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. Summarize the apparent benefits and challenges of telework. Identify changes in Canadas work force in recent years. Describe employability and contingent work. Explain why values have gained importance 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. Diagram an organization from an open systems view. Define knowledge management and intellectual capital. Identify specific ways that organizations acquire and share knowledge.

CHAPTER GLOSSARY
communities of practice Informal groups bound together by shared expertise and passion for a particular activity or interest. contingency approach The idea that a particular action may have different consequences in different situations. contingent work Any job in which the individual does not have an explicit or implicit contract for longterm employment, or one in which the minimum hours of work can vary in a nonsystematic way. corporate social responsibility (CSR) An organizations moral obligation towards its stakeholders. employability An employment relationship in which people are expected to continually develop their skills to remain employed. ethics The study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad.

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globalization When an organization extends its activities to other parts of the world, actively participating in other markets, and competing against organizations located in other countries. grafting The process of acquiring knowledge by hiring individuals or buying entire companies. grounded theory A process adopted in most qualitative research of developing knowledge through the constant interplay of data collection, analysis, and theory development. intellectual capital The sum of an organizations human capital, structural capital, and relationship capital. knowledge management Any structured activity that improves an organizations capacity to acquire, share, and use knowledge in ways that improve its survival and success. open systems Organizations that take their sustenance from the environment and, in turn, affect that environment through their output. organizational behaviour (OB) The study of what people think, feel, and do in and around organizations.

organizational culture The basic pattern of shared assumptions, values, and beliefs governing the way employees within an organization think about and act on problems and opportunities. organizational learning The knowledge management process in which organizations acquire, share, and use knowledge to succeed. organizational memory The storage and preservation of intellectual capital. organizations Groups of people who work interdependently toward some purpose. scientific method A set of principles and procedures that help researchers to systematically understand previously unexplained events and conditions. stakeholders Shareholders, customers, suppliers, governments, and any other groups with a vested interest in the organization. teleworking Working from home, usually with a computer connection to the office; also called telecommuting values Stable, long-lasting beliefs about what is important in a variety of situations. virtual teams Teams whose members operate across space, time, and organizational boundaries and linked through information technologies to achieve organizational tasks.

CHAPTER SYNOPSIS
Organizational behaviour is a relatively young field of inquiry that studies what people think, feel, and do in and around organizations. Organizations are groups of people who work interdependently toward some purpose. OB concepts help us to predict and understand organizational events, adopt more accurate theories of reality, and influence organizational events. This field of knowledge also improves the organizations financial health. There are several trends in organizational behaviour. Globalization requires corporate decision makers to be more sensitive to cultural differences, and seems to be associated with the recent rise in job insecurity, work intensification, and other sources of work-related stress. Information technology blurs the temporal and spatial boundaries between individuals and the organizations that employ them. It has contributed to the growth of telework -- an alternative work arrangement where employees work at home or a 2

Chapter 1 Introduction to the Field of Organizational Behaviour

remote site, usually with a computer connection to the office. Information technology is also a vital ingredient in virtual teams -- cross-functional groups that operate across space, time, and organizational boundaries. Another trend in organizations is the increasingly diverse workforce. Diversity potentially improves decision making, team performance, and customer service, but it also presents new challenges. A fourth trend is the employment relationships that have emerged from the changing work force, information technology, and globalization forces. Employment relationship trends include employability and contingent work. Values and ethics represent the fifth trend. In particular, companies are learning to apply values in a global environment, 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. These anchors include beliefs that OB knowledge should be multidisciplinary and based on systematic research, that organizational events usually have contingencies, that organizational behaviour can be viewed from three levels of analysis (individual, team, and organization), and that organizations are open systems. The open systems anchor suggests that organizations have interdependent parts that work

together to continually monitor and transact with the external environment. They acquire resources from the environment, transform them through technology, and return outputs to the environment. The external environment consists of the natural and social conditions outside the organization. External environments are generally much more turbulent today, so organizations must become adaptable and responsive. Knowledge management develops an organizations capacity to acquire, share, and use knowledge in ways that improves its survival and success. Intellectual capital is knowledge that resides in an organization, including its human capital, structural capital, and relationship capital. It is a firms main source of competitive advantage. Organizations acquire knowledge through grafting, individual learning, and experimentation. Knowledge sharing occurs mainly through various forms of communication. Knowledge sharing includes communities of practice, networks where people share their expertise and passion for a particular activity or interest. Knowledge use occurs when employees realize that the knowledge is available and that they have enough freedom to apply it. Organizational memory refers to the storage and preservation of intellectual capital.

POWERPOINT SLIDES
Canadian Organizational Behaviour includes a complete set of Microsoft PowerPoint files for each chapter. (Please contact your McGraw-Hill Ryerson representative to find out how instructors can receive these files.) In the lecture outline that follows, a thumbnail illustration of each PowerPoint slide for this chapter is placed beside the corresponding lecture material. The slide number helps you to see your location in the slide show sequence and to skip slides that you dont want to show to the class. (To jump ahead or back to a particular slide, just type the slide number and hit the Enter or Return key.) The transparency masters for this chapter are very similar to the PowerPoint files.

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LECTURE OUTLINE (with PowerPoint slides)

INTRODUCTION TO THE FIELD OF ORGANIZATIONAL BEHAVIOUR
Introduction to the Field of Organizational Behaviour Slide 1

OPENING VIGNETTE
Four Seasons Hotels and Resorts have leveraged the power of organizational behaviour to become one of the top luxury hotels in the world as well as one of the best places to work. CEO Isadore Sharp emphasizes the importance of relying on the creativity of its staff and maintaining a culture that supports employee involvement. Four Seasons pays close attention to employee competencies, corporate culture, leadership, communication, motivation, organizational structure

Four Seasons and OB Slide 2

THE FIELD OF ORGANIZATIONAL BEHAVIOUR

Organizational behaviour (OB) -- study of what people think, feel, and do in and around organizations.
What are Organizations? Slide 3

Organizations -- groups of people who work interdependently toward some purpose Structured patterns of interaction -- expect each other to complete certain tasks in a coordinated way Organizations have purpose -- e.g. producing oil from oil sands or selling books on the Internet.

Chapter 1 Introduction to the Field of Organizational Behaviour

WHY STUDY ORGANIZATIONAL BEHAVIOUR?

