Organizational Behavior in Changing Times

This introductory chapter provides an overview of the environment of organizations for these changing times. It begins by providing an overview of behavior in organizations and the interdisciplinary origins of that behavior. Next, it describes the organizational context and presents the six focus organizations (Brinker International, Enron, Harley-Davidson, Hewlett-Packard, Patagonia, and the American Heart Association). Third, it points out the critical role of change and challenge, followed by a discussion of how people learn about organizational behavior. The chapter finishes by relating the various features of the book to learning styles and outlining the plan for the book.
LEARNING OBJECTIVES
After reading this chapter, you should be able to do the following:
1. Define organizational behavior.
2. Identify six interdisciplinary contributions to the study of organizational behavior.
3. Identify the important system components of an organization.
4. Describe the formal and informal elements of an organization.
5. Understand the diversity of organizations in the economy, as exemplified by the six focus organizations.
6. Recognize the challenge of change for organizational behavior.
7. Demonstrate the value of objective knowledge and skill development in the study of organizational behavior.
KEY TERMS
Chapter 1 introduces the following key terms:
organizational behavior
change
challenge
psychology
sociology
engineering
anthropology
management
medicine
task
people
structure
formal organization
informal organization
Hawthorne studies
total quality management (TQM)
objective knowledge
skill development
THE CHAPTER SUMMARIZED
I. THINKING AHEAD: Changing Administrations, Business, the Environment, and
Patagonia
II. HUMAN BEHAVIOR IN ORGANIZATIONS
Chapter one emphasizes the complexity of human behavior and group dynamics in organizations, and notes the impact of organizational variables. It describes human behavior as orderly and logical from the perspective of the organization, but stressful and confusing from the individual’s perspective. A special orientation of this text deals with approaches to learning and application of the skills necessary to become successful organizational members.
A. Understanding Human Behavior
Most of the theories and models of human behavior are categorized as either internal perspectives or external perspectives. Internal perspectives view behavior in terms of thoughts, feelings, past experiences, and needs of the individual. External perspectives explain behavior in terms of external events, consequences of behavior, and environmental forces. Example: "Mary is an excellent employee because she has a high need for achievement." (internal perspective), or in contrast, "Mary is an excellent employee because she is paid extremely well for her work." (external perspective).
B. Interdisciplinary Influences
Because of the complexity of organizations, several fields and disciplines of study have influenced the field of organizational behavior. Significant influences come from psychology, sociology, engineering, anthropology, management, and medicine. Definitions of the disciplines and contributions to organizational behavior are:
Psychology - the science of human behavior - Contributions in motivation, teamwork, power, leadership, training and development, and human resource planning.
Sociology- the science of society - Contributions in group dynamics, roles, norms, and standards of behavior.
Engineering - applied science of energy and matter - Contributions in understanding work design, human productivity and efficiency.
Anthropology - science of human learned behavior – Contributions in understanding patterns of behavior, organizational culture and organization performance.
Management – originally administrative science – Emphasizes design, implementation and management of administrative and organizational systems. First discipline to use organization as unit of analysis.
Medicine - applied science of healing or treatment of diseases - Embraces concerns for the physical and psychological health of individuals in organizations.
III. THE ORGANIZATIONAL CONTEXT
To accurately understand organizational behavior, one must first understand of human behavior and the organizational context – the specific setting in which that behavior occurs.
A. Organizations as Open Systems
Organizations are systems of interacting components that are not limited to business structures, but include religious organizations, military organizations, and even family structures. Leavitt sets forth a basic framework for understanding organizations that emphasizes four major internal components, task, people, technology, and structure. These components, along with the organization's inputs, outputs, and key elements, make up the organizational system. The organizational system, in turn, interacts with its task environment. Every organization has a task that includes its mission and goals, or purpose for existing. The people in the organization are the human resources of the organization. The tools, knowledge, and/or techniques used by the organization constitute its technology, and the organization’s structure includes the design of work, departments, divisions, and the overall organization. Organizations receive inputs, convert them into throughputs, and deliver outputs to customers, consumers and clients in their task environments.
B. The Formal and Informal Organization
Organizations are combinations of formal and informal components. The formal organization includes the legitimate and official portions of organizations, such as policies, titles of organizational members, reporting lines, and performance appraisals. An outgrowth of the Hawthorne studies, the informal organization includes people's feelings, thoughts, and attitudes about their work, as well as their social interactions, and how these factors affect their behavior and performance. Intervention activities designed to improve organizational performance often focus on the informal organization, in the context of the formal organization.
C. Six Focus Companies
You might want to consider dividing the class into six teams and having one team examine each company in further detail for class presentations. This approach also helps students learn the advantages, disadvantages, and difficulties connected with groups and teamwork. The analysis of the group behavior could coincide with Chapter 9, Work Teams and Groups.
1. Brinker International
* Multiconcept casual dining restaurant company
* 60,000 employees in 1,100+ units in 47 states and 20 countries
* More than $1 million contributed to a variety of charities
2. Enron
* Commodities provider (for example, steel, forest products, bandwidth)
* $101 billion in revenues, $67 billion in assets, 20,000 employees
* Named most innovative company in America since mid-1990s
3. Harley-Davidson
* Manufacturer of heavyweight motorcycles, financial services provider
* $3 billion in net sales of more than 200,000 motorcycles per year by 2000
* Harley Owners Group® (H.O.G.®) membership of 600,000 by 2000
4. Hewlett-Packard
* Leader in technology and human resource management practices
* $41 billion per year, seven product lines, 88,500 employees
* First company to formalize telecommuting policies for employees
5. Patagonia
* Privately held outdoor sports product manufacturing and sales firm
* $180 million per year, 1,000 employees
* Environmentally conscious; donated over $15 million to date
6. American Heart Association
* Not-for-profit organization dedicated to reducing disability and death from cardiovascular diseases
* Majority of work accomplished by 4.2 million volunteers
* $1.5 billion contributed to heart and blood vessel research since 1949
IV. THE CHALLENGE OF CHANGE
Competition has increased dramatically since World War II, creating performance and cost pressures that impact peoples’ work behavior. However, the outcomes of these competitive pressures are not inevitably negative. The key is finding a balance between too much change resulting in chaos, and too little change resulting in stagnation.
A. International Competition in Business
The increasing pressure of international competition has made globalization of U.S. corporations a necessity. In addition, it has emphasized the need for employees at all levels to increase their productivity and add more value to the firm, as cost-cutting strategies highlight reductions in job security. Some view change as a threat, others view it as an opportunity. Either way, the substantial impact of these changes on organizational behavior must be considered.
