Chapter 1 Introduction to the Field of Organizational Behaviour

INTRODUCTION TO THE FIELD OF ORGANIZATIONAL BEHAVIOUR

LEARNING OBJECTIVES
After reading this chapter, students should be able to: Define organizational behaviour and give three reasons for studying this field of inquiry. Discuss how globalization influences organizational behaviour. u!!arize the apparent benefits and challenges of telewor". Identify changes in Canada#s wor" force in recent years. Describe e!ployability and contingent wor". $%plain why values have gained i!portance in organizations. Define corporate social responsibility and argue for or against its application in organizations. Identify the five anchors on which organizational behaviour is based. Diagra! an organization fro! an open syste!s view. Define "nowledge !anage!ent and intellectual capital. Identify specific ways that organizations acquire and share "nowledge.

CHAPTER GLOSSARY
communities of practice Infor!al groups bound together by shared e%pertise and passion for a particular activity or interest. contingency approach &he idea that a particular action !ay have different consequences in different situations. contingent work 'ny (ob in which the individual does not have an e%plicit or i!plicit contract for long) ter! e!ploy!ent* or one in which the !ini!u! hours of wor" can vary in a nonsyste!atic way. corporate social responsibility (CSR) 'n organization#s !oral obligation towards its sta"eholders. employability 'n e!ploy!ent relationship in which people are e%pected to continually develop their s"ills to re!ain e!ployed. ethics &he study of !oral principles or values that deter!ine whether actions are right or wrong and outco!es are good or bad.

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gl o b a l i z a t i o n When an orga niz a tio n ext e n d s its activities to other part s of the world, actively particip ati n g in other m ark e t s , and com p e ti n g agai n st orga niz a ti on s locat e d in other count ri e s. graf ti n g The proc e s s of acquiring knowled g e by hiring individu al s or buyin g entire com p a ni e s . gro u n d e d th e o r y A proc e s s adop t e d in most qualit ative res e a r c h of dev el o pi n g knowled g e throu g h the const a n t interpl a y of dat a collection, analysis, and theory dev el o p m e n t . intellectual capital &he su! of an organization#s hu!an capital* structural capital* and relationship capital. knowledge management 'ny structured activity that i!proves an organization#s capacity to acquire* share* and use "nowledge in ways that i!prove its survival and success. op e n sy s t e m s rga niz ati on s that take their sust e n a n c e from the environ m e n t and, in turn, affect that environ m e n t throu g h their outp ut . org a n i z a t i o n a l be h a v i o u r (OB) The stud y of what peo pl e think, feel, and do in and arou n d orga niz a tion s.

org a n i z a t i o n a l cult u r e The basic patt e r n of shar e d assu m p t i o n s , value s, and beliefs gover ni n g the way em ploye e s within an orga niz a ti on think abou t and act on probl e m s and opport u ni ti e s. org a n i z a t i o n a l lear ni n g The knowled g e m a n a g e m e n t proc e s s in which orga niz a ti on s acquir e, shar e, and use knowled g e to succ e e d . org a n i z a t i o n a l me m o r y The stora g e and pres e r v a ti o n of intellect u al capit al. org a n i z a t i o n s !roup s of peopl e who work interd e p e n d e n t l y toward som e purpo s e . sci e n t i f i c m e t h o d A set of principle s and proc e d u r e s that help res e a r c h e r s to syst e m a t i c ally und er s t a n d previou sl y unex pl ai n e d eve n t s and condition s. st a k e h o l d e r s "har e h ol d e r s, cust o m e r s , sup pliers, gover n m e n t s , and any other group s with a vest e d inter e s t in the orga niz a ti on. tel e w o r k i n g Working from hom e , usu ally with a com p u t e r conn e c ti o n to the office# also called telecommuting val u e s "tabl e, long$ lasting beliefs abo ut what is import a n t in a variet y of situa tion s. virtu al te a m s Tea m s whos e me m b e r s oper a t e acros s spac e, tim e, and orga niz a ti on al bou n d a ri e s and linked throu g h inform a tio n tech n ol o gi e s to achi ev e orga niz a ti on al tasks.

CHAPTER SYNOPSIS
Organizational behaviour is a relatively young field of inquiry that studies what people thin"* feel* and do in and around organizations. Organizations are groups of people who wor" interdependently toward so!e purpose. OB concepts help us to predict and understand organizational events* adopt !ore accurate theories of reality* and influence organizational events. &his field of "nowledge also i!proves the organization#s financial health. &here are several trends in organizational behaviour. ,lobalization requires corporate decision !a"ers to be !ore sensitive to cultural differences* and see!s to be associated with the recent rise in (ob insecurity* wor" intensification* and other sources of wor")related stress. Infor!ation technology blurs the te!poral and spatial boundaries between individuals and the organizations that e!ploy the!. It has contributed to the growth of telewor" )) an alternative wor" arrange!ent where e!ployees wor" at ho!e or a 2

Chapter 1 Introduction to the Field of Organizational Behaviour

re!ote site* usually with a co!puter connection to the office. Infor!ation technology is also a vital ingredient in virtual tea!s )) cross)functional groups that operate across space* ti!e* and organizational boundaries. 'nother trend in organizations is the increasingly diverse wor"force. Diversity potentially i!proves decision !a"ing* tea! perfor!ance* and custo!er service* but it also presents new challenges. ' fourth trend is the e!ploy!ent relationships that have e!erged fro! the changing wor" force* infor!ation technology* and globalization forces. $!ploy!ent relationship trends include e!ployability and contingent wor". -alues and ethics represent the fifth trend. In particular* co!panies are learning to apply values in a global environ!ent* and are under pressure to abide by ethical values and higher standards of corporate social responsibility. Organizational behaviour scholars rely on a set of basic beliefs to study organizations. &hese anchors include beliefs that OB "nowledge should be !ultidisciplinary and based on syste!atic research* that organizational events usually have contingencies* that organizational behaviour can be viewed fro! three levels of analysis .individual* tea!* and organization/* and that organizations are open syste!s. &he open syste!s anchor suggests that organizations have interdependent parts that wor"

together to continually !onitor and transact with the e%ternal environ!ent. &hey acquire resources fro! the environ!ent* transfor! the! through technology* and return outputs to the environ!ent. &he e%ternal environ!ent consists of the natural and social conditions outside the organization. $%ternal environ!ents are generally !uch !ore turbulent today* so organizations !ust beco!e adaptable and responsive. 0nowledge !anage!ent develops an organization#s capacity to acquire* share* and use "nowledge in ways that i!proves its survival and success. Intellectual capital is "nowledge that resides in an organization* including its hu!an capital* structural capital* and relationship capital. It is a fir!#s !ain source of co!petitive advantage. Organizations acquire "nowledge through grafting* individual learning* and e%peri!entation. 0nowledge sharing occurs !ainly through various for!s of co!!unication. 0nowledge sharing includes co!!unities of practice* networ"s where people share their e%pertise and passion for a particular activity or interest. 0nowledge use occurs when e!ployees realize that the "nowledge is available and that they have enough freedo! to apply it. Organizational !e!ory refers to the storage and preservation of intellectual capital.

POWERPOINT SLIDES
Canadian Organizational Behaviour includes a co!plete set of 1icrosoft +ower+oint 2 files for each chapter. .+lease contact your 1c,raw)3ill 4yerson representative to find out how instructors can receive these files./ In the lecture outline that follows* a thu!bnail illustration of each +ower+oint slide for this chapter is placed beside the corresponding lecture !aterial. &he slide nu!ber helps you to see your location in the slide show sequence and to s"ip slides that you don#t want to show to the class. .&o (u!p ahead or bac" to a particular slide* (ust type the slide nu!ber and hit the $nter or 4eturn "ey./ &he transparency !asters for this chapter are very si!ilar to the +ower+oint files.

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LECTURE OUTLINE (with Pow !Poi"t #$i% #&

INTRO !CTION TO T"# $I#% O$ OR&'NI('TION'% )#"'*IO!R
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$our Seasons "otels and Resorts ha,e le,eraged the power of organi-ational beha,iour to become one of the top lu.ury hotels in the world as well as one of the best places to work/ 5 C$O Isadore harp e!phasizes the i!portance of relying on the creativity of its staff and !aintaining a culture that supports e!ployee involve!ent. 5 Four easons pays close attention to e!ployee co!petencies* corporate culture* leadership* co!!unication* !otivation* organizational structure

)o'! S ,#o"# ,"% OB S$i% 2

T"# $I#% O$ OR&'NI('TION'% )#"'*IO!R

Organi-ational beha,iour (O)) 00 study of what people think1 feel1 and do in and around organi-ations/
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Organi-ations 00 groups of people who work interdependently toward some purpose 5 tructured patterns of interaction )) e%pect each other to co!plete certain tas"s in a coordinated way 5 Organizations have purpose )) e.g. producing oil fro! oil sands or selling boo"s on the Internet.