1. Satisfy the need to understand and predict Helps us figure out why organizational events happen
Why Study OB? Slide 4

2. Helps us to test personal theories Helps to question and rebuild personal theories 3. Influence our environment Improves our ability to work with people and influence organizational events

EMERGING TRENDS IN ORGANIZATIONAL BEHAVIOUR

Trends:Globalization Slide 5

1. Globalization SAP, the German software giant and others operate in a global economy -- activities in other parts of the world, participates in other markets, competes against organizations located elsewhere Requires new organizational structures and different forms of communication Adds more diversity to the workforce. Increases competitive pressures, mergers, work intensification and demands for work flexibility from employees. 2. Information Technology & OB Re-designs jobs, facilitates competitive advantage through knowledge management. Telework (telecommuting) alternative work arrangement -- working from home, usually with a computer connection to the office -- need to replace face time with performance output -- changes employment relationship expectations Virtual teams -- operate across space, time, and organizational boundaries with members who communicate mainly through electronic technologies

Trends: Information Technology Slide 6

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Trends: Workforce Diversity Slide 7

3. Changing Work Force More diversity -- primary categories gender, age, ethnicity, etc. -- secondary categories -- some control over (eg. education, marital status) -- more women in workforce -- new age cohorts (eg. Generation-X, Generation Y) Implications -- leverage diversity advantage (e.g. decision making, provide better customer service). -- adjust to the new workforce -- e.g. Gen-X employees value flexibility and opportunities to use new technology; Gen-Y employees expect responsibility and involvement. 4. Emerging employment relationships Employability -- many tasks, not a specific job -- need to continuously learn skills Contingent work -- no explicit or implicit contract for long-term employment, or minimum hours of work can vary in a nonsystematic way 5. Workplace Values and Ethics Values stable, long-lasting beliefs about what is important. Ethics -- the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad

Trends:Employment Relationship Slide 8

Employability vs Job Security Slide 9

Trends: Workplace Values & Ethics Slide 10

Chapter 1 Introduction to the Field of Organizational Behaviour

CORPORATE SOCIAL RESPONSIBILITY (CSR)

Corporate Social Responsibility Slide 11

Corporate social responsibility -- an organizations moral obligation toward all of its stakeholders Stakeholders -- shareholders, customers, suppliers, governments, and any other groups with a vested interest in the organization Triple bottom line -- part of corporate social responsibility -- supporting economic, social, and environmental spheres of sustainability Various stakeholders (job applicants, current employees, and suppliers) associate with firms based on their CSR Many firms talk about their CSR, but few practise CSR or have their actions evaluated

FIVE ANCHORS OF ORGANIZATIONAL BEHAVIOUR

Org. Behaviour Anchors Slide 12

1. Multidisciplinary anchor Many OB concepts adopted from other disciplines -- e.g. psychology concepts in motivation, perceptions -- emerging fields: communication, information systems, marketing, womens studies OB is developing its own models and theories, but needs to continue scanning other fields for ideas.

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2. Systematic research anchor OB researchers rely on scientific method -- a set of principles and procedures that help researchers systematically understand previously unexplained events and conditions. OB also adopting a grounded theory approach dynamic and cyclical approach that provides constant interplay between data gathering and developing theoretical concepts. 3. Contingency anchor A particular action may have different consequences in different situations -- no single solution is best in all circumstances Need to diagnose the situation and select best strategy under those conditions Universal theories welcomed where contingency theories offer little advantage 4. Multiple levels of analysis anchor OB issues can be studied from individual, team, and/or organizational level Topics identified at one level, but usually relate to all three levels 5. Open systems anchor Open systems -- organizations consist of interdependent parts that work together to continually monitor and transact with the external environment Receives inputs and transforms them through technology into outputs that are returned to the external environment Some output valued (services), but other output have adverse effects (eg., layoffs, pollution) External environment -- natural and social conditions outside the organization -- stakeholders anyone with a vested interest in the organization -- environment is increasingly turbulent rapid change Organizations need to adapt to external environment Need to coordinate subsystems and be aware of unintended consequences

Open Systems Anchor of OB (build) Slide 13

Chapter 1 Introduction to the Field of Organizational Behaviour

KNOWLEDGE MANAGEMENT
Any structured activity that improves an organizations capacity to acquire, share, and use knowledge for its survival and success
Knowledge Management Defined Slide 14

Intellectual capital Knowledge residing in the organization -- sum of its human, structural, and relationship capital 1. Human capital -- employees possess and generate 2. Structural capital -- captured in systems and structures 3. Relationship capital -- value derived from external stakeholders (eg., customer loyalty)

Intellectual Capital Slide 15

KNOWLEDGE MANAGEMENT PROCESSES

Knowledge management at Clarica Life Insurance Company Clarica Life Insurance Company uses its company-wide Intranet (called Clarica Connects) to help agents develop and share their expertise in ways that generate innovative solutions. 1. Knowledge acquisition -- organization's ability to extract information and ideas from its environment as well as through insight Grafting -- acquiring knowledge by hiring individuals or buying entire companies Individual learning -- learning about external environment Experimentation -- creativity, insight 2. Knowledge sharing -- distributing knowledge to where it is needed in the organization Communication -- intranets, face-to-face, teams, etc. -- communities of practice -- informal groups bound together by shared expertise and passion for a particular activity or interest Rewards -- encourages info sharing

Knowledge Management at Clarica Slides 16

Knowledge Management Processes Slides 17

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3. Knowledge use Knowledge awareness know that relevant knowledge is available Freedom to apply knowledge Organizational memory -- storage and preservation of intellectual capital -- includes employee knowledge and embedded knowledge
Organizational Memory Slide 18

Retaining intellectual capital Keeping good employees Transferring knowledge from one person to the next Transferring human capital to structural capital Organizations also need to unlearn Cast off routines and patterns of behaviour that are no longer appropriate

TRANSPARENCY MASTERS
Transparency 1.1: What are Organizations? Transparency 1.2: Why Study Organizational Behaviour? Transparency 1.3: Trends: Globalization Transparency 1.4: Trends: Information Technology Transparency 1.5 Trends: Workplace Diversity Transparency 1.6: Trends: Employment Relationship Transparency 1.7: Employability vs Job Security Transparency 1.8: Trends: Workplace Values & Ethics Transparency 1.9: Corporate Social Responsibility Transparency 1.10: Organizational. Behaviour Anchors Transparency 1.11: Open Systems Anchor of OB Transparency 1.12: Knowledge Management Defined Transparency 1.13: Intellectual Capital Transparency 1.14: Knowledge Management Processes Transparency 1.15: Organizational Memory Defined

Chapter 1 Introduction to the Field of Organizational Behaviour

SOLUTIONS TO DISCUSSION QUESTIONS

1. Organizational behaviour seems to get more respect from people who have been in the workplace a while than from students who are just beginning their careers. Why would the knowledge of OB be important to those of us who specialize in a field such as accounting, marketing, engineering, etc.? This chapter begins by saying that this book is about people working in organizations. Many individuals will specialize in a distinct field of study and be primarily focused on acquiring technical knowledge and skills in this chosen field. You may think of this technical knowledge/skills as providing what you need to know and be able to do to be successful in your chosen field. OB knowledge benefits us by addressing the people issues needed to apply technical knowledge and skills. Knowledge of OB provides valuable knowledge of how to address these people issues when applying accounting, marketing, engineering and other ideas in organizational settings. Ultimately, an individuals career success may be largely determined by the ability to understand and apply concepts in motivation, communication, team dynamics and other OB topics. 2. Look through the list of chapters in this textbook and discuss how globalization could influence each organizational behaviour topic. This is an open-ended question which could be used as an exercise activity with subsequent class discussion. The main objective is to help students understand how globalization has profound implications for behaviour in organizations. Here are some of the topics linked to globalization. Students will certainly identify others: Teams Employee motivation Perception Values Communication Stress Communicating in organizational settings Interpersonal conflict Leadership Organizational change 3. Organizational theories should follow the contingency approach. Comment on the accuracy of this statement. OB theories must be simple, yet accurate. While simplicity calls for universal theories, accuracy usually requires the contingency approach because most human behaviour is too complex to understand sufficiently through universal (i.e., one best way) theories. Contingency theories are more refined because they recognize that environmental and personal characteristics moderate most causeeffect relationships. In other words, while it would be preferable to use universal theories for the sake of simplicity, we often must rely on contingency theories to sufficiently understand and predict organizational behaviour. 4. Employees in the City of Calgarys water distribution unit were put into teams and encouraged to find ways to improve efficiency. The teams boldly crossed departmental boundaries and areas of management discretion in search of problems. Employees working in other parts of the City of Calgary began to complain about these intrusions. Moreover, when some team ideas were implemented, the city managers discovered that a dollar saved in the water distribution unit may have cost the organization two dollars elsewhere. Use the open systems anchor to explain what happened here [NOTE: This discussion question is based on a real incident in Calgary. For details, see: B. Sheehy, A Near-Run Thing: An Inside Look at a Public-Sector Productivity Program, National Productivity Review, Spring 1985, pp. 139-145.] This incident illustrates that organizations are open systems with many interdependent parts that function as a whole to achieve a set of goals. This city has many subunits with close links to each other. When the water distribution unit employees tried to improve efficiency, the interdependence of these subsystems became apparent. Some of the actions that improved productivity in one area sent ripples through other parts of the organization. In other words, other departments and subunits had to adapt to changes implemented in the TDS area. Indeed, savings in one area sometimes resulted in increased costs in another area.

