Organizational Behavior: Managing People and Organizations 13th Edition Instructor Manual
Chapter One An Overview of Organizational Behavior
Chapter Overview .......................................................................................................... 2 Learning Outcomes....................................................................................................... 3 Real-World Challenge: Managing Growth at Google ................................................. 3 Chapter Outline ............................................................................................................. 4 I.
WHAT IS ORGANIZATIONAL BEHAVIOR? ........................................................ 4
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THE MANAGERIAL CONTEXT OF ORGANIZATIONAL BEHAVIOR ............. 6
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THE STRATEGIC CONTEXT OF ORGANIZATIONAL BEHAVIOR ................. 7
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CONTEXTUAL PERSPECTIVES ON ORGANIZATIONAL BEHAVIOR ........... 9
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MANAGING FOR EFFECTIVENESS .............................................................. 10
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THE FRAMEWORK OF THE BOOK ............................................................... 13
Summary and Application .......................................................................................... 13 Discussion Questions................................................................................................. 14 Understand Yourself Exercise—Global Mindset ...................................................... 15 Group Exercise—Managing A Successful Restaurant ............................................ 15 Video Exercises ........................................................................................................... 16
Chapter Overview Managers strive to make their organizations as effective and successful as possible. To do this, they rely on assets such as financial reserves and earnings, technology and equipment, raw materials, information, and operating systems and processes. At the center of everything are the employees who work for the organization. It is usually their talent, effort, skill, and ability that differentiate effective from less effective organizations. It is critical, then, that managers understand how the behaviors of their employees impact organizational effectiveness. In general, managers work to enhance employee performance behaviors, commitment and engagement, and citizenship behaviors and to minimize various dysfunctional behaviors. A number of environmental, individual, group and team, leadership, and organizational characteristics can make the managers’ work easier or more difficult, depending on how well they understand organizational behavior. This model will be more fully developed in Chapter 1 and will serve as a roadmap for your study of organizational behavior throughout this book. Regardless of their size, scope, or location, all organizations have at least one thing in common—they are comprised of people. It is these people who make decisions about the strategic direction of a firm, it is they who acquire the resources the firm uses to create new products, and it is they who sell those
products. No matter how effective a manager might be, all organizational successes—and failures—are the result of the behaviors of many people. Indeed, no manager can succeed without the assistance of others. This book is about those people. It is also about the organization itself and the managers who operate it. Together, the study of organizations and the study of the people who work in them constitute the field of organizational behavior. Our starting point in exploring this field begins with a more detailed discussion of its meaning and its importance to employees, business owners, and managers. The primary purpose of this chapter is to introduce the field of organizational behavior. The chapter begins by defining organizational behavior as the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself. The four functions that make up the manager’s job—planning, organizing, leading, and controlling—are discussed. Then the chapter explores the various skills—technical, interpersonal, conceptual, and diagnostic—managers must apply in organizations. The chapter then discusses human resource management. The strategic context of organizational behavior is discussed, including maintaining a competitive advantage, sources of competitive advantage, and types of business strategies. The next section provides some historical context on organizational behavior, looking at scientific management, the Hawthorne effect, and the human relations movement. The chapter continues by defining a system and systems perspective, the situational perspective, and interactionalism. The chapter continues by examining the outcomes—individual, group and team, and organization—that are important for organizational effectiveness, including the scientific method and meta-analysis. The chapter concludes with a preview of the remaining text.
Learning Outcomes After studying this chapter, students should be able to: 1. Define organizational behavior and describe how it impacts both personal and organizational success. 2. Identify the basic management functions and essential skills that comprise the management process and relate them to organizational behavior. 3. Describe the strategic context of organizational behavior and discuss the relationships between strategy and organizational behavior. 4. Identify and describe contextual perspectives on organizational behavior. 5. Describe the role of organizational behavior in managing for effectiveness and discuss the role of research in organizational behavior. 6. Summarize the framework around which this book is organized.
