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Lead 705 ppt 1
- 1. Chapter 1: What Is Organizational Behavior?
- 2. A Crisis of Leadership? • Gallup Study: • 70% of full-time workers hate their jobs or have “checked out” • Main contributing factor: their boss • Workers often spread their unhappiness or engage in deviance Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 2
- 3. A Crisis of Leadership? Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 3
- 4. What Is Organizational Behavior? • Organizational behavior (OB): the study of individuals and their behaviors at work • Interdisciplinary and multi-level research • Draws from applied psychology, cultural anthropology, communication, and sociology • Applied science Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 4
- 5. What Is Organizational Behavior? • Hawthorne studies led to a focus on the role of human behavior in organizations • Hawthorne Effect: positive responses in attitudes and performance when researchers pay attention to a particular group of workers Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 5
- 6. What Is Organizational Behavior? • Four essential determinations: • Description--What does the process look like? • Prediction--Will the process occur again? And when? • Explanation--Why is this happening? • Control--Can we change whether or not this happens? Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 6
- 7. Evidence-Based Management • Evidence-based management: The ability to translate research to practice • EBM improves a leader’s decisions by disciplined application of the most relevant and current scientific evidence Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 7
- 8. Evidence-Based Management • Four sources of information: • The best available scientific evidence • The best available organizational evidence • The best available experiential evidence • Organizational values and stakeholders' concerns Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 8
- 9. Evidence-Based Management • The following standards may be applied by leaders using EBM to ask questions and challenge their thinking about their organizations: • Stop treating old ideas as if they were brand new • Be suspicious of “breakthrough” studies and ideas • Develop and celebrate collective brilliance Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 9
- 10. Evidence-Based Management • Emphasize drawbacks as well as virtues • Use success (and failure) stories to illustrate sound practices but not in place of a valid research method • Adopt a neutral stance toward ideologies and theories Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 10
- 11. What Is Critical Thinking? • "Critical thinking calls for persistent effort to examine any belief or supposed form of knowledge in the light of evidence that supports it and the further conclusions to which it tends.” (Glaser, 1941) Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 11
- 12. What Is Critical Thinking? • Critical thinking has three interrelated parts • The elements of thought (reasoning) • The intellectual standards that applied to the elements of reasoning • The intellectual traits associated with a cultivated critical thinker Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 12
- 13. What Is Critical Thinking? • Critical thinking skills: • Rationality • Self-awareness • Honesty • Open-mindedness • Discipline • Judgment Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 13
- 14. Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 14 What Is Critical Thinking?
- 15. The Scientific Method Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 15
- 16. Outcome Variables in Organizational Behavior • Performance and productivity • Work-related attitudes • Employee well-being • Motivation • Employee withdrawal Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 16
- 17. Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 17 Outcome Variables in Organizational Behavior
- 18. Levels of Analysis in Organizational Behavior • Individual level of analysis • Dyad (or two-party) level of analysis • Group (team) level of analysis • Organizational level of analysis • Industry level of analysis Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 18
- 19. Increasing Employee Performance Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 19
- 20. Theory X and Theory Y • “Leader behaviors are influenced by fundamental assumptions and beliefs about human nature. Most managers are not aware of their underlying assumptions that thus, their influence on behavior is pervasive, yet hard to detect.” (McGregor, 1960) Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 20
- 21. Theory X and Theory Y • Theory X • Leaders assume people are lazy • Don’t like to work • Avoid responsibility • Theory Y • Leaders assume people are motivated • Like to work • Will accept responsibility Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 21
- 22. Leadership Implications • Critical Thinking • Analyze your own experiences and behaviors • Understand and analyze the relevance and importance of research findings Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 22
- 23. Leadership Implications • Critical Thinking • Effective leader • Effective manager Scandura, Essentials of Organizational Behavior 2e. © SAGE Publications, 2019. 23
Editor's Notes
- Disgruntled workers have a damaging impact on a company’s bottom line both through their negative behavior and, in extreme cases, through harm to themselves as well as other workers and equipment. Low employee engagement results in a US$350 billion revenue loss in American business. The trickle down effect of recruiting, training, and replacing disengaged workers results in another US$11 billion annual loss.
