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1 Introduction to Organizational Behavior Ridofranz/iStock/Thinkstock Learning Objectives After reading this chapter and studying the materials, you should be able to:• Describe the essence of or ganizational beha vior.

• Explain ho w scientific management and the human r elations mo vement helped shape the field of or ganizational beha vior.

• Apply modern concepts pr esent in or ganizational beha vior t o indi vidual and managerial efforts.

• Recognize the personal and managerial skills pr esent in or ganizational beha vior that appl y t o toda y’s business en vironment.

• Identify additional tr ends that aff ect the field of or ganizational beha vior and one’s personal career .

2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Organizational Behavior Section 1.1 1.1 The Nature of Organizational Behavior Managers in or ganizations eng age in a v ariety of acti vities e very da y, among them supervising and dir ecting emplo yees. Or ganizational behavior (OB) ma y be defined as the in vestigation of the beha vioral f actors that aff ect or ganizations and their management at the indi vidual, gr oup, and or ganization-wide le vels. Or ganizational beha vior concentr ates on the people side of a business, nonpr ofit, or go vernmental entity . Unders tanding or ganizational beha vior con - cepts can help a compan y or nonpr ofit fulfill its pot ential b y cr eating a satisfying and posi- ti ve en vironment. In turn, a positi ve en vironment can lead t o pr ofitability, gr owth, and other measur es of success, ther eby connecting the human element with the oper ational elements of an or ganization (see, f or e xample, OB in Action: Quicken Loans). This t extbook e xamines the beha vioral f actors that dictat e success (or f ailure) in the w orld of commer ce and in other or ganizations at each level.

In this first chapt er, fi ve t opics ar e e xplored. This section pr ovides an o verview of or ganiza- tional beha vior along with a brief pr esentation of the disciplines r elated t o OB. A r eview of hist orical tr ends that influenced the field f ollows. Ne xt, an e xamination of the modern cont ext of management and or ganizational beha vior is pr ovided. This is f ollowed b y a discussion of some of the int erpersonal managerial skills that lead t o indi vidual success. The chapt er con - cludes with an e valuation of the cont ext in w hich business curr ently oper ates. These concepts set the stage for the remaining parts and chapters in this text. OB in Action: Quicken Loans The mort gage lending business has flourished in the Unit ed Stat es f or a v ery long time. R ecently, a new pla yer mo ved int o the mar ket and achie ved gr eat not oriety due t o both its financial achie vements and its success on a human le vel. In 2016, Quick en Loans jumped t o fifth place in F ortune’s Top 100 Companies to Work For (Fortune, 2016).

In t erms of basic statistics, the compan y pa ys 100% of emplo yee healthcar e costs, off ers health insur ance t o part-time emplo yees, pr ovides onsit e child car e, off ers compr essed w ork w eeks, pr ovides paid sabbaticals, and maintains an onsit e fitness cent er and medical assistance pr o- grams.

The compan y gr ants paid time off f or v olunteer acti vities and emphasizes non-discrim- ination while providing same-sex partnership benefits.

Beyond these eff orts, Quick en Loans has been cr edited with helping r evitalize part of the Detr oit, Michig an, metr o ar ea, w hich has suff ered hig h r ates of unemplo yment and other pr ob- lems.

Led b y CEO Dan Gilbert , the compan y f eatures a r elaxed and fun atmospher e, w hich stands in contr ast t o man y mor e “butt oned-down” companies in the industry . Inside the com - pany’s campus, a hig h-energy atmospher e is maintained with casuall y dr essed emplo yees and r ecreational amenities such as mini-basketball hoops (Gallagher & Reindl, 2013).

With Gilbert at the helm, Quick en Loans intr oduced a series of inno vative pr ograms that ha ve been r eplicated b y other or ganizations in the industry . These include mar keting and ad ver- tising campaign s designed t o attr act cust omers at the peak of the 2008– 09 mort gage crisis, paper less mort gage applications, and the curr ent R ocket Loan pr ogram, w hich mak es the mort gage appli cation pr ocess e ven f aster using an online application and near ly immediat e f eedback. (continued) \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Organizational Behavior Section 1.1 Organizational behavior is commonly known as a hy brid field, which means that those who study the topic will encounter concepts and theories generat ed in a variety of academic disci- plines. OB can also be described as “inter disciplinary” or “multidisciplinary. ” In any case, the study of org anizational behavior in the modern conte xt requir es a modest understanding of concepts gener ated in the f ollowing fields:

• psychology • social ps ychology • sociology • organization theory • human r esource management • history • research methods and statistics • anthropology Each contributes unique insights into the study of methods used to impro ve individual and org anizational perf ormance.

Psychology Psychology, the study of individual mental processes, prof oundly influences the field of org a- nizational behavior . Ps ychologists ex amine many fact ors that are part of org anizational life, including stimuli, perception, learning, personality, and motiv ation. By understanding how stimuli are percei ved, attention-getting fact ors associat ed with learning can be designed to impro ve training progr ams and creat e effecti ve wor kplace safety practices. Per ception affects the subsequent dev elopment of the attitudes, beliefs, and values that shape citizenship within the firm. Sev eral motiv ation theories that apply to the wor kplace wer e dev eloped or influ- enced b y ps ychology. OB in Action: Quicken Loans (continued) The efforts to creat e a positiv e wor k envir onment for employ ees coupled with an emphasis on community dev elopment and reno vation is responsible for the many fa vorable reactions to the company . This approach demonstr ates the value of understanding the principles of effec- ti ve beha vior management described thr oughout this t extbook.

Reflection and Application Questions 1. Which elements of the Quick en Loans emplo yment pack age ar e most appealing t o y ou?

2. How can a f avorable image in the community influence the int ernal w orkings of a company?

3. How can a fun-lo ving en vironment connect with inno vation and cr eativity? Ho w can it creat e pr oblems?

2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Organizational Behavior Section 1.1 Social Psychology Social ps ychology, or the e xamination of social f actors that influence indi vidual mental pr o- cesses, includes a s weeping number of t opics that o verlap with or ganizational beha vior. R oles and r ole theor y, t eams and gr oups, decision-making pr ocesses, leadership, and communica - tion ar e t opics studied b y both social ps ychologists and or ganizational beha viorists. R ecent contributions made b y social ps ychology t o the field of or ganizational beha vior include the concepts of so cial inf ormation pr ocessing and the natu re of inclusi ve or e xclusive language that can be used to alienate or discriminate against others. Sociology Sociology is the stud y of social or ganizations. Or ga- nizational design and structur e, r oles, and t eams and gr oups ar e subjects that sociology and or ga- nizational beha vior ha ve in common. Man y of the classic principles of or ganizational structur e first appear ed in the writings of sociologists, including Max Weber and Peter Blau.

Organization Theory A strong o verlap e xists betw een sociology and or ga- nization theor y due t o their emphasis on or ganiza- tion design issues. The primary diff erence is that or ganization theory appr oaches the t opic fr om a str onger business perspecti ve. In both sociology and or ganization theory , the or ganization consti - tutes the primary unit of anal ysis r ather than indi- vidual employees, teams, or groups.

Human Resource Management Human r esource management (HRM) and or ganiza- tional beha vior shar e a par ent field: management . Each ar ea (HRM and OB) is a management specialty .

Both e xamine the subjects of job design, union–management r elationships, and job satisf action, including the indicat ors of satisf action (r ates of absent eeism, tar diness, turn - over, accidents, grie vances, and v andalism) in the w orkplace. Man y or ganizational beha vior r esearch efforts aim at improving job satisfaction and its indicators. History The r ole of hist ory in or ganizational beha vior is r elated t o cont ext. Ear ly theories of moti va- tion and job design emer ged during the Industrial R evolution, as did ideas r egarding or ga- nizational structur e. Se veral of these concepts r esulted fr om the mo vement t o f actories and centr alized w ork places (r ather than personal homes and w orkshops). During W orld W ar II, new lea dership theories emer ged as the Unit ed Stat es go vernment soug ht t o impr ove lead - ership skills among military officers. In the 1960s, the ability t o conduct mor e sophisticat ed Fine Art Images/Fine Art Images/SuperStock Weber, like Blau, is known for his contributions to social theory.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. The Nature of Organizational Behavior Section 1.1 research and data anal ysis ar ose fr om the de velopment of comput er t echnology and lat er fr om the introduction of the Internet. Research Methods and Statistics Knowledge in the field of or ganizational beha vior ad vances thr ough quality r esearch. R esearch methods and statistics pr ograms seek t o gener ate hig h-quality e xperiments and empirical in vestigations of constructs, postulat es, h ypotheses, and theories. A c onstruct is a t erm that is used t o r epresent an unobserv able pr ocess. Moti vation and learning ar e constructs that cannot be seen but that still tak e place. F or e xample, a r esearch stud y mig ht seek t o measur e the construct of “job satisfaction” at a local hospital. In or ganizational beha vior, a quality r esearch pr oject includes r eliability, w here v ariables can be measur ed consist ently and r epeatedly. The r esearch pr oject must also possess v alid- ity, meaning that the stud y measur es the v ariable int ended t o be measur ed, and thus its find- ings can be gener alized t o other gr oups. A r esearch stud y that finds emplo yees w ho w ork the thir d sh ift in a hospital t o be mor e dissatisfied with their jobs than those w orking the first or second shifts e xhibits r eliability when the measur es of the construct “job satisf action” can be r epeated and obtain the same r esults. The stud y has v alidity w hen the finding ( greater dis- satisf action is pr esent) can be tr ansferred t o emplo yees in other settings, such as thir d-shift w orkers in manufacturing plants, restaurants, and hotels. Anthropology Anthropology contribut es t o or ganizational beha vior thr ough the emphasis on concepts such as or ganizational climat e and cultur e. The or ganizational climate, or pr evailing atmospher e within an or ganization, dic tates w hether emplo yees f eel r elaxed and accept ed or str essed and f earful. Int ernal and e xternal f orces can change the climat e of a compan y. An e xternal f actor such as a r ecession can cause or ganizational members t o w orry about losing their jobs and lea d supervisors t o e xhibit a mor e dir ective manag ement sty le. An int ernal change in cli - mate r esults w hen t op managers lea ve. Each new e xecutive will imprint his or her personality on the or ganization, ther eby causing a shift in the firm ’s en vironment.

