The Effects of Moral Responsibility on Organizational Behavior                        Luvon Hudson                North Ca...
AbstractTo think that all organizations behave morally responsible would be naïve due to the manyimplications present in t...
Introduction       The phrase “moral collapse” brings a long list to mind involving well-known cases ofunethical behaviors...
service settings. This element of human resources development stems from the field of appliedbehavior and involves both th...
moral standards to be practiced by all from the top down. Therefore, it is important for leadershipto take a stance in set...
Trevino (2010) poses a very similar question that aided in crafting this scholarly reviewasking, “Why do people do bad thi...
Tangible Benefits to Organizations,” notes that good corporate citizenship improves employeerelations and results in human...
based on customer satisfaction and loyalty. This employee loyalty is important in the delivery ofcustomer value. Home Depo...
According to social identity theory, organizational identification provides the socialcontext for how people behave. Emplo...
who behave in similar manners. To support this statement, an article found in the Journal ofBusiness Ethics, indicates tha...
(McLean, 2001, p. 220). It would be ideal to follow the Golden Rule’s guidelines of, “do untoothers as we would have them ...
of the consequences. This can be seen in the all too familiar case involving the Enron scandaland whistleblower Sherron Wa...
officers in place to govern and ensure that employees are exhibiting ethical actions whileperforming in their roles. Garav...
reinforce positive behaviors; however this tactic should be used with precaution. The basis foroperant conditioning involv...
References(2011). Ethisphere. Retrieved on November 30, 2011 from http://ethisphere.com/past-wme-       honorees/wme2011/A...
Gentile, M. C. (2010). Keeping your colleagues honest. Harvard Business Review, 88 (3), p.       114-117.Hatcher, T. (2002...
ethics, 11 (7), p. 505.Trevino, L. K. (2010). Navigating business ethics: Smoother sailing ahead. Business Ethics       Qu...
Diversity’s Effect on Organizational Behavior:Managing Workplace Diversity in the 21st Century                 Luvon Hudso...
AbstractThis scholarly review contributes exemplar’s knowledge and findings about the contextual orindividual factors that...
Introduction       As the workforce changes, there is an increasing demand for companies and managers tobe more sensitive ...
requires the HRD practitioner to understand diversity, how to arrive at the most optimalbehaviors when there are variances...
organization’s full potential can be reached through the variety of components presented withinthe environment. The articl...
well with employees of diverse backgrounds, show a commitment to a workforce representativeof all society, and establish p...
feelings" about diversity in general, 2) Behavioral Reactions: What a person does (or intends todo) in response to diversi...
their behavior to satisfy self-images of being affiliated with groups or the organization. Choi andRainey (2010) have the ...
Employee Development       Today’s workforce requires constant enhancement of knowledge, abilities, and skills.Diverse env...
Technology       Alongside of employee development being a focal area that HRD professionals have toaddress, the impact of...
dealing with international workforces, such as language barriers, cultural relationshipdifferences, and time zone differen...
a multi-culturally diverse workplace. This means accepting the range of variations amongpersons by virtue of their age, ed...
Performance Relationship Map (PRM) tool as a means to address gaps that hinder successfulbusiness and performance outcomes...
members develop and express their uniqueness (individuation) and at the same time are teamplayers (integration). It is a s...
business and performance issues to uncover the possibilities of all workforce members throughorganizational development th...
Kormanik, M. B. and Rajan, H. C. (2010). Implications for diversity in the HRD curriculum       drawn from current organiz...
Office of University Controller – Submission to NASBA                   Luvon Hudson                 Melissa McDonald     ...
ContentsMcLeod, S. (2007). Skinner - Operant Conditioning. Simply Psychology. RetrievedNovember .............................
Web-based Employee Survey....................................................................................................
Introduction         The Office of University Controller, of the University of Colorado, has recentlysubmitted an applicat...
University’s financial records, and Financial and Reporting Systems maintains theUniversity’s Finance and Reporting System...
•   Finance and Reporting Training (University of Colorado Springs Only)   •   Procurement TrainingOnline Training:   •   ...
scheduled program. In the case of an altered or cancelled program, all program participants willbe notified immediately. W...
To ensure that each course uses activities, materials, and delivery systems that arecurrent, technically accurate, and eff...
o Appropriate and inappropriate uses of resourcesCourse Outline:   A. Introduction         a. Instructor         b. Course...
G. Consequences of Fiscal Misconduct             a. Enron             b. Arthur Andersen             c. Education Commissi...
Current and Upcoming Events                                                                 -   Cognos Reporting System   ...
Need Help? Have Questions?       Contact the CPE Program Manager:       Lisa Vallad, lisa.vallad@cu.edu, 303.837.2156.Sect...
Appendix A: National Association of State Boards of Accountancy (NASBA)Sponsor Agreement
Appendix B: Evaluation Instrument
Appendix C: Certificate of Completion                                     University of Colorado                          ...
Knowledge Management and Business PerformanceA Literature Review on the Impact of Intellectual Capital and Organizational ...
Abstract       This literature review is a critical analysis on a compilation of guiding theories,viewpoints, and perspect...
Introduction       The phrase “knowledge is power” holds a tremendous amount of weight when looking atthe profitability of...
Methods       The methods for conducting the literature review was based on examining a selection ofarticles that dealt sp...
pertaining to conceptual, functional, and physical models for knowledge classificationcomponents within those systems; how...
from but still poses the question of whether or not it can contribute towards organizations inbecoming more profitable mer...
the term is to be looked at broadly in context as the process through which organizationsgenerate value from their intelle...
process of locating, organizing, transferring, and using the information and expertise moreefficiently within an organizat...
Frameworks and Guiding Theories       The research of literature involving a full analysis of KM models and the relationsh...
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  1. 1. The Effects of Moral Responsibility on Organizational Behavior Luvon Hudson North Carolina State University
  2. 2. AbstractTo think that all organizations behave morally responsible would be naïve due to the manyimplications present in today’s 21st century workplace. This scholarly review contributesexemplar’s knowledge and findings about the contextual or individual factors that influenceethical actions, and incorporates theoretical and psychological aspects to understand thecorrelation between moral responsibility and organizational behavior. The review presents thevarious literary works’ viewpoints on the direct impact that ethics have on organizationalbehavior, implications for the HRD practitioner, and suggestions on how to bridge the gapbetween ethical decision-making and organizational behavior.
  3. 3. Introduction The phrase “moral collapse” brings a long list to mind involving well-known cases ofunethical behaviors that have been seen in corporations to include American Airlines (deferringaircraft maintenance), Halliburton (overcharging government contracts), Tyco International(executive theft), Bayer (links to Josef Mengele’s Auschwitz human experiments) andunfortunately, the list goes on. The effects of organizations acting morally irresponsible haveprompted the need to address the correlation between what effect this has on the behaviors ofemployees. Hiriyappa (2009) provides one of the many definitions for Organizational Behavior(OB) as the study and application of knowledge about how people, individuals, and groups act inorganizations. As an HRD professional, it is important to ask what impact corporate moralresponsibilities have on employee behavior, what literature has to say about the relationshipbetween organizational behavior and acting socially responsible, and what are the commonimplications for Human Resource Development (HRD) professionals who work in corporationsthat face ethical dilemmas. These questions will be addressed in this paper, and a discussioninvolving the impact that moral responsibility has on the actions of employees will be examinedto see how exemplars link social consciousness to decision-making within organizations. Thepaper concludes with a push for the HRD professional to remain firm as they define sociallyresponsible actions, uphold expectations, and promote ethical policies and procedures to improvesocial welfare for organizations. Organizational Behavior Austin, Casella, and Wilder (2009) also define Organizational Behavior as the applicationof behavioral principles to individuals and groups in business, industry, government, and human
  4. 4. service settings. This element of human resources development stems from the field of appliedbehavior and involves both the application and production of socially significant change inhuman behavior (Austin et al., 2009, p. 202). Early studies conducted by OB behaviorists foundthat human behavior could be changed for the better with the use of operant principles (Austin etal., 2009, p. 203). The issue with operant principles is that they hold subjectivity on what isdeemed to be morally responsible in today’s society. Therefore, OB has been stretched to understand what influences moral or immoraldecision making in organizations have on the behaviors of employees. The HRD professionalcan use OB applications by engaging components of behavioral analysis to isolate, analyze, andmodify societal events that have direct impact on how employees behave within theenvironment. Business Ethics Business ethics can be viewed in terms of corporate social responsibility (CSR), Hatcher(2002) provides one of the many definitions for CSR as being the ethical responsibilitiesbusiness has to society that extend to behaviors and outcomes beyond what are required by lawsand regulations (Hatcher, 2002, p. 98). Brenkert (2010) denotes the purpose of business ethics asproviding ethical insight and guidance to individuals in business, businesses as organizations,and to society (Brenkert, 2010, p. 703). This guidance is necessary as there is a directrelationship between the organization and the behaviors of those within it, which creates the needto set standards on acting socially responsible. Organizations should incorporate trainingfocused on providing ethical foundations and frameworks for employees so that the most morallyresponsible decisions are made when faced with ethical dilemmas. The results from ethicstraining could vastly improve clarity in understanding what the organization upholds as being the
