Complete Instructor Manual Bauer Erdogan Organizational Behavior 2.0

Organizational Behavior 2.0 – Bauer and Erdogan 1 Instructor Manual

Instructor’s Manual

Organizational Behavior 2.0 Talya N. Bauer and Berrin Erdogan To love what you do and feel that it matters—how could anything be more fun? Katherine Graham

This quote sums up how we feel about teaching. What could be better than teaching? It is fun, at times exciting, and it really matters. And one of the best courses in the world to teach is Organizational Behavior. Together we have been teaching for over 40 years and have taught thousands of students at the undergraduate, masters, and doctoral levels. Our teaching styles are different but we share some common values when it comes to teaching, such as the beliefs that       

organizational behavior matters evidence-based research is the foundation of organizational behavior different students learn in different ways there is no substitute for hands-on learning learning the language of OB helps you be more effective in the workplace technology can greatly enhance learning flexibility in teaching delivery allows for student success

About your author team Both authors are award-winning teachers who couple deep knowledge and experience with the research-based conceptual underpinnings of this book with a sincere appreciation for experiential teaching approaches. Talya graduated from Purdue University and teaches organizational behavior, management, power and influence, negotiations, as well as training and development. She is the past Editor of the Journal of Management and is currently the Associate Editor for the Journal of Applied Psychology and also is on the editorial review boards of Personnel Psychology, Journal of Management, and SIOP’s journal, Industrial and Organizational Psychology. Her consulting experience includes work with government, Fortune 1000 companies (such as Google and Hewlett-Packard), global, and start-up organizations. Her research focuses on relationships at work from early on in the selection and onboarding stages to retention. Berrin graduated from the University of Illinois, Chicago and teaches organizational behavior, management, and human resource management, as well as international human resource management, and studies the attachment of individuals to organizations through understanding fairness, leader/subordinate relations, contextual factors such as organizational culture, and person/organization fit. She is currently the Associate Editor for the Personnel Psychology and serves on the editorial review boards for the Journal of Applied Psychology and Journal of Management. Her work has been published in journals such as Academy of Management Journal, Journal of Applied Psychology, Journal of Management, and Personnel Psychology. She conducts managerial seminars

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Organizational Behavior 2.0 – Bauer and Erdogan 2 Instructor Manual throughout the world on the topics of motivation, organizational justice, performance appraisals, training, and development and worked as a corporate trainer. Not “just another” textbook When we decided to write a textbook, we knew we didn’t want to write just another OB book. Enter Flat World Knowledge. Their model solves many of the common challenges faculty and students face when it comes to textbooks. Here are a few that have always bothered us and that Flat World has solved: 

I had to buy the whole book but my teacher didn’t use the XYZ chapter. This isn’t a problem with our book because faculty can rearrange chapters as well as add and delete them.

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Textbooks are too expensive! Textbooks have traditionally been very expensive and the business model of traditional publishing firms has been a huge part of those costs. With our book, students get to choose how to read the material, ranging from free online viewing, inexpensive black and white or color books, audio chapters, to printable PDFs.

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I can’t read the chapter because the bookstore is out of books or I can’t read the chapters because I ordered the book from XYZ.com and it hasn’t arrived. With our book everyone can view the book immediately online while they wait a few days for the book to arrive.

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New editions come out too quickly and don’t really change. The reason that new editions come out is because used books don’t make money for the publishers but new ones do. With our book you can change editions when you want and when you think enough is different to warrant the change.

Our journey in creating this book has been a long one. After we wrote the first draft of this book, each chapter went through multiple reviews and revisions as well as beta tests with real students before this textbook made its way to you. A truly virtual team of authors, copy editors, managing editors, graphic designers, technology gurus, and publishing experts worked together to create something that has never been done before. Pedagogy Our book emphasizes active learning, meaningful examples, and tools you can use today or put in your OB Toolbox for the years to come. How do we do this?  we wrote opening and closing cases that bring the topics to life  we include learning objectives, key takeaways, and discussion questions for every section of each chapter  we create OB Toolboxes with information you can use today  we wrote a section on cross-cultural implications for every chapter  we also wrote a section on ethical implications for every chapter

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 3 Instructor Manual  

we include original ethical dilemmas, individual exercises, and group exercises for every chapter for faculty we have comprehensive PowerPoint slides, a rich test bank, and an extensive author-written instructor’s manual to enrich your teaching.

This instructor’s manual is an important support package, and for each chapter we include  discussion questions for the opening and closing chapter cases  answers to the discussion questions throughout the book  end of the chapter materials -ethical dilemmas -individual exercises -group exercises  solutions to the end of the chapter materials  bonus material such as suggested TED Talks and Idea Podcasts for each chapter  further reading suggestions. So, welcome to the textbook revolution. We are happy to have you on the Bauer and Erdogan’s Organizational Behavior 2.0 team! Given that organizational behavior is an important business course; our objective in developing this material was to provide students and instructors with a solid and comprehensive foundation on organizational behavior that is accessible and fun. Each of the fifteen chapters is comprehensive but succinct, and action-oriented whether you are just starting out in the world of work or you are an experienced manager. Moreover, the book and supplements have been written in a direct and active style such that we hope students and instructors find them all readily accessible and relevant. Thank you for joining the revolution In adopting Bauer and Erdogan, you are quietly joining the revolution that is otherwise known as Flat World Knowledge, our partner and publisher. For this we thank you. The people at Flat World Knowledge and your author team share a common vision about the future of management education that is based on powerful but fun and simple-to-use teaching and learning tools. Moreover, Flat World Knowledge gives you the power to choose. Our fifteen chapters are written using a modular format with self-contained sections that can be reorganized, deleted, added to, and even edited at the sentence level. Using our build-a-book platform, you can easily customize your book to suit your needs and those of your students. Only with Flat World Knowledge learning platforms do you have the power to choose what your organizational behavior book looks like, when and how you access your organizational behavior material, what you use and don’t use, when it will be changed, how much you pay for it, and what other study vehicles you leverage. These innovative study vehicles range from book podcasts, PPTs, practice tests, and flash cards. Nowhere on the planet can this combination of user-friendliness, user choice, and leading edge

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Organizational Behavior 2.0 – Bauer and Erdogan 4 Instructor Manual technologies be found for business education and learning. And, better yet, everyone on the planet has free access to it online at a reasonable price! We hope you find this Instructor’s Manual useful in your teaching.

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 5 Instructor Manual

Cases Organizational Behavior 2.0 Cases are a fantastic way to bring Organizational Behavior to life for students. Those with limited work experience can learn a great deal from these examples and those with much work experience can compare and contrast their own experiences with these. The next two pages include a summary of the entire opening and closing cases from this book. While we designed them to go with specific chapters, their content makes sense for other topics as well. The grid helps to identify those other topics. Each case comes with discussion questions for students to ponder. Throughout this instructor manual we provide guidance for those discussions. Finally, we have created a compilation of all the case we have written for this version and previous versions of the textbook. These can be found in our casebook which is posted on the Flat World Knowledge website for supplemental materials to go along with Organizational Behavior 2.0. We hope you enjoy these cases and that they are useful in your teaching! -Talya Bauer and Berrin Erdogan

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Ch. 3. Understanding People at Work: Individual Differences and Perceptions Ch. 4 Individual Attitudes and Behavior

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Ch. 11 Making Decisions

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Ch. 15 Organizational Culture

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IdeaCasts and Organizational Behavior To listen to one of the IdeaCasts, simply click on the link below or go to http://itunes.apple.com/us/podcast/hbr-ideacast/id152022135

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Chapter Title

Corresponding Harvard Business IdeaCasts

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Organizational Behavior

IdeaCast 9: New Insights into the Enron Scandal IdeaCast 31: What is Wikinomics? IdeaCast 46: Unleash Your Hidden Assets IdeaCast 62: Customize Your Career IdeaCast 110: How to Protect Your Job in a Recession IdeaCast 111: Sustainability—The Only Strategy IdeaCast 116: A Financial Crisis Fifty Years in the Making IdeaCast 117: Competing in the New Global Landscape IdeaCast 414: To Do Things Better, Stop Doing So Much IdeaCast 427: Does Your Sales Team Know Your Strategy? IdeaCast 440: What Makes Teams Smart (or Dumb) IdeaCast 453: Set Habits You'll Actually Keep IdeaCast 457: Case Study: Reinvent This Retailer

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Organizational Behavior 2.0 – Bauer and Erdogan 4 Instructor Manual 2

Managing Demographic and Cultural Diversity

IdeaCast 117: Competing in a New Global Landscape IdeaCast 425: Fixing the College Grad Hiring Process IdeaCast 444: What Still Stifles Ambitious Women

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Understanding People at Work: Individual Differences and Perception

IdeaCast 79: Managing Generation Y IdeaCast 95: Gen Xers are Unhappy at Work IdeaCast 437: Learning What Wiser Workers Know IdeaCast 460: Understand How People See You IdeaCast 463: Why We Pretend to Be Workaholics IdeaCast 474: Test-Taking Comes to the Office

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Individual Attitudes and Behaviors at Work

IdeaCast 10: Opening Up Innovation and Dealing with Underperformers IdeaCast 96: Why Zappos Pays Employees to Quit IdeaCast 416: The Dangers of Confidence IdeaCast 456: Your Brain's Ideal Schedule

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Theories of Motivation

IdeaCast 75: Managing B Performers IdeaCast 461: Brian Grazer on the Power of Curiosity

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Designing a Motivating Work Environment

IdeaCast 99: Retaining Employees When Money is Tight IdeaCast 433: How to Change Someone's Behavior with Minimal Effort

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Managing Stress and Emotions

IdeaCast 101: Are You Spending Your Time the Right Way? IdeaCast 106: The Importance of Urgency IdeaCast 451: Be Less Reactive and More Proactive

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Communication

IdeaCast 114: Speaking Well in Tough Moments IdeaCast  421: Privacy’s Shrinking Future

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Organizational Behavior 2.0 – Bauer and Erdogan 5 Instructor Manual IdeaCast 439: Communicate Better with Your Global Team IdeaCast 464: Consumer Privacy in the Digital Age IdeaCast 470: Beating Digital Overload with Digital Tools   9

Managing Groups and Teams

IdeaCast 54: Teams that Lead, Innovate, and Succeed IdeaCast 417: The Art of Managing Science IdeaCast 426: How Google Manages Talent IdeaCast 450: Marissa Mayer's Yahoo IdeaCast 471: The Condensed July-August 2015 Issue IdeaCast 473: Can HR Be Saved? IdeaCast 419: Prevent Employees from Leaking Data

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Conflict and Negotiations

IdeaCast 8: Leading through Conflict IdeaCast 15: 3-D Negotiation and Using DICE IdeaCast 70: The Point of the Deal IdeaCast 71: How to Manage Conflict IdeaCast 90: Negotiation Strategies for a Downturn IdeaCast 443: How to Negotiate Better IdeaCast 468: George Mitchell on Effective Negotiation IdeaCast 472: Michael Lynton on Surviving the Biggest Corporate Hack in History

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Organizational Decision Making

IdeaCast 6: Make Better Decisions and Retain Your Best People IdeaCast 63: Making Judgment Calls IdeaCast 109: Pixar and Collective Creativity

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 6 Instructor Manual IdeaCast 436: Making Good Decisions 12

Leading People and Organizations

IdeaCast 43: Authentic Leadership IdeaCast 61: How Women Became Leaders IdeaCast 67: The Leaders We Need IdeaCast 93: Where Will We Find Tomorrow’s Leaders? IdeaCast 102: What Kind of Leader Will You Be? IdeaCast 449: Why Leadership Feels Awkward IdeaCast 452: Goldie Hawn on Female Leadership

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Understanding Power and Politics

IdeaCast 30: Paths to Power IdeaCast 47: The New Rules of Power IdeaCast 82: The Power of Unreasonable People IdeaCast 438: Explaining Silicon Valley's Success IdeaCast 447: GoDaddy's CEO on Leading Change IdeaCast 466: Making Sense of Digital Disruption

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Organizational Structure and Change

IdeaCast 83: Learning Organizations IdeaCast 445: Innovation Needs a System IdeaCast 465: The Condensed June 2015 Issue IdeaCast 467: Evernote's CEO on the New Ways We Work IdeaCast 469: Are Robots Really Coming for Our Jobs?

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Organizational Culture

IdeaCast 35: What It Means to Work Here

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 7 Instructor Manual IdeaCast 80: Grooming Top Performers IdeaCast 96: Why Zappos Pays Employees to Quit IdeaCast 415: The Future of Talent Is Potential IdeaCast 420: How to Stop Corporate Inversions IdeaCast 431: Myths About Entrepreneurship IdeaCast 462: Ethical CEOs Finish First

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 8 Instructor Manual

Table of Contents Navigation Tip: Place your pointer on the page number for any chapter below to be taken directly to the teaching material for that chapter.

Instructor’s Manual..............................................................................................................1 Organizational Behavior 2.0...............................................................................................1 Chapter 1..............................................................................................................................7 Organizational Behavior......................................................................................................7 Chapter 2............................................................................................................................17 Managing Demographic and Cultural Diversity................................................................17 Chapter 3............................................................................................................................28 Understanding People at Work:.........................................................................................28 Individual Differences and Perception..............................................................................28 Chapter 4............................................................................................................................42 Individual Attitudes...........................................................................................................42 and Behaviors....................................................................................................................42 Chapter 5............................................................................................................................57 Theories of Motivation......................................................................................................57 Chapter 6............................................................................................................................67 Designing a Motivating Work Environment.....................................................................67 Chapter 7............................................................................................................................81 Managing Stress and Emotions.........................................................................................81 Chapter 8............................................................................................................................92 Communication..................................................................................................................92 Chapter 9..........................................................................................................................104 Managing Groups and Teams..........................................................................................104 Chapter 10........................................................................................................................115 Conflict and Negotiations................................................................................................115 Chapter 11........................................................................................................................126 Making Decisions............................................................................................................126 Chapter 12........................................................................................................................140 Leading People Within Organizations.............................................................................140 Chapter 13........................................................................................................................152 Power and Politics...........................................................................................................152 Chapter 14........................................................................................................................172 Organizational Structure and Change..............................................................................172 Chapter 15........................................................................................................................184 Organizational Culture.....................................................................................................184

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Organizational Behavior 2.0 – Bauer and Erdogan 9 Instructor Manual

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 1 Instructor Manual

Chapter 1

Organizational Behavior OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. Think about the three eras described above. How would you describe each of the eras? Please be prepared to support your answer with examples of each. 2. Think of examples in your own life of when a firm has delivered excellent customer service. Are there examples in which you’d be moved to write a positive customer service letter?  What do you think are the main reasons why Les Schwab Tire Centers, Inc., are so successful at garnering such positive customer feedback? 3. Do you think Les Schwab Tire Centers, Inc., has a competitive advantage because of their corporate history? Why or why not? 4. Do you think Les Schwab Tire Centers, Inc., will continue to be as successful as it has been if it falls on hard economic times? Why or why not? 5. Which costs to do you think are associated with maintaining a strong organizational culture, such as that of Les Schwab Tire Centers, Inc.? What are the potential benefits?

