Organizational Culture Analysis

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1Introduction to Organizational Behavior

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Learning Objectives

After reading this chapter and studying the materials, you should be able to:

1. Describe the essence of organizational behavior. 2. Explain how scienti�ic management and the human relations movement helped shape the

�ield of organizational behavior. 3. Apply modern concepts present in organizational behavior to individual and managerial

efforts. 4. Recognize the personal and managerial skills present in organizational behavior that apply

to today's business environment. 5. Identify additional trends that affect the �ield of organizational behavior and one's personal

career.

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1.1 The Nature of Organizational Behavior Managers in organizations engage in a variety of activities every day, among them supervising and directing employees. Organizational behavior (OB) may be de�ined as the investigation of the behavioral factors that affect organizations and their management at the individual, group, and organization-wide levels. Organizational behavior concentrates on the people side of a business, nonpro�it, or governmental entity. Understanding organizational behavior concepts can help a company or nonpro�it ful�ill its potential by creating a satisfying and positive environment. In turn, a positive environment can lead to pro�itability, growth, and other measures of success, thereby connecting the human element with the operational elements of an organization (see, for example, OB in Action: Quicken Loans). This textbook examines the behavioral factors that dictate success (or failure) in the world of commerce and in other organizations at each level.

In this �irst chapter, �ive topics are explored. This section provides an overview of organizational behavior along with a brief presentation of the disciplines related to OB. A review of historical trends that in�luenced the �ield follows. Next, an examination of the modern context of management and organizational behavior is provided. This is followed by a discussion of some of the interpersonal managerial skills that lead to individual success. The chapter concludes with an evaluation of the context in which business currently operates. These concepts set the stage for the remaining parts and chapters in this text.

OB in Action: Quicken Loans

The mortgage lending business has �lourished in the United States for a very long time. Recently, a new player moved into the market and achieved great notoriety due to both its �inancial achievements and its success on a human level. In 2016, Quicken Loans jumped to �ifth place in Fortune's Top 100 Companies to Work For (Fortune, 2016).

In terms of basic statistics, the company pays 100% of employee healthcare costs, offers health insurance to part-time employees, provides onsite child care, offers compressed work weeks, provides paid sabbaticals, and maintains an onsite �itness center and medical assistance programs. The company grants paid time off for volunteer activities and emphasizes non-discrimination while providing same-sex partnership bene�its.

Beyond these efforts, Quicken Loans has been credited with helping revitalize part of the Detroit, Michigan, metro area, which has suffered high rates of unemployment and other problems. Led by CEO Dan Gilbert, the company features a relaxed and fun atmosphere, which stands in contrast to many more "buttoned-down" companies in the industry. Inside the company's campus, a high-energy atmosphere is maintained with casually dressed employees and recreational amenities such as mini-basketball hoops (Gallagher & Reindl, 2013).

With Gilbert at the helm, Quicken Loans introduced a series of innovative programs that have been replicated by other organizations in the industry. These include marketing and advertising campaigns designed to attract customers at the peak of the 2008–09 mortgage crisis, paperless mortgage applications, and the current Rocket Loan program, which makes the mortgage application process even faster using an online application and nearly immediate feedback.

The efforts to create a positive work environment for employees coupled with an emphasis on community development and renovation is responsible for the many favorable reactions to the company. This approach demonstrates the value of understanding the principles of effective behavior management described throughout this textbook.

Re�lection and Application Questions

1. Which elements of the Quicken Loans employment package are most appealing to you? 2. How can a favorable image in the community in�luence the internal workings of a company? 3. How can a fun-loving environment connect with innovation and creativity? How can it create problems?

Organizational behavior is commonly known as a hybrid �ield, which means that those who study the topic will encounter concepts and theories generated in a variety of academic disciplines. OB can also be described as "interdisciplinary" or "multidisciplinary." In any case, the study of organizational behavior in the modern context requires a modest understanding of concepts generated in the following �ields:

psychology social psychology sociology organization theory human resource management history research methods and statistics anthropology

Each contributes unique insights into the study of methods used to improve individual and organizational performance.

Psychology

Psychology, the study of individual mental processes, profoundly in�luences the �ield of organizational behavior. Psychologists examine many factors that are part of organizational life, including stimuli, perception, learning, personality, and motivation. By understanding how stimuli are perceived, attention-getting factors associated with learning can be designed to improve training programs and create effective workplace safety practices. Perception affects the subsequent development of the attitudes, beliefs, and values that shape citizenship within the �irm. Several motivation theories that apply to the workplace were developed or in�luenced by psychology.

Social Psychology

Social psychology, or the examination of social factors that in�luence individual mental processes, includes a sweeping number of topics that overlap with organizational behavior. Roles and role theory, teams and groups, decision-making processes, leadership, and communication are topics studied by both social psychologists and organizational behaviorists. Recent contributions made by social psychology to the �ield of organizational behavior include the concepts of social information processing and the nature of inclusive or exclusive language that can be used to alienate or discriminate against others.

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Weber, like Blau, is known for his contributions to social theory.

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Reliability and Validity in Action

Watch as an instructor asks students to demonstrate the principles of reliability and validity in this exercise.

Critical Thinking Questions

1. What might be some additional ways that one could ensure reliability?

2. question

Sociology

Sociology is the study of social organizations. Organizational design and structure, roles, and teams and groups are subjects that sociology and organizational behavior have in common. Many of the classic principles of organizational structure �irst appeared in the writings of sociologists, including Max Weber and Peter Blau.

Organization Theory

A strong overlap exists between sociology and organization theory due to their emphasis on organization design issues. The primary difference is that organization theory approaches the topic from a stronger business perspective. In both sociology and organization theory, the organization constitutes the primary unit of analysis rather than individual employees, teams, or groups.

Human Resource Management

Human resource management (HRM) and organizational behavior share a parent �ield: management. Each area (HRM and OB) is a management specialty. Both examine the subjects of job design, union–management relationships, and job satisfaction, including the indicators of satisfaction (rates of absenteeism, tardiness, turnover, accidents, grievances, and vandalism) in the workplace. Many organizational behavior research efforts aim at improving job satisfaction and its indicators.

History

The role of history in organizational behavior is related to context. Early theories of motivation and job design emerged during the Industrial Revolution, as did ideas regarding organizational structure. Several of these concepts resulted from the movement to factories and centralized work places (rather than personal homes and workshops). During World War II, new leadership theories emerged as the United States government sought to improve leadership skills among military of�icers. In the 1960s, the ability to conduct more

sophisticated research and data analysis arose from the development of computer technology and later from the introduction of the Internet.

Research Methods and Statistics

Knowledge in the �ield of organizational behavior advances through quality research. Research methods and statistics programs seek to generate high-quality experiments and empirical investigations of constructs, postulates, hypotheses, and theories. A construct is a term that is used to represent an unobservable process. Motivation and learning are constructs that cannot be seen but that still take place. For example, a research study might seek to measure the construct of "job satisfaction" at a local hospital.

In organizational behavior, a quality research project includes reliability, where variables can be measured consistently and repeatedly. The research project must also possess validity, meaning that the study measures the variable intended to be measured, and thus its �indings can be generalized to other groups. A research study that �inds employees who work the third shift in a hospital to be more dissatis�ied with their jobs than those working the �irst or second shifts exhibits reliability when the measures of the construct "job satisfaction" can be repeated and obtain the same results. The study has validity when the �inding (greater dissatisfaction is present) can be transferred to employees in other settings, such as third-shift workers in manufacturing plants, restaurants, and hotels.