B. Four Themes Related to Change
The following chapter addresses four themes, or driving forces, behind change at work: globalization, technology, diversity, and ethics. Existing theories of motivation, leadership, and group behavior may need to be revised to account for changing demographics.
C. Customer-Focused for High Quality
Quality has become a ‘hot topic’ in organizations when discussing what will make the organization more competitive. Total quality management (TQM) is defined as complete dedication to continuous improvement so that the customers' needs are met and their expectations exceeded.
D. Behavior and Quality at Work
Much of the quality literature is connected with engineering and just-in-time management techniques. However, many studies have verified that total quality improvement is only successful when employees have the skills and authority to respond to customer needs. Consequently, this has direct effects on the behavior of employees. The U.S. has recognized the value of quality and the Department of Commerce sponsors the annual Malcolm Baldrige National Quality Award.
E. Managing Organizational Behavior in Changing Times
Four things make the management of organizational behavior challenging: (1) increasing globalization of organizations' operating territory, (2) increasing diversity of organizational workforces, (3) continuing technological innovation and need for accompanying skill enhancement, and (4) continuing demand for higher levels of moral and ethical behavior at work.
V. LEARNING ABOUT ORGANIZATIONAL BEHAVIOR
Because organizational behavior is a combination of abstract ideas and science, it takes a multidimensional approach to learning. It necessitates a mastery of objective knowledge, which results from research and scholarly activity. In addition, it requires skill development to incorporate the knowledge into applications for individuals. Furthermore, it requires the integration of objective knowledge and skill development to apply them both appropriately in specific organizational settings.
A. Objective Knowledge
Objective knowledge is the cognitive mastery of theories, conceptual models, and research findings developed through basic and applied research. The objective knowledge in each chapter is reflected in the notes used to support the text material. Critical thinking, based on knowledge and understanding, facilitates questioning and responsible application of research.
B. Skill Development
Skill development is the practice of what is known to be successful in the workplace. The AACSB, the accrediting body for business schools, is endorsing the concept that skills can be taught, and that practice improves one's ability as a manager. According to the Department of Labor, skills essential for workplace success include resource management skills, information management skills, personal interaction skills, systems behavior and performance skills, and technology utilization skills. Skill development, as an active component of the learning process, includes the following:
• each student must accept responsibility for his or her own behavior, actions, and learning;
• each student must actively participate in the individual or group structured learning activity; and
• each student must be open to new information, new skills, new ideas, and experimentation.
C. Application of Knowledge and Skills
Experiential learning provides students with the opportunity to practice new approaches of interaction and skills in the safe environment of the classroom, as opposed to a work setting with much more serious consequences. Training enables the learner to use knowledge or skills in specific applications. However, knowing the correct application to a problem setting is not the same as being able to apply the skills necessary to solve the problem. In contrast, the education of experiential learning increases the wealth of knowledge and skills from which the learner can draw in a variety of applications and problem-solving situations.
VI. MANAGERIAL IMPLICATIONS: FOUNDATIONS FOR THE FUTURE
VII. LOOKING BACK: A “Green” Business in More Ways than One
CHAPTER SUMMARY
* Organizational behavior is individual behavior and group dynamics in organizations.
* The disciplines of psychology, sociology, engineering, anthropology, management, and medicine have contributed to the discipline of organizational behavior.
* Organizations are open systems composed of people, structure, and technology committed to a task.
* Organizations have formal and informal elements within them.
* Manufacturing organizations, service organizations, privately owned companies, and nonprofit organizations all contribute to our national well-being.
* The changes and challenges facing managers are driven by international competition and customer demands.
* Learning about organizational behavior requires a mastery of objective knowledge and specific skill development.
REVIEW QUESTIONS: SUGGESTED ANSWERS
1. Define organizational behavior. What is its focus?
Organizational behavior is the study of individual behavior and group dynamics in organizational settings. Organizational behavior research and theories are developed for applications in nonprofit as well as for-profit organizations.
2. Identify six disciplines relevant to the development of organizational behavior. How does each contribute?
Psychology - Contributes to understanding motivation, teamwork, power, leadership, training and development, and human resource planning.
Sociology - Contributes to understanding group dynamics, roles, norms, and standards of behavior.
Engineering - Contributes to understanding work design, human productivity and efficiency. Anthropology - Contributes to understanding patterns of behavior, organizational culture and organization performance.
Management - Emphasizes design, implementation and management of administrative and organizational systems. First discipline to use organization as unit of analysis.
Medicine - Embraces concerns for physical and psychological health of individuals in organizations.
3. What is an organization? What are its four system components? Give an example of each.
An organization is a system of people and technology designed to accomplish a goal. The four components that make up the systems framework are tasks (e.g., mission/purpose), people (e.g., employees), technology (e.g., tools and knowledge), and structure (e.g., work design, organizational design).
4. Briefly describe the elements of the formal and informal organization. Give examples of
each.
Formal elements of an organization include those that are officially recognized and have legitimacy such as job descriptions and policy manuals. Informal elements are unofficial aspects of the organization such as values, attitudes, and group norms.
5. Discuss the six focus organizations used in this book.
Brinker International – A multiconcept casual dining restaurant company with a focus on achievement and concern for the human side of life.
Enron – Commodities provider with over $101 billion in revenues. Named most innovative company in America since mid-1990s.
Harley-Davidson – Manufacturer of heavyweight motorcycles with over $3 billion in net sales and membership of over 600,000 in Harley Owners Group® company sponsored motorcycle club.
Hewlett-Packard – Leader in technology and human resource management practices, with over 88,500 employees. First company to formalize telecommuting policies for its employees.
Patagonia – Privately held outdoor sports product manufacturing and sales firm. Environmentally conscious, having donated over $15 million to date to environmental concerns.
American Heart Association – Not-for-profit organization dedicated to reducing disability and death from cardiovascular diseases, with over 4.2 million volunteers. $1.5 billion contributed to heart and blood vessel research since 1949.
6. Describe how competition and total quality are affecting organizational behavior. Why is managing organizational behavior in changing times challenging?
Dramatic increases in competition since World War II have resulted in the need for organizations to respond by increasing their focus on quality. This emphasis on quality not only reduces error rates in production, but also creates a ripple effect on motivation, leadership, followership, and other aspects of performance in organizations. One of the major outcomes of the quality focus is the emphasis on service provided by organizations.
DISCUSSION AND COMMUNICATION QUESTIONS: SUGGESTED ANSWERS
1. How do the formal aspects of your work environment affect you? What informal aspects of your work environment are important?
