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Organizational Behavior

Eighteenth Edition, Global Edition

Chapter 1

What Is Organizational Behavior?

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Welcome to this Organizational Behavior course that uses the 18th edition of the textbook, Organizational Behavior by Robbins and Judge. This is considered among the most widely used OB textbooks in the world. Robbins and Judge are recognized as definitive aggregators of OB concepts, applications, and practices. The course and this book will provide you with a resource that will benefit you throughout your degree program and your professional life.

Learning Objectives

1.1 Demonstrate the importance of interpersonal skills in the workplace.

1.2 Define organizational behavior (OB).

1.3 Show the value to OB of systematic study.

1.4 Identify the major behavioral science disciplines that contribute to OB.

1.5 Demonstrate why few absolutes apply to OB.

1.6 Identify managers’ challenges and opportunities in applying OB concepts.

1.7 Compare the three levels of analysis in this text’s OB model.

1.8 Describe the key employability skills gained from studying OB applicable to other majors or future careers.

The first chapter entitled “What is Organizational Behavior,” begins by defining eight learning objectives for the chapter. These lay a foundational understanding for the origins of OB and its applications in management and organizational existence. You should focus on this chapter to ground yourself, and as a starting place for the more complex and significant concepts throughout the book. We will elaborate on each of these objectives to ensure that you acquire a base knowledge of the core OB competencies.

Demonstrate the Importance of Interpersonal Skills in the Workplace

Interpersonal skills are important because…

‘Good places to work’ have better financial performance.

Better interpersonal skills result in lower turnover of quality employees and higher quality applications for recruitment.

There is a strong association between the quality of workplace relationships and job satisfaction, stress, and turnover.

It fosters social responsibility awareness.

Managers need a cadre of skills to create a productive workplace, including technical and quantitative skills. However, leadership and communication skills are critical to organizational success. When managers have solid interpersonal skills, there are positive work outcomes for the organization. These outcomes include lower turnover of strong employees, improved recruitment pools for filling employment positions, and a better bottom line.

Describe the Manager’s Functions, Roles, and Skills (1 of 4)

Manager: Someone who gets things done through other people in organizations.

Organization: A consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.

Planning, organizing, leading, and controlling.

Mintzberg concluded that managers perform ten different, highly interrelated roles or sets of behaviors attributable to their jobs.

A manager is someone in the organization who gets things done through the efforts of other people. It is important to keep in mind that an organization is defined as a social entity comprised of two or more people and can be found at any level within the organization.

The work of managers revolves around four functions: planning, organizing, leading, and controlling. When thinking about these functions, one realization comes forward: that they all involve the interpersonal skills of communication for their effective implementation.

Henry Mintzberg looked at management differently when he defined the 10 roles of managers. As shown on the next slide, you will see that they again involve implementation through the interpersonal skills of communication.

Describe the Manager’s Functions, Roles, and Skills (2 of 4)

Exhibit 1-1 Minztberg’s Managerial Roles

Role	Description
Interpersonal	Blank
Figurehead	Symbolic head; required to perform a number of routine duties of a legal or social nature
Leader	Responsible for the motivation and direction of employees
Liaison	Maintains a network of outside contacts who provide favors and information
Informational	Blank
Monitor	Receives a wide variety of information; serves as nerve center of internal and external information of the organization
Disseminator	Transmits information received from outsiders or from other employees to members of the organization

In fact, if you look at the three categories of roles suggested by Mintzberg – interpersonal, informational, and decisional—you will note the distribution of communication and interpersonal skills such as tact, diplomacy, and the like, focusing on both internal and external audiences in the role’s activities. For this reason, developing the interpersonal skills introduced in this course is essential to the professional development of young professionals and is essential to managerial success.

Describe the Manager’s Functions, Roles, and Skills (3 of 4)

[Exhibit 1-1 Continued]

Role	Description
Spokesperson	Transmits information to outsiders on organization’s plans, policies, actions, and results; serves as expert on organization’s industry
Decisional	Searches organization and its environment for opportunities and initiates projects to bring about change
Entrepreneur	Responsible for corrective action when organization faces important, unexpected disturbances
Resource allocator	Makes or approves significant organizational decisions
Negotiator	Responsible for representing the organization at major negotiations

In fact, if you look at the three categories of roles suggested by Mintzberg—interpersonal, informational, and decisional—you will note the distribution of communication and interpersonal skills such as tact, diplomacy, and the like, focusing on both internal and external audiences in the role’s activities. For this reason, developing the interpersonal skills introduced in this course is essential to the professional development of young professionals and is essential to managerial success.

Describe the Manager’s Functions, Roles, and Skills (4 of 4)

Management Skills

Technical Skills – the ability to apply specialized knowledge or expertise. All jobs require some specialized expertise, and many people develop their technical skills on the job.

Human Skills – the ability to work with, understand, and motivate other people.

Conceptual Skills – the mental ability to analyze and diagnose complex situations.

What skills do managers need to effectively achieve their goals? Researchers have identified several skills that set successful managers apart from their less effective counterparts. These include technical skills, human skills, and conceptual skills.

Effective Versus Successful Managerial Activities (1 of 2)

Luthans and his associates found that all managers engage in four managerial activities:

Traditional management

Communication

Human resource management

Networking

Luthans and his research associates found that all managers engage in four managerial activities.

Traditional management is decision making, planning, and controlling. The average manager spent 32 percent of his or her time performing this activity.

Communication involves exchanging routine information and processing paperwork. The average manager spent 29 percent of his or her time performing this activity.