I. Discussion Questions A. UNDERSTANDING ORGANIZATIONAL BEHAVIOR 1.

Which type of organizations did you have the most experience with? How did that affect your understanding of the issues in this chapter? Students will most likely have had experience with organizations in education (school and classroom environment) working with their peers, as well as in introductory employment positions working for a manager. These experiences shape how students understand the importance of communication, leadership and team dynamics, which constitute organizational behavior 2. Which skills do you think are the most important ones for being an effective employee? Student answers will vary here. Some will say that putting their head down and working hard while paying attention to detail is the most important part of being an effective employee. Others may argue that having good communication skills with their employer, coworkers, and customers is more valuable. 3. What are the three key levels of analysis for OB?

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 2 Instructor Manual These are individual, group, and organization. Topics such as personality, individual motivation, stress, and emotions are individual level topics. Team dynamics, communication, and leadership are examples of group level variables. Organizational culture and structure are regarded as organization level variables. 4. Have you ever used journaling before? If so, were your experiences positive? Do you think you will use journaling as a tool in the future? Journaling is a very effective method of keeping track of experiences in any OB situation. It allows for analyzing what methods of behavior prove efficient, and what methods could be improved or removed from one’s daily routine. 5. How do you plan on using the OB Toolboxes in this book? Creating a plan now can help to make you more effective throughout the term. The OB Toolbox features throughout this book will give students suggestions as to how to apply the material covered to their daily professional and personal lives.

B. UNDERSTANDING LEARNING AND YOUR LEARNING STYLE 1.

Were you surprised by your primary learning style? Why or why not? Student answers are likely to vary for this question. If they were surprised by their primary style, you may want to remind them that for some individuals, their learning style may be a blend of different styles with none of them clearly dominating. For those who have a clearly dominant style, the effects of the learning style on their actions and their ability to learn in different environments will be stronger. 2. How does your learning style affect the kinds of classes you take? Visual learners may take classes where reading is a heavy component of the class. They also benefit from seeing diagrams and flow charts to see how materials relate to each other. Lecture format classes may work well for them. Auditory learners may also do well in lectures, but for them supplementing lectures with rich discussions and videos is more essential. Kinesthetic learners are more attracted to classes where they solve problems or practice the skills actively. 3. Try out a few of the suggestions for your learning style over the next week and see how they work. Students may benefit from diagnosing their own style and then following the recommendations in the book. Specifically, If you are a visual learner  draw pictures and diagrams to help you understand  take careful notes during class so you can refer back to them later on  summarize the main points of what you learn using charts If you are an auditory learner  join study groups so you can discuss your questions and ideas and hear responses

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 3 Instructor Manual  

write down any oral instructions you hear in class right away consider taping lectures if your professor says it is okay and view online lectures on topics you are interested in

If you are a kinesthetic learner  schedule your homework and study sessions so you can take breaks and move around between reading your notes or chapters  take good notes during class—this will force you to pay attention and process information even when you feel like you are getting it  don’t sign up for long once-a-week classes—they normally require too much sitting and listening time 4. Now that you’ve learned more about your own learning style, are there some things you might consider doing to expand on your other styles? If so, what steps might you take to do this? Answers will vary, different students will learn in different ways, therefore will have different areas to improve on. Students will, quite consistently, utilize tactics including repetition as well as putting themselves in scenarios they may not be used to in order to learn and establish new and improved habits within their personal learning style.

C. UNDERSTANDING HOW OB RESEARCH IS DONE 1. Create a hypothesis about people at work. Now that you have one in mind, which method do you think would be most effective in helping you test your hypothesis? Here is an example of a possible answer: Hypothesis: Employees who have a good relationship with their managers are likely to stay longer at a company. A hypothesis like this could be tested using a survey. You might survey all newcomers to an organization at a specific time after they start their new jobs (such as after three or six months). The questions newcomers answer would be about the quality of their relationship with the manager. Then, three years from the start, you may look to see how long each employee stayed at that company. There may still be people who are employed by the same organization, but three years would give the researcher time for several employees to quit their jobs. The researcher would also control for alternative explanations. For example, it is possible that employees left not because of their poor relations with the managers, but because of relations with peers, or low performance. Statistically examining the relationship between newcomer/manager relationship and turnover would be one way of supporting or rejecting this hypothesis. Of course, any single study will have its limitations. Therefore, multiple studies in different industries and using different research designs would strengthen the conclusions. 2. Have you used any of the OB research methods before? If not, what can you do to become more familiar with them? © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 4 Instructor Manual Some students may be familiar with the survey method or case studies. These methods may be used as part of an OB class or other classes they may be taking, such as marketing or management. Students who assist actively researching faculty may gain valuable experience with a wide variety of techniques. Reading published journal articles in sources such as Journal of Applied Psychology, Personnel Psychology, or Academy of Management Journal may introduce students to the different research methods being used in OB. Although it is difficult to generalize about organizational situations, case studies are a valuable resource for students interested in learning more about organizational behavior. Encourage students to seek out case study articles, or to even begin researching and creating their own case studies about their experience within different organizations, or based on research they have done. 3. Give an example of a reliable measure. Asking someone how many years of work experience he or she has is likely a reliable measure, because even if you ask the question to the same person several times during the same day, you should get the same answer. The answer does not depend on the person’s mood, or how you ask the question. In contrast, a question such as “describe your work ethic” is likely lower in reliability because every time the question is asked, the interviewee may answer in a slightly different manner. 4. Give an example of a valid measure. Let’s say you are trying to measure someone’s physical endurance. Asking the person to run a certain distance within a certain time, or do push-ups and sit-ups are likely to be valid measures because they capture the intended variable of physical endurance. In contrast, asking the person whether they are physically fit may not really be a valid measure for physical endurance because people may overestimate or underestimate their fitness and endurance levels. 5. How can you know if a relationship is causal or correlational? Causality is detected in laboratory studies and in experimental designs. Let’s say you are examining whether participative teaching is positively related to student learning outcomes. In a correlational design, you would capture whether the teacher is participative, and the level of student learning. If there were a correlation between the two, the hypothesis would be supported. Yet, how do you know that participative teaching is actually causing student learning? Maybe students who are already engaged are leading to more participation on the part of the teacher, so the student’s engagement may be causing both teacher participativeness and student learning. Instead, in an experimental design you would manipulate the teacher’s style, while employing a control group. The same teacher would be told to act participatively in one class and behave less participatively in a different class. This way, we would know that teacher participativeness is not naturally occurring. The use of a control group would also help eliminate alternative explanations.

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D. TRENDS AND CHANGES 1. Share an ethical dilemma you have observed at work or school to someone in your class. What do you think should have been done differently and why? Example: A coworker of mine just got a second job that she enjoys significantly more than her first job. Because of this, her work ethic at this job has decreased significantly, putting a burden on the other employees to pick up the slack. A better approach would be for her to either remain a diligent employee or to turn in her two weeks and allow a new eager employee to take her place. 2. How has technology and the flattening world affected you in the last ten years? Please share examples of this. As an instructor, you may want to share your own experiences, which may differ slightly from the students’ experiences. In the workforce, generations who grew up with email, instant messaging and blogs are working side by side with generations who got acquainted with the Internet in their thirties or later. You may steer the conversation toward how differences in familiarity with technology is affecting productivity and workplace relationships. It might be beneficial to examine the different strengths and weaknesses that are brought to the workplace by those individuals who are less familiar with the latest advances in technology, and what benefits these individuals can add to an organization. 3. Do you think the sustainability movement in business is a trend that’s here to stay or a business fad? Why? The sustainability movement in business is likely here to stay. This is because many elements of the sustainability movement are becoming incorporated into people’s daily living. Consumers are becoming more aware of the dangers of nonorganic produce or the dangers of hazardous materials in consumer products. As businesses offer organic produce at affordable (not outrageous) prices, consumers are finding that it is possible to feed their family with organic food without bankrupting the household budget. Similarly, while many people in the United States would resist giving up their car, now that we have more alternatives such as hybrid cars or cars that run on alternative fuels, consumers are able to make greener choices. As businesses profit or base their business model on sustainable business practices, they find that they can make healthy profits this way. At the same time, the amount of talk we see about sustainability may have already peaked. When a trend is new, you are more likely to see BusinessWeek or Wall Street Journal articles discussing the pros and cons of these movements. As the movement is absorbed into the culture and into the behaviors of everyday employees and consumers, we are less likely to see sustainability as being promoted as a new and novel form of doing business (it will likely become an everyday occurrence).

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 6 Instructor Manual 4. Do you see the aging (and retiring) workforce as an opportunity or a threat for businesses? How do you think this will affect your career based on your own generation? The threat of aging is the potential to lose employees who are highly productive and possess key knowledge about a company’s history and its operations. As employees retire, their specialized knowledge may be lost to the company. Moreover, companies may find themselves unprepared. A healthy approach is to have succession planning in place when faced with this challenge so that future candidates for these positions are prepared and nurtured in advance. Many company managers are uncomfortable discussing or planning for their own retirement or succession. Companies such as Starbucks actively make leadership development part of its core business practice; as a result the transition of top managers is transparent and integrated into the organization’s culture. It can be beneficial for students to reflect on this type of business culture and discuss the pros and cons of such a culture. At the same time, there is a growing trend for employees to consider working as part of their retirement or to postpone their retirement. As long as their needs are met, these employees are likely to remain in the organization, and be loyal and productive members of the workforce. Therefore, understanding the unique needs of all age groups and being an employer of choice for different generations may be a strategy that pays off.

E. MOTIVATION KEY FOR SUCCESS: THE CASE OF XEROX 1. How do you think Xerox was able to motivate its employees through the crisis it faced in 2000? Xerox was able to motivate its employees through demonstrating that hard work pays off. CEO Mulcahy started out as an employee and slowly moved up the ladder until become CEO about 20 years later. She knew there were powerful but unmotivated employees before she took over, and knew that not only a new business model but also motivated employees would save the company. 2. How does a CEO with such a large number of employees communicate priorities to a worldwide workforce? The CEO is able to relate with each employee and their individual perspective instead of intentionally intimidating them. Because Mulcahy has worked at Xerox for so long, she has been able to develop close relationships with many of the employees. 3. How might Ursula Burns encourage employees to take calculated risks? While she respects that Mulcahy created a strong and successful business, she also “encouraged individuals to speak their mind, to not worry about hurting one another’s feelings, and to be more critical.” This allows employees to voice their opinions, and feel more comfortable taking risks. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 7 Instructor Manual 4. Both Anne Mulcahy and Ursula Burns were lifetime employees of Xerox. How does an organization attract and keep individuals for such a long period of time? Good organizations provide employees with incentives. This can appear in the form of pay raises, health benefits, as well as the businesses’ ability to demonstrate to their employees and the work they do is valuable and important to the success of the company.

II. End of Chapter Materials A. INDIVIDUAL EXERCISE Create an Action Plan for Developing Your OB Skills 1. Hopefully you have already completed reading this chapter. If not, wait until you’ve done so to complete this individual exercise. 2. If you have not done so already, please take the learning styles survey at http://www.educationplanner.org/students/self-assessments/learningstyles.shtml. 3. In addition, please be sure you have reviewed the table of contents for this organizational behavior textbook. 4. What themes do you see? How do you think these topics affect your interactions with others? How might your learning style affect how you’ll approach this course? Have you ever considered journaling as a technique for self-improvement and reflection? 5. Now, write down five action steps that you plan to take as you work through this book. Refer to these steps throughout the term and modify them as needed.

B. GROUP EXERCISE Best Job/Worst Job created by Talya Bauer 1. Think about the best and worst jobs you have ever had. If you have never had a job, think of a school project instead. What made the job or project great or horrible? 2. Now get into a small group of students and share your experience with them. Listen to what others are saying and see if you see any themes emerge. For example, what are the most common features of the best jobs? What are the most common features of the worst jobs?

III. Exercise Solutions and End of the Chapter Materials A. INDIVIDUAL EXERCISE Create an Action Plan for Developing Your OB Skills

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Organizational Behavior 2.0 – Bauer and Erdogan 8 Instructor Manual 1. Hopefully you have already completed reading this chapter. If not, wait until you’ve done so to complete this individual exercise. 2. If you have not done so already, please take the learning styles survey at http://www.educationplanner.org/students/self-assessments/learningstyles.shtml. 3. In addition, please be sure you have reviewed the table of contents for this organizational behavior textbook. 4. What themes do you see? How do you think these topics affect your interactions with others? How might your learning style affect how you’ll approach this course? Have you ever considered journaling as a technique for self-improvement and reflection? 5. Now, write down five action steps that you plan to take as you work through this book. Refer to these steps throughout the term and modify them as needed. Example answer: 1. Set multiple small goals throughout the semester to create individual motivation in even the smallest tasks. 2. Work on managing stress level, find things that will help during stressful situations. 3. Practice leadership by initiating conversations with colleagues/ peers and organize group activities 4. Ask questions that will help develop OB skills 5. Take the general concepts and apply them to specific instances in daily activities

B. GROUP EXERCISE Best Job/Worst Job There are many factors that can make a job good or bad. These factors can vary by individual. For example, one person might find a job enjoyable because it is easy, while another finds the easy job boring and lacking stimulation. Additional factors might include other people, the environment, the task itself, associated deadlines, work hours, role ambiguity, role conflict, pay, or opportunities available.