Students without work experience may prefer to examine the university for formal and informal environment factors. The formal aspects of the university environment could include the university bulletin, specific requirements for graduation, and enrollment procedures. Informal aspects of the university environment could include the power that the student association has on campus, the norms of dress, and relationships between students and faculty.
2. What is the biggest competitive challenge or change facing the businesses in your industry today? Will that be different in the next five years?
Students without work experience may wish to consider the university setting to consider competitive challenges. This list may have items like tuition, work versus advanced education, job opportunities, or the status of similar universities.
Students with work experience may cite the need to change careers as a reason for returning to complete their undergraduate degrees. This exemplifies the competitiveness of all environments and shows how rapidly individuals must change to remain competitive. Many students returning to school may have considerable experience in a field that is "downsizing".
All businesses face issues regarding increased competition, locally, nationally, and internationally. Most organizations are dealing with potential ramifications of NAFTA agreements, for example, as well as changes in the concepts of loyalty and long-term commitments.
As we continue to solidify the change from a manufacturing society to an information society, the next five years will see the workforce continue to vary, with greater variety in jobs and careers than in any previous generation.
3. Describe the next chief executive of your company and what she or he must do to succeed.
Students may prefer to discuss the university president or dean of the college if they do not have work experience.
One of the discussions that could follow might correlate with current terminology that has become popular, such as visionary leaders, empowered workforces, and teamwork. Successful leaders will also need to recognize and understand the impacts of global competition and economic changes, the need to focus on quality, the importance of a diverse workforce, and the challenge of managing change.
4. Discuss two ways people learn about organizational behavior.
Learning about organizational behavior requires mastery of objective knowledge, which results from research and scholarly activities. Objective knowledge can be learned through training. In addition, it requires skill development and the mastery of abilities that are essential to successful function in organizations. Skill development is best accomplished through experiential learning.
It may be important to point out that taking one approach exclusively is only half a solution to a problem solving technique.
5. Which of the focus companies is your own company most like? Do you work for one of these focus companies? Which company would you most like to work for?
Few students will have work experience with the focus companies. Students who have experience, if they are still employed, may have a tendency to exaggerate their understanding of the company, and are probably very positive.
Students with work experience will probably identify the type of service or product that is provided early in the textbook overview of the companies.
Students may show their inclination for large or small organizations in their answers regarding the company for which they would prefer working. Additionally, they may show an inclination for the major they have selected and what they foresee the company doing with this functional area in their future.
6. Prepare a memo about an organizational change occurring where you work or in your college or university. Write a 100-word description of the change and, using Figure 1.1, identify how it is affecting the people, structure, task, and/or technology of the organization.
This is a good opportunity for students to practice writing in a concise, to the point, style. Be sure that students consider different aspects of people, structure, task, and technology as they develop the memo.
7. Develop an oral presentation about the changes and challenges facing your college or university based on an interview with a faculty member or administrator. Be prepared to describe the changes and challenges. Are these good or bad changes? Why?
Use this as an opportunity to work on oral presentation skills as well as to learn more about changes and challenges facing organizations. Encourage students to give each other feedback on the presentation itself as well as the content of the presentation. Compare and contrast the views of faculty and administrators. Discuss why similarities and differences exist in each group’s view of changes and challenges.
8. Prepare a brief description of a service or manufacturing company, entrepreneurial venture, or nonprofit organization of your choice. Go to the library and read about the organization from several sources, then use these multiple sources to write your description.
Discuss in class the similarities and differences students found between different service, manufacturing, entrepreneurial, or nonprofit organizations.
ETHICS QUESTIONS: SUGGESTED ANSWERS
1. Suppose two people at work have a personal, informal relationship unrelated to the formal structure. Further assume their relationship could affect people in the formal organization. As an aware employee, should you tell the people who are unaware of it and may be affected by the relationship?
The most direct, positive approach would be to discuss the situation with the two individuals involved. Most individuals are aware of the potential ramifications of a relationship at work. Many organizations have policies about dating co-workers, or even dating professionals from competing organizations. Ask students if they believe this is an invasion of privacy. What do they perceive as the differences between dating peers, superiors, or subordinates in the organization?
2. Which disciplines are important in understanding moral and ethical issues for organizations and management?
Many disciplines have contributed to the understanding of ethical issues. Specifically, philosophy has provided the basic premises on ethical stands. Psychology, sociology, and anthropology bring a societal view of what is accepted within a culture. Religion provides a framework for morals within a value or belief system.
3. Suppose you would be able to beat the competition if you presented a prospective customer with negative information about the competition's quality program. Should you provide the information? Further assume that the information relates to safety. Would that make a difference in whether you told the customer?
The primary message in this question is for the students to begin developing their value perspectives on what is "fair" competition. To keep the discussion moving, it may be beneficial for students to tie their opinions to an example. Students will rapidly fall into pro or con categories that might be helpful to list on the board. This is also a good opening project for students to debate their views. They might benefit by having a devil's advocate join their group to argue the opposing position.
4. What are the most sensitive ethical issues in your business, industry, or organization today?
This will vary sometimes depending on the degree of work experience available in the class. It is interesting to divide the class into problems they see as "real experience problems" versus those that are picked up in the popular press.
A good approach to discussing issues can be generated by mentioning films such as The Firm, Trading Places, Glengary GlenRose, and Wall Street. Some of the issues that might be listed are computer espionage, industrial spying, theft, and environmental concerns.
CHALLENGES
1.1 ANALYZE YOUR PERCEPTIONS OF A CHANGE
Discuss how students’ perceptions of change will affect them, given the rapidly changing nature of the business environment they will enter after graduation.
1.2 LEARNING STYLE INVENTORY
Discuss how the variety of methods used to stimulate learning of course material (e.g., lectures, video presentations, case analyses, role-plays, and other experiential exercises) may facilitate learning for individuals with different learning styles.
EXPERIENTIAL EXERCISES
1.1 What’s Changing at Work?