Real-World Challenge: Managing Growth at Google Summary: Google’s popular search engine was created in 1998 with the goal of making the world’s information available to everyone. Google’s explosive growth needed to be closely monitored, and its employees needed to continue feeling like an important part of the team. The founders wanted to make Google an engaging place to work and set out to design the organization and its culture in a way that would appeal to its current and future employees. Real-World Challenge: What advice would you give them about the role of its people in its future success and how to set up the company to maximize employee innovation, trust, and loyalty? Real-World Response: Between 1998 and 2018, Google’s rapid growth presented tremendous challenges in integrating new employees while motivating them to be innovative, productive, and loyal to
the fast growing company. The founders believed that people thrive in and are loyal to their jobs when they feel fully supported and authentically valued. This understanding led to the development of a culture anchored by trust, transparency, and inclusion. Google is now known for offering its employees a wide variety of perks. Google regularly surveys employees about their managers, using the information to publicly recognize the best ones and give the worst managers intensive coaching and support that helps 75 percent of them improve within three months. Google also hires smart, ambitious people who share the company’s goals and vision and maintains an open culture in which employees feel comfortable sharing opinions and ideas. Google’s proactive efforts to be an engaging and inspiring place for its employees have both helped the company succeed and made it a staple on various “most desired employer” lists, including being named the #1 Best Place to Work by Fortune in 2017.
Chapter Outline I.
WHAT IS ORGANIZATIONAL BEHAVIOR? A. The Meaning of Organizational Behavior Organizational behavior (OB) is the study of human behavior in organizational settings, the interface between human behavior and the organization, and the organization itself. All three are ultimately necessary for a comprehensive understanding of OB. OB helps explain and predict how people and groups interpret events, react, and behave in organizations and describes the role of organizational systems, structures, and process in shaping behavior. Figure 1.1 illustrates this view of OB. B. How Organizational Behavior Impacts Personal Success The core of OB is being effective at work. Since most people reading this book are either present or future managers, we take a managerial perspective of the field. Using your knowledge of OB can help you to succeed faster in any organization or career. The study of OB can greatly clarify the factors that affect how managers manage. Hence, the field attempts to describe the complex human context of organizations and to define the opportunities, problems, challenges, and issues associated with that realm. C. How Organizational Behavior Impacts Organizational Success Organizations as a whole also benefit from OB. By appropriately applying OB knowledge about individuals, groups, and the effect of organizational structure on worker behavior, the conditions can be created that make organizations most effective. OB also helps companies perform well. In addition to financial performance and job satisfaction, OB also influences absenteeism and turnover. Reducing absenteeism and turnover can be worth millions of dollars to organizations through increased productivity and customer service and decreased staffing costs.
One central value of OB is that it isolates important aspects of the manager’s job and offers specific perspectives on the human side of management: people as organizations, people as resources, and people as people.
Group Exercise—What Does Culture Mean To You? Learning Objective: Explain how societal culture affects how people interpret others and how others interpret them. Summary: This exercise is done as a class, and the instructor plays the role of class secretary. First working alone, students think about what “societal culture” means. For five minutes, they think about their own culture. They define a word and then write down the cultural dimensions to describe it. After five minutes, students share their ideas, which the instructor records. Students identify categories for placing the ideas. They then answer the following questions as a class. Task: 1. 2. 3. 4.
How might multiculturalism create a competitive advantage for an organization? What categories are the most important to teams working in organizations? What categories are the least important to teams working in organizations? What does your list suggest that managers wanting to promote a multicultural workplace might do?
Video Exercises Videos and questions can be found in the eBook and MindTap video folder.
