write a journal

Chapter15-16.pptx

Home >Human Resource Management homework help >write a journal

Organizational Behavior

Eighteenth Edition, Global Edition

Chapter 15

Organizational Culture

If this PowerPoint presentation contains mathematical equations, you may need to check that your computer has the following installed:

1) MathType Plugin

2) Math Player (free versions available)

3) NVDA Reader (free versions available)

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.

Chapter 16: Organizational Culture

Learning Objectives

15.1 Describe the common characteristics of organizational culture.

15.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.

15.3 Identify the factors that create and sustain an organization’s culture.

15.4 Show how culture is transmitted to employees.

15.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.

15.6 Show how national culture can affect the way organizational culture is transported to another country.

After studying this chapter, you should be able to:

Describe the common characteristics of organizational culture.

Compare the functional and dysfunctional effects of organizational culture on people and the organization.

Identify the factors that create and sustain an organization’s culture.

Show how culture is transmitted to employees.

Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.

Show how national culture can affect the way organizational culture is transported to another country.

Common Characteristics of Organizational Culture (1 of 6)

A Definition of Organizational Culture

Organizational culture refers to a system of shared meaning held by members that distinguishes the organization from other organizations.

Common Characteristics of Organizational Culture (2 of 6)

Primary characteristics that capture the essence of an organization’s culture:

Adaptability

Detail orientation

Results/Outcome orientation

People/Customer orientation

Collaboration/Team orientation

Integrity

Six primary characteristics capture the essence of an organization’s culture. Each of the characteristics exists on a continuum from low to high. They are:

1. Adaptability. The degree to which employees are encouraged to be innovative and flexible as well as to take risks and experiment.

2. Detail orientation. The degree to which employees are expected to exhibit precision, analysis, and attention to detail.

3. Results/Outcome orientation. The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve them.

4. People/Customer orientation. The degree to which management decisions take into consideration the effect of outcomes on people within and outside of the organization.

5. Collaboration/Team orientation. The degree to which work activities are organized around teams rather than individuals.

6. Integrity. The degree to which people exhibit integrity and high ethical standards in their work.

Common Characteristics of Organizational Culture (3 of 6)

Another common cultural framework groups organizations into:

The Clan

The Adhocracy

The Market

The Hierarchy

Another common culture framework groups organizations into one of four types, each which has its own assumptions, beliefs, values, artifacts, and even criteria for effectiveness:3

1. “The Clan.” A culture which is based on human affiliation. Employees value attachment, collaboration, trust, and support.

2. “The Adhocracy.” A culture which is based on change. Employees value growth, variety, attention to detail, stimulation, and autonomy.

3. “The Market.” A culture which is based on achievement. Employees value communication, competence, and competition.

4. “The Hierarchy.” A culture which is based on stability. Employees value communication, formalization, and routine.

The differences between these cultures are reflected in their internal vs. external focus and their flexibility and stability.

Common Characteristics of Organizational Culture (4 of 6)

Culture as a Descriptive Term

Organizational culture is concerned with employees’ perceptions of the characteristics of the culture, not whether they like them.

Does it encourage teamwork?

Does it reward innovation?

Does it stifle initiative?

It differs from job satisfaction:

Job satisfaction is evaluative.

Organizational culture is descriptive.

Organizational culture is concerned with employees’ perceptions of the characteristics of the culture, not whether they like them. Research has sought to measure how employees see their organization by asking questions like “Does it encourage teamwork? ,” “Does it reward innovation? ,” and “Does it stifle initiative?” Organizational culture differs from job satisfaction in that job satisfaction is evaluative while organizational culture is descriptive.

Common Characteristics of Organizational Culture (5 of 6)

Do Organizations Have Uniform Cultures?

Most organizations have a dominant culture and numerous sets of subcultures.

The dominant culture expresses the core values a majority of members share and that give the organization distinct personality.

Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences that members face.

Most organizations have a dominant culture and numerous sets of subcultures. The dominant culture expresses the core values that are shared by a majority of the organization’s members. Subcultures tend to develop in large organizations to reflect common problems, situations, or experiences that members face.

If organizations were composed only of numerous subcultures, organizational culture as an independent variable would be significantly less powerful. It is the “shared meaning” aspect of culture that makes it such a potent device for guiding and shaping behavior. That’s what allows us to say, for example, that the Zappos culture values customer care and dedication over speed and efficiency, and to use that information to better understand the behavior of Zappos’ executives and employees. But subcultures can influence members’ behavior too.

Common Characteristics of Organizational Culture (6 of 6)

Strong versus Weak Cultures

Strong culture: core values are intensely held and widely shared.

The more members who accept the core values and the greater their commitment, the stronger the culture and the greater its influence on member behavior.

In a strong culture, core values are intensely held and widely shared. Moreover, the more members accept the core values, and the greater their commitment to those values, the stronger the culture is. The unanimity of purpose builds cohesiveness, loyalty, and organizational commitment, and in doing so, reduces employee turnover. High formalization creates predictability, orderliness, and consistency.

A strong culture should more directly affect organizational outcomes because it demonstrates high agreement about what the organization represents. Such unanimity of purpose builds cohesiveness, loyalty, meaning, and organizational commitment.

What Do Cultures Do? (1 of 9)

The Functions of Culture

Boundary-defining role.

Conveys a sense of identity for members.

Facilitates the generation of commitment.

Enhances the stability of the social system.

Serves as a sense-making and control mechanism.

What role does culture perform? Cultures can be positive or negative for organizations. Culture is a boundary-defining role; it conveys a sense of identity for members; it facilitates the generation of commitment; it enhances the stability of the social system; and culture serves as a sense-making and control mechanism to guide and shape the attitudes and behavior of employees. In essence, culture defines the rules of the game.

What Do Cultures Do? (2 of 9)

Culture Creates Climate

Organizational climate is shared perceptions about the organization and work environment.

Team spirit at the organizational level.

Climates can interact with one another to produce behavior.

Climate also influences the habits people adopt.

Organizational climate refers to the shared perceptions organizational members have about their organization and work environment. This aspect of culture is like team spirit at the organizational level. When everyone has the same general feelings about what’s important or how well things are working, the effect of these attitudes will be more than the sum of the individual parts. A positive overall workplace climate has been linked to higher customer satisfaction and financial performance.

Climates can interact with one another to produce behavior. For example, a positive climate for worker empowerment can lead to higher levels of performance in organizations that also have a climate for personal accountability.

Climate also influences the habits people adopt. If the climate for safety is positive, for example, everyone wears safety gear and follows safety procedures even if individually they wouldn’t normally think very often about being safe. Indeed, many studies have shown that a positive safety climate decreases the number of documented injuries on the job.

What Do Cultures Do? (3 of 9)

The Ethical Dimension of Culture

Organizational cultures are not neutral in their ethical orientation, even when they are not openly pursuing ethical goals.

Over time, the ethical culture, or the shared concept of right and wrong behavior in that workplace, develops as part of the organizational climate.

The ethical climate reflects the true values of the organization and shapes the ethical decision making of its members.

Organizational cultures are not neutral in their ethical orientation, even when they are not openly pursuing ethical goals. Over time, the ethical culture, or the shared concept of right and wrong behavior in that workplace, develops as part of the organizational climate. The ethical climate reflects the true values of the organization and shapes the ethical decision making of its members.

What Do Cultures Do? (4 of 9)

Ethical climate theory (ECT) and the ethical climate index (ECI) categorize and measure the ethical dimensions of organizational cultures.

Five climate categories: instrumental, caring, independence, law and code, and rules.

Each explains the general mindset, expectations, and values of the managers and employees in relationship to their organization.

Ethical climate powerfully influences the way its individual members feel they should behave.

Researchers have developed the ethical climate theory (ECT) and the ethical climate index (ECI) to categorize and measure the ethical dimensions of organizational cultures. Of the nine identified climate categories, five are found to be most prevalent in organizations: instrumental, caring, independence, law and code, and rules. Each explains the general mindset, expectations, and values of the managers and employees in relationship to their organization.

