Lecture 2 organization behavior


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Lecture 2 organization behavior

  1. 1. Current Issues In Organizational Behavior Chapter 2
  2. 2. Study Questions • What is a High Performance Organizations • What is multiculturalism and how can workforce be managed  Why is globalization significant for organizational behavior?  What is culture and how can we understand cultural differences  How does cultural diversity affect people at work?  Why is globalization significant for organizational behavior?  What is culture and how can we understand cultural differences  How does cultural diversity affect people at work?
  3. 3. High-performance organizations • •      Are designed to bring out the best in people and produce sustainable organizational results Characteristics of high performance organizations Value people as assets, respect diversity, and empower members to use talents to advance organizational and personal performance Mobilize teams that build synergy from talents of members that have the freedom to exercise self direction and initiative to maximize their performance contributions Utilize the latest in information and production technologies, achieving success in bringing people and technology together in a performance context Thrive on learning with norms and cultures that encourage knowledge sharing and enable members to experience continuous growth and development Are achievement oriented, sensitive to external environment, and focused on total quality management and being the best in delivering customer satisfaction
  4. 4. High-performance organizations  Stakeholders. – The individuals, groups, and other organizations affected by an organization’s performance. – The interest of key stakeholders can be described in terms of the organization’s multiple responsibilities for value creation  Value creation. – The extent to which an organization satisfies the needs of strategic constituencies. – In respect to product output , business create value for customers through product price and quality – For owners value is represented by realized profits and investment returns – In respect to inputs, business create value for suppliers through the benefit s of long-term relationship – Value for communities derives from the citizenship displayed in using and contributing to public service – In respect of throughput business create value for employees through wages, satisfaction, and development opportunitiies
  5. 5. High-performance organizations  Total quality management (TQM). – A total commitment to: • High-quality results. • Continuous improvement. • Customer satisfaction. – Meeting customers’ needs. – Doing all tasks right the first time. – Continuous improvement focuses on two questions: • Is it necessary? • If so, can it be done better?
  6. 6. High-performance organizations  Human capital. – The economic value of people with job-relevant abilities, knowledge, ideas, energies, and commitments. – Recognition that that people are indispensible resources – Only through human efforts can the great advantages be realized from other material resources of organization such as technology, information, raw materials, and money  Knowledge workers. – People whose minds rather than physical capabilities create value for the organization.  Intellectual capital. – The performance potential of the expertise, competencies, creativity, and commitment within an organization’s workforce.
  7. 7. High-performance organizations  Empowerment. - HPO’s unlock the intellectual capital through empowerment – Allows people, individually and in groups, to use their talents and knowledge to make decisions that affect their work.  Social capital. the value of human assets is also mobilized through social capital – The performance potential represented in the relationships maintained – – –      among people at work. When relationships are strong , positive, genuine, and reciprocal everyone involved gains performance advantages by working with others HPO mobilize social capital through a commitment to teams and teamwork, arranging the flow of work around business processes and empowering teams to implement them Focusing on teams they achieve Greater flexibility Internal coordination Innovation Speed Flat organization structure
  8. 8. High-performance organizations  Learning and high-performance cultures. – Uncertainty highlights the importance of organizational learning. – It is a way to achieve positive adaptation through constant knowledge acquisition and utilization in change environments – High-performance organizations are designed for organizational learning. – They have a value driven culture that emphasize information sharing, teamwork, empowerment, participation and learning – The leaders set examples for others by embracing change and communicating enthusiasm to all members for solving problems and growing with new opportunities – A learning organization has a culture that values human capital and invigorates learning for performance enhancement.
  9. 9. Multiculturalism and Diversity  Workforce diversity. – Describes differences among people with respect to age, race, ethnicity, gender, physical ability, and sexual orientation. – When it comes to people and their diversity positive organization culture tap the talents, ideas, and creative potential of all members  Multiculturalism. – Refers to pluralism and respect for diversity and individual differences in the workplace.  Inclusivity. – The degree to which the organization’s culture respects and values diversity and is open to anyone who can perform a job, regardless of their diversity attributes – HPOs with positive cultures set high expectation of inclusion and respect for diversity are in best position to unlock the full potential of intellectual and social capital
  10. 10. Multiculturalism and Diversity  Diversity biases in the workplace. – Prejudice.  Holding of negative, irrational opinions and attitudes regarding members of diverse populations – Discrimination.  Actively disadvantages individuals by treating them unfairly and denying them full benefits of organizational membership – The glass ceiling effect.  Existence of invisible barrier that prevents from rising above a certain level of organizational responsibility – Sexual harassment.  Form of unwanted sexual advances, requests for sexual favor , and other sexually laced communication – Verbal abuse.  Cultural jokes – Pay discrimination.
  11. 11. Multiculturalism and Diversity
  12. 12. Multiculturalism and Diversity  Managing diversity. – Developing a work environment and organizational culture that allows all organization members to reach their full potential.  A diversity mature organization is created when: – Managers ensure the effective and efficient utilization of employees in pursuit of the corporate mission. – Managers consider how their behaviors affect diversity.  Well-managed workforce diversity increases human capital.