Ethical Decision Making at Black Diamond Equipment Summary: Black Diamond Equipment specializes in climbing and skiing equipment. The global company looks for employees who share the company’s attitude, values, and passion toward outdoor sports and ethical values. Black Diamond also promotes fair labor practices, sustainability, and low environmental impact. Task: As a class, watch “Black Diamond Equipment” and then individually consider the following questions. After you have come up with your own ideas, form groups of four to five people and discuss your insights. Be sure to nominate someone to serve as a spokesperson to share your ideas with the class. 1. How does Black Diamond integrate social responsibility into its culture? The founders of Black Diamond began a culture of respect for people and the Earth early in the process of beginning the business. Social responsibility is fully integrated into Black Diamond’s business priorities, relevant to achieving business objectives, inclusive of both internal and external stakeholder needs, and consistent with the firm’s cultural values and brand identity. Black Diamond respects its employees and has a passion for outdoor extreme sports. The company attracts employees who have the same values. 2. How does the global nature of the company and its markets influence how it thinks about employee diversity? Black Diamond naturally has to take a global view of its market in order to have a viable market size. Selling to customers in one country would not be enough, Black Diamond needs that conglomerate market. In order to be a truly global company and not just a company that sells globally, the management team is a collection of individuals from different countries. This group is integrated into decision making and product development. This keeps the needs of various cultures at the focus of
developing products. Black Diamond would lose these global perspectives if they had a management team comprising individuals from one country. 3. How would you describe Black Diamond’s ethics in terms of how it treats its employees at the company’s factory partners in Vietnam, China, and Bangladesh? Do you think that it is appropriate for firms like Black Diamond to scrutinize its partner factories like this? Why or why not? Black Diamond holds high ethical standards for the treatment of its employees in the company’s factory partners. Black Diamond runs a certification program for these factories that must pass certain basic needs, such as a ventilated and well-lit factory. The company also offers English language programs, extra money for education, and more importantly, human respect. Student’s answers may vary on whether they feel scrutiny is important. I feel scrutiny is important and it must be a continuous process, not a one-time inspection. The responsibility for how the company treats employees rests ultimately with top management. Control measures such as the certification process is one way for owners to know that their partners share their values. Now What? Imagine trying to write a project status report for Happy Time Toys with three other team members when an older team member tries to take the project over, believing that you’re too inexperienced to do a good job. What do you say or do? Go to this chapter’s “Now What?” video, watch the challenge video, and choose a response. Be sure to also view the outcomes of the two responses you didn’t choose. OB Concepts Applied: surface-level diversity; relational demography; managing age in the workplace; effects of age differences that violate social status norms; diversity as a source of competitive advantage; relationship conflict; inclusion; information processing; social categorization theory; stereotypes; culture of inclusion Discussion Questions 1. What type(s) of barriers to inclusion exist for this group? Relational demography refers to a group member’s similarities to and differences from other group members. Bill is older and more experienced than Allison and Alex and perceives himself to be different from them. This awareness leads to a haughty attitude. “I know a lot more than you do, and I’ve written many of these—You kids can get back to your regular work.” In fact, Bill feels like a token because he is in the numerical minority in a group based on the characteristic of age. The group is experiencing task conflict that refers to conflict over issues, such as deadlines and work processes. Educational diversity is associated with greater task conflict (incorrect response #1). Bill feels that his experience gives him superior skills in writing reports. “I’ve written many of these—I’ll have no problem getting it done.” Alex and Allison feel more qualified to write the report and try to exclude Bill. “We came out of the best universities and have more current knowledge than you do.” Other sources of conflict include both surface-level diversity, visible differences in people, including age, and deep-level diversity, invisible differences such as knowledge. Bill is much older than Alex and Allison, but they have greater expertise in marketing and sales. 2. How can diversity be leveraged as a source of competitive advantage for this group?
Diversity can be a source of competitive advantage because group members can use their diverse backgrounds to develop a more comprehensive view of a problem, create a broader list of possible solutions, and offer a wider variety of information and expertise. Alex suggests that the group divides up the report based on each member’s area of expertise. Allison drafts the sales section, Alex drafts the marketing and financials sections, and Bill handles competitor analysis. Research shows that innovative companies intentionally use heterogeneous teams to solve problems. 3. If you were the CEO of Happy Time Toys, how would you create a culture of inclusion to help your company realize the benefits of not only age-related diversity but all types of diversity? If diverse employees are excluded from decision making or are marginalized (incorrect response #2), their potential contributions are not realized. Alex says to Bill, “You do have more experience than we do writing this report. It probably will be better if you write it.” However, Bill didn’t have a good mastery of the marketing plan and couldn’t finish the report on time. As a result, all three group members received disappointing performance evaluations because the report was supposed to be a team effort. Inclusion refers to the sense of being safe, valued, and engaged in a group regardless of differences from other group members. To create a culture of inclusion, Happy Time Toys should highlight the strengths of each employee through increased involvement. Alex could further develop marketing and financial expertise through seminars, continuing education, and challenging assignments. It is essential that the company avoids barriers to inclusion such as stereotyping others based on age. Bill thought Alex and Allison were “kids” who didn’t know anything. Alex and Allison thought Bill’s knowledge was dated because they perceived him as an old person. Stereotypes are both negative and erroneous—as new graduates from the best universities, Alex and Allison knew more than Bill about marketing, finance, and sales, but Bill knew more about writing the report. Happy Time Toys should also avoid the barrier to inclusion called “a perceived threat of loss.” Since Bill has been the predominant employee for years, he feels angry if he perceives that younger employees pose a direct threat to his career opportunities. He wanted to write the report himself because he felt the need to protect his career by impeding the careers of Alex and Allison (incorrect response #1). Ultimately, the three employees collaborated on the report and achieved inclusiveness.