Organizations often progress through different categories as they move through their business life cycle.

An organization’s ethical climate powerfully influences the way its individual members feel they should behave, so much so that researchers have been able to predict organizational outcomes from the climate categories. Instrumental climates are negatively associated with employee job satisfaction and organizational commitment, even though those climates appeal to self-interest (of the employee and the company). They are positively associated with turnover intentions, workplace bullying, and deviant behavior. Caring and rules climates have a positive association with job satisfaction. Caring, independence, rules, and law and code climates also reduce employee turnover intentions, workplace bullying, and dysfunctional behavior.

What Do Cultures Do? (5 of 9)

Studies of ethical climates and workplace outcomes suggest that some climate categories are likely to be found in certain organizations.

By measuring the collective levels of moral sensitivity, judgment, motivation, and character of our organizations, we may be able to judge the strength of the influence our ethical climates have on us.

Studies of ethical climates and workplace outcomes suggest that some climate categories are likely to be found in certain organizations. Industries with exacting standards such as engineering, accounting, and law tend to have a rules or a law and code climate. Industries that thrive on competitiveness such as financial trading often have an instrumental ethical climate. Industries with missions of benevolence are likely to have a caring climate, even if they are for-profit as in an environmental protection firm. Research is exploring why organizations tend to fall into certain climate categories by industry, especially successful organizations.

We cannot conclude that instrumental climates are always bad, or that caring climates are always good. But by measuring the collective levels of moral sensitivity, judgment, motivation, and character of our organizations, we may be able to judge the strength of the influence our ethical climates have on us.

What Do Cultures Do? (6 of 9)

Sustainability: practices that can be maintained over very long periods of time because the tools or structures that support the practices are not damaged by the processes.

Social sustainability practices.

Sustainable management doesn’t need to be purely altruistic.

To create a truly sustainable business, an organization must develop a long-term culture and put its values into practice.

Like other cultural practices we’ve discussed, sustainability needs time and nurturing to grow.

As the name implies, sustainability refers to practices that can be maintained over very long periods of time because the tools or structures that support the practices are not damaged by the processes.

One survey found that a great majority of executives saw sustainability as an important part of future success.

Social sustainability practices address the ways social systems are affected by an organization’s actions over time, and in turn, how changing social systems may affect the organization. For example, farmers in Australia have been working collectively to increase water use efficiency, minimize soil erosion, and implement tilling and harvesting methods that ensure long-term viability for their farm businesses. In a very different context, 3M has an innovative pollution-prevention program rooted in cultural principles of conserving resources, creating products that have minimal effects on the environment, and collaborating with regulatory agencies to improve environmental effects.

Sustainable management doesn’t need to be purely altruistic. To create a truly sustainable business, an organization must develop a long-term culture and put its values into practice. In other words, there needs to be a sustainable system for creating sustainability! In one workplace study, a company seeking to reduce energy consumption found that soliciting group feedback reduced energy use significantly more than simply issuing reading materials about the importance of conservation. In other words, talking about energy conservation and building the value into the organizational culture resulted in positive employee behavioral changes.

Like other cultural practices we’ve discussed, sustainability needs time and nurturing to grow.

What Do Cultures Do? (7 of 9)

Culture and Innovation

The most innovative companies have open, unconventional, collaborative, vision-driven, and accelerating cultures.

Startup firms often have innovative cultures.

They are usually small, agile, and focused on solving problems in order to survive and grow.

The most innovative companies are often characterized by their open, unconventional, collaborative, vision-driven, and accelerating cultures. Startup firms often have innovative cultures by definition because they are usually small, agile, and focused on solving problems in order to survive and grow.

What Do Cultures Do? (8 of 9)

Culture as an Asset

Culture can significantly contribute to an organization’s bottom line in many ways.

There are many more cases of business success stories because of excellent organizational cultures than there are of success stories despite bad cultures, and almost no success stories because of bad ones.

Culture can also significantly contribute to an organization’s bottom-line in many ways. There are many more cases of business success stories because of excellent organizational cultures than there are of success stories despite bad cultures, and almost no success stories because of bad ones.

What Do Cultures Do? (9 of 9)

Culture as a Liability

Institutionalization

Barriers to Change

Barriers to Diversity

Toxicity and Dysfunctions

Barriers to Acquisitions and Mergers

While culture can certainly enhance an organization, it can also be a liability. We can identify several dysfunctional elements.

The first element involves institutionalization, which is to say it becomes institutionalized—that is, it is valued for itself and not for the goods or services it produces—and it takes on a life of its own, apart from its founders or members. It doesn’t go out of business even if its original goals are no longer relevant. Acceptable modes of behavior become largely self-evident to members, and although this isn’t entirely negative, it does mean behaviors and habits that should be questioned and analyzed become taken for granted, which can stifle innovation and make maintaining the organization’s culture an end in itself.

Second, culture is a liability when the shared values are not in agreement with those that will further the organization’s effectiveness, thus becoming a barrier to change. This is most likely to occur when the environment is dynamic and where there is rapid change, an entrenched culture may no longer be appropriate.

Third is barriers to diversity. Diverse behaviors and strengths are likely to diminish in strong cultures as people attempt to fit in. Strong cultures can be liabilities when they effectively eliminate the unique strengths that people of different backgrounds bring to the organization, or when they support institutional bias or become insensitive to people who are different.

Fourth, toxicity and dysfunctions. Coherence around negativity and dysfunctional management systems in a corporation can produce downward forces that are equally powerful. For example, research on 862 bank employees over about 150 branches of a large bank in the US suggests that branch managers model conflict management styles, which then shape conflict cultures within each branch.59 Collaborative cultures (i.e., encouraging proactive, constructive, and collaborative conflict resolution) tended to increase the cohesion and satisfaction of the branch and decrease levels of burnout. Dominating cultures (i.e., encouraging active confrontation and aggressive competition among employees when there is conflict), tend to reduce branch cohesion and customer service performance. Finally, Avoidance cultures (i.e., that passively avoid conflict) tend to be less creative.

Finally, cultural compatibility has become the primary concern when considering acquisitions and/or mergers. A survey by consulting firm Bain and Company revealed that 70% of mergers failed to reach their financial goals. As one expert commented, “One of the biggest failings is people”— in other words, conflicting organizational cultures.

Creating and Sustaining Culture (1 of 6)

How a Culture Begins

Ultimate source of an organization’s culture is its founders.

Founders have the vision of what the organization should be.

New organizations are typically small, which facilitates the founders’ imparting of their vision on all organizational members.

So, how does a culture begin? The ultimate source of an organization’s culture is its founders. Founders have the vision of what the organization should be. New organizations are typically small, which facilitates the founders’ imparting of their vision on all organizational members.

Creating and Sustaining Culture (2 of 6)

Culture creation occurs in three ways:

Founders hire employees who think and feel the way they do.

Employees are indoctrinated and socialized into the founders’ way of thinking.

Founders’ own behavior encourages employees to identify with them and internalize their beliefs, values, and assumptions.

Culture creation occurs in three ways. First is when founders hire employees who think and feel the way they do. Second, employees are indoctrinated and socialized into the founders’ way of thinking. And third, the founders’ themselves act as role models, encouraging employees to identify with them and internalize their beliefs, values, and assumptions through their own behaviors.

Creating and Sustaining Culture (3 of 6)

Keeping a Culture Alive

Selection

Identify and hire individuals with the knowledge, skills, and abilities to perform successfully.

Two-way street.

Top Management

Establish norms of behavior.

So how can cultures be sustained? The first way is in the selection of employees. The explicit goal of the selection process is to identify and hire individuals with the knowledge, skills, and abilities to perform successfully. The final decision, because it’s significantly influenced by the decision maker’s judgment of how well the candidates will fit into the organization, identifies people whose values are essentially consistent with at least a good portion of the organization’s.