  5. 5. moral standards to be practiced by all from the top down. Therefore, it is important for leadershipto take a stance in setting the directives for OB within the workplace. Avery and Palanskiindicate that both the traits and behaviors of the leader’s proactive behaviors can encourageethical action of followers (Avery & Palanski, 2011, p. 573). Modeling leaders within theorganization is not implicitly or explicitly the sole means for ensuring that ethical decisionmaking will be exhibited by all individuals and theorists have put the culpability on theindividual level. There is a complex relationship between social structure and individual actionthat is central to moral collapse (and) demands an approach that integrates both the broadersocial context in which it occurs and the beliefs and choices of the individuals involved(Lawrence & Shadnam, 2011, p. 380). This suggests a level of autonomy where each employeeultimately dictates how to behave within the environment. There are many components involvedthat impact employees’ behaviors when faced with ethical dilemmas and therefore, the focusshould shift to examining factors that attribute directly to what produces ethical and unethicalbehavior at the individual levels as well. Ethics’ Impact on Organizational Behavior When the ethical climate lacks clarity or fails to be positive, there is little doubt that theresult will often yield in ethical behavior. It is critical for organizations to set morallyresponsible standards in place to ensure the best behaviors within the organization will exist.After all, positive or negative behaviors have to start from somewhere. Could organizationalbehavior (ethical or unethical) stem from theoretical approaches involving human interactionsthat result from how people socialize within organizations?Positive Behaviors
  6. 6. Trevino (2010) poses a very similar question that aided in crafting this scholarly reviewasking, “Why do people do bad things to other people? And, why do some people doextraordinarily courageous things? People are complex beings in general and it becomesdifficult to understand why some behaviors are chosen over others which yield to the complexityof linking explicit “causes-and-effect” about why behaviors, moral or immoral, are acted uponwithin organizations. Ethisphere, a research-based firm dedicated to the creation, advancement,and sharing of best practices in business ethics, corporate social responsibility, anti-corruptionand sustainability reports each year the top corporations that have exhibited positive ethicalactions both internally and externally using the criteria of companies that truly go beyondmaking statements about doing business “ethically” and translating those words into action. Thehonorees each year are awarded the title based on leadership sustaining ethical actions in theirbusiness practices. Corporations that hit the 2011 list included Gap, UPS, Adidas, Ford MotorCompany, Ebay, Johnson Controls, Microsoft, and Whole Food Markets among many others thatmade the 110 honoree list (http://ethisphere.com/past-wme-honorees/wme2011/). These firmshold morally responsible behavior very high on their list suggesting the importance of actingethical as well as presenting an outward reputation that could aid tremendously for establishingethical climates and successful business outcomes. Setting positive ethical climates have a direct effect on how individuals within theorganization exhibit morally responsible behaviors. This can be seen in cases in which theorganization chooses to do the right thing out of being socially responsible or relate ethicalactions to improving business functions. The correlation between positive business ethics andorganizational behavior provides benefits for all involved. Many studies show concrete benefitsresulting from various aspects of ethical behavior. Verschoor’s article, “Ethical Behavior Brings
  7. 7. Tangible Benefits to Organizations,” notes that good corporate citizenship improves employeerelations and results in human resources benefits. The factors identified include more effectiverecruitment, higher retention, better morale, loyalty, motivation, and productivity. Verschoor(2001) also indicates that good corporate citizenship enhances business performance, particularlyimproves competitive advantage, higher financial returns, and better reputation(http://www.allbusiness.com). A supporting example of promoting ethical behaviors in organizations is found in theJournal of Business & Economics Research that showcases Waste Management, Inc. a solidwaste and disposal company that was fined several years ago $2 million for antitrust violationsand another $12 million for violation of pollution ordinances. Waste Management is workinghard to establish a culture of ethical business behaviors. The company developed a code of ethicsand established training programs to ensure employees understood exactly what the companyexpected of them when faced with ethical issues. According to the article, employees arecontinually reminded that the characteristics of fairness, honesty, integrity, and trust lead to amarketplace reputation of delivering high levels of value to customers. Because of this reputationthe company has resulted in gaining a high level of satisfaction and loyalty among thecompany’s customers (Matulich & McMurrian, 2006, p. 17). Another socially responsible instance that spawned internal positive employee behaviorwas shown in Home Depot’s actions. Home Depot is the world largest retailer of do-it-yourselfproducts for the home. The company has been commended for its ethics training workshops foremployees. A key component of the company’s business philosophy is that when “employeesbelieve in the ethical correctness of their workplace arrangements, their employer gains theirsupport and loyalty.” This employee loyalty has translated into high levels of customer value
  8. 8. based on customer satisfaction and loyalty. This employee loyalty is important in the delivery ofcustomer value. Home Depot is proof that when employees value the relationship with anorganization, the employee loyalty that results is passed on to customers because of morepositive relationships between employees and customer (Matulich & McMurrian, 2006, p. 17). Ultimately the actions in both examples showcase the organizations’ concerns forpromoting effective employee-organization relationships by linking ethical corporate behavior topositive business outcomes. Verschoor, Matulich, and McMurrian indicate the impact that settingethical climates have on prompting positive behaviors within organizations; however, not allcorporate entities think there is a need to establish parameters around acting morally responsiblenor do all individuals react positively when faced with solidarity or decide to act autonomouslywithin unethical environments.Negative Behaviors Research on unethical behavior in organizations has noted a number of reasonsemployees may engage in certain acts: to benefit themselves, to retaliate against or harm theorganization, or to harm coworkers. Some theorists contend that individuals who stronglyidentify with their organization may choose to disregard personal moral standards and engage inacts that favor the organization, possibly even at the expense of those outside it (Bingham et al.,2010, p. 769-770). In many cases, the need to have a strong organization identification orbelonging may induce employees to ignore their personal ethical standards involving norms,beliefs, or personal values, and engage in behaviors that aid the organization instead. A closerlook at social theories that have supported reasons to why employees turn a blind eye to actingethically can be seen in social identity and social exchange theories.
  9. 9. According to social identity theory, organizational identification provides the socialcontext for how people behave. Employees regulate their behavior to satisfy their positiveassociation and membership with their organization, and they behave in ways intended tomaintain or enhance the positive self-image of being affiliated with their organization (Binghamet al., 2010, p. 770). In cases that involve conforming to the organization’s internalized ethicalprinciples stand the potential of trumping everything even when the behavior perceived to becorrect is wrong causing individuals within the system to put aside positive moral values, norms,and beliefs just to hold on to a strong sense of identification. Another theory that links moral decision making with unethical behavior can beexplained through the social exchange theory that proposes that quality relationships developthrough the exchange of resources between two parties. This principle is based on the norm ofreciprocity, which states that individuals generate obligations to return beneficial behavior to anorganization with which they feel a strong membership. Reciprocity norms provide standards ofbehavior between employees and organizations (Bingham et al., 2010, p. 770). This theorysuggests that individuals have a strong desire not only to identify with the organization but alsohave a strong obligation of commitment and membership. Examining OB and social identity and social exchange theories are just two linkages thatshow the impact that moral responsibility has on the actions of employees and how socialconsciousness influences decision making within organizations. What happens when theunethical behaviors are not spawned from that of the individual, but from the employer instead?There are organizations in certain industries that tend to behave unethically and have culturesthat encourage their members to select unethical acts. The unethical practices become merestandards that create a culture known for operating unethically and therefore attract employees
  10. 10. who behave in similar manners. To support this statement, an article found in the Journal ofBusiness Ethics, indicates that organizations culture also can predispose its members to behaveunethically providing research that has found a relationship between organizations with a historyof violating the law and continued illegal behavior as well as some firms selectively recruitingand promoting employees who have personal values consistent with illegal behavior(http://construct.haifa.ac.il/~danielp/soc/sims.htm). This indicates that firms may socializeemployees to engage in illegal acts as a part of their normal job duties. Unfortunately, the texts did not give black or white answers, but instead provided grayareas involving relativism as potentially being another culprit of why unethical actions exist inorganizations. Relativism is the view that no objective moral standard is possible, the issues ofright and wrong are personal and subjective, and the ethical decisions are made by each personfor him or herself without the danger of being wrong (Ruggiero, 2003). Unfortunately, thisinternalization of ethical standards has resulted in the moral collapse of organizations, andrequires individuals to step up to Ruggiero’s challenge of fully shifting from current unethicalbehavior to ways in which one should act involving morally responsible actions. Implications for HRD Practitioner The HRD professional has become increasingly involved in assisting organizations tomeet economic and employee development objectives, but are now faced with the challenges ofmeeting ethical goals within today’s 21st century workplace. Do HRD professionals set the tonefor ethics within the workplace? Many would say yes, it is yet another hat that the HRDprofessional is required to wear. It is imperative to understand what needs to be addressed whereethics are concerned. McLean (2001) highlights the difficulty that is always encountered whendiscussing ethics, due to the lack of understanding how ethical behavior should be defined