Chapter Three Individual Differences Chapter Overview Error! Bookmark not defined. Learning Outcomes
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Real-World Challenge: Individual Differences That Make a Difference at Southwest Airlines 40 Chapter Outline
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People in Organizations .................................................................................... 40
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Personality and Individual Behavior ............................................................ 42
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Other Important Personality Traits ............................................................... 44
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Intelligence ..................................................................................................... 47
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Learning Styles .............................................................................................. 51
Summary and Application Discussion Questions
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Understand Yourself Exercise—Work Locus of Control Group Exercise—Strengths-Based Development Video Exercises
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Chapter Overview Chapter 1 showed how managers strive to enhance performance behaviors, enhance commitment and engagement, promote citizenship behaviors, and minimize dysfunctional behaviors by their employees. Chapter 2 identified how various environmental factors—diversity, globalization, technology, ethics, and new employment relationships—all impact organizational behavior (OB). The text now turns to part two with a fundamental question underlying OB: Why do individuals do what they do? Chapter 3 identifies and discusses critical individual characteristics that affect people’s behaviors in organizations. The discussion of other important individual characteristics is continued in Chapter 4. Core theories and concepts that drive employee motivation are introduced and discussed in Chapter 5. Finally, in Chapter 6 we focus on how managers can implement motivation theories and concepts. In this chapter, we explore some of the key characteristics that differentiate people from one another in organizations. We first introduce the essential nature of individual differences and how people “fit” as individuals in organizations. We then look at personality frameworks that shed considerable light on different personality profiles. Next, we examine other specific personality traits and discuss different types of intelligence. We close this chapter with an examination of different styles for processing information and learning.
Learning Outcomes After studying this chapter, students should be able to: 1. Explain the nature of individual differences, the concept of fit, and the role of realistic job previews. 2. Define personality and describe general personality frameworks and attributes that affect behavior in organizations. 3. Identify and discuss other important personality traits that affect behavior in organizations. 4. Discuss different kinds of intelligence that affect behavior in organizations. 5. Describe different learning styles that influence how people process information and that affect behavior in organizations.
those rewards are to each person, measure the various expectancies, and finally adjust the relationships to create motivation. Nevertheless, expectancy theory offers several important guidelines for the practicing manager. The following are some of the more fundamental guidelines: 1. 2. 3. 4. 5. 6. 7.
Determine the primary outcomes each employee wants. Decide what levels and kinds of performance are needed to meet organizational goals. Make sure the desired levels of performance are possible. Link desired outcomes and desired performance. Analyze the situation for conflicting expectancies. Make sure the rewards are large enough. Make sure the overall system is equitable for everyone.
Case Study: Pride-Building at Aramark Summary: With 270,000 employees in 22 countries, Aramark wanted to better motivate its employees who clean airplanes for Delta and Southwest Airlines. Turnover of the low-paid, largely immigrant staff was high while morale was low. Wallets and other valuables left on planes disappeared. After 5 years of efforts to increase motivation, revenue rose from $5 million to $14 million. 1. What motivation theories apply to the workers at Aramark? According to the two-factor theory, hygiene factors such as good working conditions (English and citizenship classes, babysitting, computer training) do not cause job satisfaction. However, if working conditions are poor, employees are dissatisfied and quit, have low morale, or steal. Hygiene factors correspond to Maslow’s lower-level physiological, safety, and social needs and Alderfer’s existence and relatedness needs. 2. If you were the manager of these employees, what would you do to motivate them? Be honest regarding your personal management style and beliefs rather than trying to be like Roy Pelaez. Students may find what motivates different employees in different countries and try to add those components into the job. For those who want career advancement, students may suggest enlarging the job to add decision making, increased responsibility, and training. For those who require more family time, students may suggest redesigning the job to include flextime and job sharing. 3. What are some possible barriers to the effectiveness of your motivation ideas? What could you do to overcome them? Many low-paid, immigrant employees are motivated by higher wages, and during difficult economic times, salary increases may not be realistic. In place of a raise, benefits could be offered. For example, employees could be given gift cards to a grocery store. IV.