This exercise enlightens students about the changes occurring in organizations. Encourage teams to question each other about the legitimacy of the changes identified. A debate could be set up to generate discussion about whether specific changes are good or bad. Students should consider both the good and the bad impacts of a particular change.
1.2 My Absolute Worst Job
Purpose: To become acquainted with fellow classmates.
Group size: Any number of groups of two.
Occasionally a student will reveal proprietary information about a company. It might be wise to preface the discussion by suggesting that students describe the type of job, rather than mentioning the name of the company.
There are many humorous and bonding examples that have come from this exercise. You might want to tell the students that there have been a variety of answers. Two of the more extreme were:
(1) Digging cemetery plots in August in St. Louis. (No explanation was needed why this was not a "good" job.)
(2) On the committee for a state's inaugural ball, where the governor did not show up until 2:00 a.m.
These are good examples to illustrate that stress is related to behavior and organizational factors, not just the type of job that an individual fulfills.
Students may also benefit from a discussion of elitism during the de-briefing of this exercise.
Students need to be reminded that although they personally may not want to work at McDonald's as a career, there are people who plan on making that organization their career.
We need to understand why other people may find what we think of as a "worst job," their ideal job.
Students may see some positions as "inherently worst jobs." Be sure to clarify that some individuals may take positions to fulfill financial obligations, and find their personal fulfillment through other means. The fact that they do not wish to "self-actualize" at work does not necessarily mean that they are not productive, valuable organizational members.
Recall that not all students will have work experience. It has been my experience that a large number of international students have little work experience because they go directly from secondary schools to college. You may need to make some allowances for these students so they do not feel like they are "in the wrong class because they are inexperienced." They could contribute by mentioning a job they would least like to do and why they would not want to have this position.
ALTERNATIVE EXPERIENTIAL EXERCISE
This exercise will give you an opportunity to discuss the elements of a quality learning environment. The basic question your group will need to answer first is whether good education provides a service or produces a product.
Creating a Quality Learning Environment
The exercise will give you the opportunity to discuss the elements of a quality learning environment. The basic question your group will need to answer first is whether good education provides a service or produces a product. Once you have made that decision, you will be able to address the questions in Step 2 of the exercise.
Step 1. The class will form into groups of approximately six members. Each group elects a spokesperson and answers the following question: Does education provide a service or produce a product? The spokesperson should be prepared to explain the group’s answer to this basic question during the cross-team exchange.
Step 2. Each group is to generate answers to the following questions. The group should spend approximately five minutes on each question and make sure that each person has made a contribution to the group’s response. The spokesperson for each group should be ready to share the group’s collective responses to those three questions.
a. What are the important characteristics of a high-quality learning environment? Members should focus on the physical, social, and psychological characteristics of the environment, as well as on behaviors of the students and instructor.
b. What format results in the best learning? For example, should lectures, debates, discussion, role-playing, and group activities be included? If so, in what proportions?
c. What problems or obstacles have you encountered previously to a high-quality learning environment? These may be related to the subject matter, evaluation processes, workload expectations, or other aspects of the classroom environment.
Step 3. Each group will share the results of its answers to the questions in Steps 1 and 2. Cross-team questions and discussion will follow.
Step 4. Your instructor may allow for a few minutes at the end of the class period to answer questions about his or her thoughts about the course or professional background and experience. Be prepared to ask questions at this time.
EXTRA EXPERIENTIAL EXERCISES
The following alternative exercises to supplement the material in the textbook can be obtained from:
Marcic, Dorothy, Seltzer, Joseph, & Vaill, Peter. Organizational Behavior: Experiences and Cases, 6th Ed. South Western College Publishing Company, 2001.
Assumptions About People and Organizations. p. 1-4. Time: 25-50 minutes
Purpose: To develop awareness about organizational behavior issues.
What Does Learning Really Mean? p. 43-44.
Time: 45-60 minutes.
Purpose: To increase students’ awareness of the process of learning about human
behavior.
CASE QUESTIONS: SUGGESTED ANSWERS
SERVICEMASTER’S VIEW ABOUT THE PURPOSE OF A BUSINESS
1. From your perspective, what role(s) should business play in the contemporary world?
Multiple perspectives exist concerning the possible roles that businesses can assume. Among these perspectives are the following:
• A business is a producer of goods and/or a provider of services.
• A business is an economic organization that generates profits and creates wealth.
• A business is an economic organization that provides employment opportunities.
• A business is an economic organization that is responsible primarily, if not solely, to shareholders.
• A business is an organization with multiple responsibilities and multiple constituencies.
• A business is an instrument of social change.
The students should identify both the roles they think are legitimate for businesses to pursue and the roles they think are not legitimate. They should examine their reasons for these judgments. Also, the students should consider whether the appropriateness of these roles might vary depending on the type of business (e.g., an automobile manufacturer versus a book or magazine publisher versus a pharmaceutical company, and so forth). The short-term and long-term implications of each perspective should be explored as well.
Discussion of this question could also be approached from a stakeholder viewpoint. Students could look through the lens of different stakeholders (e.g., shareholders, employees, customers, suppliers, the community, etc.) and then discuss how each stakeholder would view the different roles of business.
2. What implications do ServiceMaster’s vision, mission, and four objectives have for the attitudes and job behavior of their employees?
ServiceMaster’s vision is: “To be an ever expanding and vital market vehicle for use by God to work in the lives of people as they serve and contribute to others.” Its mission statement is: “To create and build value for Shareholders, Customers, and Employees by providing a wide range of services to homes, institutions, business, and industry, both domestically and internationally within the framework of our values.” ServiceMaster’s objectives, beginning with the top priority, are:
• To honor God in all we do.
• To help people develop.
• To pursue excellence.
• To grow profitably.
The reference to God in both the vision statement and the first objective provides clear, if not compelling, direction for employees with regard to attitudes and behavior. This faith-oriented value is also reinforced with the mission statement’s emphasis on the company’s values. In addition, both the order of the objectives and their content have powerful implications for employees’ attitudes and work behavior.
The vision, mission, and objectives help to foster and reinforce employee attitudes that focus on valuing people and encouraging respect and dignity for everyone. Attitudes that support fair and just treatment are encouraged as well. Employees also would be expected to behave in ways that are consistent with these attitudes.
Putting people before profits communicates the worth of employees to the organization. Putting employees first reflects the realization that people are assets who have a significant effect on the corporate bottom line.
3. Would you like to work for a company like ServiceMaster? Why or why not?
This question provides an opportunity for students to examine their personal values regarding the type of organization for which they would like to work.