  11. 11. (McLean, 2001, p. 220). It would be ideal to follow the Golden Rule’s guidelines of, “do untoothers as we would have them do unto us,” however McLean (2001) says this possesses toomuch ethnocentricity indicating that the potential narrowness of ethics is one of the motives fordeveloping codes of ethics or ethical guidelines supported by a professional group (McLean,2001, p. 220). This creates the need to establish ethical guidelines within the workplace thatcould assist the HRD professional as they deal with implications, especially cases in whichemployees choose to behave unethically even with standards. Unfortunately, oftentimes ethicalissues go unnoticed or even if they are apparent, little is done. Keep (2007) presents aninteresting scenario: The ‘Dead Moose’ in the Corner, which is avoiding the conversations aboutobvious corruptive actions of the organization, and prompts methods for getting around theseethical issues suggesting that the HRD regularly initiate discussion around the ‘un-discussible’with clients, groups, colleagues so that there are no forbidden areas and agree to operatingprinciples about how to deal with taboo issues (Keep, 2007, p. 466). Today’s society is requiring more humanistic approaches for the HRD professional withthe mindset being systems-thinking focused on integrating the business’ profitability all whileconsidering both environmental and societal ethics as well. Gentile (2010) echoes Keep’s articlein suggesting ways for the HRD professional to deal with ethics by: 1) confronting the problem,2 ) treating the conflict as a business matter, 3) encouraging employees to speak out about theissue, 4) challenge the rationalizations, 5) make long-term risks more concrete, and 6) presentalternatives. Gentile (2010), points out one important aspect of acting morally responsible whichinvolves making employees recognize that acting ethically is a part of their job (Gentile, 2010, p.115). Not all employees turn a blind eye to the unethical behaviors exhibited by their employersas some choose to go against the grain of conforming to the ideals of the organization regardless
  12. 12. of the consequences. This can be seen in the all too familiar case involving the Enron scandaland whistleblower Sherron Watkins. Sherron Watkins, the former VP of Enron Corporation, is aprime example of employees behaving morally responsible when faced with ethical dilemmas.She alerted then-CEO Ken Lay of accounting irregularities within the company, warning himthat Enron “might implode in a wave of accounting scandals.” She testified before congressionalcommittees from the House and Senate, which launched investigations that led to Enron’sdemise (Beenen & Pinto, 2009, p. 289). When asked what her reason was for speaking outagainst the CEO and the organization’s unethical behavior, her response was that her ownspiritual beliefs acted as a moral beacon providing her “a clear sense of doing the right thing,”regardless of the consequences that she would face (Beenen & Pinto, 2009, p. 286). This dispelswhat Gentile (2010) indicates as reasons that many keep quiet in the wake of dealing withorganizations that act morally irresponsible, stating that there are four classic rationalization forkeeping silent to include employees justifying that 1) it is standard practice, 2) it is not a big deal,3) it is not my responsibility, and 4) I want to be loyal (Gentile, 2010, p. 114). Ethics is gaining widespread attention as organizations are becoming more aware of theimpact it has on how they are seen both internally and externally and are therefore adjusting theirthinking and behaviors accordingly within society. The evidence of acting unethically can betraced back to many instances in “Corporate America” and has earned the right to concern HRDpractitioners and many organizational leaders. Bridging the Gap between Ethics and Organizational Behavior Organizations use a variety of approaches to mold desirable ethical behaviorsincorporating methods to include code of ethics that spell out the required ethical behaviors andvalues of the company, provide ongoing ethics training, and some even put ethical compliance
  13. 13. officers in place to govern and ensure that employees are exhibiting ethical actions whileperforming in their roles. Garavan (2010) challenges the HRD professional, stating that theyhave a major role to play in helping organizations achieve CSR, sustainability, and ethical goals(Garavan, 2010, p. 489). Bierema and D’Abundo (2004) go a step farther and specifically tasksthe HRD professional to remain firm as they define socially responsible actions, upholdexpectations, and promote ethical policies and procedures to improve social welfare fororganizations. This tasks the HRD professional to conduct more robust analysis whenconsidering what the factors are within the organization that encourages both ethical andunethical behavior. Hatcher (2002) supports this by saying that there is an intimate relationshipbetween corporate problems and behavior and therefore ethics, psychology, and codes of ethicsshould be at the heart of all professional HRD endeavors (Hatcher, 2002, p. 34). Upholding ethical behavior has two parts and is not only the responsibility of the HRDpractitioner to establish codes of ethics but also requires the follow through on behalf of theindividuals within the organization. May (1996) shares the same insight that holds the individualaccountable where professional ethics are involved indicating that: • Professional roles are thought to create responsibilities by virtue of the professional’s agreement to take on a certain set of tasks in society. • Professional responsibility is generally seen as a subcategory of the role responsibilities an individual assumes explicitly. • In most professional contexts, there is a code or some other source of information about the behavior that is required of those who assume a particular professional role.An additional measure that can be taken to arrive at desired behaviors is to reinforce it. Manycorporate organizations, educational institutions, and even parents use operant conditioning, amethod of learning that occurs through rewards and punishments for behavior, as a means to
  14. 14. reinforce positive behaviors; however this tactic should be used with precaution. The basis foroperant conditioning involves the process for developing new skilled behaviors throughinstrumental conditioning (McLeod, 2007). Eventhough this method can be used to shapedesired behaviors it requires a full analysis of whether the behaviors being reinforced are trulyethical, moral, and free of subjectivity. Enhancing the organization’s ethical consciousness andencouraging employees to mirror positive behaviors is only the beginning as it takescommitment in promoting a morally responsible climate. Conclusion It is apparent that as many organizations continue to head toward moral collapse itbecomes imperative to study with more intensity the relationships between relativism, idealism,and the general justifications on why corporations choose certain unethical actions. There wassupporting evidence from scholarly texts, although minimal, that provided explicit evidencearound a linkage for ethics having a direct impact on how individuals behave in organizations.Therefore, will HRD professionals need to become social psychologists in order to understandthe theoretical as well as practical reason for behaviors as a result of the organization’s moralactions? Will it involve running internal ethics tests to understand the state of the organization’sclimate to either rectify unethical actions or establish ideal behaviors? Regardless of whichanswer chosen to create a society of ethical behavior, organizations have a corporate socialresponsibility to implement the best decisions that stem the best behaviors. Upholding ethics inthe 21st century organization should extend beyond corporate walls as ethics is taken from thenormative to a different plateau involving the social-science approach of business ethics.Therefore, a critical appeal should be made to fully understand the impact of how the decisionsof corporate entities directly affect the behaviors of the individuals within organizations.
  15. 15. References(2011). Ethisphere. Retrieved on November 30, 2011 from http://ethisphere.com/past-wme- honorees/wme2011/Austin, J., Casella, S., and D. A. Wilder. (2009). Applying behavior analysis in organizations: Organizational behavior management. Psychological Services, 6 (3), p. 202-211.Avery, J. B., Palanski, M. E. and Walumbwa, F.O. (2011). When leadership goes unnoticed: The moderating role of follower self-esteem on the relationship between ethical leadership and follower behavior. Journal of Business Ethics, 98 (4), p. 573-582.Beenen, G. and Pinto, J. (2009). Resisting organizational-level corruption: An interview with Sherron Watkins. Academy of Management Learning & Education, 8 (2), p. 275–289.Bierema, L. L. and D’Abundo, M. (2004). HRD with a conscience: practicing socially responsible HRD. International Journal of Lifelong Education, 3(5), p. 443–458.Bingham, J. B., Mitchell, M. S., and Umphress, E. E. (2010). Unethical behavior in the name of the company: The moderating effect of organizational identification and positive reciprocity beliefs on unethical pro-organizational behavior. Journal of Applied Psychology, 95 (4), p. 769-780.Brenkert, G. G. (2010). The limits and prospects of business ethics. Business Ethics Quarterly, 20 (4), p. 703-709.Garavan, T. N. and McGuire, D. (2010). Human resource development and society: Human resource development’s role in embedding corporate social responsibility, sustainability, and ethics in organizations. Advances in Developing Human Resources, 12 (5), p. 487-507.
  16. 16. Gentile, M. C. (2010). Keeping your colleagues honest. Harvard Business Review, 88 (3), p. 114-117.Hatcher, T. (2002). Ethics and HRD: A new approach to leading responsible organizations. Cambridge, MA: Perseus Publishing.Hiriyappa, B. (2009). Organizational behavior. New Age International. New Dehli, India: Pvt. Ltd. Publishers.Keep, J. (2007). Fitness to practice: Can well-balanced, supported HRD practitioners better deal with ethical and moral conundrums? Human Resource Development International, 10 (4), p. 465-473.Lawrence, T. B. and Shadnam, M. (2011). Understanding widespread misconduct in organizations: An institutional theory of moral collapse. Business Ethics Quarterly, 21 (3), p. 379-407.Matulich, E. and McMurrian, R. C. (2006). Building customer value and profitability with business ethics. Journal of Business & Economics Research, 4 (11), p. 11-18.May, L. (1996). The socially responsive self: Social theory and professional ethics. Chicago, IL: The University of Chicago Press.McLean, G. N. (2001). Ethical dilemmas and the many hats of HRD. Human Resource Development Quarterly, 12 (3), p. 219-221.McLeod, S. (2007). Skinner - Operant Conditioning. Simply Psychology. Retrieved November 30, 2011 from http://www.simplypsychology.org/operant-conditioning.html.Ruggiero, V.R. (2003). Thinking critically about ethical issues, (6th ed.). Mountain View, CA: Mayfield Publishing.Sims, R. R. (1992). The challenge of ethical behavior in organizations. Journal of Business
  17. 17. ethics, 11 (7), p. 505.Trevino, L. K. (2010). Navigating business ethics: Smoother sailing ahead. Business Ethics Quarterly, 20 (4), p. 761-764.Verschoor, C. (2001). Ethical behavior brings tangible benefits to organizations. Strategic Finance. Retrieved on November 21, 2011 from http://www.allbusiness.com/human- resources/employee-development-employee-ethics/785108-1.html#ixzz1fJzfAf17
  18. 18. Diversity’s Effect on Organizational Behavior:Managing Workplace Diversity in the 21st Century Luvon Hudson North Carolina State University
  19. 19. AbstractThis scholarly review contributes exemplar’s knowledge and findings about the contextual orindividual factors that influence Organizational Behavior (OB) and incorporates the theoreticaland psychological aspects to understand the correlation between diversity and OB. This reviewpresents the various literary works’ viewpoints on the direct impact that diversity has onorganizational behavior, recognizes the challenges surrounding employee development,technology, and cultural differences. The review concludes with suggestions to bridge the gapfor HRD practitioners to effectively manage the various diverse elements that are present intoday’s 21st century workplace.