LEARNING-BASED PERSPECTIVES ON MOTIVATION Learning is another key component in employee motivation. Learning is a relatively permanent change in behavior or behavioral potential that results from direct or indirect experience. A. How Learning Occurs
1. The Traditional View: Classical Conditioning The most influential historical approach to learning is classical conditioning, developed by Ivan Pavlov in his famous experiments with dogs. Classical conditioning is a simple form of learning in which a conditioned response is linked with an unconditioned stimulus. In organizations, however, only simple behaviors and responses can be learned in this manner. But this form of learning is obviously simplistic and not directly relevant to motivation. For one thing, classical conditioning relies on simple cause-and-effect relationships between one stimulus and one response; it cannot deal with the more complex forms of learned behavior that typify human beings. For another, classical conditioning ignores the concept of choice; it assumes that behavior is reflexive, or involuntary. 2. The Contemporary View: Learning as a Cognitive Process Contemporary learning theory generally views learning as a cognitive process; that is, it assumes that people are conscious, active participants in how they learn. First, the cognitive view suggests that people draw on their experiences and use past learning as a basis for their present behavior. These experiences represent knowledge, or cognitions. Second, people make choices about their behavior. Third, people recognize the consequences of their choices. Finally, people evaluate those consequences and add them to prior learning, which affects future choices. B. Reinforcement Theory and Learning In its simplest form, reinforcement theory suggests that behavior is a function of its consequences. Reinforcement theory also suggests that in any given situation, people explore a variety of possible behaviors. Future behavioral choices are affected by the consequences of earlier behaviors. C. Social Learning Social learning occurs when people observe the behaviors of others, recognize their consequences, and alter their own behavior as a result. (Some experts refer to social learning as social cognitive theory.) Social learning theory suggests that individual behavior is determined by a person’s cognitions and social environment. More specifically, people are presumed to learn behaviors and attitudes at least partly in response to what others expect of them. Several conditions must be met to produce an appropriate environment for social learning: First, the behavior being observed and imitated must be relatively simple.
Second, social learning usually involves observed and imitated behavior that is concrete, not intellectual. Finally, for social learning to occur, we must possess the physical ability to imitate the behavior observed. Social learning influences motivation in a variety of ways. Many of the behaviors we exhibit in our daily work lives are learned from others. D. Behavior Modification Behavior modification is the application of reinforcement theory to influence the behaviors of people in organizational settings. Figure 5.7 summarizes these kinds of reinforcement. 1. Kinds of Reinforcement There are four types of reinforcers, as shown in Figure 5.7. Positive reinforcement involves the use of rewards to increase the likelihood that a desired behavior—high performance, for instance—will be repeated. Negative reinforcement is based on the removal of current or future unpleasant consequences to increase the likelihood that someone will repeat a behavior. In other words, avoidance or removal of something undesirable can be motivating. Punishment is the application of negative outcomes to decrease the likelihood of a behavior. For example, a manager might reduce the work hours of low-performing employees. Finally, extinction involves the removal of other reinforcement (positive or negative) following the incidence of the behavior to be extinguished to decrease the likelihood of that behavior being repeated. For reinforcement to work, people must associate the reward with the behavior. In other words, people need to know exactly why they are receiving a reward. To best reinforce a behavior, the reward should come as quickly as possible after the behavior. Some of the most powerful rewards are symbolic—things that cost very little but mean a lot to the people who get them. Examples of symbolic rewards are things like plaques or certificates. Rewards also impact ethical behavior choices. Rewards do not always increase ethical behavior because the presence of the reward can undermine the intrinsic value of the ethical behavior. 2. The Timing of Reinforcement Reinforcement should ideally come immediately after the behavior bring influenced. It is useful to understand the various schedules that can be used to provide reinforcement.