Human resource management includes motivating, disciplining, managing conflict, staffing, and training. The average manager spent 20 percent of his or her time performing this activity.

Networking is socializing, politicking, and interacting with outsiders. The average manager spent 19 percent of his or her time performing this activity.

Effective Versus Successful Managerial Activities (2 of 2)

Exhibit 1-2 Allocation of Activities by Time

Source: Based on F. Luthans, R. M. Hodgetts, and S. A. Rosenkrantz, Real Managers (Cambridge, MA: Ballinger, 1988).

Managers who were high performing in these activities were found to be fast-tracked through organizational promotion.

Define Organizational Behavior

Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge toward improving an organization’s effectiveness. More specifically, OB explores motivation, leader behavior and power, interpersonal communication, group structure and processes, attitude development and perception, change processes, conflict and negotiation, and work design.

Complementing Intuition with Systematic Study

Systematic Study of Behavior

Behavior generally is predictable if we know how the person perceived the situation and what is important to him or her.

Evidence-Based Management (EBM)

Complements systematic study.

Argues for managers to make decisions based on evidence.

Intuition

Systematic study and EBM add to intuition, or those “gut feelings” about “why I do what I do” and “what makes others tick.”

If we make all decisions with intuition or gut instinct, we’re likely working with incomplete information.

Many people say that the ideas and concepts of OB are common sense. However, the systematic study of OB has come closer to finding ways to predict the behavior of individuals and groups through an understanding of the situation and composition of the people. Evidence-based management (EBM) complements systematic study by basing managerial decisions on the best available scientific evidence.

“Intuition” is a decision-making approach advocated by numerous managers and pundits. However, if we make all decisions with intuition or gut instinct, we likely working with incomplete information. EBM and the systematic study of behavior enhance the understanding of these internal contributors to organizational behavior.

Big Data

Background:

The use of Big Data for managerial practices is a relatively new area, but one that holds convincing promise.

Current Usage:

The reasons for data analytics include predicting any event, detecting how much risk is incurred at any time, and preventing catastrophes.

New Trends:

The use of Big Data for understanding, helping, and managing people is relatively new but holds promise.

Limitations:

Use evidence as much as possible to inform your intuition and experience.

The recent availability of “big data” shows promise for the field of OB, potentially providing evidence that can be used to support intuition and experience.

Identify the Major Behavioral Science Disciplines That Contribute to OB (1 of 4)

Organizational behavior is an applied behavioral science that is built upon contributions from a number of behavioral disciplines:

Psychology

Social psychology

Sociology

Anthropology

OB is a behavioral social science that merges concepts from a number of different social sciences to apply specifically to the organizational setting at both the individual (or micro) and group (or macro) levels. The most significant social sciences are psychology, social psychology, sociology, and anthropology. Look at each for a moment.

Identify the Major Behavioral Science Disciplines That Contribute to OB (2 of 4)

Exhibit 1-3 Toward an OB Discipline

This exhibit shows the contributions made by other disciplines to the development of organizational behavior. Notice the predominant areas of psychology, social psychology, sociology, and anthropology. Each of the disciplines has contributed specific concepts and theories to the study of OB and its increasing applications.

Identify the Major Behavioral Science Disciplines That Contribute to OB (3 of 4)

Psychology

seeks to measure, explain, and sometimes change the behavior of humans and other animals.

Social psychology

blends the concepts of psychology and sociology.

Psychology focuses on the individual level by seeking to measure, explain, and sometimes change behaviors in individuals. This area of study offers insights into such areas as learning, training, decision-making, and employee selection.

Social psychology moves beyond individual analysis to look at group behavior and how individuals can influence one another. It blends together sociology and psychology and looks primarily at change, communication, and group interactions.

Identify the Major Behavioral Science Disciplines That Contribute to OB (4 of 4)

Sociology

studies people in relation to their social environment or culture.

Anthropology

is the study of societies to learn about human beings and their activities.

Sociology looks at the relationship between people and their environment. Sociologists’ main contribution to OB has been a better understanding of group behavior, particularly in formal and complex organizations. Another key area that sociologists contribute to in OB is organizational culture, a key factor in OB studies.

Anthropologists study societies to learn about human beings and their activities. They help us understand the differences between different groups in terms of their values, attitudes, and behaviors.

Demonstrate Why Few Absolutes Apply to OB

There are few, if any, simple and universal principles that explain organizational behavior.

Contingency variables situational factors are variables that moderate the relationship between the independent and dependent variables.

There are few absolutes in organizational behavior. When making decisions, you must always take into account the situational factors that can change the relationship between two variables. Every situation has the potential to have unseen factors or even known factors that can change rapidly. Opening your minds to detecting these changes and unseen factors, and to being ready with optional responses, is essential to effective management.

Identify the Challenges and Opportunities of OB Concepts (1 of 12)

Exhibit 1-4 Employment Options

Sources: Based on J. R. Anderson, E. Binney, N. M. Davis, G. Kraft, S. Miller, T. Minton-Eversole, . . . and A. Wright, “Action Items: 42 Trends Affecting Benefits, Compensation, Training, Staffing and Technology,” HR Magazine (January 2013): 33; M. Dewhurst, B. Hancock, and D. Ellsworth, “Redesigning Knowledge Work,” Harvard Business Review (January–February 2013): 58–64; E. Frauenheim, “Creating a New Contingent Culture,” Workforce Management (August 2012): 34–39; N. Koeppen, “State Job Aid Takes Pressure off Germany,” The Wall Street Journal, February 1, 2013, A8; and M. A. Shaffer, M. L. Kraimer, Y.-P. Chen, and M. C. Bolino, “Choices, Challenges, and Career Consequences of Global Work Experiences: A Review and Future Agenda,” Journal of Management (July 2012): 1282–1327.