  13. 13. Ethics and Social Responsibility  Ethical behavior. – “Good” or “right” as opposed to “bad” or “wrong” in a particular setting. – To agree on whether or not a specific action is ethical or not is not always an easy matter  Is it ethical to withhold information that might discourage a well qualified job candidate from joining your organization  Is it ethical to ask someone to take a job you know will not be good for his/her career progress  Is it ethical to ask so much of people that they have continually have to choose between having a career and having a life  The public demands that people in organizations act according to high moral standards.
  14. 14. Ethics and Social Responsibility • Moral management and Ethics Mindfulness • Scholar Archie B. Carroll draws a distinction between immoral managers, a moral managers, and moral managers  Immoral managers. – Do not subscribe to any ethical principles; pursuit of self-interest. – this manager essentially chooses to act unethically  Amoral managers. – Fails to consider the ethics of a decision or behavior – This manager acts unethically at times but unintentionally – Common form of unethical lapses includes  Prejudice that derives from unconscious stereotypes  Showing bias based on in-group favoritism  Claiming too much personal credit for one’s performance contributions  Moral managers. – Incorporate ethical principles and goals into their personal behavior – For this , ethical behavior is a goal, a standard, and even a matter of routine
  15. 15. Ethics and Social Responsibility • Ethics Mindfulness :  An enriched awareness that causes one to consistently behave with ethical consciousness  A moral manager or moral leader always acts as an ethical role model, communicates ethics value and messages, and champion ethics mindfulness  This results in the “virtuous shift” in an organization culture within which people act ethically as a matter of routine
  16. 16. Ethics and Social Responsibility  Ways of thinking about ethical behavior. – Utilitarian view –– the greatest good for the greatest number of people.  Assess the moral aspects of their decisions in terms of consequences they create  In utilitarianism the need for many outweigh the needs for few – Individualism view –– best serving long-term self-interests.  In principle, at least, someone who acted unethically in the short run such as denying a qualified minority employee a promotion should not succeed in the long run because short-run actions will not be tolerated
  17. 17. Ethics and Social Responsibility  Thus, if everyone operated with long-term self interest in mind , their short–    – – – – – run actions would be ethical Moral-rights view –– respects and protects the fundamental rights of all human beings. This view is tied very closely to to the principle of basic human rights, such as liberty and fair treatment by the law In organizations such principles is reflected by the issues as rights to privacy, due process, freedom of speech Ethical behavior does not violate any of these fundamental human rights Justice view –– fair and impartial in the treatment of all people. Based on the concept of equitable treatment for all concerned Procedural justice is the degree to which rules and procedures specifie4d by the policies are properly followed in all cases to which they are applied Distributive justice the degree to which all people are treated the same under policy Interactional justice is the degree to which people are treated with dignity and respect
  18. 18. Ethics and Social Responsibility  Ethical dilemmas. – Occur when someone must choose whether or not to pursue a course of action that, although offering the potential of personal or organizational benefit or both, may be considered unethical.
  19. 19. Ethics and Social Responsibility  Rationalizations for unethical behavior. – Pretending the behavior is not really unethical or illegal. – Saying the behavior is really in the organization’s or person’s best interest. – Assuming the behavior is acceptable if others don’t find out about it. – Presuming that superiors will support and protect you.
  20. 20. Ethics and Social Responsibility  Organizational social responsibility. – The obligation of organizations to behave in ethical and moral ways as institutions of the broader society. – Managers should commit organizations to: • Pursuit of high productivity. • Corporate social responsibility. – A whistleblower exposes others’ wrongdoings in order to preserve high ethical standards.
  21. 21. Global context 0f OB  Most organizations must achieve high performance within a complex and competitive global environment.  Globalization refers to the complex economic networks of international competition, resource suppliers, and product markets.
  22. 22. Global context 0f OB  Forces of globalization. – Rapid growth in information technology and – – – – – electronic communication. Movement of valuable skills and investments. Increasing cultural diversity. Implications of immigration. Increasing job migration among nations. Impact of multicultural workforces
  23. 23. Global context 0f OB  Globalization is contributing to the emergence of regional economic alliances.  Important regional alliances. – European Union (EU). – North American Free Trade Agreement (NAFTA). – Asia-Pacific Economic Co-operation Forum (APEC).
  24. 24. Global context 0f OB  Outsourcing. – Contracting out of work rather than accomplishing it with a full-time permanent workforce.  Off shoring. – Contracting out work to persons in other countries.  Job migration. – Movement of jobs from one location or country to another
  25. 25. Global context 0f OB  Global managers. – Know how to conduct business in multiple – – – – countries. Are culturally adaptable and often multilingual. Think with a worldview and are able to map strategy in the global context. Have a global attitude. Have a global mindset.
  26. 26. Culture & Cross cultural Understanding  Culture. – The learned, shared way of doing things in a particular society. – The “software of the mind.” – Helps define boundaries between different groups and affects how their members relate to one another. – Cultural intelligence is the ability to identify, understand, and act with sensitivity and effectiveness in cross-cultural situations.