A continuous reinforcement schedule is one in which the desired behavior is reinforced each time that it occurs. A partial reinforcement schedule is one in which the desired behavior is reinforced only part of the time. There are four types of partial reinforcement schedules: 1. Fixed-ratio: Desired behavior is reinforced after a specified number of correct responses—for example, receiving pay bonuses for every ten error-free pieces made per hour. 2, Fixed-interval: Desired behavior is reinforced after a certain amount of time has passed—for example, receiving weekly paychecks. 3. Variable-ratio: Desired behavior is reinforced after an unpredictable number of behaviors—for example, a supervisor praises a call center representative after the third call, then the seventh call after that, and then the fourth call after that. 4. Variable-interval: Desired behavior is reinforced after an unpredictable amount of time has elapsed—for example, not knowing when a regional supervisor will visit your location for an inspection. Fixed-ratio schedules produce a high, consistent rate of responding with desired behaviors but with fast extinction when the reinforcement stops. Research suggests that the fastest way to get someone to learn is to use continuous reinforcement and reinforce the desired behavior every time it occurs. The most effective schedule for sustaining a behavior is variable reinforcement. In terms of behavior modification, any behavior can be understood as being a result of its consequences. To motivate the right behavior, an expert in behavior modification would identify the desired behaviors and then carefully reinforce them. This process involves five steps: 1. 2. 3. 4.
Define the problem—what is it that could be improved? Identify and define the specific behavior(s) you wish to change. Record and track the occurrence of the target behavior. Analyze the current negative consequences of the undesired behavior and arrange for more positive consequences to follow the desired behavior. 5. Evaluate whether the behavior has improved, and by how much. This chapter has covered a variety of theories that can be used by managers to motivate employee performance. Table 5.1 summarizes how different motivation concepts covered in this chapter can be applied to a variety of common management challenges. Understanding why and how a motivational perspective works helps managers better match motivational techniques with motivation opportunities and enhances the likelihood of success.
Summary and Application Motivation is the set of forces that cause people to behave as they do. Motivation starts with a need. People search for ways to satisfy their needs and then behave accordingly. Their behavior results in
Now What? Imagine Happy Time Toys has been making changes to both toy product lines and quality goals. You find yourself listening to a coworker exhibiting resistance to Happy Time Toys’ quality and production goals for a new product line. She complains about the changes and states that the product is tricky to assemble and the goals are unrealistic. Also, because of recent changes, the coworker believes that the company is too concerned about quality at the expense of productivity. The coworker feels that the company could make a lot more money if they let some of the team’s borderline products go through. The coworker is going to continue to tell the team to pass borderline products to help the team meet its production goals to earn the bonus. This would reduce the employees’ stress and, after all, the products are not that bad. What do you say or do? Go to this chapter’s “Now What?” video, watch the challenge video, and choose a response. Be sure to also view the outcomes of the two responses you didn’t choose. Discussion Questions 1. What types of resistance to change did you see in the various situations? Organizational sources include a narrow focus of change. The company may have predicted their current production staff could produce the products but, in fact, the production staff needed an extra person to meet their goals. It also seems there may have been some group inertia as no group member suggested any changes until Allison asked for employee input. Individual sources of resistance to change could include habit as employees were used to a relatively easy assembly process and now faced a tougher assembly process. Economic factors could play a part as employees were becoming frustrated thinking they were going to lose their bonuses for reasons beyond their control. 2. How did Alex unfreeze Allison’s perspective and what impact did that have? Allison thought the only way to meet production goals was to slip through some slightly defective products. Alex reminded her that defective products could hurt the company’s image for a long time and suggested asking the team for input. Allison was trying to solve the problem on her own but asking for input allowed a solution that was ultimately best for Happy Time Toys. 3. Using concepts from the chapter, what would you have done to make the transition to the new product line go more smoothly? Management could have anticipated the change of duties for production staff and helped them through the changes by providing additional resources and communication. Including production staff in the transition would have been best. Open communication between production staff and management is essential during any new product introduction. Some type of reward system for contributors to a smooth transition may help motivate production staff.