Chapter 1 Introduction to the Field of Organizational Behaviour

2"3 ST! 3 OR&'NI('TION'% )#"'*IO!R4

5/ Satisfy the need to understand and predict 5 3elps us figure out why organizational events happen
Wh0 St'%0 OB/ S$i% 1

6/ "elps us to test personal theories 5 3elps to question and rebuild personal theories 7/ Influence our en,ironment 5 I!proves our ability to wor" with people and influence organizational events

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5/ &lobali-ation 5 '+* the ,er!an software giant and others operate in a global econo!y )) activities in other parts of the world* participates in other !ar"ets* co!petes against organizations located elsewhere 5 4equires new organizational structures and different for!s of co!!unication 5 'dds !ore diversity to the wor"force. 5 Increases co!petitive pressures* !ergers* wor" intensification and de!ands for wor" fle%ibility fro! e!ployees. 6/ Information Technology 9 O) 5 4e)designs (obs* facilitates co!petitive advantage through "nowledge !anage!ent. 5 &elewor" .teleco!!uting/ 6alternative wor" arrange!ent )) wor"ing fro! ho!e* usually with a co!puter connection to the office )) need to replace face ti!e with perfor!ance output )) changes e!ploy!ent relationship e%pectations 5 -irtual tea!s )) operate across space* ti!e* and organizational boundaries with !e!bers who co!!unicate !ainly through electronic technologies

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7/ Changing 2ork $orce 5 1ore diversity )) pri!ary categories 6 gender* age* ethnicity* etc. )) secondary categories )) so!e control over .eg. education* !arital status/ )) !ore wo!en in wor"force )) new age cohorts .eg. ,eneration)7* ,eneration 8/ 5 I!plications )) leverage diversity advantage .e.g. decision !a"ing* provide better custo!er service/. )) ad(ust to the new wor"force )) e.g. ,en)7 e!ployees value fle%ibility and opportunities to use new technology9 ,en)8 e!ployees e%pect responsibility and involve!ent. :/ #merging employment relationships 5 $!ployability )) !any tas"s* not a specific (ob )) need to continuously learn s"ills 5 Contingent wor" )) no e%plicit or i!plicit contract for long)ter! e!ploy!ent* or !ini!u! hours of wor" can vary in a nonsyste!atic way ;/ 2orkplace *alues and #thics 5 -alues 6 stable* long)lasting beliefs about what is i!portant. 5 $thics )) the study of !oral principles or values that deter!ine whether actions are right or wrong and outco!es are good or bad

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Chapter 1 Introduction to the Field of Organizational Behaviour

COR+OR'T# SOCI'% R#S+ONSI)I%IT3 (CSR)

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5 Corporate social responsibility )) an organization#s !oral obligation toward all of its sta"eholders 5 ta"eholders )) shareholders* custo!ers* suppliers* govern!ents* and any other groups with a vested interest in the organization 5 &riple botto! line )) part of corporate social responsibility )) supporting econo!ic* social* and environ!ental spheres of sustainability 5 -arious sta"eholders .(ob applicants* current e!ployees* and suppliers/ associate with fir!s based on their C 4 5 1any fir!s tal" about their C 4* but few practise C 4 or have their actions evaluated

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5/ 8ultidisciplinary anchor 5 1any OB concepts adopted fro! other disciplines )) e.g. psychology concepts in !otivation* perceptions )) e!erging fields: co!!unication* infor!ation syste!s* !ar"eting* wo!ens# studies 5 OB is developing its own !odels and theories* but needs to continue scanning other fields for ideas.

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6/ Systematic research anchor 5 OB researchers rely on scientific !ethod )) a set of principles and procedures that help researchers syste!atically understand previously une%plained events and conditions. 5 OB also adopting a grounded theory approach 6 dyna!ic and cyclical approach that provides constant interplay between data gathering and developing theoretical concepts. 7/ Contingency anchor 5 ' particular action !ay have different consequences in different situations )) no single solution is best in all circu!stances 5 ;eed to diagnose the situation and select best strategy under those conditions 5 <niversal theories welco!ed where contingency theories offer little advantage :/ 8ultiple le,els of analysis anchor 5 OB issues can be studied fro! individual* tea!* and=or organizational level 5 &opics identified at one level* but usually relate to all three levels ;/ Open systems anchor 5 Open syste!s )) organizations consist of interdependent parts that wor" together to continually !onitor and transact with the e%ternal environ!ent 5 4eceives inputs and transfor!s the! through technology into outputs that are returned to the e%ternal environ!ent 5 o!e output valued .services/* but other output have adverse effects .eg.* layoffs* pollution/ 5 $%ternal environ!ent )) natural and social conditions outside the organization )) sta"eholders 6 anyone with a vested interest in the organization )) environ!ent is increasingly turbulent 6 rapid change 5 Organizations need to adapt to e%ternal environ!ent 5 ;eed to coordinate subsyste!s and be aware of unintended consequences

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Chapter 1 Introduction to the Field of Organizational Behaviour

<NO2%# &# 8'N'&#8#NT

'ny structured acti,ity that impro,es an organi-ation=s capacity to ac>uire1 share1 and use knowledge for its sur,i,al and success
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Intellectual capital 5 0nowledge residing in the organization )) su! of its hu!an* structural* and relationship capital 1. 3u!an capital )) e!ployees possess and generate >. tructural capital )) captured in syste!s and structures ?. 4elationship capital )) value derived fro! e%ternal sta"eholders .eg.* custo!er loyalty/

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<nowledge management at Clarica %ife Insurance Company 5 Clarica @ife Insurance Co!pany uses its co!pany)wide Intranet .called Clarica Connects/ to help agents develop and share their e%pertise in ways that generate innovative solutions. 5/ <nowledge ac>uisition 00 organi-ation?s ability to e.tract information and ideas from its en,ironment as well as through insight 5 ,rafting )) acquiring "nowledge by hiring individuals or buying entire co!panies 5 Individual learning )) learning about e%ternal environ!ent 5 $%peri!entation )) creativity* insight 6/ <nowledge sharing 00 distributing knowledge to where it is needed in the organi-ation 5 Co!!unication )) intranets* face)to)face* tea!s* etc. )) co!!unities of practice )) infor!al groups bound together by shared e%pertise and passion for a particular activity or interest 5 4ewards )) encourages info sharing

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7/ <nowledge use 5 0nowledge awareness 6 "now that relevant "nowledge is available 5 Freedo! to apply "nowledge Organi-ational memory 00 storage and preser,ation of intellectual capital 00 includes employee knowledge and embedded knowledge
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Retaining intellectual capital 5 0eeping good e!ployees 5 &ransferring "nowledge fro! one person to the ne%t 5 &ransferring hu!an capital to structural capital Organi-ations also need to @unlearnA 5 Cast off routines and patterns of behaviour that are no longer appropriate

TRANSPARENCY @ASTERS
&ransparency 1.1: Ahat are OrganizationsB &ransparency 1.>: Ahy tudy Organizational BehaviourB &ransparency 1.?: &rends: ,lobalization &ransparency 1.C: &rends: Infor!ation &echnology &ransparency 1.D &rends: Aor"place Diversity &ransparency 1.E: &rends: $!ploy!ent 4elationship &ransparency 1.F: $!ployability vs Gob ecurity &ransparency 1.H: &rends: Aor"place -alues I $thics &ransparency 1.J: Corporate ocial 4esponsibility &ransparency 1.1K: Organizational. Behaviour 'nchors &ransparency 1.11: Open yste!s 'nchor of OB &ransparency 1.1>: 0nowledge 1anage!ent Defined &ransparency 1.1?: Intellectual Capital &ransparency 1.1C: 0nowledge 1anage!ent +rocesses &ransparency 1.1D: Organizational 1e!ory Defined

Chapter 1 Introduction to the Field of Organizational Behaviour

SOLUTIONS TO DISCUSSION AUESTIONS

1. LOrganizational behaviour see!s to get !ore respect fro! people who have been in the wor"place a while than fro! students who are (ust beginning their careers.M Ahy would the "nowledge of OB be i!portant to those of us who specialize in a field such as accounting* !ar"eting* engineering* etc.B &his chapter begins by saying that this boo" is about people wor"ing in organizations. 1any individuals will specialize in a distinct field of study and be pri!arily focused on acquiring technical "nowledge and s"ills in this chosen field. 8ou !ay thin" of this technical "nowledge=s"ills as providing LwhatM you need to "now and be able to do to be successful in your chosen field. OB "nowledge benefits us by addressing the people issues needed to apply technical "nowledge and s"ills. 0nowledge of OB provides valuable "nowledge of LhowM to address these people issues when applying accounting* !ar"eting* engineering and other ideas in organizational settings. <lti!ately* an individual#s career success !ay be largely deter!ined by the ability to understand and apply concepts in !otivation* co!!unication* tea! dyna!ics and other OB topics. >. @oo" through the list of chapters in this te%tboo" and discuss how globalization could influence each organizational behaviour topic. &his is an open)ended question which could be used as an e%ercise activity with subsequent class discussion. &he !ain ob(ective is to help students understand how globalization has profound i!plications for behaviour in organizations. 3ere are so!e of the topics lin"ed to globalization. tudents will certainly identify others: 5 5 5 5 5 5 5 5 5 5 &ea!s $!ployee !otivation +erception -alues Co!!unication tress Co!!unicating in organizational settings Interpersonal conflict @eadership Organizational change ?. LOrganizational theories should follow the contingency approach.M Co!!ent on the accuracy of this state!ent. OB theories !ust be si!ple* yet accurate. Ahile si!plicity calls for universal theories* accuracy usually requires the contingency approach because !ost hu!an behaviour is too co!ple% to understand sufficiently through universal .i.e.* one best way/ theories. Contingency theories are !ore refined because they recognize that environ!ental and personal characteristics !oderate !ost cause) effect relationships. In other words* while it would be preferable to use universal theories for the sa"e of si!plicity* we often !ust rely on contingency theories to sufficiently understand and predict organizational behaviour. C. $!ployees in the City of Calgary#s water distribution unit were put into tea!s and encouraged to find ways to i!prove efficiency. &he tea!s boldly crossed depart!ental boundaries and areas of !anage!ent discretion in search of proble!s. $!ployees wor"ing in other parts of the City of Calgary began to co!plain about these intrusions. 1oreover* when so!e tea! ideas were i!ple!ented* the city !anagers discovered that a dollar saved in the water distribution unit !ay have cost the organization two dollars elsewhere. %se the ope n syst e m s anc h or to explain what hap p e n e d her e N;O&$: &his discussion question is based on a real incident in Calgary. For details* see: B. heehy* L' ;ear)4un &hing: 'n Inside @oo" at a +ublic) ector +roductivity +rogra!*M National Productivity Review* pring 1JHD* pp. 1?J)1CD.O &his incident illustrates that organizations are open syste!s with !any interdependent parts that function as a whole to achieve a set of goals. &his city has !any subunits with close lin"s to each other. Ahen the water distribution unit e!ployees tried to i!prove efficiency* the interdependence of these subsyste!s beca!e apparent. o!e of the actions that i!proved productivity in one area sent ripples through other parts of the organization. In other words* other depart!ents and subunits had to adapt to changes i!ple!ented in the &D area. Indeed* savings in one area so!eti!es resulted in increased costs in another area.

