals.
Supervisors who are displaced by self-managing

teams may feel threatened.


Organizational Behavior: Chapter 10 325

Chapter 11 Study Questions


What is leadership and how does it differ from management? What are situational contingency approaches to leadership ? What are attributional approaches to leadership? What are some emerging leadership perspectives and why are they especially important in todays organizations?
Organizational Behavior: Chapter 11 326

Study Question 1: What is leadership and how does it differ from management?
Management promotes stability or enables the organization to run smoothly. Leadership promotes adaptive or useful changes. Persons in managerial positions may be involved with both management and leadership. Both management and leadership are needed for organizational success.
Organizational Behavior: Chapter 11 327

Study Question 1: What is leadership and how does it differ from management? Leadership is a special case of interpersonal influence that gets an individual or group to do what the leader or manager wants done. Forms of leadership.
Formal leadership. Informal leadership.
Organizational Behavior: Chapter 11 328

Study Question 1: What is leadership and how does it differ from management? Approaches to leadership.
Trait and behavioral perspectives. Situational contingency perspectives. Attributional perspectives. New leadership perspectives.

Organizational Behavior: Chapter 11

329

Study Question 1: What is leadership and how does it differ from management? Trait theories.
Assume that traits play a key role in: Differentiating between leaders and nonleaders. Predicting leader or organizational outcomes. Great person-trait approach. Earliest approach in studying leadership. Tried to determine the traits that characterized great leaders.
Organizational Behavior: Chapter 11 330

Study Question 1: What is leadership and how does it differ from management?

Pick up Figure 11.1 from the textbook.

Organizational Behavior: Chapter 11

331

Study Question 1: What is leadership and how does it differ from management? Behavioral theories.
Assume that leader behaviors are crucial for

explaining performance and other organizational outcomes. Focus on leader behaviors rather than traits. Major behavioral theories.

Michigan leadership studies. Ohio State leadership studies. Leadership Grid. Leader-Member Exchange (LMX) theory.
Organizational Behavior: Chapter 11 332

Study Question 1: What is leadership and how does it differ from management? Michigan leadership studies.
Employee-centered supervisors. Place strong emphasis on subordinates welfare. Production-centered supervisors. Place strong emphasis on getting the work done. Employee-centered supervisors have more

productive work groups than productioncentered supervisors.


Organizational Behavior: Chapter 11 333

Study Question 1: What is leadership and how does it differ from management? Ohio State leadership studies.
Consideration. Concerned with peoples feelings and making things pleasant for the followers. Initiating structure. Concerned with defining task requirements and other aspects of the work agenda. Effective leaders should be high on both

consideration and initiating structure.


Organizational Behavior: Chapter 11 334

Study Question 1: What is leadership and how does it differ from management? Leadership Grid.
Developed by Robert Blake and Jane Mouton. Built on dual emphasis of consideration and

initiating structure. A 9 x 9 Grid (matrix) reflecting levels of concern for people and concern for task.
1 reflects minimum concern. 9 reflects maximum concern.
Organizational Behavior: Chapter 11 335

Study Question 1: What is leadership and how does it differ from management? Leadership Grid (cont.).
Five key Grid combinations. 1/1 low concern for production, low concern for people. 1/9 low concern for production, high concern for people. 9/1 high concern for production, low concern for people. 5/5 moderate concern for production, moderate concern for people. 9/9 high concern for production, high concern for people.
Organizational Behavior: Chapter 11 336

Study Question 1: What is leadership and how does it differ from management? Leader-Member Exchange (LMX) theory.
Focuses on the quality of the working

relationship between leaders and followers. LMX dimensions determine followers membership in leaders in group or out group. Different relationships with in group and out group.
Organizational Behavior: Chapter 11 337

Study Question 2: What are situational contingency approaches to leadership? Leader traits and behaviors can act in conjunction with situational contingencies. The effects of leader traits are enhanced by their relevance to situational contingencies. Major situational contingency theories.

Fiedlers leadership contingency theory. Fiedlers cognitive resource theory. Houses path-goal theory of leadership. Hersey and Blanchards situational leadership model.
Organizational Behavior: Chapter 11 338

Study Question 2: What are the situational contingency approaches to leadership?

Key variables in Fiedlers contingency model.


Situational control. The extent to which a leader can determine what his or her group is going to do as well as the outcomes of the groups actions and decisions. Is a function of:
Leader-member relations. Task structure. Position power.
Organizational Behavior: Chapter 11 339

Study Question 2: What are situational contingency approaches to leadership?

Key variables in Fiedlers contingency model (cont.).


Least preferred co-worker (LPC) score reflects

a persons leadership style.


High-LPC leaders have a relationship-motivated

style.
Low-LPC leaders have a task-motivated style.
Organizational Behavior: Chapter 11 340

Study Question 2: What are situational contingency approaches to leadership?

Organizational Behavior: Chapter 11

341

Study Question 2: What are situational contingency approaches to leadership?

Fiedlers cognitive resource theory.


A leaders use of directive or nondirective

behavior depends on:


The leaders or subordinate group members ability

or competency. Stress. Experience. Group support of the leader.

Leader directiveness is most helpful for

performance when the leader is competent, relaxed, and supported.


Organizational Behavior: Chapter 11 342

Study Question 2: What are situational contingency approaches to leadership?

Houses path-goal theory of leadership.


Rooted in the expectancy model of motivation. Emphasizes how a leader influences

subordinates perceptions of both work goals and personal goals and the links, or paths, found between these two sets of goals.
Organizational Behavior: Chapter 11 343

Study Question 2: What are situational contingency approaches to leadership?

Organizational Behavior: Chapter 11

344

Study Question 2: What are situational contingency approaches to leadership?

Path-goal theory predictions.


Directive leadership will have a positive

impact on subordinates when tasks are ambiguous and the opposite effect when tasks are clear. Supportive leadership will increase the satisfaction of subordinates who work on tasks that are highly repetitive, unpleasant, stressful, or frustrating.
Organizational Behavior: Chapter 11 345

Study Question 2: What are situational contingency approaches to leadership?

Path-goal theory predictions (cont.).


Achievement-oriented leadership will

encourage subordinates to strive for higher performance standards and to have more confidence in their ability to meet challenging goals when subordinates are working at ambiguous, nonrepetitive tasks. Participative leadership will promote satisfaction on nonrepetitive tasks that allow for the ego involvement of subordinates.
Organizational Behavior: Chapter 11 346

Study Question 2: What are situational contingency approaches to leadership?

Organizational Behavior: Chapter 11

347

Study Question 2: What are situational contingency approaches to leadership?

Organizational Behavior: Chapter 11

348

Study Question 3: What are attributional approaches to leadership?


Attribution theory provides a competing perspective to the traditional leadership theory assumption that leadership and its substantive effects can be identified and measured objectively. Attribution theory suggests that leadership is influenced by attempts to understand causes of and assess responsibilities for behavior.
Organizational Behavior: Chapter 11 349

Study Question 3: What are attributional approaches to leadership? Leadership prototypes.


Peoples mental image of what a model leader

should look like. Mix of specific and general characteristics. Prototypes may differ by country and national culture. The closer that a leaders behavior matches the prototype held by the followers, the more favorable the leaders relations and key outcomes.
Organizational Behavior: Chapter 11 350

Study Question 3: What are attributional approaches to leadership? Exaggeration of the leadership difference.
Top leaders of organizations have little impact

on profits and effectiveness compared to environmental and industry forces.


Much of the impact of top leaders is symbolic. The romance of leadership refers to people

attributing romantic, almost magical, qualities to leadership.


Organizational Behavior: Chapter 11 351

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations?

Charismatic approaches to leadership.


Charismatic leaders, by force of their personal

abilities, can have a profound and extraordinary effect on followers. Characteristics of charismatic leaders include:
High need for power. High feelings of self-efficacy. Conviction in the moral rightness of their beliefs.
Organizational Behavior: Chapter 11 352

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations?

Dark side versus bright side of charismatic leadership.


Dark side. Emphasizes personalized power. Leaders focus on themselves. Bright side. Emphasizes socialized power. Leaders empower followers.
Organizational Behavior: Chapter 11 353

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations? Conger and Kanungos three-stage charismatic leadership model.
Stage 1: the leader critically evaluates the status quo. Stage 2: the leader formulates and articulates future

goals and a idealized future vision.


Stage 3: the leader shows how the goals and vision

can be achieved.
Organizational Behavior: Chapter 11 354

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations?

Organizational Behavior: Chapter 11

355

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations?

Transactional leadership.
Involves leader-follower exchanges necessary

for achieving routine performance that is agreed upon by leaders and followers. Leader-follower exchanges involve:

Use of contingent rewards. Active management by exception. Passive management by exception. Abdicating responsibilities and avoiding decisions.
Organizational Behavior: Chapter 11 356

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations?

Transformational leadership.
Leaders broaden and elevate followers

interests, generate awareness and acceptance of the groups mission, and stir followers to look beyond self-interests. Dimensions of transformational leadership.

Charisma. Inspiration. Intellectual stimulation. Individualized consideration.


Organizational Behavior: Chapter 11 357

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations? Leadership in self-managing work teams.
Leaders provide resources or act as liaisons with other

units but without the trappings of authority associated with traditional first-line supervisors. Conditions for creating and maintaining team performance.
Efficient, goal-directed effort. Adequate resources. Competent, motivated performance. A productive, supportive climate. Commitment to continuous improvement and adaptation.
Organizational Behavior: Chapter 11 358

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations?

Can people be trained in the new leadership?


People can be trained to adopt new leadership

approaches.
Leaders can devise improvement programs to

address their weaknesses and work with trainers to develop their leadership skills.
Leaders can be trained in charismatic skills.
Organizational Behavior: Chapter 11 359

Study Question 4: What are some emerging leadership perspectives and why are they especially important in todays organizations?

Is new leadership always good?


Not always good. Dark-side charismatics can have negative

effects on followers. Not always needed. Needs to be used in conjunction with traditional leadership. Applies at all levels of organizational leadership.
Organizational Behavior: Chapter 11 360

Chapter 12 Study Questions


What are power and influence in an organization? How are power, obedience, and formal authority intertwined in an organization? What is empowerment? What is organizational politics?
Organizational Behavior: Chapter 12 361

Study Question 1: What are power and influence in an organization?


Power.
The ability to get someone to do something

you want done. The ability to make things happen in the way you want.

Influence.
Expressed by others behavioral response to

your exercise of power.


Organizational Behavior: Chapter 12 362

Study Question 1: What are power and influence in an organization?


Position power derives from a persons position in the organizational hierarchy. Types of position power.
Reward power. Coercive power. Legitimate power. Process power. Information power. Representative power.
Organizational Behavior: Chapter 12 363

Study Question 1: What are power and influence in an organization?


Reward power.
The extent to which a manager can use extrinsic and

intrinsic rewards to control other people.

Coercive power.
The extent to which a manager can deny desired

rewards and administer punishment to control other people.


Organizational Behavior: Chapter 12 364

Study Question 1: What are power and influence in an organization?