Anthropology

Anthropology contributes to organizational behavior through the emphasis on concepts such as organizational climate and culture. The organizational climate, or prevailing atmosphere within an organization, dictates whether employees feel relaxed and accepted or stressed and fearful. Internal and external forces can change the climate of a company. An external factor such as a recession can cause organizational members to worry about losing their jobs and lead supervisors to exhibit a more directive management style. An internal change in climate results when top managers leave. Each new executive will imprint his or her personality on the organization, thereby causing a shift in the �irm's environment.

Anthropological methods include the "researcher as participant" form of inquiry. Classic studies by John Van Maanen in a police department and Rosabeth Moss Kanter in a major corporation have added new insights into what happens in the workplace (Van Maanen, Dabbs, & Faulkner, 1982; Kanter, 1977). Both argue that organizations should be studied from within rather than by using constructs imposed from outside.

Another anthropological element, culture, also affects organizational behavior. Culture at the national level in�luences many companies. The operation of a �irm in Japan will likely be quite dissimilar from that of a company in Mexico due to differences in national culture. Organizational culture constitutes the more enduring aspects of life within a company. A company's culture often begins with a founding story, such as Mark Zuckerberg's tale at Facebook or the story of J. C. Penney's �irst retail store. Over time company stories, legends, language, and rituals evolve and then become relatively �ixed and dif�icult to change.

As this brief section indicates, organizational behavior has been enriched by the theoretical contributions and research �indings from a variety of related �ields. More recently, concepts

Reliability and Validity—Core Concepts in Psycholog...

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The "researcher as participant" method is a form of qualitative research that requires immersion and participation in the given environment.

Prathaan/iStock/Thinkstockderived from postmodernism, including ideas about the construction and deconstruction of language as well as views of the organization, hegemonic processes, notions of subjectivity and identity, and cultural imperatives have begun to in�luence thinking about what happens in the workplace (Baack & Prasch, 1997). Undoubtedly the future will include even greater expansion into other academic �ields to enhance understanding of organizational processes.

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Mary Parker Follett was responsible for the notion that managers ought to guide and help their employees, rather than monitor them, thereby shifting the �ield's focus to human relations, and away from simple productivity.

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1.2 Historical Overview: Scienti�ic Management and Human Relations Organizational behavior is a sub�ield of the larger �ield of management. The management and organizational behavior disciplines have evolved over time, from relatively straightforward ideas about increasing productivity to complex modern approaches. Historically, the scienti�ic management approach was at the forefront of the study of the �ield of management. It was followed by the human relations movement and the subsequent transition to modern organizational behavior.

Scienti�ic Management

Historians trace the beginnings of the �ield of management to the late 1800s, when Henry R. Towne (1886) presented a paper entitled "The Engineer as Economist" to the American Society of Mechanical Engineers. The article argued that the study of management was equal in importance to the study of engineering, and therefore the �ield should create its own body of research and have its own professional organizations (Bedeian, 1986).

Within a decade, mechanical engineer Frederick W. Taylor (1903, 1911/2010) developed the principles of scienti�ic management, an approach that merged classic scienti�ic principles with what was known about the practice of management. The four principles are displayed in Table 1.1. The use of these principles produced dramatic increases in productivity levels of individual workers. One notable example occurred in the Ford Motor Company with the development of the assembly line, which increased both productivity and pro�its.

Table 1.1: Taylor's four principles of scienti�ic management 1. Development of a true science of managing with clearly stated laws, rules, and principles that replaced rule-of-thumb methods

2. Scienti�ic selection, training, and development of workers for speci�ic jobs

3. Cooperation with workers to make sure work is completed using scienti�ic principles

4. Equal division of tasks and responsibilities between workers and management Source: Adapted from A. G. Bedeian (1986). Management. Chicago, IL: The Dryden Press.

Later, Frank and Lillian Gilbreth (1915) incorporated the principles of scienti�ic management into their time and motion study. By observing work performance using �ilm and a stopwatch, they designed more ef�icient methods to complete tasks.

As these concepts and applications evolved in the United States, Henri Fayol (1916/1949) wrote in his native French about the importance of the classic management functions of planning, organizing, staf�ing, directing, and controlling. The ideas paralleled the principles of scienti�ic management in the United States and were widely implemented throughout Europe.

At the same time, however, criticisms emerged that scienti�ic management programs dehumanized employees and created sweatshop-like conditions. The U.S. government and individual unions sought to protect workers from unfair management tactics, such as the use of child labor, pay scales not suf�icient to maintain a standard of living, and abusive supervisors (Majority Report of the Sub-Committee on Administration, 1912). The U.S. labor movement achieved dramatic legislative gains during the scienti�ic management era. Further, one governmental response was to ban the use of a stopwatch to measure work output. Legislators argued it placed undue pressure on workers, almost as a form of coercion (Bedeian, 1986).

The Human Relations Movement

The �ield of organizational behavior emerged from other aspects of management following a series of changes to the �ield of management as well as the general conduct of business. Some of the origins of organizational behavior are credited to Mary Parker Follett, who questioned the wisdom of scienti�ic management. She argued that the system ignored the human element of organizations (Follett, 1918). Follett believed that improved communication between parts of a company could be created by increasing employee participation in the direction of the �irm, especially when workers were given autonomy and assigned into crossfunctional teams to work together on projects. Follett concluded that managers should serve as coaches and facilitators rather than as monitors and supervisors. This idea became the basis of the human relations movement (Tonn, 2003), the focus of which is on the behaviors of people rather than solely on productivity. Two important elements of the human relations movement include the Hawthorne studies and Maslow's ideas regarding humanism.

The Hawthorne Studies The human relations movement in management began in earnest in 1927 with the Hawthorne studies. In the experiments, which ran from 1927 to 1932, researchers Elton Mayo and Fritz Roethlisberger altered different factors, most notably the level of lighting, to determine the effects on worker productivity. The primary �indings of the research project were as follows:

1. The subjects responded to positive and pleasant interactions with researchers by increasing productivity rates on the job.

2. Some of the tasks performed by supervisors were eventually assumed by entry-level employees, who also generated higher levels of production because the workers found the experience to be "fun" and free of anxiety about being disciplined for poor performance.

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

Mayo and Roethlisberger concluded that workers are motivated by more than money. Social interactions constitute a key part of the organizational experience. Individual attitudes and collective employee morale were signi�icant determinants of productivity levels. The researchers suggested company managers should account for human emotions and interactions to achieve higher levels of success (Urwick, 1960; Bedeian, 1986).

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Although criticisms of the research methods used have emerged and questions regarding the exact nature of the �indings and conclusions related to those �indings exist, what remains clear is that the studies altered the course of investigation into the nature of management of social organizations. In essence, the recommendations made by Mayo and Roethlisberger, that managers should pay close attention to the human element of their operations, created a dramatic impact on the �ield of organizational behavior and the practice of management at a more general level.