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D.

'fter hearing a se!inar on "nowledge !anage!ent* an oil co!pany e%ecutive argues that this perspective ignores the fact that that oil co!panies could not rely on "nowledge alone to stay in business. &hey also need physical capital .such as pu!ps and drill bits/ and land .where the oil is located/. In fact* these two !ay be !ore i!portant than what e!ployees carry around in their heads. Discuss the !erits of the oil e%ecutive#s co!!ents. 'lthough less co!!on* !any e%ecutives still see value in land and capital. &hey give lip service to the idea that L+eople are our !ost value assetsM but still don#t understand that land and capital have little value without people. For instance* this oil co!pany would not have found land with oil deposit#s unless it had the "nowledge to find that oil. It could not operate the equip!ent to e%tract and refine the oil unless it had enough "nowledge. &he e%ecutive#s co!!ent that co!panies could not re!ain in business with only "nowledge. On the contrary* so!e of the wealthiest organizations .including !any software co!panies and consulting fir!s/ have few physical assets. Ban"s are selling off their corporate headquarters because their co!petitive advantage )) their source of wealth )) is found in "nowledge. Oil co!panies are also outsourcing several aspects of physical assets. &heir ships are often owned by others. &he drilling equip!ent is leased or owned by co!panies that specialize in drilling. &he !a(or oil co!panies today are !ainly in the "nowledge business )) scouting for oil or !ar"eting what others have found and e%tracted. &his question also suggests a subtle !isunderstanding by the e%ecutive about "nowledge !anage!ent. 'lthough !uch corporate "nowledge resides in the brains of its e!ployees .called hu!an capital/* it also resides in the organization#s syste!s and structures ."nown as structural capital/.

suppliers* and other e%ternal sources that provide added value. 4etaining intellectual capital refers to the discussion in the te%tboo" about retaining organizational !e!ory. &his includes "eeping good e!ployees and syste!atically transferring their hu!an capital into structural capital when they !ust leave. It also includes docu!entation )) bringing out hidden "nowledge* organizing it* and putting it in a for! that can be available to others. It also includes e!bedding "nowledge in the organization#s syste!s and structures. F. Ahat effect* if any* does the increasing diversity of the wor"force have on !anaging and wor"ing in organizationsB 1ost organizations in Canada have an increasingly diverse !ulticultural wor"force. Benefits of this increasing de!ographic diversity include increased organizational effectiveness due to being able to bring together diverse points of view. ' diverse wor"force !ay also be able to provide better custo!er service to a diverse custo!er base. In addition* diversity !ay beco!e the organization#s co!petitive advantage by i!proving decision)!a"ing and tea! perfor!ance on co!ple% tas"s. +otential challenges resulting fro! a diverse wor"force include increases in value)based conflict a!ong e!ployees and cross)cultural co!!unication issues. In addition* !anagers will need to continuously test to ensure that OB practices related to wor" tea!s* e!ployee involve!ent* perfor!ance)based rewards and other applications are effective.

E.

Fully describe intellectual capital* and e%plain how an organization can retain this capital. Intellectual capital is the su! of an organizationPs hu!an capital* organizational capital* and relationship capital. u!an capital refers to the "nowledge that e!ployees possess and generate. "tructural capital is the "nowledge captured and retained in an organizationPs syste!s and structures. Relationship capital is the value derived fro! satisfied custo!ers* reliable

Chapter 1 Introduction to the Field of Organizational Behaviour

H.

Find two recent news ite!s and e%plain how this infor!ation relates to corporate social responsibility. Increasingly* Canadians believe that business e%ecutives have a responsibility to consider how their decisions will i!pact their e!ployees* co!!unities and the country. Corporate social responsibility refers to an organization#s !oral obligation toward all of its sta"eholders. $ncourage students to loo" for news ite!s that describe e%a!ples of an organization de!onstrating=not de!onstrating high levels of !oral obligation. Be prepared to facilitate an open)ended discussion. &he following questions !ay be helpful to guide this discussion: 1. >. ?. Ahat event or organizational decision was identified in the news ite!B Ahat sta"eholder.s/ is=are i!pacted by the event or decision describedB Ahat effect did the event or decision have on each of these sta"eholdersB

Ahat long)ter! consequence .positive or negative/ !ay the organization e%perience as a result of this event=decisionB

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PHOTO CAPTION CRITICAL THIN?ING AUESTIONS

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Q: In your opinion* what organizational behaviour concepts described in this boo" would have the greatest influence on the success of yncrude and other !a!!oth pro(ectsB ': &his is a question for classroo! debate. o!e students !ight say that this photo caption e!phasizes organizational structure. Others !ight suggest that co!!unication plays a !a(or role in the success of !a(or pro(ects. &ea!s will li"ely be !entioned as another OB concept.

V,"(o'. ! Cit0 S,.i"+# C! %it U"io"

Q: Ahy do organizations such as -anCity apply the triple botto! line* whereas !ost co!panies in Canada do notB ': tudents !ay need to speculate so!ewhat on the answer to this question. &he !ost li"ely answer is that !any corporate leaders are so focused on short)ter! shareholder value that they fail to see that satisfying the needs of other sta"eholders is often in the best long)ter! interest of shareholders. 1oreover* these leaders are rewarded for their fairly short)ter! financial perfor!ance* not the fir!#s long)ter! survival and success. ' third factor !ay be the inherent a!biguity regarding the benefits of satisfying the needs of sta"eholders other than sahareholders.

B,",", @,+,-i"
Q: 3ow do !agazines such as Banana encourage !ulticulturalis! in CanadaB ': &o answer this question* it would be great if the instructor had a copy of this .or a si!ilar/ !agazine to illustrate the !aterial within the !agazine. 3owever* generally* these !agazines celebrate cultural differences and recognize that people with different bac"grounds can adapt and live successfully within this diversity.

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Q: 'long with independent sales agents* what other professional groups would benefit fro! an intranet) based co!!unity of practice ': Basically* any "nowledge)oriented group would benefit fro! a co!!unity of practice because they have the opportunity for "nowledge sharing. Co!!only !entioned e%a!ples are engineers wor"ing in different regions for an organization* acade!ics in specific fields of study* and !edical specialists.

ACTIVITY 1>12 CASE ANALYSIS THE GREAT IDEA THAT WASNBT

&hese case notes were prepared by Fiona 1cQuarrie* <niversity College of the Fraser -alley