Legitimate power.
The extent to which a manager can use subordinates

internalized values or beliefs that the boss has the right of command to control other people.

Process power.
The control over methods of production and analysis

that a manager has due to being in a position to influence how inputs are transformed into outputs.
Organizational Behavior: Chapter 12 365

Study Question 1: What are power and influence in an organization?


Information power.
The access to and/or control of information. .

Representative power.
The formal right conferred by the firm to speak for a

potentially important group composed of individuals across departments or outside the firm.

Organizational Behavior: Chapter 12

366

Study Question 1: What are power and influence in an organization?


Personal power derives from individual sources. Types of personal power.
Expert power. Rational persuasion. Referent power.
Organizational Behavior: Chapter 12 367

Study Question 1: What are power and influence in an organization?


Expert power.
The ability to control another persons behavior

through the possession of knowledge, experience, or judgment that the other person does not have but needs.

Rational persuasion.
The ability to control another persons behavior by

convincing the other person of the desirability of a goal and a reasonable way of achieving it.
Organizational Behavior: Chapter 12 368

Study Question 1: What are power and influence in an organization?


Referent power.
The ability to control anothers behavior because the

person wants to identify with the power source.

Organizational Behavior: Chapter 12

369

Study Question 1: What are power and influence in an organization?

Organizational Behavior: Chapter 12

370

Study Question 1: What are power and influence in an organization?


Ways to build position power.
Demonstrating work unit relevance to

organizational goals and needs.


Increasing task relevance of ones own

activities and work units activities.


Attempting to define tasks so they are difficult

to evaluate.
Organizational Behavior: Chapter 12 371

Study Question 1: What are power and influence in an organization?


Ways to build personal power.
Building expertise. Advanced training and education, participation in professional associations, and project involvement. Learning political savvy. Learning ways to negotiate, persuade, and understand goals and means that others accept. Enhancing likeability. Pleasant personality characteristics, agreeable behavior patterns, and attractive personal appearance.
Organizational Behavior: Chapter 12 372

Study Question 1: What are power and influence in an organization?


Ways that managers increase the visibility of their job performance.
Expanding contacts with senior people. Making oral presentations of written work. Participating in problem-solving task forces. Sending out notices of accomplishment. Seeking opportunities to increase name

recognition.
Organizational Behavior: Chapter 12 373

Study Question 1: What are power and influence in an organization?


Controlling decision premises.
Executives attempt to control, or at least

influence, decision premises. A decision premise is a basis for defining the problem and for selecting among alternatives. Executives who want to increase their power will make their goals and needs clear and bargain effectively.
Organizational Behavior: Chapter 12 374

Study Question 1: What are power and influence in an organization?


Common techniques for exercising relational influence.

Reason. Friendliness. Coalition. Bargaining. Assertiveness. Higher authority. Sanctions.


Organizational Behavior: Chapter 12 375

Study Question 2: How are power, obedience, and formal authority intertwined in an organization?

Important practical issues in the exercise of power and formal authority.


Why should subordinates respond to a

managers authority (or right to command)?


Given that subordinates are willing to obey,

what determines the limits of obedience?


Organizational Behavior: Chapter 12 376

Study Question 2: How are power, obedience, and formal authority intertwined in an organization? The Milgram experiments.
Designed to determine the extent to which people

obey the commands of an authority figure, even if they believe they are endangering the life of another person. The results indicated that the majority of the experimental subjects would obey the commands of the authority figure. Basic conclusion was that people tend to comply with and be obedient to authority.
Organizational Behavior: Chapter 12 377

Study Question 2: How are power, obedience, and formal authority intertwined in an organization?

For a directive from a superior to be accepted as authoritative, the subordinate:


Can and must understand it. Must feel mentally and physically capable of

carrying it out. Must believe that it is consistent with the organizations purpose. Must believe that it is consistent with his or her personal interests.
Organizational Behavior: Chapter 12 378

Study Question 2: How are power, obedience, and formal authority intertwined in an organization?

Zone of indifference.
In exchange for certain inducements,

subordinates recognize the authority of the organization and its managers to direct their behavior in certain ways. A zone of indifference is the range of authoritative requests to which a subordinate is willing to respond without subjecting the directives to critical evaluation or judgment.
Organizational Behavior: Chapter 12 379

Study Question 2: How are power, obedience, and formal authority intertwined in an organization?

Organizational Behavior: Chapter 12

380

Study Question 3: What is empowerment? Empowerment.


The process by which managers help others to

acquire and use the power needed to make decisions affecting themselves and their work.
Provides the foundation for self-managing work teams and other employee involvement groups. Empowerment emphasizes the ability to make things happen.
Organizational Behavior: Chapter 12 381

Study Question 3: What is empowerment? Changing position power.


Moving power down the hierarchy alters the

existing pattern of position power.


Changing this pattern raises the following

important questions:
Can empowered individuals give rewards and

sanctions based on task accomplishment?


Has their new right to act been legitimized with

formal authority?
Organizational Behavior: Chapter 12 382

Study Question 3: What is empowerment? Expanding the zone of indifference.


Management needs to recognize the current

zone of indifference and systematically move to expand it.


Management should show how empowerment

will benefit people and provide the needed inducement.


.
Organizational Behavior: Chapter 12 383

Study Question 3: What is empowerment? Power as an expanding pie.


Employees need to be trained to expand their

power and their new influence potential.


The key is to change from a view stressing

power over others to one emphasizing the use of power to get things done.

Organizational Behavior: Chapter 12

384

Study Question 3: What is empowerment? Power as an expanding pie.


Clearer definition of roles and responsibilities

helps managers empower others.


All mangers need to emphasize different ways

of exercising influence.
Special support may be needed for individuals

to become comfortable.
Organizational Behavior: Chapter 12 385

Study Question 4: What is organizational politics? Machiavellian tradition of organizational politics.


Emphasizes self-interest and the use of

nonsanctioned means. Organizational politics is defined as the management of influence to obtain ends not sanctioned by the organization or to obtain sanctioned ends through nonsanctioned influence means.
Organizational Behavior: Chapter 12 386

Study Question 4: What is organizational politics? Alternate tradition of organizational politics.


Politics is a necessary function resulting from

differences in the self-interests of individuals. Politics is the art of creative compromise among competing interests. Politics is the use of power to develop socially acceptable ends and means that balance individual and collective interests.
Organizational Behavior: Chapter 12 387

Study Question 4: What is organizational politics?

Organizational Behavior: Chapter 12

388

Study Question 4: What is organizational politics? Subunit power.


Line units are typically more powerful than

are staff groups. Units toward the top of the organizational hierarchy are often more powerful than those toward the bottom. Power differentials are not as pronounced among units at or near the same level in an organization.
Organizational Behavior: Chapter 12 389

Study Question 4: What is organizational politics? Political actions for influencing lateral, intergroup relationships.
Workflow linkages. Service linkages. Advisory linkages. Auditing linkages. Approval linkages.
Organizational Behavior: Chapter 12 390

Study Question 4: What is organizational politics?


Important aspects of corporate political strategy.
Absence of a political strategy can be damaging. Corporate political strategy should be targeted toward

turning the government from a regulator against industry to a protector of it.


Need to make decisions about when and how to get

involved in the public policy processes.


Organizational Behavior: Chapter 12 391

Study Question 4: What is organizational politics?


Avoidance is quite common where the employee must risk being wrong or where actions may yield a sanction. Common techniques for avoiding action and risk taking.
Working to the rules. Playing dumb. Depersonalization. Stalling.
Organizational Behavior: Chapter 12 392

Study Question 4: What is organizational politics?


Common techniques for redirecting accountability and responsibility.
Passing the buck. Buffing (or rigorous documentation). Preparing a blind memo. Rewriting history. Redirecting.
Scapegoating. Blaming the problem on uncontrollable events. Escalating commitment.
Organizational Behavior: Chapter 12 393

Study Question 4: What is organizational politics?


Defending turf.
Defending turf is a time-honored tradition in most

large organizations.
Defending turf results when:
Managers seek to increase their power by expanding the jobs

their groups perform.


Competing interests exist among various departments and

groups.
Organizational Behavior: Chapter 12 394

Study Question 4: What is organizational politics? Agency theory.


An important power problem arises from the

separation of owners and managers.


Managers are agents of the owners. Public corporations can function effectively

even though its managers are self-interested.


Organizational Behavior: Chapter 12 395

Study Question 4: What is organizational politics? Key arguments of agency theory.


By protecting stockholder interests, all the

interests of society are served.


Stockholders have a clear interest in greater

returns.
Managers are self-interested and must be

controlled.
Organizational Behavior: Chapter 12 396

Study Question 4: What is organizational politics? Types of controls instituted for agents.
Pay plan incentives that align the interests of

management and stockholders.


The establishment of a strong, independent

board of directors.
Stockholders with a large stake in the firm

taking an active role on the board.


Organizational Behavior: Chapter 12 397

Study Question 4: What is organizational politics?


Resource dependencies.
The firms need for resources that are controlled by

others.

The resource dependence of an organization increases as:


Needed resources become more scarce. Outsiders have more control over needed resources. There are fewer substitutes for a particular type of

resource controlled by a limited number of outsiders.


Organizational Behavior: Chapter 12 398

Study Question 4: What is organizational politics?


Organizational governance.
The pattern of authority, influence, and acceptable

managerial behavior established at the top of the organization. Organizational governance establishes the following: What is important. How issues will be defined. Who should and should not be involved in key choices Boundaries for acceptable implementation.
Organizational Behavior: Chapter 12 399

Study Question 4: What is organizational politics? Negative views of organizational governance.


Unbalanced organizational governance by

some United States corporations may limit their ability to manage global operations effectively. Organizational governance is too closely tied to the short-term interests of stockholders and the pay of the CEO.
Organizational Behavior: Chapter 12 400

Study Question 4: What is organizational politics?


Positive views of organizational governance.
The governance of U.S. firms extends well beyond the

limited interests of the owners. Organization governance should be based on three ethical criteria. When the three ethical criteria cannot be fulfilled, the criterion of overwhelming factors should be invoked. Choosing to be ethical often involves considerable personal sacrifice.
Organizational Behavior: Chapter 12 401

Chapter 13 Study Questions


What is the nature of communication in organizations? What are the essentials of interpersonal communication? What are the barriers to effective communication? What are current issues in organizational communication?
Organizational Behavior: Chapter 13 402

Study Question 1: What is the nature of communication in organizations?

Organizational Behavior: Chapter 13

403

Study Question 1: What is the nature of communication in organizations?


Feedback and communication.
Feedback is the process through which the

receiver communicates with the sender by returning another message. Giving feedback often is associated with one or more persons communicating an evaluation of what another person has said or done. 360-degree feedback.
Organizational Behavior: Chapter 13 404

Study Question 1: What is the nature of communication in organizations?


Guidelines for effective constructive feedback.
Give feedback directly and in a spirit of mutual trust. Be specific, not general; use clear examples. Give feedback when the receiver is most ready to

accept it. Be accurate; check validity with others. Focus on things that the receiver can control. Limit how much feedback the receiver gets at one time.
Organizational Behavior: Chapter 13 405

Study Question 1: What is the nature of communication in organizations?


