mba 552 organizational behavior and leadership. introduction to the field of organizational behavior
TRANSCRIPT
Organizational behavior (OB)
The study of what people think, feel, and do in and around organizations.
What are Organizations?What are Organizations?
Groups of people who work interdependently toward some purpose
– Structured patterns of interaction
– Coordinated tasks
– Work toward some purpose© N. B. Scott
OrganizationalOrganizationalBehaviorBehaviorResearchResearch
UnderstandUnderstandorganizationalorganizational
eventsevents
PredictPredictorganizationalorganizational
eventsevents
InfluenceInfluenceorganizationalorganizational
eventsevents
Why Study Organizational Behavior
Organizational culture
The basic pattern of shared assumptions, values, and beliefs governing the way employees within an organization think about and act on problems and opportunities
Trends: Information Technology
• Affects how employees interact– Virtual teams– Telecommuting
• Affects how organizations are configured– Network structures -- alliance of several
organizations
Trends: Globalization
• Global companies:– Extend their activities to other parts of the world
– actively participate in other markets
– compete against firms in other countries
Trends: Globalization
• Implications of globalization:– New organizational structures
– Different forms of communication
– More competition, change, mergers, downsizing, stress
– Need more sensitivity to cultural differences
Network structure
An alliance of several organizations for the purpose of creating a product or serving a client
Virtual teams
Cross-functional groups that operate across space, time, and organizational boundaries with members who communicate mainly through information technologies
Contingent work
Any job in which the individual does not have an explicit or implicit contract for long-term employment, or one in which the minimum hours of work can vary in a nonsystematic way.
Trends: Employment Relationship
• Employability – employees perform many tasks, not a specific job
• Contingent work – no explicit or implicit contract for long-term employment
• Telecommuting – working from home, usually with a computer connection
to the office
• Virtual teams– operate across space, time, and organizational boundaries;
mainly communicate through electronic technologies
Trends: Changing Workforce
• Primary and secondary diversity
• More women in workforce and professions
• Different needs of Gen-X, Gen-Y, and baby-boomers
• Diversity has advantages, but firms need to adjust through:
– cultural awareness
– family-friendly
– empowerment
Primary Dimensions of Diversity
• Ethnicity
• Race
• Mental/Physical Qualities
• Age
• Gender
• Sexual Orientation
Secondary Dimensions of Diversity
• First Language• Life Experiences• Geographic Location• Behavioral Style• Education• Income
• Work Experience• Work Style• Parental Status• Marital Status• Occupation• Religion
More women in workforce and professions
Women represent 50% of the paid workforce.
Women represent 50% of professional accountants
Women represent 43% of medical school enrollment
Women represent 4% of the leadership of corporations
Different needs of Gen-X, Gen-Y, and baby-boomers
Baby-boomers born 1946-1964 desire job security and are workaholics
Gen-X born 1964-1977 less loyal seek and expect less security
Gen-Y born 1978 – 88? Expect plenty of responsibility and involvement in the employment relationship.
Different generations bring different values and expectations
Trends: Values and Ethics
• Values– Stable, long-lasting beliefs about what is important– personal, cultural, organizational, professional
• Importance of valuesa. Globalization -- more awareness of different valuesb. Values replacing command-and-controlc. More emphasis on ethical business conduct
• Ethics– Moral principles/values -- determines whether actions are
right/wrong and outcomes are good/bad
OrganizationalOrganizationalBehaviorBehaviorAnchorsAnchors
MultidisciplinaryMultidisciplinaryanchoranchor
SystematicSystematicresearchresearchanchoranchor
ContingencyContingencyanchoranchor
Open systemsOpen systemsanchoranchor
Multiple levelsMultiple levelsof analysisof analysis
anchoranchor
Organizational Behavior Anchors
Multidisciplinary Anchor
Psychology – Motivation, perception, attitudes, personality, job stress, leadership
Sociology- Team Dynamics, roles, socialization, communication patterns, organizational power
Anthropology- Corporate culture, organizational rituals, cross-cultural dynamics
Political Science- Inter-group conflict, coalition formation, power and politics, decision-making
Economics- Decision-making, negotiation, power
Multidisciplinary AnchorIndustrial engineering- job design, productivity, work measurement
Communications- Knowledge management, electronic mail, corporate culture, employee socialization
Information systems- Team dynamics, decision-making, knowledge management
Marketing- Knowledge management, creativity, decision-making
Women’s studies- Organizational power, perceptions
Systematic Research Anchor
Systematic collection of data about organizational principles and practices
Scientific method
A systematic, controlled, empirical, and critical investigation of hypothetical propositions about the presumed relationships among natural phenomena
Contingency AnchorIt depends ------ on the situation
Selection of the best strategy depends on the conditions under which a decision must be made.
