Transcript Kreitner

Organizational
Behavior: The
Quest for PeopleCentered
Organizations and
Ethical Conduct
Chapter 1
McGraw-Hill/Irwin
Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
© 2008The McGraw-Hill Companies, Inc. All rights reserved.
Ch. 1 Learning Objectives
1. Define the term organizational behavior and contrast
McGregor's Theory X and Y assumptions about
employees
2. Identify the four principles of total quality
management
3. Define the term e-business and specify OB-related
issues raised by e-leadership
4. Contrast human and social capital and explain why
we need to build both
5. Define management and identify managerial skills of
effective managers
1-2
Ch. 1 Learning Objectives (con’t)
6. Characterize 21st century managers
7. Describe Carroll’s global corporate social
responsibility pyramid, and discuss the problem of
moral erosion.
8. Identify four of the seven general ethical principles,
and explain how to improve an organization’s
ethical climate
9. Describe the sources of organizational behavior
research evidence
1-3
Your Experience
Do you feel that you have worked in a
people-centered workplace?
•A=Yes, B=No
If yes, what people-centered
characteristics did the workplace have?
If no, what were the workplace
characteristics that did not make it
people-centered?
1-4
What is Organizational Behavior?
An interdisciplinary field
dedicated to better
understanding and
managing people at work
Why study OB?
• To interact more effectively
with others in
organizations
I’m a finance major, why do
I need to know this?
• People skills complement
technical skills
1-5
History of Organizational Behavior
Human Relations Movement
The Quality Movement
E-Business Revolution
Human and Social Capital
1-6
Human Relations Movement
Inspired by legalization of unionmanagement collective bargaining in the US
(1935)
Hawthorne Studies
•Supportive management
Mayo and Follett
•“Pull” don’t “push”
1-7
Test Your Knowledge
What percentage of the American workforce
do NOT utilize their full capabilities on the
job?
A. 10%
B. 35%
C. 50%
D. 75%
1-8
McGregor’s Theory X & Theory Y
Theory X
• Most people dislike
work and want to
avoid it
• People require close
direction
• People want to avoid
responsibility and
have little ambition
Theory Y
• Work is a natural activity
• People can be selfdirected if they are
committed to the objective
• Rewards help
commitment
• Most employees accept
and seek responsibility
• Employees have
imagination, ingenuity
and creativity
1-9
The Quality Movement
Total Quality Management (TQM)
• An organizational culture dedicated to training,
continuous improvement, and customer satisfaction
Employee-driven, customer-focused
Basic Principles
• Do it right the first time to eliminate costly rework
• Listen to and learn from customers and employees
• Make continuous improvement an everyday matter
• Build teamwork, trust, and mutual respect
1-10
E-Business Revolution
E-Business – running the entire business via
the internet
Implications for organizational behavior and
leaders?
•More and faster communication with others
•More potential for damage by unethical
leaders
•Enables the existence of networks that go
across traditional organizational boundaries
1-11
Human and Social Capital
Human Capital the
productive potential of an
individual’s knowledge
and actions
Social Capital productive
potential resulting from
strong relationships,
goodwill, trust, and
cooperative effort
Mitre, McLean, VA
• Pays university
professors to conduct a
Master’s in Systems
Engineering program for
employees
Cisco Systems, San Jose, CA
• Sponsors “Nerd lunches”
to discuss latest topics in
technology
1-12
Management
Process of working with and through others
to achieve organizational objectives efficiently
and ethically
What skills are exhibited by an effective
manager?
21st Century managers have to play chess, not
checkers
1-13
Test Your Knowledge
True (A) or False (B)?
1. Effective managers tend to have high skills
mastery.
2. Derailed managers underestimate their skills
mastery.
3. Effective female and male managers have
significantly different skill sets.
1-14
Evolution of 21st-Century Managers
Primary Role
Past Managers
Future Managers
Cultural Orientation
Monocultural,
monolingual
Multicultural, multilingual
Source of influence
Formal authority
Technical knowledge
and interpersonal
skill
View of people
Potential problem
Primary resource;
human capital
Decision-making
style
Limited input for
individual decisions
Broad-based input
for joint decisions
Ethical
considerations
Afterthought
Forethought
1-15
The Ethics Challenge
“In the Post Enron, post-bubble world,
there’s a yearning for corporate values
that reach higher than the size of the
CEO’s paycheck or even the latest stock
price. Trust, integrity and fairness do
matter, and they are crucial to the
bottom line.”
Source: Excerpt from J A Byrne, “After Enron: The Ideal Corporation,” Business Week, August 26, 2002, p. 68
1-16
For Discussion: Your Opinion
Which statement best represents
your opinion?
A.Companies primary goal should
be to maximize profits
B.Companies have an obligation to
the societies in which they
operate, even if profits suffer
1-17
Corporate Social Responsibility Pyramid
Source: Carroll, A. B. “Managing Ethically with Global Stakeholders: A present and future challenge,
Academy of Management Executive, May 2004, p. 116.
1-18
Ethical Lapses in the Workplace
Ethical Lapse
1.
2.
3.
4.
5.
Occasional observed
unethical behavior
Job applicants misinformed about financial
condition of company
Applicants who lied about
their work histories
Applicants who lied about
their education
Applicants who lied about
their credentials/licenses
% Reported in Recent Studies
A.
B.
C.
D.
E.
23%
44%
62%
64%
41%
1-19
General Moral Principles
Dignity of human
life
Autonomy
Honesty
Loyalty
Fairness
Humaneness
The common good
1-20
Improving On-the-Job Ethics
Behave ethically
yourself
Screen potential
employees
Develop a Meaningful
Code of Ethics
• What constitutes a
meaningful code of
ethics?
1-21
Improving On-the-Job Ethics
Provide ethics training
Reinforce ethical
behavior
Create positions, units,
and other structural
mechanisms to deal
with ethics
Eliminate need for
whistle-blowing
1-22
Roadmap for This Course
1-23
How do we learn about OB?
Three Approaches:
•Theory – ideas about what happens and why
•Research – testing theoretical ideas
•Practice – learning from what has and has not
worked
Contingency Approach
•All three provide valuable information for
understanding and managing organizational
behavior
1-24
Five Sources of OB Research Insights
Laboratory study
• Manipulation and measurement of variables in contrived
situations
Field study
• Examination of variables in real-life settings
Sample survey
• Questionnaire responses from a sample of people
Case Studies
• In-depth analysis of single individual, group, or
organization
Meta-analysis
• Pools the results of many studies through statistical
procedure
1-25
Test Your Knowledge
Information from which of the following is
LEAST likely to be generalizable to other
settings.
A. Meta-analysis
B. Sample surveys
C. Case-study
Why?
1-26