Anthropological methods include the “r esearcher as participant” f orm of inquiry . Classic studies b y John V an Maanen in a police depar tment and R osabeth Moss Kant er in a major cor- por ation ha ve added new insig hts int o w hat happens in the w orkplace (V an Maanen, Dabbs, & F aulkner, 1982; Kant er, 1977). Both ar gue that or ganizations should be studied fr om within r ather than b y using constructs imposed from outside. Prathaan/iStock/Thinkstock The “researcher as participant” method is a form of qualitative research that requires immersion and participation in the given environment.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Historical Overview: Scientific Management and Human Relations Section 1.2 Another anthropological element, culture, also affects org anizational behavior . Cultur e at the national lev el influences many companies. The operation of a firm in Japan will likel y be quite dissimilar from that of a company in Mexico due to differ ences in national culture. Org aniza- tional culture constitutes the more enduring aspects of life within a company . A company ’s culture often begins with a founding story , such as Mark Zuck erberg’s tale at Facebook or the story of J. C. Penne y’s first retail stor e. Over time company stories, legends, language, and ritu- als e volve and then become r elatively fix ed and difficult t o change.

As this brief section indicates, org anizational behavior has been enriched by the theoretical contributions and resear ch findings from a variety of relat ed fields. More recentl y, concepts deriv ed from postmodernism, including ideas about the construction and deconstruction of language as well as views of the org anization, hegemonic processes, notions of subjectivity and identity, and cultural imperati ves hav e begun to influence thinking about what happens in the wor kplace (Baack & Prasch, 1997). Undoubtedl y the future will include ev en great er expansion int o other academic fields t o enhance understanding of or ganizational pr ocesses.

1.2  Historical Overview: Scientific Management and Human R elations Organizational behavior is a subfield of the larger field of management. The management and org anizational behavior disciplines hav e ev olved ov er time, from relati vely straig ht forw ard ideas about increasing prod uctivity to complex modern approaches. Historicall y, the scien- tific management approach was at the for efront of the study of the field of management. It was follo wed by the human relations mov ement and the subsequent transition to modern org anizational beha vior. Comprehension Exercise 1. When a concept can be studied and measured consistently and repeatedly, it exhibits a. v alidity b. reliability c. constancy d. applicability 2. The stud y of indi vidual mental pr ocesses w hich appl y t o or ganizational beha vior is part of the field of a. psychology b. sociology c. organization theory climat e d. physiology Answers: 1) b 2) a 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Historical Overview: Scientific Management and Human Relations Section 1.2 Scientific Management Historians tr ace the beginnings of the field of management t o the lat e 1800s, w hen Henry R. T owne (1886) pr esented a paper entitled “The Engineer as E conomist” t o the American Soci - ety of Mechanical Engineer s. The article ar gued that the stud y of management w as equal in importance t o the stud y of engineering, and ther efore the field should cr eate its o wn bod y of r esearch and have its own professional organizations (Bedeian, 1986).

Within a decade, mechanical engineer F rederick W . T aylor (1903, 1911/2010) de veloped the principles of scientific management, an appr oach that mer ged classic scientific principles with w hat w as kno wn abou t the pr actice of management . The f our principles ar e displa yed in T able 1.1. The use of these principles pr oduced dr amatic incr eases in pr oductivity le vels of indi vidual w orkers. One notable e xample occurr ed in the F ord Mot or Compan y with the de velopment of the assembly line, which increased both productivity and profits. Table 1.1: Taylor’s four principles of scientific management 1. Development of a true science of managing with clearly stated laws, rules, and principles that replaced rule-of-thumb methods 2. Scientific selection, training, and development of workers for specific jobs 3. Cooperation with workers to make sure work is completed using scientific principles 4. Equal division of tasks and responsibilities between workers and management Source: Adapted from A. G. Bedeian (1986). Management. Chicago, IL: The Dryden Press.

Later, F rank and Lillian Gilbr eth (1915) incorpor ated the principles of scientific management int o their time and motion stud y. B y observing w ork per formance using film and a st opwatch, the y designed more efficient methods to complete tasks. As these concepts and applications e volved in the Unit ed Stat es, Henri F ayol (1916/1949) wr ote in his nati ve F rench about the importance of the classic management functions of plan- ning, or ganizing, staffing, dir ecting, and contr olling. The ideas par alleled the principles of sci- entific management in the United States and were widely implemented throughout Europe.

At the same time, ho wever, criticisms emer ged that scientific management pr ograms dehu- manized emplo yees and cr eated s weatshop-like conditions. The U .S. go vernment and indi- vidual unions soug ht t o pr otect w orkers fr om unf air management tactics, such as the use of child labor, pa y scales not sufficient to maintain a standar d of living, and abusi ve supervisors (Majority R eport of the Sub-Committ ee on A dministration, 1912). The U .S. labor mo vement achie ved dr amatic legislati ve g ains during the scientifi c management er a. F urther, one go v- ernmental r esponse w as t o ban the use of a st opwatch t o measur e w ork output . Legislat ors ar gued it placed undue pressure on workers, almost as a form of coercion (Bedeian, 1986).

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Historical Overview: Scientific Management and Human Relations Section 1.2 The Human Relations Movement The field of org anizational behavior emerged from other aspects of man- agement follo wing a series of changes to the field of management as well as the general conduct of business. Some of the origins of org anizational behav - ior ar e credit ed t o Mary Par ker F ollett, who questioned the wisdom of scien- tific management. She argued that the sy stem ignored the human element of org anizations (Follett , 1918). Follett believ ed that impro ved communica- tion between parts of a company could be creat ed by increasing employ ee par- ticipation in the direction of the firm, especially when wor kers wer e giv en autonom y and assigned into cross- functional teams to wor k together on projects. Follett concluded that managers should serve as coaches and facilitat ors rather than as monitors and supervisors. This idea became the basis of the human r elations movement (Tonn, 2003), the focus of which is on the behaviors of people rather than solely on producti vity. Tw o important elements of the human relations mov ement include the Ha wthorne studies and Maslo w’s ideas r egarding humanism. The Hawthorne Studies The human relations mov ement in management began in earnest in 1927 with the Hawthorne studies. In the experiments, which ran from 1927 to 1932, resear chers Elton May o and Fritz Roethlisber ger alter ed differ ent fact ors, most notably the lev el of lighting, to determine the effects on w orker pr oductivity. The primary findings of the r esearch pr oject w ere as f ollows:

1. The subjects r esponded t o positi ve and pleasant int eractions with r esearchers b y increasing pr oductivity r ates on the job.

2. Some of the task s perf ormed b y supervisors w ere e ventually assumed b y entry -level employ ees, w ho also gener ated hig her le vels of pr oduction because the w orkers found the e xperience t o be “fun ” and fr ee of anxiety about being disciplined f or poor performance.

3. Workers t ended t o f orm gr oups that w ere cohesi ve and lo yal t o one another . An yone who o verproduced became a “sla ve” or “speed king” and w as der ided or e ven ph ysi- cally punched in the arm (“binging”) b y gr oup members. An yone w ho f ailed t o do his fair shar e of w ork w as labeled a “chiseler ” and admonished t o k eep up with the gr oup.

Mayo and Roethlisber ger concluded that wor kers are motiv ated by more than money . Social inter actions constitute a ke y part of the org anizational experience. Individual attitudes and collectiv e employ ee morale wer e significant determinants of producti vity lev els. The resear chers suggested company managers should account for human emotions and inter ac- tions t o achie ve hig her le vels of success (Urwick, 1960; Bedeian, 1986). Hero Images Inc./Hero Images/SuperStock Mary Parker Follett was responsible for the notion that managers ought to guide and help their employees, rather than monitor them, thereby shifting the field’s focus to human relations, and away from simple productivity.

2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Historical Overview: Scientific Management and Human Relations Section 1.2 Although criti cisms of the r esearch methods used ha ve emer ged and questions r egarding the e xact natur e of the finding s and conclusions r elated t o those findings e xist, w hat r emains clear is that the studies alt ered the course of in vestigation int o the natur e of management of social or ganizations. In essence, the r ecommendations made b y Ma yo and R oethlisberger, that managers should pa y close att ention t o the human element of their oper ations, cr eated a dr amatic impact on the fie ld of or ganizational beha vior and the pr actice of management at a more general level.

Abraham Maslow and Humanism The fie ld of or ganizational beha vior has been shaped, in part , b y the field of ps ychology, a tr end w hich incr eased during the human r elations mo vement er a. Prior t o that time, the clas - sical appr oach t o ps ychology included the belief that human natur e w as essentiall y w eak and pr one t o e vil (Hjelle & Zieg ler, 1981). Not surprising ly, fr om that v antage point , w orkers w ere view ed b y management as onl y being moti vated b y mone y (pa y) and f ear (t ermination, dock- ing pa y, pa y cuts). In essen ce, management in gener al t ook a carr ot-and-stick appr oach t o supervising entry-level employees.

Clinical ps ychologist A braham Maslo w w as among the first t o shift view s r egarding the natur e of the human e xperience. Maslo w r easoned that the ba sic inner natur e of a person is inher- entl y good, a perspecti ve w hich became kno wn as humanism . Maslo w e xpanded the ar gu- ment b y suggesting that lif e is the pr ocess of “getting bett er.” A t each new stage of lif e, the indi vidual becomes mor e concerned with connecting t o, assisting, and serving others. The ultimat e e xpression of lif e, kno wn as self-actualization , r esults fr om perf orming helpful and meaningful w ork w hile sta ying true t o one’s o wn sense of self. This count ervailing perspec- ti ve r egarding the natur e of people tr ansferred t o the w orkplace. Emplo yees could be view ed as being int elligent, inno vative, moti vated, and capable of learning and gr owth. One out come fr om this perspecti ve included new theories about the natur e of management , such as those summarized in McGregor’s Theory Y in the next section.

In addition t o or ganizational beha vior and management , Maslo w’s writings influenced the fields of ps ychology, social ps ychology, sociology , and mar keting. Much of the r esearch and theory -building that t ook place in the y ears f ollowing the publication of Maslo w’s theory included humanist assumptions. In essence, scientific management , w hich r elied on mone y and f ear as primary moti vators, w as being supplant ed b y new er, mor e positi ve view s of emplo yees. Human r elations theories incorpor ate the concept that positi ve emplo yee atti- tudes, combined with pr aise and r ecognition b y super visors and int eresting w ork, can con - tribute equally to workplace motivation and productivity (Maslow, 1954, 1998).