IV. Relevant TED Talks for bringing course concepts to life A. Listen, learn... then lead by Stanley McChrystal https://www.ted.com/talks/stanley_mcchrystal Synopsis: After spending many years in the military, Stanley speaks of learning many lessons in leadership. He explains how someone can build a sense of purpose within a variety of people through listening and learning. B. Title: How to run a company with (almost) no rules by Ricardo Semler © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 9 Instructor Manual https://www.ted.com/talks/ricardo_semler_radical_wisdom_for_a_company_a _school_a_life Synopsis: “Semler practices a radical form of corporate democracy, rethinking everything from board meetings to how workers report their vacation days (they don’t have to). It’s a vision that rewards the wisdom of workers, promotes work-life balance — and leads to some deep insight on what work, and life, is really all about.” Additional Readings Kenneth H. Blanchard and Norman Vincent Peale (1988). The power of ethical management. NY: William Morrow and Company, Inc. Laszlo Bock (2015). Work rules! Insights from Google that will transform your life. New York: Twelve Publishing. Stephen R. Covey (2004). The 7 habits of highly effective people. Free Press. Don A. Dillman, Jolene D. Smyth, and Leah Melani Christian (2008). Internet, mail, and mixed-mode surveys: The tailored design method. Hoboken, NJ: John Wiley and Sons. Peter Ferdinand Drucker (2006). Innovation and entrepreneurship. Collins Business. Thomas L. Friedman (2008). Hot, flat, and crowded. NY: Farrar, Straus and Giroux. Marshall Goldsmith (2007). What got you here won’t get you there. NY: Hyperion. Neil Howe and William Strauss (1992). Generations: The history of America’s future. NY: William Morrow and Company, Inc. Jeffrey Pfeffer and Robert I. Sutton (2006). Hard facts, dangerous half-truths and total nonsense: Profiting from evidence-based management. Boston, MA: Harvard Business School Press.

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Organizational Behavior 2.0 – Bauer and Erdogan 10 Instructor Manual

Chapter 2

Managing Demographic and Cultural Diversity OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. IBM has been championed for its early implementation of equality among its workforce. At the time, many of these policies seemed radical. To IBM’s credit, the movement toward equality worked out exceptionally well for them. Have you experienced policy changes that might seem radical? Have these policies worked out? What policies do you feel are still lacking in the workforce? 2. If you or your spouse were currently employed, how difficult would it be to take time off for having a child? 3. Some individuals feel that so much focus is put on making the workplace better for underrepresented groups that the majority of the workforce becomes neglected. Do you feel this was the case at IBM? Why or why not? How can a company ensure that no employee is neglected, regardless of demographic group? 4. What types of competitive advantages could IBM have gained from having such a diverse workforce?

I. Discussion Questions A. DEMOGRAPHIC DIVERSITY 1. What does it mean for a company to manage diversity effectively? How would you know if a company were doing a good job managing diversity? A number of indicators would hint that the company is doing an effective job with diversity management. Here are some examples:  Diversity among employees (this will be evaluated compared to the diversity of the labor pool). For example, if only three percent of the employees in a company are African American, does this mean that the company is not diverse? This would depend on the diversity of the area population. The situation would be more suspect and there would be more reason for concern if the area population were ten percent African American as opposed to two percent African American.  Diversity at all levels. This means we would expect diversity not at the lower levels, but all the way up to the top management team.  Do most employees feel satisfied and perceive fairness? This means that regardless of their demographic traits, employees feel that they are fairly treated and believe that there is a positive work environment.  Do they follow the law? If they have been sued or received a large number of complaints, this may be the first hint that they may not be doing a good job managing diversity effectively. © Bauer & Erdogan 2016, published by Flat World Knowledge 

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2. What are the benefits of effective diversity management? When companies have a diverse workforce and do a good job managing diversity effectively, some benefits that they experience are  higher creativity in decision making  better customer service  higher job satisfaction and lower employee turnover as a result  higher stock prices  lower litigation expenses  higher company performance 3. How can organizations deal with the “similarity/attraction” phenomenon? Left unchecked, what are the problems this tendency can cause? Employees are more likely to be attracted to people who are similar to them. This means that they may communicate with, befriend, and interact with those in the organization who are similar in gender, race, age, or other demographic traits. While this situation may be perfectly normal, there are some unintended consequences. For example, in a company where upper level management consists mostly of males, women who mostly interact with other women may not benefit from the mentoring a powerful upper level individual may provide. Similarly, something as simple as having lunch with similar others may mean that some people gain an advantage over others by being updated about organizational changes, or by informally influencing important decisions. Organizations may tackle this issue by having organizationally sponsored mentoring programs. While employees may naturally gravitate toward similar others, being encouraged or assigned to interact with others may short-circuit this process, giving employees a chance to build relationships with those different others. Simply bringing all employees together through events like a company picnic may not be of much help, because often people divide along demographic lines in these events. Instead, structured activities encouraging people to interact with specific others may be helpful. When organizing activities, it also makes sense to find activities that will not divide people along gender, age, or race lines. 4. What is the earnings gap? Who does it affect? What are the reasons behind earnings gap? Earnings gap refers to the gap between average earnings of men, women, and minorities. For example, the median earnings of women who worked full time in 2014 were 81 percent of men working full time. Similarly, in 2008, for every dollar a Caucasian male employee made, an African American male made around

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Organizational Behavior 2.0 – Bauer and Erdogan 12 Instructor Manual 79 cents, while a Hispanic employee made 64 cents. Here are some potential explanations:  These figures often aggregate across different occupations, industries and positions. Therefore, part of the explanation is that women are found in lower-paying occupations such as childcare as opposed to construction or manufacturing jobs.  Differing levels of education are often proposed as part of the reason for the earnings gap between Caucasians and minorities.  Women are more likely to take time off to raise small children, which affects earnings.  Differences in likelihood and ability to negotiate partly explain the gap.  While all of the above contribute to the earnings gap, they do not completely account for the difference. Stereotypes and prejudices continue to hurt women and minorities, keeping them in less visible positions with smaller chances for promotions. Studies show that candidates with AfricanAmerican–sounding names are less likely to get callbacks. 5. Do you think that laws and regulations are successful in eliminating discrimination in the workplace? Why or why not? While the passing of EEOC (Equal Employment Opportunity Commission) guidelines definitely increased awareness of prejudices and discrimination, and went a long way in educating employees and organizations, they are unlikely to provide the ultimate solution. For one thing, employees who hold prejudices and discriminatory attitudes may have become aware that it is unacceptable to overtly discuss these feelings and thus become better at hiding their attitudes and prejudices. For example, instead of openly claiming that a candidate is too old for the position, they may be framing the candidate as “a poor fit with the company culture.” Second, many forms of discrimination are not a result of bad intentions. When considering the best candidate for an overseas assignment, a manager may think about a young male employee who does not have kids as opposed to a more qualified female employee with two children, assuming that the latter employee would be less interested in uprooting her family. The expatriate assignment may serve as a stepping-stone for the male candidate in question, grooming him for future leadership positions. While the action of the manager in question is probably not illegal per se, the outcome would be discriminatory.

B. CULTURAL DIVERSITY 1. What is culture? Do countries have uniform national cultures? Culture is a form of human expression, in nearly every aspect of life (art, food, religion, daily routines). Culture usually originates in a specific geographic region, which can then be practiced in other parts of the world. While in some countries, there is a uniform national culture, culture is not universal in the United States, and for that reason it is important for people to respect the culture of others, including in the workforce.

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Organizational Behavior 2.0 – Bauer and Erdogan 13 Instructor Manual 2. How would you describe your own home country’s values on the four dimensions of culture? Geert Hofstede defines the four main dimensions of culture as: -Individualism vs. Collectivism -Masculinity vs. Femininity -Power Distance - Uncertainty Avoidance The United States is an individualist and masculine nation. Its power distance is very high (a large gap between the wealthy and the poor – 1%), and generally has a high uncertainty avoidance – stressing precision and efficiency in the workforce 3. Reflect on a time when you experienced a different culture or interacted with someone from a different culture. How did the cultural differences influence your interaction? Depending on the diversity of the class, this question may generate lively discussion. Students usually are eager to describe the cultural differences they might have noticed if they have ever been abroad. You may ask them about their experiences interacting with someone from a different culture while in their local country. If you have international students in your class, you may ask them to share their early experiences interacting with locals. 4. How does culture influence the proper leadership style and reward system that would be suitable for organizations? The appropriate leadership style seems to depend on the cultural context. For example, in highly power distant cultures, paternalistic leaders—a leader who is authoritarian but makes decisions while showing a high level of concern toward employees as if they were family members—may be preferred. In collectivistic societies, there may be greater expectations of informing employees about important decisions. In cultures high in uncertainty avoidance, the level of changeoriented and transformational leadership behaviors tends to be less frequent. In terms of reward systems, employees in collectivistic cultures may appreciate rewards targeting the whole family, such as parties where employees can attend with their family members. In power distant societies, rewarding managers with visible status signs such as a company car or a nice office may be expected. In highly uncertainty-avoidant cultures, having a large percentage of an employee’s paycheck as base pay as opposed to commissions may motivate employees more. Finally, in feminine cultures, employees may value paid vacations while in masculine cultures more material rewards may be more desirable. 5. Imagine that you will be sent to live in a foreign country different from your own in a month. What are the types of preparations you would benefit from doing? The answer should also depend on how long the assignment is. For long assignments, longer and more detailed preparations would be helpful. You may want to remind students that in longer assignments, preparing the family members © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 14 Instructor Manual who will accompany the expatriate is essential for the success of the assignment. Many expatriate assignments fail because the spouse feels lonely, bored, or is otherwise unable to adjust. Learning about the country’s work culture as well as cultural aspects that affect daily life would be useful. Some basic language training would be very useful for more effective communication, as well as demonstrating to new colleagues the expatriate’s high level of motivation. The expatriate would benefit from a social network. Trying to establish this network before departing would be helpful. Contacting future colleagues in advance may help in getting ready as well as creating the early interactions on which future relationships would be built. You may want to remind students that even when going to countries where the same language is spoken and the culture is similar, such as an American employee assigned to the United Kingdom or Australia, doing advance planning would be useful to adjust sooner and perform better.

C. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. Do you believe that multinational companies should have an ethics code that they enforce around the world? Why or why not? While having a global code of ethics should be useful in highlighting the business practices the organization wants its employees to live by, it is important to craft this ethics code while considering the different local environments the organization is going to operate in. If the MNC’s ethics code contradicts national values and is regarded as ethnocentric, it is likely to be ignored altogether. Instead, it seems important to draft an ethics code that resonates with employees from different parts of the world. For example, having an ethics code that prohibits hiring family members of employees to prevent nepotism may be challenged in a collectivistic culture, where it would go against strong family-oriented values. Similarly, having policies against accepting gifts may be admirable for preventing bribes, but in cultures where gift giving is important, such global guidelines will be challenging to enforce. In summary, crafting codes of ethics while considering local values, and higher-level values instead of specific practices, which may vary across different locales, may be advisable. 2. How can organizations manage a workforce with diverse personal ethical values? Dealing with this tricky issue is one of the reasons that companies devise codes of ethics. Having a code of ethics shows employees the types of behaviors desirable in a given company. In addition to having written statements, training employees in a company code of ethics may be useful. This could take the form of presenting employees with scenarios and then providing the “right” answer, or the way in which the organization wants such situations to be handled. Indoctrinating new © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 15 Instructor Manual employees in the code of ethics starting from early days may help employees understand how their personal ethics may differ from company ethics and show them acceptable actions. Finally, when an employee is observed to be demonstrating behaviors that do not fit with the company’s ethical values, reinforcing the correct behaviors while discouraging future occurrences of undesired behaviors may be useful.

D. DOING GOOD AS A CORE BUSINESS STRATEGY: THE CASE OF GOODWILL INDUSTRIES 1. What are Goodwill’s competitive advantages? Goodwill has maintained their mission for over 110 years. “The organization has maintained its core mission to respect the dignity of individuals by eliminating barriers to opportunity through the power of work.” Goodwill is so successful because they put 82% of their revenue back into programs to create employment opportunities, meaning that every 33 seconds of every business day, a new person is employed and becomes one step closer to economic stability. 2. Goodwill has found success in the social services. What problems might result from hiring and training the diverse populations that Goodwill is involved with? “If you walk into a local Goodwill retail store you are likely to see employees from all walks of life, including differences in gender and race, physical ability, sexual orientation, and age. Goodwill provides employment opportunities for individuals with disabilities, lack of education, or lack of job experience”.  While this is an excellent approach in many ways, it could be the cause of workforce conflicts strong disagreements of beliefs/ opinions / lifestyles...etc.   3. Have you ever experienced problems with discrimination in a work or school setting? Student’s answers will vary. Some may not have experienced or witnessed any discrimination. Others will have, however the discrimination may be different (due to race, gender, religious beliefs, sexual preference) etc. 4. Why do you think that Goodwill believes it necessary to continually innovate? This question will generate answers that may lead to more general discussions of US industries and business tactics. Students will discuss the continual innovations and advancements in today’s society, and that Goodwill too needs to innovate to keep up with our fast paced society.

II. End of Chapter Materials A. ETHICAL DILEMMA You are working for the police department of your city. When hiring employees, the department uses a physical ability test where candidates are asked to do 30 push-ups and © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 16 Instructor Manual 25 sit-ups, as well as climbing over a 4-foot wall. When candidates take this test, it seems that about 80% of the men who take the test actually pass it, while only 10% of the female candidates pass the test. Do you believe that this is a fair test? Why or why not? If you were asked to review the employee selection procedures, would you make any changes to this system? Why or why not?

B. INDIVIDUAL EXERCISE A colleague of yours is being sent to India as a manager for a call center. She just told you that she feels very strongly about the following issues: a) Democratic leaders are the best leaders because they create a more satisfied workforce. b) Employees respond best to individual-based pay incentives and bonuses as tools for motivation. c) Employees should receive peer feedback about their performance level so that they can get a better sense of how well they are performing. After doing some research on the business environment and national culture in India, how would you advise your colleague to behave? Should she try to transfer these three managerial practices to the Indian context? Why or why not?

C. GROUP EXERCISE Diversity Dilemmas Imagine that you are working in the HR department of your company. You come across the following scenarios in which your input has been sought. Discuss each scenario and propose an action plan for management. 1. Aimee is the mother of a newborn. She is very dedicated to her work but she used to stay for longer hours at work before she had her baby. Now she tries to schedule her work so that she leaves around 5:00 pm. Her immediate manager feels that Aimee is no longer dedicated or committed to her work and is considering passing her over for a promotion. Is this decision fair? 2. Jack is a married male, while John is single. Your company has an assignment in a branch in Mexico that would last a couple of years. Management feels that John would be better for this assignment because he is single and is free to move. Is this decision fair? 3. A manager receives a request from an employee to take off a Wednesday for religious reasons. The manager did not know that this employee was particularly religious and does not believe that the leave is for religious reasons. The manager believes that the employee is going to use this day as a personal day off. Should the manager investigate the situation? 4. A sales employee has painful migraines intermittently during the workday. She would like to take short naps during the day as a preventative measure and she also needs a place where she can nap when a migraine occurs. Her immediate manager feels that this is unfair to the rest of the employees. 5. A department is looking for an entry-level cashier. One of the job applicants is a cashier with 30 years of work experience. The department manager feels that © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 17 Instructor Manual this candidate is overqualified for the job and is likely to be bored and leave the job in a short time. Instead, they want to pursue a candidate with 6 months of work experience who seems like a better fit for the position. Is this fair? Why or why not?