- Figure 1.1. Employee Engagement Stagnant. Source: Gallup (2016). Employee engagement in U.S. stagnant in 2015. http://www.gallup.com/poll/188144/employee-engagement-stagnant-2015.aspx. January 13, 2016. Employee engagement is integral to success in business.
- Learning Objective 1.1: Define the concept of organizational behavior (OB). Organizational Behavior: Normally this study is applied in an attempt to create more efficient business organizations. The central idea of the study of organizational behavior is that a scientific approach can be applied to the management of workers. A mastery of this field of study will allow leaders to overcome the many challenges of managing a workforce in today’s modern world. Applied social psychology is the study of how people interact in groups and addresses significant challenges facing leaders as organizations use teams more regularly to get things done.
- Learning Objective 1.1: Define the concept of organizational behavior (OB). Most scholars agree that OB originated with the human relations movement ignited by the Hawthorne studies (conducted between 1927 and 1932), which led to a focus on the role of human behavior in organizations. The Hawthorne studies were two studies conducted by Australian-born psychologist Elton Mayo at the Western Electric Company near Chicago. Mayo was interested in how to increase productivity in assembly lines. The first study was designed to examine the effects of lighting in the plants on worker productivity. However, the research team had a surprise. Productivity increased rather than decreased even though the lights were being dimmed. The research team interviewed the workers and learned that the workers appreciated the attention of the research team and felt that they were receiving special treatment. Productivity declined after the researchers left the plant. Dipboye, Robert L., Exploring Industrial & Organizational Psychology: Work & Organizational Behavior (2016). Exploring Industrial & Organizational Behavior, First Edition, Sattvic Publishing. Available at SSRN: https://ssrn.com/abstract=2767463. Mayo, E. (1949). Hawthorne and the Western Electric Company, The social problems of an industrial civilization. New York, NY: Routledge.
- Learning Objective 1.1: Define the concept of organizational behavior (OB). OB is an applied science. The goals of science--any science--are as follows: 1. Description: What does the process look like? 2. Prediction: Will the process occur again? And when? 3. Explanation: Why is this happening? 4. Control: Can we change whether or not this happens? For example, the forecasting of extra workers needed for a toy store during the holiday season is an important process for ensuring the best customer service. Human resource managers have an understanding (a ”description”) of how many customers will visit the store based upon prior holiday seasons (in other words, a theory) and can describe their needs for extra workers. This theory is also fairly high on explanation since the store managers have some understanding of why customers visit their store and how when volume increases. Prediction is important since managers need to project with some accuracy how many extra seasonal workers they will need to hire to ensure that customers will be served and not have long wait times at the cash registers. However, hiring forecasts are not always accurate, resulting in unhappy customers or the hiring of too many seasonal workers that wait idly for customers to visit. In this example, the science is moderate for prediction. For control, one could say that the science is low because there are many reasons why customers may not visit the store that are outside of the organization’s control (e.g., customers may be able to purchase the toys online). This example illustrates why theories are so important to science.
- Learning Objective 1.2: List and give examples of the four sources of information used in evidence-based management (EBM). The term evidence-based was originally employed in the field of medicine to guide how doctors make decisions regarding patient care. EBM improves a leader’s decisions by disciplined application of the most relevant and current scientific evidence.
- Learning Objective 1.2: List and give examples of the four sources of information used in evidence-based management (EBM). Although many definitions of EBM are available, this is the most frequently quoted and widely used: EBM means making decisions about the management of employees, teams, or organizations through the conscientious, explicit, and judicious use of four sources of information: 1.The best available scientific evidence--for example, research published on OB 2.The best available organizational evidence--for example, interviews or surveys completed by people in an organization 3.The best available experiential evidence--for example, the intuition of the leader and his or her expert opinions 4.Organizational values and stakeholders’ concerns--for example, stock price or groups that focus on whether the organization employs environmentally friendly practices Source: Briner, R. B., Denyer, D., & Rousseau, D. M. (2009). Evidence-based management: Construct cleanup time? Academy of Management Perspectives, 4, 19–32.