Douglas McGregor and Theory X/Theory Y Perhaps the most insig htful book r elated t o the field of or ganizational beha vior is Doug las McGr egor’s The Human S ide of Enterprise (1960). McGr egor pr oposes tw o companion theo - ries, summarized in T able 1.2, that cry stallize the diff erences betw een scientific management and the human r elations mo vement. Theory X e xpresses the neg ative assumptions leaders ha ve ab out their f ollowers: f or e xample, the y w ant t o a void w ork and r esponsibility. The logi - cal conclusions managers w ould dr aw w ould be that the y should use f ear or mone y t o moti - vate emplo yees. Theory Y r epresents the opposing perspecti ve, in t erms of both assumptions and conclusions made b y leaders: f or instance, that it is natur al f or people t o w ant t o w ork, and that motivation comes from within.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Historical Overview: Scientific Management and Human Relations Section 1.2 Table 1.2: McGregor’s Theory X and Theory Y Assumptions of Theory X Assumptions of Theory Y 1. People dislike work. 1. Wanting to work is natural.

2. People avoid responsibility. 2. People seek responsibility.

3. People prefer direction. 3. People enjoy autonomy.

4. Most people have little ambition. 4. Most people are only partially utilized in terms of talents and abilities.

5. Given the opportunity, employees will generate ideas to help themselves and the company.

Assumptions of Theory X Assumptions of Theory X 1. Leaders should be production oriented.1. Leaders should be people oriented.

2. Employee motivation is derived from money and fear. 2. Motivation comes from within the individual.

McGregor belie ved that the Theory X leadership sty le w as ineff ective because w orkers w ould be underutilized and their pot ential contributions w ould be lost . He ar gued that Theory Y leaders unleash human pot ential and w ould help emplo yees and the o verall or ganization achie ve at higher levels. The human r elations mo vement beg an t o w ane as t echnology became mor e sophisticat ed. It became appar ent that w hat the Gilbr eths had called the quest t o identify the “One Best W ay” w as impossible. W orkplace situations ar e comple x and diff er fr om one another . Consequentl y, neither the scientific manag ement appr oach nor the humanistic v antage point can pr ovide complet e ans wers as t o ho w an indi vidual can eff ectively dir ect a department or an o verall or ganization. This has led to new ideas and concepts about how to manage employees. Comprehension Exercise 1. Scientific management and the time and motion study would be most closely associat ed with a. the human relations movement b. systems theory c. Theory X d. Theory Y 2. The concept that people are basically good and that life is the process of “getting better” is contained in a. scientific management b. humanism c. Theory S d. Theory X Answers: 1) c 2) b \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Modern Management and Organizational Behavior Section 1.3 1.3 Modern Management and Organizational Behavior During the 1950s, 1960s, and ear ly 1970s, a series of political, social, and t echnological tr ends influenced the academic w orld and the w orld of commer ce. La ws r egarding discrimination w ere enact ed; issues r egarding gender equality ar ose; and the go vernment underw ent a gr eat deal of scrutin y, most notabl y as a r esult of the Vietnam W ar and the W atergate scandal. The bab y boom gener ation and its insist ence on gr eater fr eedom g ave rise t o new social tr ends. T echnology pl ayed a major r ole in shaping the natur e of r esearch and the methods used t o conduct business. Comput erization, miniaturization, and r obotics dr amatically influenced the workplace and the classroom.

The fie ld of or ganizational beha vior e volved with the times. In the 1950s, the r elated college course w as oft en called “industrial ps ychology” and w as taug ht in ps ychology departments. As the cont ent mo ved int o schools of business, the most common name f or the class w as “human relations.” Eventually the name shifted to organizational behavior.

Early in the modern er a, tw o concepts influenced the o verall pr actice and stud y of manage- ment: syst ems theory and c ontingency theory. These tw o theories cr eated a new cont ext f or or ganizational beha vior studies and set the stage f or pr ograms lik e positiv e organizational behavior.

Systems Theory Chester I. Barnar d intr oduced s ystems concepts t o the pr actice of business. Barnar d (1938/1968) belie ved or ganizations consist ed of a series of ph ysical, biological, personal, and social components that f orm int o a cooper ative s ystem, w hich pursues distinct goals and ends.

Lat er, s ystems theory conceptualized an or ganization as a set of int errelated parts w orking t ogether in a holistic f ashion. Figur e 1.1 portr ays a s ystem. The model applies t o bio - logical, mechanical, and social systems.

Figure 1.1: A system Chester Barnard developed systems concepts, which later became systems theory. Systems theory demonstr ates how an interrelated set of parts evolves into a holistic process.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Modern Management and Organizational Behavior Section 1.3 In a business s ystem, inputs include r aw mat erials, financial r esources, and human r esources. The tr ansformation process is the compan y’s pr oduction function, including the assembl y of ph ysical pr oducts and the de livery of intangible services. Outputs ar e the finished, final goods and ser vices sold t o the pub lic. The f eedback mechanism provides corr ection and adjustment , k eeping the or ganization in tune with its en vironment. C ontrol s ystems, such as perf ormance appr aisals of indi vidual emplo yees and annual accounting stat ements f or o verall companies, ar e feedback mechanisms.

Two major de velopments emer ged fr om s ystems theory : first , the concept that or ganizations constantl y change, and second, that or ganizations must adapt t o the lar ger en vironment t o continue oper ations. Prior t o s ystems theory , firms w ere oft en view ed mor e as a snapshot than as a mo ving pictur e. F or e xample, T witter at its inception w as a simple messaging s ys- tem that did not seek t o mak e a pr ofit. But in its curr ent f orm it is a f ar diff erent or ganization. Thus, a single image from years ago would not suffice to describe the company.

The need t o adapt t o the en vironment led t o biological analogies. The first , the life-cy cle concept, suggests that or ganizations ar e born, gr ow, r each a maturity stage, and e ventually decline and die. The second, natural selection, not es that or ganizations that do not adapt t o the environment will be selected out. S ystems conce pts appl y t o emplo yees as w ell. Humans ar e biological s ystems and go thr ough lif e-cycle phases. Moti ves and w ork skill sets e volve o ver their li ves. A t the beginning of a car eer, w hat is most important t o w orkers ma y diff er gr eatly fr om w hat will moti vate them as the y approach retirement.

Natural selection also appli es t o indi viduals. W orkers with skills not suit ed t o the economic en vironment cannot find jobs, w hich means the y ar e se lected out . Such has been the case f or man y coal workers in the United States as that industry has begun to wane. Contingency Theory If one phr ase summarizes contingency theory , it mig ht be, “Ther e is no one best w ay t o manage. ” C ontingency theory suggests that or ganizational v ariables shou ld be mat ched with or adapt ed t o the situation at hand. This new appr oach mak es it possible t o incorpor ate ad vances in t echnology (specificall y comput ers) int o r esearch pr ograms. It r ecognizes that or gani- zational lif e is comple x and r equires a mor e in-depth anal ysis of the f actors in volved. In contr ast t o the concept of sear ching f or a “best w ay,” w hich appears in both scientific management and the human r elations mo vement, contingency theory pr oposes a mor e comple x approach to management. Blend Images/Blend Images/SuperStock Contingency theory leaves room for changing circumstances, and can be useful for unconventional work environments to which more prescriptive theories may not apply.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Modern Management and Organizational Behavior Section 1.3 In organizational behavior , no one best motiv ational sy stem, leadership style, or form of org ani- zational structur e and design exists. Instead, if → then approaches to management are requir ed. Many of the theories that hav e ev olved in org anizational behavior reflect contingency thinking, wher e managers adapt t o the situation, compan y, emplo yees, and other cir cumstances.

Positive Organizational Behavior Positive organizational behavior is the study and application of positiv ely oriented human resour ce strengths and psy chological capacities for performance impro vement in toda y’s wor kplace. Positi ve OB has its roots in the positiv e psy chology mov ement, which began in the late 1990s. Positi ve psy chology primarily focuses on building human strength and was trans- lat ed from the field of psy chology to the field of org anizational behavior by Fr ed Luthans. Instead of the quick-fix self-help approaches often found in the popular press, positiv e org a- nizational behavior seeks to identify human resour ce strengths and capabilities that can be measured, dev eloped, impro ved, and managed. To do so, positiv e org anizational behavior is built on the principles summarized b y the acr onym CHOSE (Luthans, 2002):

1. C onfidence and self-efficacy: I belie ve I contr ol m y o wn destin y.

2. Hope: I think ther e is a good chance I will mak e m y numbers this y ear.

3. Optimism: E ven thoug h our t eam is being ask ed t o do mor e with f ewer r esources, we can use this as a chance t o shine.

4. S ubjective w ell-being: Each situation r equires a unique r esponse.

5. Emotional int elligence: The ability t o adapt t o change and en vironmental tur bulence.

The positiv e org anizational behavior approach stresse s an encouraging wor k envir onment in whic h managers are appr oachable and employ ees feel free to expr ess ideas and seek to dev elop their full potential. This bodes well for ev ery aspect of their org anizational liv es and includes achie ving personal success w hile incr easing compan y pr ofitability and gr owth.

The basis of positiv e org anizational behavior can be found in concepts such as open-door management, wher ein managers offer access to employ ees, who can ask questions or discuss ideas or problems. It incorporat es an emphasis on employ ee participation as well as Theory Y.P ositive or ganizational beha vior emphasizes nurturing and empo wering emplo yees. Comprehension Exercise 1. The concept that an organization consists of a set of interrelated parts that create an holistic out come is f ound in a. the human r elations mo vement b. systems theory c. contingency theory d. positive or ganizational beha vior 2. Adapting one’s management sty le t o comple x situational f actors is part of a. systems theory .

b. contingency theory .

c. the human r elations mo vement.

d. positive or ganizational beha vior. Answers: 1) b 2) b 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Organizational Careers: Personal and Managerial Factors Section 1.4 1.4  Organizational Careers: Personal and Managerial F actors While an understanding of org anizational behavior contributes to ov erall company success, the study of org anizational behavior can contribute to personal success as well. An effecti ve manager—or future manager—understands people. First, how ever, managers must under- stand and impr ove themsel ves in or der t o achie ve car eer success. Self-Management and Personal Success “Personal success” may be a difficult concept to define. For one individual, the concept sug- gests wealth or fame. For another, success results from moving to the top of the org anizational chart and assuming the role of chief ex ecutive officer (CEO). Another still may view personal success in t erms of serving people, including f amily, friends, and e ven str angers. For purposes here, the concept of personal success specifically addresses one’s career and time spent in business org anizations. Whereas management can be defined as accomplishing wor k and org anizational goals by assisting, training, and leading others, self-management inv olves all efforts designed to pursue personal and prof essional goals. The primary concepts that appl y t o personal success in that cont ext include • training and pr eparation • finding the rig ht person–or ganization fit • continuous impr ovement • achieving balance • building and maintaining a personal mor al and ethical code Each component contribut es important elements t o a satisfying car eer.