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA While being a police officer can be physically intensive, it is important to consider if passing the physical test will determine a candidate’s ability to be an effective officer. For example, the test does not measure a candidate’s endurance. What good is being able to climb a wall if an officer cannot run three blocks to catch a criminal? Additionally, one may argue that a certain amount of strength is necessary to be a police officer in order to restrain an uncooperative suspect. While this may initially seem valid, it is important to remember that there are a variety of tools and methods at the disposal of officers to assist in that exact situation. A stun gun can subdue most individuals, and hand-to-hand combat training would allow even the smallest and weakest of individuals to effectively perform police duties. In other words, the organization will need to determine the exact level of endurance or other physical abilities police officers will need to demonstrate on a daily basis. If the criteria are set arbitrarily, they may be unfairly excluding some candidates.

B. INDIVIDUAL EXERCISE There are several factors that will contribute to the three ideas failing to work in India. The first idea your colleague feels strongly about is that a democratic leader is better for employees. While this may be the case in the United States, India is a highly collectivist culture with a strong family focus. Children will often defer to their family to determine what organization they should work for. Because of this comfort with a clearly hierarchical power structure, employees may feel uncomfortable with a democratic leader. While pay can be a great motivator, India’s collectivist culture may not coincide with singling out an individual for a raise or bonus. Because individuals in India focus more on team performance than individual contribution, a team-based incentive would likely work better. Also related to collectivist culture is the idea of peer review. In more individualistic societies such as the United States or Australia, peer review can be an effective feedback tool. In collectivist and high power distant societies such as India, peers may not be comfortable providing feedback for other employees. Additionally, any feedback received may not be accurate, because of Indian employees’ tendency to focus on team contribution. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 18 Instructor Manual In general, a management style more suited for a collectivist, high power distant society would be more effective than a style representative of successful managers in the United States. You may advise your colleague to examine the company culture before implementing any major changes.

C. GROUP EXERCISE 1. No. The first thing to consider is that staying extra hours is not mandated by Aimee’s job description, it was just something she would do anyway. Second, it would be reasonable to assume that she is organizing her schedule to accommodate her new child rather than losing her dedication to work. Third, if Aimee’s performance while at work merits a promotion, then she deserves the promotion regardless of her schedule outside of work. Finally, Aimee’s child will not be an infant forever. There is a very good chance that once the child is a bit older, Aimee will return to her previous schedule. With this in mind, passing over Aimee for a promotion would not only be potentially illegal, but also foolish. Instead, management should discuss the nature of the promotion with Aimee. It is entirely possible that the extra obligations associated with a promotion would be too much for Aimee at this time. She may be more comfortable remaining in her current position for the time being. 2. No. Organizational decisions should be based on performance at work and employee preference. It is not the organization’s job to make decisions about the nature of an employee’s outside relationships or obligations. Perhaps Jack’s wife is from Mexico, and Jack has been looking for a way to move his family to Mexico for a few years. Additionally, John has just purchased a home and is in no position to move any time soon. In this case, Jack would be the better candidate. Management should present the opportunity to the employee that is the best fit for the position and try to get an idea of how a transfer would affect personal obligations. If Jack is the better candidate, offer it to him first. Let him weigh the pros and cons and make a decision himself. 3. No. Religion is a touchy subject for many people and an “investigation” would probably not go over well with other employees. Instead, the organization could consider having something like flexible time off. In this case, all employee time off is pulled from the same pool. If employees of different religions want to take time off for religious purposes, it would be the same as taking a day off to go on vacation or even for being sick. In this type of environment, a day off is a day off, regardless of circumstance. 4. This situation encroaches on the idea of accommodation without “undue burden”. For example, if many employees were packed into already cramped space, with no room to spare, it would be extremely difficult to accommodate the employees’ needs. At the same time, if space were plentiful, it may seem distinctly unfair that one employee gets to take naps during the day. In the latter scenario, perhaps it would be a good idea to create a nap room for all employees. Several studies have shown that taking a short nap during the day can reduce stress and increase productivity. Maybe the employee suffering © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 19 Instructor Manual with migraines would be a good candidate for telecommuting, as long as other employees were given the opportunity as well. 5. While it is possible that an overqualified employee may become bored at an entry level job, an employee with only six months of work experience might be just as likely to leave. There is a good chance that the older employee with more experience is looking for a simple job to make extra money whereas the less experienced person is looking for a job while looking for a better position. It would be good idea to determine the intentions for each potential employee before deciding which candidate would be a better fit.

IV. Bonus Material A Rose by Any Other Name… Names tend to carry a great deal of meaning for individuals. Dale Carnegie wrote the following advice in his book “Remember that a person's name is to that person the sweetest and most important sound in any language.” To start them sharing, ask students to add the following points to the conversation- their formal name, the meaning/origin of their name (if they know it), and any other insights/opinions they have about their name.

V. Relevant TED Talks for bringing course concepts to life A. Title: Can we all “have it all”? by Anne-Marie Slaughter http://www.ted.com/talks/anne_marie_slaughter_can_we_all_have_it_all Synopsis: Anne-Marie touches on her previous research and talks on women’s rights in the workplace, but in this talk expands these concepts to both women and men, and explains how shifts in work culture, environment and policies can lead to equality in the workforce. B. Title: How to overcome our biases? Walk boldly toward them by Vernã Myers http://www.ted.com/talks/verna_myers_how_to_overcome_our_biases_walk_b oldly_toward_them Synopsis: Vernã attempts to show how we do have biases while we try to overlook them. She talks about how we subconsciously have stereotypical attitudes towards people who are different from you, and how we should go away from our comfort and experience diversity for ourselves.

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Additional Readings Michàlle E. Mor-Barak (2006). Managing diversity: Toward a globally inclusive workplace. Thousand Oaks, CA: Sage Publications. Alexa Clay and Kyra Maya Philipps (2015). The misfit economy: Lessons on creativity from pirates, hackers, gangsters, and other informal entrepreneurs. New York: Simon and Shuster. Carol P. Harvey and M. June Allard (2005). Understanding and managing diversity: Readings, cases, and exercises. Upper Saddle River, NJ: Pearson Education. Robert J. House, Paul J. Hanges, Mansour Javidan, and Peter Dorfman (2004). Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks, CA: Sage Publications. Ellen Ernst Kossek and Sharon A. Lobel (1996). Managing diversity: Human resources strategies for transforming the workplace. Cambridge, MA: Blackwell Business. R. Roosevelt Thomas, Jr. (1992). Beyond race and gender: Unleashing the power of your total workforce by managing diversity. NY: American Management Association. R. Roosevelt Thomas, Jr. (1996). Redefining diversity. NY: American Management Association. Colleen Garton and Kevin Wegryn (2006). Managing without walls: Maximize success with virtual, global, and cross-cultural teams. Mc Press.

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Chapter 3

Understanding People at Work: Individual Differences and Perception OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. Have you ever taken part in a selection system such as the one described in the case? How do you feel about these tests as a job candidate? 2. Should organizations care about how job applicants react to preemployment selection tests? 3. Do you feel these tests do a good job of selecting the right person for the job? What are the barriers to their effectiveness? What problems can organizations experience when they use employee selection tests measuring personality and other attributes described in the case?

I. Discussion Questions A. THE INTERACTIONIST PERSPECTIVE: THE ROLE OF FIT 1. How can a company assess person/job fit before hiring employees? What are the methods you think would be helpful? Person/job fit is the degree to which a person’s skill, knowledge, abilities, and other characteristics match the job demands. To assess person/job fit, it is possible to utilize tests to assess the skill, knowledge, or abilities the person possesses, and whether these match with the job demands. This process starts with the company identifying the specific levels of skills required by the job, using a job analysis and a job description. Then, particular tests can be selected. For example, to hire a computer programmer, job candidates may be asked to write code. To hire a teacher, the candidate may be asked to deliver a lecture to a live audience. To hire a human resources (HR) professional, the person may be given a written test assessing the person’s professional and legal knowledge. When hiring police officers or firefighters, candidates are routinely given physical ability tests requiring lifting weights, running, or doing push-ups. In some instances, professional certification may be used to assess the level of knowledge the person possesses. For example, instead of testing the HR candidate, a PHR (Professional in Human Resources) or SPHR (Senior Professional in Human Resources) certification may be used to assess job relevant knowledge. Interviews are often useful for detecting person/job fit. In a job requiring conflict resolution, asking targeted situational questions such as “tell me about a situation where you had a conflict with someone from a different department. How did you go about resolving it?” may indicate the degree to which the person is qualified for the position or not, based on prior experiences. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 22 Instructor Manual Finally, examining someone’s resume may give useful hints for assessing person/job fit. When the job demands experience in customer service and if the candidate’s resume shows several years of experience providing customer service, person/job fit may be inferred. 2. How can a company determine person/organization fit before hiring employees? Which methods do you think would be helpful? While using paper-and-pencil tests to assess a prospective employee’s values and then correlating these values with organizational values is definitely possible, most companies rely on interviews to assess person/organization fit. Involving future peers of the candidate in this process may also be useful to see if the person fits with the team. The interview questions assessing person/organization fit would touch on topics such as the type of place being sought, the reason for leaving a prior job, characteristics of the ideal work environment for the person, and the person’s working style. For example, if the candidate’s answers reflect a liking for autonomy and empowerment while the hiring organization does not have these characteristics, it may be a poor culture fit. One of the recruitment tools successful in ensuring high person/organization fit is employee referrals. Because existing employees of a company are familiar with the company culture, they refer friends and acquaintances who are likely to fit with the company culture. Also, having internship or apprenticeship programs is useful in attracting candidates with high organization fit. Former interns will be familiar with the company culture and people working in the organization will have personal experience with them to assess their culture fit. Therefore if they apply for a position later on, their organization fit may be high. 3. What can organizations do to increase person/job and person/organization fit after they hire employees? For person/job fit, training programs, on and off the job experience, and having mentors at work who can teach the employee how to perform the job more effectively would be useful. For person/organization fit, mentors will be useful in helping the newcomer understand the company values. Orientation programs are often useful as a first step in teaching employees the company values. 4. How do you think organizations react to overqualified workers? Are these candidates viewed as highly desirable job candidates? Why or why not? Students may answer this question differently. Some may say that overqualified workers are desirable, they will achieve above and beyond expectations of the job and benefit the company. Others may argue that they are more undesirable. Employers may feel that they cannot pay the employee the amount that the employee expects to receive based on prior experience and qualifications.

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Organizational Behavior 2.0 – Bauer and Erdogan 23 Instructor Manual

B. INDIVIDUAL DIFFERENCES: VALUES AND PERSONALITY 1. Think about the personality traits covered in this section. Can you think of jobs or occupations that seem particularly suited to each trait? Which traits would be universally desirable across all jobs? Student answers will vary. Here are some examples for the big five personality traits: Openness to experience Jobs such as researcher, scientist, careers in advertising, and jobs with a creative component would fit well with this trait. Conscientiousness Research shows that this trait is related to job performance in a number of different occupations. Yet, we should remember that not all jobs are systematically studied in OB. For example, artists, musicians rarely find themselves in samples of OB research. You may ask students to speculate on jobs where low conscientiousness may not be a problem. Extraversion Jobs in sales and marketing as well as service industries seem to fit well with this trait. Here, you may want to caution students that some jobs are stereotyped to require a certain personality whereas the reality may be more complicated. For example, computer programmers and accountants are often assumed to be introverts, but in reality they often work in teams and will need to have excellent social skills. Agreeableness Agreeableness seems to be a good fit when the job involves teamwork. Jobs for which someone low in agreeableness may fit well include being lawyer, auditor, or working in a collections agency. Neuroticism This trait may be a better fit for non-management jobs with low levels of interaction with others. 2. What are the unique challenges of managing employees who have low selfefficacy and low self-esteem? How would you deal with this situation? When employees believe that they cannot perform a specific task, their actual performance will likely suffer. These employees will likely set lower goals for themselves and be less committed to their goals. Similarly, low self-esteem seems to hurt employee performance because they question their self-worth and are more negatively affected when they are presented with negative feedback. For employees with low self-efficacy, training them so that they acquire the skills is only part of the equation. Showing them that they can indeed be successful in this task may require verbal encouragement, as well as allowing them to score small wins and build their self-confidence. For employees with low self-esteem, how negative feedback is provided will be very important. Managers who provide these employees with frequent verbal encouragement may help them increase performance. When providing corrective feedback, making sure that the feedback targets behavior along with a proposed solution would be useful. Otherwise, employees with low self-esteem may view negative feedback as a judgment on

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Organizational Behavior 2.0 – Bauer and Erdogan 24 Instructor Manual their personal worth and may become demoralized as opposed to viewing feedback as a helpful aid. 3. What are some methods that companies can use to assess employee personality? As discussed in the text, personality testing has challenges, such as faking. Therefore, when selecting employees, companies are advised to proceed with caution. Yet, companies do not use only personality tests in selection. When personality tests are used for training employees and planning career development, they are less likely to suffer from the biases that may occur during employee selection. If test results are going to be used for the benefit of the employee as opposed to making judgments about the employee, employees will have more reason to be open and honest when reporting their personalities. Interviews may also be useful in gaining information about an employee’s personality. Asking questions about past leadership experience, preferred work situations, or past ways in which the person dealt with dilemmas, organizations may gain information about the employee’s personality. Here, it may be useful to steer the discussion toward challenging the question itself: Why should companies worry about assessing employee personality? Isn’t it more useful to measure skills? In fact, the weak correlation between personality and job performance indicates that measuring skill levels may be more useful than measuring personality per se. 4. Have you ever held a job where your personality did not match the demands of the job? How did you react to this situation? How were your attitudes and behaviors affected? Student answers to this question may vary. When there is a mismatch between personality and job demands, employees are likely to be unhappy at work and are likely to quit their jobs sooner. This may also increase their stress level and whether they go “above and beyond” when it comes to performing their job duties. 5. Can you think of any limitations of developing an “ideal employee” profile and looking for employees who fit that profile while hiring? There are a couple of downsides to this approach. First, the ideal employee of today may not be the ideal for the future, and having this profile may encourage the company to hire a certain type of employees, reducing diversity in the organization. Second, if the ideal profile is correlated with gender, race, age, or any other protected characteristic, such profiling may be illegal. Third, this approach assumes that the best performing employees perform highly because of their personality. In reality, performance is also a function of the environment the organization creates, the company culture in place, and the incentives used for motivating employees. The search for the ideal employee may lead employers to forget that they have a key role in increasing employee performance.