Abraham Maslow and Humanism The �ield of organizational behavior has been shaped, in part, by the �ield of psychology, a trend which increased during the human relations movement era. Prior to that time, the classical approach to psychology included the belief that human nature was essentially weak and prone to evil (Hjelle & Ziegler, 1981). Not surprisingly, from that vantage point, workers were viewed by management as only being motivated by money (pay) and fear (termination, docking pay, pay cuts). In essence, management in general took a carrot-and-stick approach to supervising entry-level employees.

Clinical psychologist Abraham Maslow was among the �irst to shift views regarding the nature of the human experience. Maslow reasoned that the basic inner nature of a person is inherently good, a perspective which became known as humanism. Maslow expanded the argument by suggesting that life is the process of "getting better." At each new stage of life, the individual becomes more concerned with connecting to, assisting, and serving others. The ultimate expression of life, known as self-actualization, results from performing helpful and meaningful work while staying true to one's own sense of self. This countervailing perspective regarding the nature of people transferred to the workplace. Employees could be viewed as being intelligent, innovative, motivated, and capable of learning and growth. One outcome from this perspective included new theories about the nature of management, such as those summarized in McGregor's Theory Y in the next section.

In addition to organizational behavior and management, Maslow's writings in�luenced the �ields of psychology, social psychology, sociology, and marketing. Much of the research and theory-building that took place in the years following the publication of Maslow's theory included humanist assumptions. In essence, scienti�ic management, which relied on money and fear as primary motivators, was being supplanted by newer, more positive views of employees. Human relations theories incorporate the concept that positive employee attitudes, combined with praise and recognition by supervisors and interesting work, can contribute equally to workplace motivation and productivity (Maslow, 1954, 1998).

Douglas McGregor and Theory X/Theory Y Perhaps the most insightful book related to the �ield of organizational behavior is Douglas McGregor's The Human Side of Enterprise (1960). McGregor proposes two companion theories, summarized in Table 1.2, that crystallize the differences between scienti�ic management and the human relations movement. Theory X expresses the negative assumptions leaders have about their followers: for example, they want to avoid work and responsibility. The logical conclusions managers would draw would be that they should use fear or money to motivate employees. Theory Y represents the opposing perspective, in terms of both assumptions and conclusions made by leaders: for instance, that it is natural for people to want to work, and that motivation comes from within.

Table 1.2: McGregor's Theory X and Theory Y Assumptions of Theory X Assumptions of Theory Y

1. People dislike work. 1. Wanting to work is natural.

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

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

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

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

Assumptions of Theory X Assumptions of Theory Y

1. Leaders should be production oriented. 1. Leaders should be people oriented.

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

McGregor believed that the Theory X leadership style was ineffective because workers would be underutilized and their potential contributions would be lost. He argued that Theory Y leaders unleash human potential and would help employees and the overall organization achieve at higher levels.

The human relations movement began to wane as technology became more sophisticated. It became apparent that what the Gilbreths had called the quest to identify the "One Best Way" was impossible. Workplace situations are complex and differ from one another. Consequently, neither the scienti�ic management approach nor the humanistic vantage point can provide complete answers as to how an individual can effectively direct a department or an overall organization. This has led to new ideas and concepts about how to manage employees.

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1.3 Modern Management and Organizational Behavior During the 1950s, 1960s, and early 1970s, a series of political, social, and technological trends in�luenced the academic world and the world of commerce. Laws regarding discrimination were enacted; issues regarding gender equality arose; and the government underwent a great deal of scrutiny, most notably as a result of the Vietnam War and the Watergate scandal. The baby boom generation and its insistence on greater freedom gave rise to new social trends. Technology played a major role in shaping the nature of research and the methods used to conduct business. Computerization, miniaturization, and robotics dramatically in�luenced the workplace and the classroom.

The �ield of organizational behavior evolved with the times. In the 1950s, the related college course was often called "industrial psychology" and was taught in psychology departments. As the content moved into schools of business, the most common name for the class was "human relations." Eventually the name shifted to organizational behavior.

Early in the modern era, two concepts in�luenced the overall practice and study of management: systems theory and contingency theory. These two theories created a new context for organizational behavior studies and set the stage for programs like positive organizational behavior.

Systems Theory

Chester I. Barnard introduced systems concepts to the practice of business. Barnard (1938/1968) believed organizations consisted of a series of physical, biological, personal, and social components that form into a cooperative system, which pursues distinct goals and ends. Later, systems theory conceptualized an organization as a set of interrelated parts working together in a holistic fashion. Figure 1.1 portrays a system. The model applies to biological, mechanical, and social systems.

Figure 1.1: A system

Chester Barnard developed systems concepts, which later became systems theory. Systems theory demonstrates how an interrelated set of parts evolves into a holistic process.

In a business system, inputs include raw materials, �inancial resources, and human resources. The transformation process is the company's production function, including the assembly of physical products and the delivery of intangible services. Outputs are the �inished, �inal goods and services sold to the public. The feedback mechanism provides correction and adjustment, keeping the organization in tune with its environment. Control systems, such as performance appraisals of individual employees and annual accounting statements for overall companies, are feedback mechanisms.

Two major developments emerged from systems theory: �irst, the concept that organizations constantly change, and second, that organizations must adapt to the larger environment to continue operations. Prior to systems theory, �irms were often viewed more as a snapshot than as a moving picture. For example, Twitter at its inception was a simple messaging system that did not seek to make a pro�it. But in its current form it is a far different organization. Thus, a single image from years ago would not suf�ice to describe the company.

The need to adapt to the environment led to biological analogies. The �irst, the life-cycle concept, suggests that organizations are born, grow, reach a maturity stage, and eventually decline and die. The second, natural selection, notes that organizations that do not adapt to the environment will be selected out.

Systems concepts apply to employees as well. Humans are biological systems and go through life-cycle phases. Motives and work skill sets evolve over their lives. At the beginning of a career, what is most important to workers may differ greatly from what will motivate them as they approach retirement.

Natural selection also applies to individuals. Workers with skills not suited to the economic environment cannot �ind jobs, which means they are selected out. Such has been the case for many coal workers in the United States as that industry has begun to wane.

Contingency Theory

If one phrase summarizes contingency theory, it might be, "There is no one best way to manage." Contingency theory suggests that organizational variables should be matched with or adapted to the situation at hand. This new approach makes it possible to incorporate advances in technology (speci�ically computers) into research programs. It recognizes that organizational life is complex and requires a more in-depth analysis of the factors involved. In contrast to the concept of searching for a "best way," which appears in both scienti�ic management and the human relations movement, contingency theory proposes a more complex approach to management.

In organizational behavior, no one best motivational system, leadership style, or form of organizational structure and design exists. Instead, if → then approaches to management are required. Many of the theories that have evolved in organizational behavior re�lect contingency thinking, where managers adapt to the situation, company, employees, and other circumstances.

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Contingency theory leaves room for changing circumstances, and can be useful for unconventional work environments to which more prescriptive theories may not apply.