 

                                                   CHAPTER 1

           ORGANIZATIONAL BEHAVIOR IN CHANGING TIMES

MULTIPLE CHOICE

HUMAN BEHAVIOR IN ORGANIZATIONS

1.             The study of organizational behavior is concerned with:
A.      psychosocial, interpersonal, and organizational structure
B.      psychosocial, interpersonal, and work design
C.      interpersonal, group dynamics in organizations, and work design
D.      psychosocial, interpersonal, and group dynamics in organizations
ANSWER: D, easy, K&C, pg. 4

2.             The study of individual behavior and group dynamics in organizational settings describes the content of study in:
A.      organization theory
B.      organization design
C.      organizational behavior
D.      organizational development
ANSWER: C, medium, K&C, pg. 4

3.             Which organizational variable(s) is (are) important to the study of group dynamics?
A.      organization structure
B.      role conflict & ambiguity
C.      job task
D.      hierarchy of authority
ANSWER: B, medium, K&C, pg. 8

4.             The description of an organization as clockworks in which human behavior is logical and rational would come from which level within the organization?
A.      individual level
B.      group or department level
C.      organizational level
D.      internal level
ANSWER: C, medium, synthesis & evaluation, pg. 4

5.             The description of an organization as more like a snake pit with daily conflict, distress, and struggle would come from which level within the organization?
A.      group level
B.      organizational level
C.      individual level
D.      department level
ANSWER: C, medium, synthesis & evaluation, pg. 4

 

 

6.             The FAA’s need to address change in air travel due to the tragic events of September 11, 2001 reflect which metaphor of an organization?
A.      virtual
B.      clockwork
C.      snake pit
D.      free flight
ANSWER: C, medium, K&C, PED-OR, pg. 6

7.             The snake pit metaphor of organizations would be reflected by which of the following?
A.      the events of September 11, 2001
B.      free flight
C.      the increase in the number of passengers and the drop in airfares prior to 9/11/2001
D.      the FAA’s relatively poor safety record since the deregulation of the industry in 1979
ANSWER: A, medium, K&C, PED-OR, pg. 6

Understanding Human Behavior

8.             An internal perspective of human behavior tends to explain a person's actions in terms of:
A.      job demands
B.      personal value system
C.      task design
D.      organization communication channels
ANSWER: B, medium, K&C, pg. 6