Today’s economic uncertainty has created new challenges in the workplace. This exhibit shows some of the types of options individuals may have or would like to have.

Identify the Challenges and Opportunities of OB Concepts (2 of 12)

Responding to economic pressure

In tough economic times, effective management is an asset.

In good times, understanding how to reward, satisfy, and retain employees is at a premium.

In bad times, issues like stress, decision making, and coping come to the forefront.

During economic difficulties, the need for effective management is heightened. Anyone can manage during good times; it is much tougher to manage effectively through economic struggles.

In bad economic times, resource constraints may force managers to make tough decisions, such as whether to lay off employees. It can also be difficult to motivate employees when resources are limited. Moreover, managers must be able to deal with employees who are stressed about their futures.

Identify the Challenges and Opportunities of OB Concepts (3 of 12)

Responding to globalization

Increased foreign assignments.

Working with people from different cultures.

Overseeing movement of jobs to countries with low-cost labor.

Adapting to differing cultural and regulatory norms.

Globalization means that organizations now exist in an environment with no national borders. As a result, the manager’s job has changed. Managers today need to have a broader perspective when making decisions.

As foreign assignments increase, you will need to be able to manage a workforce that is different than what you may be used to, and which may bring different needs, aspirations, and attitudes to the workplace.

You will also have individuals who come from different cultures coming to work in your own country. You will need to find ways to accommodate their needs and help them assimilate to your workplace culture.

As more jobs move to countries with low-cost labor, managers will need to balance the needs of their organizations with the needs of the countries in which they operate.

In the new global village, managers need to understand the implications of differing cultural and legal practices on their operations. Violating local regulations and practices could have serious consequences for the organization.

Identify the Challenges and Opportunities of OB Concepts (4 of 12)

OB POLL Percentage of Men and Women Working

Sources: Based on U.S. Bureau of Labor Statistics, “Women in the Labor Force: A Datebook,” 2014, www.bls.gov/opub/reports/cps/women-in-the-labor-force-adatabook-2014.pdf; and U.S. Bureau of Labor Statistics, “Economic News Release,” 2013, http://www.bls.gov/news.release/ecopro.t02.htm.

As students of OB, we can investigate what factors lead employees to make various choices and how their experiences affect their perceptions of their workplaces. In turn, this can help us predict organizational outcomes. As shown in the OB Poll for example, the days when women stayed home because it was expected are just a memory in some cultures, while in others, women still face significant barriers to entry into the workplace.

Identify the Challenges and Opportunities of OB Concepts (5 of 12)

Managing workforce diversity

Workforce diversity – organizations are becoming more heterogeneous in terms of gender, age, race, ethnicity, sexual orientation, and inclusion of Workforce other diverse groups.

As the borders are disappearing, we are seeing more and more heterogeneity in the workplace. Managers today need to embrace diversity and find ways to manage it effectively. The changing demographics have shifted management philosophy in a way that recognizes and utilizes differences to create productivity, profitability, and welcoming workplace cultures.

Identify the Challenges and Opportunities of OB Concepts (6 of 12)

Improving customer service

Service employees have substantial interaction with customers.

Employee attitudes and behavior are associated with customer satisfaction.

Need a customer-responsive culture.

Many jobs today involve substantial interaction with customers. Managers can increase the chance that these interactions will be successful by focusing on employee attitudes and behavior. Companies need to develop customer-responsive cultures wherein employees are friendly and courteous, accessible, knowledgeable, prompt with their responses, and willing to do what is necessary to ensure that customers are satisfied.

Identify the Challenges and Opportunities of OB Concepts (7 of 12)

Improving people skills

People skills are essential to managerial effectiveness.

OB provides the concepts and theories that allow managers to predict employee behavior in given situations.

Because organizations are composed of people, organizations cannot achieve desired outcomes without them. Therefore, the skills to manage people successfully are essential to the effectiveness of anyone in a managerial or leadership role. OB provides the concepts and theories that help predict behavior to create a more effective organization, accomplishing desired goals.

Identify the Challenges and Opportunities of OB Concepts (8 of 12)

Working in networked organizations

Networked organizations are becoming more pronounced.

A manager’s job is fundamentally different in networked organizations.

Challenges of motivating and leading “online” require different techniques.

Networked organizations are proliferating. These are organizations that are spread over geographic, time, or other boundaries and that are connected by technology. Managing and leading people who never see each other but who work together requires a different set of management and leadership skills.

Identify the Challenges and Opportunities of OB Concepts (9 of 12)

Using social media at work

Policies on accessing social media at work.

When, where, and for what purpose.

Impact of social media on employee well-being.

Social media is a difficult issue for today’s manager, presenting both a challenge and an opportunity for OB.

Identify the Challenges and Opportunities of OB Concepts (10 of 12)

Enhancing employee well-being at work

The creation of the global workforce means work no longer sleeps.

Communication technology has provided a vehicle for working at any time or any place.

Employees are working longer hours per week.

The lifestyles of families have changed—creating conflict.

Balancing work and life demands now surpasses job security as an employee priority.