Blend Images/Blend Images/SuperStock Positive Organizational Behavior

Positive organizational behavior is the study and application of positively oriented human resource strengths and psychological capacities for performance improvement in today's workplace. Positive OB has its roots in the positive psychology movement, which began in the late 1990s. Positive psychology primarily focuses on building human strength and was

translated from the �ield of psychology to the �ield of organizational behavior by Fred Luthans. Instead of the quick-�ix self-help approaches often found in the popular press, positive organizational behavior seeks to identify human resource strengths and capabilities that can be measured, developed, improved, and managed. To do so, positive organizational behavior is built on the principles summarized by the acronym CHOSE (Luthans, 2002):

1. Con�idence and self-ef�icacy: I believe I control my own destiny. 2. Hope: I think there is a good chance I will make my numbers this year. 3. Optimism: Even though our team is being asked to do more with fewer resources, we can use this as a chance to shine. 4. Subjective well-being: Each situation requires a unique response. 5. Emotional intelligence: The ability to adapt to change and environmental turbulence.

The positive organizational behavior approach stresses an encouraging work environment in which managers are approachable and employees feel free to express ideas and seek to develop their full potential. This bodes well for every aspect of their organizational lives and includes achieving personal success while increasing company pro�itability and growth.

The basis of positive organizational behavior can be found in concepts such as open-door management, wherein managers offer access to employees, who can ask questions or discuss ideas or problems. It incorporates an emphasis on employee participation as well as Theory Y. Positive organizational behavior emphasizes nurturing and empowering employees.

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1.4 Organizational Careers: Personal and Managerial Factors While an understanding of organizational behavior contributes to overall company success, the study of organizational behavior can contribute to personal success as well. An effective manager—or future manager—understands people. First, however, managers must understand and improve themselves in order to achieve career success.

Self-Management and Personal Success

"Personal success" may be a dif�icult concept to de�ine. For one individual, the concept suggests wealth or fame. For another, success results from moving to the top of the organizational chart and assuming the role of chief executive of�icer (CEO). Another still may view personal success in terms of serving people, including family, friends, and even strangers.

For purposes here, the concept of personal success speci�ically addresses one's career and time spent in business organizations. Whereas management can be de�ined as accomplishing work and organizational goals by assisting, training, and leading others, self-management involves all efforts designed to pursue personal and professional goals. The primary concepts that apply to personal success in that context include

training and preparation �inding the right person–organization �it continuous improvement achieving balance building and maintaining a personal moral and ethical code

Each component contributes important elements to a satisfying career.

Training and Preparation The concept of lifelong learning has swept through much of the academic and business world. New technologies and methods of operation require continuous study. A successful personal career likely includes formal training in the academic world, such as undergraduate and master's degrees; participation in managerial training programs in individual companies; personal efforts to improve skills through conferences, seminars, professional reading, and online research; and discussion with mentors and experts.

Finding the Right Person–Organization Fit For most people, �inding the ideal workplace will not happen with the �irst employment experience. It takes time and several jobs to discover what someone wants in a company. An individual may most value social interaction, the work itself, the opportunity to be promoted, or numerous other, less visible aspects of organizational life. Figure 1.2 models the person–organization �it concept. It implies that when an employee has found the right employer, a series of bene�icial outcomes emerge. Part of career management involves personal awareness regarding what you think is important, combined with seeking to �ind the company that offers the best chance to achieve.

Figure 1.2: A person–organization �it model

The person–organization �it concept suggests that positive outcomes occur when an employee �inds the right employer.

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A careful self-examination will be part of �inding the right �it. Some people belong in a category called "cosmopolitans": persons who �ind the greatest ful�illment in serving the larger profession rather than a speci�ic organization. "Locals" focus on succeeding within the employer company (Goldberg, 1976). In �inding a �it with an organization, cosmopolitans are suited to companies that grant greater autonomy and derive recognition from the external professional activities of employees. Locals �it in most organizations, so long as professional requirements do not eliminate them for obtaining jobs or limit them from being promoted.

Continuous Improvement Beyond lifelong learning, a successful career includes honing personal skills, building relationships, and taking new challenges as time passes. Improving computer skills will make an employee valuable to a range of employers. And individuals who take the initiative to learn a foreign language and better understand the customs of another country may be rewarded with new assignments or business trips abroad.

Early in a career, one form of improvement might involve �inding a mentor who is willing to help a young employee navigate the challenges of a speci�ic company and occupation. Later, continuous improvement involves becoming a mentor to assist and develop others. These and other relationships help make for a ful�illing career based on more than mere on-the-job accomplishments.

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

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

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Achieving a balance between work and personal time is an important career objective.

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

In summary, a series of steps must be taken to build a personal career. Success begins with �inding an organization that provides a good personal �it. Then employees can tend to their evolving assigned tasks while also enhancing personal attributes that are of value to the companies they work for. The �inal building block, �inding a balance between life at work and away from the of�ice, helps guarantee that at the end of a career, the individual can take satisfaction in a job well done and a life well lived.

Beyond these aspects of personal career enhancement, one pervasive issue exists: the role of personal ethics. Every part of an organization's operations is affected in one way or another by ethical dilemmas. In organizational behavior, personal conduct, methods of employee training, evaluation, and personnel decisions (hiring, �iring, promoting) can be tinged by unethical actions by individuals or an environment that ignores or even encourages such behaviors. Career success and personal outcomes, in many ways, begin and end with individual decisions regarding how to respond to ethical challenges, many of which are presented in the coming chapters. At this point, consider how ethical concerns affected one company in OB in Action: Wells Fargo.

OB in Action: Wells Fargo

Sometimes the actions of executive management may not seem clearly linked to what takes place at the operational level. At best, this lack of connection can confuse employees or external stakeholders. At worst, it can re�lect an organization in crisis.

In the fall of 2016, Carrie Tolstedt, a key of�icial at Wells Fargo who over saw the consumer banking unit, resigned her position, for feiting millions of dollars in compensation and bonuses. And following blistering criticism by, among others, Senator Elizabeth Warren, Wells Fargo CEO John Stumpf also turned down $41 million in stock awards (Egan & Wattles, 2016).

These dramatic events were precipitated by a program created by Wells Fargo top management in an effort to stimulate company growth. The program was an employee incentive system designed to increase the number of accounts individual Wells Fargo customers held. At the time in the banking industry, the average number of accounts a single customer held with one �inancial institution was three. The goal at Wells Fargo was to increase that number to eight because, in the words of one executive, "Eight rhymes with great." That is, the more accounts a customer held, the more money the bank could collect in interest and fees potentially.

Unable to persuade enough customers to open more accounts and feeling the pressure to meet the new goal, many employees resorted to tactics such as creating small new checking or savings accounts for customers without their knowledge. Accounts were opened and then closed not long after, often leaving the customer responsible for small �inancial penalties and charges for checks that had bounced. Other employees created credit card accounts for customers without informing them. Many employees reported fears of being terminated for failing to meet objectives, and some begged friends and relatives to open accounts to help them meet their quotas.

Some employees felt uncomfortable with the program as soon as it was implemented. One employee reported that he reported his concerns to an ethics hot line and was soon terminated. Such less than subtle pressure undoubtedly had an impact on other employees (Egan, 2016).

When the problems began to surface, Wells Fargo responded by terminating more than 5,000 employees who had created at least two million bogus accounts. Several employees later reacted by �iling a lawsuit against the company for basically coercing them to behave unethically and illegally.

Damage to Wells Fargo took the form of a sharp drop in stock price as well as a barrage of negative publicity. It may take years for the organization to bounce back from what was essentially a motivational program rooted in questionable goals and granting objectionable rewards.