Contingency approach
The idea that a particular action may have different consequences in different situations
Multiple Levels of Analysis Anchor
Individual Level - includes the characteristics and behaviors of employees including thought processes such as motivation, perception, personalities, attitudes, and values.
Multiple Levels of Analysis Anchor
Team Level – considers interaction of people, teams dynamics, decisions, power, organizational politics, conflict, and leadership.
Organizational Level- focuses on how people structure working relationships and how organizations interact with their environment
Open Systems Anchor
Organizations that take their sustenance from the environment and, in turn, affect that environment through their output
FeedbackFeedback FeedbackFeedback
OutputsOutputsInputsInputs
SubsystemSubsystemSubsystemSubsystem
SubsystemSubsystem SubsystemSubsystem
OrganizationOrganization
Open Systems Anchor of OB
Stakeholders
Shareholders, customers, suppliers, governments, and any other groups with a vested interest in the organization.
They influence the firm’s access to inputs and ability to discharge outputs.
Knowledge Management Defined
Any structured activity that improves an organization’s capacity to acquire, share, and use knowledge for its survival and success
Intellectual capital
The sum of an organization’s human capital, structural capital, and relationship capital
Intellectual Capital
• Human capital– Knowledge that employees possess
and generate
• Structural capital– Knowledge captured in systems and structures
• Relationship capital– Value derived from satisfied customers, reliable
suppliers, and others
Knowledge Management Processes• Knowledge acquisition
– Grafting– Learning– Experimentation
• Knowledge sharing– Communication– Communities of practice
• Knowledge use– Awareness– Freedom to apply knowledge
Organizational Memory
• The storage and preservation of intellectual capital
• Retain intellectual capital by:– Keeping knowledgeable employees– Transferring knowledge to others– Transferring human capital to structural
capital
Fully describe intellectual capital, and explain how an organization can retain
this capital Intellectual capital is the sum of an organization's human capital, organizational capital, and relationship capital. Human capital refers to the knowledge that employees possess and generate. Structural capital is the knowledge captured and retained in an organization's systems and structures. Relationship capital is the value derived from satisfied customers, reliable suppliers, and other external sources that provide added value.
Intellectual capital retention continued
Retaining intellectual capital refers to retaining organizational memory. This includes keeping good employees and systematically transferring their human capital into structural capital when they must leave. It also includes documentation -- bringing out hidden knowledge, organizing it, and putting it in a form that can be available to others. It also includes embedding knowledge in the organization’s systems and structures.
Communities of practice:
Informal groups bound together by shared expertise and passion for a particular activity or interest.
Organization Culture
• Defining culture
• Does it matter?
• Describing culture
• Acquiring culture
• Changing culture
Defining Culture
• What is it? – “...the shared patterns of thought, belief, feelings, and values that
result from shared experience and common learning”– “system of shared meaning”– “The social glue that holds the organization together”
• Characteristics:– Holistic– Historically determined– Socially constructed (perceptions)– Soft– Difficult to change
Does It Matter?
• Enhances group members’ ability to adapt and survive
• Reduces uncertainty about what to do and how to do it (and thus, reduces anxiety)
• Provides sense of mission
• Strong or widely-held culture may lead to high performance (jury’s out on this one)
Single or Multiple Cultures ?
• Multiple cultures may be a sign of conflict– Mergers– Top-down attempts to “manage” culture
• Subcultures (core culture + adaptations)
• Countercultures
What is Included?
• Common language and conceptual categories
• Group boundaries and criteria for inclusion and exclusion
• Power and status
• Intimacy, friendship, and love
• Rewards and punishments: what is rewarded and punished, as well as what rewards and punishments are
• Ideology and “religion”: that is, how to manage the unmanageable and explain the unexplainable
Recognizing Culture
• Events:– Rites
– Ceremonials
– Rituals
• Communications– Myths
– Sagas
– Legends
– Stories
– Folktales
• Things– Symbols
– Language
– Gestures
– Physical setting
– Artifacts
Really minor distinctions among these
Cultural Dimensions (Hofstede)
• Process vs. results
• Employee vs. job
• Parochial vs. professional
• Open vs. closed
• Loose vs. tight
• Normative vs. pragmatic
Cultural Dimensions (another perspective)
• Innovation and risk-taking
• Attention to detail
• Outcome orientation
• People orientation
• Team orientation
• Aggressiveness
• Stability
Yet Another Perspective….
I. Managing change
II. Achieving goals (how effective)
III. Coordinated teamwork
IV. Customer orientation
V. Cultural strength
Acquiring Culture
• Selection process
• Socialization of new members
• Rites and ceremonies– Rite of passage– Rite of renewal– Rite of integration
Changing Culture
• Can it be changed?– In a new organization: The founder effect– Maybe yes?– Maybe no?