C,# S0"o9#i#
'fter the birth of her daughter* Irina* a !ortgage officer* decided to teleco!!ute to her (ob while wor"ing at ho!e. &he arrange!ent is not wor"ing as well as she had hoped* because of her isolation fro! the office and because of proble!s with establishing a wor"ing at!osphere at ho!e. 3er e!ployer has told her that if her wor" doesn#t i!prove within the ne%t !onth* she will have to return to regular wor"ing hours at the office. 'lthough the wor"place and the characters in the case are fictional* the proble!s encountered by Irina and her e!ployer are all ta"en fro! studies of real)life teleco!!uting arrange!ents. . ee* for e%a!ple* 'ndrew DuBrin* LCo!parison of the Gob atisfaction and +roductivity of &eleco!!uters versus In)3ouse $!ployeesM* +sychological 4eports* Gune 1JJ1* pp. 1>>?)1>?C9 Fiona '. $. 1cQuarrie* L&eleco!!uting: Aho 4eally BenefitsBM* Business 3orizons* ;ove!ber)Dece!ber 1JJC* pp. FJ)H?9 1argrethe 3. Olson and ophia B. +ri!ps* LAor"ing at 3o!e with Co!puters: Aor" and ;on)Aor" IssuesM* Gournal of ocial Issues* Fall 1JHC* pp. JF)11>9 Barbara G. 4is!an and Donald &o!as"ovic)Dewey* L&he ocial Construction of &echnology: 1icroco!puters and the Organization of Aor"M* Business 3orizons* 1ay)Gune 1JHJ* pp. F1)FD./ 1. Ahat are the !a(or proble!s in this teleco!!uting arrange!entB &here are several !a(or proble!s that can be identified in this case. First* Irina is having trouble wor"ing at ho!e where there is no suitable physical space for her to wor"* and while she is atte!pting to si!ultaneously wor" and care for a newborn baby. Clients have also co!plained to the e!ployer about distractions li"e a crying baby while dealing with Irina on the phone. &his is an i!portant point* given the ban"#s pro!ise of better custo!er service as its co!petitive advantage in a busy !ar"et. econd* while the e!ployer is being supportive in supplying a co!puter and couriering wor" to and fro! Irina#s ho!e* the e!ployer appears to have unrealistic e%pectations of what Irina#s productivity should be. &hird* Irina is !issing out on potential new clients by not physically being in the office when new custo!ers drop in. Fourth* while Irina is still visiting the office once a wee"* she is !issing regular contact with her co)wor"ers and thus is Lout of the loopM for the infor!al trans!ission of infor!ation in the wor"place. 3er co)wor"ers also appear to be resentful of her new wor" arrange!ent. >. Is it Irina#s or the ban"#s responsibility to solve these proble!sB ?. &his question could generate so!e interesting debates about the wor"er#s and the e!ployer#s responsibilities in ensuring satisfactory wor"ing conditions. Irina proposed the teleco!!uting arrange!ent* so it could be said that she should have realized the proble! of trying to wor" and care for a baby* and the difficulties that her physical and social isolation fro! the office could cause. &here are also so!e proble!s in pro(ecting a Lprofessional i!ageM when wor"ing fro! ho!e .e.g. Irina#s daughter crying in the bac"ground while Irina was on the phone/* which Irina could have anticipated. On the other hand* the e!ployer probably should not e%pect greater productivity (ust because an e!ployee wor"s at ho!e. &he e!ployer !ight also need to provide additional support to Irina beyond a co!puter and a regular courier service* rather than attributing proble!s only to Irina#s perceived inability to !anage her wor" arrange!ent. &he case !entions that a previous e!ployee#s teleco!!uting arrange!ent was a failure* which suggests that the e!ployer does not have a good idea of how to !anage teleco!!uting successfully. Ahat solutions can you suggest to the proble!s that you have identifiedB

Depending on how the proble! has been defined* there are nu!erous solutions that could be applied in this case. First* Irina and the co!pany obviously need to re) negotiate the ter!s of the teleco!!uting arrange!ent. &here needs to be clearer e%pectations .on both sides/ of Irina#s productivity. &he issue of Irina#s ti!e in the office also should be resolved* since once a wee" does not see! to be sufficient for her to stay involved and to acquire new clients. If Irina is concerned about her ability to spend ti!e away fro! her child* the e!ployer could subsidize day care for her during the ti!e she is in the office. &he e!ployer could also consider offering so!e day care arrange!ents at the office* which would li"ely be a benefit to other e!ployees with child care responsibilities. Irina and the co!pany could also e%plore ways to refer Lwal")inM clients to her when she is not physically in the office. econd* there could better wor"ing conditions for Irina at ho!e. Because of the nu!bers of wor"ers wor"ing part) or full)ti!e at ho!e* !any office furniture co!panies now !a"e cabinets containing co!puter and filing storage* which can be closed so that the Lwor" equip!entM is not visible when not in use. &his would partially solve the proble! of Irina being unable to avoid loo"ing at wor" when she is not wor"ing. &he cost of purchasing of such a piece of furniture could be covered by either Irina or the e!ployer* or they could share the cost. &hird* Irina could consider arranging for part) or full)ti!e child care while she is wor"ing at ho!e. Ahile this would so!ewhat reduce the savings generated by teleco!!uting* it would undoubtedly i!prove her ability to wor" without distraction and also to present a professional i!age to her clients. It would also possibly per!it her to wor" different hours* depending on the scheduling of the child care* and thus !a"e it easier for her to be available outside LregularM office hours* as she had suggested to her e!ployer. &he e!ployer could subsidize or cover the cost of childcare to assist Irina in i!ple!enting this arrange!ent* since increased productivity and professionalis! would also benefit the e!ployer. Fourth* the e!ployer !ay want to e%a!ine how co!!itted it is to the idea of teleco!!uting* and

e%plore ways to support such arrange!ents if it is decided that teleco!!uting is a viable option. It appears that the e!ployer is allowing teleco!!uting on a case)by)case basis* and there !ight be benefits to for!alizing teleco!!uting as an option for !ore e!ployees if the co!pany decides this is appropriate. 3aving teleco!!uting available to other e!ployees !ight reduce the resent!ent that Irina#s co)wor"ers feel .they !ay be angry because they feel she is receiving special treat!ent/* and could also be a selling point in recruiting new e!ployees. If the e!ployer decides to for!alize teleco!!uting as an option* there are cost savings that could be generated .e.g. bul" purchase of co!puters* office supplies* and office furniture/. o!e e!ployers have also developed Lse!i) teleco!!utingM arrange!ents if !any e!ployees live considerable distances fro! a central wor"place. 4ather than setting up wor"ing arrange!ents in each individual e!ployee#s ho!e* the e!ployer establishes a Lsatellite officeM: an office space equipped with co!puters* files* photocopiers* and other office furnishings* in a location convenient to the e!ployees. &he Lsatellite officeM is not a for!al place of business open to the public* but instead is a non)ho!e) based teleco!!uting site. $!ployees who wish to teleco!!ute travel to the Lsatellite officeM rather than to the central wor"place* and teleco!!ute fro! there rather than fro! their ho!es. &his arrange!ent avoids !ost of the proble!s associated with wor"ing fro! ho!e* while still allowing the e!ployees to avoid e%tensive travel and other wor")related costs. 3aving teleco!!uting e!ployees wor"ing fro! one place also allows the e!ployer a greater degree of control over wor"* instead of !anaging !ultiple individual teleco!!uting arrange!ents. Finally* Irina and the e!ployer could also question whether teleco!!uting is appropriate for her situation. &eleco!!uting does not wor" for every e!ployee and for every (ob. ince Irina#s (ob is* to so!e e%tent* dependent on regular interaction with her co)wor"ers and developing a client base fro! new custo!ers* it !ay be that teleco!!uting is inappropriate for her (ob. he !ay benefit herself and the e!ployer by returning to an office)based wor" arrange!ent.

ACTIVITY 1>22 TEA@ ECERCISE HU@AN CHEC?ERS

P'!9o#
&his e%ercise is designed to help students understand the i!portance and application of organizational behaviour concepts. the sa!e tas" and will have the sa!e a!ount of ti!e to plan and practice the tas". 't the end of this planning and practice* each tea! will be ti!ed while co!pleting the tas" in class. &he tea! that co!pletes the tas" in the least ti!e wins. tep ?: Other than chairs* no special !aterials are required or allowed for this e%ercise. 'lthough the tas" is not described here* students should learn the following rules for planning and i!ple!enting the tas": 4ule R1: 8ou cannot use any written for! of co!!unication or any props other than chairs to assist in the planning or i!ple!entation of this tas". 4ule R>: 8ou !ay spea" to other students in your tea! at any ti!e during the planning and i!ple!entation of this tas". 4ule R?: Ahen perfor!ing the tas"* you !ust !ove only in the direction of your assigned destination. In other words* you can only !ove forward* not bac"wards. 4ule RC: Ahen perfor!ing the tas"* you can !ove forward to the ne%t space* but only if it is vacant .see $%hibit 1 in te%tboo"/. 4ule RD: Ahen perfor!ing the tas"* you can !ove forward two spaces* if that space is vacant. In other words* you can !ove around a student who is one space in front of you to the ne%t space if that space is vacant .see $%hibit > in te%tboo"/. tep C: Ahen all tea!s have co!pleted their tas"* the class will discuss the i!plications of this e%ercise for organizational behaviour.

@,t !i,$#
;one* but the instructor has !ore infor!ation about the tea!#s tas". N;ote: &he chairs are optional. &his e%ercise so!eti!es wor"s better without chairs. Instead* the instructor !ight use two lines of tape on the floor to "eep student tea!s in a straight line.O

T,#7 D #(!i9tio" (!

,% to #t'% "t#&

$ach tea! will develop and e%ecute a strategy in which the three tea! !e!bers on either side of an open space will !ove to the other side in the sa!e final order .see e%hibit on this page/. &ea! !e!bers 1* >* and ? begin on the left side and !ust !ove to the right side in the sa!e order. &ea! !e!bers C* D* and E will begin on the right side of the open chair or space and !ust !ove to the left side in the sa!e order .see $%hibit below/.
Exhibit
Before 1 2 3 4 !

After 4 ! 1 2 3

I"#t!'(tio"# (9!o.i%

% i" t Dt3oo7&

Co55 "t# *o! I"#t!'(to!#

&his e%ercise is also called L&raffic Ga!M. 3alfway through the planning stage* it !ay be useful to advise students that the tas" can be co!pleted in less than >K seconds. &his !a"es so!e tea!s rethin" their strategy. &he e%ercise offers plenty of fun and is an e%cellent ice brea"er for the beginning of the course. 3owever* be prepared to use up an entire CD !inute class for this e%ercise with so!e ti!e for debriefing. It usually ta"es tea!s up to ?K !inutes to figure out the solution and to i!prove their efficiency in the tas".

tep 1: For! tea!s with si% students each. .;O&$: @arger tea!s !ay be for!ed* but all tea!s !ust be the sa!e size and have the sa!e nu!ber of people on each side./ If possible* each tea! should have a private location where tea! !e!bers can plan and practice the required tas" without being observed or heard by other tea!s. tep >: 'll tea!s will receive special instructions in class about the tea!#s assigned tas". 'll tea!s have

&hen* ti!e is required for each tea! to de!onstrate and co!pete.