Re�lection and Application Questions

1. Who is the most responsible for the unethical acts in this scenario, low-level employees or top-level managers? 2. If you were an employee at Wells Fargo who encountered this program, how would you respond? 3. What can the executive management team at Wells Fargo do to restore employee, consumer, and governmental con�idence in the company?

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

Build and Maintain a Personal Moral and Ethical Code As the experience at Wells Fargo indicates, employees often encounter situations in which they are forced to respond to mandates posed by others that violate personal moral principles. The many examples of legal and ethical violations presented in this book, along with other similar challenges that arise in one's career, enhance the value of developing and maintaining a personal code of ethics. Many organizations provide tools to assist in dealing with ethical dilemmas; however, an advisable �irst step is for each person to consider what he or she believes are acceptable and unacceptable behaviors prior to commencing any career or joining any organization.

Managerial Skills

While the world of business has changed dramatically over the past several centuries, certain aspects of management remain largely the same. One continuing aspect is the basic distinction between managerial levels. At the core of nearly every company, there are three levels of management:

�irst-line supervision (operational managers) middle management (tactical managers) top management and CEO (strategic managers)

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Over time, as individuals move within the ranks of an organization, their orientations, duties, and required skill sets evolve. Concepts derived from organizational behavior can assist in acquiring and re�ining the talents needed to succeed at each level.

For most employees, the �irst position taken in a company will be at either the entry level as a line worker or as a �irst-level supervisor or manager trainee. Over time and with promotion, the primary focus and duties at each level of management shift along four dimensions (Guest, 1956):

technical, conceptual, managerial orientation speci�ic versus general tasks time orientation: short- versus long-term degree of human relations orientation

First-line supervisors and operational managers are far more likely to be concerned with speci�ic, technical matters. An of�ice manager in a physician's practice will be consumed with making sure that the paperwork associated with billing patients, �iling insurance claims, ordering medical equipment, and other medically-related tasks are correctly completed. A line manager in a manufacturing plant will concentrate on quotas, deadlines, and defects associated with production. A department manager in a retail store spends a great deal of energy managing inventories, creating ingenious displays, teaching effective selling techniques, and engaging in other on-the-�loor activities.

In essence, the managerial orientation rests with the task at hand. Not surprisingly, then, the focus largely remains short term. Deadlines must be met, paperwork must be completed, employee schedules must be �illed out, and other matters that take place in the coming weeks or months receive the greatest amount of attention. At the same time, a �irst-line supervisor spends signi�icant amounts of time working directly with people. In this area, concepts learned from organizational behavior are of great value in completing the more technical, speci�ic, and short-term elements of the job, especially in the areas of motivation, leadership, communication, problem solving, and con�lict resolution.

Middle managers and tactical managers oversee sets of departments or operations. They often hold titles such as plant manager, division head, or operations manager. The increasingly complex nature of meshing various tasks and operations together requires more complex managerial thinking skills that move away from speci�ic tasks to more general processes. Also, even though immediate outcomes remain important, the middle manager is often asked to think about tactical, mid-range subjects, such as plant modernization, acquisition and application of new technologies, or shifts in marketing methods. The decisions have implications that last much longer than the short term. Middle managers also engage with other people, and the roles they play are more complex. The concept of "having a boss while being a boss," or the superior–subordinate syndrome, indicates that middle managers must understand when they have authority and when they do not. They must know how to effectively lead and follow. A wider range of human relations skills becomes necessary.

Organizational behavior may be especially helpful to middle managers in two areas. The �irst evolves from applying knowledge to various situations, which improves a person's conceptual thinking skills while completing longer-range projects. The second results from a greater understanding of maintaining quality relationships with people of higher and lower rank.

Top-level managers, strategic managers, and the chief executive of�icer encounter a vastly different set of responsibilities that require a different orientation from other managerial levels. Top managers must see the big picture. They are required to understand how all parts of an organization's operation are brought together in a smooth, ef�icient, and effective manner. Therefore, conceptual skills and managerial skills are at a premium. Daily routines are more general, consisting of a series of managerial roles that must be played. Table 1.3 displays Henry Mintzberg's classic set of roles played by top managers.

Top-level managers think strategically. Issues that will arise in the long term deserve attention by those in charge of moving the company forward into the next decade. Interpersonal skills remain a vitally important resource, as a manager interacts with employees, suppliers, customers, government of�icials, the general public, union leaders, and other publics. Public speaking skills are a major asset at this level.

In summary, managerial orientation requires technical skills at the lowest ranks that evolve into more conceptual challenges as the person is promoted to middle and top management. Managerial skills are present at all levels, while the managerial tasks performed are somewhat different. The job itself shifts from a speci�ic set of tasks to more general duties at higher levels, and the amount of time spent planning increases. Organizational behavior offers training, models, and concepts that can assist a manager at any rank in the organization, especially in the area of interpersonal relations.

Table 1.3: Roles played by top managers and the chief executive of�icer

Interpersonal roles

Figurehead attends ceremonial, symbolic events

Leader acts as visible director of activities

Liaison interacts with internal departments and external publics

Informational roles

Monitor collects information internally and externally

Disseminator transmits information to internal constituents

Spokesperson transmits information to external constituents and publics

Decisional roles

Entrepreneur develops new ideas, concepts, products, and brands

Disturbance handler deals with unforeseen events and crises

Resource allocator spends resources and designs/signs budgets

Negotiator completes contracts with unions, suppliers, buyers Sources: Henry Mintzberg (1973). The Nature of Managerial Work. New York, NY: Harper & Row; Henry Mintzberg (1975). The Manager's Job, Folklore and Fact, Harvard Business Review, 53 (4), pp. 49–61; Arthur G. Bedeian (1986). Management. Chicago, IL: The Dryden Press.

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The evolution of the workplace is always subject to all manner of external forces. For instance, the election of the �irst African-American president, Barack Obama, marked a cultural precedent that has impacted the entire nation.

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1.5 Management and Organizational Behavior in the 21st Century The concepts presented in the previous section can help an individual build a foundation for a successful career. Ideas regarding training and preparation, �inding the right person–organization �it, seeking continuous improvement, achieving work-life balance, and building a strong personal and moral ethical code have been emphasized by management writers for several decades. They remain as key ingredients in the quest to enjoy a high quality work life and professional career. More recently, however, these activities, while clearly valuable, should be supplemented by an understanding of and adaptation to the new challenges and opportunities that have arisen in the workplace, in individual companies, and in the global arena.

The �ield of organizational behavior has been affected by several trends. The areas that stand out include an evolving workplace as well as globalization. Each alters what is taught in an organizational behavior course and its application in the world of business. They also in�luence personal training and preparation, seeking continuous improvement, �inding the right organization, and they contain new ethical challenges. In essence they constitute new factors that play roles in achieving success in today's world of work and in successfully managing in such rapidly evolving circumstances.

The New and Evolving Workplace

Traditional principles of management textbooks examine �ive main forces present in the non- controllable external environment that demand a manager's attention: political, social, economic, technological, and competitive. The 21st century has already witnessed dramatic shifts in each of these areas. From the election of the �irst African-American president to the most recent presidential election, the political arena continues to evolve. Numerous social trends affect culture, business, and everyday life. The Recession of 2008 increased unemployment and profoundly in�luenced many companies. Technology introduced a sweeping number of new products and product features that have made the pace of business even faster. Competition has shifted to a worldwide marketplace.