  20. 20. Introduction As the workforce changes, there is an increasing demand for companies and managers tobe more sensitive to factors that affect Organizational Behavior (OB) to include employeedevelopment, technological changes, and cultural differences that affect the organization’ssuccess. As an HRD professional, the focus shifts to understanding these elements of diversityand their effects on behavior in the organization. An examination of what scholarly exemplarshad to say about the relationship between diversity and organizational behaviors within dynamicenvironments is presented to provide insight on what impact the connections have on businessoutcomes. The paper concludes with suggestions that will assist HRD practitioners in managingdiversity within today’s 21st century workplace. Workplace Diversity & Organizational Behavior What is the importance of understanding the relationship between diversity within theworkplace and the impact that it has on OB? The HRD professional should answer this questionby saying that as different elements are integrated to create a well-balanced functioning system,it is imperative that stability is established with the many dynamics that present itself within theenvironment involving people, cultures, technology, and how to manage these components ofdiversity effectively. First, it is important to define both diversity and organizational behavior. Diversity isdefined as the condition of having or being composed of differing elements; the inclusion ofdifferent types of people (as people of different races or cultures) in a group or organization(http://www.merriam-webster.com/dictionary/diversity). Hiriyappa (2009) provides one of themany definitions for OB as being the study and application of knowledge about how people,individuals, and groups act in organizations. The relationship between these two elements
  21. 21. requires the HRD practitioner to understand diversity, how to arrive at the most optimalbehaviors when there are variances within the workplace, and how to engage all employees sothat diversity becomes a systems-thinking norm for the organization. Therefore, three articles were compared to reveal if there are any themes around therelationship of diversity and OB. The viewpoints of these exemplars showed commonalitiesinvolving the purpose for implementing diversity management, the factors that led toeffectiveness when considering diversity, in addition to the role that leadership plays whensetting ideal behaviors for employees when they lead by example. Differences of opinions wereshown involving what variables affect the relationships between diversity and OB as well asperceptions of where desirable behaviors stem from.Similar Viewpoints (Diversity Management Programs & Leadership) De Meuse, Hostager, and O’Neill, (2007) viewed the implementation of workforcediversity programs as having a direct reflection on OB and performance indicating that it isgenerally believed that attaining workforce diversity has many positive social, legal, strategic,and competitive benefits for an organization (De Meuse et al., 2007, p. 38). This literary workheld organizational leaders accountable for setting effective patterns used in forming OBinitiatives where diversity is involved and indicated that organizational leaders who undergosome form of diversity management training, will positively affect employees emotionalresponses, behavioral reactions, judgments, personal consequences, and organizational outcomes(De Meuse et al., 2007, 42). Kormanik and Rajan’s article, Implications for Diversity in the HRD Curriculum Drawnfrom Current Organizational Practices on Addressing Workforce Diversity in ManagementTraining, shared the same focus as De Meuse et al., of managing diversity so that the
  22. 22. organization’s full potential can be reached through the variety of components presented withinthe environment. The article pointed out the importance of harnessing differences to create aproductive workplace in which employees feel valued and their talents are used in the process ofaccomplishing organizational goals. Kormanik and Rajan (2008) believe effective diversitymanagement involves being aware of behavior, leveraging strengths, acknowledging biases andprejudices, avoiding assumptions, and focusing on merit (Kormanik & Rajan, 2008, p. 368).Leadership shared the same responsibility for both Kormanik and Rajan (2008), as they alsobelieve that the role of management is “essentially and inherently a social and moral activity; onewhose greatest success in efficiently and effectively producing goods and services is likely tocome through building organizational patterns, cultures and understandings based onrelationships of mutual trust and shared obligation among people involved with the organization”(Kormanik & Rajan, 2008, p. 370). Choi and Rainey (2010) echo the viewpoints of De Meuse et al., Kormanik, and Rajan byindicating the need to understand the impacts of diversity on organizational outcomes, such asorganizational performance, employee satisfaction, and turnover, contending that managingdiversity should be significant as a moral imperative, as a legal requirement, and as a factor inorganizational performance (Choi & Rainey, 2010, p. 109). The relationship between diversityand organizational development was deemed effective through integrating workgroups; movingfrom homogeneous groups to more heterogeneous structures. This process creates theopportunity for producing higher quality solutions and shared perspectives that aid inorganizational performance through knowledge management as well as becoming culturallyaware of others within the environment. Leadership was also a component that attributed to theenhancement of organizational performance. Choi and Rainey assume that when leaders work
  23. 23. well with employees of diverse backgrounds, show a commitment to a workforce representativeof all society, and establish policies and procedures that promote diversity, the environment ismore productive as a result. It was determined that the three scholarly literary works shared perceptions that effectivediversity management will increase organizational performance, moderate the impact of diversityin the environment, and hold leadership to setting positive examples to harness diversity so thatemployees can model positive behaviors and accept differences which ultimately increasebusiness results.Opposing Viewpoints (Variables of Diversity & Causes for Behaviors) It was apparent that diversity has become a major component for the HRD professional toconsider and the three articles pinpointed parallel areas of focus where diversity is involved;however, there were disparities among the perceptions of what each considered to be the mostimportant factor that determines where organizational behavior (positive and negative) isderived. De Meuse et al. (2007) indicated that the main variable that depicts the behaviorsexhibited by individuals when faced with diversity are attitudes. The literature attributedbehavioral patterns to the perceptions and attitudes of the individual, and indicated that anemployees perceptual world determined his or her reality. Employees who perceive workplacediversity of value view diversity as having many positive consequences for themselves (DeMeuse et al., 2007, 42). From this viewpoint, perceptions, and attitudes are related to behaviorsand the literature provided a deeper analysis that showed the progression of the attitude’svariable and the role it played in determining successful outcomes not only for themselves butalso for the organization based on five assumptions: 1) Emotional Reactions: The initial, "gut
  24. 24. feelings" about diversity in general, 2) Behavioral Reactions: What a person does (or intends todo) in response to diversity; a persons verbal as well as nonverbal actions, 3) Judgments: Apersons value judgment with regard to diversity in principle (is diversity good or bad), 4)Personal Consequences: A persons views on how diversity will affect him or her personally, and5) Organizational Outcomes: A persons views on how diversity will affect the organization as awhole (De Meuse et al., 2007, p. 40). Kormanik and Rajan (2008) credit management as being the variable that causes certainbehaviors in the workplace when dealing with diversity. This literature presented case studiesthat portrayed managerial efforts and other contextual variables as the moderators for therelationship between diversity and positive organizational outcomes where diversity is involved.The assumption of the text indicated that effective leadership connected diversity to workeffectiveness. Therefore, by extending management training the results will yield effectiveleadership that encourages a diverse workforce to appreciate different aspects of the environmentand value the diverse elements presented to them. Kormanik and Rajan put the responsibility ofideal behavioral outcomes solely on the shoulders of the leaders within the organization. Thissuggests proper diversity training should start at the management level first, as the training willassist in how they manage diversity and help to develop subordinates accordingly. Theassumption is that if training programs develop more favorable attitudes for employees, biasescan be addressed that will have an impact on changing behaviors. Choi and Rainey (2010) attributed two specific theories to include social categorizationand social identity as frameworks that lend to the overall effectiveness when dealing withgroups, conflicts, or miscommunication in which diversity is involved (Choi & Rainey, 2010, p.110). Both theories provide the social context for human behavior and how employees regulate
  25. 25. their behavior to satisfy self-images of being affiliated with groups or the organization. Choi andRainey (2010) have the perception that there are a wide variety of variables that contributesignificantly to the relationship between diversity and organizational performance or behavior toinclude contextual factors, such as task characteristics, organizational culture, and teamprocesses (Choi & Rainey, 2010, p. 110). Choi and Rainey indicated that positive behaviorsresult from situations that will vary and provided examples to include: when employees workedtogether longer, higher levels of gender diversity increased performance, racial diversitysignificantly improved performance that encourage teamwork, and cooperation amongemployees (encourage frequent interactions and communication among members increasepositive effects of racial diversity on organizational performance (Choi & Rainey, 2010, p. 117). The literary works had different perceptions on what was deemed as the most pressingfactor that dictates how individuals behave in organizations when faced with diversity.Regardless of the variances depicted, all require the HRD professional to react in the same waywhen dealing with instances involving diversity; by building components and fosteringenvironments that accept diversity across all levels within the organization. Supplemental Literature For today’s organizations, diversity has become more than making sure that affirmativeaction programs are well enforced. HRD practitioners are looking at ways to maximizeemployee development in rapidly changing environments. The humanistic approach mustconsider a variety of focal areas that pertain to other elements involving diversity.Therefore, additional literature was examined to review the effects that diversity has on criticalareas within organizations involving employee development, technology, and cultural awareness.