Communication channels.
Formal channels.
Follow the chain of command established by an

organizations hierarchy of authority.

Informal channels.
Do not follow an organizations hierarchy of

authority.
The grapevine is an informal channel through

which rumors and unofficial information pass.


Organizational Behavior: Chapter 13 406

Study Question 1: What is the nature of communication in organizations?


Channel richness.
The capacity of a communication channel to convey

information effectively.
Richest channels face-to-face communication. Moderately rich channels telephone, electronic chat

rooms, E-mail, written memos, and letters.


Leanest channels posted notices and bulletins.
Organizational Behavior: Chapter 13 407

Study Question 1: What is the nature of communication in organizations?


Organizational communication is the specific process through which information moves and is exchanged throughout an organization. Information flows:
Through formal and informal structures. Downward, upward, and laterally.
Organizational Behavior: Chapter 13 408

Study Question 1: What is the nature of communication in organizations?

Organizational Behavior: Chapter 13

409

Study Question 2: What are the essentials of interpersonal communication? Effective and efficient communication.
Effective communication.
The accuracy of communication.

Efficient communication.
The cost of communication.

Effectiveness does not guarantee efficiency or

vice versa.
Organizational Behavior: Chapter 13 410

Study Question 2: What are the essentials of interpersonal communication?


Nonverbal communication. Occurs through facial expressions, body position, eye contact, and other physical gestures. Gives clues to what a person is really thinking. Two important aspects of nonverbal communication.
Kinesics the study of gestures and body

postures. Proxemics the study of how space is utilized.


Organizational Behavior: Chapter 13 411

Study Question 2: What are the essentials of interpersonal communication? Active listening.
Ability to listen well is a distinct asset. Everyone needs to develop good skills in

active listening.
Active listening is the ability to help the

source of a message say what he or she really means.


Organizational Behavior: Chapter 13 412

Study Question 2: What are the essentials of interpersonal communication? Guidelines for active listening.
Listen for content. Listen for feelings. Respond to feelings. Note all cues. Reflect back.
Organizational Behavior: Chapter 13 413

Study Question 2: What are the essentials of interpersonal communication? Cross-cultural communication.
Ethnocentrism. The tendency to believe that ones culture and its values are superior to those of others. Cross-cultural communication challenges. Language differences. Use of gestures. One of the best ways to understand cultural

differences is to learn some of the language.


Organizational Behavior: Chapter 13 414

Study Question 3: What are the barriers to effective communication?


Physical distractions.
Any aspect of the physical setting in which

communication takes place.


Can interfere with communication

effectiveness.

Organizational Behavior: Chapter 13

415

Study Question 3: What are the barriers to effective communication?


Semantic problems.
Involves a poor choice or use of words. Use the KISS principle of communication.
Keep it short and simple.

Organizational Behavior: Chapter 13

416

Study Question 3: What are the barriers to effective communication?


Mixed messages.
Occur when a persons words communicate

one thing while actions or body language communicates another.


Nonverbals add important insights in face-to-

face meetings.
Organizational Behavior: Chapter 13 417

Study Question 3: What are the barriers to effective communication?


Absence of feedback.
One-way communication flows from sender to

receiver only, with no direct and immediate feedback.


Two-way communication goes from sender to

receiver and back again.


Two-way communication is more effective

than one-way communication.


Organizational Behavior: Chapter 13 418

Study Question 3: What are the barriers to effective communication?


Status effects.
Status differences create potential communication

barriers between persons of higher and lower ranks .


Mum effect. Occurs when people are reluctant to transmit bad

news.
Management by wandering around (MBWA). Getting out of the office to directly communicate

with others as they do their jobs.


Organizational Behavior: Chapter 13 419

Study Question 4: What are current issues in organizational communication?


Advances in information technologies enable organizations to:
Distribute information much faster. Make more information available. Allow broader and more immediate access to

information. Encourage participation in the sharing and use of information. Integrate systems and functions, and use information to link with the environment.
Organizational Behavior: Chapter 13 420

Study Question 4: What are current issues in organizational communication? Potential disadvantages of electronic communications.
Technologies are impersonal. Nonverbal communication is removed from

situation. Can unduly influence the emotional aspects of communication. Information overload.
Organizational Behavior: Chapter 13 421

Study Question 4: What are current issues in organizational communication? Communication and social context.
Mean and women are socialized into different

communication styles.
Women are socialized to be more sensitive to

interpersonal relationships in communication.


Men are socialized to be competitive, aggressive,

and individualistic, which may cause communication problems.


Organizational Behavior: Chapter 13 422

Chapter 14 Study Questions


What is the decision-making process in organizations? What are the useful decision-making models? How do intuition, judgment, and creativity affect decision making?

Organizational Behavior: Chapter 14

423

Chapter 14 Study Questions (cont.)


How do you manage the decision-making process? What are some of the current issues in decision making? How do you infuse ethics into the decisionmaking process?

Organizational Behavior: Chapter 14

424

Study Question 1: What is the decisionmaking process in organizations?


Decision making is the process of choosing a course of action for dealing with a problem or opportunity. Steps in systematic decision making.
Recognize and define the problem or opportunity. Identify and analyze alternative courses of action, and

estimate their effects on the problem or opportunity. Choose a preferred course of action. Implement the preferred course of action. Evaluate the results and follow up as necessary.
Organizational Behavior: Chapter 14 425

Study Question 1: What is the decisionmaking process in organizations?


Certain decision environments.
Exist when information is sufficient to predict the

results of each alternative in advance of implementation.

Risk decision environments.


Exist when decision makers lack complete certainty

regarding the outcomes of various courses of action, but they are aware of the probabilities associated with their occurrence.
Organizational Behavior: Chapter 14 426

Study Question 1: What is the decisionmaking process in organizations?


Uncertain decision environments.
Exist when managers have so little information on

hand that they cannot even assign probabilities to various alternatives and their possible outcomes.
Described as a rapidly changing setting in terms of:
External conditions. The information technology requirements needed for

analyzing and making decisions.


The people who influence problem and choice definitions.
Organizational Behavior: Chapter 14 427

Study Question 1: What is the decisionmaking process in organizations? Uncertain decision environments (cont.).
Can be described in terms of types of risks

encountered by the organization.


Strategic risks are threats to overall business

success.
Operational risks are threats inherent in the

technologies used to reach business success.


Reputation risks are threats to a brand or to the

firms reputation
Organizational Behavior: Chapter 14 428

Study Question 1: What is the decisionmaking process in organizations? Types of decisions.


Programmed decisions.
Involve routine problems that arise regularly and

can be addressed through standard responses.

Nonprogrammed decisions.
Involve nonroutine problems that require solutions

specifically tailored to the situation at hand.


Organizational Behavior: Chapter 14 429

Study Question 2:What are the useful decision-making models?

Organizational Behavior: Chapter 14

430

Study Question 2:What are the useful decision-making models?


Classical decision theory assumes the manager faces a clearly defined problem, knows all possible action alternatives and their consequences, and then chooses the optimum solution. Widespread application of classical decision theory is restricted by bounded rationality.
Organizational Behavior: Chapter 14 431

Study Question 2:What are the useful decision-making models?


Classical decision theory does not appear to fit well in the modern business world, though it can be used toward the bottom of many firms. Behavioral decision theory accepts the notion of bounded rationality. It assumes the manager acts only in terms of what is perceived about a given situation, and then chooses a satisficing solution.
Organizational Behavior: Chapter 14 432

Study Question 2:What are the useful decision-making models?


The garbage can model.
A model of decision making that views

problems, solutions, participants, and choice situations as mixed together in the garbage can of the organization. The garbage can model highlights two important organizational facts of life.
Different individuals may do choice making and

implementation. Many problems go unsolved.


Organizational Behavior: Chapter 14 433

Study Question 2:What are the useful decision-making models?


Decision making realities.
Decision making information may not be

available.
Bounded rationality and cognitive limitations

affect the way people define problems, identify alternatives, and choose preferred solutions.
Organizational Behavior: Chapter 14 434

Study Question 2:What are the useful decision-making models?


Decision making realities (cont.).
Most decision making in organizations goes

beyond step-by-step rational choice.


Decisions must be made under risk and

uncertainty.
Decisions should be ethical.
Organizational Behavior: Chapter 14 435

Study Question 3: How do intuition, judgment, and creativity affect decision making?

Intuition.
The ability to know or recognize quickly and

readily the possibilities of a given situation.


A key element of decision making under risk

and uncertainty.

Organizational Behavior: Chapter 14

436

Study Question 3: How do intuition, judgment, and creativity affect decision making?

Judgmental heuristics.
Simplifying strategies or rules of thumb

used to make decisions.


Make it easier to to deal with uncertainty and

limited information.

Organizational Behavior: Chapter 14

437

Study Question 3: How do intuition, judgment, and creativity affect decision making?

Types of heuristics.
Availability heuristic. Bases a decision on similarity to past occurrences that are easily remembered. Representativeness heuristic. Bases a decision on similarities between an event and stereotypes of similar occurrences. Anchoring and adjustment heuristic. Bases a decision on incremental adjustments to an initial value determined by historical precedent or some reference point.
Organizational Behavior: Chapter 14 438

Study Question 3: How do intuition, judgment, and creativity affect decision making?

General judgmental biases in decision making.


Confirmation trap. The tendency to seek confirmation for what is already thought to be true and to not search for disconfirming information. Hindsight trap. The tendency to overestimate the degree to which an event that has already taken place could have been predicted.
Organizational Behavior: Chapter 14 439

Study Question 3: How do intuition, judgment, and creativity affect decision making?

Stages in the creative thinking process.


Preparation. Concentration. Incubation. Illumination Verification.

Organizational Behavior: Chapter 14

440

Study Question 3: How do intuition, judgment, and creativity affect decision making? Ways of fostering creativity.
Diversifying teams to include members with different

backgrounds, training, and perspectives.


Encouraging analogical reasoning. Stressing periods of silent reflection. Recording all ideas so that the same ones are not

rediscovered.
Establishing high expectations for creativity. Developing a physical space that encourages fun,

divergent ideas.
Organizational Behavior: Chapter 14 441

Study Question 3: How do intuition, judgment, and creativity affect decision making?

Creativity is higher when:


Linguistic ability, willingness to engage in

divergent thinking, and intelligence are present.


Individuals are motivated by and derive

satisfaction from task accomplishment.


There are opportunities for creativity, as many

constraints as possible are eliminated, and rewards are provided for creative efforts.
Organizational Behavior: Chapter 14 442

Study Question 3: How do intuition, judgment, and creativity affect decision making?

Creativity is higher when (cont.):


The decision maker emphasizes engagement in

the creative process and counsels individuals to share their ideas with others.
The decision maker encourages subordinates

to recognize ambiguity, contact others with different views, and be prepared to make considerable changes.
Organizational Behavior: Chapter 14 443

Study Question 4: How do you manage the decision-making process?