The rate of change in the world of business continues to increase. Only a few decades ago, overnight package delivery was not possible. Contracts and documents traveled via the postal system, making any transaction take longer to complete. Air travel was the fastest mode of transportation, but now, with teleconferencing and other devices, interpersonal meetings with people around the world take place in real time. Terms such as "tweet" and "going viral" did not exist. Managers in the 21st century are expected to complete their functions while coping with a series of trends and changes in the workplace, including the following:

innovation and change connectivity and networked organizations employment of temporary workers

Innovation and Change Technology's impact tends to be widely discussed and evaluated. New technologies have changed everyday lives of people, both at work and off-site. An evaluation of technology would suggest that technological innovation comes in many forms, including those displayed in Figure 1.3.

Managers are expected to adapt to an increasing number of changes. The emergence of 3-D printing is likely to create dramatic effects on a variety of industries, from medicine at one extreme to the building of weapons at the other. Digital technologies have rapidly transformed various entertainment companies, from the production and delivery of music to television programs and movies. Technology also in�luences how employees interact, via social media and other devices rather than in-person, as well as how entire companies transmit information to employees and customers.

Figure 1.3: Technology and change

As technology changes, managers are expected to adapt. This �igure presents examples of recent technological advances that impact the business environment.

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(http://www.shingo.org/)

At the same time, in terms of change, technology only represents part of the equation, especially in the workplace. Dramatic changes continually take place in four additional areas: political and legal forces, social trends, economic shifts, and competitor actions.

The political and legal environment is in a constant state of �lux. Laws regarding privacy, identity protection, and other personal matters in�luence what managers can and cannot examine. Medical records may be increasingly available but should not be viewed by anyone other than licensed physicians and medical personnel. In 2011, challenges to the rights of unions were made by legislatures in both Ohio and Wisconsin. As the political landscape shifts, other regulatory changes that affect employees can be expected.

In the interaction between the social and legal environments, the 2015 Supreme Court decision regarding same-sex marriage has changed the landscape for many companies and their employees. Other court actions regarding responsibilities for providing insurance, especially for personal issues such as birth control, have created con�lict and controversy. In addition, diversity and illegal immigration issues persist in the national consciousness. Managers are expected to go beyond understanding the questions surrounding these issues to �ind workable solutions.

Economic forces have an impact on national and international companies, and are frequently in �lux. Downturns and layoffs were prevalent in the early part of the 2000s. Deciding who to rehire and when is one of many managerial considerations affected by economic conditions.

Competitive forces continue to change the jobs managers perform. They are expected to respond to competitive efforts in the areas of acquiring customers and making sales, but also in terms of hiring and keeping the best workers, obtaining loans in competitive lending situations, and developing and adapting relationships with the best suppliers.

Connectivity and Networked Organizations Another category of trend that managers must adjust to is in the realm of connectivity and networked organizations. The virtual workplace, in which employees and departments are connected digitally, is a recent innovation in the world of business. Networked organizations establish high-speed connections between members of the company around the world. This type of connectivity makes it possible to manage a �irm more ef�iciently. Employees have vital information at their �ingertips. Better decisions can be made without the same level of speculation and lost time that took place previously.

A networked company can better serve employees and customers. Use of cloud computing enables individuals and organizations to collect and store information in new ways. For example, a service employee with access to customers' preferences and shopping patterns can better address their needs. The employee will have access to information about previous contacts with the customer, both positive and negative. Entire organizational records regarding a variety of company functions can be stored on the cloud.

Many �irms have virtual connections with other companies. Project management may be shared by two cooperating �irms. Other companies submit orders, create packing labels, track shipments, send bills, and receive payments electronically. The virtual workplace means that two individuals do not have to be in the same room to work together. The rapid growth of mobile technologies makes it possible to make contact with others around the world in an instant.

The potential problem with connectivity is inundation with too much information and too many messages. Any manager who is away for a week returns to an onslaught of emails that have backed up. Messages may become lost when too many arrive at the same time. Further, computer hacks into company systems cause serious problems and concerns for managers and their employees.

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Globalization has changed and continues to change the landscape of business in the United States and abroad.

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Personal privacy issues have grown, as many �irms maintain large amounts of information about individual employees and customers. At times such information is sold to other companies or is taken by hackers for purposes of exploitation.

At the least, the 21st-century manager will be expected to use connectivity in daily work activities. Connectivity will in�luence how managers do their own work as well as how they interact with employees, customers, and any other individuals who make contact with the company.

Employment of Temporary Workers Many 21st-century managers also cope with a less stable work force. Firms hire temporary workers to reduce labor costs and cope with economic downturns. These individuals are not entitled to the same bene�its as full-time, permanent employees. To the manager, the challenge is constant training and making sure a temporary worker is able to perform assigned tasks. The individual will be less loyal to the company and not share the same degree of mental involvement. Most temporary workers will have less experience at a given task and reduced knowledge about the employer �irm. Managers can expect to be involved in more hands-on, day-to-day direction of these types of workers.

It is nearly impossible to keep up with or predict what will happen in the coming years. Popularity and usage of the various social media platforms is in constant �lux, and improvements in these technologies are introduced nearly every day. Each of the trends noted in this section, from changes in the workplace to increased connectivity, increased use of temporary workers, and greater challenges to the work-life balance, may evolve into some new form. Just as many television providers are beginning to offer 3-D programming, the impact of technology on the workplace and the nature of the managers will continue to progress.

Globalization and Global Management

The reach of even the smallest business has changed. The Internet and improved shipping capabilities have made it possible for smaller companies to attract customers around the world. At the same time, global conglomerates continue to adapt and expand. Mergers, acquisitions, partnerships and trade relationships, and a growing number of trade agreements among nations have affected the ways in which business is conducted.

Globalization has a noticeable impact on the availability of products and services to customers. The rising number of product choices has improved the standard of living for many people. The spread of mobile communications products serves as an example. People around the world have access to cell phones and the Internet through handheld devices. As the new century unfolds, the trend toward a greater number of product choices will continue (World Trade Organization, 2011).

The global marketplace also affects how managers operate. A series of new challenges awaits anyone interested in conducting international business, especially in the area of human resources. Managers engaged in international trade can expect to encounter issues in the following areas:

selection of home- versus host-country employees and managers understanding of how cultural and language differences in�luence business activities reaction to international trends

Employee and Manager Selection An organization's general strategic approach forms the basis for all other business operations. It affects many of the company's business activities, including employee selection processes. Each �irm exhibits one of three mindsets: ethnocentric, polycentric, or geocentric. Each presents a set of options (Baack, 2005).

In the �irst approach, ethnocentric management, home-country employees will be selected and trained for overseas assignments. The strategy is often preferred by companies exporting to regions with the same or a similar culture. For example, a Canadian company might hire someone and train that individual for assignments in the United States and Great Britain, simply because it would be the easiest choice. Persons in those countries speak the same language and practice the same or similar religions. The relatively low level of cultural adaptation required makes it possible to simply assign a current employee to one of these new international locations. Such individuals are called "expatriate employees," or "expatriate managers" when they serve in supervisory roles. Some expatriates require training in a foreign language and must have an open mind regarding cultural differences. For example, an expatriate manager assigned by a U.S. company to a branch in France would �ind it useful to speak French and to understand the nuances of life in that country. Such nuances are not signi�icantly different in many ways from those in the U.S. but still do exist.