Di#('##io" A' #tio"#

1. Identify organizational behaviour concepts that the tea! applied to co!plete this tas". 3u!an chec"ers is an e%citing e%ercise that applies !any organizational behaviour topics. It relates to tea!s because the planning and practice stage involves tea! develop!ent and perfor!ance. @eadership !ay be an issue here because so!e people help the tea! to wor" toward its goals. Creativity and decision !a"ing are relevant because the tea! !ust figure out how to get everyone to the opposite side within the constraints indicated. o!e students !ight note that they are not as good at either figuring out the !ethod or synchronizing as well as other people in the tea!. &his relates to the ele!ents of

individual behaviour. Conflict !at beco!e an issue if so!e tea! !e!bers don#t wor" as effectively as others. >. Ahat personal theories of people and wor" tea!s were applied to co!plete this tas". &his is a sub(ective question in which students reveal their personal theories. It is useful to identify the types of theories that e!erge* that is* which topics .leadership* individual perfor!ance* etc./ a !entioned !ost often. ?. Ahat organizational behaviour proble!s occurred and what actions were .or should have been/ ta"en to solve the!. everal OB proble!s potentially e!erge. &ea! dyna!ics are !ost often !entioned. Conflict so!eti!es occurs. @eadership !ay be an issue where one person do!inates the process too !uch.

ACTIVITY 1>32 TEA@ ECERCISE DEVELOPING ?NOWLEDGE )RO@ @ISTA?ES

P'!9o#
&he proble! that people !a"e fro! their !ista"es isn#t so !uch the !ista"e itself. 4ather* it#s that they do not ta"e the ti!e to learn fro! those !ista"es. &his e%ercise is designed to help you understand how to gain "nowledge fro! past !ista"es in a specific situation. incident. &hin" of this "nowledge as a road !ap for others to follow when they begin their first day of class or first day at wor"* go on a first date* etc. &his activity requires tea!s of D or E people* a situation identified by the instructor* and personal !ista"es in that situation.

Co55 "t# *o! I"#t!'(to!#

&he first day of class is a suitable and usually entertaining topic because all students have obviously e%perienced this event and !any probably have hilarious e%a!ples of how events went wrong. For e%a!ple* a student !ight describe how he=she sat in class and realized half way through the first lecture that it was the wrong roo!S 'nother !ight describe how he=she arrived late because the par"ing lot was full. Fro! these stories* students can e%plore what can be learned fro! the!. For e%a!ple* for! the incident about being in the wrong roo!* they !ight note the need to loo" closely at roo! nu!bers* double chec" last !inute roo! changes* as" others in the class to confir! that the course in this roo! is what he=she assu!es* and so on. &his e%ercise can be fun because it reveals so!e very hu!an activities* as well as the idea that "nowledge e!erges fro! these !e!orable .and so!eti!es infa!ous/ events. It teaches students to conduct effective debriefing sessions )) a powerful way to e%tract "nowledge fro! another person#s e%periences. ;otice that this e%ercise also reshapes our thin"ing about !ista"es. 4ather than a source of e!barrass!ent* !ista"es are learning events. &his point is consistent with the e%periential learning approach that is described in Chapter >.

I"#t!'(tio"#
tep 1: &he class will be divided into s!all tea!s .four to si% people/. &he instructor will identify a situation that students would have e%perienced and* therefore* at which they probably have !ade !ista"es. &his could be the first day at wor"* the first day of a class* or a social event such as a first date. tep >: 'fter the topic has been identified* each tea! !e!ber writes down an incident in which so!ething went wrong in that situation. For e%a!ple* if the topic is the first day of classes* so!eone !ight note how they were late for class because they forgot to set their alar! cloc". tep ?: $ach student describes the !ista"e to other tea! !e!bers. 's an incident is described* students should develop a causal !ap of the incident. &hey should as" why the proble! happened* what were the consequences of this incident* did it happen again* and so on. &he "nowledge !ight not be as obvious as you thin". For e%a!ple* in the incident of being late* the learning !ight not be that we should ensure the alar! cloc" is set. It !ay be a !atter of changing routines .going to bed earlier/* rethin"ing our !otivation to enroll in a progra!* and so on. tep C: 's other incidents are analyzed* the tea! should begin to docu!ent specific "nowledge about the

ACTIVITY 1>12 SEL)EASSESS@ENT IT ALL @A?ES SENSE/

P'!9o#
&his e%ercise is designed to help students understand how organizational behaviour "nowledge can help you to understand life in organizations. in Chapter 1K. &here are several reasons why people continue to support a bad decision. &hese include: .a/ self)(ustification )) people want to present the!selves in a positive light9 .b/ ga!bler#s fallacy )) decision !a"ers under) esti!ate the ris" and over esti!ate their probability of success9 .c/ perceptual blinders )) decision !a"ers do not see the proble!s soon enough9 and .d/ closing costs )) decision !a"ers will persist because the costs of ending the pro(ect are high or un"nown. ?. Organizations are !ore effective when they prevent conflict a!ong e!ployees. $'%S#. 'ctually* the correct answer is in a state of flu%. &he do!inant OB research indicates that tas")oriented is often beneficial .such as in decision !a"ing/ whereas socioe!otional conflict has negative consequences. But so!e e!erging research concludes that even tas")oriented conflict can be a proble!. Ae also discuss both the benefits of and proble!s with conflict in Chapter 1?. C. It is better to negotiate alone than as a tea!. $'%S#. 's described in the latter part of Chapter 1?* tea! listening is an i!portant virtue in negotiations. &he !ore people listening* the !ore your side will hear valuable infor!ation and understand the subtle nonverbal cues co!!unicated by the other party. &his infor!ation !a"es it easier to identify low)cost concessions or proposals that will satisfy the other side. D. Co!panies are !ost effective when they have a strong corporate culture. $'%S#. 's with so !any organizational behaviour concepts* the !ore precise answer is Lit depends.M In Chapter 1E* students will read that there is a wea" relationship between corporate culture strength and organizational perfor!ance. &hree reasons are offered. First* a strong culture can be a proble! when the values are inconsistent with the organization#s environ!ent. econd* a very strong culture can blind e!ployees fro! seeing other perspectives. &hird* a very strong culture suppresses dissenting values that !ay be

I"#t!'(tio"#
4ead each of the state!ents below and circle whether each state!ent is true or false* in your opinion. &he class will consider the answers to each question and discuss the i!plications for studying organizational behaviour. 'fter reviewing these state!ents* the instructor will provide infor!ation about the !ost appropriate answer. .;ote: &his activity !ay be done as a self)assess!ent or as a tea! activity./

Co55 "t# *o! I"#t!'(to!#

&his e%ercise addresses the point that co!!on sense isn#t always correct. Of course* so!e students will be counter)intuitive in anticipation that these are Ltric"M questions. Ae have included so!e true state!ents to co!plicate the e%ercise. By reviewing each state!ent* you can help students to see that organizational behaviour syste!atically studies these issues and helps us to correct or clarify popular !isperceptions. 3ere are the eleven state!ents with their correct answers and references to their discussion in the te%tboo". 1. ' happy wor"er is a productive wor"er. TR!#. &o be !ore accurate* the answer is Ltrue* to so!e e%tentM. &his is one of those LtruthsM that students will probably answer correctly and !any OB instructors will answer incorrectly because they rely on old organizational behaviour research. &he latest research indicates that (ob satisafaction has a !oderately strong association with (ob perfor!ance .a correlation of around .?K/. For details* see Chapter C on wor"place e!otions and attitudes. >. Decision !a"ers tend to continue supporting a course of action even though infor!ation suggests that the decision is ineffective. TR!#. &his state!ent represents the escalation of co!!it!ent pheno!enon* which is described

i!portant in the future as the environ!ent changes. E. $!ployees perfor! better without stress. $'%S#. 's we learn in Chapter F* so!e level of stress is essential for life. Ae need a certain level of stress to energize us. &he proble! is that we so!eti!es .or often/ e%perience stress beyond this beneficial level. F. $ffective organizational change always begins by pinpointing the source of its current proble!s. $'%S#. &his state!ent refers to the do!inant !odel of proble! solving and organizational change* na!ely* to identify the proble! before loo"ing for solutions. In Chapter 1F* we introduce an e!erging perspective of organizational change called appreciative inquiry. 'ccording to this !odel* dwelling on proble!s can bog down the change process and degenerate into political. Instead* change agents need to focus the group on its potential and positive ele!ents. H. Fe!ale leaders involve e!ployees in decisions to a greater degree than do !ale leaders. TR!#. &here is lot of debate about whether !en and wo!en lead differently. 's we learn at the end of Chapter 1C* !en and wo!en are !ostly si!ilar in their leadership styles. But there is one e%ception: fe!ale leaders involve e!ployees in decisions to a greater degree than do !ale leaders. Of course* so!e fe!ale leaders are not participative* and so!e !ale leaders are very participative. But generally* fe!ale leaders are !ore participative. J. +eople in Gapan value group har!ony and duty to the group .high collectivis!/ !ore than Canadians or '!ericans .low collectivis!/.