In choosing problems to address, ask and answer the following questions:
Is the problem easy to deal with? Might the problem resolve itself? Is this my decision to make? Is this a solvable problem within the context of

the organization?
Organizational Behavior: Chapter 14 444

Study Question 4: How do you manage the decision-making process?


Reasons for decision making failure.
Managers too often copy others choices and try to sell

them to subordinates.
Subordinates may believe the manager is imposing his

or her will rather than working for everyones interests.


Managers may focus on the problems they see rather

than the outcomes they want.


Managers use participation too infrequently.
Organizational Behavior: Chapter 14 445

Study Question 4: How do you manage the decision-making process?

Organizational Behavior: Chapter 14

446

Study Question 4: How do you manage the decision-making process?


Key problem attributes in the Vroom, Yetton, and Jago decision making framework.
The required quality of the decision. The commitment needed from subordinates. The amount of information the leader has. Commitment probability. Goal congruence. Subordinate conflict. Subordinate information.
Organizational Behavior: Chapter 14 447

Study Question 4: How do you manage the decision-making process?


Authority decisions in the Vroom, Yetton, and Jago decision making framework.
Manager or team leader uses information that he or

she possesses and decides what to do without involving others.


Variant 1 manager solves the problem or makes the

decision alone.
Variant 2 manager obtains the necessary

information from others and then decides.


Organizational Behavior: Chapter 14 448

Study Question 4: How do you manage the decision-making process?


Consultative decisions in the Vroom, Yetton, and Jago decision making framework.
Manager or team leader solicits input from other

people and then, based on this information and its interpretation, makes a final choice.
Variant 1 manager seeks input from others

individually and then makes a decision.


Variant 2 manager seeks input from others

collectively and then makes a decision.


Organizational Behavior: Chapter 14 449

Study Question 4: How do you manage the decision-making process?


Group decisions in the Vroom, Yetton, and Jago decision making framework.
Manager or team leader consults with others

and allows them to help make the final choice.

Organizational Behavior: Chapter 14

450

Study Question 4: How do you manage the decision-making process?


Knowing when to quit.
The natural desire to continue on a selected course of

action reinforces escalating commitment.


Escalating commitment is the tendency to continue

and renew effort on a previously chosen course of action, even though it is not working.
Tendency to escalate commitments often outweighs

the willingness to disengage from them.


Good decision makers are willing to reverse previous

decisions.
Organizational Behavior: Chapter 14 451

Study Question 5: What are some of the current issues in decision making? Workplace trends affecting organizational decision makers.
Business units are becoming smaller in size. New, more flexible, and adaptable

organizational forms. Multifunctional understanding is increasingly important. Workers with both technical knowledge and team skills are increasingly desirable. The nature of work is in a state of flux.
Organizational Behavior: Chapter 14 452

Study Question 5: What are some of the current issues in decision making? Information technology and decision making.
Artificial intelligence is the study of how

computers can be programmed to think like human beings.


Expert systems support decision making by

following either-or rules to make deductions.


Organizational Behavior: Chapter 14 453

Study Question 5: What are some of the current issues in decision making? Information technology and decision making (cont.). Fuzzy logic and neural networks reason inductively.
Computer support for decision making. Information technology does not deal with

issues raised by the garbage can model.


Organizational Behavior: Chapter 14 454

Study Question 5: What are some of the current issues in decision making?
Cultural factors and decision making.
Culture is the way in which a group of people solves

problems. North American culture stresses decisiveness, speed, and the individual selection of alternatives. Other cultures place less emphasis on individual choice than on developing implementations that work. The most important impact of culture on decision making concerns which issues are elevated to the status of problems solvable within the firm.
Organizational Behavior: Chapter 14 455

Study Question 6: How do you infuse ethics into the decision-making process? Ways to infuse ethics into decision making.
Develop a code of ethics and follow it. Establish procedures for reporting violations. Involve employees in identifying ethical

issues. Monitor ethical performance. Reward ethical behavior. Publicize ethical efforts.
Organizational Behavior: Chapter 14 456

Study Question 6: How do you infuse ethics into the decision-making process?
Morality is involved in: Choosing problems. Deciding who should be involved in making decisions. Estimating the impacts of decision alternatives. Selecting an alternative for implementation. An effective decision needs to solve a problem as well as match moral values and help others.
Organizational Behavior: Chapter 14 457

Chapter 15 Study Questions


What is conflict? How can conflict be managed successfully? What is negotiation? What are the different strategies involved in negotiation?
Organizational Behavior: Chapter 15 458

Study Question 1: What is conflict?


Conflict occurs whenever:
Disagreements exist in a social situation over

issues of substance.
Emotional antagonisms cause frictions

between individuals or groups.

Organizational Behavior: Chapter 15

459

Study Question 1: What is conflict?


Types of conflict.
Substantive conflict.
A fundamental disagreement over ends or goals to

be pursued and the means for their accomplishment.

Emotional conflict.
Interpersonal difficulties that arise over feelings of

anger, mistrust, dislike, fear, resentment, etc.

Organizational Behavior: Chapter 15

460

Study Question 1: What is conflict?


Levels of conflict.
Intrapersonal conflicts.
Actual or perceived pressures from incompatible

goals or expectations.
Approach-approach conflict. Avoidance-avoidance conflict. Approach-avoidance conflict.

Organizational Behavior: Chapter 15

461

Study Question 1: What is conflict?


Levels of conflict (cont.).
Interpersonal conflict.
Occurs between two or more individuals who are

in opposition to one another.

Intergroup conflict.
Occurs among members of different teams or

groups.

Organizational Behavior: Chapter 15

462

Study Question 1: What is conflict?


Levels of conflict (cont.).
Interorganizational conflict.
Commonly refers to the competition and rivalry

that characterize firms operating in the same markets.


Encompasses disagreements that exist between any

two or more organizations.

Organizational Behavior: Chapter 15

463

Study Question 1: What is conflict?

Organizational Behavior: Chapter 15

464

Study Question 1: What is conflict?


Potential benefits of functional conflict.
Surfaces important problems so they can be

addressed.
Causes careful consideration of decisions. Causes reconsideration of decisions. Increases information available for decision

making.
Provides opportunities for creativity.
Organizational Behavior: Chapter 15 465

Study Question 1: What is conflict?


Potential disadvantages of dysfunctional conflict.
Diverts energies. Harms group cohesion. Promotes interpersonal hostilities. Creates overall negative environment. Can decrease work productivity and job satisfaction. Can contribute to absenteeism and job turnover.

Organizational Behavior: Chapter 15 466

Study Question 1: What is conflict?


Culture and conflict.
Culture and cultural differences must be

considered for their conflict potential.


Individuals who are not able to recognize and

respect the impact of culture may contribute to emergence of dysfunctional situations


Cross-cultural sensitivity helps defuse

dysfunctional conflict and capture advantages that constructive conflict may offer.
Organizational Behavior: Chapter 15 467

Study Question 2: How can conflict be managed successfully?

Organizational Behavior: Chapter 15

468

Study Question 2: How can conflict be managed successfully? Causes of conflict.


Vertical conflict. Occurs between hierarchical levels. Horizontal conflict. Occurs between persons or groups at the same hierarchical level. Line-staff conflict. Involves disagreements over who has authority and control over specific matters.
Organizational Behavior: Chapter 15 469

Study Question 2: How can conflict be managed successfully? Causes of conflict (cont.).
Role conflicts. Occur when the communication of task expectations proves inadequate or upsetting. Workflow interdependencies. Occur when people or units are required to cooperate to meet challenging goals. Domain ambiguities. Occur as misunderstandings over such things as customer jurisdiction or scope of authority .
Organizational Behavior: Chapter 15 470

Study Question 2: How can conflict be managed successfully? Causes of conflict (cont.).
Resource scarcity. When resources are scarce, working relationships are likely to suffer. Power or value asymmetries. Occur when interdependent people or groups differ substantially from one another in status and influence or in values.

Organizational Behavior: Chapter 15

471

Study Question 2: How can conflict be managed successfully? Indirect conflict management approaches.
Reduced interdependence.
Adjusting the level of interdependency among

units or individuals when workflow conflicts exist.


Decoupling, buffering, and linking pin roles.

Appeal to common goals.


Focusing the attention of potentially conflicting

parties on one mutually desirable conclusion.


Organizational Behavior: Chapter 15 472

Study Question 2: How can conflict be managed successfully? Indirect conflict management approaches (cont.).
Hierarchical referral.
Problems are referred up the hierarchy for more

senior managers to reconcile.

Altering scripts and myths.


Superficial management of conflict by using

behavioral routines that become part of the organizations culture.


Organizational Behavior: Chapter 15 473

Study Question 2: How can conflict be managed successfully?

Organizational Behavior: Chapter 15

474

Study Question 2: How can conflict be managed successfully? Lose-lose conflict.


Avoidance. Everyone simply pretends that the conflict does not really exist and hopes that it will go away. Accommodation or smoothing. Involves playing down differences among the conflicting parties and highlighting similarities and areas of agreement. Compromise. Each party gives up something of value, but neither partys desires are fully satisfied
Organizational Behavior: Chapter 15 475

Study Question 2: How can conflict be managed successfully? Win-lose conflict.


Competition.
One party achieves a victory through the use of

force, superior skills, or domination.

Authoritative command.
Use of formal authority to dictate a solution and

specify who gains what and who loses what.

Organizational Behavior: Chapter 15

476

Study Question 2: How can conflict be managed successfully? Win-win conflict.


Collaboration or problem solving.
Recognition by all conflicting parties that

something is wrong and needs attention, and it stresses gathering and evaluating information in solving disputes and making choices.
Collaboration and problem solving are preferred to

gain true conflict resolution when time and cost permit.


Organizational Behavior: Chapter 15 477

Study Question 2: How can conflict be managed successfully? Win-win solutions should:
Achieve each others goals. Be acceptable to both parties. Establish a process whereby both parties see a

responsibility to be open and honest about facts and feelings.


Organizational Behavior: Chapter 15 478

Study Question 2: How can conflict be managed successfully? Potential disadvantages of collaboration.
Collaboration requires time and energy. Both parties to the conflict need to be assertive

and cooperative.
Collaboration may not be feasible if the

organizations culture does not value cooperation.


Organizational Behavior: Chapter 15 479

Study Question 3: What is negotiation? Negotiation goals and outcomes.


Substance goals.
Outcomes that relate to content issues.

Relationship goals.
Outcomes that relate to how well people involved

in the negotiations and any constituencies they represent are able to work with one another once the process is concluded.
Organizational Behavior: Chapter 15 480

Study Question 3: What is negotiation? Effective negotiation.


Occurs when substance issues are resolved and

working relationships are maintained or improved.


Criteria for an effective negotiation.
Quality. Harmony. Efficiency.
Organizational Behavior: Chapter 15 481

Study Question 3: What is negotiation?


Ethical aspects of negotiation.
To maintain good working relationships, negotiators

should strive for high ethical standards.


