Top Banner
Current Issues In Organizational Behavior Chapter 2
46
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: Lecture 2 organization behavior

Current Issues In Organizational Behavior

Chapter 2

Page 2: Lecture 2 organization behavior

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?

Page 3: Lecture 2 organization behavior

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

Page 4: Lecture 2 organization behavior

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

Page 5: Lecture 2 organization behavior
Page 6: Lecture 2 organization behavior

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?

Page 7: Lecture 2 organization behavior

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.

Page 8: Lecture 2 organization behavior

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

Page 9: Lecture 2 organization behavior

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.

Page 10: Lecture 2 organization behavior
Page 11: Lecture 2 organization behavior

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

Page 12: Lecture 2 organization behavior

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.

Page 13: Lecture 2 organization behavior

Multiculturalism and Diversity

Page 14: Lecture 2 organization behavior

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.

Page 15: Lecture 2 organization behavior

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.

Page 16: Lecture 2 organization behavior

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

Page 17: Lecture 2 organization behavior

Ethics and Social Responsibility

• Ethics Mindfulness :An enriched awareness that causes one to

consistently behave with ethical consciousnessA 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

Page 18: Lecture 2 organization behavior
Page 19: Lecture 2 organization behavior

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

Page 20: Lecture 2 organization behavior

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

Page 21: Lecture 2 organization behavior

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.

Page 22: Lecture 2 organization behavior

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.

Page 23: Lecture 2 organization behavior

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.

Page 24: Lecture 2 organization behavior

Global context 0f OBMost 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.

Page 25: Lecture 2 organization behavior

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

Page 26: Lecture 2 organization behavior

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).

Page 27: Lecture 2 organization behavior

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

Page 28: Lecture 2 organization behavior

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.

Page 29: Lecture 2 organization behavior

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.

Page 30: Lecture 2 organization behavior

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

Page 31: Lecture 2 organization behavior

Popular Dimensions of CultureTime 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

Page 32: Lecture 2 organization behavior

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

Page 33: Lecture 2 organization behavior

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

Page 34: Lecture 2 organization behavior

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.

Page 35: Lecture 2 organization behavior

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.

Page 36: Lecture 2 organization behavior

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.

Page 37: Lecture 2 organization behavior

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.

Page 38: Lecture 2 organization behavior

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.

Page 39: Lecture 2 organization behavior

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.

Page 40: Lecture 2 organization behavior

Values and National Culture Long-term/short-term orientation.– The tendency of a culture to emphasize future-

oriented 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.

Page 41: Lecture 2 organization behavior
Page 42: Lecture 2 organization behavior

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

Page 43: Lecture 2 organization behavior

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 people2. Attitudes towards time3. Attitudes towards the environment• Trompenaar identifies five major cultural

differences in how people handle relationships with other people

Page 44: Lecture 2 organization behavior

Understanding Cultural Differences1. Universalism vs. Particularism: Relative emphasis on rules and regulations and consistency versus relationship

and flexibility2. Individualism vs. Collectivism:> Relative emphasis on individual freedom and responsibility vs. group interest

and consensus3. Neutral vs. affective Relative emphasis on objectivity and detachment vs. emotion and expressed

feelings4. 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

Page 45: Lecture 2 organization behavior

Understanding Cultural Differences5. Achievement versus ascribedIn 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

Page 46: Lecture 2 organization behavior