$'%S#. &his state!ent represents one of the !ost widely held views in organizational behaviour* na!ely that Gapanese people have high collectivis! and low individualis!. 8et* several studies .including a recent !a(or !eta)analysis/ now conclude that Gapanese people tend to have fairly low collectivis!. &hese recent findings are reported in Chapter >. 1K. &op)level e%ecutives tend to e%hibit a &ype ' behaviour pattern .i.e.* hard)driving* i!patient* co!petitive* short)te!pered* strong sense of ti!e urgency* rapid tal"ers/. $'%S#. 'ctually* top)level e%ecutives tend to e%hibit the &ype B behaviour pattern. In other words* they tend to wor" steadily* ta"e a !ore rela%ed approach to life* and be even)te!pered. In fact* these features !ay provide superior hu!an relations s"ills which give &ype B people !ore pro!otions. &ype '=B patterns are described in Chapter F. 11. $!ployees usually feel overreward inequity when they are paid !ore than cowor"ers perfor!ing the sa!e wor". $'%S#. Ahen it co!es to !oney* people tend to play interesting !ind ga!es to avoid feeling overreward inequity. tudents will read in Chapter D that overrewarded e!ployees often distort their perceived inputs or outco!es to reduce inequitable feelings. For e%a!ple* they !ight begin to thin" that their higher pay is (ustified because they offer !ore s"ills or e%perience than they previously thought. &hey !ight thin": L&his large bonus !eans that the co!pany values !y talent !ore than I thoughtSM

ACTIVITY 1>42 SEL)EASSESS@ENT TELEWOR? DISPOSITION ASSESS@ENT

P'!9o#
&his e%ercise is designed to help students to assess the e%tent to which they possess the personal characteristics !ost suitable for telewor". &his instru!ent is designed to help students to identify their Ltelewor" dispositionM* that is* the degree to which their needs* values* and co!petencies are co!patible with telewor"ing arrange!ents. &his scale does not cover every personal characteristic related to effective telewor"ing* but it !easures three of the !ost i!portant dispositions. 'lso* please "eep in !ind that this scale only considers personal characteristics. Other factors* such as organizational* fa!ily* technological syste!s support !ust also be ta"en into account. tudents are as"ed to read each of the 1C state!ents in this instru!ent and indicate the e%tent to which they agree or disagree that the state!ent describes the!.

O. !.i w ,"% I"#t!'(tio"#

&elewor"ing .also "nown as teleco!!uting/ has beco!e one of the fastest)growing develop!ents in the wor"place. Aith advanced co!puter and teleco!!unications syste!s* "nowledge wor"ers can now perfor! their wor" at ho!e or another location away fro! their usual office. But effective telewor"ing requires !ore than technology. o!e people are better than others tat surviving and succeeding in telewor"ing arrange!ents.

Fee"b#$% for the Te&e'or% Di()o(itio* A((e((+e*t

N;O&$: &he following infor!ation is also provided in 'ppendi% B and=or the tudent CD.O &his scale assesses three personal dispositions that are identified in the literature as characteristics of effective telewor"ers: .a/ high co!pany align!ent* .b/ low social needs at wor"* and .c/ independent initiative.

Co59,"0 ,$i+"5 "t

Co!pany align!ent esti!ates the e%tent to which you follow co!pany procedures and have values congruent with co!pany values. &he greater the align!ent* the !ore li"ely that you can abide by co!pany practices while wor"ing alone and with direct supervision. Ahile so!e deviation fro! co!pany practices !ay be appropriate* telewor"ers need to agree with co!pany values and provide wor" that is consistent with co!pany e%pectations !ost of the ti!e. cores on this scale range fro! C to >K. S(o! 14 to 2= ; to 11 1 to : I"t !9! t,tio" Hi+h (o59,"0 ,$i+"5 "t @o% !,t (o59,"0 ,$i+"5 "t Low (o59,"0 ,$i+"5 "t

Low #o(i,$ "

%# ,t wo!7

+eople with a high score on this subscale do not rely on co)wor"ers to satisfy their social needs. uccessful telewor"ers tend to score higher on this subscale Ji.e. have lower social needs at wor"/ because telewor"ing offers less opportunity for social interaction with co) wor"ers than when wor"ing in an office setting each day. cores on this scale range fro! C to >K. ;otice that 3I,3 scores represent @OA social needs. S(o! 14 to 2= ; to 11 1 to : I"t !9! t,tio" Low #o(i,$ " Hi+h #o(i,$ " %# %# %# @o% !,t #o(i,$ "

I"% 9 "% "t i"iti,ti.

One of the !ost i!portant characteristics of successful telewor"ers is that they are able to set their own wor" goals and !aintain a productive wor" schedule without direct supervision. +eople who score higher on this subscale tend to have a higher degree of independent initiative. cores on this scale range fro! E to ?K. S(o! 21 to 3= 14 to 23 6 to 11 I"t !9! t,tio" Hi+h i"% 9 "% "t i"iti,ti. @o% !,t i"% 9 "% "t i"iti,ti. Low i"% 9 "% "t i"iti,ti.

Tot,$ T $ wo!7 Di#9o#itio"

&his overall score co!bines the results for co!pany align!ent* social needs at wor"* and independent initiative. ' higher score indicates that students will probably be !ore satisfied and productive in a telewor"ing arrange!ent than so!eone with a lower score on this scale. pecifically* people with high scores have higher align!ent with co!pany values and practices* lower social needs at wor"* and higher independent initiative. cores on this scale range fro! 1C to FK. S(o! 41 to 8= 31 to 43 11 to 33 I"t !9! t,tio" Hi+h t $ wo!7 %i#9o#itio" @o% !,t t $ wo!7 %i#9o#itio" Low t $ wo!7 %i#9o#itio"

SUPPLE@ENTAL CASE AN UNTI@ELY INCIDENT AT ANCOL CORP> STUDENT HANDOUT

+aul i!ard was delighted when 'ncol @td. offered hi! the (ob of !anager at its Gonquiere* Quebec plant. i!ard was happy enough !anaging a s!all !etal sta!ping plant with another co!pany* but the headhunter#s invitation to apply to the plant !anager (ob at one of Canada#s leading !etal fabrication co!panies was irresistible. 'lthough the Gonquiere plant was the s!allest of 'ncol#s 1D operations across Canada* the plant !anager position was a valuable first step in a pro!ising career. One of i!ard#s first observations at 'ncol#s Gonquiere plant was that relations between e!ployees and !anage!ent were strained. &a"ing a page fro! a recent e%ecutive se!inar that he attended on building trust in the wor"place* i!ard ordered the re!oval of all ti!e cloc"s fro! the plant. Instead* the plant would assu!e that e!ployees had put in their full shift. &his sy!bolic gesture* he believed* would establish a new level of credibility and strengthen relations between !anage!ent and e!ployees at the site. Initially* the >DK production e!ployees at the Gonquiere plant appreciated their new freedo!. &hey felt respected and saw this gesture as a sign of positive change fro! the new plant !anager. &wo !onths later* however* proble!s started to appear. ' few people began showing up late* leaving early* or ta"e e%tended lunch brea"s. 'lthough this represented only about five percent of the e!ployees* others found the situation unfair. 1oreover* the increased absenteeis! levels were beginning to have a noticeable effect on plant productivity. &he proble! had to be !anaged. i!ard as"ed supervisors to observe and record when the e!ployees ca!e or went and to discuss attendance proble!s with those abusing their privileges. But the supervisors had no previous e%perience with "eeping attendance and !any lac"ed the necessary interpersonal s"ills to discuss the !atter with subordinates. $!ployees resented the repri!ands* so relations with supervisors deteriorated. &he additional responsibility of "eeping trac" of attendance also !ade it difficult for supervisors to co!plete their other responsibilities. 'fter (ust a few !onths* 'ncol found it necessary to add another supervisor position and reduce the nu!ber of e!ployees assigned to each supervisor. But the proble!s did not end there. Aithout ti!e cloc"s* the payroll depart!ent could not deduct pay for the a!ount of ti!e that e!ployees were late. Instead* a letter of repri!and was placed in the e!ployee#s personnel file. 3owever* this required yet !ore ti!e and additional s"ills fro! the supervisors. $!ployees did not want these letters to beco!e a per!anent record* so they filed grievances with their labour union. &he nu!ber of grievances doubled over si% !onths* which required even !ore ti!e for both union officials and supervisors to handle these disputes. ;ine !onths after re!oving the ti!e cloc"s* +aul i!ard !et with union officials* who agreed that it would be better to put the ti!e cloc"s bac" in. $!ployee)!anage!ent relations had deteriorated below the level when i!ard had started. upervisors were burnt out fro! overwor". +roductivity had dropped due to poorer attendance records and increased ad!inistrative wor"loads. ' couple of !onths after the ti!e cloc"s were put bac" in place* i!ard attended an operations !eeting at 'ncol#s headquarters in &oronto. During lunch* i!ard described the ti!e cloc" incident to @ia! Gac"son* 'ncol#s plant !anager in ;orthern British Colu!bia. Gac"son loo"ed surprised* then chuc"led. Gac"son e%plained that the previous BC plant !anager had done so!ething li"e that with si!ilar consequences si% or seven years ago. &he previous !anager had left so!e ti!e ago* but Gac"son heard about the BC ti!ecloc" fro! a supervisor during the !anager#s retire!ent party two !onths ago. LI guess it#s not quite li"e lightning stri"ing the sa!e place twice*M said i!ard to Gac"son. LBut it sure feels li"e it.M

iscussion Buestions
1. >. ?. Ahat sy!pto!.s/ e%ist in this case to suggest that so!ething has gone wrongB Ahat are the root causes that have led to these sy!pto!sB Ahat actions should 'ncol or +aul si!ard ta"e to correct these proble!sB

T Copyright 1JJH teven @. 1c hane. &his case is based on actual events* but na!es and so!e facts have been changed to provide a fuller case discussion.