Because of the expansion of networked business to global competition, time is no longer a definable boundary of organizational activity and personnel responsibility. Managers and leaders of organizations are challenged to help employees find ways to balance work and life roles to ensure they remain effective and viable members of the team. Employees who feel as though they don’t get a break and who believe they must work 24 hours a day can be less effective, suffering from burnout and dissatisfaction.

Identify the Challenges and Opportunities of OB Concepts (11 of 12)

Creating a positive work environment

Positive organizational scholarship is concerned with how organizations develop human strength, foster vitality and resilience, and unlock potential.

This field of study focuses on employees’ strengths versus their limitations, as employees share situations in which they performed at their personal best.

Creating a positive work environment has been found to be a basis for employee satisfaction, increased productivity, and longevity of skilled personnel. Responsibility for positive work environments is not a part of traditional management practice, but as the work environment has changed in terms of characteristics and behaviors of younger generations, the focus on making work a good place to be has become more important for success. Positive organizational scholarship studies what is “good” about organizations.

Identify the Challenges and Opportunities of OB Concepts (12 of 12)

Improving ethical behavior

Ethical dilemmas and ethical choices are situations in which an individual is required to define right and wrong conduct.

Good ethical behavior is not so easily defined.

Organizations distribute codes of ethics to guide employees through ethical dilemmas.

Managers need to create an ethically healthy climate.

Increased scrutiny by society and governmental entities has increased business concerns with ethical behavior. Lapses in ethical behavior have resulted in everything ranging from public sanctions against businesses to legal penalties against a firm and its managers.

Ethical dilemmas require managers to make decisions involving right and wrong conduct. Managers and leaders must clearly define what constitutes appropriate, ethical behavior by the organization and its people, and they must lead by example.

Three Levels of Analysis in This Text’s OB Model

Exhibit 1-5 A Basic OB Model

This book proposes three types of variables—inputs, processes, and outcomes—at three levels of analysis: individual, group, and organizational.

The basic OB model here proceeds from left to right, with inputs leading to processes and processes leading to outcomes. Notice that the model also shows that outcomes can influence inputs in the future.

Three Levels of Analysis in This Book’s OB Model (1 of 3)

Inputs

Variables like personality, group structure, and organizational culture that lead to processes.

Group structure, roles, and team responsibilities are typically assigned immediately before or after a group is formed.

Organizational structure and culture change over time.

Inputs are factors that exist in advance of the employment relationships. For example, individual diversity characteristics, personality, and values are shaped by a combination of an individual’s genetic inheritance and childhood environment.

Group structure, roles, and team responsibilities are typically assigned immediately before or after a group is formed.

Finally, organizational structure and culture are usually the result of years of development and change as the organization adapts to its environment and builds up customs and norms.

Three Levels of Analysis in This Book’s OB Model (2 of 3)

Processes

If inputs are like the nouns in organizational behavior, processes are like verbs.

Defined as actions that individuals, groups, and organizations engage in as a result of inputs, and that lead to certain outcomes.

Processes are actions that individuals, groups, and organizations engage in as a result of inputs, and that lead to certain outcomes.

At the individual level, processes include emotions and moods, motivation, perception, and decision-making.

At the group level, they include communication, leadership, power and politics, and conflict and negotiation.

Finally, at the organizational level, processes include human resource management and change practices.

Three Levels of Analysis in This Book’s OB Model (3 of 3)

Outcomes

Key variables that you want to explain or predict, and that are affected by some other variables.

Scholars have emphasized individual-level outcomes like attitudes and satisfaction, task performance, citizenship behavior, and withdrawal behavior.

At the group level, cohesion and functioning are the dependent variables.

Finally, at the organizational level, we look at overall profitability and survival.

Because these outcomes will be covered in all of the chapters, we will briefly discuss each of them on the following slides, so you can understand what the “goal” of OB will be.

Outcome Variables (1 of 6)

Attitudes and stress

Employee attitudes are the evaluations employees make, ranging from positive to negative, about objects, people, or events.

Stress is an unpleasant psychological process that occurs in response to environmental pressures.

The belief that satisfied employees are more productive than dissatisfied employees has been a basic tenet among managers for years, though only now research has begun to support it. Some people might think that influencing employee attitudes and stress is purely soft stuff, and not the business of serious managers, but as we will show, attitudes often have behavioral consequences that relate directly to organizational effectiveness.

Outcome Variables (2 of 6)

Task performance

The combination of effectiveness and efficiency at doing your core job tasks is a reflection of your level of task performance.

Task performance is the most important human output contributing to organizational effectiveness, so in every chapter we devote considerable time to discussing how task performance is affected by specific topics.

Outcome Variables (3 of 6)

Organizational citizenship behavior

The discretionary behavior that is not part of an employee’s formal job requirements, and that contributes to the psychological and social environment of the workplace, is called organizational citizenship behavior.

In today’s dynamic workplace, where tasks are increasingly performed by teams and flexibility is critical, employees who engage in good citizenship behaviors help others on their team by volunteering for extra work, avoiding unnecessary conflicts, respecting the spirit as well as the letter of rules and regulations, and gracefully tolerating occasional work-related impositions and nuisances.

Outcome Variables (4 of 6)

Withdrawal behavior

Withdrawal behavior is the set of actions that employees take to separate themselves from the organization.

Employee withdrawal can have a very negative effect on an organization. The cost of employee turnover alone has been estimated to run into the thousands of dollars, even for entry-level positions. Absenteeism also costs organizations significant amounts of money and time every year. For instance, a recent survey found the average direct cost to U.S. employers of unscheduled absences is 8.7 percent of payroll.