A second option, polycentric management, involves hiring someone from the target host country. These individuals have the natural advantage that comes from knowing the culture of the host country. They will need to be trained to understand how the home country's business operates, including managerial practices. They might discover that the leadership style is different and that the company will need to respond to motives and incentives that differ from those that drive local companies. In polycentric organizations, people in the �irm may communicate differently. In essence, they do not have to adapt to a new country, but rather to a new company.

Some companies employ geocentric management, in which third-party nationals are often hired. These employees are not citizens of the home or host country. At times, someone with a truly international point of view has the greatest advantage. They can adapt to a wider range of cultural variations.

Cultural and Language Differences Business is conducted in diverse ways, depending on the culture of the country. Successful business people investigate these differences prior to visiting a foreign land. Some examples of cultural nuances include activities such as building relationships before talking business, dining and meals as part of the business interaction, gift-giving protocols, the use of titles and surnames, and even presenting a business card.

The �irst requirement for any international assignment is acceptance that there will be differences in culture. Culture shock is a feeling of disorientation that often occurs when an individual �irst arrives in a new country. Many customs will seem different, beginning with something as simple as a greeting (a bow versus

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Effective managers must stay abreast on major geopolitical events, such as the United Kingdom's exit from the European Union in 2016. Events like this one, which is colloquially named "Brexit," have implications for organizations all over the world.

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a handshake). Cultural sensitivity is the ability to understand and accommodate individuals from other cultures. It includes awareness of differences in religion, manners, dining and foods, and other matters associated with everyday living and the conduct of business. Those who do not or cannot accommodate other cultures exhibit ethnocentrism, or the belief that one's culture is inherently superior to others. Such individuals will experience major problems on international assignments.

Language skills are useful in many international business relationships. At the least, knowing how to greet someone in his or her native language often begins a transaction on a much more cordial note. Those who know a second language have a distinct advantage in today's employment marketplace, and in general, international business includes adaptation to foreign languages. Someone from France conducting business with a person from the United States will need to �ind a language that both can understand. Slang complicates the issue of language barriers. Even someone trained to speak French will soon discover that natives use a great deal of terminology not taught in formal classes. Additional barriers to international communication include (Baack, Harris, & Baack, 2012) the following:

not knowing if it is appropriate to address someone directly or to speak in a deferential manner not knowing whether it is culturally acceptable to make eye contact or avert one's eyes displaying ethnocentrism and stereotyping of other cultures failure to understand differences in the meanings of nonverbal cues not knowing how to deal with personal space issues not comprehending the use of symbols and cultural icons

Successful international managers are aware of differences in communication patterns. They then adapt in ways that make business transactions comfortable while reducing the potential for con�lict and misunderstanding.

Ethics awareness, another key aspect of cultural difference, means being aware that cultural values and methods of conducting business vary. What might be considered a gift in one country will be viewed as a bribe in another nation. Many countries allow bribery and allow the amounts given to serve as tax write-offs. Gender roles are substantially different in various parts of the world. In some cultures, women may not be allowed to speak or take part in business transactions. Labor laws do not protect workers in many nations, which means child labor is used, living wages are not paid, and safety procedures are limited or do not exist. Each individual and company decides what is acceptable and what is not (Baack & Baack, 2009). Many companies employ a cultural assimilator to assist in these matters. The assimilator is someone well versed in the local culture who helps others adapt to the foreign situation.

Evolving International Trends In 2011, a series of nations in the Middle East experienced upheaval. Egypt, Syria, Bahrain, Iran, and other countries underwent protests and attempts to transform local governments. At about the same time in the United States, anti-Muslim sentiment rose to new heights, as evidenced by the negative reaction many had to the construction of an Islamic activity center in New York City, near the site of the World Trade Center.

More recently, the decision by Great Britain to leave the European Union (Brexit), the in�lux of refugees from Syria into numerous other countries, the growth and in�luence of ISIS (or ISIL), combined with numerous terrorist attacks around the globe have increased sensitivities regarding activities as basic as visiting foreign countries and as complex as the seeking to engage in international trade. The Trans-Paci�ic Partnership (TPP) agreement became a contentious issue in the 2016 election cycle, as some in the United States opposed the agreement while others favored it.

Any political or economic event that in�luences another country has a potential impact on international business relationships. Effective global managers consider these events and try to understand how their company's interests may be affected. Political knowledge includes keeping up with current events and seeking counsel to understand how those events affect business operations. Many times, political con�licts result from cultural misunderstandings and ethnocentrism.

Organizational behavior can be expected to change with increasing globalization. A greater amount of research will be dedicated to understanding cultural differences. The GLOBE project is a research program in the area of leadership that addresses cultural nuances. The project is made up of scholars from 61 different cultures who are working together to develop a theory of how cultural variables affect leadership and organizational processes throughout the world. Other programs will undoubtedly be designed to help employees cope with international assignments (Hill, 2003).

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Summary and Resources

Chapter Summary

Organizational behavior (OB) is the investigation of the behavioral factors that affect modern organizations and their management at the individual, group, and organization-wide levels.

Organizational behavior includes concepts from the �ields of psychology, social psychology, sociology, organization theory, human resource management, history, research methods and statistics, and anthropology. OB is a hybrid �ield that incorporates ideas from these and other disciplines.

Historically, the scienti�ic management approach came �irst. Frederick W. Taylor developed the principles that merged scienti�ic concepts with the practice of management. Frank and Lillian Gilbreth incorporated the principles to create the time and motion study. Henri Fayol wrote about planning, organization, staf�ing, directing, and controlling at about the same time.

Scienti�ic management was challenged by the human relations movement, beginning with the work of Mary Parker Follett. The Hawthorne studies, Maslow's views of humanism, and the concepts found in Theory X and Theory Y followed.

Modern management and organizational behavior approaches include systems theory, contingency theory, and positive organizational behavior.

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

Managerial skills need to evolve as a person is promoted from �irst-line supervision to middle and top management roles. Technical, conceptual, and managerial orientation change, tasks move from speci�ic activities to more general work, the manager's time orientation tends to move toward the longer term, and the degree of human relations orientation evolves as a person moves upward through the organization's ranks. Top-level managers engage in interpersonal, informational, and decisional roles.

The �ields of management and organizational behavior have been in�luenced by elements of the non-controllable external environment. These include rising levels of diversity in the workforce, new ethical challenges, an evolving workplace and increasing globalization. The evolving workplace has witnessed higher levels of connectivity and networking among individuals on the job. Social media and other technologies continue to in�luence the ways in which people work. Further, all employees and managers will be exposed to cultural differences, both within a country and in dealings with individuals and organizations from other nations. Language skills and cultural sensitivity become valuable assets in those settings.

CASE STUDY: The New Supervisor

Jose Torres drove to work for his new assignment with a big smile. He was excited about becoming the manager of a mobile phone retail store. His duties included serving customers, problem solving, creating an inviting store environment, training and motivating the other salespeople, tracking inventory, and designing special events. Even though he was 26 years old, and two of his employees were over 30, Jose was ready for the challenge.