Negotiators rationalizations for questionable ethical

behavior are offset by long-run negative consequences.


The unethical negotiator may be targeted for revenge. Unethical negotiating actions may become habitual.
Organizational Behavior: Chapter 15 482

Study Question 3: What is negotiation? Organizational settings for negotiation.


Two-party negotiation.
Manager negotiates directly with one other person.

Group negotiation.
Manager is part of a group whose members are

negotiating.

Organizational Behavior: Chapter 15

483

Study Question 3: What is negotiation?


Organizational settings for negotiation (cont.).
Intergroup negotiation.
Manager is part of a group that is negotiating with

another group.

Constituency negotiation.
Manager is involved in negotiation with other

persons, with each party representing a broader constituency.


Organizational Behavior: Chapter 15 484

Study Question 4: What are the different strategies involved in negotiation?


Distributive negotiation.
Focuses on positions staked out or declared by the

conflicting parties.
Parties try to claim certain portions of the existing pie.

Integrative negotiation.
Sometimes called principled negotiation. Focuses on the merits of the issues. Parties try to enlarge the available pie.
Organizational Behavior: Chapter 15 485

Study Question 4: What are the different strategies involved in negotiation? Distributive negotiation.
The key question is: Who is going to get this

resource? Hard distributive negotiation.


Each party holds out to get its own way.

Soft distributive negotiation. One party is willing to make concessions to the other party to get things over.
Organizational Behavior: Chapter 15 486

Study Question 4: What are the different strategies involved in negotiation? Integrative negotiation.
The key question is: How can the resource

best be utilized?
Is less confrontational than distributive

negotiation, and permits a broader range of alternative solutions to be considered.


Opportunity for a true win-win solution.
Organizational Behavior: Chapter 15 487

Study Question 4: What are the different strategies involved in negotiation? Attitudinal foundations of integrative agreements.
Willingness to trust the other party. Willingness to share information with the

other party.
Willingness to ask concrete questions of the

other party.
Organizational Behavior: Chapter 15 488

Study Question 4: What are the different strategies involved in negotiation?


Behavioral foundations of integrative agreements.
Ability to separate the people from the problem. Ability to focus on interests rather than positions. Ability to avoid making premature judgments. Ability to keep alternative creation separate from

evaluation.
Ability to judge possible agreements on an objective

set of criteria or standards.


Organizational Behavior: Chapter 15 489

Study Question 4: What are the different strategies involved in negotiation? Information foundations of integrative agreements.
Each party must know what he or she will do

if an agreement cant be reached.


Each party must determine what is personally

important in the situation.


Each party must achieve an understanding of

what the other party values.


Organizational Behavior: Chapter 15 490

Study Question 4: What are the different strategies involved in negotiation? Common negotiation pitfalls.
Myth of the fixed pie. Possibility of escalating commitment. Negotiators often develop overconfidence in

their positions. Communication problems can cause difficulties during a negotiation.


Telling problem. Hearing problem.
Organizational Behavior: Chapter 15 491

Study Question 4: What are the different strategies involved in negotiation? Third-party roles in negotiation.
Alternative dispute resolution. A neutral third party works with persons

involved in a negotiation to help them resolve impasses and settle disputes. Arbitration. A third party acts as a judge and has the power to issue a decision that is binding on all disputing parties.
Organizational Behavior: Chapter 15 492

Study Question 4: What are the different strategies involved in negotiation? Third-party roles in negotiation (cont.).
Mediation. A neutral third party tries to engage

disputing parties in a negotiated solution through persuasion and rational argument.

Organizational Behavior: Chapter 15

493

Chapter 16 Study Questions


What is organizational change? What change strategies are used in organizations? How is resistance to change best managed? How do organizations innovate? How does stress affect people in change environments?
Organizational Behavior: Chapter 16 494

Study Question 1: What is organizational change?


Transformational change.
Results in a major overhaul of the organization

or its component systems. Described as radical change or frame-breaking change. Organizations experiencing transformational change undergo a significant shift in basic characteristic features.
Organizational Behavior: Chapter 16 495

Study Question 1: What is organizational change?


Incremental change or frame-bending change.
Part of the organizations natural evolution in

building on the existing ways of operating to enhance or extend them in new directions. Introduction of new products, new technologies, and new systems and processes. Continuous improvement through incremental change is an important asset.
Organizational Behavior: Chapter 16 496

Study Question 1: What is organizational change?


Change agents.
Individuals and groups who take responsibility

for changing the existing behavior patterns of another person or social system. Success of change efforts depends in part on change agents. Being an effective change agent means being a great change leader.
Organizational Behavior: Chapter 16 497

Study Question 1: What is organizational change?


Unplanned change.
Occurs spontaneously and without a change

agents direction, and such change may be disruptive.


Appropriate goal is to act quickly to minimize

the negative consequences and maximize any possible benefits.


Organizational Behavior: Chapter 16 498

Study Question 1: What is organizational change?


Planned change.
The result of specific efforts by a change

agent.
Direct response to someones perception of a

performance gap.
A performance gap is the discrepancy between the

desired and actual state of affairs.


Performance gaps represent problems to be

resolved or opportunities to be explored.


Organizational Behavior: Chapter 16 499

Study Question 1: What is organizational change?


Organizational forces for change.
Organization-environment relationships. Organizational life cycle. Political nature of organizations.

Organizational Behavior: Chapter 16

500

Study Question 1: What is organizational change?

Organizational Behavior: Chapter 16

501

Study Question 1: What is organizational change?


Reasons for failure of transformational change.
No sense of urgency. No powerful guiding coalition. No compelling vision. Failure to communicate the vision. Failure to empower others to act. Failure to celebrate short-term wins. Failure to build on accomplishments. Failure to institutionalize results.
Organizational Behavior: Chapter 16 502

Study Question 1: What is organizational change?


Phases of planned change.
Unfreezing. Preparing a situation for change by disconfirming existing attitudes and behaviors. Changing. Taking action to modify a situation by altering the targets of change. Refreezing. Maintaining momentum and eventually institutionalizing the change.
Organizational Behavior: Chapter 16 503

Study Question 2: What change strategies are used in organizations?

Organizational Behavior: Chapter 16

504

Study Question 3: How is resistance to change best managed?


Resistance to change.
Any attitude or behavior that indicates

unwillingness to make or support a desired change. Alternative views of resistance.


Something that must be overcome for change to be

successful. Feedback that can be used to facilitate achieving change objectives.


Organizational Behavior: Chapter 16 505

Study Question 3: How is resistance to change best managed?


Why people resist change.
Fear of the unknown. Lack of good information. Fear for loss of security. No reasons to change. Fear for loss of power. Lack of resources. Bad timing. Habit.
Organizational Behavior: Chapter 16 506

Study Question 3: How is resistance to change best managed?


Resistance to the change itself.
People may reject a change because they believe it is

not worth their time, effort, or attention.


To deal with resistance to the change itself, all those

affected should know how it satisfies the following criteria:


Benefit. Compatibility. Complexity. Triability.
Organizational Behavior: Chapter 16 507

Study Question 3: How is resistance to change best managed?


Resistance to the change strategy.
Force-coercion strategy.
Likely resistance among individuals who resent management

by command or the use of threatened punishment.

Rational persuasion strategy.


Likely resistance when the data are suspect or the expertise of

advocates is unclear.

Shared-power strategy.
Likely resistance if it appears manipulative and insincere.
Organizational Behavior: Chapter 16 508

Study Question 3: How is resistance to change best managed?


Resistance to the change agent.
Resistance to the change agent is directed at

the person implementing the change and often involves personality and other differences.

Organizational Behavior: Chapter 16

509

Study Question 3: How is resistance to change best managed?


How to deal with resistance.
Education and communication. Participation and support. Facilitation and support. Negotiation and agreement. Manipulation and cooptation. Explicit and implicit coercion.
Organizational Behavior: Chapter 16 510

Study Question 3: How is resistance to change best managed?

Organizational Behavior: Chapter 16

511

Study Question 4: How do organizations innovate?


Innovation.
The process of creating new ideas and putting them

into practice.

Product innovations.
The introduction of new or improved goods or

services to better meet customer needs.

Process innovations.
The introduction of new and better work methods and

operations.
Organizational Behavior: Chapter 16 512

Study Question 4: How do organizations innovate?

Organizational Behavior: Chapter 16

513

Study Question 4: How do organizations innovate?


Features of innovative organizations.
Strategies and cultures that are built around a

commitment to innovation.
Structures that support innovation. Staffing with a clear commitment to

innovation.
Top-management support for innovation.
Organizational Behavior: Chapter 16 514

Study Question 5: How does stress affect people in change environments? Stress.
A state of tension experienced by individuals

facing extraordinary demands, constraints, or opportunities.

Organizational Behavior: Chapter 16

515

Study Question 5: How does stress affect people in change environments? Source of stress.
Stressors.
The wide variety of things that cause stress for

individuals.

Types of stressors.
Work-related stressors. Life stressors.
Organizational Behavior: Chapter 16 516

Study Question 5: How does stress affect people in change environments? Work-related stressors.

Task demands. Role ambiguities. Role conflicts. Ethical dilemmas. Interpersonal problems. Career developments. Physical setting.
Organizational Behavior: Chapter 16 517

Study Question 5: How does stress affect people in change environments? Life stressors.
Family events. Economic difficulties. Personal affairs. Individuals needs. Individuals capabilities. Individuals personality.
Organizational Behavior: Chapter 16 518

Study Question 5: How does stress affect people in change environments? Stress and performance.
Constructive stress (or eustress). Moderate levels of stress act in a positive way for both individuals and organization. Destructive stress (or distress). Low and especially high levels of stress act in a negative way for both individuals and organization. Job burnout. A loss of interest in and satisfaction with a job due to stressful working conditions.
Organizational Behavior: Chapter 16 519

Study Question 5: How does stress affect people in change environments?


Stress and health.
Stress can harm peoples physical and psychological

health. Health problems associated with stress.


Heart attack. Stroke. Hypertension. Migraine headache. Ulcers. Substance abuse. Overeating. Depression. Muscle aches.

Managers and team leaders should be alert to signs of

excessive stress.

Organizational Behavior: Chapter 16

520

Study Question 5: How does stress affect people in change environments? Stress management.
Stress prevention. Taking action to keep stress from reaching destructive levels in the first place. Once stress has reached a destructive point,

special techniques of stress management can be implemented. Stress management.


Begins with the recognition of stress symptoms

and continues with actions to maintain a positive performance edge.


Organizational Behavior: Chapter 16 521

Study Question 5: How does stress affect people in change environments? Stress management (cont.).
Personal wellness.
Pursuit of ones job and career goals with the

support of a personal health promotion program.

Employee assistance programs.


Provide help for employees who are experiencing

personal problems and related stress.

Organizational Behavior: Chapter 16

522

Chapter 17 Study Questions


What is strategy and how is it linked to different types of organizational goals? What are the basic attributes of organizations? How is work organized and coordinated? What are bureaucracies and what are the common structures?
Organizational Behavior: Chapter 17 523

Study Question 1: What is strategy and how is it linked to different types of organizational goals? Strategy.
The process of positioning the organization in

the competitive environment and implementing actions to compete successfully.