• Should it be changed?– Strong culture can be a barrier to innovation,
growth and change
OB in the Cross-Cultural Context
• Why are cross-cultural issues important?• Growing impact of global business
– New markets– Demand for global services– Low cost manufacturing
• U.S. management practices not necessarily likely to translate to different cultures
• Paradox: may be easier to adjust to a very different culture than to a very similar culture
Why International Management?
• Important to have a global perspective– Overseas suppliers or markets– Low cost production– Emerging markets (Eastern Europe, LDC)– E-business has no borders– Immigrant labor force even in U.S.
• Culture critical to global business, yet hardest to understand– Based on unspoken values and assumptions– Human behavior isn’t logical– But, human behavior is very complex
Approaches to International Business
EthnocentricHome countrymethods are thebest
PolycentricHost countrymethods are thebest
GeocentricUse the bestmethods, no matterwhat the source
Basic Principles of Culture
• What is logical and important in one culture may seem irrational and unimportant in another
• In describing cultures, people tend to stress the differences and overlook the similarities
• Stereotyping may be inevitable for people who lack frequent contact with another culture
• Cultures are not homogenous; differences exist due to gender, age, socioeconomic status, education
• Understanding another culture is a journey, not a goal
Barriers to Cross-Cultural Understanding
• Cultural chauvinism / corporate imperialism / ethnocentrism
• Stereotypes (positive and negative)
• The highly successful organization may find it more difficult to adapt
Cultural Values
• The ethical dilemma• Are there common values?
– Basic idea of social organization, goal orientation
– Personality structure (Big 5)
• What about cultural convergence?– Cultural evolution
– Cultural diffusion
– Immigration and acculturation
What Kinds of Differences Make a Difference?
• Some specific items:– Language– Religion
• Business practices and etiquette– Different laws– Different customs
• Culture in general
Language Issues
• U.S. one of few countries where we don’t learn a second (or a third) language
• Languages learned in school often do not translate to business usage
• Do you try?– Not in France, not unless you can pronounce it right !– Other countries, yes: it’s a gesture of goodwill
• But, even if the language is the same, will we understand? (Britspeak)
Languages of The World
0100200300400500600700800900
1,000
Mill
ions o
f S
peakers
Source:http://www.infoplease.com/
World Religions
Christianity Islam Hindu
Chinese Folk Buddhist Judaism
Other
Source:http://www.infoplease.com/
Catholic Protestant
Orthodox Other
Religious Issues
• Islam:– Ramadan fasting– 5 daily prayers (15 minutes or so), even at work– Modest dress for women (including head scarf)– Friday, not Sunday (noon prayers on Fridays)
Legal Issues
• Sample of Mexican employment laws– Individual employment contracts required– Strict limits on overtime– Unionization by facility– Full pay for workers while on strike– Discrimination covers political doctrine and
social condition
Different Country, Different Customs: Dress and Address
• Dress– “Casual Days” are a U.S. custom– Removing one’s shoes
• Addressing Other People– Herr und Frau, not first names in Germany– Titles (Dr., Professor, “Assistant Vice President”, etc.) very
important everywhere but U.S.
• Business cards essential in Latin America, Europe, Japan
• Personal space: much smaller in Latin America, Spain, Italy
Different Country, Different Customs: Time
• Time– Time fluid in Latin America, Spain, Italy
– Time off work: Germany, France, Scandinavia: 6 weeks vacation, August in the country
– Africa: everyone attends funerals (impact of AIDS)
• Working hours and pace– Europe (esp. Germany) isn’t open 24/7
– Latin America, Middle East, Japan: take time to establish relationship before getting down to business
Different Country, Different Customs: Eating and Drinking
• Drinking– Tea in Japan– Coffee in Egypt– Vodka in Russia– A pint over lunch in the UK
• Dietary Restrictions:– India: no beef– Islamic countries: no pork or alcohol
Perceptions of Corruption
0
2
4
6
8
10
12
Source: Transparency International
Higher score = less corrupt
Economic Freedom
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Singa
pore
Irela
nd USChi
le UK
Finlan
d
Canad
a
Ger
man
yIta
ly
Japa
n
Mex
ico
Ugand
a
Niger
ia
Russia
Nigeria 3.6
Source: Wall Street Journal
Higher score = less freedom
Cultural Dimensions:Hofstede’s Big 4
• Based on survey of IBM employees worldwide• The dimensions
– Collectivism - Individualism
– Power Distance
– Uncertainty Avoidance
– Masculinity / Femininity (quality of life)
• Weaknesses:– Data 20 years old
However, recent research confirms this structure
Change in Cultures
• Hofstede’s data indicates some shift to individualism, but no change in other dimensions
• Disneyland phenomenon– That is, surface indicators change, but meaning does
not
• But….the case of Hong Kong– Management values in Hong Kong intermediate
between PRC and U.S.