9.             All of the following are internal behavioral processes except:
A.      cognition
B.      perceiving
C.      judging
D.      leading
ANSWER: D, medium, analysis, pg. 6

10.          The internal and external perspectives offer:
A.      complementary explanations for human behavior
B.      similar explanations for human behavior
C.      conflicting explanations for human behavior
D.      alternative explanations for human behavior
ANSWER: D, hard, synthesis & evaluation, pg. 6

11.          When a manager states, "Mary is an outstanding employee because she has a high need for achievement,” the manager is using which explanation for Mary's behavior?
A.      internal
B.      external
C.      interactive
D.      cultural
ANSWER: A, medium, appl., pg. 6

 

12.          When Mary's manager states, "Mary is an outstanding employee because she is paid extremely well", the manager is using which perspective for Mary’s behavior?
A.      internal
B.      external
C.      interactive
D.      cultural
ANSWER: B, medium, appl., pg. 6

13.          Kurt Lewin may have best captured alternative explanations for human behavior when he state behavior is a function of:
A.      the individual personality and preferences for leadership style
B.      the consequences of compliant and deviant behavior within social groups
C.      culture and the systemic properties of the organization
D.      the person and the environment
ANSWER: D, medium, K&C, pg. 6

Interdisciplinary Influences

14.          The science of human behavior and individual differences is:
A.      anthropology
B.      sociology
C.      engineering
D.      psychology
ANSWER: D, easy, K&C, pg. 6

15.          Culture and the study of learned behavior comprise the domain of:
A.      management
B.      anthropology
C.      sociology
D.      psychology
ANSWER: B, easy, K&C, pg. 7

16.          When Black & Decker placed a special emphasis on human productivity and efficiency through the application of organizational goal setting and differential piece rate systems, they were borrowing ideas from the discipline of:
A.      psychology
B.      anthropology
C.      sociology
D.      engineering
ANSWER: D, medium, appl., pg. 7

17.          Research focusing on the effects of efficient cultures on organizational performance and how pathological personalities may lead to dysfunctional cultures highlights which disciplines contribution to organizational behavior?
A.      psychology
B.      sociology
C.      anthropology
D.      medicine
ANSWER: B, medium, appl., pg. 7
18.          The first discipline to take the modern corporation as the unit of analysis and emphasize the design, implementation, and coordination of various administrative and organization systems was:
A.      psychology
B.      sociology
C.      management
D.      anthropology
ANSWER: C, medium, appl., pg. 7

19.          The recent emphasis on sources and treatment of hypertension with respect to occupational health and well being is an example of a contribution from which discipline?
A.      medicine
B.      psychology
C.      sociology
D.      management
ANSWER: A, medium, appl., pg.7

THE ORGANIZATIONAL CONTEXT

20.          The specific setting within which organizational behavior is enacted would be called the:
A.      situation
B.      external environment
C.      organizational context
D.      group
ANSWER: C, easy, K&C, pg. 8

Organizations as Open Systems

21.          Which of the following is not an internal component of a work organization?
A.      structure
B.      task
C.      technology
D.      product market
ANSWER: D, easy, K&C, pg. 9

22.          The task of an organization is reflected in its:
A.      human resources
B.      mission or purpose
C.      input materials
D.      structure
ANSWER: B, medium, K&C, pg. 9

23.          In an open system the transformation or conversion of inputs to outputs is accomplished with:
A.      technology
B.      task structure
C.      borrowed financial resources
D.      robots
ANSWER: A, medium, K&C, pg. 9

24.          The core technology of a university is its:
A.      student brain power
B.      library, laboratories, classrooms, and computer equipment
C.      registration and billing systems
D.      athletic programs
ANSWER: B, medium, appl., pg. 9

25.          A federal regulatory agency can be considered part of an organization's:
A.      formal structure
B.      labor market
C.      external task environment
D.      transformation technology
ANSWER: C, medium, appl., pg. 9

26.          The use of a wide range of tools, knowledge, and/or techniques used to transform inputs into outputs is called:
A.      task environment
B.      structure
C.      the mission
D.      the technology
ANSWER: D, medium, K&C, pg. 9

27.          An organization’s suppliers, customers, and federal regulators is called the:
A.      task environment
B.      market
C.      political economy
D.      general environment
ANSWER: A, medium, K&C, pg. 10

28.          The human, informational, material, and financial resources of an organization system would be considered:
A.      inputs
B.      throughputs
C.      the transformation
D.      outputs
ANSWER: A, medium, K&C, pg. 10

The Formal And Informal Organization

29.          The beliefs and assumptions about people, work, and the organization best reflects the:
A.      formal organization
B.      overt part of an organization
C.      informal organization
D.      social surface
ANSWER: C, easy, K&C, pg. 10

30.          All of the following are aspects of the formal organization except:
A.      job descriptions
B.      the friendship/relationship between two employees
C.      the hierarchical superior-subordinate authority relationship
D.      the workflow sequence between two departments
ANSWER: B, easy, synthesis & evaluation, pg. 10

31.          The Hawthorne Studies uncovered the importance of:
A.      the workflow and scheduling of work for production efficiency
B.      delegating authority downward and throughout the organization
C.      the informal organization and its impact on productivity
D.      viewing an organization as clockwork
ANSWER: C, medium, K&C, pg. 11

Six Focus Organizations

32.          Enron represents which of following sectors?
A.      the manufacturing sector
B.      the government sector
C.      the service sector
D.      the non-profit sector
ANSWER: C, medium, appl., pg. 13