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Organizational Behavior 2.0 – Bauer and Erdogan 25 Instructor Manual

C. PERCEPTION 1. What are the implications of contrast error for interpersonal interactions? Does this error occur only when we observe physical objects? Or have you encountered this error when perceiving behavior of others? Contrast error is also prevalent when we observe other individuals or teams in the workplace or in personal life. An interviewer who talks to two excellent candidates may view a third, moderately strong candidate as a misfit for the position. This may be because in contrast to the first two, the third person comes across as weaker than he/she really is. Or imagine that a professor is grading student papers. Right after grading two papers that were poorly done, the professor who comes across an average paper may grade the paper higher than it deserves because in contrast to the first two, the third one appears so much better. 2. What are the problems of false consensus error? How can managers deal with this tendency? False consensus error refers to believing that others share our tendencies, prejudices, stereotypes, or other habits. This leads to the belief that whatever we are doing, “everybody else is doing it as well.” This may increase the level of discrimination or other unethical behaviors in the workplace. This tendency may be dealt with by making it clear that these behaviors will not be tolerated in the workplace. Having strong ethics guidelines may also be useful. 3. Is there such a thing as a “good” stereotype? Is a “good” stereotype useful or still problematic? Some stereotypes may seem good to some people, like the stereotype that older employees are more loyal to the organization or they are more reliable workers. You would expect that such stereotypes could lead to some decisions that may benefit members of the particular group, such as an older job candidate. Yet, using these stereotypes in decision-making will likely lead to ineffective decision making. This is because there will be unrealistically high expectations from the person, and when these expectations are not matched by the reality (such as an older employee being absent for a couple of days) the person may be penalized much more harshly for going against the stereotype. 4. How do we manage the fact that human beings develop stereotypes? How would you prevent stereotypes from creating unfairness in decisionmaking? It is probably not possible to avoid stereotyping altogether. As human beings, we classify information into categories. The problem is not necessarily the fact that people have these stereotypes, but we use stereotypes (or generalized assumptions) to make decisions or inferences about particular individuals. A better approach would be to collect information about the particular individual. For example, instead of assuming that an older job candidate would demonstrate higher levels of safety behaviors, examining the safety records of each job candidate would allow the decision maker to go beyond stereotypes. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 26 Instructor Manual 5. Is it possible to manage the attributions other people make about our behavior? Let’s assume that you have completed a project successfully. How would you maximize the chances that your manager will make an internal attribution? How would you increase the chances of an external attribution when you fail in a task? The person who succeeds on a project may manage impressions by using accounts, or explaining how he or she was able to complete the project more successfully. Similarly, the person who fails on the project may provide an explanation for the behavior, explaining the circumstances leading to the failure of the project, hoping that the decision maker blames the situation, as opposed to the person. Finally, because the overall relationship with the manager will affect the attributions the manager makes, spending effort to build a good relationship with the manager may indirectly influence the type of attributions being made about the behavior.

D. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. If ethical decision-making depends partially on personality, what can organizations do to increase the frequency of ethical behaviors? If ethical decision-making is partly a function of personality, then organizations may hire people who will have a greater propensity to demonstrate ethical behaviors. In other words, developing selection tests to screen out people with a higher likelihood of unethical behaviors may be the solution. Some companies use honesty tests as part of their employee selection. Still, it is important to remember that personality is in general a weaker predictor of behavior compared to other factors such as organizational culture, role models, leadership, or incentives present to behave ethically. Therefore, creating the situation in which most employees are encouraged to demonstrate ethical behaviors may be a good solution. 2. Do you think personality tests used in Western cultures in employee selection can be used in other cultures? There would be several problems with using these tests in non-Western cultures. First of all, the prevalence of some traits seems to be culturally determined. For example, research shows that the level of introversion in society seems to be higher in Asian cultures compared to Western cultures. Therefore, selection tests looking for specific traits may find that a greater percentage of candidates are being excluded from the candidate pool if similar norms are enforced in different cultures. Second, we do not know that traits are correlated with similar outcomes around the world. For example, extraversion seems to be important for leaders in the United States or some other Western cultures, but introversion is correlated with leadership in Asian cultures. Given these differences, using the same personality test in different cultures may lead to ineffective decision-making. Before using any test in a culture different from where the test originated, it is important to validate the test. This means that after the test is translated, test results should be compared with actual performance. If the test results continue to be © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 27 Instructor Manual meaningfully correlated with important outcomes such as performance, it would be possible to use the test in that context.

E. INDIVIDUAL DIFFERENCES IN PERCEPTION PAY OFF: THE CASE OF TIAA-CREF 1. How do you think TIAA-CREF’s diversity statement influences their day-to-day decision-making? TIAA-CREF’s diversity statement: “Building on our success, our goal is to ensure that we continue to respect the creativity, talents and experiences that each employee contributes regardless of age, gender, race, ethnicity, religious belief, sexual orientation, mental or physical disability, veteran status, medical condition, or family circumstance. We actively recruit and hire members of underrepresented groups for opportunities in all areas, at all levels in the organization, to achieve our objective of a highly diversified talent pool.” This includes their suppliers. So on a day-to-day basis their decisions always have this diversity statement in mind. 2. Can you think of examples in your own life when a diverse group has helped or hindered decision-making? Student’s answers will vary with different personal examples of how diversity has affected their decision-making. 3. Do you think TIAA-CREF has a competitive advantage due to their history of valuing diversity? Student’s answers will vary. Some will say that they do and that they attract more forward-thinking customers, suppliers and employees. Others will say no because they limit themselves to certain people and company’s that maintain the diversity they aim to work with and work for. 4. Do you think TIAA-CREF would continue to value diversity for decision making as much as it does if it fell on hard economic times? Why or why not? Student’s answers will vary based on personal beliefs of the importance of diversity compared to keeping a company profitable. 5. What costs to do you think are associated with maintaining diversity during decision-making? When maintaining diversity within an organization, it is assumed that there will be a variety of views and opinions that may not agree with those of other employees. This discord creates difficulties during decision-making, which could result in wasting time debating over different solutions or even in the inability to reach a resolution.

II. End of Chapter Materials A. ETHICAL DILEMMA You are applying for the job of sales associate. You have just found out that you will be given a personality assessment as part of the application process. You feel that this job requires someone who is very high in extraversion, and someone who can handle stress © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 28 Instructor Manual well. You are relatively sociable and can cope with some stress but honestly you are not very high in either trait. The job pays well and it is a great stepping-stone to better jobs. How are you going to respond when completing the personality questions? Are you going to make an effort to represent yourself as how you truly are? If so, there is a chance that you may not get the job. How about answering the questions to fit the salesperson profile? Isn’t everyone doing this to some extent anyway? Discussion questions 1. What are the advantages and disadvantages of completing the questions honestly? 2. What are the advantages and disadvantages of completing the questions in a way you think the company is looking for? 3. What would you really do in a situation like this?

B. INDIVIDUAL EXERCISE Changing Others’ Perceptions of You How do other people perceive you? Identify one element of how others perceive you that you are interested in changing. It could be a positive perception (maybe they think you are more helpful than you really are) or a negative perception (maybe they think you don’t take your studies seriously).  What are the reasons they formed this perception? Think about the underlying reasons.  What have you done to contribute to the development of this perception?  Do you think there are perceptual errors that contribute to this perception? Are they stereotyping? Are they engaging in selective perception?  Are you sure that your perception is the accurate one? What information you have which makes your perceptions more valid than theirs?  Create an action plan about how you can change this perception.

C. GROUP EXERCISE Selecting an Expatriate Using Personality Tests Your department has over 50 expatriates working around the globe. One of the problems you encounter is that the people you send to other cultures for long-term (2- to 5-year) assignments have a high failure rate. They either want to return home before their assignment is complete, or they are not very successful in building relationships with the local employees. You suspect that this is because you have been sending people overseas solely because of their technical skills, which does not seem to be effective in predicting whether these people will make a successful adjustment to the local culture. Now you have decided that when selecting people to go on these assignments, personality traits should be given some weight. 1. Identify the personality traits you think might be relevant to being successful in an expatriate assignment.

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Organizational Behavior 2.0 – Bauer and Erdogan 29 Instructor Manual 2. Develop a personality test aimed at measuring these dimensions. Make sure that each dimension you want to measure is captured by at least 10 questions. 3. Exchange the test you have developed with a different team in class. Have them fill out the survey and make sure that you fill out theirs. What problems have you encountered? How would you feel if you were a candidate taking this test? 4. Do you think that prospective employees would fill out this questionnaire honestly? If not, how would you ensure that the results you get would be honest and truly reflect their personality? 5. How would you validate such a test? Describe the steps you would take.

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA The first thing to keep in mind when taking a personality assessment is that some tests are set up to catch faking. This means that if you do not actually possess a particular trait, trying to fake that you do may come out in the test. Also, personality tests, when used with particular jobs, are generally designed to determine which people would be best suited for the position. In other words, if you try to fake on a personality test to get a job, there is a good chance you will not like the job at all, and you may even struggle to perform certain tasks. The other major issue to consider is that you are making assumptions about the type of personality a company is looking for. While a sales job may require someone high in extraversion, this particular sales job may want someone higher on consciousness than extraversion. Additionally, even if the company wants someone with some level of extraversion, it may not want someone high in extraversion. In this case, making yourself seem extremely extroverted might be a bad thing. In general, when taking a personality test, it is a good idea to just answer honestly. If you feel you can perform a particular job, your personality test will likely reflect that feeling.

B. INDIVIDUAL EXERCISE There are several key concepts to keep in mind while doing this exercise. People tend to form opinions about others based on personal observations as well as observations of others. First impressions carry substantial weight as well. If someone forms the opinion that you are lazy based on a preliminary interaction, it will be difficult to overcome the label.

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Organizational Behavior 2.0 – Bauer and Erdogan 30 Instructor Manual Are the reasons you think people have formed perceptions of you the actual reasons? If someone doesn’t know you very well, they may use stereotypes to form opinions. Because opinions are generally formed through observations, any action plan to change people’s opinion of you should include specific changes in actions. For example, if people have formed the opinion that you are a slob based on the fact that your clothes are always wrinkled and mismatched, when in reality you keep your home very neat and organized, your action plan should include a conscious effort to have your appearance match your lifestyle.

C. GROUP EXERCISE 1.

2.

Conscientiousness and openness to experience would be very important for living within a new culture. Depending on the culture, extraversion may actually hinder forming relationships and being successful if moving from an individualistic to a collectivist society. Since being away from friends and family can be hard, someone high on emotional stability may be better equipped to handle the transition. Many personality tests measure the big five personality traits (extraversion, conscientiousness, openness to experience, agreeableness, and emotional stability). Questions are often rated on a 5-point scale where 1 = strongly disagree, 2 = somewhat disagree, 3 = neither agree nor disagree, 4 = somewhat agree, 5 = strongly agree. Sample test questions for each trait are as follows: Extraversion At a party I like to talk to as many people as I can. I often raise my hand in class. I enjoy meeting new people. Conscientiousness I keep my workplace organized. I can always tell when someone is having a bad day. When I start a project, I always follow through. Openness to experience I enjoy trying new things. When I eat out I try to get something different every time. I am comfortable in unfamiliar situations. Agreeableness I often get along with others. I enjoy cooperating. I do not have a problem following directions.

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Organizational Behavior 2.0 – Bauer and Erdogan 31 Instructor Manual Emotional stability I am often sad. I get stressed out easily. I tend to “snap” at others. 3. 4. 5.

This will vary. This will vary. One way to validate such a test would be to use it to select employees, then monitor their performance. With enough employees, you can get an idea of whether or not the test is accurately predicting successful candidates. Because this is not always an option, another method would be to have employees fill out the test, then determine which employees have had success in similar situations in the past. If the test is valid, there should be a correlation between the test and past successes in similar situations. Additionally, you could work backwards by finding people who have had success in similar situations, having them take verified personality tests, look for correlations, then test for any traits that show up in the successful people.

IV. Bonus Material Power of Perception  This exercise is useful in starting a conversation around how deceptive perception can be.  Ask students to read this fable and view the figure below.  How is this exercise illustrative of perceptual errors? The Blind Men and the Elephant by John Godfrey Saxe It was six men of Indostan To learning much inclined, Who went to see the Elephant (Though all of them were blind), That each by observation Might satisfy his mind. The First approach’d the Elephant, And happening to fall Against his broad and sturdy side, At once began to bawl: “God bless me! but the Elephant Is very like a wall!” © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 32 Instructor Manual The Second, feeling of the tusk, Cried, -“Ho! what have we here So very round and smooth and sharp? To me ‘tis mighty clear This wonder of an Elephant Is very like a spear!” The Third approached the animal, And happening to take The squirming trunk within his hands, Thus boldly up and spake: “I see,” quoth he, “the Elephant Is very like a snake!” The Fourth reached out his eager hand, And felt about the knee. “What most this wondrous beast is like Is mighty plain,” quoth he, “’Tis clear enough the Elephant Is very like a tree!” The Fifth, who chanced to touch the ear, Said: “E’en the blindest man Can tell what this resembles most; Deny the fact who can, This marvel of an Elephant Is very like a fan!” The Sixth no sooner had begun About the beast to grope, Then, seizing on the swinging tail That fell within his scope, “I see,” quoth he, “the Elephant Is very like a rope!” And so these men of Indostan Disputed loud and long, Each in his own opinion Exceeding stiff and strong, Though each was partly in the right, And all were in the wrong! MORAL.

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Organizational Behavior 2.0 – Bauer and Erdogan 33 Instructor Manual So oft in theologic wars, The disputants, I ween, Rail on in utter ignorance Of what each other mean, And prate about an Elephant Not one of them has seen!

Source: J. Short, T.N. Bauer, L. Simon, and D. Ketchen (2009). Atlas Black: Managing to Succeed. NY: Flat World Knowledge. Used with permission.

If you were to take into account what each person described as an elephant, it might look something like the picture above.