Selection also provides information to applicants. Those who perceive a conflict between their values and those of the organization can remove themselves from the applicant pool. Selection thus becomes a two-way street, allowing employer or applicant to avoid a mismatch and sustaining an organization’s culture by selecting out those who might attack or undermine its core values.

The actions of top management also have a major impact on the organization’s culture. Through words and behavior, senior executives establish norms that filter through the organization about, for instance, whether risk-taking is desirable, how much freedom managers give employees, what is appropriate dress, and what actions earn pay raises, promotions, and other rewards.

Creating and Sustaining Culture (4 of 6)

Exhibit 15-2 A Socialization Model

The socialization component of sustaining a culture is shown in Exhibit 16-2. Socialization is the process of helping new employees adapt to the organization’s culture. The socialization model is a three-stage process.

The first stage is prearrival, which explicitly recognizes that each individual arrives with a set of values, attitudes, and expectations. One way to capitalize on prehire characteristics in socialization is to use the selection process to inform prospective employees about the organization as a whole. The selection process ensures the inclusion of the “right type”—those who will fit in.

The second stage is encounter, in which the individual confronts the possible dichotomy between expectations and reality. If expectations were fairly accurate, the encounter stage merely cements earlier perceptions. However, this is often not the case. At the extreme, a new member may become disillusioned enough to resign. Proper recruiting and selection should significantly reduce that outcome, along with encouraging friendship ties in the organization—newcomers are more committed when friends and coworkers help them “learn the ropes.”

Finally, to work out any problems discovered during the encounter stage, the new member changes or goes through the metamorphosis stage.

Creating and Sustaining Culture (5 of 6)

OB POLL Job Is Not as Good as Advertised

Socialization can help alleviate the problem many employees report that their new jobs are different than expected (see OB Poll).

Creating and Sustaining Culture (6 of 6)

Exhibit 15-4 How Organizational Cultures Form

The socialization component of sustaining a culture is shown in Exhibit 16-4. Socialization is the process of helping new employees adapt to the organization’s culture. The socialization model is a three-stage process.

Finally, to work out any problems discovered during the encounter stage, the new member changes or goes through the metamorphosis stage.

Show How Culture is Transmitted to Employees

How Employees Learn Culture

Culture is transmitted to employees through:

Stories

Rituals

Symbols

Material symbols

Language

Organizational culture is transmitted to employees through several communication channels. Here we will discuss stories, rituals, symbols, and language.

Stories circulate through many organizations, anchoring the present in the past and legitimating current practices. They typically include narratives about the organization’s founders, rule-breaking, rags-to riches successes, reductions in the workforce, relocation of employees, reactions to past mistakes, and organizational coping. Employees also create their own narratives about how they came to either fit or not fit with the organization during the process of socialization, including first days on the job, early interactions with others, and first impressions of organizational life.

Rituals are repetitive sequences of activities that express and reinforce the key values of the organization.

Symbols are things such as the layout of corporation headquarters, the types of automobiles top executives are given, aircraft, (those are considered material symbols), or size of offices and executive perks. These convey to employees who is important, the degree of egalitarianism top management desires, and the kinds of behavior that are appropriate, such as risk-taking, conservative, authoritarian, participative, individualistic, or social.

Finally, many organizations and subunits within them use language to help members identify with the culture, attest to their acceptance of it, and help preserve it. Unique terms describe equipment, officers, key individuals, suppliers, customers, or products that relate to the business. New employees may at first be overwhelmed by acronyms and jargon that, once assimilated, act as a common denominator to unite members of a given culture or subculture.

Influencing an Organizational Culture (1 of 5)

How can management create a more ethical culture?

Be a visible role model.

Communicate ethical expectations.

Provide ethics training.

Visibly reward ethical acts and punish unethical ones.

Provide protective mechanisms.

Management can create a more ethical culture by following a few simple principles. First, be a visible role model: employees look to top management behavior as a benchmark. Second, communicate ethical expectations: a code of ethics can minimize ethical ambiguities. Third, provide ethical training: training sessions should reinforce standards of conduct and clarify permissible practices. Fourth, visibly reward ethical acts and punish unethical ones: performance appraisal of managers should include analysis of behavior against code of ethics. Finally, provide protective mechanisms: create a support network of ethical counselors, ombudsmen, or ethics officers.

Influencing an Organizational Culture (2 of 5)

There is a trend today for organizations to attempt to create a positive organizational culture:

Emphasizes building on employee strengths.

Rewards more than it punishes.

Emphasizes individual vitality growth.

Positive culture is not a cure-all.

There is a trend today for organizations to attempt to create a positive organizational culture, one that emphasizes building on employee strengths, rewards more than it punishes, and emphasizes individual vitality growth. Keep in mind though, that a positive culture is not a cure-all. It’s still a new enough idea for us to be uncertain about how and when it works best.

Influencing an Organizational Culture (3 of 5)

What Is Spirituality?

Workplace spirituality is not about organized religious practices.

It is not about God or theology.

Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community.

Let’s begin by asking, what is spirituality? Workplace spirituality is not about organized religious practices. It is not about God or theology. Workplace spirituality recognizes that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of community.

Influencing an Organizational Culture (4 of 5)

Exhibit 15-5 Reasons for the Growing Interest in Spirituality

Spirituality can counterbalance the pressures and stress of a turbulent pace of life. Contemporary lifestyles—single-parent families, geographic mobility, the temporary nature of jobs, new technologies that create distance between people—underscore the lack of community many people feel and increase the need for involvement and connection.

Formalized religion hasn’t worked for many people, and they continue to look for anchors to replace lack of faith and to fill a growing feeling of emptiness.

Job demands have made the workplace dominant in many people’s lives, yet they continue to question the meaning of work.

People want to integrate personal life values with their professional lives.

An increasing number of people are finding that the pursuit of more material acquisitions leaves them unfulfilled.

As we noted in our discussion of emotions in Chapter 4, the myth of rationality assumed the well-run organization eliminated feelings. Concern about an employee’s inner life had no role in the perfectly rational model. But just as we’ve now come to realize that the study of emotions improves our understanding of organizational behavior, an awareness of spirituality can help us better understand employee behavior in the twenty-first century. Of course, employees have always had an inner life. So why has the search for meaning and purposefulness in work surfaced now? A summary of reasons is shown in Exhibit 16-5.

Influencing an Organizational Culture (5 of 5)

Characteristics of a Spiritual Organization

Cultural characteristics present in spiritual organizations include:

Benevolence

Strong sense of purpose

Trust and respect

Open-mindedness

The concept of workplace spirituality draws on our previous discussions of values, ethics, motivation, and leadership. Several cultural characteristics tend to be evident in spiritual organizations:

Benevolence: spiritual organizations value showing kindness towards others and promoting the happiness of employees and other organizational stakeholders.

Strong sense of purpose: spiritual organizations build their cultures around a meaningful purpose. Although profits may be important, they’re not the primary value of the organization.

Trust and respect: spiritual organizations are characterized by mutual trust, honesty, and openness. Employees are treated with esteem and value, consistent with the dignity of each individual.

Open-mindedness: spiritual organizations value flexible thinking and creativity among employees.

Identify Characteristics of a Spiritual Culture (1 of 2)

Achieving a Spiritual Organization

Many organizations have grown interested in spirituality but have had difficulty putting its principles into practice.

Leaders can demonstrate values, attitudes, and behaviors that trigger intrinsic motivation and a sense of calling through work.

Encouraging employees to consider how their work provides a sense of purpose through community building also can help achieve a spiritual workplace.

Many organizations have grown interested in spirituality but have had difficulty putting its principles into practice. Several types of practices can facilitate a spiritual workplace, including those that support work-life balance. Leaders can demonstrate values, attitudes, and behaviors that trigger intrinsic motivation and a sense of calling through work. Encouraging employees to consider how their work provides a sense of purpose through community building also can help achieve a spiritual workplace; often this is achieved through group counseling and organizational development, a topic we take up in Chapter 18. A number of organizations are now also offering employees the services of a chaplain.