Outcome Variables (5 of 6)

Group cohesion

Group cohesion is the extent to which members of a group support and validate one another at work.

Group functioning

Group functioning refers to the quantity and quality of a group’s work output.

When employees trust one another, seek common goals, and work together to achieve these common goals, the group is cohesive. Conversely, when employees are divided among themselves in terms of what they want to achieve and have little loyalty to one another, the group is not cohesive. And the greater the group’s cohesion, the greater the effect of group functioning that leads to effective outcomes and satisfying impacts on group members.

Outcome Variables (6 of 6)

Productivity

An organization is productive if it achieves its goals by transforming inputs into outputs at the lowest cost. This requires both effectiveness and efficiency.

Survival

The final outcome is organizational survival, which is simply evidence that the organization is able to exist and grow over the long term.

Popular measures of organizational efficiency include return on investment, profit per dollar of sales, and output per hour of labor. Service organizations must include customer needs and requirements in assessing their effectiveness. These measures of productivity are affected by the behaviors of managers, employees, and supervisors. Increased productivity leads to the ultimate goal of most organizations, which is the survival of the firm.

The Plan of the Text

Exhibit 1-6 The Plan of the Text

As you can see in this exhibit, we will deal with inputs, processes, and outcomes at all three levels of analysis, but we group the chapters as shown here to correspond with the typical ways that research has been done in these areas.

Implications for Managers (1 of 2)

Resist the inclination to rely on generalizations; some provide valid insights into human behavior, but many are erroneous.

Use metrics and situational variables rather than “hunches” to explain cause-and-effect relationships.

Work on your interpersonal skills to increase your leadership potential.

This first chapter has provided a firm foundation that will be the basis for the study and application of concepts and practices that make the young professional more successful in productivity, job satisfaction, and career development. The systematic study of OB can improve predictability of behavior and, while it is not perfect, it provides excellent roadmaps to guide managers and leaders. These studies help to ensure that contingencies are in place to better understand people’s behaviors and how to influence them for the success of the employee and the organization.

Implications for Managers (2 of 2)

Improve your technical skills and conceptual skills through training and staying current with OB trends like big data and fast data.

OB can improve your employees’ work quality and productivity by showing you how to empower your employees, design and implement change programs, improve customer service, and help your employees balance work-life conflicts.

It is important for managers to develop their interpersonal “people skills” to be effective. Understanding OB makes their organizations work more effectively by improving productivity, reducing absenteeism, turnover, and deviant workplace behavior, and increasing organizational citizenship behavior and job satisfaction.

Learning Objectives

1.1 Demonstrate the importance of interpersonal skills in the workplace.

1.2 Define organizational behavior (OB).

1.3 Show the value to OB of systematic study.

1.4 Identify the major behavioral science disciplines that contribute to OB.

1.5 Demonstrate why few absolutes apply to OB.

1.6 Identify managers’ challenges and opportunities in applying OB concepts.

1.7 Compare the three levels of analysis in this text’s OB model.

1.8 Describe the key employability skills gained from studying OB applicable to other majors or future careers.

Questions?

Organizational Behavior

Eighteenth Edition, Global Edition

Chapter 2

Diversity in Organizations

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Learning Objectives

2.1 Describe the two major forms of workplace diversity.

2.2 Demonstrate how workplace discrimination undermines organizational effectiveness.

2.3 Describe how the key biographical characteristics are relevant to Organizational Behavior (OB).

2.4 Explain how other differentiating characteristics factor into OB.

2.5 Demonstrate the relevance of intellectual and physical abilities to OB.

2.6 Describe how organizations manage diversity effectively.

After studying this chapter, you should be able to:

Describe the two major forms of workplace diversity.

Demonstrate how workplace discrimination undermines organizational effectiveness.

Describe how the key biographical characteristics are relevant to OB.

Explain how other differentiating characteristics factor into OB.

Demonstrate the relevance of intellectual and physical abilities to OB.

Describe how organizations manage diversity effectively.

Workplace Diversity

Everyone brings differences to the organizations where they work. These differences can create energy and excitement in the workplace, but they can also cause conflict. So, it is important that we have an understanding of how diversity works in organizations.

When we look at the workplace, we recognize two levels of diversity. Surface-level diversity represents the characteristics that are easily observed such as race, gender, and age. Deep-level diversity represents the aspects that are more difficult to see at first glance such as values, personality, and work preferences.

Workplace Discrimination and Organizational Effectiveness (1 of 3)

Discrimination is to note a difference between things.

Unfair discrimination assumes stereotypes about groups.

Refusal to recognize individual differences is harmful to organizations and employees.

Stereotype threat describes the degree to which we agree internally with the generally negative stereotyped perceptions of our groups.

Can be combatted by treating employees as individuals and not highlighting group differences.

Managing diversity effectively requires working to eliminate unfair discrimination. The act of discrimination means to note differences between things, which isn’t a bad thing. However, when we allow our behavior to be influenced by stereotypes about groups of people, unfair discrimination can be harmful to organizations and employees. Recognizing people for their abilities rather than assumptions of stereotypes is an important part of OB and its application to the work environment.

Stereotype threat has serious implications for the workplace. Stereotype threat can occur during preemployment tests and assessments, performance evaluations, and everyday workplace exchanges. It can lead to underperformance on tests, performance evaluations, training exercises, negotiations, and everyday interactions with others as well as to disengagement, poor job attitudes, a reluctance to seek feedback, and poor performance in the employees experiencing the threat.