  26. 26. Employee Development Today’s workforce requires constant enhancement of knowledge, abilities, and skills.Diverse environments may also present a variety of demands that involve organizations toremain competitive, create internal knowledge management strategies, and ensure positivecultures are established and maintained as employees are retained in the organization.Therefore, Bennett and Bierema (2010) advise addressing changes in the workforce, successionplanning, and talent development for at least the next 10 years. These areas for employeedevelopment are imperative for the HRD professional to retain and advance top talent to create acompetitive edge that can be used in the marketplace. Bennett and Bierema, indicate thatintegrated systems can track the readiness of employees to assume the next level of leadership,and lifestyle-friendly virtual technologies may be able to help retain women and older workers,which are critical for companies to maintain competitive advantage (Bennett & Bierema, 2010,p. 737). In an article, Linking Employee Development Activity, Social Exchange andOrganizational Citizenship Behavior, a model is presented that shows how employeedevelopment may be undertaken to benefit someone other than the employee, thus providingadditional variables as possible predictors of development behavior. The basis for this model isthe concept of ‘perceived beneficiary’ of developmental efforts, where not only the employee butalso other entities such as the organization may benefit in varying degrees from the employee’sparticipation in development (Maurer & Pierce, 2009, p. 140). Employee development has a positive impact on behaviors and results for theorganization, by aiding in competitive advantage, retention of employees, and creating a culturethat advances employees within.
  27. 27. Technology Alongside of employee development being a focal area that HRD professionals have toaddress, the impact of technology entering the workplace has vastly changed the wayorganizations operate in today’s marketplace. An article found in Management Today made aninsightful statement and posed a question for the HRD practitioner: The workplace is becomingmore fragmented - people arent working together under the same roof as they were even 20years ago. What effect will that have on the culture of an organization? This article addressedthe future of the workplace and the impact that diversity has on technology and how employeesare reacting. For the HRD professional, this requires additional prep in making sure thatemployees are equipped with the proper training to close gender, age, or any other gaps wherethe use of technology is involved. Differing levels of computer experience potentially impact theperformance and morale of employees as they are expected to complete the same tasks of theirpeers. This means ensuring that barriers due to technology are not impacting organizationalbehaviors so that all learning and skill levels are accommodated successfully. Therefore, avariety of methods and increased learning opportunities should be presented to the organizationso that all ages, genders, and ethnicities are well-equipped with the knowledge needed to performeffectively. Another example of how organizations are seeing diversity in the environment isreflected in the effects of globalization. Integrating methods to bridge the technological gapswhen dealing with business expansion into other countries require organizations to reduce issuesin the most feasible and creative ways possible. Mamaghani (2006) recommended reducingglobalization efforts through telecommuting as a way to address some of the issues related to
  28. 28. dealing with international workforces, such as language barriers, cultural relationshipdifferences, and time zone differences that often lead to companies needing to maintaincontinuous operations (Mamaghani, 2006, p. 847). While technology plays a positive role inorganizations, there is a growing concern for employers to govern the actions of employees asthey use company technology. More instances of technology misuse are surfacing involvingemployees abusing the internet; shopping online, playing games, and participating on socialmedia sites all on company time as well as hacking internal systems to gain confidentialinformation. These unethical behaviors that have spawned from technology are costingorganizations money as this has a negative impact on productivity and are requiring the HRDpractitioner to implement ways to offset such behaviors.Technology has required the HRD professional to understand the importance of trainingemployees to become competent with technology, balancing globalization’s effects, and ensuringethical behaviors are exhibited by employees when using technical tools.Cultural Diversity Managing diversity effectively requires the organization and HRD practitioner to haveheightened levels of cultural awareness. Cultural awareness is defined as an individual having anunderstanding of the differences between themselves and people from other countries or otherbackgrounds, especially differences in attitudes and values (http://dictionary.reverso.net/english-cobuild/cultural%20awareness). The importance of being culturally aware can assist in avoidingtypical negative behaviors exhibited by employees to include prejudice, stereotyping, anddiscrimination. Bertoline and Sarapin (2011) presented selected concepts in support of diversity and theelements of the processes that led to success in implementing diversity training programs within
  29. 29. a multi-culturally diverse workplace. This means accepting the range of variations amongpersons by virtue of their age, education, social class background, job function, and personalitystyle. This also suggests that diversity can be managed through all employees and not just aselect group that is perceived to be of more importance. It involves a systems approach thatassists everyone in the organization understand how to deal with diversity. Therefore, bymanaging diversity across all levels of the organization and creating a culturally awareenvironment it can aid in providing a benefit for everyone. Mohamed (2011) supports Bertoline and Sarapin indicating that in order for diversity toacquire a positive (and productive) valance, there needs to be a common ground for the co-existence of sameness and difference, of commonality, and pluralism. Cultural diversity acquiresits value from and in relation to its opposite (Mohamed, 2011, p. 53). This involves buildingmore knowledge around differences in ethical norms where cross-cultural conditions arepresented and developing frameworks that can accommodate these concepts and providingguidelines based on supporting cultural awareness. Producing desired organizational behaviors within blended workplace environmentsrequires the HRD to creatively illustrate the need for integrating employees and implementeffective ways that produce a systems-thinking approach when faced with differences in order toview the value of working with diversity in the organization. Bridging the Gap between Diversity and Organizational Behavior Organizations use a variety of approaches to mold desirable behaviors incorporatingmethods to include training revolving around diversity, ethics, cultural awareness, andimplementing efforts focused on changing attitudes and perceptions pertaining to diverseelements that have entered the environment. Robinson and Robinson (2008) also suggest using a
  30. 30. Performance Relationship Map (PRM) tool as a means to address gaps that hinder successfulbusiness and performance outcomes. This model offers solutions for HRD professionals thatassist in decision-making where performance improvement is concerned (Robinson & Robinson,2008, p. 29). Particularly in environments dealing with diversity, the HRD professional canapply theory and concepts for OB to this model when faced with diversity. Gaps can beanalyzed in terms of achieving successful business results through the performance of people in aspecific job or workgroup that have variances in the environment. The HRD practitioner canlook at diversity and the effects it has on behavior using this literature’s recommendation ofanalyzing the 1) Should – the goal, objective or destination of the business and for performanceof people, 2) Is – the current state or the organization in terms of business results as well as thetypical performance of people in a specific job or workgroup and 3) Cause – the factors withinpeople, within the organization, and outside of the organization that either enable performance oract as barriers to performance. However, this model may focus too heavily on the businessaspects of the gaps and hindrances without paying much attention to the individual componentsthat also assist in yielding effective outcomes.The HRD practitioner must realize that these efforts require a systems-thinking approach thatprompts employees to have a perspective of self while viewing the total system so that effectiverelationships and partnerships are formed within the organization. Oshry (2007) pushes for thesame methods in understanding how individual performers within a system integrate to benefitthe entire organization. This text mentions the challenges of robust systems regardless if it is afamily, work team, organization, society or a nation, it is a high-energy system that is vibrant andan enriching place for its members to be in. Diversity, or opposing forces as Oshry likes to call itcan create positive energies that aid in organizational success. Dynamic environments in which
  31. 31. members develop and express their uniqueness (individuation) and at the same time are teamplayers (integration). It is a system that welcomes and elaborates variety (differentiation) whileworking on commonality (homogenization). It is a system that honors its traditions(preserve/protect) while exploring the new and unfamiliar (allow/adapt) (Oshry, 2007, p. 205).Once the organization moves from individuation to adaptation, perhaps instances of unequaltreatment of other individuals within the environment can be avoided. Muller and Parham(2008) support this statement, indicating a need to explore the permutations of diversity fromintrapersonal values, biases, and phenotypical self-identities to organizational cultures and howthey reinforce or minimize disparate treatment of diverse individuals and groups (Muller &Parham, 2008, p. 424). Promoting opportunities that accept differentiation seems to be the key regardless if it isdealing with employee development, technology, or cultural differences, as the impact of howindividuals deal with the elements of diversity can affect OB outcomes. Conclusion Heterogeneous work environments are becoming the norm for today’s businessoperations requiring the HRD professional to understand how diversity affects organizationalbehavior and what the key components involve that have a direct impact on business outcomes.The task of balancing diverse components becomes a juggling act, one that involves carefulconsideration of all elements included so that nothing drops from the hands of the HRDpractitioner; ultimately creating the need to be strategic and forward thinking in today’sworkplace. Managing diversity requires the effective enablement of all employees to perform totheir potential by tapping into employee development, technology, cultures, and analyzing
  32. 32. business and performance issues to uncover the possibilities of all workforce members throughorganizational development that focuses on organizational behavior. References(2008). Reverso.com. Retrieved on December 1, 2011 from http://dictionary.reverso.net/english-cobuild/cultural%20awareness.(2011). Merriam-Webster.com. Retrieved on November 30, 2011 from http://www.merriam- webster.com/dictionary/diversity.Bennett, E. E. (2010). The coming paradigm shift: Synthesis and future directions for virtual HRD. Advances in Developing Human Resources, (12) 6, p. 728-741.Bertoline, G. and Sarapin, M. I. (2011). Some essentials of diversity in the workplace. The Journal of Technology Studies. Retrieved from http://scholar.lib.vt.edu/ejournals/JOTS/ Winter-Spring-2001/williams.html.Choi, S., and Rainey, H. G. (2010). Managing diversity in U.S. federal agencies: Effects of diversity and diversity management on employee perceptions of organizational performance. Public Administration Review, (70) 1, p. 109-121.De Meuse, K. P., Hostager, T. J., and O’Neill, K. S. (2007). A longitudinal evaluation of senior manager’s perceptions and attitudes of a workplace diversity training program. Human Resource Planning, 30 (2), p. 38-46.Hiriyappa, B. (2009). Organizational behavior. New Age International. New Dehli, India: Pvt. Ltd. Publishers.(2011). The future of workplace. Management Today, pp. 56-59. Retrieved on November 26, 2011 from http://www.managementtoday.com.