Identify Characteristics of a Spiritual Culture (2 of 2)

Critics of spirituality in organizations focus on:

The question of scientific foundation: what really is workplace spirituality?

Are spiritual organizations legitimate? Do organizations have the right to impose spiritual values on their employees?

The question of economics: are spirituality and profits compatible?

Critics of the spirituality movement in organizations have focused on three issues. First is the question of scientific foundation. What really is workplace spirituality? Second, are spiritual organizations legitimate? Do organizations have the right to impose spiritual values on their employees? And third is the question of economics: are spirituality and profits compatible?

As you might imagine, there is comparatively little research on workplace spirituality. Moreover, an emphasis on spirituality can clearly make some employees uneasy. Critics have argued that secular institutions, especially business firms, have no business imposing spiritual values on employees. This criticism is undoubtedly valid when spirituality is defined as bringing religion and God into the workplace. However, it seems less stinging when the goal is limited to helping employees find meaning and purpose in their work lives. If the concerns listed in Exhibit 16-5 truly characterize a large segment of the workforce, then perhaps organizations can do so.

The Global Context

Organizational cultures often reflect national culture.

One of the primary things U.S. managers can do is to be culturally sensitive.

The management of ethical behavior is one area where national culture can rub up against corporate culture.

Organizational cultures often reflect national culture. The culture at AirAsia, a Malaysian-based airline, emphasizes openness and friendships. However, the culture of many U.S. airlines does not reflect the same degree of informality. If U.S. airlines were to merge with AirAsia, they would need to take these cultural differences into account.

One of the primary things U.S. managers can do is to be culturally sensitive. The United States is a dominant force in business and in culture, and with that influence comes a reputation. “We are broadly seen throughout the world as arrogant people, totally self-absorbed and loud,” says one U.S. executive. Some ways in which U.S. managers can be culturally sensitive include talking in a low tone of voice, speaking slowly, listening more, and avoiding discussions of religion and politics.

The management of ethical behavior is one area where national culture can rub up against corporate culture. Many strategies for improving ethical behavior are based on the values and beliefs of the host country. U.S. managers endorse the supremacy of anonymous market forces and implicitly or explicitly view profit maximization as a moral obligation for business organizations. This worldview sees bribery, nepotism, and favoring personal contacts as highly unethical. Any action that deviates from profit maximization may indicate that inappropriate or corrupt behavior may be occurring. In contrast, managers in developing economies are more likely to see ethical decisions as embedded in a social environment. That means doing special favors for family and friends is not only appropriate but also may even be an ethical responsibility. Managers in many nations also view capitalism skeptically and believe the interests of workers should be put on a par with the interests of shareholders.

Implications for Managers (1 of 3)

Exhibit 15-6 How Organizational Cultures Have an Impact on Employee Performance and Satisfaction

Exhibit 16-6, in summary, depicts organizational culture as an intervening variable. Employees form an overall subjective perception of the organization based on factors such as degree of risk tolerance, team emphasis, and support of people. This overall perception becomes, in effect, the organization’s culture or personality and affects employee performance and satisfaction, with stronger cultures having greater impact.

Implications for Managers (2 of 3)

Realize that an organization’s culture is relatively fixed in the short term. To effect change, involve top management and strategize a long-term plan.

Hire individuals whose values align with those of the organization; these employees will tend to remain committed and satisfied. Not surprisingly, “misfits” have considerably higher turnover rates.

Understand that employees’ performance and socialization depend to a considerable degree on their knowing what to do and not do. Train your employees well and keep them informed of changes to their job roles.

Managers should:

Realize that an organization’s culture is relatively fixed in the short term. To effect change, involve top management and strategize a long-term plan.

Implications for Managers (3 of 3)

You can shape the culture of your work environment, sometimes as much as it shapes you. All managers can especially do their part to create an ethical culture and to consider spirituality and its role in creating a positive organizational culture.

Be aware that your company’s organizational culture may not be “transportable” to other countries. Understand the cultural relevance of your organization’s norms before introducing new plans or initiatives overseas.

In addition:

As a manager, you can shape the culture of your work environment, sometimes as much as it shapes you. All managers can especially do their part to create an ethical culture and to consider spirituality and its role in creating a positive organizational culture.

Learning Objectives

15.1 Describe the common characteristics of organizational culture.

15.2 Compare the functional and dysfunctional effects of organizational culture on people and the organization.

15.3 Identify the factors that create and sustain an organization’s culture.

15.4 Show how culture is transmitted to employees.

15.5 Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.

15.6 Show how national culture can affect the way organizational culture is transported to another country.

After studying this chapter, you should be able to:

Describe the common characteristics of organizational culture.

Compare the functional and dysfunctional effects of organizational culture on people and the organization.

Identify the factors that create and sustain an organization’s culture.

Show how culture is transmitted to employees.

Describe the similarities and differences in creating an ethical culture, a positive culture, and a spiritual culture.

Show how national culture can affect the way organizational culture is transported to another country.

Questions?

Organizational Behavior

Eighteenth Edition, Global Edition

Chapter 16

Human Resource Policies and Practices

If this PowerPoint presentation contains mathematical equations, you may need to check that your computer has the following installed:

1) MathType Plugin

2) Math Player (free versions available)

3) NVDA Reader (free versions available)

Chapter 17: Human Resource Policies and Practices

Learning Objectives

16.1 Describe the value of recruitment methods.

16.2 Specify initial selection methods.

16.3 Identify the most useful substantive selection methods.

16.4 Compare the main types of training.

16.5 List the methods of performance evaluation.

16.6 Describe the leadership role of HR in organizations.

After studying this chapter, should be able to:

Describe the value of recruitment methods.

Specify initial selection methods.

Identify the most useful substantive selection methods.

Compare the main types of training.

List the methods of performance evaluation.

Describe the leadership role of HR in organizations.

Describe the Value of Recruitment Methods

Strategic recruiting has become a cornerstone for many companies, in which recruiting practices are developed in alignment with long-term strategic goals.

The most effective recruiters—internal or external—are well informed about the job, are efficient in communicating with potential recruits, and treat recruits with consideration and respect. They also use a variety of online tools, including job boards and social media.

The first stage in any HR program is recruiting, closely followed by selection. A selection system can only be as good as the individuals who apply in the first place.

Strategic recruiting has become a cornerstone for many companies, in which recruiting practices are developed in alignment with long-term strategic goals. As for defining “success” in recruiting, most research suggests that the best system attracts candidates who are highly knowledgeable about the job and the organization. Such candidates are likely to have a better fit between their skills and job requirements, and to be more satisfied in the jobs they take.

Consistent with these findings, some of the most effective recruiting techniques include internal referrals, internship programs, and other methods that give potential applicants enough information to adequately evaluate the roles they may be occupying. Companies are increasingly turning away from outside recruiting agencies and relying on their own executives and HR professionals for talent searches.

Specify Initial Selection Methods

Exhibit 16-1 Model of Selection Process in Organizations

One of the most important HR functions is hiring the right people. When companies hire the right people, they increase their human capital resources. Human capital resources are the capacities available to an organization through its employees. The resources include specialized skills, collective knowledge, abilities, and other resources available through an organization’s workforce.

The goal of the selection process is to match individual characteristics with the job – in other words, finding the right person for the job. Exhibit 17-1 shows that new job applicants go through several sections stages: initial selection, substantive selection, and contingent selection.

Initial selection devices are the first information applicants submit and are used for preliminary rough cuts to decide whether the applicant meets the basic qualifications for a job. The initial selection stage usually requires an application form. While these are not a good predictor of performance, they are a good initial screen. Most applications today begin online. Care should be exercised on the questions included in an application to avoid conflict with legal and ethical limitations. During this initial stage, the application may undergo background checks such as checking credit histories or criminal records. Letters of recommendation are a form of background check.