  27. 27. Popular Dimensions of Culture  Language. – Perhaps the most visible aspect of culture. – Whorfian hypothesis — considers language as a major – – – – determinant of thinking. Low-context cultures — the message is conveyed by the words used. High-context cultures — words convey only a limited part of the message. Western cultures are mostly low context cultures Asian and Middle Eastern cultures are low context
  28. 28. Popular Dimensions of Culture  Time orientation. – Polychronic cultures. • Circular view of time. • Time is cyclical and goes around and around • No pressure for immediate action or performance • One will have another chance to pass the same way again. If opportunity is lost today no problem, it may again return tomorrow. • Emphasize present and often do more than one thing at a time
  29. 29. Popular Dimensions of Culture  Time orientation. (cont.) – Monochronic cultures. • Linear view of time. • Past is gone, the present is here briefly and future is almost upon us • Create pressure for action and performance. • People appreciate schedules and appointments, talk about saving and wasting time • Long-range goals and planning is a way for managing future
  30. 30. Popular Dimensions of Culture  Use of space. – Proxemics. • The study of how people use space to communicate. • Reveals important cultural differences. – Concept of personal space varies across cultures. – Personal space can be thought of as the bubble that surround us – Arabs and south Americans shorter distance – North Americans greater distance – Asians even further than North Americans – Space is arranged differently in different cultures. – In Polychronic cultures space is arranged in such a way that many activities can takes place at a time ( Italian and Spanish towns are arranged around central squares “Plazas”) – In Monochronic cultures ( America) towns have traditional main street laid out in linear fashion
  31. 31. Popular Dimensions of Culture  Religion. – A major element of culture. – Can be a very visible aspect of culture. – Influences codes of ethics and moral behavior. – Influences conduct of economic matters.
  32. 32. Values and National Culture – Cultures vary in underlying patterns of values and attitudes. – Hofstede’s five dimensions of national culture: • Power distance. • Uncertainty avoidance. • Individualism-collectivism. • Masculinity-femininity. • Long-term/short-term orientation.
  33. 33. Values and National Culture  Power distance. – The willingness of a culture to accept status and power differences among members. – Respect for hierarchy and rank in organizations. – Example of a high power distance culture — Indonesia. – Example of a low power distance culture — Sweden.
  34. 34. Values and National Culture  Uncertainty avoidance. – The cultural tendency toward discomfort with risk and ambiguity. – Preference for structured versus unstructured organizational situations. – Example of a high uncertainty avoidance culture — France. – Example of a low uncertainty avoidance culture — Hong Kong.
  35. 35. Values and National Culture  Individualism-collectivism. – The cultural tendency to emphasize individual or group interests. – Preferences for working individually or in groups. – Example of an individualistic culture — United States. – Example of a collectivist culture — Mexico.
  36. 36. Values and National Culture  Masculinity-femininity. – The tendency of a culture to value stereotypical masculine or feminine traits. – Emphasizes competition/assertiveness versus interpersonal sensitivity/relationships. – Example of a masculine culture — Japan. – Example of a feminine culture — Thailand.
  37. 37. Values and National Culture  Long-term/short-term orientation. – The tendency of a culture to emphasize futureoriented values versus present-oriented values. – Adoption of long-term or short-term performance horizons. – Example of a long-term orientation culture — South Korea. – Example of a short-term orientation culture — United States.
  38. 38. Understanding Cultural Differences  Understanding cultural differences helps in dealing with parochialism and ethnocentrism. – Parochialism — assuming that the ways of one’s own culture are the only ways of doing things. – Ethnocentrism — assuming that the ways of one’s culture are the best ways of doing things. • It is parochial for a traveling American business man to insist that all his business contacts speak English • It is ethnocentric for him to think that any one who dines with a spoon instead of knife and fork lacks proper table manners
  39. 39. Understanding Cultural Differences • A frame work developed by Fons Trompenaar offers a vantage point in understanding and dealing with cultural differences • He suggests that culture varies the way its members solve problems of three major types 1. Relationship with people 2. Attitudes towards time 3. Attitudes towards the environment • Trompenaar identifies five major cultural differences in how people handle relationships with other people
  40. 40. Understanding Cultural Differences 1.  2. > 3.  4.    Universalism vs. Particularism: Relative emphasis on rules and regulations and consistency versus relationship and flexibility Individualism vs. Collectivism: Relative emphasis on individual freedom and responsibility vs. group interest and consensus Neutral vs. affective Relative emphasis on objectivity and detachment vs. emotion and expressed feelings Specific versus diffuse Specific cultures have large public space, readily let others enter and share and a small private space which they guard closely and share only with close friends Diffuse culture is one in which both public and private space similar in size and guard their public space carefully because entry into public space affords entry into private space In diffuse culture outsiders should respect a persons age, title and background connection. In dealing with people from specific culture, outsiders should get to the and be efficient, minimize titles and achievements that are irrelevant to the situation
  41. 41. Understanding Cultural Differences 5. Achievement versus ascribed  In achievement culture a person is accorded status on how well they have perform their function  In ascription culture status is accorded on the basis of who or what the person is  Ascription culture accord status on age, gender, or social connections