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5.

After hearing a seminar on knowledge management, an oil company executive argues that this perspective ignores the fact that that oil companies could not rely on knowledge alone to stay in business. They also need physical capital (such as pumps and drill bits) and land (where the oil is located). In fact, these two may be more important than what employees carry around in their heads. Discuss the merits of the oil executives comments. Although less common, many executives still see value in land and capital. They give lip service to the idea that People are our most value assets but still dont understand that land and capital have little value without people. For instance, this oil company would not have found land with oil deposits unless it had the knowledge to find that oil. It could not operate the equipment to extract and refine the oil unless it had enough knowledge. The executives comment that companies could not remain in business with only knowledge. On the contrary, some of the wealthiest organizations (including many software companies and consulting firms) have few physical assets. Banks are selling off their corporate headquarters because their competitive advantage -- their source of wealth -- is found in knowledge. Oil companies are also outsourcing several aspects of physical assets. Their ships are often owned by others. The drilling equipment is leased or owned by companies that specialize in drilling. The major oil companies today are mainly in the knowledge business -- scouting for oil or marketing what others have found and extracted. This question also suggests a subtle misunderstanding by the executive about knowledge management. Although much corporate knowledge resides in the brains of its employees (called human capital), it also resides in the organizations systems and structures (known as structural capital).

suppliers, and other external sources that provide added value. Retaining intellectual capital refers to the discussion in the textbook about retaining organizational memory. This includes keeping good employees and systematically transferring their human capital into structural capital when they must leave. It also includes documentation -bringing out hidden knowledge, organizing it, and putting it in a form that can be available to others. It also includes embedding knowledge in the organizations systems and structures. 7. What effect, if any, does the increasing diversity of the workforce have on managing and working in organizations? Most organizations in Canada have an increasingly diverse multicultural workforce. Benefits of this increasing demographic diversity include increased organizational effectiveness due to being able to bring together diverse points of view. A diverse workforce may also be able to provide better customer service to a diverse customer base. In addition, diversity may become the organizations competitive advantage by improving decision-making and team performance on complex tasks. Potential challenges resulting from a diverse workforce include increases in value-based conflict among employees and cross-cultural communication issues. In addition, managers will need to continuously test to ensure that OB practices related to work teams, employee involvement, performance-based rewards and other applications are effective.

6.

Fully describe intellectual capital, and explain how an organization can retain this capital. Intellectual capital is the sum of an organization's human capital, organizational capital, and relationship capital. Human capital refers to the knowledge that employees possess and generate. Structural capital is the knowledge captured and retained in an organization's systems and structures. Relationship capital is the value derived from satisfied customers, reliable

Chapter 1 Introduction to the Field of Organizational Behaviour

8.

Find two recent news items and explain how this information relates to corporate social responsibility. Increasingly, Canadians believe that business executives have a responsibility to consider how their decisions will impact their employees, communities and the country. Corporate social responsibility refers to an organizations moral obligation toward all of its stakeholders. Encourage students to look for news items that describe examples of an organization demonstrating/not demonstrating high levels of moral obligation. Be prepared to facilitate an open-ended discussion. The following questions may be helpful to guide this discussion: 1. 2. 3. What event or organizational decision was identified in the news item? What stakeholder(s) is/are impacted by the event or decision described? What effect did the event or decision have on each of these stakeholders?

What long-term consequence (positive or negative) may the organization experience as a result of this event/decision?

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PHOTO CAPTION CRITICAL THINKING QUESTIONS

Syncrude Canada
Q: In your opinion, what organizational behaviour concepts described in this book would have the greatest influence on the success of Syncrude and other mammoth projects? A: This is a question for classroom debate. Some students might say that this photo caption emphasizes organizational structure. Others might suggest that communication plays a major role in the success of major projects. Teams will likely be mentioned as another OB concept.

Vancouver City Savings Credit Union

Q: Why do organizations such as VanCity apply the triple bottom line, whereas most companies in Canada do not? A: Students may need to speculate somewhat on the answer to this question. The most likely answer is that many corporate leaders are so focused on short-term shareholder value that they fail to see that satisfying the needs of other stakeholders is often in the best long-term interest of shareholders. Moreover, these leaders are rewarded for their fairly short-term financial performance, not the firms long-term survival and success. A third factor may be the inherent ambiguity regarding the benefits of satisfying the needs of stakeholders other than sahareholders.

Banana Magazine
Q: How do magazines such as Banana encourage multiculturalism in Canada? A: To answer this question, it would be great if the instructor had a copy of this (or a similar) magazine to illustrate the material within the magazine. However, generally, these magazines celebrate cultural differences and recognize that people with different backgrounds can adapt and live successfully within this diversity.

Clarica Life Insurance Company

Q: Along with independent sales agents, what other professional groups would benefit from an intranetbased community of practice A: Basically, any knowledge-oriented group would benefit from a community of practice because they have the opportunity for knowledge sharing. Commonly mentioned examples are engineers working in different regions for an organization, academics in specific fields of study, and medical specialists.

ACTIVITY 1.1: CASE ANALYSIS THE GREAT IDEA THAT WASNT

These case notes were prepared by Fiona McQuarrie, University College of the Fraser Valley