Training and Preparation The concept of lifelong learning has sw ept throug h much of the academic and business wor ld. New technologies and methods of operation requir e continuous study . A successful personal career likel y includes formal training in the academic wor ld, such as undergr aduate and master’s degrees; participation in managerial training progr ams in individual companies; personal efforts to impro ve skills throug h confer ences, seminars, prof essional reading, and online r esearch; and discussion with ment ors and e xperts.

Finding the Right Person–Organization Fit For most people, finding the ideal wor kplace will not happen with the first employment expe- rience. It takes time and sev eral jobs to discov er what someone wants in a company . An indi- vidual may most value social inter action, the wor k itself, the opportunity to be promot ed, or numerous other, less visible aspects of org anizational life. Figure 1.2 models the person– org anization fit concept. It implies that when an employ ee has found the right employ er, a series of beneficial outcome s emerge. Part of career management inv olves personal aw are- ness reg arding what you think is important, combined with seeking to find the company that offers the best chance t o achie ve.

2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Organizational Careers: Personal and Managerial Factors Section 1.4 A careful self-e xamination will be part of finding the rig ht fit . Some people belong in a cat e- gory called “cosmopolitans”: persons w ho find the gr eatest fulfillment in serving the lar ger pr ofession r ather than a specific or ganization. “Locals” f ocus on succeeding within the emplo yer compan y (Goldber g, 1976). In finding a fit with an or ganization, cosmopolitans ar e suit ed t o companies that gr ant gr eater aut onomy and deri ve r ecognition fr om the e xternal pr ofessional acti vities of emplo yees. Locals fit in most or ganizations, so long as pr ofessional r equirements do not eliminate them for obtaining jobs or limit them from being promoted.

Continuous Improvement Beyond lif elong learning, a successful car eer includes honing personal skills, building r ela- tionships, and taking new challenges as time passes. Impr oving comput er skills will mak e an emplo yee v aluable t o a r ange of emplo yers. And indi viduals w ho tak e the initiati ve t o learn a f oreign lang uage and bett er understand the cust oms of another country ma y be r ewarded with new assignments or business trips abroad. Figure 1.2: A person–organization fit model The person–organization fit concept suggests that positive outcomes occur when an employee finds the right employer.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Organizational Careers: Personal and Managerial Factors Section 1.4 Early in a career , one form of impro vement might inv olve finding a mentor who is willing to help a young employ ee navig ate the challenges of a specific company and occupation. Later , continuous impro vement inv olves becoming a mentor to assist and dev elop others. These and other r elationships help make f or a fulfilling career based on mor e than mere on-the-job accomplishments.

Achieving Balance Robert Dubin noted that some employ ees tend to view wor k as a central life-int erest while others do not. Part of career success includes understanding the role of wor k in your life. Then, achieving balance helps ensure that wor k does not dominate to the point that personal time is lost or cannot be enjo yed (Dubin, Champoux, & P orter, 1975).

Experts in the fields of stress manage- ment and time management empha- size the importance of rest and taking a mental vacation from the demands of wor k. Finding wa ys to maintain a positiv e life aw ay from wor k can lead to impro ved producti vity on the job and great er life satisfaction in general. The opposite, burning the candle at both ends, often results in burnout, a shorter life expectancy , and a less suc- cessful car eer.

Work-life balance has been the sub- ject of scrutiny in popular press advice as well as in a great deal of academic resear ch. The concept has been linked to lev els of job satisfaction as well as ov erall org anizational performance (Beaureg ard & Henry, 2009; A bendroth & Dulk, 2011).

In summary, a series of steps must be taken to build a personal career . Success begins with finding an org anization that pro vides a good personal fit. Then employ ees can tend to their ev olving assigned tasks whi le also enhancing personal attributes that are of value to the com- panies they wor k for . The final building block, finding a balance between life at wor k and aw ay from the office, helps guarant ee that at the end of a career , the individual can take satis- f action in a job w ell done and a lif e w ell li ved. Bey ond these aspects of personal car eer enhancement, one pervasi ve issue exists: the role of personal ethics. Ev ery part of an org anization’s operations is affect ed in one wa y or another by ethical dilemmas. In org anizational behavior , personal conduct, methods of employ ee training, ev aluation, and personnel decisions (hiring, firing, promoting) can be tinged by unethical actions by individuals or an envir onment that ignores or ev en encourages such behaviors. Career success and personal outcomes, in many wa ys, begin and end with indi- vidual decisions reg arding how to respond to ethical challenges, many of which are present ed in the coming chapters. At this point, consider how ethical concerns affect ed one company in OB in Action: W ells Fargo. Hero Images Inc./Hero Images/SuperStock Achieving a balance between work and personal time is an important career objective. OB in Action: Wells Fargo Sometimes the actions of e xecutive management ma y not se em clear ly link ed t o w hat tak es place at the oper ational le vel. A t best , this lack of connection can confuse emplo yees or e xter- nal stakeholders. At worst, it can reflect an organization in crisis.

In the f all of 2016, Carrie T olstedt, ak ey official at W ells F argo w ho o versaw the consumer banking unit , r esigned her posi tion, f orfeiting millions ofdolla rs incompensation and bonuses. And f ollowing blist ering critic ism b y, among others, Senat or Elizabeth W arren, W ells F argo CEO John Stumpf also turned down $41 million in stock awards (Egan & Wattles, 2016).

These dr amatic e vents w ere pr ecipitated by apr ogram cr eated b y W ells F argo t op manage - ment in an eff ort t o stimulat e compan y gr owth. The pr ogram w as an emplo yee incenti ve s ys- tem designed t o incr ease the number of accounts indi vidual W ells F argo cust omers held. A t the time in the bank ing industry , the a verage number of accounts asing le cust omer held with one financial institution w as thr ee. The goal at W ells F argo w as t o incr ease that number t o eig ht because, in the w ords of one e xecutive, “Eig ht r hymes with gr eat.” That is, the mor e accounts a cust omer held, the more money the bank could collect in interest and fees potentially.

Unable to persu ade enoug h cust omers t o open mor e accounts and f eeling the pr essure t o meet the new goal, man y emplo yees r esorted t o tactics such as cr eating small new checking or sa v- ings accounts f or cust omers without their kno wledge. A ccounts w ere opened and then closed not long aft er, oft en lea ving the cust omer r esponsible f or small financial penalties and char ges f or chec ks that had bounced. Other emplo yees cr eated cr edit car d accounts f or cust omers without inf orming them. Man y emplo yees r eported f ears of being t erminated f or f ailing t o meet objecti ves, and some begged friends and r elatives t o open accounts t o help them meet their quotas.

Some emplo yees felt uncomf ortable with the pr ogram as soon as itw as implement ed. One emplo yee r eported that he r eported his concerns t o an ethics hot line and w as soon t ermi- nated. Such less than subtle pr essure undoubt edly had an impact on other emplo yees (Eg an, 2016).

When the pr oblems beg an t o surf ace, W ells F argo r esponded b y t erminating mor e than 5,000 emplo yees w ho had cr eated at least tw o million bogus accounts. Se veral emplo yees lat er r eacted b y filing ala wsuit ag ainst the compan y f or basicall y coer cing them t o beha ve unethi- call y and illegally.

Damage t o W ells F argo t ook the f orm of asharp dr op in st ock price as w ell as abarr age of neg- ati ve publicity . Itma y tak e y ears f or the or ganization t o bounce back fr om w hat w as essentiall y a motivational program rooted in questionable goals and granting objectionable rewards.

Reflection and Application Questions 1. Who is the most responsible for the unethical acts in this scenario, low-level employees or top-level managers?

2. If you were an employee at Wells Fargo who encountered this program, how would you r espond?

3. What can the executive management team at Wells Fargo do to restore employee, consumer , and governmental confidence in the company? Which organizational beha vior concepts apply?

4. Would you be willing to go to work for Wells Fargo? What would the compan y need to do to entice workers to apply in the future?

2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Organizational Careers: Personal and Managerial Factors Section 1.4 Early in a career, one form of improvement might involve finding a mentor who is willing to help a young employee navigate the challenges of a specific company and occupation. Later, continuous improvement involves becoming a mentor to assist and develop others. These and other relationships help make for a fulfilling career based on more than mere on-the-job accomplishments.

Achieving Balance Robert Dubin noted that some employees tend to view work as a central life-interest while others do not. Part of career success includes understanding the role of work in your life. Then, achieving balance helps ensure that work does not dominate to the point that personal time is lost or cannot be enjoyed (Dubin, Champoux, & Porter, 1975).

Experts in the fields of stress manage- ment and time management empha- size the importance of rest and taking a mental vacation from the demands of work. Finding ways to maintain a positive life away from work can lead to improved productivity on the job and greater life satisfaction in general. The opposite, burning the candle at both ends, often results in burnout, a shorter life expectancy, and a less suc- cessful career.

Work-life balance has been the sub- ject of scrutiny in popular press advice as well as in a great deal of academic research. The concept has been linked to levels of job satisfaction as well as overall organizational performance (Beauregard & Henry, 2009; Abendroth & Dulk, 2011).

In summary, a series of steps must be taken to build a personal career. Success begins with finding an organization that provides a good personal fit. Then employees can tend to their evolving assigned tasks while also enhancing personal attributes that are of value to the com- panies they work for. The final building block, finding a balance between life at work and away from the office, helps guarantee that at the end of a career, the individual can take satis- faction in a job well done and a life well lived. Beyond these aspects of personal career enhancement, one pervasive issue exists: the role of personal ethics. Every part of an organization’s operations is affected in one way or another by ethical dilemmas. In organizational behavior, personal conduct, methods of employee training, evaluation, and personnel decisions (hiring, firing, promoting) can be tinged by unethical actions by individuals or an environment that ignores or even encourages such behaviors. Career success and personal outcomes, in many ways, begin and end with indi- vidual decisions regarding ho w to respond to ethical challenges, many of which are presented in the coming chapters. At this point, consider how ethical concerns affected one company in OB in Action: Wells Fargo. Hero Images Inc./Hero Images/SuperStock Achieving a balance between work and personal time is an important career objective. OB in Action: Wells Fargo Sometimes the actions of e xecutive management ma y not se em clear ly link ed t o w hat tak es place at the oper ational le vel. A t best , this lack of connection can confuse emplo yees or e xter- nal stakeholders. At worst, it can reflect an organization in crisis.