A pattern in a stream of decisions.
Choices regarding goals and the way the firm

organizes to accomplish them.

Organizational Behavior: Chapter 17

524

Study Question 1: What is strategy and how is it linked to different types of organizational goals? Elements of conventional strategy decisions.
Choosing the types of contributions the firm

intends to make to society.


Precisely whom the firm will serve. Exactly what the firm will provide to others.

Organizational Behavior: Chapter 17

525

Study Question 1: What is strategy and how is it linked to different types of organizational goals?
Societal goals.
Reflect an organizations intended contributions to the

broader society.
Enable organizations to gain legitimacy, a social right

to operate, and more discretion for their non-societal goals and operating practices.
Enable organizations to make legitimate claims over

resources, individuals, markets, and products.


Organizational Behavior: Chapter 17 526

Study Question 1: What is strategy and how is it linked to different types of organizational goals? Societal contributions and mission statements.
A firms societal contribution is often part of

its mission statement.


A written statement of organizational purpose.

A good mission statement identifies whom the

firm will serve and how it will go about accomplishing its societal purpose.
Organizational Behavior: Chapter 17 527

Study Question 1: What is strategy and how is it linked to different types of organizational goals? Output goals.
Define the type of business the organization is

pursuing.
Provide some substance to the more general

aspects of mission statements.

Organizational Behavior: Chapter 17

528

Study Question 1: What is strategy and how is it linked to different types of organizational goals?
Systems goals.
Concerned with the conditions within the organization

that are expected to increase the organizations survival potential.


Typical systems goals include growth, productivity,

stability, harmony, flexibility, prestige, and human resource maintenance.


Systems goals must often be balanced against one

another.
Organizational Behavior: Chapter 17 529

Study Question 1: What is strategy and how is it linked to different types of organizational goals? Well-defined systems goals can:
Focus managers attention on what needs to be

done. Provide flexibility in devising ways to meet important targets. Be used to balance the demands, constraints, and opportunities facing the firm. Form a basis for dividing the work of the firm.
Organizational Behavior: Chapter 17 530

Study Question 2: What are the basic attributes of organizations?


Successful organizations develop a structure consistent with the pattern of goals established by senior management. The formal structure shows the planned configuration of positions, job duties, and the lines of authority among different parts of the organization. The formal structure of the firm is also known as the division of labor.
Organizational Behavior: Chapter 17 531

Study Question 2: What are the basic attributes of organizations?


Vertical specialization.
A hierarchical division of labor that distributes formal

authority and establishes where and how critical decisions are to be made.
Creates a hierarchy of authority.
An arrangement of work positions in order of increasing

authority.

Organization charts are diagrams that depict the

formal structures of organizations.


Organizational Behavior: Chapter 17 532

Study Question 2: What are the basic attributes of organizations?

Organizational Behavior: Chapter 17

533

Study Question 2: What are the basic attributes of organizations?


Chain of command.
A listing of who reports to whom up and down the

organization.

Unity of command.
Each person has only one boss and each unit one

leader.

Span of control.
The number individuals reporting to a supervisor.
Organizational Behavior: Chapter 17 534

Study Question 2: What are the basic attributes of organizations?


Line units.
Work groups that conduct the major business

of the organization.

Staff units.
Work groups that assist the line units by

providing specialized expertise and services to the organization.

Organizational Behavior: Chapter 17

535

Study Question 2: What are the basic attributes of organizations?


Internal versus external units.
Internal line units.
Transform raw materials and information into products and

services.

External line units.


Maintain outside linkages.

Internal staff units.


Assist the line units in performing their functions.

External staff units.


Assist the line units with outside linkages and act to buffer

internal operations.
Organizational Behavior: Chapter 17 536

Study Question 2: What are the basic attributes of organizations?

Organizational Behavior: Chapter 17

537

Study Question 2: What are the basic attributes of organizations?


Some firms are outsourcing many of their staff functions. Use of information technology to streamline operations and reduce staff. Most organizations use a variety of means to specialize the vertical division of labor. Best pattern of vertical specialization depends on environment, size, technology, and goals.
Organizational Behavior: Chapter 17 538

Study Question 2: What are the basic attributes of organizations?


Control.
The set of mechanisms used to keep actions or

outputs within predetermined limits.


Deals with:
Setting standards. Measuring results against standards. Instituting corrective action.
Organizational Behavior: Chapter 17 539

Study Question 2: What are the basic attributes of organizations?


Output controls.
Focus on desired targets and allow managers

to use their own methods to reach defined targets. Part of overall method of managing by exception. Promote flexibility and creativity.

Organizational Behavior: Chapter 17

540

Study Question 2: What are the basic attributes of organizations?


Process controls.
Specify the manner in which tasks are

accomplished.
Types of process controls.
Policies, procedures, and rules. Formalization and standardization. Total quality management controls.
Organizational Behavior: Chapter 17 541

Study Question 2: What are the basic attributes of organizations?


Policies, procedures, and rules.
Policies. Guidelines for action that outline important objectives and broadly indicate how activities are to be carried out. Procedures. Identify the best method for performing a task, show which aspects of a task are most important, or outline how an individual is to be rewarded.
Organizational Behavior: Chapter 17 542

Study Question 2: What are the basic attributes of organizations?


Policies, procedures, and rules (cont.).
Rules. Describe in detail how a task or a series of tasks is to be performed, or indicate what cannot be done. Policies, procedures, and rules are often used

as substitutes for direct managerial supervision.

Organizational Behavior: Chapter 17

543

Study Question 2: What are the basic attributes of organizations?


Formalization.
The written documentation of policies,

procedures, and rules to guide behavior and decision making.

Standardization.
The degree to which the range of allowable

actions in a job or series of jobs is limited so that uniform actions occur.


Organizational Behavior: Chapter 17 544

Study Question 2: What are the basic attributes of organizations?


Demings 14 points for achieving total quality management.
Create a consistency of purpose in the company to

innovate; put resources into research and education, and into maintaining equipment and new production aids.
Learn a new philosophy of quality to improve every

system.
Require statistical evidence of process control and

eliminate financial controls on production.


Organizational Behavior: Chapter 17 545

Study Question 2: What are the basic attributes of organizations?


Demings 14 points for achieving total quality management (cont.).
Require statistical evidence of control in purchasing

parts. Use statistical methods to isolate the sources of trouble. Institute modern on-the-job training. Improve supervision to develop inspired leaders. Drive out fear and instill learning. Break down barriers between departments.
Organizational Behavior: Chapter 17 546

Study Question 2: What are the basic attributes of organizations?


Demings 14 points for achieving total quality management (cont.).
Eliminate numerical goals and slogans. Constantly revamp work methods. Institute massive training programs for employees in

statistical methods.
Retrain people in new skills. Create a structure that will push, every day, on the

above 13 points.
Organizational Behavior: Chapter 17 547

Study Question 2: What are the basic attributes of organizations?


Centralization and decentralization.
Centralization.
Degree to which the authority to make decisions is

restricted to higher levels of management.

Decentralization.
Degree to which the authority to make decisions is

given to lower levels in an organizations hierarchy.


Organizational Behavior: Chapter 17 548

Study Question 2: What are the basic attributes of organizations?


Benefits of decentralization.
Higher subordinate satisfaction. Quicker response to a series of unrelated problems. Assists in on-the-job training of subordinates for higher-level positions Encourages participation in decision making.
Organizational Behavior: Chapter 17 549

Study Question 3: How is work organized and coordinated?


Horizontal specialization.
A division of labor that establishes specific

work units or groups within an organization.


Often referred to as departmentation. Whenever managers divide tasks and group

similar types of skills and resources together, they must also be concerned with coordination.
Organizational Behavior: Chapter 17 550

Study Question 3: How is work organized and coordinated?

Organizational Behavior: Chapter 17

551

Study Question 3: How is work organized and coordinated?

Organizational Behavior: Chapter 17

552

Study Question 3: How is work organized and coordinated?

Organizational Behavior: Chapter 17

553

Study Question 3: How is work organized and coordinated?


Coordination.
The set of mechanisms that an organization

uses to link the actions of its units into a consistent pattern. Within a unit, much of the coordination is handled by its manager. Smaller organizations rely on management hierarchy for coordination. As the organization grows, more efficient and effective methods of coordination are required.
Organizational Behavior: Chapter 17 554

Study Question 3: How is work organized and coordinated?


Personal methods of coordination.
Produce synergy by promoting dialogue, discussion,

innovation, creativity, and learning, both within and across units. Common personal methods of coordination are direct contact between and among organizational members and committee memberships. Mix of personal coordination methods should be tailored to subordinates, skills, abilities, and experiences.
Organizational Behavior: Chapter 17 555

Study Question 3: How is work organized and coordinated?


Impersonal methods of coordination.
Produce synergy by stressing consistency and

standardization so that individual pieces fit together.


Often are refinements and extensions of process

controls.
Historical use of specialized departments to coordinate

across units.
Contemporary use of matrix departmentation and

management information systems for coordination.


Organizational Behavior: Chapter 17 556

Study Question 4: What are bureaucracies and what are the common structures?

Bureaucracy.
An ideal form of organization, the

characteristics of which were defined by the German sociologist Max Weber.


Relies on a division of labor, hierarchical

control, promotion by merit with career opportunities for employees, and administration by rule.
Organizational Behavior: Chapter 17 557

Study Question 4: What are bureaucracies and what are the common structures?

Organizational Behavior: Chapter 17

558

Study Question 4: What are bureaucracies and what are the common structures?

Mechanistic type of bureaucracy (machine bureaucracy).


Emphasizes vertical specialization and control. Stresses rules, policies, and procedures; specifies techniques for decision making; and use well-documented control systems. Often used with a low cost leader strategy.
Organizational Behavior: Chapter 17 559

Study Question 4: What are bureaucracies and what are the common structures? Benefits of the mechanistic type.
Efficiency.

Limitations of the mechanistic type.


Employees dislike rigid designs, which makes work

motivation problematic. Unions may further solidify rigid designs. Key employees may leave. Hinders organizations capacity to adjust to subtle environmental changes or new technologies.
Organizational Behavior: Chapter 17 560

Study Question 4: What are bureaucracies and what are the common structures?

Organic type of bureaucracy (professional bureaucracy).


Horizontal specialization.
Procedures are minimal, and those that do

exist are not highly formalized.


Used to pursue strategies that emphasize

product quality, quick response to customers, or innovation.


Organizational Behavior: Chapter 17 561

Study Question 4: What are bureaucracies and what are the common structures? Benefits of the organic type.
Good for problem solving and serving individual

customer needs. Centralized direction by senior management is less intense. Good at detecting external changes and adjusting to new technologies.

Limitations of the organic type.


Less efficient than mechanistic type. Restricted capacity to respond to central management

direction.
Organizational Behavior: Chapter 17 562

Study Question 4: What are bureaucracies and what are the common structures?