  33. 33. Kormanik, M. B. and Rajan, H. C. (2010). Implications for diversity in the HRD curriculum drawn from current organizational practices on addressing workforce diversity in management training. Advances in Developing Human Resources, (12) 3, p. 367-384.Mamaghani, F. (2006). Impact of information technology on the workforce of the future: An analysis. International Journal of Management, (23) 4, p. 845-850.Maurer, T. J., Pierce, H. R., and Maurer, T. J. (2009). Linking employee development activity, social exchange and organizational citizenship behavior. International Journal of Training and Development, 13 (3), p. 139-146.Mohamed, Z. (2011). Media, cultural diversity, and globalization: Challenges and opportunities. Journal of Cultural Diversity, 18 (2), p. 48-54.Muller, H. J. and Parham, P.A. (2008). Review of workforce diversity content in organizational behavior texts. Academy of Management Learning & Education, Vol. 7 Issue 3, pp. 424-428.Oshry, B. (2007). Seeing systems: Unlocking the mysteries of organizational life. San Francisco, CA: Berrett-Koehler.Robinson, D.G. & Robinson, J.C. (1996). Performance consulting: Moving beyond training. San Francisco, CA: Berrett-Koehler.
  34. 34. Office of University Controller – Submission to NASBA Luvon Hudson Melissa McDonald Adam Surgan Lisa Suzanne Vallad North Carolina State University April 25, 2011
  35. 35. ContentsMcLeod, S. (2007). Skinner - Operant Conditioning. Simply Psychology. RetrievedNovember .......................................................................................................................1630, 2011 from http://www.simplypsychology.org/operant-conditioning.html...................16Introduction......................................................................................................................37Section 3 – Organization Description..............................................................................37Section 4 – Statement of Administrative Policies............................................................39Section 5 – Program Content Development....................................................................40Section 6 – Program List.................................................................................................41Section 7 – Program Materials – Outline.........................................................................41Section 8 – Biographies/Resumes..................................................................................43Section 9 – Promotional Material.....................................................................................44Section 10 – Attendance Monitoring and Records of Participation.................................45Appendix A: National Association of State Boards of Accountancy (NASBA) SponsorAgreement.......................................................................................................................46Appendix B: Evaluation Instrument.................................................................................56Appendix C: Certificate of Completion.............................................................................57Svieby, K. (2001). Knowledge management – Lessons from the pioneers. Retrievedfrom http://www.providersedge.com/docs/km_articles/KM_-_Lessons_from_the_Pioneers.pdf...................................................................................75Introduction......................................................................................................................78Problem Definition ..........................................................................................................79Methods of Data Collection..............................................................................................81 Researching the Organizational Setting.................................................................................................81 Interviews..............................................................................................................................................83 Interview with Operations Manager......................................................................................................83 Interview with Sales Department Manager...........................................................................................84 Interview with High-Performing Employee............................................................................................85 Interview with Low-Performing Employee............................................................................................85 Telephone Call Review ..........................................................................................................................86
  36. 36. Web-based Employee Survey................................................................................................................87Recommended Interventions...........................................................................................90 Compensation Plan Realignment...........................................................................................................90 Appraisal Process...................................................................................................................................91 External Marketing................................................................................................................................91 Employee Training.................................................................................................................................92 Management Training...........................................................................................................................93Expected Benefits............................................................................................................94Assessment and Evidence..............................................................................................94 Individual Learning Assessments...........................................................................................................95 Heidi Holt...............................................................................................................................95 Luvon Hudson........................................................................................................................96 Colleen Todd..........................................................................................................................97 Kelley Vandecoevering..........................................................................................................98 Client Learning Assessment..................................................................................................99Appendix A.....................................................................................................................101Appendix B.....................................................................................................................103Appendix C....................................................................................................................106Appendix D....................................................................................................................109Appendix E.....................................................................................................................112Appendix F.....................................................................................................................120Appendix G....................................................................................................................121
  37. 37. Introduction The Office of University Controller, of the University of Colorado, has recentlysubmitted an application to the National Association of State Boards of Accountancy(NASBA) to become a nationally sponsored Continuing Professional Education (CPE)provider to CPAs. The National Association of State Boards of Accountancy (NASBA)has specific requirements in regards to the Sponsor Agreement in regards to nationallysponsored CPE providers (See Appendix A). The Sponsor Agreement includes anorganization description, a statement of administrative policies, a statement of coursecontent development and review, a program list, a course outline and materials,instructor biographies and resumes, promotional materials, and for those courses thatare offered in a “group-live” format, a statement regarding attendance monitoring andrecords of participation. Team 5, in collaboration with the Office of University Controllerof the University of Colorado, developed a Continuing Professional Education (CPE)course in Ethics entitled “Ethical Challenges in Accounting”. The CPE course will beoffered to Certified Public Accountants (CPA) both affiliated with the university and notaffiliated with the university. All CPAs in the state of Colorado are required to completea minimum of two hours of ethics CPE per year.Section 3 – Organization DescriptionThe University of Colorado is a comprehensive degree-granting research university inthe State of Colorado. It is governed by a nine-member Board of Regents elected bypopular vote in the State’s general elections. To accomplish its mission, the University’s5,429 instructional faculty serve more than 57,361 students through 360 degreeprograms in 28 schools and colleges. The Office of University Controller, by delegationfrom the president, has authority over and responsibility for assuring that the fiscalpractices of the university comply with regent policies, external rules and regulations,including University fiscal policies, and generally accepted accounting principles. TheOffice of University Controller supports the Universitys mission by providing timely,accurate and relevant financial information to the Universitys fiscal employees;supporting and developing financial accounting information systems; and providingclear, practical guidelines to assist the University community in dispensing fiscalresponsibilities through these systems. The Office of University Controller is comprisedof Accounting Services, Financial and Reporting Systems, and Finance andProcurement Business Services. Accounting Services oversees the integrity of the
  38. 38. University’s financial records, and Financial and Reporting Systems maintains theUniversity’s Finance and Reporting Systems. Finance and Procurement BusinessServices provides financial communication and support to the University throughdevelopment of fiscal policies, training and documentation, and Finance andProcurement Help Desk support. Organization SizeThe Office of University Controller currently has 23 positions, with two positions asvacant. The positions are as follows: • Assistant Vice President and University Controller • Special Assistant to AVP/University Controller • Associate Director of Accounting Services • Accounting Technicians (2) • Financial Analyst • Fundraising and Gift Compliance Specialist • Director Finance & Procurement Business Services • Communication Technology Specialist • Help Desk Consultants (3) • Help Desk Manager • Training and Documentation Specialists (2) • Director Financial & Reporting Systems • Associate Director Reporting Systems • Procurement Systems Analyst (Vacant) • Financial Systems Compliance Specialist • Financial Systems Analysts (2) • Sponsored Projects Accounting Specialist • Report Writer (Vacant) Continuing Education/Organization’s ActivitiesContinuing Professional Education (CPE) relates to the mission of the Office ofUniversity Controller due to the Financial and Accounting Services education andcommunication achieved through the offering of Continuing Professional Education.There are also a significant number of Certified Public Accountants (CPAs) currentlyworking for the University, and the Office of University Controller is striving to offer thoseCertified Public Accountants Continuing Professional Education opportunities.The Office of University Controller currently develops and administers programs for theUniversity of Colorado. The following programs are currently offered by the Office ofUniversity Controller:Classroom Training:
  39. 39. • Finance and Reporting Training (University of Colorado Springs Only) • Procurement TrainingOnline Training: • Finance and Reporting Training • Procurement Training • Fiscal Certification • Fiscal Code of Ethics • Gift Fund ManagementSection 4 – Statement of Administrative PoliciesThe following sections will be posted on the Continuing Professional Education (CPE)website as part of the Office of University Controller’s website:RECORD RETENTIONThe University has a responsibility to maintain and retain adequate documentation for aperiod of no less than five years. Adequate documentation includes a signed classroster for each CPE program offered, a copy of the certificate of completionadministered to each participant at the conclusion of each CPE Program offered, andevaluation forms completed by participants received at the conclusion of each CPEProgram offered.REFUND POLICYAll participants must register for a course at least one week in advance, and pay the registrationfee at that time. The University will accept checks and credit card payments as a method ofpayment. • Cancellations or transfer requests made six business days or more prior to the program will be fully refunded • Cancellations or transfer requests made two to five business days prior to the program are subject to a $25 cancellation/transfer fee • Cancellations or transfer requests made one business day prior to the program are subject to a $50 cancellation/transfer fee • Cancellations the day of the program or no notice of cancellation will result in participant’s forfeiture of the program feePROGRAM CANCELLATIONThe University reserves the right to cancel the program five business days or more prior to theprogram date. Emergencies or enrollment issues may prompt a change in or cancellation of a
  40. 40. scheduled program. In the case of an altered or cancelled program, all program participants willbe notified immediately. Whenever possible, program alterations and cancellations will benotified to participants five business days prior to the program date. The University is notresponsible for participant travel costs in the event that the program is cancelled five businessdays or more prior to the program date.COMPLAINT RESOLUTIONComplaints in regards to CPE Courses at the University of Colorado will be facilitatedthrough the CPE Program Manager. The CPE Program Manager will make every effort toresolve complaints satisfactorily for all parties involved. Participants in the CPE Programsat the University of Colorado will be provided with contact information for the ContinuingProfessional Education Program Manager.COURSE UPDATEThe University has a responsibility to ensure that all activities, materials, and deliverysystems used in CPE programs are current, technically accurate, and effectively designed.Furthermore, the University has a responsibility to be qualified in the subject matter of allCPE programs offered. The University will conduct an annual review, by qualifiedindividuals, of all CPE program activities, materials, and delivery systems.Section 5 – Program Content Development Learner AnalysisTo ensure that each course content and level equates to the background of intendedparticipants, a learner analysis will be conducted for each course. The learner analysiswill include identification of the following: • Expected number of participants • Location of participants • Educational background and professional experience of participants • Language or cultural differences of participants • Motivation of participants • Participant characteristics • Specific interests of participantsThe learner analysis will be achieved through survey development and distribution tokey financial personnel at the University of Colorado. The learner analysis will also beachieved through interviews with key financial personnel at the University of Colorado.To review the results of the learner analysis for the Ethical Challenges in Accountingcourse, refer to Appendix A. Content Delivery and Review
  41. 41. To ensure that each course uses activities, materials, and delivery systems that arecurrent, technically accurate, and effectively designed, and that content is based onrelevant learning objectives and outcomes, the courses will be reviewed by qualifiedindividuals, outside of the development team, on an annual basis.Section 6 – Program List Field of Study Program Name CPE Credits Delivery Method Subject AreaEthical Challenges in 2 Group-Live EthicsAccountingSection 7 – Program Materials – Outline Course Title: Ethical Challenges in Accounting Delivery Method: Group-Live Course Length: 2 Hours, with a 10-minute break per hour CPE Credits: 2 Field of Study: Ethics Course Objectives: • Participants will gain an understanding of: o Ethics risk areas in accounting and how to combat ethical challenges o Resources available and communication techniques to use when dealing with an ethical challenge o The consequences of conducting fiscal misconduct
  42. 42. o Appropriate and inappropriate uses of resourcesCourse Outline: A. Introduction a. Instructor b. Course Objectives B. Define Ethics a. Can ethics be defined? b. What is your definition of ethics? c. Ethics – Defined C. Risk areas in Higher Education a. Procurement Card b. Financial Report Review c. Supervisory Coercion D. Ethics – Presented Scenarios a. Procurement Card b. Financial Report Review c. Supervisory Coercion E. Group Break-Out Sessions a. Group is presented with an ethical scenario b. Group determines appropriate course of action c. Group presents findings to class F. Discussion of Ethical Resources and Possible Actions a. Enron/Kenneth Lay Letter b. Group discussion of other possible actions c. AICPA Resources
  43. 43. G. Consequences of Fiscal Misconduct a. Enron b. Arthur Andersen c. Education Commissioner Dwight Jones H. Overview Materials: A. Powerpoint presentation: B. Flipcharts with markers C. Handouts: o Article “Ethical Issues for CPAs o Printed Scenario materials o Sherron Watkins Letter Training Procedure and Sequence: See Content Report. Evaluation Instrument: See Appendix C. Certificate of Completion: See Appendix D.Section 8 – Biographies/ResumesThe Ethical Challenges in Accounting course will be taught and facilitated by LisaSuzanne Vallad, the Finance Trainer and CPE Program Manager at the University ofColorado, Office of University Controller. Lisa has a Bachelors of Business inAdministration in Accountancy from Western Michigan University, and will be obtaininga Master’s in Education in Training and Development from North Carolina StateUniversity in December 2011. Lisa is also a registered Certified Public Accountant in thestates of Michigan and North Carolina, with over ten years of experience, includingpublic accounting, financial analysis, and internal audit. To review Lisa’s resume, referto Appendix B.
  44. 44. Current and Upcoming Events - Cognos Reporting System Training - University Finance System Training - Ethical Challenges in AccountingSection 9 – Promotional Material - Identifying Fraudulent TransactionsCPE Course Descriptions, Schedule and Registration This link will provide a course listing, with times, dates, locations, fees, and registration information.Cancellation and Refund Policies This link will provide the cancellation and refund policy information.Administrative Policies This link will provide information to our administrative policies regarding CPE courses, such as course development processes and review.My CPE CPE participants will be able to access to their CPE information. They would be able to log in, and verify their CPE hours that they have taken with CU, and even print off certificates of completion.CU CPE Blog The CU CPE Blog will be used for promotional purposes, and will include postings regarding courses that are being developed, and upcoming events.
  45. 45. Need Help? Have Questions? Contact the CPE Program Manager: Lisa Vallad, lisa.vallad@cu.edu, 303.837.2156.Section 10 – Attendance Monitoring and Records of ParticipationFor each Continuing Professional Education course offered, the Office of UniversityController, of the University of Colorado, will provide the following: • An electronic, web-based course registration and confirmation • A printed course attendance sheet, based on course registrations, that contains: o Course Name, Date, and Location o Registrant/Participant Printed Name, Phone Number, and Email Address o Signature Column for Registrants/Participants • Certificate of CompletionDuring each course, the printed attendance sheet will be distributed for participantsignatures. At the end of the course, the instructor will provide the attendance sheet tothe CPE Program Manager. The CPE Program Manager will enter the followinginformation into the CPE Course Attendance database: • Course Name, Date, Location, and Field of Study • Registrant/Participant Printed Name, Phone Number, and Email Address • CPE Credits obtainedThe CPE Program Manager will then complete the Certificates of Completion, andelectronically distribute the Certificates of Completion to program participants.Copies of the electronic Certificates of Completion, and the database records for eachcourse, will be filed on the Office of University Controller’s server, for a minimum of fiveyears from the date of the course.
  46. 46. Appendix A: National Association of State Boards of Accountancy (NASBA)Sponsor Agreement
  47. 47. Appendix B: Evaluation Instrument
  48. 48. Appendix C: Certificate of Completion University of Colorado Office of University Controller 1800 Grant St. Denver, CO 80203 Certificate of Completion This certificate is presented to ______________________________________ Participant Name For successfully completing Ethical Challenges in Accounting ______________________________________ Course Name Ethics 2 ______________________________________ Total Credits: 2 Date: Month, XX, XXXX Location: Denver, COIn accordance with the standards of the National Registry of CPE Sponsors, CPE credits have been granted based on a 50-minute hour. National Registry of CPE Sponsors ID Number XXXXXX Instructional Delivery Method: Group-Live ______________________________________ Signature of individual responsible for administration of continuing education
  49. 49. Knowledge Management and Business PerformanceA Literature Review on the Impact of Intellectual Capital and Organizational Productivity Luvon Hudson North Carolina State University
  50. 50. Abstract This literature review is a critical analysis on a compilation of guiding theories,viewpoints, and perspectives obtained from databases containing scholarly articles andprofessional journals that examine the relationship of Knowledge Management (KM) andbusiness performance within organizations. The examination of the articles reveal the impacts ofintellectual capital as an asset for gaining competitive advantage, increasing productivity,creating motivation, and the implications of KM being used as a development tool. This papershowcases the methods that were used in creating the literature review, defines knowledge,provides answers on frameworks that support theories on KM having a direct impact on businessperformance, identifies the most appropriate processes for understanding KM implementations,and what KM means to the HRD professional in terms of increasing human resourcescapabilities and improving organizational productivity through shared knowledge.