- Learning Objective 1.2: List and give examples of the four sources of information used in evidence-based management (EBM). Stop treating old ideas as if they were brand new. This has resulted in a cynical workforce that may view innovations from leaders as short-term fads (e.g., positive changes such as total quality management, teams, and engagement). Progress cannot be made by treating old ideas as new ones; cynicism could be reduced by presenting ideas that have been able to “stand the test of time” as best practices rather than new ideas. Be suspicious of “breakthrough” studies and ideas. Question whether some new ideas in management are really breakthroughs, and be wary of claims about new management principles that may be either overstated or understated. Develop and celebrate collective brilliance. In theory, a diverse collection of independent decision makers (although not expert) makes better predictions on the average compared to an expert decision maker. In a sense, this is how the “ask the audience” lifeline works on the game show, Who Wants to be a Millionaire? A contestant can ask the audience for the answer to a question and the audience votes. The contestant then sees the percentages of people that chose each answer. It’s interesting to see that often the audience is right. The contestant is thus gathering the collective brilliance of a random group of decision makers. See the following box for another method that may be used to develop collective brilliance: the Delphi decision-making method. Source: Pfeffer, J., & Sutton, R. (2006, January). Evidence-based management. Harvard Business Review, 1–16.
- Learning Objective 1.2: List and give examples of the four sources of information used in evidence-based management (EBM). 4. Emphasize drawbacks as well as virtues. An interesting example of this is the marketing of an energy drink called Cocaine. Cocaine contains three and a half times the amount of caffeine as Red Bull. It was pulled from U.S. shelves in 2007, after the FDA declared that its producers, Redux Beverages, were marketing their drink as an alternative to street drugs, and this was determined to be illegal. The FDA pointed to the drink’s labeling and advertising, which included the statements “Speed in a Can” and “Cocaine—Instant Rush.” Despite the controversy, Redux Beverages continued to produce and market the beverage in limited markets and online. 5. Use success (and failure) stories to illustrate sound practices but not in place of a valid research method. For example, Circuit City went bankrupt in 2009 but was a “great company” in the now-classic book Good to Great. What happened to Circuit City? Alan Wurtzel, the former CEO and the son of the founder, saw the threats coming from Best Buy and Amazon in the early 2000s, and he knew the company was headed for decline. “After I left, my successors became very focused on the bottom line—the profit margin,” Wurtzel told a group at the University of Richmond. “They were too focused on Wall Street. That was the beginning of the end,” said the former CEO as he recalled the rise and fall of the great company. The lesson here is that no matter how great a company is, care must be taken not to simply copy what they do in today’s changing business environment. There is no substitute for a careful analysis and diagnosis before embarking on a search for solutions. 6. Adopt a neutral stance toward ideologies and theories. An example of this is that most management “gurus” are from North America (e.g., Peter Drucker, Tom Peters, Ken Blanchard). This is not to say that their ideology isn’t useful. However, in a global world, EBM demands that we question whether ideology developed in North America applies abroad. EBM would also suggest that we search for theories developed overseas to locate experts from other countries with important ideas. Source: Pfeffer, J., & Sutton, R. (2006, January). Evidence-based management. Harvard Business Review, 1–16.
- Learning Objective 1.3: Define critical thinking, and explain the critical thinking skills leaders need.
- Learning Objective 1.3: Define critical thinking, and explain the critical thinking skills leaders need. Critical thinking is a mode of thinking about a problem we face where the problem solver improves the quality of the process by taking control of it and applying rigorous standards. The process has been described has having three interrelated parts; 1. The elements of thought (reasoning) 2. The intellectual standards that applied to the elements of reasoning 3. The intellectual traits associated with a cultivated critical thinker
- Learning Objective 1.3: Define critical thinking, and explain the critical thinking skills leaders need. Critical thinking skills are applied to sort through all of the information gathered and then prioritize it (and even discard evidence that appears to be invalid or irrelevant to the problem). “Critical thinking is, in short, self-directed, self-disciplined, self-monitored, and self-corrective thinking. It requires rigorous standards of problem solving and a commitment to overcome the inclination to think that we have all of the answers.” (Paul, 2008)
- Learning Objective 1.3: Define critical thinking, and explain the critical thinking skills leaders need. Table 1.1. Critical Thinking Skills
- Learning Objective 1.4: Describe the scientific method used in OB research. Figure 1.2. The Scientific Method as an Ongoing Process. Source: Garland, Jr., T. (2016). "The Scientific Method as an Ongoing Process". University of California Riverside. Archived from the original on 19 Aug 2016.