33.          Harley-Davidson best reflects which sector of the U.S. economy?
A.      service sector
B.      throughput sector
C.      manufacturing sector
D.      transformation sector
ANSWER: C, medium, appl., pg. 13

34.          The largest sector of the 9.3 trillion dollar U.S. economy is the:
A.      manufacturing nondurable goods
B.      manufacturing durable goods
C.      service sector
D.      government purchases (local, state, federal)
ANSWER: C, medium, K&C, pg. 11

35.          Which of the following best describes the American Heart Association?
A.      not-for-profit
B.      manufacturing
C.      publicly-owned entrepreneurial
D.      privately-held entrepreneurial
ANSWER: A, medium, K&C, pg. 15

THE CHALLENGE OF CHANGE

36.          A leading force currently driving change at work is:
A.      global competition
B.      politics
C.      quality
D.      process management
ANSWER: A, easy, K&C, pg. 15

International Competition In Business

37.          Success in international competition requires organizations to be responsive to:
A.      changes in demography
B.      changes in the marketplace, ethnic, religious and gender diversity
C.      changes in information technology
D.      changes in wage structure
ANSWER: B, hard, K&C, pg. 17

Four Themes Related to Change

38.          The four main driving forces creating and shaping changes at work include:
A.      globalization, demography, diversity, ethics
B.      globalization, technology, religiosity, ethics
C.      globalization, technology, diversity, employee attitudes
D.      globalization, technology, diversity, ethics
ANSWER: D, medium, K&C, pg. 17

Customer-Focused for High Quality

39.          The study reported in your textbook where a positive relationship was found between TQM practices and financial performance also found that this relationship was influenced by which of the two following variables?
A.      organizational culture and CEO leadership
B.      stronger structural controls and structural exploration as it relates to implementation of TQM programs
C.      reward systems and quality circles
D.      high degrees of self-empowerment and participation
ANSWER: B, medium, K&C, PED-SF, pg. 18

40.          A significant aspect of total quality management is:
A.      employee driven suggestion systems
B.      continuous improvement and attention to customer needs
C.      the use of computers
D.      the suboptimization of resource allocation
ANSWER: B, medium, K&C, pg. 18

Behavior and Quality at Work

41.          Which of the following statements is most correct with respect to total quality management?
A.      Quality control is the responsibility of specialists who randomly perform quality checks on items as they leave the assembly line.
B.      Quality is a customer-oriented philosophy with important implications for virtually all aspects of organizational behavior.
C.      Quality is an employee-oriented philosophy required by quality engineers.
D.      Quality is machine driven with quality improvements resulting from use of robotic equipment.
ANSWER: B, medium, K&C, pg. 17

Managing Organizational Behavior in Changing Times

42.          Globalization, workforce diversity, technological innovation and __________  are four interrelated themes of importance for managing organizational behavior into the 21st Century.
A.      customer satisfaction
B.      employee compensation
C.      moral and ethical behavior
D.      job analysis
ANSWER: C, medium, analysis, pg. 19

LEARNING ABOUT ORGANIZATIONAL BEHAVIOR

43.          Learning about organizational behavior can best be described as a(n):
A.      mastery of basic objective knowledge
B.      development of specific skills and abilities
C.      application of knowledge and skills
D.      multidimensional activity
ANSWER: D, medium, K&C, pg. 19

Objective Knowledge

44.          A questioning, probing attitude is at the core of:
A.      job performance
B.      organizational reality
C.      critical thinking
D.      subjective knowledge
ANSWER: C, hard, synthesis & evaluation, pg. 22

45.          Objective knowledge, in any field of study, is developed through:
A.      experience
B.      past practices and training
C.      a review of the relevant literature
D.      basic and applied research
ANSWER: D, medium, K&C, pg. 22

Skill Development

46.          Acquisition of objective knowledge and skill development can occur interactively through:
A.      rote memorization
B.      experiential learning
C.      reading
D.      imitating the successful behavior of others
ANSWER: B, medium, K&C, pg. 22

47.          As an effective learner of organizational behavior knowledge and skills, the student:
A.      must rely primarily on the group process
B.      should not experiment with new ideas and information
C.      must passively accept the direction of others with more knowledge
D.      must accept responsibility for his or her own behavior, actions, and learning
ANSWER: D, hard, appl., pg. 23

48.          Which of the following set of functional skills have been identified by the U.S. Department of Labor as necessary for success in today's workplace?
A.      resource management, information management, and personal interaction skills
B.      personal interaction, critical thinking, and conflict management
C.      system behavior and performance, resource management, and critical thinking skills
D.      critical thinking, conflict management, and information management skills
ANSWER: A, hard, K&C, pg. 22

49.          Developing skills is different from acquiring objective knowledge because it requires:
A.      empirical testing
B.      induction
C.      deduction
D.      structured practice and feedback
ANSWER: D, medium, analysis, pg. 22

TRUE-FALSE QUESTIONS

1.             Change is the biggest challenge on American managers’ minds today.
ANSWER: True, pg. 3

2.             Role set, norms, intra- and intergroup behavioral dynamics are key aspects of the study and field of psychology.
ANSWER: False, pg. 6

3.             The study of individual differences is the main focus of anthropology.
ANSWER: False, pg. 7

4.             Management involves the coordination of activities and human resources for the accomplishment of organization goals.
ANSWER: True, pg. 7

5.             A complete understanding of organizational behavior requires only an understanding of the organizational context within which human behavior is acted out.
ANSWER: False, pg. 8

6.             A business firm's interaction with the environment is a characteristic of an open system.
ANSWER: True, pg. 8

7.             The informal organization is the unofficial part of the system.
ANSWER: True, pg. 10

8.             The hierarchy of authority or chain of command is an important feature of the informal organization.
ANSWER: False, pg. 10

