Organizational Behavior: The Quest for PeopleCentered Organizations and Ethical Conduct

Chapter One

McGraw-Hill/Irwin 2013 The McGraw-Hill Companies, Inc. All rights reser e!.

Copyright 2013 by The McGraw-Hill Companies Inc! "ll rights reser#e$!

Learning Objectives
LO.1 Define the term organi"ational #eha ior, and contrast McGregors Theory X and Theory Y assumptions about employees. LO.2 Identify the four principles of total quality management (T M!. LO.3 Define the term e-#$siness, and describe the "et Generation. LO.4 #ontrast human and social capital$ and e%plain &hy &e need to build both. LO.5 Define the term management, and identify at least fi'e of the ele'en managerial s(ills in )ilsons profile of effecti'e managers.
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Learning Objectives (cont.)

LO.6 #haracteri*e +,st-century managers. LO.7 Describe #arrolls global corporate social responsibility pyramid$ and discuss the problem of moral erosion. LO.8 Identify four of the se'en general ethical principles$ and e%plain ho& to impro'e an organi*ations ethical climate. LO.9 Describe the sources of organi*ational beha'ior research e'idence.
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The Field of Organizational Behavior

Organizational Behavior
Interdisciplinary field dedicated to better nderstanding and !anaging people at "or#

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OB$%elated &#ills 're the Tic#et to %ide the (irt o s Career &piral

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The ) !an %elations *ove!ent

.egali*ation of union-management collecti'e bargaining /eha'ioral scientist called more attention to the human factor 0lton Mayo 1 )estern 0lectric 2a&thorne study

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The )a"thorne Legacy

Inter'ie&s do not support initial conclusions about positi'e effect of supporti'e super'ision Money$ fear of unemployment$ managerial discipline and high quality ra& materials &ere responsible for high output

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*c+regor,s Theory Theory X assumptions

pessimistic and negati'e$ typical of ho& managers traditionally percei'ed employees

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*c+regor,s Theory Theory Y

belie'ed managers could accomplish more through others by 'ie&ing them as selfenergi*ed$ committed$ responsible$ and creati'e beings

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*c+regor,s Theory . and Theory -

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/ estion0
3s a production manager of Great Golf 4roducts (GG4!$ .orena belie'es that her employees are capable of self-direction and self-control. 5he also belie'es that they are committed to Titanium6s ob7ecti'es since they are re&arded for doing so. .orena can be described as a8 3.Theory X manager. /.Theory 9 manager. #.:uturistic manager. D.Theory Y manager.
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1hat is T/*0
Total Quality anage!ent
means that the organi*ations culture is defined by and supports the constant attainment of customer satisfaction through an integrated system of tools$ techniques$ and training. This in'ol'es the continuous impro'ement of organi*ational processes$ resulting in highquality products and ser'ices.

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2rinciples of T/*
,. Do it right the first time to eliminate costly re&or( and product recalls. +. .isten to and learn from customers and employees. ;. Ma(e continuous impro'ement an e'eryday matter. <. /uild team&or($ trust$ and mutual respect

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The Internet and &ocial *edia %evol tion

e"#u$ine$$
using the Internet to facilitate e er% aspect of running a business$ including the management of 'irtual teams

3nother important shift in the Internet is the gro&ing importance of user-generated content
:aceboo($ .in(edIn$ T&itter

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/ estion0
http8==&&&.Thin(gee(.com only has a business presence on the &eb. This is an e%ample of a(n! >>>>>>>>>>. 3.?/ric( @ #lic(A /.?#lic( @ MortarA #.0-business D.Betailer

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The &trategic I!portance and 3i!ensions of ) !an and &ocial Capital

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1hat is ) !an Capital0

%u!an &a'ital
The producti'e potential of ones (no&ledge and actions 3 present or future employee &ith the right combination of (no&ledge$ s(ills$ and moti'ation to e%cel

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1hat is &ocial Capital0

(o)ial )a'ital
The producti'e potential of strong relationships$ good&ill$ trust$ and cooperati'e effort

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/ estion0
The producti'e potential of strong$ trusting$ and cooperati'e relationships is (no&n as >>>>>>>>>>. 3. .earning capacity /. 5ocial capital #. Talent engagement D. Cno&ledge accessibility

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The *anagerial Conte4t5 +etting Things 3one "ith and thro gh Others
anage!ent
the process of &or(ing &ith and through others to achie'e organi*ational ob7ecti'es$ efficiently and ethically$ in the face of constant change.