Workplace Discrimination and Organizational Effectiveness (2 of 3)

Exhibit 2-1 Forms of Discrimination

Type of Discrimination	Definition	Examples from Organizations
Discriminatory policies or practices	Actions taken by representatives of the organization that deny equal opportunity to perform or unequal rewards for performance.	Older workers may be targeted for layoffs because they are highly paid and have lucrative benefits.
Sexual harassment	Unwanted sexual advances and other verbal or physical conduct of a sexual nature that create a hostile or offensive work environment.	Salespeople at one company went on company-paid visits to strip clubs, brought strippers into the office to celebrate promotions, and fostered pervasive sexual rumors.
Intimidation	Overt threats or bullying directed at members of specific groups of employees.	African-American employees at some companies have found nooses hanging over their work stations.
Mockery and insults	Jokes or negative stereotypes; sometimes the result of jokes taken too far.	Arab-Americans have been asked at work whether they were carrying bombs or were members of terrorist organizations.

This Exhibit lists definitions and examples of different types of discrimination. Increasing legal scrutiny and social disapproval have reduced most overt forms of discrimination, but less obvious discrimination, like incivility or exclusion, continues to exist. This type of discrimination can be difficult to eliminate because it’s less easily observed, and because it’s not always intentional. Even so, it can have serious negative implications for an organization including reduced productivity, increased turnover, and increased conflict among employees.

Workplace Discrimination and Organizational Effectiveness (3 of 3)

[Exhibit 2-1 Continued]

Type of Discrimination	Definition	Examples from Organizations
Exclusion	Exclusion of certain people from job opportunities, social events, discussions, or informal mentoring; can occur unintentionally.	Many women in finance claim they are assigned to marginal job roles or are given light workloads that don’t lead to promotion.
Incivility	Disrespectful treatment, including behaving in an aggressive manner, interrupting the person, or ignoring his or her opinions.	Female lawyers note that male attorneys frequently cut them off or do not adequately address their comments.

Sources: Based on J. Levitz and P. Shishkin, “More Workers Cite Age Bias after Layoffs,” The Wall Street Journal, March 11, 2009, D1–D2; W. M. Bulkeley, “A Data-Storage Titan Confronts Bias Claims,” The Wall Street Journal, September 12, 2007, A1, A16; D. Walker, “Incident with Noose Stirs Old Memories,” McClatchy-Tribune Business News, June 29, 2008; D. Solis, “Racial Horror Stories Keep EEOC Busy,” Knight-Ridder Tribune Business News, July 30, 2005, 1; H. Ibish and A. Stewart, Report on Hate Crimes and Discrimination against Arab Americans: The Post-September 11 Backlash, September 11, 2001–October 11, 2001 (Washington, DC: American-Arab Anti-Discrimination Committee, 2003); A. Raghavan, “Wall Street’s Disappearing Women,” Forbes, March 16, 2009, 72–78; and L. M. Cortina, “Unseen Injustice: Incivility as Modern Discrimination in Organizations,” Academy of Management Review 33, no. 1 (2008): 55–75.

Biographical Characteristics and Organizational Behavior (1 of 6)

Biological characteristics are personal characteristics that are objective and easily obtained from personnel records.

Variations in these can be the basis for discrimination

Biographical characteristics typically include age, gender, and race, and represent many of the surface-level aspects of diversity. We can usually find out about these from personnel records. Because biological characteristics can be the basis for discrimination, it’s important to understand how they are related to work outcomes.

Biographical Characteristics and Organizational Behavior (2 of 6)

Age

The U.S. workforce is aging.

Does job performance decline with increasing age?

Studies show that turnover and absenteeism rates are lower among older workers, and age is not associated with lower productivity.

Age is an increasingly relevant characteristic as the workforce is aging. Older workers bring with them a wealth of knowledge and experience, but the misperception is that productivity often declines with age. Whether this is true or not, it is a perception people act upon and will affect the workplace.

Biographical Characteristics and Organizational Behavior (3 of 6)

Sex

There are no consistent male-female differences in problem-solving ability, analytical skills, competitive drive, motivation, sociability, or learning drive.

But women earn less than men for the same positions and have fewer professional opportunities.

Another biological characteristic is sex. In studying gender in the workplace, it has been found that there are very few differences between men and women that impact job performance. However, women still earn less money than men for the same positions and working mothers may face additional bias that limits their professional opportunities.

Biographical Characteristics and Organizational Behavior (4 of 6)

Race and Ethnicity

Laws against race and ethnic discrimination are in effect in many countries.

But:

Employees tend to favor colleagues of their own race in performance evaluations, promotion decisions, and pay raises.

African Americans generally fare worse than Whites in employment decisions.

Race is a controversial issue and research shows members of racial and ethnic minorities perceive discrimination in the workplace. More specifically, studies indicate that people in the workplace do identify more with people like themselves; so in some cases, opportunities may be given to people based on the fact that they are like their supervisor, rather than on their merits. Keep in mind, though, that research has found no significant differences in race or ethnic backgrounds related to absence rates, applied social skills, or accident rates, and that discrimination can lead to higher turnover.

Biographical Characteristics and Organizational Behavior (5 of 6)

Disabilities

The U.S. Equal Employment Opportunity Commission classifies a person as disabled who has any physical or mental impairment that substantially limits one or more major life activities.

Workers with disabilities receive higher performance evaluations, but may have lower performance expectations.