In the f all of 2016, Carrie T olstedt, a k ey official at W ells F argo w ho o versaw the consumer banking unit , r esigned her posi tion, f orfeiting millions of dolla rs in compensation and bonuses. And f ollowing blist ering critic ism b y, among others, Senat or Elizabeth W arren, W ells F argo CEO John Stumpf also turned down $41 million in stock awards (Egan & Wattles, 2016).

These dr amatic e vents w ere pr ecipitated b y a pr ogram cr eated b y W ells F argo t op manage- ment in an eff ort t o stimulat e compan y gr owth. The pr ogram w as an emplo yee incenti ve s ys- tem designed t o incr ease the number of accounts indi vidual W ells F argo cust omers held. A t the time in the bank ing industry , the a verage number of accounts a sing le cust omer held with one financial institution w as thr ee. The goal at W ells F argo w as t o incr ease that number t o eig ht because, in the w ords of one e xecutive, “Eig ht r hymes with gr eat.” That is, the mor e accounts a cust omer held, the more money the bank could collect in interest and fees potentially.

Unable t o persu ade enoug h cust omers t o open mor e accounts and f eeling the pr essure t o meet the new goal, man y emplo yees r esorted t o tactics such as cr eating small new checking or sa v- ings accounts f or cust omers without their kno wledge. A ccounts w ere opened and then closed not long aft er, oft en lea ving the cust omer r esponsible f or small financial penalties and char ges f or chec ks that had bounced. Other emplo yees cr eated cr edit car d accounts f or cust omers without inf orming them. Man y emplo yees r eported f ears of being t erminated f or f ailing t o meet objecti ves, and some begged friends and r elatives t o open accounts t o help them meet their quotas.

Some emplo yees f elt uncomf ortable with the pr ogram as soon as it w as implement ed. One emplo yee r eported that he r eported his concerns t o an ethics hot line and w as soon t ermi- nated.

Such less than subtle pr essure undoubt edly had an impact on other emplo yees (Eg an, 2016).

When the pr oblems beg an t o surf ace, W ells F argo r esponded b y t erminating mor e than 5,000 emplo yees w ho had cr eated at least tw o million bogus accounts. Se veral emplo yees lat er r eacted b y filing a la wsuit ag ainst the compan y f or basicall y coer cing them t o beha ve unethi - cally and illegally.

Damage t o W ells F argo t ook the f orm of a sharp dr op in st ock price as w ell as a barr age of neg - ative publicity . It ma y tak e y ears f or the or ganization t o bounce back fr om w hat w as essentiall y a motivational program rooted in questionable goals and granting objectionable rewards.

Reflection and Application Questions 1. Who is the most responsible for the unethical acts in this scenario, low-level employees or top-level managers?

2. If you were an employee at Wells Fargo who encountered this program, how would you r espond? 3. What can the executive management team at Wells Fargo do to restore employee, consumer, and governmental confidence in the company? Which organizational beha vior concepts apply?

4. Would you be willing to go to work for Wells Fargo? What would the company need to do to entice workers to apply in the future?

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Organizational Careers: Personal and Managerial Factors Section 1.4 Build and Maintain a Personal Moral and Ethical Code As the experience at Wells Far go indicates, employ ees often encounter situations in which they are for ced to respond to mandates posed by others that violate personal moral prin- ciples. The many ex amples of legal and ethical violations present ed in this book, along with other similar challenges that arise in one’s career , enhance the value of dev eloping and main- taining a personal code of ethics. Many org anizations pro vide tools to assist in dealing with ethical dilemmas; how ever, an advisable first step is for each person to consider what he or she believ es are acceptable and unacceptable behaviors prior to commencing any career or joining an y or ganization.

Managerial Skills While the wor ld of business has changed dramaticall y ov er the past sev eral centuries, certain aspects of management remain largel y the same. One continuing aspect is the basic distinc- tion between managerial lev els. At the core of nearl y ev ery company , there are three lev els of management:• first-line supervision (oper ational managers) • middle management (tactical managers) • top management and CEO (str ategic managers) Ov er time, as individuals mov e within the rank s of an org anization, their orientations, duties, and requir ed skill sets ev olve. Concepts deriv ed from org anizational behavior can assist in acquiring and r efining the talents needed t o succeed at each le vel. For most employ ees, the first position taken in a company will be at either the entry lev el as a line wor ker or as a first-lev el supervisor or manager trainee. Over time and with promotion, the primary focus and duties at each lev el of management shift along four dimensions (Guest, 1956):• technical, conceptual, managerial orientation • specific v ersus gener al task s • time orientation: short- v ersus long-t erm • degree of human r elations orientation First-line supervisors and operational managers are far more likel y to be concerned with specific, technical matters. An office manager in a phy sician’s practice will be consumed with making sure that the paperwor k associated with billing patients, filing insurance claims, ordering medical equipment, and other medically -related tasks are correctl y completed. A line manager in a manufacturing plant will concentrat e on quotas, deadlines, and defects asso- ciated with production. A department manager in a retail stor e spends a great deal of energy managing inv entories, creating ingenious display s, teaching effecti ve selling techniques, and engaging in other on-the-floor acti vities.

In essence, the managerial orientation rests with the task at hand. Not surprisingl y, then, the focus lar gely remains short term. Deadlines must be met, paperwor k must be completed, 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Organizational Careers: Personal and Managerial Factors Section 1.4 employee schedules must be filled out , and other matt ers that tak e place in the coming w eeks or months r eceive the gr eatest amount of att ention. A t the same time, a first-line supervi- sor spends significant amounts of time w orking dir ectly with people. In this ar ea, concepts learned fr om or ganizational beha vior ar e of gr eat v alue in completing the mor e t echnical, specific, and short-t erm elements of the job, especiall y in the ar eas of moti vation, leadership, communication, problem solving, and conflict resolution.

Middle managers and tacti cal managers o versee sets of departments or oper ations. The y oft en hold titl es such as plant manager , di vision head, or oper ations manager . The incr eas- ingly comple x natur e of meshing v arious task s and oper ations t ogether r equires mor e com - plex managerial thinking skills that mo ve a way fr om specific task s t o mor e gener al pr ocesses. Also, e ven thoug h immediat e out comes r emain important , the middle manager is oft en ask ed t o think about tactical, mid-r ange subjects, such as plant modernization, acquisition and application of new t echnologies, or shifts in mar keting methods. The decisions ha ve impli - cations that last much longer than the short t erm. Middle managers also eng age with other people, and the r oles the y pla y ar e mor e comple x. The concept of “ha ving a boss w hile being a boss, ” or the superior–subor dinate s yndrome, indicates that middle managers must under- stand w hen the y ha ve authority and w hen the y do not . The y must kno w ho w t o eff ectively lead and follow. A wider range of human relations skills becomes necessary.

Organizational beha vior ma y be especiall y helpful t o middle managers in tw o ar eas. The first e volves fr om appl ying kno wledge t o v arious situations, w hich impr oves a person ’s concep - tual thinking skills w hile completing longer-r ange pr ojects. The second r esults fr om a gr eater understanding of maintaining quality relationships with people of higher and lower rank.

Top-level managers, str ategic managers, and the chief e xecutive officer encount er a v astly dif- f erent set of r esponsibilities that r equire a diff erent orie ntation fr om other managerial le vels. T op managers must see the big pictur e. The y ar e r equired t o understand ho w all parts of an or ganization’s oper ation ar e br ought t ogether in a smooth, efficient , and eff ective manner . Ther efore, conceptual skills and managerial skills ar e at a pr emium. Dail y r outines ar e mor e gener al, consi sting of a series of managerial r oles that must be pla yed. T able 1.3 displa ys Henry Mintzberg’s classic set of roles played by top managers.

Top-level managers think str ategically. Issues that will arise in the long t erm deserv e att en- tion b y those in char ge of mo ving the compan y f orward int o the ne xt decade. Int erpersonal skills r emain a vitall y impor tant r esource, as a manage r int eracts with emplo yees, suppliers, cust omers, go vernment officials, the gener al public, union leaders, and other publics. Public speaking skills are a major asset at this level.

In summary , managerial orientation r equires t echnical skills at the lo west r anks that e volve int o mor e conceptual challe nges as the person is pr omoted t o middle and t op management . Managerial skills ar e pr esent at all le vels, w hile the managerial task s perf ormed ar e some- w hat diff erent. The job itself shifts fr om a specific set of task s t o mor e gener al duties at hig her le vels, and the amount of time spent planning incr eases. Or ganizational beha vior off ers tr ain- ing, models, and concepts that can assist a manager at an y r ank in the or ganization, especiall y in the area of interpersonal relations.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Organizational Careers: Personal and Managerial Factors Section 1.4 Table 1.3: Roles played by top managers and the chief executive officer Interpersonal roles Figurehead attends cer emonial, s ymbolic e vents Leader acts as visible dir ector of acti vities Liaison interacts with int ernal departments and e xternal publics Informational r oles Monitor collects inf ormation int ernally and e xternally Disseminator transmits inf ormation t o int ernal constituents Spok esperson transmits inf ormation t o e xternal constituents and publics Decisional r oles Entrepreneur develops new ideas, concepts, pr oducts, and br ands Disturbance handler deals with unf oreseen e vents and crises R esource allocat or spends r esources and designs/signs budgets Negotiat or completes contr acts with unions, suppliers, bu yers Sources: Henry Mintzberg (1973). The Natur e of Managerial W ork. New York, NY: Harper & Row; Henry Mintzberg (1975). The Manager’s Job, Folklore and Fact, Harvard Business R eview, 53 (4), pp. 49–61; Arthur G. Bedeian (1986). Management. Chicago, IL: The Dryden Press. Comprehension Exercise 1. The model that suggests that when an employee has found the right employer, a series of beneficial out comes emer ge is a. systems theory b. organization theory c. person–organization fit d. continuous impr ovement 2. The le vel of management that will be most orient ed t oward t echnical and oper ational matters is a. first-line supervisor b. middle managers c. top le vel management d. CEO or pr esident onl y Answers: 1) c 2) a 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Management and Organizational Behavior in the 21st Century Section 1.5 1.5  Management and Or ganizational Behavior in the 21st Century The concepts pr esented in the pr evious section can help an indi vidual build a f oundation f or a successf ul car eer. Ideas r egarding tr aining and pr eparation, finding the rig ht person– or ganization fit , seeking continuous impr ovement, achie ving w ork-life balance, and building a str ong perso nal and mor al ethical code ha ve been emphasized b y management writ ers f or se veral decades. The y r emain as k ey ingr edients in the quest t o enjo y a hig h quality w ork lif e and pr ofessional car eer. Mor e r ecently, ho wever, these acti vities, w hile clear ly v aluable, should be supplement ed b y an understanding of and adaptation t o the new challenges and opportunities that ha ve arisen in the w orkplace, in indi vidual companies, and in the g lobal ar ena.