Case Synopsis
After the birth of her daughter, Irina, a mortgage officer, decided to telecommute to her job while working at home. The arrangement is not working as well as she had hoped, because of her isolation from the office and because of problems with establishing a working atmosphere at home. Her employer has told her that if her work doesnt improve within the next month, she will have to return to regular working hours at the office. Although the workplace and the characters in the case are fictional, the problems encountered by Irina and her employer are all taken from studies of real-life telecommuting arrangements. (See, for example, Andrew DuBrin, Comparison of the Job Satisfaction and Productivity of Telecommuters versus In-House Employees, Psychological Reports, June 1991, pp. 1223-1234; Fiona A. E. McQuarrie, Telecommuting: Who Really Benefits?, Business Horizons, November-December 1994, pp. 79-83; Margrethe H. Olson and Sophia B. Primps, Working at Home with Computers: Work and Non-Work Issues, Journal of Social Issues, Fall 1984, pp. 97-112; Barbara J. Risman and Donald Tomaskovic-Dewey, The Social Construction of Technology: Microcomputers and the Organization of Work, Business Horizons, May-June 1989, pp. 71-75.) 1. What are the major problems in this telecommuting arrangement? There are several major problems that can be identified in this case. First, Irina is having trouble working at home where there is no suitable physical space for her to work, and while she is attempting to simultaneously work and care for a newborn baby. Clients have also complained to the employer about distractions like a crying baby while dealing with Irina on the phone. This is an important point, given the banks promise of better customer service as its competitive advantage in a busy market. Second, while the employer is being supportive in supplying a computer and couriering work to and from Irinas home, the employer appears to have unrealistic expectations of what Irinas productivity should be. Third, Irina is missing out on potential new clients by not physically being in the office when new customers drop in. Fourth, while Irina is still visiting the office once a week, she is missing regular contact with her co-workers and thus is out of the loop for the informal transmission of information in the workplace. Her co-workers also appear to be resentful of her new work arrangement. 2. Is it Irinas or the banks responsibility to solve these problems? 3. This question could generate some interesting debates about the workers and the employers responsibilities in ensuring satisfactory working conditions. Irina proposed the telecommuting arrangement, so it could be said that she should have realized the problem of trying to work and care for a baby, and the difficulties that her physical and social isolation from the office could cause. There are also some problems in projecting a professional image when working from home (e.g. Irinas daughter crying in the background while Irina was on the phone), which Irina could have anticipated. On the other hand, the employer probably should not expect greater productivity just because an employee works at home. The employer might also need to provide additional support to Irina beyond a computer and a regular courier service, rather than attributing problems only to Irinas perceived inability to manage her work arrangement. The case mentions that a previous employees telecommuting arrangement was a failure, which suggests that the employer does not have a good idea of how to manage telecommuting successfully. What solutions can you suggest to the problems that you have identified?

Depending on how the problem has been defined, there are numerous solutions that could be applied in this case. First, Irina and the company obviously need to renegotiate the terms of the telecommuting arrangement. There needs to be clearer expectations (on both sides) of Irinas productivity. The issue of Irinas time in the office also should be resolved, since once a week does not seem to be sufficient for her to stay involved and to acquire new clients. If Irina is concerned about her ability to spend time away from her child, the employer could subsidize day care for her during the time she is in the office. The employer could also consider offering some day care arrangements at the office, which would likely be a benefit to other employees with child care responsibilities. Irina and the company could also explore ways to refer walk-in clients to her when she is not physically in the office. Second, there could better working conditions for Irina at home. Because of the numbers of workers working part- or full-time at home, many office furniture companies now make cabinets containing computer and filing storage, which can be closed so that the work equipment is not visible when not in use. This would partially solve the problem of Irina being unable to avoid looking at work when she is not working. The cost of purchasing of such a piece of furniture could be covered by either Irina or the employer, or they could share the cost. Third, Irina could consider arranging for part- or full-time child care while she is working at home. While this would somewhat reduce the savings generated by telecommuting, it would undoubtedly improve her ability to work without distraction and also to present a professional image to her clients. It would also possibly permit her to work different hours, depending on the scheduling of the child care, and thus make it easier for her to be available outside regular office hours, as she had suggested to her employer. The employer could subsidize or cover the cost of childcare to assist Irina in implementing this arrangement, since increased productivity and professionalism would also benefit the employer. Fourth, the employer may want to examine how committed it is to the idea of telecommuting, and

explore ways to support such arrangements if it is decided that telecommuting is a viable option. It appears that the employer is allowing telecommuting on a case-by-case basis, and there might be benefits to formalizing telecommuting as an option for more employees if the company decides this is appropriate. Having telecommuting available to other employees might reduce the resentment that Irinas co-workers feel (they may be angry because they feel she is receiving special treatment), and could also be a selling point in recruiting new employees. If the employer decides to formalize telecommuting as an option, there are cost savings that could be generated (e.g. bulk purchase of computers, office supplies, and office furniture). Some employers have also developed semitelecommuting arrangements if many employees live considerable distances from a central workplace. Rather than setting up working arrangements in each individual employees home, the employer establishes a satellite office: an office space equipped with computers, files, photocopiers, and other office furnishings, in a location convenient to the employees. The satellite office is not a formal place of business open to the public, but instead is a non-homebased telecommuting site. Employees who wish to telecommute travel to the satellite office rather than to the central workplace, and telecommute from there rather than from their homes. This arrangement avoids most of the problems associated with working from home, while still allowing the employees to avoid extensive travel and other work-related costs. Having telecommuting employees working from one place also allows the employer a greater degree of control over work, instead of managing multiple individual telecommuting arrangements. Finally, Irina and the employer could also question whether telecommuting is appropriate for her situation. Telecommuting does not work for every employee and for every job. Since Irinas job is, to some extent, dependent on regular interaction with her co-workers and developing a client base from new customers, it may be that telecommuting is inappropriate for her job. She may benefit herself and the employer by returning to an office-based work arrangement.

ACTIVITY 1.2: TEAM EXERCISE HUMAN CHECKERS

Purpose
This exercise is designed to help students understand the importance and application of organizational behaviour concepts. the same task and will have the same amount of time to plan and practice the task. At the end of this planning and practice, each team will be timed while completing the task in class. The team that completes the task in the least time wins. Step 3: Other than chairs, no special materials are required or allowed for this exercise. Although the task is not described here, students should learn the following rules for planning and implementing the task: Rule #1: You cannot use any written form of communication or any props other than chairs to assist in the planning or implementation of this task. Rule #2: You may speak to other students in your team at any time during the planning and implementation of this task. Rule #3: When performing the task, you must move only in the direction of your assigned destination. In other words, you can only move forward, not backwards. Rule #4: When performing the task, you can move forward to the next space, but only if it is vacant (see Exhibit 1 in textbook). Rule #5: When performing the task, you can move forward two spaces, if that space is vacant. In other words, you can move around a student who is one space in front of you to the next space if that space is vacant (see Exhibit 2 in textbook). Step 4: When all teams have completed their task, the class will discuss the implications of this exercise for organizational behaviour.

Materials
None, but the instructor has more information about the teams task. [Note: The chairs are optional. This exercise sometimes works better without chairs. Instead, the instructor might use two lines of tape on the floor to keep student teams in a straight line.]

Task Description (read to students)

Each team will develop and execute a strategy in which the three team members on either side of an open space will move to the other side in the same final order (see exhibit on this page). Team members 1, 2, and 3 begin on the left side and must move to the right side in the same order. Team members 4, 5, and 6 will begin on the right side of the open chair or space and must move to the left side in the same order (see Exhibit below).
Exhibit
Before 1 2 3 4 5 6

After 4 5 6 1 2 3

Instructions (provided in textbook)

Step 1: Form teams with six students each. (NOTE: Larger teams may be formed, but all teams must be the same size and have the same number of people on each side.) If possible, each team should have a private location where team members can plan and practice the required task without being observed or heard by other teams. Step 2: All teams will receive special instructions in class about the teams assigned task. All teams have

Comments for Instructors

This exercise is also called Traffic Jam. Halfway through the planning stage, it may be useful to advise students that the task can be completed in less than 20 seconds. This makes some teams rethink their strategy. The exercise offers plenty of fun and is an excellent ice breaker for the beginning of the course. However, be prepared to use up an entire 45 minute class for this exercise with some time for debriefing. It usually takes teams up to 30 minutes to figure out the solution and to improve their efficiency in the task.