Next, we will discuss substantive and contingent selection.

Identify the Most Useful Substantive Selection Methods (1 of 5)

Substantive Selection

Written tests

Performance simulation tests

Interviews

Substantive selection is at the heart of the selection process and is used after the applicant passes initial screening. It includes written tests, performance simulation tests, and interviews. Let’s look at each one in more detail.

Identify the Most Useful Substantive Selection Methods (2 of 5)

Written Tests

Typically tests of intelligence or cognitive ability, personality, and integrity.

Intelligence tests are particularly good predictors for jobs that require cognitive complexity.

Evidence shows that these tests are good predictors, but care should be taken to use the “right” test.

Long popular as selection devices, written employment tests—called “paper-and-pencil” tests, though most are now available online—declined in use between the late 1960s and mid-1980s, especially in the United States. They were frequently characterized as discriminatory, and many organizations had not validated them as job-related. Since then, however, there has been a resurgence, and today most organizations have at least considered using one or more tests.29 Managers recognize that valid tests can help predict who will be successful on the job.30 Applicants, however, tend to view written tests as less valid and fair than interviews or performance tests.31 Typical tests include (1) intelligence or cognitive ability tests, (2) personality tests, and (3) integrity tests.

Intelligence tests are particularly good predictors for jobs that require cognitive complexity. Tests in intellectual ability, spatial and mechanical ability, perceptual accuracy, and motor ability have shown to be moderately valid predictors for many semiskilled and unskilled operative jobs. As ethical problems have increased in organizations, integrity tests have gained popularity. These paper-and-pencil tests that measure dependability, carefulness, responsibility, and honesty. While these tests are powerful predictors of performance, care should be taken that the test actually measures criteria matched to the job responsibilities.

Identify the Most Useful Substantive Selection Methods (3 of 5)

Performance-Simulation Tests

Have higher face validity and their popularity has increased.

Work sample tests: hands-on simulations of part or all of the job that must be performed by applicants.

Assessment centers: evaluate managerial potential.

Situational judgment tests

Realistic Job Previews

Although they are more complicated to develop and administer than written tests, performance-simulation tests have higher face validity, which measures whether applicants perceive the measures to be accurate, and their popularity has increased. The three best-known performance simulation tests are work samples, assessment centers, and situational judgment tests.

Work sample tests are hands-on simulations of part or all of the job that must be performed by applicants. Work samples are based on job analysis data, and each element is matched with a corresponding job performance element. Work samples yield valid data superior to written aptitude and personality tests.

Assessment centers use a more elaborate set of performance simulation tests designed to evaluate a candidate’s managerial potential. Line executives, supervisors, and/or trained psychologists evaluate candidates as they go through one to several days of exercises that simulate real problems. Assessment centers have consistently demonstrated results that predict later job performance in managerial positions.

Situational judgment tests ask applicants how they would perform in a variety of job situations and compare their answers to those of high-performing employees. One study comparing situational judgment tests to assessment centers found the assessment center was a better predictor of job performance, although the difference was not large. Ultimately, the lower cost of the situational judgment test may make it a better choice for some organizations than a more elaborate work sample or assessment center.

Finally, realistic job previews are given as a way to assess talent versus experience. They decrease turnover because both employers and new hires know what they are getting into ahead of time.

Identify the Most Useful Substantive Selection Methods (4 of 5)

Interviews

The most frequently used selection device.

It carries a great deal of weight.

Unstructured interviews are not as effective as structured ones, particularly behavioral structured interviews.

Panel interviews minimize the influence of individual biases and have higher validity.

The interview continues to be the selection device most frequently used and it carries a great deal of weight. The candidate who performs poorly in the employment interview is likely to be cut, regardless of his/her experience, test scores, or letters of recommendation, and vice versa. This is important because of the unstructured form of most selection interviews.

The unstructured interview—short in duration, casual, and made up of random questions—is an ineffective selection device. The data are typically biased and often unrelated to future job performance. Without structure, interviewers tend to favor applicants who share their attitudes, give undue weight to negative information, and allow the order in which applicants are interviewed to influence their evaluations. To reduce such bias and improve the validity of interviews, managers should adopt a standardized set of questions, a uniform method of recording information, and standardized ratings of applicants’ qualifications. Training interviewers to focus on specific dimensions of job performance, practicing evaluation of sample candidates, and giving interviewers feedback on how well they were focused on job-relevant characteristics significantly improves the accuracy of their ratings.

Interview effectiveness also improves when employers use behavioral structured interviews, probably because these assessments are less influenced by interviewer biases. They require applicants to describe how they handled specific problems and situations in previous jobs, based on the assumption that past behavior offer the best predictor of future behavior.

Panel interviews also minimize the influence of individual biases and have higher validity.

Most organizations use interviews as more than a prediction of performance device.

Identify the Most Useful Substantive Selection Methods (5 of 5)

Contingent Selection

Applicants that pass the substantive selection process are ready to be hired, contingent on final checks.

A common contingent method is a drug test.

Drug testing is controversial.

Under the Americans with Disabilities Act, firms may not require employees to pass a medical exam before a job offer is made.

Once an applicant has passed substantive selection such as background checks, interviews, and so on, the individual is ready to be hired subject to a final check.

One common, but controversial, contingent method is a drug test. Many applicants think testing without reasonable suspicion is invasive or unfair and say they should be tested on job performance factors, not lifestyle choices that may not be relevant. Employers might counter that drug use and abuse are extremely costly, not just in financial terms but also in terms of people’s safety. They have the law on their side: the U.S. Supreme Court has concluded that drug tests are “minimally invasive” selection procedures that as a rule, do not violate individuals’ rights.

Under the Americans with Disabilities Act, firms may not require employees to pass a medical exam before a job offer is made. They can conduct medical exams after making a contingent offer, to determine whether an applicant is physically or mentally able to do the job.

Compare the Main Types of Training (1 of 3)

Types of Training

Basic skills

Technical skills

Problem-solving skills

Interpersonal skills

In addition, we consider:

Civility training

Ethics training

There are four general skill categories for training: basic literacy, technical skills, problem-solving skills, and interpersonal skills. In addition, we discuss civility training and ethics training.

Compare the Main Types of Training (2 of 3)

Basic Skills

Many employers believe that high school graduates lack basic skills in reading comprehension, writing, and math.

As work has become more sophisticated, the need for these basic skills has grown significantly.

It’s a worldwide problem, from the most developed countries to the least.

Let’s begin with basic skills. One survey of more than 400 human resources professionals found that 40 percent of employers believe high school graduates lack basic skills in reading comprehension, writing, and math. As work has become more sophisticated, the need for these basic skills has grown significantly, leading to a gap between employer demands for skills and the available skills in the workforce. The challenge isn’t unique to the United States. It’s a worldwide problem, from the most developed countries to the least. For many undeveloped countries, widespread illiteracy means there is almost no hope of competing in a global economy. As a result, organizations find they must provide basic reading and math skills for their employees.

Compare the Main Types of Training (3 of 3)

Technical Skills

Technical training is important for:

New technology

New structural designs

Second, most training is directed at upgrading and improving an employee’s technical skills. Technical training is important for two reasons—new technology and new structural designs.

As organizations flatten their structures, expand their use of teams, and break down traditional departmental barriers, employees need mastery of a wider variety of tasks and increased knowledge of how their organization operates. Companies like Tata and Wipro provide new hires with up to 3 months of training to ensure that have the knowledge to perform the technical work demanded.

Compare the Four Main Types of Training (1 of 4)

Problem-Solving Skills

Problem-solving training for managers and other employees can include:

Activities to sharpen their logic, reasoning, and problem defining skills.

Activities to improve their abilities to assess causation, develop and analyze alternatives, and select solutions.