V. Relevant TED Talks for bringing course concepts to life A. Title: The danger of hiding who you are by Morgana Bailey http://www.ted.com/talks/morgana_bailey_the_danger_of_hiding_who_you_ar e#t-112658 Synopsis: Morgana, for the first time during this talk, admits to being a lesbian. She speaks of the dangers of hiding yourself in your life and workplace, and talks of her struggles to come out and speak. She shows how each individual difference is important to creating diversity and how no one should hide that. B. Title: The Power of Introverts by Susan Cain http://www.ted.com/talks/susan_cain_the_power_of_introverts Synopsis: Susan describes how our society places value in outgoing, confident extroverts. She describes how she attempts to live an extroverted life, and how she was not able to be herself. She explains the difference between being an introvert and being shy, and speaks of the importance of introverts in our

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Organizational Behavior 2.0 – Bauer and Erdogan 34 Instructor Manual society, and how they too are stimulated, but in different environments than that of extroverts. Additional Readings Marcus Buckingham and Donald O. Clifton (2001). Now, discover your strengths. NY: The Free Press. Marcus Buckingham (2007). Go put your strengths to work: 6 powerful steps to achieve outstanding performance. NY: The Free Press. Daniel M. Cable (2007). Change to strange: Create a great organization by building a strange workforce. Upper Saddle River, NJ: Wharton School Publishing. Susan Cain (2013). Quiet: The power of introverts in a world that can’t stop talking. Broadway Books. Malcolm Gladwell (2005). Blink: The power of thinking without thinking. Boston, MA: Little Brown. Heidi Grant Halvorson (2015). No one understands you and what to do about it. Harvard Business Press. Ed Michaels, Helen Handfield-Jones, and Beth Axelrod (2001). The war for talent. Boston, MA: Harvard Business School Press. Sheryl Sandberg (2013). Lean in: Women, work, and the will to lead. Knopf.

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Organizational Behavior 2.0 – Bauer and Erdogan 35 Instructor Manual

Chapter 4

Individual Attitudes and Behaviors OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. SAS is involved in cutting-edge technology. Does this give it a distinct advantage in employee retention and satisfaction over, for example, a manufacturing company or a food retailer? 2. Do you feel that investing heavily in employee perks ultimately pays off for a company? Would you feel the same way during hard economic times, when the pool of highly qualified workers grows and the number of available jobs shrinks dramatically? 3. How much of an advantage does SAS have, given that the company produces analytic software to help businesses improve their functionality? 4. What do you think you’d like about working at SAS? What would you potentially like?

I. Discussion Questions A. WORK ATTITUDES 1. What is the difference between job satisfaction and organizational commitment? Which do you think would be more strongly related to performance? Which would be more strongly related to turnover? While they are both job attitudes, job satisfaction deals with one’s attitudes toward the work one performs as well as the context in which the work is performed, while organizational commitment is the attachment to the company. Research shows that the connection between work attitudes and performance is not particularly strong, and organizational commitment is weakly related to performance compared to job satisfaction. For turnover, commitment is a more relevant predictor. 2. Do you think making employees happier at work is a good way of motivating people? When would high satisfaction not be related to high performance? If employees are dissatisfied at work, they are less likely to be motivated. Yet, simply because they are satisfied will not lead to higher levels of motivation. Specifically, an employee may be satisfied with work simply because the work is not very demanding and there is little supervision. Or, the person may like that he/she can hang out with friends all day, but this will be unlikely to increase the performance or motivation levels. Similarly, a person may be satisfied with certain elements of the job, but if abilities are missing, performance will suffer. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 36 Instructor Manual 3. In your opinion, what are the three most important factors that make people dissatisfied with their job? What are the three most important factors relating to organizational commitment? -Stagnancy within the company: no innovations in production or staff, no motivation (no pay raises, no promotions). -A lack of organization in management. -Minimal benefits in health care, vacation time, insurance, etc. These three things relate back to organizational commitment and the willingness of the company to spend money and time to insure the wellbeing of their employees, which ultimately lead to a more satisfied and dedicated employee willing to put their hard work back into the organization. 4. How important is pay in making people attached to a company and making employees satisfied? While pay satisfaction is an important element of job satisfaction, it also depends on personality differences and the type of pay in consideration. Fairness of pay with respect to referents within and outside the company is important. People expect their base pay to be fair. Moreover, pay takes many forms under the category of incentives. Pay that is directly tied to performance, and pay raises one receives for being an excellent employee are not only important for meeting employee’s basic needs, but they should also communicate that the person is valued and appreciated. Despite the importance of pay, it is not the sole predictor of work attitudes. In fact, the nature of the job one performs (the amount of challenge involved, whether skills are utilized on the job, etc.) is an important predictor of satisfaction. 5. Do you think younger and older people are similar in what makes them happier at work and makes them committed to their companies? Do you think there are male/female differences? Explain your answers. Younger and older employees seem to vary in what makes them satisfied with work. It seems that older employees are more tolerant of many negative elements of the work environment while younger employees prefer to leave their jobs in response to their dissatisfaction. Older employees may appreciate the flexibility of their schedules. Older employees may have more years of work experience, allowing them to put their current experiences into context and making it possible to make comparisons. To the extent that age is related to physical condition of the person, older employees pay more attention to the physical elements of the workplace. Older employees may face age-related stereotypes and discrimination, potentially making them more sensitive to fairness of the work environment. To the extent that their medical bills are higher, satisfaction with benefits may contribute to their commitment to the organization. For gender differences, gender-related stereotypes may make women more sensitive to fairness of the work environment. Also, more women seem to pay

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Organizational Behavior 2.0 – Bauer and Erdogan 37 Instructor Manual more attention to the ability to balance work and family obligations; therefore family-friendly policies may be useful to increase job satisfaction.

B. WORK BEHAVIORS 1. What is the difference between performance and organizational citizenship behaviors? How would you increase someone’s performance? How would you increase citizenship behaviors? Performance refers to behaviors that are prescribed in one’s job description, while citizenship behaviors involve behaviors that improve the quality of life within the organization without being prescribed. Perhaps the best way of increasing job performance is ensuring that the person has the skills and abilities to perform the job, whereas citizenship behaviors are less dependent on one’s ability to perform. Instead, motivation to perform these behaviors is more important. Treating employees fairly, building effective relations with them, creating a people-oriented atmosphere would likely increase the level of citizenship behaviors. 2. Are citizenship behaviors always beneficial to the company? If not, why not? Can you think of any citizenship behaviors that employees may perform with the intention of helping a company but that may have negative consequences overall? Citizenship behaviors may certainly have unintended consequences. Volunteering to complete tasks undesirable to others may lead to burnout for the individual and may prevent other employees from learning how to do certain tasks. Organizing several social events to celebrate the holiday season, while improving camaraderie, may reduce productivity and may cause stress for other employees who are not interested in attending. It is also possible that some employees demonstrate citizenship behaviors as a political tool. An employee offering to bring coffee to the manager may be doing this as an impression management tactic, which may lead to negative reactions in coworkers. 3. Given the factors correlated with job performance, how would you identify future high performers? Skills and abilities can be detected using skills tests or by reviewing one’s past experience. General mental abilities may be assessed using intelligence tests. For example, the Wonderlic personnel test is a fifty-item test that applicants are asked to complete in twelve minutes. Many organizations use this test in employee selection because it has been correlated with job performance in a number of settings. 4. Absenteeism is a type of counterproductive work behavior. Can you think of other counterproductive work behaviors? How can organizations minimize the occurrence of counterproductive behaviors at work? Another counterproductive work behavior is indolence (laziness). While the employee does in fact come to work, they exert minimal effort. This attitude can spread throughout the workforce and severely harm the productivity of a company. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 38 Instructor Manual Ways to minimize indolence is through the use of incentives to motivate employees to work hard (pay raises, promotions, employee of the month). 5. In some companies, managers are rewarded for minimizing the turnover within their department or branch. A part of their bonus is directly tied to keeping the level of turnover below a minimum. What do you think about the potential effectiveness of these programs? Do you see any downsides to such programs? The advantage of these programs is that they may be effective in reducing employee turnover by communicating to managers their important role in creating a positive work environment. Yet, if managers feel that turnover of employees is beyond their control, this could lead to perceptions of unfairness. For example, if exit interviews show that most employees quit because of pay and managers have little say in pay decisions, such a reward program would be unlikely to be effective. Also, a side effect may be that managers, in an attempt to prevent employees from leaving, start making many exceptions to company policy for employees who are considering leaving, causing unfairness to other employees.

C. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. Which factors related to work attitudes in Western cultures should also be related to work attitudes in other cultures? Are there any that you think would not be important in a different culture you are familiar with? It seems that the relevance of elements may be different around the world. In collectivistic societies, employees expect their companies to take care of their many needs. In these countries (such as China and Turkey) organizations may provide housing to their employees, service buses to transport employees from home to work, and pay for their lunch. Organizations that do not provide these types of services may experience lower satisfaction in the workforce. Also, coworker relations tend to be very important to the job satisfaction of employees in collectivistic societies. 2. Do you think people leave their jobs for the same reasons around the world? If not, explain why you think so. Depending on the economic situation within a country, you may expect employees to remain in their jobs even when they are dissatisfied at work. Quitting one’s job because one does not fit with the company culture may be a luxury in a developing country with few job opportunities. Similarly, in countries where employees are struggling to make ends meet (such as China), very small salary differences may motivate employees to quit their jobs and go elsewhere. On the other hand, in cultures that have a long-term view in which patience is valued, advancement opportunities may be valued as much as the characteristics of the current job. While employees in cultures such as the United States may be more sensitive to the characteristics of their current jobs, employees in Japan seem to appreciate the training they get from the organization and take a longer-term view of whether the job is meeting their needs. © Bauer & Erdogan 2016, published by Flat World Knowledge 

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D. RETAINING LONESOME ROAD WARRIORS: THE CASE OF LONG-HAUL TRUCK DRIVERS Given that a truck driver shortage is expected around the world, how can trucking companies attract employees who will fit best and stay the longest in the company? Is it possible to increase retention by hiring the right person? To find and hire new employees for truck drivers, companies should look at the current employees they have, observe similar, positive and efficient characteristics within the different drivers, and begin to come up with a standard type of person who would fit with this job. This could include characteristics such as marital status (if they are single without kids, they are less likely to be confined to certain geographic regions and therefore can move around the country with more freedom). Companies should then target this specific type of person as a reliable way to find new employees. While this is in some ways creating stereotypes, in this case it is necessary due to the expected shortages of truck drivers in the future. Pay, working conditions, and home time appear to be key in the retention of truck drivers. What innovative techniques from other industries might apply to the trucking industry?  Interpersonal relationships with people at work - a therapist of sorts  Allowing truckers to choose equipment and destination - the truck they drive/ what area of the country they drive to and from  Regular attitude surveys to check on employees mental health While the life of a truck driver is not for everyone, there are thousands of drivers who find the job satisfying and perform well on the job. What do you think explains this? Different people excel in different aspects of life, some people enjoy long drives, while others feel uneasy. Furthermore, truck drivers understand that there job is important and necessary for many companies, and feel a sense of obligation and achievement in their performance. Safety is a major concern. Poor job performance in this instance can mean the difference between life and death. Given this, whose responsibility is it to keep truck drivers feeling good about their jobs and doing well? Why? Student’s answers will vary. Some will say it is the primary responsibility of the truck company to train their drivers and insure the mental and psychical wellbeing of their employee when placing them behind the wheel of a truck. Others will say it is the primary responsibility of the driver to drive safely, just like any other drive on the road.

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II. End of Chapter Materials A. ETHICAL DILEMMA You are a department manager in an advertising agency. The employees of the department have recently completed an attitude survey. Three employees in your department reported that senior people in the department harassed them and they were experiencing a hostile work environment. You do not know who these people are, but you feel that you need to do something. The surveys were filled out confidentially, and employees were assured that their identities would not be revealed to management. You feel that you can identify who they are because the person in HR who administered the survey is a friend of yours and that person can tell you the demographics of the employees, which would help you identify them. 1. Should you ask for the identity-revealing information? What are the advantages and disadvantages of finding out the identity of these people? 2. How would you handle a situation like this now and in the future?

B. INDIVIDUAL EXERCISE Reading and Responding to Employee Blogs You found out that one of the employees from your company has created a blog about the company. Other current and ex-employees are also posting on this blog, and the picture they are painting is less than flattering. They are talking about their gripes, such as long work hours and below-market pay, and how the company’s products are not great compared to those of competitors. Worse, they are talking about the people in the company by name. There are a couple of postings mentioning you by name and calling you unfair and unreasonable. 1. What action would you take when you learn the presence of this blog? Would you take action to stop this blogger? How? 2. Would you do anything to learn the identity of the blogger? If you found out, what action would you take to have the employee disciplined? 3. What would you change within the company to deal with this situation? 4. Would you post on this blog? If so, under what name, and what comments would you post?

C. GROUP EXERCISE Exit Interview Role Play and Developing an Attitude Survey This role-play will be played by three students. One student will be an employee from the human resources (HR) department conducting the interview, the second will be the employee who is leaving, and the third will be an observer. The HR employee and the departing employee will conduct an exit interview. At the conclusion of the interview, the observer will provide feedback to the HR employee regarding how the interview could have been improved and how the employee could have been more open. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 41 Instructor Manual Part 1: Role Play Be sure to read only the role sheet assigned to you.

HR Employee Role Sheet You are working for the HR department of ATA manufacturing. The employee you will be interviewing has been with this company for three years and is now leaving. Your job is to understand why the person is leaving and whether other employees still working for your company may have similar feelings. High turnover is a problem at ATA and you are hoping to get valuable information regarding what is making employees dissatisfied. Develop a list of questions to be asked during the interview. Then, conduct the interview.

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Departing Employee Role Sheet You have worked for ATA manufacturing for the past three years. In the past year, you have become deeply dissatisfied with the working conditions and the job itself. You have now found a different job in the same industry and are happy to be leaving. The HR department contacted you to conduct an exit interview. You are very hesitant to divulge the details of why you are leaving. This is a small industry and speaking badly about the company does not really have any benefits for you. Yet, you are an honest person and if the HR shows a sincere concern to learn your opinion, you would share your thoughts about what is wrong in this company. You must also get a sense that your answers will remain confidential. The reasons you are leaving are (choose three from the following list and feel free to make up the details):  Had problems with your manager  Had problems with colleagues  Dissatisfied with pay or benefits  Little on-the-job training or development opportunities

 Office politics  Management does not care about employees  Employees treated unfairly  Other reasons you want to report

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Observer: Did the HR manager do the following?  Assure the employee of confidentiality?  Clarify the purpose of this interview? The employee has no incentive to share real thoughts, so HR employee should be convincing and highlight how this information will be used.  Show sincerity regarding the desire to get accurate information? If not, communicate to the HR employee that the departing employee has little to gain by divulging the details and HR has a lot to gain from this interview. Therefore, persuasiveness is needed.

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Organizational Behavior 2.0 – Bauer and Erdogan 44 Instructor Manual Part 2 In groups of three, review the information gathered from the exit interview. Many of these problems may be affecting the rest of the employees. Develop an attitude survey to be distributed to remaining employees of this company. Develop questions based on what came out of the interview as well as other areas you feel may be important to know. Discuss how the surveys would be administered and what would be done to (a) have a high response rate and (b) ensure the accuracy of responses.