SUPPLE@ENTAL CASE ANALYSIS AN UNTI@ELY INCIDENT AT ANCOL CORP>

C,# S0"o9#i#
&his case describes the activities of +aul i!ard after he beca!e when he beca!e !anager at 'ncol Corp.#s plant in Gonquiere* Quebec. &o build trust between !anage!ent and e!ployees* he re!oved the ti!e cloc"s that "ept trac" of e!ployee wor" hours. 'lthough e!ployees appreciated this freedo! to wor" without a ti!e cloc"* so!e abused this privilege by showing up late and leaving early. &his affected plant productivity. upervisors spent !ore ti!e counseling those who had attendance proble!s and filling out letters of repri!and. &he letters* along with supervisors# poor interpersonal s"ills* worsened relations. 'nother supervisor was added to cope with the additional wor". 'fter nine !onths* i!ard agreed with union officials to reinstate the ti!e cloc"s. @ater* at a !eeting of other 'ncol !anagers* i!ard learned that a si!ilar situation had occurred at another plant a few years earlier. N;O&$: &his case is a variation of an incident described in 4. Daft* Organizational #heory* ?rd ed. . t. +aul* 1;: Aest* 1JHJ/* pp. 1E)1F.O within the organization) A third type of drawing illustrates the cause.effect relationships in a ti!e se/uence) #his typically starts with the poor relations, then re!oving the ti!e cloc(, then initially increasing !orale but also increasing absenteeis!, and so on) #his te!poral i!age should reveal the co!ple0ity of events in the case) 1or e0a!ple, poor relations was not the only cause of the re!oved ti!e cloc(s) Paul "i!ard-s entry to the organization and his (nowledge fro! the se!inar also contribute to this action) +'nstructors !ight notice how this is a classic e0a!ple of garbage can decision !a(ing .. a proble!, solution, decision !a(er, and situation collide to for! a decision)2 &his case illustrates the proble!s facing organizations fro! an open syste!s view. &he open syste!s view states that organizations are co!prised of interdependent parts. Ae certainly see that here with the re!oval of ti!e cloc"s. In particular* we see how re!oving ti!e cloc"s leads to a string of une%pected consequences. In this case* re!oving the ti!e cloc"s resulted in !ore wor" for supervisors. It also affected wor" activities in payroll and* eventually* posed a new set of proble!s for labor union leaders. upervisors now had to use disciplinary counseling s"ills which !any of the! lac"ed. 'lthough students !ight suggest that lac" of counseling training is a proble! here* notice that there is no !ention that it was a proble! before. It is possible in a unionized environ!ent with process)oriented technology* that control syste!s are in place which !ini!ize the need for supervisors to discipline e!ployees. For e%a!ple* ti!e cloc"s control e!ployee attendance behaviour or* at least* provide fact)based infor!ation. &he !ain point* however* is that one action .re!oving ti!e cloc"s/ ripples through to other subsyste!s in the organization* as predicted by the open syste!s anchor. >. Ahat changes should occur to !ini!ize the li"elihood of these proble!s in the futureB One answer to this question is to help people at 'ncol recognize that organizations are open

S'++ #t % A"#w !# to C,# A' #tio"#

1. <se the syste!s theory !odel to e%plain what happened when 'ncol re!oved the ti!e cloc"s. N"$%%&"#'ON: #his case wor(s best when each discussion group is provided with a !ar(er and acetate sheet or flip chart and as(ed to illustrate the events at Ancol fro! a syste!s perspective) #he results are fascinating) #ypically, so!e groups will diagra! the syste!s !odel shown in Chapter *) #heir drawing reveals the subsyste!s in the case, such as e!ployees, supervisors, control syste!s +ti!e cloc(,, and !anage!ent) 't !ay also show inputs +such as Paul "i!ard-s entry,, outputs +lower productivity,, and feedbac( fro! the environ!ent +union grievances,) Other student groups !ight try to diagra! the relationships that affect each other, such as a series of interrelated lines a!ong the subsyste!s

syste!s with interdependent parts. In other words* they need to be sensitive to the fact that changes in one part of the wor" unit affects other parts of the wor" unit* as we saw at this 'ncol plant. &he second change is to apply "nowledge !anage!ent practices so that what was previously learned about re!oving ti!e cloc"s would be !ore quic"ly and readily "nown throughout the organization. &he end of the case describes how i!ard attended an operations !eeting at 'ncol#s headquarters in Cincinnati* where he learned that 'ncol#s plant in +ortland* Oregon had a si!ilar e%perience si% or seven years earlier. &his illustrates the Lsilos of "nowledgeM proble! that e%ists in large organizations. If i!ard had "nown about the earlier incident* he !ight have avoided the action of re!oving ti!e loc"s* or

!ight have ta"en steps to correct anticipated proble!s. tudents should discuss ways that organizations such as 'ncol can i!prove "nowledge sharing. For e%a!ple* the organization)wide !eeting that i!ard attended see!s to help share "nowledge a!ong plant !anagers* albeit so!ewhat too late in this case. 'lternatively* perhaps the co!pany could leverage the benefits of Intranet technology to help e!ployees and !anagers share e%periences !ore fully. $ven through an integrated e)!ail syste!* i!ard could have as"ed other !anagers if re!oving ti!e cloc"s has been tried before* and with what consequences. ;otice that "nowledge sharing requires a culture of open co!!unication and infor!ation sharing* not (ust the technology to !a"e this possible.

SUPPLE@ENTAL LECTURE2 SINGLE AND DOUBLE LOOP LEARNING IN ?NOWLEDGE @ANAGE@ENT

0nowledge !anage!ent has its beginnings in the organizational behaviour writing about organizational learning. &his concept was popularized by +eter enge#s 1JJK boo"* #he 1ifth 3iscipline * 3owever* the concept can be traced bac" !ore than a dozen years earlier to the wor" of Chris 'rgyris and earlier still to scholars who introduced the idea that organizations are open syste!s. One of the earliest organizational learning perspectives was advanced by Chris 'rgyris in the late 1JFKs. 'rgyris suggested that organizational learning involves the detection and correction of error. &his error !ight be an inefficiency in the organizational subsyste! .such as a !isunderstanding between depart!ents/ or in the organization#s relationship with the e%ternal environ!ent .such as failing to secure sufficient resources for production/. 'rgyris calls the error detection and correction process Lsingle)loop learningM when the error can be corrected through e%isting policies* procedures* and nor!s. In contrast* Ldouble)loop learningM occurs when the error leads to a !odification of the organization#s underlying nor!s* policies* and procedures. Double loop learning involves not only responding to the error through e%isting procedures* but also e%peri!enting with new organizational syste!s when it beco!es apparent that the e%isting syste!s are ineffective. ingle and double loop learning are useful concepts in the organizational learning literature because they point out how e!ployees need to thin" beyond the e%isting organizational fra!ewor" to solve proble!s. &his is particularly i!portant when the environ!ent is changing rapidly and e%isting organizational syste!s are no longer appropriate. In a learning organization* e!ployees quic"ly realize that the e%isting syste! does not adequately resolve a particular proble! and that a new set of nor!s and policies !ust be introduced to help the organization realign itself with the changing environ!ent. ources: C. 'rgyris and D. '. chon* Organizational 4earning .4eading* 1': 'ddison)Aesley* 1JFH/9 1. Dodgson* LOrganizational @earning: ' 4eview of o!e @iterature* Organization "tudies * 1C .1JJ?/* pp.

?FD)JC9 +. 1. enge* #he 1ifth 3iscipline .;ew 8or": Doubleday Currency* 1JJK/.

SUPPLE@ENTAL LECTURE2 ISSUES IN TELECO@@UTING

&eleco!!uting is beco!ing co!!onplace in so!e fir!s* but !any organizations are still having difficulty ad(usting to this new e!ploy!ent relationship. 's we described in Chapter 1* teleco!!uting .also "nown as Ltelewor"ingM involves wor"ing fro! ho!e* usually with a co!puter connection to the office. co!plete their required tas"s. +eople with disabilities can participate in the labor force where their e%pertise involves "nowledge wor". &his includes e!ployees who are in(ured* yet want to return to wor" while convalescing. Ao!en can return to wor" sooner* if they wish* without leaving ho!e. 1en also have !ore opportunity to fulfill household responsibilities without giving up paid e!ploy!ent. Reducing Corporate Costs. &eleco!!uting potentially saves co!panies !oney because they require less space to physically acco!!odate e!ployees. 1any fir!s .including so!e of Cisco yste!s# offices/ shift to a nonterritorial office for!at whereby e!ployees ta"e whatever wor" space is available when they do co!!ute to the corporate or branch office. .&his is discussed in Chapter H./ &here are so!e costs the e!ployer of teleco!!uting .e.g. providing co!puter equip!ent and networ" access/* but these are offset by the physical space savings. Increasing +roducti,ity . 4esearch consistently has found that the productivity of those who teleco!!ute is higher than that of wor"ers in the standard office environ!ent. 1oreover* teleco!!uters have lower absenteeis!. 'lso notice fro! Chapter 1 that e!ployees tend to be available !ore often and at unusual hours when they teleco!!ute.