Then, time is required for each team to demonstrate and compete.

Discussion Questions
1. Identify organizational behaviour concepts that the team applied to complete this task. Human checkers is an exciting exercise that applies many organizational behaviour topics. It relates to teams because the planning and practice stage involves team development and performance. Leadership may be an issue here because some people help the team to work toward its goals. Creativity and decision making are relevant because the team must figure out how to get everyone to the opposite side within the constraints indicated. Some students might note that they are not as good at either figuring out the method or synchronizing as well as other people in the team. This relates to the elements of

individual behaviour. Conflict mat become an issue if some team members dont work as effectively as others. 2. What personal theories of people and work teams were applied to complete this task. This is a subjective question in which students reveal their personal theories. It is useful to identify the types of theories that emerge, that is, which topics (leadership, individual performance, etc.) a mentioned most often. 3. What organizational behaviour problems occurred and what actions were (or should have been) taken to solve them. Several OB problems potentially emerge. Team dynamics are most often mentioned. Conflict sometimes occurs. Leadership may be an issue where one person dominates the process too much.

ACTIVITY 1.3: TEAM EXERCISE DEVELOPING KNOWLEDGE FROM MISTAKES

Purpose
The problem that people make from their mistakes isnt so much the mistake itself. Rather, its that they do not take the time to learn from those mistakes. This exercise is designed to help you understand how to gain knowledge from past mistakes in a specific situation. incident. Think of this knowledge as a road map for others to follow when they begin their first day of class or first day at work, go on a first date, etc. This activity requires teams of 5 or 6 people, a situation identified by the instructor, and personal mistakes in that situation.

Comments for Instructors

The first day of class is a suitable and usually entertaining topic because all students have obviously experienced this event and many probably have hilarious examples of how events went wrong. For example, a student might describe how he/she sat in class and realized half way through the first lecture that it was the wrong room! Another might describe how he/she arrived late because the parking lot was full. From these stories, students can explore what can be learned from them. For example, form the incident about being in the wrong room, they might note the need to look closely at room numbers, double check last minute room changes, ask others in the class to confirm that the course in this room is what he/she assumes, and so on. This exercise can be fun because it reveals some very human activities, as well as the idea that knowledge emerges from these memorable (and sometimes infamous) events. It teaches students to conduct effective debriefing sessions -- a powerful way to extract knowledge from another persons experiences. Notice that this exercise also reshapes our thinking about mistakes. Rather than a source of embarrassment, mistakes are learning events. This point is consistent with the experiential learning approach that is described in Chapter 2.

Instructions
Step 1: The class will be divided into small teams (four to six people). The instructor will identify a situation that students would have experienced and, therefore, at which they probably have made mistakes. This could be the first day at work, the first day of a class, or a social event such as a first date. Step 2: After the topic has been identified, each team member writes down an incident in which something went wrong in that situation. For example, if the topic is the first day of classes, someone might note how they were late for class because they forgot to set their alarm clock. Step 3: Each student describes the mistake to other team members. As an incident is described, students should develop a causal map of the incident. They should ask why the problem happened, what were the consequences of this incident, did it happen again, and so on. The knowledge might not be as obvious as you think. For example, in the incident of being late, the learning might not be that we should ensure the alarm clock is set. It may be a matter of changing routines (going to bed earlier), rethinking our motivation to enroll in a program, and so on. Step 4: As other incidents are analyzed, the team should begin to document specific knowledge about the

ACTIVITY 1.4: SELF-ASSESSMENT IT ALL MAKES SENSE?

Purpose
This exercise is designed to help students understand how organizational behaviour knowledge can help you to understand life in organizations. in Chapter 10. There are several reasons why people continue to support a bad decision. These include: (a) self-justification -- people want to present themselves in a positive light; (b) gamblers fallacy -- decision makers underestimate the risk and over estimate their probability of success; (c) perceptual blinders -decision makers do not see the problems soon enough; and (d) closing costs -- decision makers will persist because the costs of ending the project are high or unknown. 3. Organizations are more effective when they prevent conflict among employees. FALSE. Actually, the correct answer is in a state of flux. The dominant OB research indicates that task-oriented is often beneficial (such as in decision making) whereas socioemotional conflict has negative consequences. But some emerging research concludes that even task-oriented conflict can be a problem. We also discuss both the benefits of and problems with conflict in Chapter 13. 4. It is better to negotiate alone than as a team. FALSE. As described in the latter part of Chapter 13, team listening is an important virtue in negotiations. The more people listening, the more your side will hear valuable information and understand the subtle nonverbal cues communicated by the other party. This information makes it easier to identify low-cost concessions or proposals that will satisfy the other side. 5. Companies are most effective when they have a strong corporate culture. FALSE. As with so many organizational behaviour concepts, the more precise answer is it depends. In Chapter 16, students will read that there is a weak relationship between corporate culture strength and organizational performance. Three reasons are offered. First, a strong culture can be a problem when the values are inconsistent with the organizations environment. Second, a very strong culture can blind employees from seeing other perspectives. Third, a very strong culture suppresses dissenting values that may be

Instructions
Read each of the statements below and circle whether each statement is true or false, in your opinion. The class will consider the answers to each question and discuss the implications for studying organizational behaviour. After reviewing these statements, the instructor will provide information about the most appropriate answer. (Note: This activity may be done as a self-assessment or as a team activity.)

Comments for Instructors

This exercise addresses the point that common sense isnt always correct. Of course, some students will be counter-intuitive in anticipation that these are trick questions. We have included some true statements to complicate the exercise. By reviewing each statement, you can help students to see that organizational behaviour systematically studies these issues and helps us to correct or clarify popular misperceptions. Here are the eleven statements with their correct answers and references to their discussion in the textbook. 1. A happy worker is a productive worker. TRUE. To be more accurate, the answer is true, to some extent. This is one of those truths that students will probably answer correctly and many OB instructors will answer incorrectly because they rely on old organizational behaviour research. The latest research indicates that job satisafaction has a moderately strong association with job performance (a correlation of around .30). For details, see Chapter 4 on workplace emotions and attitudes. 2. Decision makers tend to continue supporting a course of action even though information suggests that the decision is ineffective. TRUE. This statement represents the escalation of commitment phenomenon, which is described

important in the future as the environment changes. 6. Employees perform better without stress. FALSE. As we learn in Chapter 7, some level of stress is essential for life. We need a certain level of stress to energize us. The problem is that we sometimes (or often) experience stress beyond this beneficial level. 7. Effective organizational change always begins by pinpointing the source of its current problems. FALSE. This statement refers to the dominant model of problem solving and organizational change, namely, to identify the problem before looking for solutions. In Chapter 17, we introduce an emerging perspective of organizational change called appreciative inquiry. According to this model, dwelling on problems can bog down the change process and degenerate into political. Instead, change agents need to focus the group on its potential and positive elements. 8. Female leaders involve employees in decisions to a greater degree than do male leaders. TRUE. There is lot of debate about whether men and women lead differently. As we learn at the end of Chapter 14, men and women are mostly similar in their leadership styles. But there is one exception: female leaders involve employees in decisions to a greater degree than do male leaders. Of course, some female leaders are not participative, and some male leaders are very participative. But generally, female leaders are more participative. 9. People in Japan value group harmony and duty to the group (high collectivism) more than Canadians or Americans (low collectivism).