The fie ld of or ganizational beha vior has been aff ected b y se veral tr ends. The ar eas that stand out include an e volving w orkplace as w ell as g lobalization. Each alt ers w hat is taug ht in an or ganizational beha vior course and its application in the w orld of business. The y also influ - ence personal tr aining and pr eparation, seeking continuous impr ovement, finding the rig ht or ganization, and the y contain new ethical challenges. In essence the y constitut e new f actors that pla y r oles in achie ving success in t oday’s w orld of w ork and in successfull y managing in such rapidly evolving circumstances.

The New and Evolving Workplace Traditional principles of management t extbooks e xamine fi ve main f orces pr esent in the non-contr ollable e xternal en vironment that demand a manager’s att ention: political, social, economic, t echnological, and com - petitive.

The 21st century has alr eady witnessed dr amatic shifts in each of these ar eas. F rom the election of the first African- American pr esident t o the most r ecent pr esidential election, the political ar ena continues t o e volve. Numer ous social tr ends aff ect cultur e, business, and e veryday lif e. The R eces- sion of 2008 incr eased unemplo y- ment and pr ofoundly influenced man y companies.

T echnology intr oduced a s weeping number of new pr oducts and pr oduct f eatures that ha ve made the pace of business e ven f aster. Com- petition has shift ed t o a w orldwide mar ketplace.

The r ate of change in the w orld of busi - ness continues t o incr ease. Onl y a f ew decades ago, o vernight pack age deli v- ery w as not possible. Contr acts and documents tr aveled via the postal s ystem, making an y tr ansaction tak e longer t o complet e. Air tr avel w as the f astest mode of tr ansportation, but Everett Collection/Everett Collection/SuperStock The evolution of the workplace is always subject to all manner of external forces. For instance, the election of the first African-American president, Barack Obama, marked a cultural precedent that has impacted the entire nation.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Management and Organizational Behavior in the 21st Century Section 1.5 now, with t eleconferencing and other de vices, int erpersonal meetings with people ar ound the w orld tak e place in r eal time. T erms such as “tw eet” and “going vir al” did not e xist. Manag- ers in the 21st century ar e e xpected t o complet e their functions w hile coping with a series of tr ends and changes in the workplace, including the following:

• innovation and change • connectivity and networked organizations • employment of temporary workers Innovation and Change Technology’s impact t ends t o be widel y discussed and e valuated. New t echnologies ha ve changed e veryday li ves of people, both at w ork and off-sit e. An e valuation of t echnology w ould suggest that t echnological inno vation comes in man y f orms, including those displa yed in Figure 1.3.

Managers ar e e xpected t o adapt t o an incr easing numb er of changes. The emer gence of 3-D printing is lik ely t o cr eate dr amatic eff ects on a v ariety of industries, fr om medicine at one e xtreme t o the building of w eapons at the other . Digital t echnologies ha ve r apidly tr ansformed v arious ent ertainment companies, fr om the pr oduction and deli very of music t o t elevision Figure 1.3: Technology and change As technology changes, managers are expected to adapt. This figure presents examples of recent t echnological advances that impact the business environment.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Management and Organizational Behavior in the 21st Century Section 1.5 programs and mo vies. T echnology also influences ho w emplo yees int eract, via social media and other de vices r ather than in-person, as w ell as ho w entir e companies tr ansmit inf orma- tion to employees and customers.

At the same time, in t erms of change, t echnology onl y r epresents part of the equation, espe- ciall y in the w orkplace. Dr amatic changes continuall y tak e place in f our additional ar eas: political and legal forces, social trends, economic shifts, and competitor actions.

The political and leg al en vironment is in a constant stat e of flux. La ws r egarding pri vacy, iden- tity pr otection, and other personal matt ers influence w hat managers can and cannot e xam- ine.

Medical records ma y be incr easingly a vailable but should not be view ed b y an yone other than licensed ph ysicians and medical personnel. In 2011, challenges t o the rig hts of unions w ere made b y legislatur es in both Ohio and Wisconsin. As the political landscape shifts, other r egulatory changes that affect employees can be expected.

In the int eraction betw een the social and leg al en vironments, the 2015 Supr eme Court deci- sion r egarding same-se x marriage has changed the land scape f or man y companies and their emplo yees. Ot her court actions r egarding r esponsibilities f or pr oviding insur ance, especiall y f or personal issues such as birth contr ol, ha ve cr eated conflict and contr oversy. In addition, di versity and illeg al immigr ation issues persist in the national consciousness. Managers ar e e xpected t o go be yond understanding the questions surr ounding these issues t o find w ork- able solutions.

Economic f orces ha ve an impact on national and int ernational companies, and ar e fr equently in flux. Do wnturns and la yoffs w ere pr evalent in the ear ly part of the 2000s. Deciding w ho t o r ehire and when is one of many managerial considerations affected by economic conditions.

Competitive f orces continue t o change the jobs mana gers perf orm. The y ar e e xpected t o r espond t o competiti ve eff orts in the ar eas of acquiring cust omers and making sales, but also in t erms of hiring and k eeping the best w orkers, obtaining loans in competiti ve lending situa - tions, and developing and adapting relationships with the best suppliers.

Connectivity and Networked Organizations Another cat egory of tr end that managers must adjust t o is in the r ealm of connecti vity and netw orked or ganizations. The virtual workplace, in w hich emplo yees and departments ar e connect ed digitall y, is a r ecent inno vation in the w orld of business. Netw orked or ganizations establish hig h-speed connections betw een members of the compan y ar ound the w orld. This type of connecti vity mak es it possible t o manage a firm mor e efficientl y. Emplo yees ha ve vital inf ormation at their fingerti ps. Bett er decisions can be made without the same le vel of specu - lation and lost time that took place previously.

A netw orked compan y can bett er serv e emplo yees and cust omers. Use of cloud comput - ing enables indi viduals and or ganizations t o collect and st ore inf ormation in new w ays. F or e xample, a service emplo yee with access t o cust omers’ pr eferences and shopping patt erns can bett er addr ess their needs. The emplo yee will have access t o inf ormation about previous contacts with the cust omer, both positi ve and neg ative. Entir e or ganizational r ecords r egard- ing a variety of company functions can be stored on the cloud.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Management and Organizational Behavior in the 21st Century Section 1.5 Many firms ha ve virtual connections with other companies. Pr oject management ma y be shar ed b y tw o cooper ating firms. Other companies submit or ders, cr eate packing labels, tr ack shipments, send bills, and r eceive payments electr onically. The virtual w orkplace means that tw o indi viduals do not ha ve t o be in the same r oom t o w ork t ogether. The r apid gr owth of mobile t echnologies mak es it possible t o mak e contact with others ar ound the w orld in an instant .

The pot ential pr oblem with connecti vity is inundation with t oo much inf ormation and t oo man y messages. An y manager w ho is a way f or a w eek r eturns t o an onslaug ht of emails that ha ve ba cked up. Messages ma y become lost w hen t oo man y arri ve at the same time. F urther, comput er hack s int o compan y s ystems cause serious pr oblems and concerns f or managers and their employees. P ersonal pri vacy issues ha ve gr own, as man y firms maintain lar ge amounts of inf ormation about indi vidual emplo yees and cust omers. A t times such inf ormation is sold t o other compa - nies or is taken by hackers for purposes of exploitation.

At the least , the 21st-century manager will be e xpected t o use connecti vity in dail y w ork acti vities. Connecti vity will influence ho w managers do their o wn w ork as w ell as ho w the y int eract with emplo yees, cust omers, and an y other indi viduals w ho mak e contact with the compan y.

Employment of Temporary Workers Many 21st-century managers also cope with a less stable w ork f orce. Firms hir e t emporary w orkers t o r educe labor cos ts and cope with economic do wnturns. These individuals ar e not entitled t o the same benefits as full-time, permanent emplo yees. T o the manager , the chal - lenge is constant tr aining and making sur e a t emporary w orker is able t o perf orm assigned task s. The indi vidual will be less lo yal t o the compan y and not shar e the same degr ee of mental in volvement. Most t emporary w orkers will ha ve less e xperience at a gi ven task and r educed kno wledge ab out the emplo yer firm. Managers can e xpect t o be in volved in mor e hands-on, da y-to-day direction of these types of workers.

It is near ly impossible t o k eep up with or pr edict w hat will happen in the coming y ears. P opu- larity and usage of the v arious social media platf orms is in constant flux, and impr ovements in these t echnologies ar e intr oduced near ly e very da y. Each of the tr ends not ed in this section, fr om changes in the w orkplace t o incr eased connecti vity, incr eased use of t emporary w ork- ers, and gr eater challenges t o the w ork-life balance, ma y e volve int o some new f orm. Just as man y t elevision pr oviders are beginning t o off er 3-D pr ogramming, the impact of t echnology on the workplace and the nature of the managers will continue to progress.

Globalization and Global Management The r each of e ven the smallest business has changed. The Int ernet and impr oved shipping capabilities ha ve made it possible f or smaller companies t o attr act cust omers ar ound the w orld. A t the same time, g lobal cong lomerates continue t o adapt and e xpand. Mer gers, acqui - sitions, partnerships and tr ade r elationships, and a gr owing number of tr ade agr eements among nations have affected the ways in which business is conducted.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Management and Organizational Behavior in the 21st Century Section 1.5 Globalization has a noticeable impact on the a vail- ability of pr oducts and serv ices t o cust omers. The rising number of pr oduct choices has impr oved the standar d of li ving f or man y people. The spr ead of mobile communications pr oducts serv es as an e xample. P eople ar ound the w orld ha ve access t o cell phones and the Int ernet thr ough handheld de vices. As the new century unf olds, the tr end t oward a gr eater number of pr oduct choices will continue (World Trade Organization, 2011).