Common types of hybrid structures.


Divisional firm.
Composed of quasi-independent divisions so that

different divisions can be more or less organic or mechanistic.

Conglomerate.
A single corporation that contains a number of

unrelated businesses.
Organizational Behavior: Chapter 17 563

Study Question 4: What are bureaucracies and what are the common structures?

The conglomerate simultaneously illustrates three key points that will be the focus of Chapter 18.
All structures are combinations of the basic

elements. There is no one best structure. The firm does not stand alone but is part of a larger network of firms that compete against other networks.
Organizational Behavior: Chapter 17 564

Chapter 18 Study Questions


What is organizational design and how is it linked to strategy? What is information technology and how is it used? Can the design of the firm co-evolve with the environment? How does a firm learn and continue to learn over time?
Organizational Behavior: Chapter 18 565

Study question 1: What is organizational design and how is it linked to strategy? Organizational design.
The process of choosing and implementing a

structural configuration. The choice of an appropriate organizational design depends on the firms:

Size. Operations and information technology. Environment. Strategy for growth and survival.
Organizational Behavior: Chapter 18 566

Study question 1: What is organizational design and how is it linked to strategy?


The structural configuration of organizations should:
Enable senior executives to emphasize the skills and

abilities that their firms need to compete, and to remain agile and dynamic in a rapidly changing world.
Allow individuals to experiment, grow, and develop

competencies so that the strategy of the firm can evolve.


Organizational Behavior: Chapter 18 567

Study question 1: What is organizational design and how is it linked to strategy? Co-evolution.
The firm can adjust to external changes even

as it shapes some of the challenges facing it. Shaping capabilities via the organizations design is a dynamic aspect of co-evolution. Even with co-evolution, managers must maintain a recognizable pattern of choices in organizational design.
Organizational Behavior: Chapter 18 568

Study question 1: What is organizational design and how is it linked to strategy? Organizational size.
As the number of employees increase, the

possible interconnections among them increase even more.


The design of small firms is directly

influenced by core operations technology.


Larger firms have many core operations

technologies in a variety of specialized units.


Organizational Behavior: Chapter 18 569

Study question 1: What is organizational design and how is it linked to strategy?


The simple design for smaller units and firms.
A configuration involving one or two ways of

specializing individuals and units.


Vertical specialization and control emphasize levels of

supervision without elaborate formal mechanisms.


Appropriate for many smaller firms because of

simplicity, flexibility, and responsiveness to a central manager.


Organizational Behavior: Chapter 18 570

Study question 1: What is organizational design and how is it linked to strategy?


Organizational design must be adjusted to fit technological opportunities and requirements.
Operations technology.
The combination of resources, knowledge, and techniques

that creates a product or service output.

Information technology.
The combination of machines, artifacts, procedures, and

systems used to gather, store, analyze, and disseminate information for translating it into knowledge.
Organizational Behavior: Chapter 18 571

Study question 1: What is organizational design and how is it linked to strategy? Thomsons view of technology.
Technologies classified according to the

degree of specification and degree of interdependence of work units.


Intensive technology.
Uncertainty as to how to produce desired outcomes.
Organizational Behavior: Chapter 18 572

Study question 1: What is organizational design and how is it linked to strategy? Thomsons view of technology (cont.).
Mediating technology.
Links parties that want to become interdependent.

Long-linked technology.
The way to produce desired outcomes is known and broken down into a number of sequential steps.

Organizational Behavior: Chapter 18

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Study question 1: What is organizational design and how is it linked to strategy?


Woodwards view of technology.
Small-batch production. The organization tailor makes a variety of custom

products to fit customer specifications.


Mass production. The organization produces one or a few products

through an assembly line system.


Continuous-process technology. The organization produces a few products using

considerable automation.
Organizational Behavior: Chapter 18 574

Study question 1: What is organizational design and how is it linked to strategy? Woodwards view of technology (cont.).
The proper matching of structure and

technology is critical to organizational success.


Successful small-batch and continuous-process

plants have flexible structures with small work groups at the bottom.
Successful mass production operations are rigidly

structured and have large work groups at the bottom.


Organizational Behavior: Chapter 18 575

Study question 1: What is organizational design and how is it linked to strategy? Adhocracy.
An appropriate structural design when

managers and employees do not know the appropriate way to service a client or produce a particular product.

Organizational Behavior: Chapter 18

576

Study question 1: What is organizational design and how is it linked to strategy? An adhocracy is characterized by:
Few rules, policies, and procedures. Substantial decentralization. Shared decision making among members. Extreme horizontal specialization. Few levels of management. Virtually no formal controls.
Organizational Behavior: Chapter 18 577

Study question 1: What is organizational design and how is it linked to strategy? An adhocracy is useful when:
The tasks facing the firm vary considerably

and provide many exceptions.


Problems are difficult to define and solve.

Organizational Behavior: Chapter 18

578

Study Question 2:What is information technology and how is it used? Why IT makes a difference.
IT provides a partial substitute for: Some operations. Some process controls. Some impersonal methods of coordination. IT provides a strategic capability. IT provides a capability for transforming

information to knowledge for learning.


Organizational Behavior: Chapter 18 579

Study Question 2:What is information technology and how is it used? Information technology as a substitute.
Initial implementation of IT often displaced

routine, highly specified, and repetitious jobs.


Did not alter fundamental character or design of

the organization.

A second wave of substitution replaced

process controls and informal coordination mechanisms with IT.


Brought some marginal changes in organizational

design.
Organizational Behavior: Chapter 18 580

Study Question 2:What is information technology and how is it used?


Information technology as a strategic capability.
IT has been used to improve the efficiency, speed of

responsiveness, and effectiveness of operations.


IT provides individuals the information they need to

plan, make choices, coordinate with others, and control their own operations.
This new strategic IT capability resulted from IT

being broadly available to everyone.


Organizational Behavior: Chapter 18 581

Study Question 2:What is information technology and how is it used? IT and learning.
IT systems empower individuals and expand

their jobs.
IT encourages the development of a virtual

network.
IT transforms how people manage.
Organizational Behavior: Chapter 18 582

Study Question 2:What is information technology and how is it used? IT and e-business.
Many dot-com firms adopted some variation

of adhocracy. As the dot-coms grew, the adhocracy design became problematic.


Limits on the size of an effective adhocracy. Actual delivery of products and services rested

more on responsiveness to clients and maintaining efficiency than on continual innovation.


Organizational Behavior: Chapter 18 583

Study Question 3: Can the design of the firm co-evolve with the environment?
Understanding the environment is important because an organization is an open system. General environment.
The set of cultural, economic, legal-political, and

educational conditions found in the areas in which the organization operates.

Specific environment.
The owners, suppliers, distributors, government

agencies, and competitors with which an organization must interact to grow and survive.
Organizational Behavior: Chapter 18 584

Study Question 3: Can the design of the firm co-evolve with the environment? Environmental complexity.
The magnitude of problems and opportunities

in the organizations environment, as reflected in:


Degree of richness. Degree of interdependence. Degree of uncertainty.

More complex environments provide more

problems and opportunities.


Organizational Behavior: Chapter 18 585

Study Question 3: Can the design of the firm co-evolve with the environment? Environmental richness.
The environment is richer when: The economy is growing. Individuals are improving their education. Those on whom the organization relies are prospering. A rich environment has more opportunities

and dynamism. The opposite of richness is decline.


Organizational Behavior: Chapter 18 586

Study Question 3: Can the design of the firm co-evolve with the environment? Environmental interdependence.
Linkage between environmental independence

and organization design may be subtle and indirect.


Organization may co-opt powerful outsiders. Organization may absorb or buffer demands of

powerful external elements.


Organizational Behavior: Chapter 18 587

Study Question 3: Can the design of the firm co-evolve with the environment? Environmental uncertainty.
Uncertainty and volatility can be particularly

damaging to large bureaucracies.


A more organic form is the appropriate

organizational design response to uncertainty and volatility.


Adhocracy may be needed extreme

uncertainty and volatility.


Organizational Behavior: Chapter 18 588

Study Question 3: Can the design of the firm co-evolve with the environment? In a complex global economy, firms must learn to co-evolve by altering their environment. Two important ways of co-evolution:
Management of networks. Development of alliances.
Organizational Behavior: Chapter 18 589

Study Question 3: Can the design of the firm co-evolve with the environment? Networks and alliances around the world.
Informal combines or cartels exist in Europe

but are illegal in the United States except in rare cases. Networks are called keiretsu in Japan.
Bank-centered keiretsu. Vertical keiretsu.

In the United States, outsourcing is developing

as a specialized form of network organization.


Organizational Behavior: Chapter 18 590

Study Question 3: Can the design of the firm co-evolve with the environment? Interfirm alliances.
Announced cooperative agreements or joint

ventures between two independent firms. Alliances are quite common in high technology industries. Since firms cooperate rather than compete; consequently, both the alliance managers and sponsoring executives must be patient, flexible, and creative in pursuing goals.
Organizational Behavior: Chapter 18 591

Study Question 3: Can the design of the firm co-evolve with the environment? Virtual organization.
An ever-shifting constellation of firms, with a

lead corporation, that pool skills, resources, and experiences to thrive jointly.
A design option when internal and external

contingencies are changing quickly.


Organizational Behavior: Chapter 18 592

Study Question 3: Can the design of the firm co-evolve with the environment?
Key to making a virtual organization work.
The production system needs to be in a partner

network bound together by mutual trust and survival. The partner network needs to develop and maintain an advanced IT, trust and cross-owning of problems and solutions, and a common shared culture. The lead firm must take responsibility for the whole network and coordinate member firm actions. The lead corporation and the partners need to rethink how they are internally organized and managed.
Organizational Behavior: Chapter 18 593

Study Question 3: Can the design of the firm co-evolve with the environment? Boundaryless organization.
A design option that eliminates vertical,

horizontal, external, and geographic barriers that block desired action.


Actions to create a boundaryless organization.
Executives should systematically examine the

organization and its processes.


Organization members should initiate a process of

improving their cooperation.


Organizational Behavior: Chapter 18 594

Study Question 4: How does a firm learn and continue to learn over time?
Organizational learning.
Process of knowledge acquisition, information

distribution, information interpretation, and information retention in adapting successfully to changing circumstances.
Adjustment of organizations and individuals actions

based on experience.
The key to successful co-evolution.
Organizational Behavior: Chapter 18 595

Study Question 4: How does a firm learn and continue to learn over time? Mimicry.
Occurs when managers copy what they believe

are the successful practices of others Is important to new firms.


Provides workable, if not ideal, solutions to many

problems. Reduces the number of decisions that need to be analyzed separately. Establishes legitimacy or acceptance and narrows the choices requiring detailed explanation.
Organizational Behavior: Chapter 18 596

Study Question 4: How does a firm learn and continue to learn over time? Experience.
A primary way to acquire knowledge. Besides learning by doing, managers can also systematically embark on structured programs to capture the lessons to be learned. The major problem with emphasizing learning by doing is the inability to precisely forecast changes.
Organizational Behavior: Chapter 18 597

Study Question 4: How does a firm learn and continue to learn over time?