According to the U.S. Equal Employment Opportunity Commission, a person with a disability is one who has a physical or mental impairment that limits one or more major life activities. The Americans with Disabilities Act of 1990 requires employers to make “reasonable accommodation” for disabilities. Even so, individuals with disabilities continue to face bias in the workplace.

Biographical Characteristics and Organizational Behavior (6 of 6)

Hidden Disabilities

Sensory disabilities, chronic illness or pain, cognitive or learning impairments, sleep disorders, and psychological challenges.

U.S. organizations must accommodate employees with a very broad range of impairments.

As a result of recent changes to the Americans with Disabilities Act Amendments Act of 2008, U.S. organizations must accommodate employees with a very broad range of impairments such as sensory disabilities, chronic illness or pain, cognitive or learning impairments, sleep disorders, and psychological challenges. However, employees must disclose their conditions to their employers in order to be eligible for workplace accommodations and employment protection.

Other Characteristics and Organizational Behavior (1 of 2)

Tenure

Tenure is a good predictor of employee productivity.

Tenure and job performance are positively related.

Religion

U.S. law prohibits discrimination based on religion, but it is still an issue, especially for Muslims.

Tenure refers to the length of time people have been on the job. Tenure is often seen as a positive, as it signifies that people are happy with their employment because they have remained in their job for a long period of time. Therefore, employees with long tenure tend to be more productive, call in sick less frequently, and don’t leave the organization as readily.

Discrimination based on religion is prohibited in the United States; however, it continues to be an issue in the workplace. Muslims in particular may face discrimination, but bias against other religious beliefs exists as well. In fact, religious discrimination claims represent an increasing share of all discrimination claims in the United States.

Other Characteristics and Organizational Behavior (2 of 2)

Sexual Orientation and Gender Identity

Federal law does not protect employees against discrimination based on sexual orientation, though many states and municipalities do.

Many Fortune 500 companies have policies covering sexual orientation and about half now have policies on gender identity.

Cultural Identity

Need to accommodate and respect individual cultural identities.

Sexual orientation and gender identity are not protected by federal law and as a result, they are handled differently by most employers. These characteristics are often dealt with as if they are federally protected characteristics even though they are not, in order to discourage discriminatory behavior. For example, about 90 percent of Fortune 500 companies have policies on sexual orientation and roughly half have policies on gender identity. This is a big change from just a few years ago, and there are indications that legislation may soon be in place to protect gay, lesbian, bisexual, and transgender employees.

Finally, it is important for companies to respect and accommodate the cultural identities of their employees.

Intellectual and Physical Abilities and OB (1 of 5)

Ability is an individual’s current capacity to perform various tasks in a job.

Two types

Intellectual abilities

Physical abilities

Ability is an individual’s capacity to perform job tasks. An individual’s overall abilities are composed of intellectual abilities and physical abilities.

Intellectual and Physical Abilities and OB (2 of 5)

Intellectual abilities are abilities needed to perform mental activities – thinking, reasoning, and problem solving.

Most societies place a high value on intelligence.

General mental ability is an overall factor of intelligence as suggested by the positive correlations among specific intellectual ability dimensions.

Intellectual abilities are those needed to perform mental activities. These would include abilities such as critical thinking, reasoning, and problem-solving. In most cultures, high value is placed on intelligence and it is easy to see why. Smart people tend to earn more money, attain higher levels of education, and be leaders.

Intellectual and Physical Abilities and OB (3 of 5)

Exhibit 2-2 Dimensions of Intellectual Ability

Dimension	Description	Job Example
Number aptitude	Ability to do speedy and accurate arithmetic	Accountant: Computing the sales tax on a set of items
Verbal comprehension	Ability to understand what is read or heard and the relationship of words to each other	Plant manager: Following corporate policies on hiring
Perceptual speed	Ability to identify visual similarities and differences quickly and accurately	Fire investigator: Identifying clues to support a charge of arson
Inductive reasoning	Ability to identify a logical sequence in a problem and then solve the problem	Market researcher: Forecasting demand for a product in the next time period
Deductive reasoning	Ability to use logic and assess the implications of an argument	Supervisor: Choosing between two different suggestions offered by employees
Spatial visualization	Ability to imagine how an object would look if its position in space were changed	Interior decorator: Redecorating an office
Memory	Ability to retain and recall past experiences	Salesperson: Remembering the names of customers

The seven most frequently cited dimensions making up intellectual abilities are number aptitude, verbal comprehension, perceptual speed, inductive reasoning, deductive reasoning, spatial visualization, and memory.

Exhibit 2-2 describes these dimensions. If you score high on verbal comprehension, you’re more likely to also score high on spatial visualization. Evidence strongly supports the idea that the structures and measures of intellectual abilities generalize across cultures.

Intellectual and Physical Abilities and OB (4 of 5)

Physical Abilities

The capacity to do tasks demanding stamina, dexterity, strength, and similar characteristics.

Nine basic abilities related to strength, flexibility, and other factors are needed to perform physical tasks.

Physical abilities are needed when performance requires physical activity to complete a task. Research has identified nine basic abilities that are needed to perform physical tasks—they are shown in the following slide. Managers need to identify which of these abilities are necessary for specific jobs, and then ensure that people in those jobs have the necessary abilities to do their jobs successfully.