  51. 51. Introduction The phrase “knowledge is power” holds a tremendous amount of weight when looking atthe profitability of an organization, but what happens when leadership is not open to lettingemployees share knowledge or incorporate their ideas for the direction of the company?Oftentimes intellectual capital is a strength that most companies fail to accommodate but couldhave positive impacts to the overall business performance. The result of not implementing someform of knowledge sharing techniques can be a hindrance to the business’ productivity.Organizations stand the chance of employees feeling that they have no worth, do not haveopportunities to provide input, are not able to share ideas for innovations, and cannot collaborateeffectively amongst peers. Therefore, Human Resources Development (HRD) professionalshave responsibilities that involve maximizing the potential of employees within the organizationin order to ensure sustainment, competitive advantages, and productivity. A literature review is the most appropriate means of uncovering what professional andscholarly journals have to say about the newly emerging strategy involving KnowledgeManagement (KM) as it pertains to being an effective business development instrument forhuman resources. This approach will unveil perspectives and contributions from abstracts, peerreviews, and reports on KM and allow a critical analysis of the frameworks that could prove thesuccess, failures, or a direct relationship between the profitability of an organization and theintellectual capital that it possess within its employees. The review will also examine guidingtheories and point of views that support a framework involving KM in which organizations canlook to when strengthening their business performance.
  52. 52. Methods The methods for conducting the literature review was based on examining a selection ofarticles that dealt specifically with KM and were obtained through resources to include: NC StateLibrary (http://www.lib.ncsu.edu), and the NC Live Database (http://nclive.org), which presenteda host of literature reviews, abstracts, case studies, theoretical reports found within scholarlyjournals (related to HRD and Training and Development) and professional literature, many ofwhich will be referenced in this review. The search criteria used when compiling information for this review were keywords suchas knowledge management, business performance, Return on Investment, ROI, KM, knowledgesharing, knowledge transfer, intellectual capital, and competitive advantage. These words werechosen not only to gain information about knowledge management but to identify if there wereany correlation between knowledge management and organizational productivity. The selection of articles was primarily based on theoretical findings both qualitative andquantitative, successes of implementing KM best practices, implications of how to use effectivemodels based on KM for increased performance within an organization, and general attainmentsand failures of KM practices. Many of the articles found provided overviews of KM, and thetools necessary to drive processes around how an organization can effectively use their humanresources to be a competitive instrument. Articles ranged from suggestions on how to deploysystems that create opportunities for collaboration, why intellectual capital is a powerful assetwhen creating innovations, and how KM assists organizations in being a leader in the industry.Additional articles helped to understand technical databases and applications information
  53. 53. pertaining to conceptual, functional, and physical models for knowledge classificationcomponents within those systems; however, these types of articles were discarded as the mainfocus was to study the theoretical framework that ties the methods of knowledge managementand the ways in which it can become a valuable asset for companies and ultimately lead tohaving a competitive advantage in the long run. The review involved a study of abstracts, reports, peer reviews and case studies acrossarticles that would contribute to supporting or denying any relations, inconsistencies ordiscrepancies between KM and the potential impact it has on leveraging business productivity.The researched information will provide an analysis for the HRD professional whencontemplating the implementation and impact of KM methods as a means of strengthening theinternal organization.Research Questions Knowledge Management has surfaced as a newly added facet of the HRD professional’skey focus area and has gained much attention even in the short amount of time it has beenrecognized as being a tangible component for organizational development. Svieby (2001)describes KM as being a “movement” not evolving from a set of methodologies but instead fromthree origins to include an American Information/AI-origin (the term ‘managing knowledge’ bymeans of technology was beginning to be used in the context of artificial intelligence), aJapanese Knowledge Creation/Innovation origin (spurred from innovation and how to speed upthe process of innovation in Japanese large corporations) and a Swedish Strategy/Measuringorigin (theory on how to measure intangible assets) (Svieby, 2001, 5). Svieby’s explanation wasconfusing and he even admits that the origins can be complicated when trying to understand KMpractices and principles. Each of the three origin areas assist in understanding where KM stems
  54. 54. from but still poses the question of whether or not it can contribute towards organizations inbecoming more profitable merely through employees feeling empowered and sharing knowledgecorporately. Therefore the research questions involved included: • Are there apparent frameworks that can support a theory between intellectual capital being a driving factor that aids in an organization’s sustainment, profitability, and competitive edge? • What defines knowledge as being an asset? • Can knowledge be measured? • Is there enough evidence to show the real impact of KM for attributing success or failure to an organization’s performance for an HRD professional to implement as a development tool? These questions come with a need for understanding; 1) what literature is out there toidentify what KM is, 2) the guiding theories that show a direct relationship that either supports ornegates the assumptions that intellectual capital has a direct reflection on an organization’ssuccess 3) the implications for using KM models, systems, and processes and 4) what KM meansto the HRD professional when considering ways to increase an organization’s overallperformance. The literature that was reviewed provided contexts that were very consistent in explainingthe origin of KM, the impacts it can have on business performance, and the methods in which anorganization can implement effective systems, processes, and procedures for improvedoperations through the intellectual knowledge of its employees. The review and compilation ofliterature allowed an explanation behind findings to support the effectual relationship betweenknowledge management and organizational success.Knowledge Management Defined There are several definitions of KM; however the explanations come with no concretebasis for what the term “knowledge” really is within an organization which causes the realizationthat what is deemed as being knowledge will vary from one organization to the next. Therefore
  55. 55. the term is to be looked at broadly in context as the process through which organizationsgenerate value from their intellectual and knowledge-based assets will fluctuate. Svieby (2001) asks, is knowledge an object or a process? An example is provided thatsifts the two areas where knowledge can be seen as implementing an object in the form a newtechnology system or as a process that enables people in an organization to acquire valuablemeans of dispensing information. Either way, knowledge in the form of an object or process hasallowed some kind of advanced information to prevail. Knowledge is later defined as a“capacity-to-act”, indicating that if knowledge is accepted as a human faculty, then the purposefor KM concerns how the organization best can nurture, leverage and motivate people toimprove and share their capacity-to-act. KM becomes a strategic issue for the whole organizationin which he calls Knowledge-based Strategy (Svieby, 2001, 4). Zack (1998) supports Svieby’s definition explaining that knowledge itself can be viewedboth as a thing to be stored and manipulated and as a process of simultaneously knowing andacting - that is, applying expertise. As a practical matter, organizations need to manageknowledge both as object and process. Knowledge is commonly distinguished from data andinformation. Data represent observations or facts out of context, and therefore not directlymeaningful. Information results from placing data within some meaningful context, often in theform of a message. Knowledge is that which we come to believe and value based on themeaningfully organized accumulation of information (messages) through experience,communication or inference (Zack, 1998, 45). Again what is deemed as being knowledge can be vastly different from one organizationto another. However, there are core concepts to support how knowledge is integrated into theframeworks around KM. Offsey (1997) defines knowledge management as being the broad
  56. 56. process of locating, organizing, transferring, and using the information and expertise moreefficiently within an organization (Offsey, 1997, 1). It is explained further that there is a needfor an organization to implement knowledge management systems and have management standbehind those systems. Knowledge is increasingly becoming a great asset, and therefore, theHRD professional must find ways to incorporate techniques in which to manage knowledgeeffectively (Offsey, 1997, 7). Wiig (1994) defines knowledge in the workplace; as being the ability of people andorganizations to understand and act effectively. Wiig’s definition of KM is broad and embracesrelated approaches and activities throughout the organization where KM is partly practical, basic,and directly aimed at supporting the enterprise’s ultimate objectives. Wiig breaks KM down intofour strategy focus areas to include being people focused, enterprise effectiveness focused,intellectual asset focused, and information technology focused (Wiig, 1994, 4).The model outlines elements that fall under the auspices of KM, such as learning, innovating,and the effective creation and application of knowledge assets (KAs). It also points to the needfor permission, motivations, opportunities, and capabilities for individuals to act intelligently(Wiig, 1994, 4). The literature points out that understanding knowledge can be broken down into twoforms; either as an object or a process. In order to make the use of knowledge within anorganization effective, a strategy must be encompassed around it in order to foster the bestmethods for motivating employees which yields increased levels of productivity. Thisassumption makes it necessary to review guiding theories to see if there are frameworks thatintegrate KM processes and systems to determine if it can be traced to having an impact onbusiness performance.
  57. 57. Frameworks and Guiding Theories The research of literature involving a full analysis of KM models and the relationshipbetween business performances would seek to answer if there are apparent frameworks that cansupport a theory between intellectual capital being a driving factor that aids in an organization’ssustainment, profitability, and competitive edge.Many frameworks were examined to see if there are any consistencies or conflicting structuresaround effective KM models that strengthen business performance. The reoccurring themesfound begin with the organization managing corporate knowledge, and knowledge managersneeding to understand how it is transferred within the organization. Individuals are seen as thesource of organizational knowledge and for the knowledge to gain value, the organization mustprovide mechanisms that capture it and transfer it across the organization (Dataware, 1995, 16).This general framework has been responsible for leading workforces in achieving the desiredgoals and outcomes at the individual, group, and total system levels within organizations. Zack (1998) provides a similar model involving a Knowledge Management Architectureusing the management of explicit knowledge utilizing four primary resources: • Repositories of explicit knowledge; • Refineries for accumulating, refining, managing, and distributing that knowledge; • Organization roles to execute and manage the refining process; and • Information technologies to support those repositories and processes (Zack, 1998, 47).However, the model is very broad and imbalanced as it gives reference to only the explicitknowledge (knowledge that is more precisely and formally articulated, making it more easilycodified, documented, transferred or shared) and omits the capabilities that tacit knowledge(knowledge that is subconsciously understood and applied, difficult to articulate, developed fromdirect experience and action, and usually shared through highly interactive conversation, story-telling and shared experience) can contribute as well. This imbalance within the model does not

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