The g lobal mar ketplace also aff ects ho w managers oper ate. A series of new challenges a waits an yone int erested in conducting int ernational business, especiall y in the ar ea of human r esources. Manag- ers eng aged in int ernational tr ade can e xpect t o encount er issues in the following areas:

• selection of home- versus host-country emplo yees and managers • understanding of how cultural and language differences influence business acti vities • reaction to international trends Employee and Manager Selection An or ganization’s gener al str ategic appr oach f orms the basis f or all other business oper ations. It aff ects man y of the compan y’s business acti vities, including emplo yee selection pr ocesses. Each firm e xhibits one of thr ee mindsets: ethnocentric, pol ycentric, or geocentric. Each pr es- ents a set of options (Baack, 2005).

In the first appr oach, et hnocentric management, home -country emplo yees will be select ed and tr ained f or o verseas assignments. The str ategy is oft en pr eferred b y companies e xport- ing t o r egions with the same or a similar cultur e. F or e xample, a Canadian compan y mig ht hir e som eone and tr ain that indi vidual f or assignments in the Unit ed Stat es and Gr eat Britain, simpl y because it w ould be the easiest choice. P ersons in those countries speak the same lan- guage and pr actice the same or similar r eligions. The r elatively lo w le vel of cultur al adaptation r equired mak es it possible t o simpl y assign a curr ent emplo yee t o one of these new int erna- tional locations. Such indi viduals ar e called “e xpatriate emplo yees,” or “e xpatriate managers” w hen the y ser ve in supervis ory r oles. Some e xpatriates r equire tr aining in a f oreign language and must ha ve an open mind r egarding cultur al diff erences. F or e xample, an e xpatriate man - ager assigned b y a U .S. compan y t o a br anch in F rance w ould find it useful t o speak F rench and t o understand the nuances of lif e in that country . Such nuances ar e not significantl y diff erent in many ways from those in the U.S. but still do exist.

A se cond option, poly centric management, in volves hiring someone fr om the tar get host coun - try.

These indi viduals ha ve the natur al ad vantage that comes fr om kno wing the cultur e of the host country . The y will need t o be tr ained t o understand ho w the home country ’s business Oliver Burston/Ikon Images/SuperStock Globalization has changed and continues to change the landscape of business in the United States and abroad.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Management and Organizational Behavior in the 21st Century Section 1.5 operates, inclu ding manage rial pr actices. The y mig ht disco ver that the leadership sty le is dif- f erent and that the compan y will need t o r espond t o moti ves and incenti ves that diff er fr om those that dri ve local companies. In pol ycentric or ganizations, people in the firm ma y com - municate diff erently. In essence, the y do not ha ve t o adapt t o a new country , but r ather t o a new company.

Some companies emplo y g eocentric management, in w hich thir d-party nationals ar e oft en hir ed. These emplo yees ar e not citizens of the home or host country . A t times, someone with a trul y int ernational point of view has the gr eatest ad vantage. The y can adapt t o a wider r ange of cultural variations.

Cultural and Language Differences Business is conduct ed in di verse w ays, depending on the cultur e of the country . Successful business people in vestigate these diff erences prior t o visiting a f oreign land. Some e xamples of cultur al nuances include acti vities such as building r elationships bef ore talking business, dining and meals as part of the business int eraction, gift-gi ving pr otocols, the use of titles and surnames, and even presenting a business card.

The first r equirement f or an y int ernational assignment is acceptance that ther e will be dif- f erences in cultur e. C ulture shock is a f eeling of disorientation that oft en occurs w hen an indi vidual first arri ves in a new country . Man y cust oms will seem diff erent, beginning with something as simple as a gr eeting (a bo w v ersus a handshak e). C ultural sensiti vity is the abil- ity t o understand and accommodat e indi viduals fr om other cultur es. It includes a wareness of diff erences in r eligion, manners, dining and f oods, and other matt ers associat ed with e very- day li ving and the conduct of business. Those w ho do not or cannot accommodat e other cul- tur es exhibit ethnoc entrism, or the belief that one’s culture is inherently superior t o others. Such individuals will experience major problems on international assignments. Language skills ar e useful in man y int ernational business r elationships. A t the least , kno w- ing ho w t o gr eet someone in his or her nati ve language oft en begins a tr ansaction on a much mor e cor dial not e. Those w ho kno w a second language ha ve a distinct ad vantage in t oday’s emplo yment mar ketplace, and in gener al, int ernational business includes adaptation t o f or- eign lan guages. Someone fr om F rance conducting business with a person fr om the Unit ed Stat es will need t o find a language that both can understand. Slang complicat es the issue of language barriers. E ven som eone tr ained t o speak F rench will soon disco ver that nati ves use a gr eat deal of t erminology not taug ht in f ormal classes. A dditional barriers t o int ernational communication include (Baack, Harris, & Baack, 2012) the following:

• not knowing if it is appropriate to address someone directly or to speak in a def erential manner • not knowing whether it is culturally acceptable to make eye contact or avert one’s eyes • displaying ethnocentrism and stereotyping of other cultures • failure to understand differences in the meanings of nonverbal cues • not knowing how to deal with personal space issues • not comprehending the use of symbols and cultural icons \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Management and Organizational Behavior in the 21st Century Section 1.5 Successful int ernational managers ar e a ware of diff erences in communication patt erns. The y then adapt in w ays that mak e business tr ansactions comf ortable w hile r educing the pot ential f or conflict and misunderstanding.

Ethics a wareness, another k ey aspect of cultur al diff erence, means being a ware that cultur al v alues and methods of cond ucting business v ary. What mig ht be consider ed a gift in one coun - try will be view ed as a bribe in another nation. Man y countries allo w bribery and allo w the amounts gi ven t o serv e as tax writ e-offs. Gender r oles ar e substantiall y diff erent in v arious parts of the w orld. In some cultur es, w omen ma y not be allo wed t o speak or tak e part in busi - ness tr ansactions. Labor la ws do not pr otect w orkers in man y nations, w hich means child labor is used, li ving w ages ar e not paid, and saf ety pr ocedures ar e limit ed or do not e xist. Each indi vidual and compan y de cides w hat is acceptable and w hat is not (Baack & Baack, 2009). Man y companies emplo y a cultur al assimilator t o assist in these matt ers. The assimilat or is someone well versed in the local culture who helps others adapt to the foreign situation.

Evolving International Trends In 2011, a series of nations in the Mid - dle East e xperienced uphea val. Egypt , S yria, Bahr ain, Ir an, and other coun - tries underw ent pr otests and att empts t o tr ansform local go vernments. A t about the same time in the Unit ed Stat es, anti-Muslim sentiment r ose t o new heig hts, as e videnced b y the neg ative r eaction man y had t o the con - struction of an Islamic acti vity cent er in New Y ork City , near the sit e of the W orld Trade Center.

More r ecently, the decision b y Gr eat Britain t o lea ve the E uropean Union (Br exit), the influx of r efugees fr om S yria int o numer ous other countries, the gr owth and influence of ISIS (or ISIL), combined with numer ous t er- rorist attack s ar ound the g lobe ha ve incr eased sensiti vities r egarding acti vities as basic as visiting f oreign countries and as com - plex as the seeking t o eng age in int ernational tr ade. The T rans-Pacific P artnership (TPP) agr eement became a cont entious issue in the 2016 election cy cle, as some in the Unit ed Stat es opposed the agreement while others favored it.

Any political or economic e vent that influences another country has a pot ential impact on int ernational business r elationships. Eff ective g lobal managers consider these e vents and try t o understand ho w their compan y’s int erests ma y be aff ected. P olitical kno wledge includes k eeping up with curr ent e vents and seeking counsel t o understand ho w those e vents aff ect business oper ations. Man y times, political conflicts r esult fr om cultur al misunderstandings and ethnocentrism. Richard Levine/age fototstock/SuperStock Effective managers must stay abreast on major geopolitical events, such as the United Kingdom’s exit from the European Union in 2016. Events like this one, which is colloquially named “Brexit,” have implications for organizations all over the world.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Organizational beha vior can be e xpected t o change with incr easing g lobalization. A gr eater amount of r esearch will be dedicat ed t o understanding cultur al diff erences. The GL OBE pr oj- ect is a r esearch pr ogram in the ar ea of leadership that addr esses cultur al nuances. The pr oj- ect is made up of scholars fr om 61 diff erent cultur es w ho ar e w orking t ogether t o de velop a theory of ho w cultur al v ariables aff ect leadership and or ganizational pr ocesses thr oughout the w orld. Other pr ograms will undoubt edly be designed t o help emplo yees cope with int er- national assignments (Hill, 2003).

Summary and Resources Chapter Summary Organizational behavior (OB) is the investigation of the behavioral factors that affect mod- ern organizations and their management at the individual, group, and organization-wide le vels. Or ganizational behavior includes concepts from the fields of psychology, social psychology, sociology , organization theory, human resource management, history, research methods and statistics, and anthropology. OB is a hybrid field that incorporates ideas from these and other disciplines.

Historically, the scientific management approach came first. Frederick W. Taylor developed the principles that merged scientific concepts with the practice of management. Frank and Lillian Gilbreth incorporated the principles to create the time and motion study. Henri Fayol wr ote about planning, organization, staffing, directing, and controlling at about the same time.

Scientific management was challenged by the human relations movement, beginning with the work of Mary Parker Follett. The Hawthorne studies, Maslow’s views of humanism, and the concepts found in Theory X and Theory Y followed. Comprehension Exercise 1. The belief that one’s culture is inherently superior to others is known as a. nationalism b. patriotism c. dynamism d. ethnocentrism 2. The person assigned to help a company adapt to a foreign situation is known as a(n) a. international implementer b. cultural adapter c. cultural assimilator d. developmental processor Answers: 1) d 2) c \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Modern management and organizational behavior approaches include systems theory, con- tingency theory, and positive organizational behavior.

Management is accomplishing work and organizational goals by assisting, training, and leading others. Self-management involves all efforts designed to pursue personal goals. Self-management requires training, preparation, finding the right person–organization fit, continuous improvement, achieving balance, along with building and maintaining a per- sonal moral and ethical code.