Intellectual and Physical Abilities and OB (5 of 5)

Exhibit 2-3 Nine Basic Physical Abilities

Strength Factors	Blank
1. Dynamic strength	Ability to exert muscular force repeatedly or continuously over time
2. Trunk strength	Ability to exert muscular strength using the trunk (particularly abdominal) muscles
3. Static strength	Ability to exert force against external objects
4. Explosive strength	Ability to expend a maximum of energy in one or a series of explosive acts
Flexibility Factors	Blank
5. Extent flexibility	Ability to move the trunk and back muscles as far as possible
6. Dynamic flexibility	Ability to make rapid, repeated flexing movements
Other Factors	Blank
7. Body coordination	Ability to coordinate the simultaneous actions of different parts of the body
8. Balance	Ability to maintain equilibrium despite forces pulling off balance
9. Stamina	Ability to continue maximum effort requiring prolonged effort over time

Exhibit 2-3 shows the nine basic physical abilities needed to perform physical tasks. Strength factors include dynamic strength, trunk strength, static strength, and explosive strength. Flexibility factors include both components of extent flexibility and dynamic flexibility. Other factors include body coordination, balance, and stamina.

Describe How Organizations Manage Diversity Effectively (1 of 6)

Diversity management is the process and programs by which managers make everyone more aware of and sensitive to the needs and differences of others.

Diversity is more successful when it is everyone’s business, not just for certain groups of employees.

Diversity management makes everyone more aware of and sensitive to the needs and differences of others. Diversity management programs are more successful when they are the norm for everyone, rather than just for certain groups of employees.

Describe How Organizations Manage Diversity Effectively (2 of 6)

Managing diversity effectively begins by attracting, selecting, developing, and retaining employees who can operate and excel in a workplace with diverse individuals, viewpoints, and ideas. These efforts are then complemented by effectively managing diversity in groups and ensuring that strong diversity programs are in place.

Describe How Organizations Manage Diversity Effectively (3 of 6)

Attracting, selecting, developing, and retaining diverse employees

Target recruiting messages to specific demographic groups.

Some companies have been actively working toward recruiting less-hired groups.

Attracting, selecting, developing, and retaining diverse employees are important to the process. Recruiting messages should be targeted to specific demographic groups that are underrepresented in the workforce.

Describe How Organizations Manage Diversity Effectively (4 of 6)

Diversity in Groups

Most people in groups need a common way of looking at and accomplishing major tasks, and they need to communicate well with each other.

Emphasize higher-level similarities among people.

Working in group settings is common in most contemporary workplaces. To be effective members of a group, employees need a common way of looking at and accomplishing major tasks, as well as good communication skills. Emphasizing higher-level similarities can also increase the effectiveness of groups.

Describe How Organizations Manage Diversity Effectively (5 of 6)

Expatriate Adjustment

Organizations should select employees for international assignments who are capable of adjusting quickly and ensure they have the support they need for their assignment.

Several factors should be targeted to help the adjustment process for expatriates.

Feelings of empowerment along with the motivation to interact with those of other cultures were found in to be related to adjustment, satisfaction, and reduced intentions to leave prematurely.

Those with previous culture-specific work experience as well as higher self-esteem and self-efficacy tend to adjust and be promoted more quickly.

Several other factors work in concert to affect different forms of adjustment, including language ability, relational skills, role clarity and autonomy, organizational support, and familial support.

Describe How Organizations Manage Diversity Effectively (6 of 6)

Effective diversity programs

Teach managers about the legal framework for equal employment opportunity and encourage fair treatment of all people.

Teach managers how a diverse workforce will be more effective at serving a diverse customer base.

Foster personal development practices that bring out the skills and abilities of everyone.

Effective diversity programs have three components. First, they teach managers about the legal framework for equal employment opportunity and encourage fair treatment of all people regardless of their demographic characteristics. Second, they teach managers how a diverse workforce will be better able to serve a diverse market of customers and clients. Finally, they foster personal development practices that bring out the skills and abilities of all workers, acknowledging how differences in perspective can be a valuable way to improve performance for everyone.

Implications for Managers

Understand your organization's anti-discrimination policies thoroughly and share them with your employees.

Assess and challenge your own stereotype beliefs to increase your objectivity.

Look beyond readily observable biographical characteristics and consider the individual’s capabilities before making management decisions.

Fully evaluate what accommodations a person with disabilities will need and then fine-tune a job to that person’s abilities.

Seek to understand and respect the unique biographical characteristics of your employees; a fair but individualistic approach yields the best performance.

Understand your organization's anti-discrimination policies thoroughly and share them with your employees.

Assess and challenge your stereotype beliefs to increase your objectivity.

Look beyond readily observable biographical characteristics and consider the individual’s capabilities before making management decisions.

Fully evaluate what accommodations a person with disabilities will need and then fine-tune a job to that person’s abilities.

Seek to understand and respect the unique biographical characteristics of your employees; a fair but individualistic approach yields the best performance.

Learning Objectives

2.1 Describe the two major forms of workplace diversity.

2.2 Demonstrate how workplace discrimination undermines organizational effectiveness.

2.3 Describe how the key biographical characteristics are relevant to Organizational Behavior (OB).

2.4 Explain how other differentiating characteristics factor into OB.

2.5 Demonstrate the relevance of intellectual and physical abilities to OB.

2.6 Describe how organizations manage diversity effectively.

After studying this chapter, you should be able to:

Describe the two major forms of workplace diversity.

Demonstrate how workplace discrimination undermines organizational effectiveness.

Describe how the key biographical characteristics are relevant to OB.

Explain how other differentiating characteristics factor into OB.

Demonstrate the relevance of intellectual and physical abilities to OB.

Describe how organizations manage diversity effectively.

Questions?