Next we turn to problem-solving skills. Problem-solving training for managers and other employees can include activities to sharpen their logic, reasoning, and problem defining skills as well as their abilities to assess causation, develop and analyze alternatives, and select solutions.

Problem-solving training has become a part of almost every organizational effort to introduce self-managed teams or implement quality-management programs.

Compare the Four Main Types of Training (2 of 4)

Interpersonal Skills

Almost all employees belong to a work unit where their work performance depends on their ability to interact with coworkers and bosses.

Next are interpersonal skills. Almost all employees belong to a work unit, so to some degree, their work performance depends on their ability to effectively interact.

Compare the Four Main Types of Training (3 of 4)

Civility Training

As HR managers have become more aware of the effects of social behavior in the workplace, they have paid more attention to incivility, bullying, and abusive supervision in organizations.

To minimize incivility, use training targeted to building civility.

As HR managers have become increasingly aware of the effects of social behavior in the workplace, they have paid more attention to the problems of incivility, bullying, and abusive supervision in organizations. Examples of incivility include being ignored, being excluded from social situations, having your reputation undermined in front of others, and experiencing other actions meant to demean or disparage. Researchers have shown that these forms of negative behavior can decrease satisfaction, reduce job performance, increase perceptions of unfair treatment, increase depression, and lead to psychological withdrawal from the workplace.

The evidence suggests that deliberate interventions to improve the workplace climate for positive behavior can indeed minimize the problems of incivility. One possibility is training specifically targeted to building civility by having directed conversations about it and supporting the reduction of incivility on an ongoing process.

Compare the Four Main Types of Training (4 of 4)

Ethics Training

Many U.S. workers receive ethics training.

Can ethics be taught?

Critics argue that ethics are based on values, and value systems are fixed at an early age.

Ethics cannot be formally “taught” but must be learned by example.

Supporters say values can be learned, and that training is helpful for recognizing ethical dilemmas and ethical issues.

Finally, we come to ethics training. It is common for employees to receive ethics training.

Critics argue that ethics are based on values, and value systems are fixed at an early age, and that ethics cannot be formally “taught” but must be learned by example.

Supporters of ethics training argue that values can be learned and changed after early childhood. Even if this isn’t true, training helps employees to recognize ethical dilemmas, become more aware of the ethical issues underlying their actions, and reaffirms an organization’s expectations. Individuals who have greater exposure to organizational ethics codes and ethics training do tend to be more satisfied and perceive their organizations as more socially responsible, so ethics training does have some positive effects.

Contrast Formal and Informal Training Methods (1 of 3)

Training Methods

Historically, training meant “formal training”.

Organizations are increasingly relying on informal training.

Unstructured, unplanned, and easily adapted to situations and individuals.

Historically, training meant “formal training,” or something that is planned in advance and has a structured format. However, organizations are increasingly relying on informal training, which is unstructured, unplanned, and easily adapted to situations and individuals. Most informal training is nothing other than employees helping each other out. They share information and solve work-related problems with one another.

Contrast Formal and Informal Training Methods (2 of 3)

Job Training

On-the-job training includes job rotation, apprenticeships, understudy assignments, and formal mentoring programs.

Off-the-job training includes live classroom lectures, videotapes, public seminars, self-study, Internet and satellite television courses, group activities, and e-training.

Computer-Based Training

On-the-job training includes job rotation, apprenticeships, understudy assignments, and formal mentoring programs. The primary drawback of these methods is that they often disrupt the workplace.

Computer-based training. Recently, e-training (computer-based training) is the fastest growing training delivery mechanism.

Organizations are investing increasingly in off-the-job training—nearly $130 billion annually. What types of training might this include? The most popular is live classroom lectures. It also encompasses videotapes, public seminars, self-study programs, Internet courses, satellite-beamed television classes, and group activities that use role-plays and case studies. Recently, e-training (computer-based training) is the fastest growing training delivery mechanism.

Contrast Formal and Informal Training Methods (3 of 3)

Evaluating Effectiveness

The effectiveness of a training program can refer to the level of student satisfaction, the amount students learn, the extent to which they transfer the material from training to their jobs, or the financial return on investments in training.

An effective training program requires not just teaching the skills, but also changing the work environment to support the trainees.

Not all training methods are equally effective, so rigorous measurement of multiple training outcomes should be a part of every training effort.

The success of training also depends on the individual. If individuals are unmotivated, they will learn very little.

Personality is important: those with an internal locus of control, high conscientiousness, high cognitive ability, and high self-efficacy learn more. The climate also is important: when trainees believe that there are opportunities and resources to let them apply their newly learned skills, they are more motivated and do better in training programs. After-training support from supervisors and coworkers has a strong influence on whether employees transfer their learning into new behavior.

Lastly, an effective training program requires not just teaching the skills, but also changing the work environment to support the trainees.

List the Methods of Performance Evaluation (1 of 9)

What is Performance?

Three major types of behavior to consider:

Task performance

Citizenship

Counterproductivity

Most managers believe good performance means doing well on the first two dimensions and avoiding the third.

In the past, most organizations assessed only how well employees performed the tasks listed on a job description, but today’s less hierarchical and more service-oriented organizations require more.

Researchers now recognize three major types of behavior that constitute performance at work:

Task performance – performing the duties and responsibilities that contribute to the production of a good or service or to administrative tasks. This includes most of the tasks in a conventional job description.

Citizenship – actions that contribute to the psychological environment of the organization, such as helping others when not required, supporting organizational objectives, treating coworkers with respect, making constructive suggestions, and saying positive things about the workplace.

Counter-productivity – actions that actively damage the organization. These behaviors include stealing, damaging company property, behaving aggressively toward coworkers, and taking avoidable absences.

Most managers believe good performance means doing well on the first two dimensions and avoiding the third. A person who does core job tasks very well but is rude and aggressive toward coworkers is not going to be considered a good employee in most organizations, and even the most pleasant and upbeat worker who can’t do the main job tasks well is not going to be a good employee.

List the Methods of Performance Evaluation (2 of 9)

Purposes of Performance Evaluation

Make general human resource decisions.

Identify training and development needs.

Pinpoint employee skills and competencies needing development.

Provide feedback to employees.

Can be the basis for reward allocations.

Let’s talk a little about the purposes of performance evaluation. Management uses evaluations for general human resource decisions, such as promotions, transfers, and terminations. Evaluations also identify training and development needs, as they pinpoint employee skills and competencies needing development and can provide criterion against which selection and development programs are validated.

Evaluations also provide feedback to employees on how the organization views their performance and are often the basis for reward allocations including merit pay increases.

List the Methods of Performance Evaluation (3 of 9)

What Do We Evaluate?

Individual task outcomes

Behaviors

Traits

Who Should Do the Evaluating?

Traditionally, the manager, but today that is changing.

Now peers, subordinates, and the employee can be involved.

What do we evaluate? The criteria or criterion used to evaluate performance has a major influence on performance. The three most popular sets of criteria are individual task outcomes, behaviors, and traits. If ends count, rather than means, then management should evaluate an employee’s task outcomes. It is difficult to attribute specific outcomes to the actions of employees in advisory or support positions or employees whose work assignments are part of a group effort; we may readily evaluate the group’s performance, but if it is hard to identify the contribution of each group member, management will often evaluate the employee’s behavior. The weakest set of criteria is individual traits because they are farthest removed from the actual performance of the job itself. Traits may or may not be highly correlated with positive task outcomes, but only the naive would ignore the reality that such traits are frequently used in organizations for assessing performance.

Who should do the evaluating? Traditionally, the task has fallen to managers, because they are held responsible for their employees’ performance, but others may do the job better. With many of today’s organizations using self-managed teams, telecommuting, and other organizing devices that distance bosses from employees, the immediate superior may not be the most reliable judge of an employee’s performance. More and more, peers and even subordinates are being asked to take part in the process, and employees are participating in their own evaluation. A recent survey found about half of executives and 53% of employees now have input into their performance evaluations.