Managerial skills need to evolve as a person is promoted from first-line supervision to middle and top management roles. Technical, conceptual, and managerial orientation change, tasks move from specific activities to more general work, the manager’s time orien- tation tends to move toward the longer term, and the degree of human relations orientation e volves as a person moves upward through the organization’s ranks. Top-level managers eng age in interpersonal, informational, and decisional roles.

The fields of management and organizational behavior have been influenced by elements of the non-controllable external environment. These include rising levels of diversity in the w orkforce, new ethical challenges, an evolving workplace and increasing globalization. The e volving workplace has witnessed higher levels of connectivity and networking among indi viduals on the job. Social media and other technologies continue to influence the ways in w hich people work. Further, all employees and managers will be exposed to cultural differ- ences, both within a country and in dealings with individuals and organizations from other nations.

Language skills and cultural sensitivity become valuable assets in those settings. CASE STUDY: The New Supervisor Jose T orres dr ove t o w ork f or his new assignment with a big smile. He w as e xcited about becoming the manager of a mobile phone r etail st ore. His duties included serving cust omers, pr oblem sol ving, cr eating an in viting st ore en vironment, tr aining and moti vating the other salespeople, tr acking in ventory, and designing special e vents. E ven thoug h he w as 26 y ears old, and two of his employees were over 30, Jose was ready for the challenge.

Within a w eek, the smile w as gone. Jose quickl y disco vered that the tw o older w orkers w ere mor e than willi ng t o tak e shor tcuts. Some of the things the y said t o cust omers bor dered on being f alse, or misleading at best . The tw o emplo yees also w ould count sales until the monthl y quota w as r eached, and then “b ank” an y e xtra t o get a good start on the ne xt month. This hurt the store’s potential profitability statements and would make Jose look bad.

Jose’s boss, Mar cia, deemed he rself “old school. ” She w arned him that her view w as that r etail st ore emplo yees w ere onl y ther e because the y couldn ’t find or hold bett er jobs. She e xpected them t o cheat on quotas and basicall y “li ve do wn” t o her e xpectations. “The onl y thing that k eeps them her e is a pa ycheck, so y ou’d bett er use it t o y our ad vantage. Y ou can al ways cut their hours or schedule them at times w hen ther e is less tr affic—to mak e the point that y ou ar e in charge.” (c ontinued) \251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Review Questions Define organizational behavior.

Organizational behavior (OB) may be defined as the investigation of the behavioral factors that affect modern organizations and their management at the individual, group, and organi- zation-wide levels.

What academic disciplines are related to organizational behavior?

Organizational behavior includes concepts from the fields of psychology, social psychology, sociology , organization theory, human resource management, history, research methods and statistics, and anthropology.

Define scientific management. Who first proposed the principles of scientific management?

Scientific management merged classic scientific principles with what was known about the pr actice of management. It was proposed by Frederick W. Taylor.

What is a time and motion study?

A time and motion study involves the use of a stopwatch or film to develop more efficient methods of completing work tasks. CASE STUDY: The New Supervisor (continued) Marcia’s ad vice r an count er t o w hat Jose belie ved. He knew that the econom y w as t ough, w hich ma y ha ve led some t o ta ke jobs that w ere not the best fit . A t the same time, he sincer ely belie ved no one takes a job wanting to fail. Unf ortunately, it w as not long bef ore Jose beg an hearing that some emplo yees complained that the y w ere w orking at T aco Bell, partl y due t o his ethnic back ground and because a gr eater num - ber of H ispanic cust omers had begun t o visit the st ore. Other ethnic slurs f ollowed. Althoug h he w as ne ver confr onted dir ectly, it w as clear that most of the w orkforce did not r espect him. Jose observed that most of the disrespect came from male employees.

Jose called a meeting. He handed each emplo yee a r eview of his time with the compan y. It sho wed that he had set sales r ecords near ly e very month in his pr evious st ore, w here he w as not a supervisor . He t old them that it w as possible f or each one of them t o r aise their sales and incr ease their bonus check s, if the y w ould simpl y list en t o his counsel. One of the older w ork- ers r esponded, “That will ne ver happen. E ven if w e sell mor e, Mar cia figur es out a w ay t o mak e our pay come out the same.” It was clear that some kind of change was in order.

Case Questions 1. Describe Jose’s basic workplace philosophy. Does it fit this situation?

2. What organizational behavior concepts apply to management? To employees?

3. What type of leader is Marcia? Does her style make better sense for this company?

4. How could Jose build a better environment in the store? Or should he simply terminate the workers and start over?

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources What were the primary findings of the Hawthorne studies?• The subjects responded to positive and pleasant interactions with researchers by incr easing productivity rates on the job.

• Some of the tasks performed by supervisors were eventually assumed by entry-level emplo yees, who also generated higher levels of production, because the workers f ound the experience to be “fun” and free of anxiety about being disciplined for poor perf ormance.

• Workers tended to form groups that were cohesive and loyal to one another. Any- one who overproduced became a “slave” or “speed king” who was derided and even ph ysically punched in the arm (“binging”) by group members. Anyone who failed to do his fair share of work was labeled a “chiseler” and admonished to keep up with the group.

What is humanism? How did beliefs about humanism affect the fields of management and organizational behavior?

Humanism is the belief that the inner nature of a person is inherently good and that life is the process of “getting better.” Scientific management, which relied on money and fear as primary motives, was being supplanted by newer, more positive views of employees. Human r elations theories incorporate the concept that positive employee attitudes, combined with pr aise and recognition by supervisors and interesting work, can contribute equally to work- place motivation and productivity.

What are the assumptions and conclusions of Theory Y?

Theory Y assumes that wanting to work is natural, people seek responsibility, people enjoy aut onomy, most employees are only partially utilized in terms of talents and abilities, and, gi ven the opportunity, employees will generate ideas to help themselves and the company. It concludes that leaders should be people oriented and that motivation comes from within the individual.

Explain the parts of a systems theory model in terms of a business organization.

In a business system, inputs include raw materials, financial resources, and human r esources. The transformation process is the company’s production function, including the assembly of physical products and the delivery of intangible services. Outputs are the finished, final goods and services sold to the public. The feedback mechanism provides corr ection and adjustment, keeping the organization in tune with its environment. Control s ystems, such as performance appraisals of individual employees and annual accounting stat ements for overall companies, are feedback mechanisms.

In terms of positive organizational behavior, what roles do popular-press books and scientific research play?

Popular press offers a quick fix. Positive organizational behavior seeks to identify human r esource strengths and capabilities that can be measured, developed, improved, and managed.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources Define management and self-management.

Management is accomplishing work and organizational goals by assisting, training, and leading others. Self-management involves all efforts designed to pursue personal goals.

What ingredients help build a solid business career?

Self-management requires training, preparation, finding the right person–organization fit, continuous improvement, and achieving balance.

What three levels of management require quality interpersonal skills?

First-line supervisor, middle management, and top-level management.

What are the four managerial orientations and duties that shift by hierarchical rank in a company?

Technical, conceptual, and managerial orientations change, tasks move from specific activi- ties to more general work, the manager’s time orientation tends to move toward the longer t erm, and the degree of human relations orientation evolves as a person moves upward thr ough the organization’s ranks.

What global management skills are vital to 21st-century managers?

Skills include selecting home- versus host-country employees and managers, adaptation to the local language, understanding how cultural differences influence business activities, and r eacting to international trends.

What is meant by the term “ethnocentrism”?

Ethnocentrism is the belief that one’s culture is inherently superior to others.

What factors create a new and evolving workplace in the 21st century?

Innovation and change, connectivity and networked organizations, and employment of temporary workers.

Analytical Exercises 1. Analyze this statement: “There are Theory X situations. There are Theory Y situ- ations. There are Theory X workers. There are Theory Y workers.” How does this stat ement relate to contingency theory? Can you think of situations in which only one of these four thoughts is accurate? Are there other situations in which none of the four truly applies? Explain your reasoning.

2. Explain the common elements in the work of Mary Parker Follett, the Hawthorne studies, Theory Y, Maslow’s humanism, and positive organizational behavior. Con- trast these ideas with scientific management, Theory X, and the time and motion stud y. How do all of these theories contrast with systems theory and contingency theory?

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources 3. Are there circumstances under which the demands of management interfere with self-management? Why or why not?

4. Make a list of the five most important elements in a job for you personally. Using the person–or ganization fit model, explain the type of company in which you would like t o work. Think of your response in terms of your current situation and then prepare a second list for 20 years from now. What will have changed?

5. Explain how relationships with entry-level employees would be different for each le vel of management.

6. Which of the factors that are part of the new and evolving workplace present the gr eatest challenges to 21st-century managers? Explain your answer. Key Terms construct A term used to represent an unobserv able process. c ontingency theory A managerial appr oach in which organizational variables ar e matched with or adapted to the situa- tion at hand.

cultural assimilator  A company employee w ho assists others in adapting to new coun- tries and cultures.

culture shock A feeling of disorientation that often occurs when an individual arrives in a new country.

ethnocentrism The belief that one’s cul- ture is inherently superior to others.

humanism The belief that the basic inner natur e of a person is inherently good.

human relations movement  An approach that focuses on the behavior of people r ather than solely on productivity.

hybrid field  A branch of study that draws fr om a variety of academic disciplines.

life-cycle concept In systems theory, the idea that organizations are born, grow, r each a maturity stage, and eventually decline and die. management A ccomplishing work and or ganizational goals by assisting, training, and leading others.

natural selection In systems theory, the concept that organizations that do not adapt to the environment will be selected out . or ganizational behavior (OB) The inves- tigation of the behavioral factors that affect modern organizations and their manage- ment at the individual, group, and organiza- tion-wide levels.

positive organizational behavior  The stud y and application of positively oriented human resource strengths and psychologi- cal capacities for performance improvement in today’s workplace.

reliability  The extent to which a variable can be consistently and repeatedly mea- sured in research.

scientific management An approach that merges classic scientific principles with what is known about the practice of management .

self-management  All efforts designed to pursue personal and professional goals.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution. Summary and Resources systems theory A viewpoint that concep- tualizes an organization as a set of inter- related parts working together in a holistic f ashion.

validity  The extent to which a study measur es what it purports to measure and its research findings can be generalized to other groups.

virtual workplace Digitally networked sets of employees and organizational departments.

\251 2017 Bridgepoint Education, Inc. All rights reserved. Not for resale or redistribution.