FALSE. This statement represents one of the most widely held views in organizational behaviour, namely that Japanese people have high collectivism and low individualism. Yet, several studies (including a recent major meta-analysis) now conclude that Japanese people tend to have fairly low collectivism. These recent findings are reported in Chapter 2. 10. Top-level executives tend to exhibit a Type A behaviour pattern (i.e., hard-driving, impatient, competitive, short-tempered, strong sense of time urgency, rapid talkers). FALSE. Actually, top-level executives tend to exhibit the Type B behaviour pattern. In other words, they tend to work steadily, take a more relaxed approach to life, and be even-tempered. In fact, these features may provide superior human relations skills which give Type B people more promotions. Type A/B patterns are described in Chapter 7. 11. Employees usually feel overreward inequity when they are paid more than coworkers performing the same work. FALSE. When it comes to money, people tend to play interesting mind games to avoid feeling overreward inequity. Students will read in Chapter 5 that overrewarded employees often distort their perceived inputs or outcomes to reduce inequitable feelings. For example, they might begin to think that their higher pay is justified because they offer more skills or experience than they previously thought. They might think: This large bonus means that the company values my talent more than I thought!

ACTIVITY 1.5: SELF-ASSESSMENT TELEWORK DISPOSITION ASSESSMENT

Purpose
This exercise is designed to help students to assess the extent to which they possess the personal characteristics most suitable for telework. This instrument is designed to help students to identify their telework disposition, that is, the degree to which their needs, values, and competencies are compatible with teleworking arrangements. This scale does not cover every personal characteristic related to effective teleworking, but it measures three of the most important dispositions. Also, please keep in mind that this scale only considers personal characteristics. Other factors, such as organizational, family, technological systems support must also be taken into account. Students are asked to read each of the 14 statements in this instrument and indicate the extent to which they agree or disagree that the statement describes them.

Overview and Instructions

Teleworking (also known as telecommuting) has become one of the fastest-growing developments in the workplace. With advanced computer and telecommunications systems, knowledge workers can now perform their work at home or another location away from their usual office. But effective teleworking requires more than technology. Some people are better than others tat surviving and succeeding in teleworking arrangements.

Feedback for the Telework Disposition Assessment

[NOTE: The following information is also provided in Appendix B and/or the Student CD.] This scale assesses three personal dispositions that are identified in the literature as characteristics of effective teleworkers: (a) high company alignment, (b) low social needs at work, and (c) independent initiative.

Company alignment
Company alignment estimates the extent to which you follow company procedures and have values congruent with company values. The greater the alignment, the more likely that you can abide by company practices while working alone and with direct supervision. While some deviation from company practices may be appropriate, teleworkers need to agree with company values and provide work that is consistent with company expectations most of the time. Scores on this scale range from 4 to 20. Score 15 to 20 9 to 14 4 to 8 Interpretation High company alignment Moderate company alignment Low company alignment

Low social needs at work

People with a high score on this subscale do not rely on co-workers to satisfy their social needs. Successful teleworkers tend to score higher on this subscale 9i.e. have lower social needs at work) because teleworking offers less opportunity for social interaction with coworkers than when working in an office setting each day. Scores on this scale range from 4 to 20. Notice that HIGH scores represent LOW social needs. Score 15 to 20 9 to 14 4 to 8 Interpretation Low social needs Moderate social needs High social needs

Independent initiative
One of the most important characteristics of successful teleworkers is that they are able to set their own work goals and maintain a productive work schedule without direct supervision. People who score higher on this subscale tend to have a higher degree of independent initiative. Scores on this scale range from 6 to 30. Score 24 to 30 15 to 23 6 to 14 Interpretation High independent initiative Moderate independent initiative Low independent initiative

Total Telework Disposition

This overall score combines the results for company alignment, social needs at work, and independent initiative. A higher score indicates that students will probably be more satisfied and productive in a teleworking arrangement than someone with a lower score on this scale. Specifically, people with high scores have higher alignment with company values and practices, lower social needs at work, and higher independent initiative. Scores on this scale range from 14 to 70. Score 54 to 70 34 to 53 14 to 33 Interpretation High telework disposition Moderate telework disposition Low telework disposition

SUPPLEMENTAL CASE AN UNTIMELY INCIDENT AT ANCOL CORP. STUDENT HANDOUT

Paul Simard was delighted when Ancol Ltd. offered him the job of manager at its Jonquiere, Quebec plant. Simard was happy enough managing a small metal stamping plant with another company, but the headhunters invitation to apply to the plant manager job at one of Canadas leading metal fabrication companies was irresistible. Although the Jonquiere plant was the smallest of Ancols 15 operations across Canada, the plant manager position was a valuable first step in a promising career. One of Simards first observations at Ancols Jonquiere plant was that relations between employees and management were strained. Taking a page from a recent executive seminar that he attended on building trust in the workplace, Simard ordered the removal of all time clocks from the plant. Instead, the plant would assume that employees had put in their full shift. This symbolic gesture, he believed, would establish a new level of credibility and strengthen relations between management and employees at the site. Initially, the 250 production employees at the Jonquiere plant appreciated their new freedom. They felt respected and saw this gesture as a sign of positive change from the new plant manager. Two months later, however, problems started to appear. A few people began showing up late, leaving early, or take extended lunch breaks. Although this represented only about five percent of the employees, others found the situation unfair. Moreover, the increased absenteeism levels were beginning to have a noticeable effect on plant productivity. The problem had to be managed. Simard asked supervisors to observe and record when the employees came or went and to discuss attendance problems with those abusing their privileges. But the supervisors had no previous experience with keeping attendance and many lacked the necessary interpersonal skills to discuss the matter with subordinates. Employees resented the reprimands, so relations with supervisors deteriorated. The additional responsibility of keeping track of attendance also made it difficult for supervisors to complete their other responsibilities. After just a few months, Ancol found it necessary to add another supervisor position and reduce the number of employees assigned to each supervisor. But the problems did not end there. Without time clocks, the payroll department could not deduct pay for the amount of time that employees were late. Instead, a letter of reprimand was placed in the employees personnel file. However, this required yet more time and additional skills from the supervisors. Employees did not want these letters to become a permanent record, so they filed grievances with their labour union. The number of grievances doubled over six months, which required even more time for both union officials and supervisors to handle these disputes. Nine months after removing the time clocks, Paul Simard met with union officials, who agreed that it would be better to put the time clocks back in. Employee-management relations had deteriorated below the level when Simard had started. Supervisors were burnt out from overwork. Productivity had dropped due to poorer attendance records and increased administrative workloads. A couple of months after the time clocks were put back in place, Simard attended an operations meeting at Ancols headquarters in Toronto. During lunch, Simard described the time clock incident to Liam Jackson, Ancols plant manager in Northern British Columbia. Jackson looked surprised, then chuckled. Jackson explained that the previous BC plant manager had done something like that with similar consequences six or seven years ago. The previous manager had left some time ago, but Jackson heard about the BC timeclock from a supervisor during the managers retirement party two months ago. I guess its not quite like lightning striking the same place twice, said Simard to Jackson. But it sure feels like it.