As you might expect, self-evaluations often suffer from over-inflated assessment and self-serving bias, and they seldom agree with superiors’ ratings. So they are probably better suited to developmental than evaluative purposes and should be combined with other sources of information to reduce rating errors. In most situations, in fact, it is highly advisable to use multiple sources of ratings. Any individual performance rating may say as much about the rater as about the person being evaluated. By averaging across raters, we can obtain a more reliable, unbiased, and accurate performance evaluation.

List the Methods of Performance Evaluation (4 of 9)

Exhibit 16-2 360-Degree Evaluations

Another approach to performance evaluation is 360-degree evaluations. As shown in Exhibit 17-2, 360-degree evaluations provide performance feedback from the employee’s full circle of daily contacts, from mailroom workers to customers to bosses to peers. The number of appraisals can be as few as 3 or 4 or as many as 25; most organizations collect 5 to 10 per employee.

Evidence on the effectiveness of the 360-degree evaluation is mixed. It provides employees with a wider perspective on their performance, but many organizations don’t spend the time to train evaluators in giving constructive criticism.

List the Methods of Performance Evaluation (5 of 9)

Methods of Performance Evaluation

Written Essays

Critical Incidents

Graphic Ratings Scales

Behaviorally Anchored Rating Scales (BARS)

Forced Comparisons

Group order ranking

Individual ranking

There are several different methods to evaluate an employee’s performance.

First, written essays are the simplest method of evaluation. It involves writing a narrative describing an employee’s strengths, weaknesses, past performance, potential, and suggestions for improvement. No complex forms or extensive training is required, but the results often reflect the ability of the writer.

Second is critical incidents. These focus on those behaviors that are key in making the difference between executing a job effectively and executing it ineffectively. The appraiser writes down anecdotes that describe what the employee did that was especially effective or ineffective. A list of critical incidents provides a rich set of examples to discuss with the employee.

Third is graphic ratings scales, based on a set of performance factors, such as quantity and quality of work, depth of knowledge, cooperation, loyalty, attendance, honesty, and initiative. The evaluator then goes down the list and rates each on incremental scales. They are popular because they are less time-consuming to develop and administer, and allow for quantitative analysis and comparison.

Fourth is behaviorally anchored rating scales, or BARS, which combine major elements from the critical incident and graphic rating scale approaches. The appraiser rates the employees based on items along a continuum, but the points are examples of actual behavior. To develop the BARS, participants first contribute specific illustrations of effective and ineffective behavior, which are translated into a set of performance dimensions with varying levels of quality.

Finally, forced comparisons evaluate one individual’s performance against the performance of one or more. So, it’s a relative rather than an absolute measuring device. The two most popular are group order ranking and individual ranking. The group order ranking requires the evaluator to place employees into a particular classification, such as top one-fifth or second one-fifth. The individual ranking approach rank-orders employees from best to worst.

List the Methods of Performance Evaluation (6 of 9)

Exhibit 16-3 Median Grade Point Average (GPA ) by Academic Year and Degree Level

* Note: Study of GPA from 1,683 courses, 28 departments, and 3,176 instructors at a large public university.

Source: Based on R. Todd Jewell, M. A. McPherson, and M. A. Tieslau, “Whose Fault Is It? Assigning Blame for Grade Inflation in Higher Education,” Applied Economics 45 (2013): 1185–200.

One parallel to forced ranking is forced distribution of college grades. As shown in Exhibit 17-3, the average GPAs have gotten much higher over time.

List the Methods of Performance Evaluation (7 of 9)

Improving Performance Evaluations:

Use multiple evaluators.

Evaluate selectively.

Train evaluators.

Provide employees with due process.

Three features of due process.

Post appraisals online.

The performance evaluation process is a potential minefield. Evaluators can unconsciously inflate evaluations (positive leniency), understate performance (negative leniency), or allow the assessment of one characteristic to unduly influence the assessment of others (the halo error). Some appraisers bias their evaluations by unconsciously favoring people who have qualities and traits similar to their own (the similarity error). And, of course, some evaluators see the evaluation process as a political opportunity to overtly reward or punish employees they like or dislike.

Some suggestions for methods to improve evaluation processes and outcomes start with the use of multiple evaluators. As the number of evaluators increases, the probability of attaining more accurate information increases. If a set of evaluators judges a performance, the highest and lowest scores are dropped, and the final performance evaluation is made up from the cumulative scores of those remaining.

Second is to evaluate selectively. Evaluate only those areas in which you have some expertise. Appraisers should be as close as possible, in terms of organizational level, to the individual being evaluated.

Third is to train evaluators. There is substantial evidence that training evaluators can make them more accurate raters. Most rater training courses emphasize changing the raters’ frame of reference by teaching them what to look for, so everyone in the organization defines good performance in the same way.

Fourth is to provide employees with due process. The concept of due process increases the perception that employees are treated fairly.

Three features characterize due process systems: individuals are provided with adequate notice of what is expected of them; all relevant evidence is aired in a fair hearing so individuals affected can respond; and the final decision is based on the evidence and is free from bias. One technique organizations might consider to enhance due process is posting appraisals online so employees can see their own performance scores exactly as the supervisor enters them.

List the Methods of Performance Evaluation (8 of 9)

Providing Performance Feedback

Managers are often uncomfortable discussing weaknesses with employees.

In fact, unless pressured by organizational policies and controls, managers are likely to ignore this responsibility.

The solution to the problem is not to ignore it but to train managers to conduct constructive feedback sessions.

Providing performance feedback is a key method to improve evaluation, but managers are often uncomfortable discussing weaknesses with employees. In fact, unless pressured by organizational policies and controls, managers are likely to ignore this responsibility.

The solution to the problem is not to ignore it but to train managers to conduct constructive feedback sessions. An effective review—in which the employee perceives the appraisal as fair, the manager as sincere, and the climate as constructive—can leave the employee feeling upbeat, informed about areas needing improvement, and determined to correct them. Appraisals should also be as specific as possible.

List the Methods of Performance Evaluation (9 of 9)

International Variations in Performance Appraisal

Individual-oriented cultures emphasize formal performance evaluation systems more than informal systems.

Let’s examine performance evaluation globally in the context of four cultural dimensions: individualism/collectivism, a person’s relationship to the environment, time orientation, and focus of responsibility.

Individual-oriented cultures such as the United States emphasize formal performance evaluation systems more than informal systems. In Korea, Singapore, and even Japan, the use of performance evaluation has increased dramatically in the past decade, though not always smoothly or without controversy. One survey of Korean employees revealed that a majority questioned the validity of their performance evaluation results. One recent study focused on the banking industry found significant differences across countries in performance appraisal practices.

Formal performance appraisals were used more frequently in countries that were high in assertiveness, high in uncertainty avoidance, and low in in-group collectivism.

Another study found that individuals who were high in power distance and high in collectivism tend to give more lenient performance appraisals.

Describe the Leadership Role of HR in Organizations (1 of 5)

Communicating HR Practices

Leadership by HR begins with informing employees about HR practices and explaining the implications of decisions that might be made around these practices.

It is not enough to simply have a practice in place; HR needs to let employees know about it.

Leadership by HR begins with informing employees about HR practices and explaining the implications of decisions that might be made around these practices. It is not enough to simply have a practice in place; HR needs to let employees know about it. When a company successfully communicates how the whole system of HR practices has been developed and what function this system serves, employees feel they can control and manage what they get out of work.

The evidence supporting the contribution of communication and perception to HR effectiveness is considerable. For example, one study of different business units within a large food-service organization found that employee perceptions of HR practices, rated at the workgroup level, were significant predictors of OCB, commitment, and intention to remain with the company, but the HR practices led to these positive outcomes only if employees were aware they were in place.