– Indication of flexibility / change?
Collectivism - Individualism
• Identification with group vs. identification as an individual
• Collective cultures:– Think in terms of in-groups and out-groups
– Life decisions made by group
– Look after one’s in-group, no matter what
• Individualistic cultures– Concern for self and immediate family
– Individual privacy
• Association with level of economic development
Collectivism - Individualism: Where
• Venezuela• Pakistan• Taiwan• Portugal• Greece• Brazil• India• Japan• Arab countries
• Spain• Israel• Austria• Germany• Norway• France• Canada• Great Britain• U.S.
Collective…………...……Individualistic
Power Distance
• The extent to which a culture accepts that power is distributed unevenly
• High power distance– People have a place in society, high or low– Superiors are to be respected– Less trust and cooperation
• Low power distance– Equal rights for everyone– Hierarchies are established for convenience– Power can be judged to be legitimate or not
Power Distance: Where
• Philippines
• Mexico
• India
• Brazil
• Hong Kong
• France
• Turkey
• Pakistan
• Japan
• Argentina
• U.S
• Canada
• Australia
• Germany
• Sweden
• Ireland
• Denmark
• Israel
High…………………...……...……Low
Uncertainty Avoidance
• The extent to which a society feels threatened by ambiguity and uncertainty
• High uncertainty avoidance– Lots of policies, rules, regulations– Hard work valued, time is money– Acceptance of authority– Conflict avoided
• Low uncertainty avoidance– Look to common sense– Tolerance, constructive conflict– Aggression less accepted
Uncertainty Avoidance: Where
• Uruguay
• Belgium
• Japan
• France
• Mexico
• Israel
• Italy
• Austria
• Arab countries
• Germany
• Switzerland
• East Africa
• Canada
• U.S.
• India
• Great Britain
• Sweden
• Singapore
High…………………...……...……Low
Masculinity / Femininity (Quality of Life)
• The extent to which society values typically “masculine” values, such as assertiveness, and acquisition of things, as opposed to caring for others and quality of life.
• Masculine cultures– Clear gender roles; machismo– Live to work– Ambition, success valued
• Feminine cultures– Sympathy for the unfortunate– Work to live– People are important
Masculinity / Femininity: Where
• Japan
• Italy
• Mexico
• Ireland
• U.S.
• Australia
• Hong Kong
• Arab countries
• Brazil
• Israel
• Indonesia
• France
• Spain
• South Korea
• Portugal
• Finland
• Netherlands
• Sweden
High…………………...……...……Low
…Plus One
• Confucian Work Dynamic• Based on work done in East Asia by “Chinese
Cultural Connection” group• Focus on:
– Long-term– Order– Thrift– Persistence– Respect for tradition
Different Dimensions…Same Result
• Company provided housing, marriage brokers, etc. in Asian countries– Feminine concern for people?– Taking care of the in-group?
• Cooperative labor negotiations– Japan: collective orientation– Netherlands: feminine quality of life
• Economic growth and development– Europe: Protestant Work Ethic (Individualistic, High Power
Distance, Masculine)– Asia: Confucian Work Dynamic
Do National Borders = Cultural Borders?
• Multiple cultures– Canada– Belgium– India
• Culturally homogeneous areas– Scandinavia
• Cultural clusters
Cultural Clusters
Arabs
East-Central Europe
Developing Countries Latins
Anglos
Asians Northern Europe
General Expatriate Issues: The Sojourners
• How many are there?– Nobody really knows– Estimated 350,000 or more (estimate from 1996)
• Who are they?– 87% male– Managers– Sales, technical, professional
• What happens?– Estimated 25% to 50% of assignments fail– Cost…$50,000 and up
Why do Expatriates Fail?
• Family problems (60%)
• Inability to adjust– Lack of flexibility– “Culture shock”
• Lack of sensitivity to host culture
Culture Shock
• An emotional and psychological reaction to the confusion, ambiguity, value conflicts and hidden clashes that occur as a result of fundamentally different ways of perceiving the world and interacting socially between cultures. Disequilibrium
Aspects of Adjustment
• Sociocultural– Social skills needed to operate in different
culture
• Psychological– Well-being, satisfaction– “Culture shock”
What Can Be Done?
• Selection procedures• Organizational support: before, during, and
after assignment• TrainingTraining
– Few U.S. firms train expatriates (30%)– Most European / Asian firms do– Different success rates clearly establish value of
training
Training for Expatriates
• Knowledge-based– Language– Cultural differences
• Cultural sensitivity– General– Specific
• Include spouse and, if possible, family members