Discussion Questions
1. 2. 3. What symptom(s) exist in this case to suggest that something has gone wrong? What are the root causes that have led to these symptoms? What actions should Ancol or Paul simard take to correct these problems?

 Copyright 1998 Steven L. McShane. This case is based on actual events, but names and some facts have been changed to provide a fuller case discussion.

SUPPLEMENTAL CASE ANALYSIS AN UNTIMELY INCIDENT AT ANCOL CORP.

Case Synopsis
This case describes the activities of Paul Simard after he became when he became manager at Ancol Corp.s plant in Jonquiere, Quebec. To build trust between management and employees, he removed the time clocks that kept track of employee work hours. Although employees appreciated this freedom to work without a time clock, some abused this privilege by showing up late and leaving early. This affected plant productivity. Supervisors spent more time counseling those who had attendance problems and filling out letters of reprimand. The letters, along with supervisors poor interpersonal skills, worsened relations. Another supervisor was added to cope with the additional work. After nine months, Simard agreed with union officials to reinstate the time clocks. Later, at a meeting of other Ancol managers, Simard learned that a similar situation had occurred at another plant a few years earlier. [NOTE: This case is a variation of an incident described in R. Daft, Organizational Theory, 3rd ed. (St. Paul, MN: West, 1989), pp. 16-17.] within the organization. A third type of drawing illustrates the cause-effect relationships in a time sequence. This typically starts with the poor relations, then removing the time clock, then initially increasing morale but also increasing absenteeism, and so on. This temporal image should reveal the complexity of events in the case. For example, poor relations was not the only cause of the removed time clocks. Paul Simards entry to the organization and his knowledge from the seminar also contribute to this action. (Instructors might notice how this is a classic example of garbage can decision making -- a problem, solution, decision maker, and situation collide to form a decision.] This case illustrates the problems facing organizations from an open systems view. The open systems view states that organizations are comprised of interdependent parts. We certainly see that here with the removal of time clocks. In particular, we see how removing time clocks leads to a string of unexpected consequences. In this case, removing the time clocks resulted in more work for supervisors. It also affected work activities in payroll and, eventually, posed a new set of problems for labor union leaders. Supervisors now had to use disciplinary counseling skills which many of them lacked. Although students might suggest that lack of counseling training is a problem here, notice that there is no mention that it was a problem before. It is possible in a unionized environment with process-oriented technology, that control systems are in place which minimize the need for supervisors to discipline employees. For example, time clocks control employee attendance behaviour or, at least, provide fact-based information. The main point, however, is that one action (removing time clocks) ripples through to other subsystems in the organization, as predicted by the open systems anchor. 2. What changes should occur to minimize the likelihood of these problems in the future? One answer to this question is to help people at Ancol recognize that organizations are open

Suggested Answers to Case Questions

1. Use the systems theory model to explain what happened when Ancol removed the time clocks. [SUGGESTION: This case works best when each discussion group is provided with a marker and acetate sheet or flip chart and asked to illustrate the events at Ancol from a systems perspective. The results are fascinating. Typically, some groups will diagram the systems model shown in Chapter 1. Their drawing reveals the subsystems in the case, such as employees, supervisors, control systems (time clock), and management. It may also show inputs (such as Paul Simards entry), outputs (lower productivity), and feedback from the environment (union grievances). Other student groups might try to diagram the relationships that affect each other, such as a series of interrelated lines among the subsystems

systems with interdependent parts. In other words, they need to be sensitive to the fact that changes in one part of the work unit affects other parts of the work unit, as we saw at this Ancol plant. The second change is to apply knowledge management practices so that what was previously learned about removing time clocks would be more quickly and readily known throughout the organization. The end of the case describes how Simard attended an operations meeting at Ancols headquarters in Cincinnati, where he learned that Ancols plant in Portland, Oregon had a similar experience six or seven years earlier. This illustrates the silos of knowledge problem that exists in large organizations. If Simard had known about the earlier incident, he might have avoided the action of removing time locks, or

might have taken steps to correct anticipated problems. Students should discuss ways that organizations such as Ancol can improve knowledge sharing. For example, the organization-wide meeting that Simard attended seems to help share knowledge among plant managers, albeit somewhat too late in this case. Alternatively, perhaps the company could leverage the benefits of Intranet technology to help employees and managers share experiences more fully. Even through an integrated e-mail system, Simard could have asked other managers if removing time clocks has been tried before, and with what consequences. Notice that knowledge sharing requires a culture of open communication and information sharing, not just the technology to make this possible.

SUPPLEMENTAL LECTURE: SINGLE AND DOUBLE LOOP LEARNING IN KNOWLEDGE MANAGEMENT

Knowledge management has its beginnings in the organizational behaviour writing about organizational learning. This concept was popularized by Peter Senges 1990 book, The Fifth Discipline , However, the concept can be traced back more than a dozen years earlier to the work of Chris Argyris and earlier still to scholars who introduced the idea that organizations are open systems. One of the earliest organizational learning perspectives was advanced by Chris Argyris in the late 1970s. Argyris suggested that organizational learning involves the detection and correction of error. This error might be an inefficiency in the organizational subsystem (such as a misunderstanding between departments) or in the organizations relationship with the external environment (such as failing to secure sufficient resources for production). Argyris calls the error detection and correction process single-loop learning when the error can be corrected through existing policies, procedures, and norms. In contrast, double-loop learning occurs when the error leads to a modification of the organizations underlying norms, policies, and procedures. Double loop learning involves not only responding to the error through existing procedures, but also experimenting with new organizational systems when it becomes apparent that the existing systems are ineffective. Single and double loop learning are useful concepts in the organizational learning literature because they point out how employees need to think beyond the existing organizational framework to solve problems. This is particularly important when the environment is changing rapidly and existing organizational systems are no longer appropriate. In a learning organization, employees quickly realize that the existing system does not adequately resolve a particular problem and that a new set of norms and policies must be introduced to help the organization realign itself with the changing environment. Sources: C. Argyris and D. A. Schon, Organizational Learning (Reading, MA: Addison-Wesley, 1978); M. Dodgson, Organizational Learning: A Review of Some Literature, Organization Studies , 14 (1993), pp.

375-94; P. M. Senge, The Fifth Discipline (New York: Doubleday Currency, 1990).

SUPPLEMENTAL LECTURE: ISSUES IN TELECOMMUTING

Telecommuting is becoming commonplace in some firms, but many organizations are still having difficulty adjusting to this new employment relationship. As we described in Chapter 1, telecommuting (also known as teleworking involves working from home, usually with a computer connection to the office. complete their required tasks. People with disabilities can participate in the labor force where their expertise involves knowledge work. This includes employees who are injured, yet want to return to work while convalescing. Women can return to work sooner, if they wish, without leaving home. Men also have more opportunity to fulfill household responsibilities without giving up paid employment. Reducing Corporate Costs. Telecommuting potentially saves companies money because they require less space to physically accommodate employees. Many firms (including some of Cisco Systems offices) shift to a nonterritorial office format whereby employees take whatever work space is available when they do commute to the corporate or branch office. (This is discussed in Chapter 8.) There are some costs the employer of telecommuting (e.g. providing computer equipment and network access), but these are offset by the physical space savings. Increasing Productivity. Research consistently has found that the productivity of those who telecommute is higher than that of workers in the standard office environment. Moreover, telecommuters have lower absenteeism. Also notice from Chapter 1 that employees tend to be available more often and at unusual hours when they telecommute.