The effectiveness of HR practices also depends on employee attitudes. One review found that HR practices were more likely to lead to positive outcomes when employees felt motivated. Practices tend to be perceived differently in various business cultures. For example, the use of educational qualifications in screening candidates seems to be a universal practice, but aside from this, different countries emphasize different selection techniques.

Structured interviews are popular in some countries and nonexistent in others. Communication is the bridge for HR to demonstrate fairness intentions.

Describe the Leadership Role of HR in Organizations (2 of 5)

Designing and Administering Benefit Programs

A benefit program should:

Be suited to the organizational culture.

Reflect the values of the organization.

Demonstrate economic feasibility.

Be sustainable in the long term.

Benefits will likely improve employees’ psychological well-being and therefore increase organizational performance.

The responsibility for designing and administering an organization’s benefit program falls to the HR department, with input from executive management.

Ideally, a benefit program should be uniquely suited to the organizational culture, reflect the values of the organization, demonstrate economic feasibility, and be sustainable in the long term. Such benefits will likely improve employees’ psychological well-being and therefore increase organizational performance.

Describe the Leadership Role of HR in Organizations (3 of 5)

Drafting and Enforcing Employment Policies

Employment policies that are informed by current laws but go beyond minimum requirements will help define a positive organizational culture and set high standards for performance.

Policies differ from benefits in that they provide the guidelines for behavior, not just the working conditions.

Any policy must have enforcement to be effective.

Employment policies that are informed by current laws but go beyond minimum requirements will help define a positive organizational culture and set high standards for performance. Policies differ from benefits in that they provide the guidelines for behavior, not just the working conditions.

Any policy must have enforcement to be effective. Human resource managers are responsible for setting the organizational consequences of infractions, and often for enforcing the policies as well. Sometimes, human resource managers will need to take action even when the employee’s direct manager may not agree, especially if compliance with the law is at issue.

Describe the Leadership Role of HR in Organizations (4 of 5)

Managing Work-Life Conflicts

Gained momentum in the 1980s as a result of the increased entry of women in the workforce.

Keeping workloads reasonable, reducing work-related travel, and offering on-site quality childcare are examples of practices that can help manage work-life conflicts.

Different people prefer different solutions.

Work-life conflicts grabbed management’s attention in the 1980s, largely as a result of the growing number of women, with dependent children, entering the workforce. In response, most major organizations took actions to make their workplaces more family friendly. They introduced on-site childcare, summer day camps, flextime, job sharing, leaves for school functions, telecommuting, and part-time employment.

Organizations are modifying their workplaces with scheduling options and benefits to accommodate the varied needs of a diverse workforce. But it’s the psychological incursion of work into the family domain, and vice versa, when people are worrying about personal problems at work and thinking about work problems at home. This suggests organizations should spend less effort helping employees with time-management issues and more helping them clearly segment their lives. Keeping workloads reasonable, reducing work-related travel, and offering on-site quality childcare are examples of practices that can help in this endeavor. Not surprisingly, people differ in their preference for scheduling options and benefits. Some prefer organizational initiatives that better segment work from their personal lives, as flextime, job sharing, and part-time hours do by allowing employees to schedule work hours less likely to conflict with personal responsibilities. Others prefer ways to integrate work and personal life, such as on-site childcare, gym facilities, and company-sponsored family picnics.

Describe the Leadership Role of HR in Organizations (5 of 5)

Mediations, Terminations, and Layoffs

Human resource departments often take center stage when unpleasant events such as disputes, substandard performance, and downsizing occur.

Employees need to be able to trust their human resource professionals to maintain appropriate confidentiality and a balanced perspective.

Managers need to be able to trust HR, too, to know the laws and represent the company’s perspective.

Human resource departments often take center stage when unpleasant events such as disputes, substandard performance, and downsizing occur. Employees need to be able to trust their human resource professionals to maintain appropriate confidentiality and a balanced perspective. Managers need to be able to trust HR, too, to know the laws and represent the company’s perspective. The HR human resource professional should be well trained in mediation techniques and rely upon company policies to seek positive resolution.

Sometimes, human resource managers are integral to the termination process, when employees are not able to resolve issues with management. Termination processes are subject to union labor contracts and laws, which can confound the situation. In Spain, for instance, labor laws have traditionally protected older workers with near-guaranteed employment.

For departing employees, the HR department is often the last stop on their way out the door. HR managers are thus in charge of leaving a favorable impression with the employee and collecting helpful input from the exit interview. This is never more true than when organizations terminate employees in layoffs.

In sum, the role of HR is increasing for organizations worldwide, and top management is realizing human resource leadership is needed to create the cultures and positive business outcomes top corporations need to stay competitive.

Implications for Managers (1 of 3)

An organization’s selection practices can identify competent candidates and accurately match them to the job and the organization. Consider assessment methods that are most likely to evaluate the skills directly needed for jobs you are looking to fill.

Use training programs for your employees to achieve direct improvement in the skills necessary to successfully complete the job. Employees who are motivated will use those skills for their greater productivity.

An organization’s human resource (HR) policies and practices create important forces that greatly influence organizational behavior (OB) and important work outcomes. HR departments have become increasingly integral in shaping the composition of the organization’s workforce. First, as more organizations have turned to internal recruitment methods, HR departments have taken the lead in creating online portals and other easy-access methods for candidates to learn about the organization and be attracted to apply. Second, HR departments are involved in all phases of selection: initial selection, substantive selection, and contingent selection. The greatest increase in the involvement of HR in selection may be in the initial selection phase, wherein HR professionals develop, monitor, and screen the great numbers of applications that are submitted. However, HR involvement has increased in all areas of selection, and HR professionals are responsible for understanding the applicable laws and guidelines to serve as an informed, up-to-date resource for managers. In effective organizations, HR remains present throughout an employee’s time with the organization. HR departments create and administer training and development programs, and they set policies and practices with top management that govern the performance evaluation system. HR serves in a leadership capacity with responsibilities including the need to regularly communicate practices to employees, design and administer benefit programs, manage work-life conflicts, and conduct mediations, terminations, and layoffs. HR should bring an awareness of ethical issues to all stages of an individual’s experience with the organization. Knowledgeable HR professionals are therefore a great resource to all levels of the organization, from top management to managers to employees.

Managers should:

Recognize that an organization’s selection practices can identify competent candidates and accurately match them to the job and the organization. Consider assessment methods that are most likely to evaluate the skills directly needed for jobs you are looking to fill.

Implications for Managers (2 of 3)

Training and development programs offer ways to achieve new skill levels and thus add value to your organization. Successful training and development programs include an ethical component.

Use performance evaluations to assess an individual’s performance accurately and as a basis for allocating rewards. Make sure the performance evaluations are as fair as possible. Evaluations perceived as unfair can result in reduced effort, increases in absenteeism, or a search for another job.

In addition, managers should:

Recognize that training and development programs offer ways to achieve new skill levels and thus add value to your organization. Successful training and development programs include an ethical component.

Use performance evaluations to assess an individual’s performance accurately and as a basis for allocating rewards. Make sure the performance evaluations are as fair as possible. As demonstrated in Chapter 7 in our discussion of equity theory, evaluations perceived as unfair can result in reduced effort, increases in absenteeism, or a search for another job.

Implications for Managers (3 of 3)

Give employees the opportunity to participate in their evaluations so they understand the performance criteria and engage with the improvement process.

Finally, managers should:

Give employees the opportunity to participate in their evaluations so they understand the performance criteria and engage with the improvement process.

Learning Objectives

16.1 Describe the value of recruitment methods.

16.2 Specify initial selection methods.

16.3 Identify the most useful substantive selection methods.

16.4 Compare the main types of training.

16.5 List the methods of performance evaluation.

16.6 Describe the leadership role of HR in organizations.

After studying this chapter, should be able to:

Describe the value of recruitment methods.

Specify initial selection methods.

Identify the most useful substantive selection methods.

Compare the main types of training.

List the methods of performance evaluation.

Describe the leadership role of HR in organizations.

Questions?