2ho Telecommutes4
&eleco!!uting is !ore co!!on in so!e (obs than in others. Certainly* few auto asse!bly e!ployees teleco!!ute because the organization requires their physical labor on)site and the tolls of their trade can#t fit in a suitcase or bac"pac". &he !ost co!!on (obs for teleco!!uting are writing* tele!ar"eting* for!s processing* and transcribing. &eleco!!uting is also relatively co!!on a!ong trainers* television and !ovie sound !i%ers* illustrators* loan e%ecutives* architects* attorneys* des"top publishers* !ar"eting and public relations professionals* and pro(ect !anagers.

2hy Telecommute4
&he literature has identified several reasons why teleco!!uting has beco!e !ore popular: 8inimi-ing Traffic Congestion. ilicon -alley#s fa!ous traffic (a!s have !otivated !any e!ployees and co!panies to try out teleco!!uting as an alternative. 'ddressing #n,ironmental Concerns. California and other (urisdictions have established challenging goals to reduce air pollution. Individuals are also !ore conscious about how their actions affect the environ!ent. By wor"ing fro! ho!e or a satellite office rather than traveling a long distance to wor"* people are helping to i!prove air quality. 'ttracting Talent. In the opening story to this chapter* we learned that Cisco yste!s is willing to let so!e (ob applicants re!ain at their previous residence )) even when on the other side of the country. &his fle%ibility !otivates talented people to (oin Cisco and other co!panies that practice teleco!!uting. &eleco!!uting is a desirable wor"ing condition to so!e .!anyB/ people* so it beco!es a way of attracting top talent. 'ccommodating i,ersity. &eleco!!uting allows those with restricted access to the wor"place to

Telecommuting Issues
In spite of its benefits* organizations and would)be teleco!!uters !ust thin" carefully about the following issues that arise with this e!ploy!ent relationship: Clarifying #.pectations. 'long with perfor!ance e%pectations* e!ployees and their bosses !ust develop a co!!on set of e%pectations regarding their availability. ' supervisor !ight e%pect that the e!ployee is at wor" during the sa!e hours as colleagues at wor"* whereas the teleco!!uter !ight assu!e that it#s acceptable to ta"e a couple of hours off to do shopping* then wor" in the evening. In other words* teleco!!uters need to "now their degree of wor" ti!e fle%ibility. 8onitoring 2ork . Co!panies have difficulty !oving away fro! Lface ti!eM as an indicator of wor" perfor!ance. &hey need to find new and better ways to !onitor e!ployee perfor!ance. &ypically* teleco!!uting shift wor" !onitoring fro! ti!e)based

indicators .hours at wor"/ to an output)based indicators .nu!ber of tas"s co!pleted/. 8inimi-ing Isolation. 'lthough e!ployees en(oy the freedo! of teleco!!uting* !any eventually realize that they Llose touchM with the wor"place. Aor" fulfils a social need* not (ust the need for acco!plish!ent and financial security. 1oreover* face ti!e is a political tactic that potentially influences the e!ployees career opportunities and choice of assign!ents. &hus* !any teleco!!uting arrange!ents include the require!ent that e!ployees attend the regular wor"place a couple of days each wee".

ources: $. G. 3ill* B. C. 1iller* . +. Aeiner* G. Colihan* LInfluences of the -irtual Office on 'spects of Aor" and Aor"=@ife Balance*M Personnel Psychology * D1 .'utu!n 1JJH/* EEF)EH?9 1. 1. Fitzer* L1anaging fro! 'far: +erfor!ance and 4ewards in a &eleco!!uting $nviron!ent*M Co!pensation and Benefits Review* >J .Ganuary) February 1JJF/* pp. ED)F?9 1. 3equet* L3ow &eleco!!uting &ransfor!s Aor"*M #raining ?1 .;ove!ber1JJC/* pp. DF)E1.

SUPPLE@ENTAL LECTURE2 ?NOWLEDGE @APPING

One of the !ost co!!on la!ents in larger organizations is LI wish we "new what we "now.M &o rectify this proble!* a few organizations engage in (nowledge !apping )) identifying what "nowledge the organization holds about a "ey product or service* and creating a directory so that this "nowledge !ay be found quic"ly. For e%a!ple* <nilever recently !apped everything it "new around the world about to!atoes: about sources of pulp for to!ato sauce* about the pulp itself* the fruit and the seeds. &he result was a "nowledge !ap that helps <nilever e!ployees quic"ly find corporate "nowledge in this area. 3ewlett)+ac"ard has been a pioneer in "nowledge !apping. &he high technology co!pany had to create road !aps where cowor"ers can quic"ly identify what "nowledge is needed and where it is located. L0nowledge 1apping is a process that identifies "nowledge* s"ills* collateral and tools needed to sell or deliver a solution*M says 1arilyn 1artiny* 0nowledge ervices 1anager at 3ewlett)+ac"ard#s consulting division. L&he !ap is used as a guide to what "nowledge is i!portant and where it can be found.M ' typical "nowledge !apping process brings together e%perts within the organization* who identify what "nowledge is needed* what gaps e%ist in current "nowledge capabilities* and what s"ills are required for

a particular pro(ect or wor" activity. It creates a collective view of the "nowledge and s"ills required to successfully perfor! each step in the wor" process. &his fra!ewor" is a valuable resource for "nowledge sharing an utilization because it enables others to quic"ly identify and retrieve "nowledge . ources: ;. -en"atra!an and G. C. 3enderson* L4eal trategies for -irtual Organizing*M "loan 5anage!ent Review* CK .Fall 1JJH/* pp. ??U9 1. 1artiny* L0nowledge 1anage!ent at 3+ Consulting*M Organizational 3yna!ics * >F .'utu!n 1JJH/* pp. F1U9 4. 1. Ful!er* +. ,ibbs* and G. B. 0eys* L&he econd ,eneration @earning Organizations: ;ew &ools For ustaining Co!petitive 'dvantage*M Organizational 3yna!ics* >F .'utu!n 1JJH/* pp. EU9 C. O#Dell and C. G. ,rayson* LIf Only Ae 0new Ahat Ae 0now: Identification 'nd &ransfer Of Internal Best +ractices*M California 5anage!ent Review* CK . pring 1JJH/* pp. 1DC)1FC9 &. Gac"son* L3arnessing &he +ower*M 1inancial Post* Gune 1H* 1JJH* p. ??. For discussion of "nowledge !apping* see &. Davenport and @. +rusa"* 6or(ing 7nowledge: ow Organizations 5anage 6hat #hey 7now .Boston: 3arvard Business chool +ress* 1JJH/9

>

VIDEO SUGGESTIONS

'long with the video case.s/ for this section of the ted%tboo"* the following videos and fil!s generally relate to one or !ore topics in this chapter. &hese progra!s !ay be available at your college=university or rented fro! the distributor. +lease contact your fil! librarian to deter!ine the availability of these progra!s at your institution. &his list was co!piled fro! library holdings of several universities. Due to the variety of video !aterial* this is not a co!prehensive list. ;or can we say that all of the progra!s below are suitable for your class.

NOT#C Instructors should look through the ,ideo suggestions section in other chapters to find ,ideos relating to the emerging themes discussed in this opening chapter of the te.tbook/ Creating the %earning Organi-ation. .1JJF* FE !in.* -3 / &hese three video progra!s .created by C' $ &elevision for BBC/ describe the organizational) learning techniques used by successful co!panies. &hey discuss how to i!ple!ent change and develop a learning culture within a business and how to analyze an organizationPs learning style. &he three progra!s are entitled: 1. @earning to survive v. >. &he learning e%perience v. ?. 1a"ing it happen. Soaring to #.cellence1 %earning to %et #mployees %ead. .1JJC* ?K !in.* cor-ision 1edia/. Ga!es '. Belasco I 4alph C. tayer share the belief that the critical difference in todayPs co!panies rests in the Vintellectual capitalV found in the people who !a"e)up the entire organization. &his progra! is based on a boo" by the sa!e na!e* written by Belasco and tayer. "andy on the $uture of Organi-ations. .1JJK* 1H !in.* -3 /. &his BBC production features Charles

3andy* an international writer on organizational behaviour* discusses the future of organizations* the changing nature of wor" and !anage!ent and the need for adaptation. I B; KDE?>KH?KJ The Change 8astersC !nderstanding The Theory . .1JHF* >> !ins* -3 / Dr. 4osabeth 1oss 0anter identifies Lchange !astersM as individuals and co!panies who anticipate change and respond with new ideas. he describes the seven ingredients that are essential to successful change !asters and e%plains how to create the "ind of environ!ent that builds innovation and pro!otes acceptance to change. The Change 8astersC +utting The Theory Into 'ction .1JHF* C> !ins.* -3 / &his progra! profiles three !a(or co!panies: 3ewlett)+ac"ard* ecurity +acific Ban"* and the tanley wor"s. &hey have refocused their business strategies in order to co!pete !ore effectively in an ever)changing business environ!ent. 'll three illustrate successful i!ple!entation of the Lchange !asterM concepts developed by Dr. 0anter in her boo" &he Change 1asters

NOTES