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Organizational

Behavior: The
Quest for People-
Centered
Organizations and
Ethical Conduct

Chapter 1
McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
2008The McGraw-Hill Companies, Inc. All rights reserved.
Ch. 1 Learning Objectives
1. Define the term organizational behavior and
contrast McGregor's Theory X and Y
assumptions about employees
2. Identify the four principles of total quality
management
3. Define the term e-business and specify OB-
related issues raised by e-leadership
4. Contrast human and social capital and explain
why we need to build both
5. Define management and identify managerial
skills of effective managers
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Ch. 1 Learning Objectives (cont)
6. Characterize 21st century managers
7. Describe Carrolls global corporate social
responsibility pyramid, and discuss the
problem of moral erosion.
8. Identify four of the seven general ethical
principles, and explain how to improve an
organizations ethical climate
9. Describe the sources of organizational
behavior research evidence

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Your Experience
Do you feel that you have worked in
a people-centered workplace?
A=Yes, B=No
If yes, what people-centered
characteristics did the workplace
have?
If no, what were the workplace
characteristics that did not make it
people-centered? 1-4
What is Organizational Behavior?
An interdisciplinary field
dedicated to better
understanding and
managing people at work
Why study OB?
To interact more
effectively with others
in organizations
Im a finance major, why
do I need to know this?
People skills
complement technical
skills
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History of Organizational Behavior
Human Relations Movement
The Quality Movement
E-Business Revolution
Human and Social Capital

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Human Relations Movement
Inspired by legalization of union-
management collective bargaining in
the US (1935)
Hawthorne Studies
Supportive management
Mayo and Follett
Pull dont push

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Test Your Knowledge
What percentage of the American
workforce do NOT utilize their full
capabilities on the job?
A. 10%
B. 35%
C. 50%
D. 75%

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McGregors Theory X & Theory Y
Theory X Theory Y
Work is a natural activity
Most people dislike
People can be self-
work and want to directed if they are
avoid it committed to the
People require objective
Rewards help
close direction
commitment
People want to Most employees accept
avoid responsibility and seek responsibility
and have little Employees have
ambition imagination, ingenuity
and creativity
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The Quality Movement
Total Quality Management (TQM)
An organizational culture dedicated to training,
continuous improvement, and customer satisfaction
Employee-driven, customer-focused
Basic Principles
Do it right the first time to eliminate costly rework
Listen to and learn from customers and employees
Make continuous improvement an everyday matter
Build teamwork, trust, and mutual respect

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E-Business Revolution
E-Business running the entire business
via the internet
Implications for organizational behavior
and leaders?
More and faster communication with others
More potential for damage by unethical
leaders
Enables the existence of networks that go
across traditional organizational
boundaries
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Human and Social Capital
Human Capital the Social Capital
productive potential of productive potential
an individuals resulting from strong
knowledge and actions relationships, goodwill,
trust, and cooperative
effort

Mitre, McLean, VA
Cisco Systems, San Jose,
Pays university
CA
professors to conduct
a Masters in Systems Sponsors Nerd lunches
Engineering program to discuss latest topics
for employees in technology
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Management
Process of working with and through
others to achieve organizational
objectives efficiently and ethically

What skills are exhibited by an effective


manager?

21st Century managers have to play


chess, not checkers
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Test Your Knowledge
True (A) or False (B)?
1. Effective managers tend to have high
skills mastery.
2. Derailed managers underestimate their
skills mastery.
3. Effective female and male managers
have significantly different skill sets.

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Evolution of 21st-Century Managers
Primary Role Past Managers Future
Managers
Cultural Monocultural, Multicultural,
Orientation monolingual multi-lingual
Source of Formal authority Technical
influence knowledge and
interpersonal skill
View of people Potential problem Primary resource;
human capital
Decision-making Limited input for Broad-based input
style individual for joint decisions
decisions
Ethical Afterthought Forethought 1-15
The Ethics Challenge
In the Post Enron, post-bubble world,
theres a yearning for corporate values
that reach higher than the size of the
CEOs paycheck or even the latest
stock price. Trust, integrity and
fairness do matter, and they are crucial
to the bottom line.

Source: Excerpt from J A Byrne, After Enron: The Ideal Corporation, Business Week, August 26, 2002, p. 68

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For Discussion: Your Opinion
Which statement best
represents your opinion?
A.Companies primary goal
should be to maximize profits
B.Companies have an obligation
to the societies in which they
operate, even if profits suffer
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Corporate Social Responsibility
Pyramid

Source: Carroll, A. B. Managing Ethically with Global Stakeholders: A present and future challenge,
Academy of Management Executive, May 2004, p. 116.
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Ethical Lapses in the Workplace
Ethical Lapse % Reported in Recent Studies
1. Occasional observed A. 23%
unethical behavior
2. Job applicants mis- B. 44%
informed about financial C. 62%
condition of company
3. Applicants who lied about D. 64%
their work histories E. 41%
4. Applicants who lied about
their education
5. Applicants who lied about
their credentials/licenses

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General Moral Principles
Dignity of human
life
Autonomy
Honesty
Loyalty
Fairness
Humaneness
The common good

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Improving On-the-Job Ethics
Behave ethically
yourself
Screen potential
employees
Develop a Meaningful
Code of Ethics
What constitutes a
meaningful code of
ethics?
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Improving On-the-Job Ethics
Provide ethics training
Reinforce ethical
behavior
Create positions,
units, and other
structural
mechanisms to deal
with ethics
Eliminate need for
whistle-blowing
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Roadmap for This Course

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How do we learn about OB?
Three Approaches:
Theory ideas about what happens and
why
Research testing theoretical ideas
Practice learning from what has and
has not worked
Contingency Approach
All three provide valuable information for
understanding and managing
organizational behavior 1-24
Five Sources of OB Research Insights
Laboratory study
Manipulation and measurement of variables in
contrived situations
Field study
Examination of variables in real-life settings
Sample survey
Questionnaire responses from a sample of people
Case Studies
In-depth analysis of single individual, group, or
organization
Meta-analysis
Pools the results of many studies through statistical
procedure
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Test Your Knowledge
Information from which of the following
is LEAST likely to be generalizable to
other settings.
A. Meta-analysis
B. Sample surveys
C. Case-study

Why?

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