Within a week, the smile was gone. Jose quickly discovered that the two older workers were more than willing to take shortcuts. Some of the things they said to customers bordered on being false, or misleading at best. The two employees also would count sales until the monthly quota was reached, and then "bank" any extra to get a good start on the next month. This hurt the store's potential pro�itability statements and would make Jose look bad.

Jose's boss, Marcia, deemed herself "old school." She warned him that her view was that retail store employees were only there because they couldn't �ind or hold better jobs. She expected them to cheat on quotas and basically "live down" to her expectations. "The only thing that keeps them here is a paycheck, so you'd better use it to your advantage. You can always cut their hours or schedule them at times when there is less traf�ic—to make the point that you are in charge."

Marcia's advice ran counter to what Jose believed. He knew that the economy was tough, which may have led some to take jobs that were not the best �it. At the same time, he sincerely believed no one takes a job wanting to fail.

Unfortunately, it was not long before Jose began hearing that some employees complained that they were working at Taco Bell, partly due to his ethnic background and because a greater number of Hispanic customers had begun to visit the store. Other ethnic slurs followed. Although he was never confronted directly, it was clear that most of the workforce did not respect him. Jose observed that most of the disrespect came from male employees.

Jose called a meeting. He handed each employee a review of his time with the company. It showed that he had set sales records nearly every month in his previous store, where he was not a supervisor. He told them that it was possible for each one of them to raise their sales and increase their bonus checks, if they would simply listen to his counsel. One of the older workers responded, "That will never happen. Even if we sell more, Marcia �igures out a way to make our pay come out the same." It was clear that some kind of change was in order.

Case Questions

1. Describe Jose's basic workplace philosophy. Does it �it this situation? 2. What organizational behavior concepts apply to management? To employees? 3. What type of leader is Marcia? Does her style make better sense for this company? 4. How could Jose build a better environment in the store? Or should he simply terminate the workers and start over?

Review Questions

Click on each question to see the answer.

De�ine organizational behavior. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

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What academic disciplines are related to organizational behavior? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

De�ine scienti�ic management. Who �irst proposed the principles of scienti�ic management? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Scienti�ic management merged classic scienti�ic principles with what was known about the practice of management. It was proposed by Frederick W. Taylor.

What is a time and motion study? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

A time and motion study involves the use of a stopwatch or �ilm to develop more ef�icient methods of completing work tasks.

What were the primary �indings of the Hawthorne studies? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The subjects responded to positive and pleasant interactions with researchers by increasing productivity rates on the job. Some of the tasks performed by supervisors were eventually assumed by entry-level employees, who also generated higher levels of production, because the workers found the experience to be "fun" and free of anxiety about being disciplined for poor performance. Workers tended to form groups that were cohesive and loyal to one another. Anyone who overproduced became a "slave" or "speed king" who was derided and even physically punched in the arm ("binging") by group members. Anyone who failed to do his fair share of work was labeled a "chiseler" and admonished to keep up with the group.

What is humanism? How did beliefs about humanism affect the �ields of management and organizational behavior? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Humanism is the belief that the inner nature of a person is inherently good and that life is the process of "getting better." Scienti�ic management, which relied on money and fear as primary motives, was being supplanted by newer, more positive views of employees. Human relations theories incorporate the concept that positive employee attitudes, combined with praise and recognition by supervisors and interesting work, can contribute equally to workplace motivation and productivity.

What are the assumptions and conclusions of Theory Y? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

Explain the parts of a systems theory model in terms of a business organization. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

In a business system, inputs include raw materials, �inancial resources, and human resources. The transformation process is the company's production function, including the assembly of physical products and the delivery of intangible services. Outputs are the �inished, �inal goods and services sold to the public. The feedback mechanism provides correction and adjustment, keeping the organization in tune with its environment. Control systems, such as performance appraisals of individual employees and annual accounting statements for overall companies, are feedback mechanisms.

In terms of positive organizational behavior, what roles do popular-press books and scienti�ic research play? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

De�ine management and self-management. (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

What ingredients help build a solid business career? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Self-management requires training, preparation, �inding the right person–organization �it, continuous improvement, and achieving balance.

What three levels of management require quality interpersonal skills? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

What are the four managerial orientations and duties that shift by hierarchical rank in a company? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Technical, conceptual, and managerial orientations change, tasks move from speci�ic activities to more general work, the manager's time orientation tends to move toward the longer term, and the degree of human relations orientation evolves as a person moves upward through the organization's ranks.

What global management skills are vital to 21st-century managers? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Skills include selecting home- versus host-country employees and managers, adaptation to the local language, understanding how cultural differences in�luence business activities, and reacting to international trends.

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What is meant by the term "ethnocentrism"? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

What factors create a new and evolving workplace in the 21st century? (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

Analytical Exercises

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

2. Explain the common elements in the work of Mary Parker Follett, the Hawthorne studies, Theory Y, Maslow's humanism, and positive organizational behavior. Contrast these ideas with scienti�ic management, Theory X, and the time and motion study. How do all of these theories contrast with systems theory and contingency theory?

3. Are there circumstances under which the demands of management interfere with self-management? Why or why not? 4. Make a list of the �ive most important elements in a job for you personally. Using the person–organization �it model, explain the type of company in

which you would like to work. Think of your response in terms of your current situation and then prepare a second list for 20 years from now. What will have changed?

5. Explain how relationships with entry-level employees would be different for each level of management. 6. Which of the factors that are part of the new and evolving workplace present the greatest challenges to 21st-century managers? Explain your answer.

Key Terms

Click on each key term to see the de�inition.

construct (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

A term used to represent an unobservable process.

contingency theory (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

A managerial approach in which organizational variables are matched with or adapted to the situation at hand.

cultural assimilator (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

A company employee who assists others in adapting to new countries and cultures.

culture shock (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

ethnocentrism (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The belief that one's culture is inherently superior to others.

humanism (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The belief that the basic inner nature of a person is inherently good.

human relations movement (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

An approach that focuses on the behavior of people rather than solely on productivity.

hybrid �ield (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

A branch of study that draws from a variety of academic disciplines.

life-cycle concept (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

In systems theory, the idea that organizations are born, grow, reach a maturity stage, and eventually decline and die.

management (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Accomplishing work and organizational goals by assisting, training, and leading others.

natural selection (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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In systems theory, the concept that organizations that do not adapt to the environment will be selected out.

organizational behavior (OB) (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The investigation of the behavioral factors that affect modern organizations and their management at the individual, group, and organization-wide levels.

positive organizational behavior (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The study and application of positively oriented human resource strengths and psychological capacities for performance improvement in today's workplace.

reliability (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The extent to which a variable can be consistently and repeatedly measured in research.

scienti�ic management (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

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

self-management (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

All efforts designed to pursue personal and professional goals.

systems theory (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

A viewpoint that conceptualizes an organization as a set of interrelated parts working together in a holistic fashion.

validity (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

The extent to which a study measures what it purports to measure and its research �indings can be generalized to other groups.

virtual workplace (http://content.thuzelearning.com/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633.17.1/sections/cover/books/Baack.3633

Digitally networked sets of employees and organizational departments.

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