9.             Global competition is a leading force driving change at work.
ANSWER: True, pg. 15

10.          Total quality management is an employee-driven philosophy of management.
ANSWER: False, pg. 17

11.          Total quality management is a total dedication to continuous improvement.
ANSWER: True, pg. 17

12.          The study and management of organizational behavior is primarily an art rather than a science.
ANSWER: False, pg. 19

13.          Skill development is facilitated by structured practice and feedback.
ANSWER: True, pg. 22

14.          Organizational behavior is an applied discipline where a student is trained in organizational behavior principles.
ANSWER: False, pg. 23

MATCHING QUESTIONS

1.             Task                                       A. Economic activity outside of the firm.

                Open System                        B. An organization's primary concern: goal, and/or reason for existence.

                Environment                        C. Tools, equipment, and procedures for producing output.

                Technology                           D. An organization that receives inputs from the environment and releases outputs to the environment.

                Organizational                     E. The result of an organization's conversion process.
Context

                Output                                   F. The specific setting within which organizational behavior is enacted.

                ANSWER: B, D, A, C, F, E
2.             Management                        A. The applied science of energy and matter.

                Engineering                           B. The science of human behavior.

                Psychology                           C. The science of human learned behavior and study of organizational culture.

                Sociology                              D. A discipline concerned with the study of organizations.

                Anthropology                       E. The science of society and study of groups.

                ANSWER: D, A, B, E, C

3.             Feedback                              A. Dedication to continuous improvement and meeting customer demands.

                Skill                                        B. Research results or scientific information.
Development

                Objective                               C. Learning and mastery of physical and social abilities.
Knowledge

                Total Quality                        D. The primary concern for managers in the 1990s.

                Change                                  E. Knowledge of results.

                ANSWER: E, C, B, A, D

4.             Brinker                                  A. Once a leader in electricity, natural gas, and communications whose business
International                        was difficult to define and has destroyed more value than any organization to date.

                Harley-Davidson                 B. A large public service and manufacturing organization emphasizing e-services and the manufacture of printing and digital imaging products.

                Enron                                     C. A manufacturing organization with over 3 billion in annual sales and people as the company’s only sustainable competitive advantage.

                American Heart                   D. An organization whose stated purpose is to inspire and implement solutions to
Association                           the environmental crisis.

                Hewlett-Packard                  E. The best example of a non-profit organization.

                Patagonia                              F. An organization who provides non-durable goods in the form of a portfolio of restaurants based on a multiconcept casual dining market approach.

                ANSWER: F, C, A, E, B, D

ESSAY QUESTIONS

1.             Explain why it is important to study organizational behavior.

                ANSWER: Of the four principal ingredients (task, technology, structure, and people) of an organization, employees are the most difficult to manage and change.  Individuals display numerous differences, group norms can influence productivity, and leaders can fail.  Motivation, leadership, and group dynamics are very difficult to understand.  Greater understanding of these behavioral phenomena can enhance one's managerial effectiveness. (pg. 7-9)

2.             Provide an example of a business firm as an open system.

                ANSWER: An open system gathers or receives inputs from its environment, transforms these inputs through application of technology, and provides a finished product to the environment or market place. A Heinz food processing plant purchases raw tomatoes, onions, and other vegetables from the environment.  It then mixes and cooks these ingredients and converts them into catsup.  The catsup is bottled, packaged, and shipped to the marketplace. (pg. 9)

3.             Distinguish between informal and formal organizations. Are they complementary or contradictory?

                ANSWER: The formal organization consists of positions, departments, organization levels, and the authority and lines of communication that link organization parts and people together.  The personal relationships and friendships between two or more organizational members constitute an informal organization.  The formal and informal can coexist, be mutually reinforcing, or in conflict.  The task of the manager is to be aware of the informal and try to manage the situation so that the informal supports and furthers the goals of the formal organization. (pg. 11)

4.             Identify the four reasons managing organizational behavior will be challenging in the 1990s.

                ANSWER: They are (1) the increasing globalization of the marketplace, (2) greater workforce diversity, (3) continuing technological development and innovation, and (4) the continuing concern and demand for higher moral and ethical behavior at work. (pg. 20)

5.             What is the difference between objective knowledge and skill knowledge?

                ANSWER: Objective knowledge is the information gained from research and scholarly activity.  Answers to scientific questions resulting from research studies form the knowledge base for effectively managing organizations.  Skill development refers to the practice and feedback associated with mastering behavioral abilities necessary for successful management. (pg. 21)

6.             In addition to basic enabling skills, the Department of Labor has identified five essential functional skills necessary to be successful in the workplace now and in the future.  Briefly identify these skills.

                ANSWER: The essential skills include (1) resource management skills such as time management; (2) information management skills such as data interpretation; (3) personal interaction skills, such as teamwork; (4) systems behavior and performance skills, such as cause-effect relationships; and (5) technology utilization skills, such as troubleshooting skills. (pg. 22)

7.             Briefly identify and discuss the major challenge to managers in today’s "market or environment.”

                ANSWER: Change is the biggest challenge on American managers’ minds.  Changing realities in the workplace are challenging managers, employees, and executives alike to learn new skills and to adapt themselves to new work environments.  Change becomes its own challenge and where change is especially rapid, organizations must be responsive and flexible. (pg. 15)

8.             Briefly identify the major drivers of change in the current work environment.

                ANSWER:  Change is driven by (1) global markets, (2) evolving customer needs, (3) breakthrough technological developments, and (4) competition (international).  (pg. 15-18)