- Learning Objective 1.5: Discuss five types of outcome variables studied in OB. There are five types of outcome variables studies in OB: Performance and Productivity Quality of work or quantity of units Work-Related Attitudes Organizational commitment Job satisfaction Employee engagement 3. Employee Well-Being Passive leadership Being asked to do an illegitimate task: One outside of the boundaries of a person’s job 4. Motivation Extrinsic motivation: Based on compensation rewards from organization Intrinsic motivation: Related to value of work itself Prosocial motivation: New concept, degree which employees behave in a way that benefits society as a whole 5. Employee Withdrawal: Availability of outside employment opportunities Low job satisfaction and engagement Improved economy and job market Absenteeism: When workers may not come to work because they are dissatisfied and there are few alternative jobs available
- Learning Objective 1.5: Discuss five types of outcome variables studied in OB. Table 1.2. A Measure of Job Satisfaction: The Hoppock Job Satisfaction Blank
- Learning Objective 1.6: Compare the levels of analysis in OB research. There are five Level of Analysis in OB: Individual Level of Analysis--An individual’s personality and experiences would explain much of their behavior, and differences in these variables among people would help explain why people behave differently. Dyad (or two-party) Level of Analysis--An example would be a mentor and a protégé. Group (Team) Level of Analysis--A team that has high-performance norms that encourage a team member to perform at their best. Organizational Level of Analysis--Organizations with strong cultures, the cultural characteristics can have a profound influence on an individual member’s behavior. To illustrate this, one needs to look no further than the U.S. Marine Corps. The Marine Corps has a strong culture that includes pride and this inspires Marines to excel (this is evident in their recruiting ads: “The few, the proud, the Marines”). Industry Level of Analysis--Where comparisons are made across different industries (this is more typical for research in strategic management than OB).
- Learning Objective 1.7: Develop plans for using OB research to improve employee job performance. Table 1.3 provides examples of hypotheses at the different levels of analysis. This table illustrates how OB research at all levels may help leaders improve employee performance. As this table illustrates, understanding OB has strong influences on employee performance. Thus, understanding behavior in organizations is every manager’s job. But some managers engage in behaviors that decrease employee performance. One of the reasons for why managers do this is because they hold subconscious assumptions regarding employees’ willingness to work hard.
- Learning Objective 1.8: Compare and contrast Theory X and Theory Y assumptions. One of the most influential books in OB is The human side enterprise, by Douglas McGregor. This book is important because it presented the idea that leader behaviors are influenced by fundamental assumptions and beliefs about human nature. Most managers are not aware of their underlying assumptions that thus, their influence on behavior is pervasive, yet hard to detect.
- Learning Objective 1.8: Compare and contrast Theory X and Theory Y assumptions. Most managers are not aware of their underlying assumptions; thus, their influence on behavior is pervasive, yet hard to detect. These assumptions are divided into pessimistic (Theory X), and optimistic (Theory Y) views of human nature. Theory X leaders assume that people are basically lazy, don’t like to work, and avoid responsibility. This type of manager’s related behaviors are being directive, engaging in surveillance, and coercion. Theory Y leaders assume that people are internally motivated, like to work and will accept responsibility. These managers’ related behaviors are to allow discretion, participation and the encouragement of creativity on the job.
- Examine your own assumptions, attitudes, and behaviors by applying critical thinking. Think critically yourself and decide whether this approach will be a useful one for you to adopt into your management skill set. Apply your own critical thinking skills based upon your own experiences with behavior in organizations (this is the evidence-based approach to learning OB).
- For you to become a more effective leader, you will need to learn to think critically about the material you encounter. This may go against your intuition which tells you to “see what you want to see” and confirm what you already believe. For example, you may think that OB is just all “touchy-feely” stuff that has no practical value. Try to keep an open mind, and overcome any biases or preconceived ideas you may have about leadership or management.