Organizational Behavior: Chapter 18

598

Study Question 4: How does a firm learn and continue to learn over time? Scanning.
Involves looking outside the firm and bringing

back useful solutions.

Grafting.
The process of acquiring individuals, units, or

firms to bring in useful knowledge.


Organizational Behavior: Chapter 18 599

Study Question 4: How does a firm learn and continue to learn over time? Common problems in information interpretation.
Self-serving interpretations. People seeing what they want to see, rather than seeing what is. Managerial scripts. A series of well-known routines for problem identification and alternative generation and analysis that are commonly used by a firms managers.
Organizational Behavior: Chapter 18 600

Study Question 4: How does a firm learn and continue to learn over time? Organizational myths.
Commonly held cause-effect relationships or

assertions that cannot be empirically supported.


Common myths.
Single organizational truth. Presumption of competence. Denial of tradeoffs.
Organizational Behavior: Chapter 18 601

Study Question 4: How does a firm learn and continue to learn over time? Information retention mechanisms.
Individuals. Organizational culture. Transformation mechanisms. Formal organizational structures. Ecology. External archives. Internal information technologies.
Organizational Behavior: Chapter 18 602

Study Question 4: How does a firm learn and continue to learn over time? Deficit cycles.
A pattern of deteriorating performance that is

followed by even further deterioration.


Factors associated with deficit cycles.
Organizational inertia. Hubris. Detachment.

Organizational Behavior: Chapter 18

603

Study Question 4: How does a firm learn and continue to learn over time? Benefit cycles.
A pattern of successful adjustment followed

by further improvements.
Firms can successfully co-evolve by initiating

a benefit cycle.
The firm develops adequate mechanisms for

learning.
Organizational Behavior: Chapter 18 604

Chapter 19 Study Questions


What is organizational culture? How do you understand an organizational culture? How can the organizational culture be managed? How can you use organizational development to improve the firm?
Organizational Behavior: Chapter 19 605

Study Question 1: What is organizational culture?


Organizational culture.
The system of shared actions, values, and

beliefs that develops within an organization and guides the behavior of its members.
Called corporate culture in the business

setting.
No two organizational cultures are identical.
Organizational Behavior: Chapter 19 606

Study Question 1: What is organizational culture?


External adaptation.
Involves reaching goals and dealing with

outsiders regarding tasks to be accomplished, methods used to achieve the goals, and methods of coping with success and failure.
Important aspects of external adaptation.
Separating eternal forces based on importance. Developing ways to measure accomplishments. Creating explanations for not meeting goals.
Organizational Behavior: Chapter 19 607

Study Question 1: What is organizational culture?


External adaptation involves answering important goal-related questions regarding coping with reality.

What is the real mission? How do we contribute? What are our goals? How do we reach our goals? What external forces are important? How do we measure results? What do we do if specific targets are not met? How do we tell others how good we are? When do we quit?
Organizational Behavior: Chapter 19 608

Study Question 1: What is organizational culture?


Internal integration.
Deals with the creation of a collective identity

and with finding ways of matching methods of working and living together. Important aspects of working together.
Deciding who is a member and who is not. Developing an understanding of acceptable and

unacceptable behavior. Separating friends from enemies.


Organizational Behavior: Chapter 19 609

Study Question 1: What is organizational culture?


Internal integration involves answering important questions associated with living together.
What is our unique identity? How do we view the world? Who is a member? How do we allocate power, status, and authority? How do we communicate? What is the basis for friendship?
Organizational Behavior: Chapter 19 610

Study Question 1: What is organizational culture?


Subculture.
A group of individuals with a unique pattern

of values and philosophy that are not inconsistent with the organizations dominant values and philosophy.

Counterculture.
A group of individuals with a pattern of values

and philosophy that outwardly reject the surrounding culture.


Organizational Behavior: Chapter 19 611

Study Question 1: What is organizational culture?


Problems associated with subcultural divisions within the larger culture.
Subordinate groups are likely to form into a

counterculture pursuing self-interests.


The firm may encounter extreme difficulty in coping

with broader cultural changes.


Embracing natural divisions from the larger culture

may lead to difficulty in international operations.


Organizational Behavior: Chapter 19 612

Study Question 1: What is organizational culture?


Taylor Coxs five step program.
Step 1: The organization should develop pluralism. Step 2: The organization should fully integrate its

structure. Step 3: The organization must integrate the informal networks. Step 4: The organization should break the linkage between naturally occurring group identity and organizational identity. Step 5: The organization must actively work to eliminate identity-based interpersonal conflict.
Organizational Behavior: Chapter 19 613

Study Question 2: How do you understand an organizational culture?

Organizational Behavior: Chapter 19

614

Study Question 2: How do you understand an organizational culture?


Sagas.
Heroic accounts of organizational accomplishments.

Rites.
Standardized and recurring activities that are used at

special times to influence organizational members.

Rituals.
Systems of rites.

Cultural symbols.
Any object, act, or event that serves to transmit

cultural meaning.
Organizational Behavior: Chapter 19 615

Study Question 2: How do you understand an organizational culture? Culture often specifies rules and roles.
Rules.
The various types of actions that are appropriate.

Roles.
Where individual members stand in the social

system.

Organizational Behavior: Chapter 19

616

Study Question 2: How do you understand an organizational culture? Shared values.


Help turn routine activities into valuable and

important actions.
Tie the organization to the important values of

society.
May provide a very distinctive source of

competitive advantage.
Organizational Behavior: Chapter 19 617

Study Question 2: How do you understand an organizational culture? Characteristics of strong corporate cultures.
A widely shared real understanding of what

the firm stands for, often embodied in slogans. A concern for individuals over rules, policies, procedures, and adherence to job duties. A recognition of heroes whose actions illustrate the companys shared philosophy and concerns.
Organizational Behavior: Chapter 19 618

Study Question 2: How do you understand an organizational culture? Characteristics of strong corporate cultures (cont.).
A belief in ritual and ceremony as important to

members and to building a common identity. A well-understood sense of the informal rules and expectations so that employees and managers know what is expected of them. A belief that what employees and managers do is important and that it is essential to share information and ideas.
Organizational Behavior: Chapter 19 619

Study Question 2: How do you understand an organizational culture? Organizational myths.


Unproven and often unstated beliefs that are

accepted uncritically. Myths enable managers to redefine impossible problems. Myths can facilitate experimentation and creativity. Myths allow managers to govern.
Organizational Behavior: Chapter 19 620

Study Question 2: How do you understand an organizational culture? National culture influences.
Widely held common assumptions may be

traced to the larger culture of the host society.


National cultural values may become

embedded in expectations of organization members.


Organizational Behavior: Chapter 19 621

Study Question 3: How can the organizational culture be managed?


Strategies for managing corporate culture.
Managers help modify observable culture,

shared values, and common assumptions directly.


Use of organizational development techniques

to modify specific elements of the culture.

Organizational Behavior: Chapter 19

622

Study Question 3: How can the organizational culture be managed?


Why a well-developed management philosophy is important.
Establishes generally understood boundaries

on all members of the firm. Provides a consistent way for approaching new and novel situations. Helps hold individuals together by showing them a known path to success.
Organizational Behavior: Chapter 19 623

Study Question 3: How can the organizational culture be managed?


Strategies for building, reinforcing, and changing organizational culture.
Directly modifying the visible aspects of culture. Changing the lessons to be drawn from common

stories.
Setting the tone for a culture and for cultural change. Fostering a culture that addresses questions of external

adaptation and internal integration.


Organizational Behavior: Chapter 19 624

Study Question 3: How can the organizational culture be managed?


Mistakes that managers can make in building, reinforcing, and changing culture.
Trying to change peoples values from the top

down:
While keeping the ways in which the organization

operates the same.


Without recognizing the importance of individuals. Attempting to revitalize an organization by

dictating major changes and ignoring shared values.


Organizational Behavior: Chapter 19 625

Study Question 4: How can you use organization development to improve the firm?

Organization development (OD).


The application of behavioral science

knowledge in a long-range effort to improve an organizations ability to cope with change in its external environment and to increase its internal problem-solving capabilities.
Organizational Behavior: Chapter 19 626

Study Question 4: How can you use organization development to improve the firm?

Organizational development.
Designed to work on both issues of external

adaptation and internal integration.


Used to improve organizational performance. Seeks to achieve change so the organizations

members maintain the culture and longer-run organizational effectiveness.


Organizational Behavior: Chapter 19 627

Study Question 4: How can you use organization development to improve the firm? Underlying assumptions of OD.
Individual level. Respect for people and their capabilities.

Group level.

Belief that groups can be good for both people and organizations.
Organizational level.

Respect for the complexity of an organization as a system of interdependent parts.


Organizational Behavior: Chapter 19 628

Study Question 4: How can you use organization development to improve the firm?

Organization development goals.


Outcome goals.
Mainly deal with issues of external adaptation.

Process goals.
Mainly deal with issues of internal integration.

Organizational Behavior: Chapter 19

629

Study Question 4: How can you use organization development to improve the firm? In pursuing outcome and process goals, OD helps by:
Creating an open problem solving climate. Supplementing formal authority with knowledge and

competence. Moving decision making where relevant information is available. Building trust and maximizing collaboration. Increasing the sense of organizational ownership. Allowing people to exercise self-direction and selfcontrol.
Organizational Behavior: Chapter 19 630

Study Question 4: How can you use organization development to improve the firm?

Action research.
The process of systematically collecting data

on an organization, feeding it back to the members for action planning, and evaluating results by collecting and reflecting on more data after the planned actions have been taken.
Organizational Behavior: Chapter 19 631

Study Question 4: How can you use organization development to improve the firm?

Organizational Behavior: Chapter 19

632

Study Question 4: How can you use organization development to improve the firm?

Organizational Behavior: Chapter 19

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Study Question 4: How can you use organization development to improve the firm?

Organizationwide OD interventions.
Survey feedback. Collection and feedback of data to organization members for action planning purposes. Confrontation meetings. Activities for quickly determining how an organization can be improved and taking initial actions for betterment.

Organizational Behavior: Chapter 19

634

Study Question 4: How can you use organization development to improve the firm?

Organizationwide OD interventions (cont.).


Structural redesign. Realigning the organizations structure or major subsystems. Collateral organization. Using representative organizational members in periodic small group problem-solving sessions.
Organizational Behavior: Chapter 19 635

Study Question 4: How can you use organization development to improve the firm?

Group and intergroup OD interventions.


Team building. Activities to improve the functioning of a group. Process consultation. Activities to improve the functioning of key group processes. Intergroup team building. Activities to improve the functioning or two or more groups.
Organizational Behavior: Chapter 19 636

Study Question 4: How can you use organization development to improve the firm?

Individual OD interventions.
Role negotiation. Clarifying expectations in working relationships. Job redesign. Creating long-term congruence between individual goals and organizational career opportunities. Career planning. Structured opportunities for individuals to work with managers or staff experts on career issues.
Organizational Behavior: Chapter 19 637

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