:or students of D/$ the central feature of this definition is wor&ing with an! thro$gh others

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&#ills 64hibited by an 6ffective *anager

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78st$Cent ry *anagers
Teams are pushing aside the indi'idual as the primary building bloc( of organi*ations. #ommand-and-control management is gi'ing &ay to participati'e management and empo&erment. 0go-centered leaders are being replaced by customer-centered leaders. 0mployees increasingly are being 'ie&ed as internal customers.

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The Contingency 'pproach to *anage!ent

&ontingen)y *''roa)h
Esing management concepts and techniques in a situationally appropriate manner$ instead of trying to rely on ?one best &ayA

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6vol tion of the 78st$Cent ry *anager

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The 6thics Challenge

0thics is concerned &ith right 'ersus &rong$ good 'ersus bad$ and the many shades of gray in-bet&een supposedly blac(-and&hite issues

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' *odel of +lobal Corporate &ocial %esponsibility and 6thics

&or'orate $o)ial re$'on$i#ility +&(, ?the notion that corporations ha'e an obligation to constituent groups in society other than stoc(holders and beyond that prescribed by la& or union contract.

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' *odel of +lobal Corporate &ocial %esponsibility and 6thics

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Carroll,s +lobal Corporate &ocial %esponsibility 2yra!id

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' *odel of +lobal Corporate &ocial %esponsibility and 6thics

Ma(e a profit consistent &ith e%pectations for international businesses to fulfill economic responsibility. Dbey the la& of host countries as &ell as international la& to fulfill legal responsibility.

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' *odel of +lobal Corporate &ocial %esponsibility and 6thics

/e ethical in its practices$ ta(ing hostcountry and global standards into consideration to fulfill ethical responsibility. /e a good corporate citi*en$ especially as defined by the host countrys e%pectations to fulfill philanthropic responsibility.

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Ta#ing Local 9or!s and Cond ct into Consideration

"ational culture affects ho& people thin( and act about e'erything$ including ethical issues 0ach culture requires its o&n ethical analysis$ ta(ing local norms into consideration.

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6thical Lapses in the 1or#place

.o&er-le'el employees regularly &itness common ethical lapses such as lying about being sic($ fudging a report$ bullying and se%ual harassment$ personal use of company equipment$ and stealing company property or funds.

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Intense 2ress re for %es lts &tarts 6arly

Most common is an indi'iduals o&n desire to ?loo( goodA for their bosses$ &hich has been identified as a cause of unethical beha'ior in lo&er- and mid-le'el employees and managers.

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Intense 2ress re for %es lts &tarts 6arly

Managers pressure unethical beha'ior due to their o&n moti'ations to perform$ perceptions that such beha'iors are actually acceptable or that no consequences &ill occur$ re&ard systems that incenti'i*e unethical beha'iors$ and=or the physical en'ironment facilitates such actions

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The *agnificent &even5 +eneral *oral 2rinciples for *anagers

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)o" to I!prove the Organization,s 6thical Cli!ate

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Five &o rces of OB %esearch Insights

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' Topical *odel for 1hat Lies 'head

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(ideo Case5 &tarb c#s

)hy does 5tarbuc(s 'ie& its social responsibility acti'ities not as an e%pense or requirement$ but rather as an ?enlightened self-interestAF )hat is the benefit for 5tarbuc(s in assisting .atin 3merican farmers in obtaining financing to pay their pic(ersF )hy is 5tarbuc(s so interested in protecting the interests of the farmers &ho supply their coffeeF 3rent there others they could buy fromF
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(ideo5 2i#e 2lace Fish *ar#et

)hat does it mean at 4i(e 4lace :ish to be &orld famousF )hy does it ta(e some ne& employees months to understand this conceptF )hat role does organi*ational culture play in 4i(e 4lace :ishs quest to be &orld famousF )hy are other firms such as #offee /ean @ Tea .eaf adopting the ?fishA philosophyF 2o& does 4i(e 4lace :ish create the conte%t for &or(ers to reach their ma%imum potentialF )hat role does sociali*ation and mentoring play in creating and nurturing this atmosphereF

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