Who Telecommutes?
Telecommuting is more common in some jobs than in others. Certainly, few auto assembly employees telecommute because the organization requires their physical labor on-site and the tolls of their trade cant fit in a suitcase or backpack. The most common jobs for telecommuting are writing, telemarketing, forms processing, and transcribing. Telecommuting is also relatively common among trainers, television and movie sound mixers, illustrators, loan executives, architects, attorneys, desktop publishers, marketing and public relations professionals, and project managers.

Why Telecommute?
The literature has identified several reasons why telecommuting has become more popular: Minimizing Traffic Congestion. Silicon Valleys famous traffic jams have motivated many employees and companies to try out telecommuting as an alternative. Addressing Environmental Concerns. California and other jurisdictions have established challenging goals to reduce air pollution. Individuals are also more conscious about how their actions affect the environment. By working from home or a satellite office rather than traveling a long distance to work, people are helping to improve air quality. Attracting Talent. In the opening story to this chapter, we learned that Cisco Systems is willing to let some job applicants remain at their previous residence -- even when on the other side of the country. This flexibility motivates talented people to join Cisco and other companies that practice telecommuting. Telecommuting is a desirable working condition to some (many?) people, so it becomes a way of attracting top talent. Accommodating Diversity. Telecommuting allows those with restricted access to the workplace to

Telecommuting Issues
In spite of its benefits, organizations and would-be telecommuters must think carefully about the following issues that arise with this employment relationship: Clarifying Expectations. Along with performance expectations, employees and their bosses must develop a common set of expectations regarding their availability. A supervisor might expect that the employee is at work during the same hours as colleagues at work, whereas the telecommuter might assume that its acceptable to take a couple of hours off to do shopping, then work in the evening. In other words, telecommuters need to know their degree of work time flexibility. Monitoring Work . Companies have difficulty moving away from face time as an indicator of work performance. They need to find new and better ways to monitor employee performance. Typically, telecommuting shift work monitoring from time-based

indicators (hours at work) to an output-based indicators (number of tasks completed). Minimizing Isolation. Although employees enjoy the freedom of telecommuting, many eventually realize that they lose touch with the workplace. Work fulfils a social need, not just the need for accomplishment and financial security. Moreover, face time is a political tactic that potentially influences the employees career opportunities and choice of assignments. Thus, many telecommuting arrangements include the requirement that employees attend the regular workplace a couple of days each week.

Sources: E. J. Hill, B. C. Miller, S. P. Weiner, J. Colihan, Influences of the Virtual Office on Aspects of Work and Work/Life Balance, Personnel Psychology , 51 (Autumn 1998), 667-683; M. M. Fitzer, Managing from Afar: Performance and Rewards in a Telecommuting Environment, Compensation and Benefits Review, 29 (JanuaryFebruary 1997), pp. 65-73; M. Hequet, How Telecommuting Transforms Work, Training 31 (November1994), pp. 57-61.

SUPPLEMENTAL LECTURE: KNOWLEDGE MAPPING

One of the most common laments in larger organizations is I wish we knew what we know. To rectify this problem, a few organizations engage in knowledge mapping -- identifying what knowledge the organization holds about a key product or service, and creating a directory so that this knowledge may be found quickly. For example, Unilever recently mapped everything it knew around the world about tomatoes: about sources of pulp for tomato sauce, about the pulp itself, the fruit and the seeds. The result was a knowledge map that helps Unilever employees quickly find corporate knowledge in this area. Hewlett-Packard has been a pioneer in knowledge mapping. The high technology company had to create road maps where coworkers can quickly identify what knowledge is needed and where it is located. Knowledge Mapping is a process that identifies knowledge, skills, collateral and tools needed to sell or deliver a solution, says Marilyn Martiny, Knowledge Services Manager at Hewlett-Packards consulting division. The map is used as a guide to what knowledge is important and where it can be found. A typical knowledge mapping process brings together experts within the organization, who identify what knowledge is needed, what gaps exist in current knowledge capabilities, and what skills are required for

a particular project or work activity. It creates a collective view of the knowledge and skills required to successfully perform each step in the work process. This framework is a valuable resource for knowledge sharing an utilization because it enables others to quickly identify and retrieve knowledge . Sources: N. Venkatraman and J. C. Henderson, Real Strategies for Virtual Organizing, Sloan Management Review, 40 (Fall 1998), pp. 33+; M. Martiny, Knowledge Management at HP Consulting, Organizational Dynamics , 27 (Autumn 1998), pp. 71+; R. M. Fulmer, P. Gibbs, and J. B. Keys, The Second Generation Learning Organizations: New Tools For Sustaining Competitive Advantage, Organizational Dynamics, 27 (Autumn 1998), pp. 6+; C. ODell and C. J. Grayson, If Only We Knew What We Know: Identification And Transfer Of Internal Best Practices, California Management Review, 40 (Spring 1998), pp. 154-174; T. Jackson, Harnessing The Power, Financial Post, June 18, 1998, p. 33. For discussion of knowledge mapping, see T. Davenport and L. Prusak, Working Knowledge: How Organizations Manage What They Know (Boston: Harvard Business School Press, 1998);

VIDEO SUGGESTIONS

Along with the video case(s) for this section of the tedxtbook, the following videos and films generally relate to one or more topics in this chapter. These programs may be available at your college/university or rented from the distributor. Please contact your film librarian to determine the availability of these programs at your institution. This list was compiled from library holdings of several universities. Due to the variety of video material, this is not a comprehensive list. Nor can we say that all of the programs below are suitable for your class.

NOTE: Instructors should look through the video suggestions section in other chapters to find videos relating to the emerging themes discussed in this opening chapter of the textbook. Creating the Learning Organization. (1997, 76 min., VHS) These three video programs (created by CASE Television for BBC) describe the organizationallearning techniques used by successful companies. They discuss how to implement change and develop a learning culture within a business and how to analyze an organization's learning style. The three programs are entitled: 1. Learning to survive v. 2. The learning experience v. 3. Making it happen. Soaring to Excellence, Learning to Let Employees Lead. (1994, 30 min., corVision Media). James A. Belasco & Ralph C. Stayer share the belief that the critical difference in today's companies rests in the "intellectual capital" found in the people who make-up the entire organization. This program is based on a book by the same name, written by Belasco and Stayer. Handy on the Future of Organizations. (1990, 18 min., VHS). This BBC production features Charles

Handy, an international writer on organizational behaviour, discusses the future of organizations, the changing nature of work and management and the need for adaptation. ISBN 0563208309 The Change Masters: Understanding The Theory . (1987, 22 mins, VHS) Dr. Rosabeth Moss Kanter identifies change masters as individuals and companies who anticipate change and respond with new ideas. She describes the seven ingredients that are essential to successful change masters and explains how to create the kind of environment that builds innovation and promotes acceptance to change. The Change Masters: Putting The Theory Into Action (1987, 42 mins., VHS) This program profiles three major companies: Hewlett-Packard, Security Pacific Bank, and the Stanley works. They have refocused their business strategies in order to compete more effectively in an ever-changing business environment. All three illustrate successful implementation of the change master concepts developed by Dr. Kanter in her book The Change Masters

NOTES