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA If employees were ensured confidentiality, then that promise must be respected. Having someone in HR divulge information that may assist in identifying survey respondents is not only patently unethical, it may be illegal. The goal of the survey was to determine general attitude of workers, not single out individuals. However, based on the nature of the responses it is clear that further action should be taken. One of the best ways to proceed at this point may be to conduct individual interviews with all the employees who filled out surveys. The fact remains that the employees that feel they are in a hostile work environment may not want to come forward, but within a safe, one-on-one environment with a trusted manager, they may be willing to state their case. Even if specific employees are never identified, you should take action on the idea that there are employees that are uncomfortable with the work environment. Speaking in general terms can address harassment issues without using specific examples. It may be necessary to conduct another survey to identify which individuals have been doing the harassing and take direct action with them. Finally, an organization has the obligation to protect its employees from a hostile work environment and harassment from any individuals. Therefore, establishing a complaint mechanism and publicizing this mechanism to employees would be a good step. Employees should know who to go to in order to voice such concerns. They should also know that if they voice a complaint about a particular individual, they will not be harmed as a result of this action.

B. INDIVIDUAL EXERCISE While employees have the right to express their opinion, there are certain aspects that cannot be disclosed. For example, some companies have employees sign documents agreeing not to discuss particular aspects of the organization. If this is the case, the blogging might become a legal issue. Additionally, while not necessarily a legal issue, identifying employees by name is inappropriate. At the very least, employees could be asked to respect the privacy of others by not using © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 45 Instructor Manual names in their blogs. More important, the organization may want to simply talk to employees and address some of the issues causing them to be so dissatisfied. Keep in mind that two wrongs do not make a right. It is generally not wise to combat inappropriate behavior with more inappropriate behavior. With this idea in mind, it would probably only hurt the situation to attempt to post information to the blog under false pretenses or to attack those posting on the blog via similar means.

C. GROUP EXERCISE Part 1 Exit interviews are a great way for companies to find out areas where they can improve. Often, employees will move from one company to another for reasons that are beyond the control of management (location, company size, industry, simply not liking the job), but other times employees leave because of organizational deficiencies. In the latter case, management has an opportunity to capture the opinion of a less-restrained employee. In other words, because the employee is leaving and there is substantially less chance of repercussions, he or she may be inclined to deliver more candid responses to questions. Here are some sample exit interview questions:  What is the main reason you are leaving the company?  Was there a specific incident that caused you to want to leave?  What were the best and worst aspects of your job?  Is there anything about your job that could be changed to make it better?  Were the tasks involved with your job similar to what you expected?  Did you feel you were adequately trained by the company to perform your job?  Did the company provide adequate resources to assist you in performing your job?  What is your opinion of the employee review and feedback process?  Do you feel your job with this company aided you in achieving your career goals?  Do you have any suggestions on someone that might make a good replacement for you?  How could things be done differently to make the workplace better?  Do you feel your salary/wage was appropriate? Were benefits satisfactory?  Do you feel you were appropriately managed by your supervisors?  How could management change to be more effective?  What is offered by your new employer that you didn’t have here?  What are the qualities necessary for an employee to be successful here?  What company policies or guidelines do you feel actually inhibited your ability to perform your job effectively?  What is your general opinion of the company? © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 46 Instructor Manual    

Have you experienced anything that might be considered a hostile work environment? If there were any work-related issues that are causing you to leave, did you attempt to address them with management or HR? Would you recommend employment with this company to others? Any additional comments.

As a respondent (the employee leaving the company) it is generally best not to burn bridges with the organizations. If some aspect of the company or job was not to your liking, be open and honest about it, but refrain from being abusive. If there was a problem with a specific employee, it may be best not to identify the person by name. Instead, maybe focus on the fact that there were no channels available to address the issue, or that you feared a backlash from management or other employees if you spoke up about something. These are the kinds of organizational issues companies want to know about. There is always the chance there will be direct conflict among employees or with aspects of a job, but establishing methods for dealing with problems as they arise is something that can be built into future organizational policies. Be sure to be respectful in your exit interview. If you are leaving a small company to go work for a major firm, don’t belittle the opportunities the company had to offer. Part 2 Based on the responses from the exit interview, a survey can be developed to target specific issues. An easy way to ensure a high response rate is to have employees complete the survey during paid work hours (as opposed to on employees’ personal time). The accuracy of responses can be increased by ensuring confidentiality. Remember, the goal of the attitude survey is to get a picture of the organizational attitude in general, not single out specific employees. Additionally, it is important for management/HR to keep in mind that surveys of any kind can become tedious for employees. Constantly administering surveys but not taking action may lead to employees not taking the surveys seriously, and thus results will be less accurate.

IV. Bonus Material Divide the class into smaller groups of about eight people (or another even number). These groups will be further divided in half. Read the following situations. Have one group (or section of a smaller group) come up with a solution focusing specifically on what is best for the employee, without regard to time or cost. The © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 47 Instructor Manual alternate group will come up with a solution focusing on time and money (in other words, a reasonable solution that is both time and cost effective). Have the two groups compare the different solutions and try to create a compromise that satisfies both parties.      

A new accounting program, to be used by all employees, is being implemented. A company is changing from each employee having an individual office to employees sharing an open, centralized workstation environment. A company is merging with another organization. While most jobs are secure, several positions overlap and employees will be let go. The organization’s reputation for customer service has declined to the point that it is significantly affecting business. The company is being sued by an underrepresented group for having a hostile work environment. A small company is entering a period of rapid expansion to keep up with customer demand. The number of employees will triple over the next two years.

Use the following table to put into the ideas that come up in the discussion and pros and cons of each: High Cost

High Time Investment

Low Cost

Low Time Investment

Source: Brett Guidry, Portland State University. Used by permission of the author.

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V. Relevant TED Talks for bringing course concepts to life A. Title: The power of believing that you can improve by Carol Dweck http://www.ted.com/talks/carol_dweck_the_power_of_believing_that_you_can _improve Synopsis: Carol starts of her talk by showing the value of receiving a “not yet” grade vs. a “failing grade”. She researches “growth mindset”, the idea that we can increase the learning capacity of our brains and solve problems. She claims that the individual has the power to learn from their mistakes and improve him or herself. B. Title: Your elusive creative genius by Elizabeth Gilbert https://www.ted.com/talks/elizabeth_gilbert_on_genius Synopsis: Writer of Eat, Pray, Love Elizabeth suggests that instead of the rare person being a genius, every individual has some genius within them.

Additional Readings Jane E. Dutton (2003). Energize your workplace. Jossey-Bass. Marvin Ross Weisbord (1991). Productive workplaces: Organizing and managing for dignity, meaning, and community. NY: Jossey-Bass. Geoffrey Colvin (2008). Talent is overrated: What really separates world-class performers from everybody else. Portfolio Hardcover. Adam Grant (2014). Give and take: Why helping others drives our success. Penguin Books. Toy Hsieh (2013). Delivering happiness: A path to profits, passion, and purpose. Grand Central Publishing. Paul E. Spector (1997). Job satisfaction: Application, assessment, causes, and consequences. Thousand Oaks, CA: Sage Publications. Michael C. Hyter, Judith L. Turnock, and James M. Kilts (2006). The power of inclusion: unlock the potential and productivity of your workforce. Hoboken, NJ: John Wiley and Sons. © Bauer & Erdogan 2016, published by Flat World Knowledge 

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Chapter 5

Theories of Motivation OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. After reviewing the need-based motivation theories in this chapter, use the theory to explain how Zappos motivates employees. 2. Why do you think Zappos’ approach is not utilized more often? In other words, what are the challenges to these techniques? 3. Why do you think Zappos offers a $3,000 incentive to quit? 4. Would you be motivated to work at Zappos? Why or why not? 5. Is happiness synonymous with motivation? When does happiness translate into motivated employees?

I. Discussion Questions A. NEED-BASED THEORIES OF MOTIVATION 1. Many managers assume that if an employee is not performing well, the reason must be a lack of motivation. Do you think this reasoning is accurate? What is the problem with the assumption? While at times a lack of motivation may be the cause of a poor performing employee, this is not always the case. Assuming this places all of the fault on the employee, when their lack of motivation could be due to issues within the organization they work for. If the manager assumes it is all on the employee, he misses the chance to fix aspects of his company that will enhance production and employee satisfaction. 2. Review Maslow’s hierarchy of needs. Do you agree with the particular ranking of employee needs? Employee responses to this question will vary. At this point, you may ask them whether they know people who would put friendship or relationships before safety, or others who would view esteem needs as more important than social needs. You could also discuss cross-cultural differences and how they may influence the ranking of the hierarchy. Finally, you may discuss the situation of the “starving artist.” Students should have no difficulty envisioning exceptions to the hierarchy. At this point, it helps to highlight that despite potential differences in the ranking across individuals, the theory is useful because it provides an elegant categorization of employee needs. 3. How can an organization satisfy employee needs that are included in Maslow’s hierarchy? For each level in Maslow’s hierarchy, there are rewards organizations may provide. To satisfy physiological needs, organizations rely on decent pay levels. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 50 Instructor Manual Also, if employees are starving, they will not be able to concentrate on work, so providing food in company cafeterias would be useful. For safety needs, ensuring a safe work environment, generous benefits, and reasonable levels of job security could be useful. For social needs, creating a work environment where employees can interact with each other and build harmonious relationships would be helpful. Esteem needs can be satisfied using rewards, awards, promotions and other indicators of advancement. Finally, self-actualization needs would be addressed using learning opportunities, training and development programs, as well as tuition assistance programs allowing employees to pursue advanced skills. 4. Which motivation theory have you found to be most useful in explaining why people behave in a certain way? Why? Student answers to this question will vary. You may also want to highlight whether the theories students find most useful are the strongest theories from a research perspective. 5. Review the hygiene and motivators in the two-factor theory of motivation. Do you agree with the distinction between hygiene factors and motivators? Are there any hygiene factors that you would consider to be motivators? Several factors that are regarded as hygiene factors may also be motivators. For example, pay is viewed as a hygiene factor, but it is also an indicator of one’s advancement in the company or recognition by the company, making pay a potential moderator. Similarly, supervision is regarded as a hygiene factor, but a good supervisor who recognizes employees, and provides them with advancement and growth opportunities may motivate employees. 6. A friend of yours demonstrates the traits of achievement motivation: This person is competitive, requires frequent and immediate feedback, and enjoys accomplishing things and doing things better than she did before. She has recently been promoted to a managerial position and seeks your advice. What would you tell her? It is important to highlight that while the chapter discusses the limitations of need for achievement (and need for affiliation) for management positions, this does not mean that they would be ineffective managers. They simply need to be aware that certain behaviors that they may demonstrate could reduce their effectiveness. The key is increased personal awareness. High need for achievement in the form of competitiveness, requiring immediate feedback, and the desire to do things alone so that they are under one’s control may be useful in lower level positions, but potentially harmful in upper level management positions. Understanding that management means doing things through others, and that being an effective manager necessitates coaching, leading other people, and helping them be successful is an important transition all management candidates will need to make.

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B. PROCESS-BASED THEORIES 1. Your manager tells you that the best way of ensuring fairness in reward distribution is to keep the pay a secret. How would you respond to this assertion? There are at least two problems with pay secrecy. First, it does not always work. People often find out each other’s pay due to security problems in the organization’s HR system, employees sharing this information with their confidants, or some employees making the assumption that their pay is common knowledge. Second, when pay is secret, employees often assume that they must be underpaid. Regardless of pay is secret or not, the organization will need to review the pay scale and examine whether pay is correlated with the amount of inputs (such as skills and performance level) people are bringing to work. 2. When distributing bonuses or pay, how would you ensure perceptions of fairness? There are a couple of steps that may be useful. First, the organization should decide which factors should be compensated. Is it the performance level? Number of years of work experience? Abilities being used in the company? Pay should be commensurate with these inputs. Second, it is important to verify that the pay level is fair compared to how similar companies are paying similarly qualified positions. Ensuring that the performance evaluation system being used by the company is fair is a key part of ensuring pay fairness. Finally, it is important to recognize that guaranteeing pay fairness is an impossible task. Individual perceptions may vary and employees may differ in their beliefs regarding what should be rewarded. The organization should ensure that the basis for pay is justifiable to employees. 3. What are the differences between procedural, interactional, and distributive justice? List ways in which you could increase each of these justice perceptions. Procedural justice is the fairness of decision-making procedures being used by the company. Employees tend to view procedural justice as higher if they are given voice in decision making, if they can participate in decisions affecting them, if the organization shares information with employees, and if organizational decisions are made based on data in a rational manner. Interactional justice is the fairness of interpersonal treatment one receives. Showing sensitivity to employees’ feelings, and being kind and respectful, would increase interactional justice perceptions. Distributive justice is the fairness of the rewards employees receive. Ensuring that reward distribution (such as pay, scheduling, performance appraisals) is consistent with one’s contribution to the organization would increase distributive justice perceptions. 4. Using examples, explain the concepts of expectancy, instrumentality, and valence.

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Organizational Behavior 2.0 – Bauer and Erdogan 52 Instructor Manual Expectancy: If I try, can I sell two cards a day? If employees feel that selling two cards is too difficult and there is not much they can do to influence whether customers apply for the store credit cards or not, expectancy is low and as a result motivation to try will be low. Instrumentality: If I sell two cards a day, is it guaranteed that I am going to get a reward? In this example, instrumentality is high because the Starbucks gift card is guaranteed. Valence: Do I find the $5 Starbucks card desirable? If employees think that this is a valuable reward, they are more likely to be motivated. 5. Some practitioners and researchers consider OB Mod as unethical because it may be viewed as a way of manipulation. What would be your reaction to such a criticism? Is management manipulation? By the same token, every incentive system devised in an organization can be viewed as manipulation! The goal of management is to ensure that employee actions are consistent with organizational goals. Bringing employee interests into alignment with organizational interests is how management operates. It would likely be incorrect to view OB mod as manipulation as it does not involve cheating or deceiving employees, or forcing them to behave in ways that they are not interested in behaving. Instead, its purpose is to increase employee motivation to behave in ways that help the organization be successful.

C. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. What is the connection between a company’s reward system and the level of ethical behaviors? Certain reward systems can potentially increase the tendency of unethical behaviors. Specifically, in organizations that use goal setting, employees who come close to goals without reaching targets may feel motivated to cheat in order to get their bonus. For example, a store manager who comes very close to sales targets may ask friends and family members to buy merchandise, returning the items the next day and allowing the manager to collect his bonus. Moreover, whether ethical behaviors are rewarded or punished will determine the level of ethics prevalent in the organization. If the organization rewards unethical players by promoting them and punishes ethical people by passing over them for promotions, the organization will develop an unethical climate. 2. Which of the motivation theories do you think would be more applicable to many different cultures? Student answers to this question will vary. While the motivation theories discussed in this chapter are likely to generalize to different cultures, individual portions of the theories may need to be modified. For example, factors viewed as hygiene factors in the United States and Western cultures, such as a clean and safe work environment, may be viewed as motivators in cultures where these factors are missing from a large percentage of organizations. Similarly, while the concept of © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 53 Instructor Manual fairness seems to be important around the world, what is viewed as fair or unfair is a culturally determined topic.

D. MOTIVATION IN ACTION: THE CASE OF TRADER JOE’S 1. How much of Trader Joe’s success can be attributed to the fact that most larger chain grocery stores do not sell the type of food available at Trader Joe’s? Trader Joe’s advertises its organic healthy food that is not present in other chain stores. Along with having healthy food, the food is affordable -- a big factor in how people grocery shop. 2. Is pay enough of an incentive to continue at a job you do not enjoy? In the short term, yes, pay is enough incentive. For long-term employment satisfaction and good efficient production, it is important to have benefits for your job including feelings of accomplishment, value and happiness. 3. Trader Joe’s promotes entirely from within the organization. This means that if you are a good, dedicated worker, you can rise up within the company. Do you feel employees would be as dedicated to the company if this were not the case? Would high pay be enough to keep employees? What if the company only promoted from within but pay was not as good? Student’s answers will vary. Some may say that high pay is enough of an incentive to keep an employee in the company; others may argue that promotions in company give employees a sense of value and importance, which may make them more likely to stay in the organization. 4. A fact mentioned in the case is that Trader Joe's is also a supermarket that emphasizes cost minimization and low prices. How can an organization emphasize low prices while also investing in its employees? Are these contradictory strategies? Why or why not? The ability to maintain both employee and consumer happiness while making a profit is the key to running a successful company. While it may same problematic to emphasize both low prices and investing in employees, in the long term it is beneficial. Keeping employees happy will reduce the need to hire and train new employee, which costs a lot more money for the company. Keeping low prices will keep consumers happy and make them more likely to visit frequently.

II. End of Chapter Materials A. ETHICAL DILEMMA Companies are interested in motivating employees: Work hard, be productive, behave ethically—and stay healthy. Health care costs are rising and employers are finding that unhealthy habits such as smoking or being overweight are costing companies big bucks.

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Organizational Behavior 2.0 – Bauer and Erdogan 54 Instructor Manual Your company is concerned about the rising healthcare costs and decides to motivate employees to adopt healthy habits. Therefore, employees are given a year to quit smoking. If they do not quit by then, they are going to lose their jobs. New employees will be given nicotine tests and the company will avoid hiring new smokers in the future. The company also wants to encourage employees to stay healthy. For this purpose, employees will get cash incentives for weight loss. If they do not meet the weight, cholesterol, and blood pressure standards to be issued by the company, they will be charged extra fees for health insurance. Is this plan ethical? Why or why not? Can you think of alternative ways in which you can motivate employees to adopt healthy habits?

B. INDIVIDUAL EXERCISE Your company provides diversity-training programs to ensure that employees realize the importance of working with a diverse workforce, are aware of the equal employment opportunity legislation, and are capable of addressing the challenges of working in a multicultural workforce. Participation in these programs is mandatory, and employees are required to take the training as many times as needed until they pass. The training program lasts one day and is usually conducted in a nice hotel outside of the workplace. Employees are paid for the time they spend in the training program. You realize that employees are not really motivated to perform well in this program. During the training, they put in the minimum level of effort, and most participants fail the exam given at the conclusion of the training program and then have to retake the training. Using expectancy and reinforcement theories, explain why they may not be motivated to perform well in the training program. Then, suggest improvements in the program so that employees are motivated to understand the material, pass the exam, and apply the material in the workplace.

C. GROUP EXERCISE A Reward Allocation Decision You are in charge of allocating a $12,000 bonus to a team that has recently met an important deadline. The team was in charge of designing a Web-based product for a client. The project lasted a year. There were five people in the team. Your job is to determine each person’s share from the bonus. Devin: Project manager. He was instrumental in securing the client, coordinating everyone’s effort, and managing relationships with the client. He put in a lot of extra hours for this project. His annual salary is $80,000. He is independently wealthy, drives an expensive car and does not have any debt. He has worked for the company for 5 years and worked for the project from the beginning.

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Organizational Behavior 2.0 – Bauer and Erdogan 55 Instructor Manual Alice: Technical lead. She oversaw the technical aspects of the project. She resolved many important technical issues. During the project, while some members worked extra hours, she refused to stay at the office outside of regular hours. However, she was productive during regular work hours and she was accessible via email in the evenings. Her salary is $50,000. She is a single mother and has a lot of debt. She has worked for the company for four years and worked for the project for eight months. Erin: Graphic Designer. She was in charge of the creative aspects of the project. She experimented with many looks and while doing that she slowed down the entire team. Brice and Carrie were mad at her due to the many mistakes she made during the project, but the look and feel of the project eventually appealed to the client, which resulted in repeat business. Her salary is $30,000. She is single, and lives to party. She has worked for the company for 2 years and worked for this project since the beginning. Brice: Tester. He was in charge of finding the bugs in the project and ensuring that it worked. He found many bugs, but he was not very aggressive in his testing. He misunderstood many things, and many of the bugs he found were not really bugs but his misuse of the system. He had a negative attitude toward the whole project, acted very pessimistically regarding the likelihood of success, and demoralized the team. His salary is $40,000. He has accumulated a large credit card debt. He has worked for the company for three years and worked for the project in the last six months. Carrie: Web developer. She was in charge of writing the code. She was frustrated when Erin slowed down the entire project because of her experimentation. Carrie was primarily responsible for meeting the project deadline because she put in a lot of extra work hours. Her salary is $50,000. Her mother has ongoing health issues, and Carrie needs money to help her. She worked for the company for the past year and was in this project for six months.

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA This plan is riddled with issues, many of which involve violations of the law. While the assumptions made about healthy living and health insurance costs are technically correct, the way in which the company in attempting to go about implementing policies is simply wrong. Smoking, as unhealthy as it may be, is legal in the United States. Aside from the addictive properties of nicotine that make it incredibly difficult to quit smoking, forcing employees to quit or be fired could be illegal. Specifically, some states have laws prohibiting organizations from firing employees because of their smoker status. (Organizations are allowed to have a policy of no smoking, but they may not be able to hold a person’s smoker status as a reason to discriminate against them). Additionally, requiring employees © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 56 Instructor Manual to meet particular weight, cholesterol, or blood pressure standards or face additional fees may be illegal, may be viewed as unethical from a business perspective, and unfair on a personal level. If an organization truly wants to motivate employees to be healthy, it must take careful consideration in how it implements policies. For example, it may seem like a good idea to have some kind of bonus issued to employees who ride their bikes or take public transportation to get to work. However, the policy may favor those who happen to live closer to work. While it may be easy for someone who lives a mile from work to ride a bike, walk or take public transit, someone living twenty miles away might not have as many options for traveling to and from work. Additionally, an employee with no children might have more time to go to the gym or do other forms of exercise that could improve health. It is important for the organization to be sure to implement policies that are fair for all employees. Perhaps the company could encourage healthy eating habits through education and healthy onsite food offerings. If the organization is large enough, it may be able to have a gym onsite and can encourage employees to exercise during work hours. The best plan may be to assist employees in developing individualized plans for improving health, and then encourage or reward them for sticking to the plan.

B. INDIVIDUAL EXERCISE For this example, it seems like employees are actually rewarded for poor performance. Employees get to spend the day at a nice hotel, are compensated for their time, and have no consequences for poor performance. In fact, poor performance earns individuals another paid day at the nice hotel. Instead of having an offsite, daylong seminar, it may be more beneficial to have several shorter, onsite trainings. It might also be beneficial to tie diversity-training direction to the work environment with specific examples. Generic diversity education is good, but something that might personally relate to employees will likely be absorbed better. Continuing education is also a good idea so employees do not forget concepts they may have already learned.

C. GROUP EXERCISE There are several methods that might be considered for distributing the bonus. The easiest thing to do might be to divide the bonus evenly, with each team member receiving $2,000. Based on the descriptions of each team member, however, this may not be fair. Another method may involve dividing the bonus based on employee salary. Generally this would not mean giving a larger bonus to someone with less money, but instead it would be the opposite. This method also assumes that the employee pay is proportional to the job they are performing. For example, Devin, the project manager, makes $80,000. Since his salary is the largest, he would get the largest bonus. The split might look something like this: Devin = $3,200 Alice = $2,000 Erin = $1,200 © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 57 Instructor Manual Brice = $1,600 Carrie = $2,000 Of course, we are provided with other information. Some members of the team were not involved with the project from the beginning, and it seems that certain members may have slowed the group process. There is also information regarding team member’s personal financial status. Because the bonus is based on work output and not on home life, it is not fair to incorporate factors outside of work into bonus pay. While this may seem harsh given the nature of some of the group member’s personal information, it ultimately becomes a legal issue. However, group members could potentially fill out a survey rating each group member within on individual contribution, effort, quality of work, and how the bonus should be distributed. If all members come to the same conclusion on the distribution of the bonus and the contributed workload, the bonus could be divided based on these surveys. Another alternative would be to spend the money on a big team outing as opposed to distributing it to individual members. Taking employees on a retreat for the weekend may build team camaraderie and reward each member’s unique contributions to the team without necessarily ranking member contributions. The truth of the matter is that each member is responsible for the ultimate success of the team, despite variation in the nature of his or her contributions.

IV. Bonus Material Motivation theory exercise created by Brett Guidry Which motivation theories might help to explain the following situations?      

An employee has just become a parent and is taking a job with another company that pays more and offers better health benefits. An employee takes a job offer with a major corporation despite low pay and long hours. An individual pursues a career in nursing after a close relative dies of cancer. An accountant with ten years’ experience leaves a major accounting firm to acquire an advanced degree. A sales representative passes on a promotion offer. An employee transfers from a major oil company to work for a small, renewable energy organization.

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V. Relevant TED Talks for bringing course concepts to life A. Title: The optimism bias by Tali Sharot https://www.ted.com/talks/tali_sharot_the_optimism_bias Synopsis: Tali talks about human tendency to be optimistic. While this in many ways proves very effective, it can also be dangerous, especially in the case of expectancy, which may lead to vast disappointment. B. Title: The puzzle of motivation by Daniel Pink http://www.ted.com/talks/dan_pink_on_motivation Synopsis: Daniel questions the effectiveness of rewards, claiming that they can narrow our focus and restricts us from thinking of possible solutions that may not be directly in front of us. Additional Readings Edward L. Deci and Richard Flaste (1996). Why we do what we do: Understanding self-motivation. NY: Penguin. Gary P. Latham (2006). Work motivation: History, theory, research, and practice. Thousand Oaks, CA: Sage Publications. Len Lewis (2005). The Trader Joe's adventure: Turning a unique approach to business into a retail and cultural phenomenon. Kaplan Business. Daniel Pink (2011). Drive: The surprising truth about what motivates us. Riverhead Books. Kenneth W. Thomas (2002). Intrinsic motivation at work: Building energy and commitment. San Francisco, CA: Berrett-Koehler Publishers. Victor Vroom (1994). Work and motivation. NY: Jossey-Bass.

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Chapter 6

Designing a Motivating Work Environment OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. What are some potential problems with closely tying employee pay to company performance? 2. Nucor has one of the lowest turnover rates in the industry. How much of the organization’s employee retention is related to the otherwise low pay of the steel working industry? 3. What would Nucor’s strategy look like in a non-manufacturing environment (e.g., a bank)? 4. Would Nucor’s employee profit-sharing system work at a much larger company? At what point does a company become too large for profit sharing to make a difference in employee motivation? 5. Imagine that the steel industry is taking a major economic hit and Nucor’s profits are way down. Employees are beginning to feel the pinch of substantially reduced pay. What can Nucor do to keep its employees happy?

I. Discussion Questions A. MOTIVATING EMPLOYEES THROUGH JOB DESIGN 1. Is job rotation primarily suitable to lower level employees, or is it possible to use it at higher levels in the organization? In fact, many organizations use job rotation as part of their management training programs. As management candidates are rotated to different departments or different stores, they become familiar with all aspects of doing their future jobs, and establish a strong network of relationships which will come in handy in their future leadership roles. 2. What is the difference between job enlargement and job enrichment? Which of these approaches is more useful in dealing with the boredom and monotony of job specialization? Job enlargement is horizontally loading the job, or adding additional tasks. If the added tasks are interesting and challenging, they have the potential to reduce boredom and monotony. Job enrichment is vertically loading the job, or giving employees increased decision-making responsibility. Job enrichment typically increases the higher-level skills being utilized by the job, and therefore may make the job less routine.

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Organizational Behavior 2.0 – Bauer and Erdogan 60 Instructor Manual 3. Consider a job you held in the past. Analyze the job using the framework of the job characteristics model. Student answers will vary for this question. If students are lacking in job experience, you could ask them to review the job of an instructor, or another job familiar to all of them. 4. Does a job with a high motivating potential motivate all employees? Under which conditions is the model less successful in motivating employees? The job characteristics model applies more strongly to employees with a high growth-need strength. Not all employees in the workforce are trying to satisfy their esteem and self-actualization needs. Instead, the reason they are working may be to make friends, to ensure that they have a decent paycheck, or to support themselves while they go to school. In these situations, increasing the motivating potential of the job by increasing the five core job characteristics may not necessarily increase employee motivation, and may even backfire if employees prefer to have a simple job that does not demand too many skills. 5. How would you increase the empowerment levels of employees? Organizations may empower employees by giving them true decision-making authority. Some management styles and organizational cultures are better in increasing employee empowerment. Empowerment will not be successful if employees do not have the tools to make their decisions themselves. This means that empowered employees should be well trained on their jobs, they should have the abilities to perform their jobs effectively, and they should have sufficient information and resources to make effective decisions.

B. MOTIVATING EMPLOYEES THROUGH GOAL SETTING 1. Give an example of a SMART goal. Reducing the frequency of employee absences by five percent by the end of this quarter is an example of a SMART goal. 2. If a manager tells you to “sell as much as you can,” is this goal likely to be effective? Why or why not? This goal is not SMART because it is not specific, measurable, or time bound. It is not a useful goal because there is not a cutoff point that would communicate to the employee that he or she has been successful. Because the goal involves sales, it gives employees direction, but it is unlikely to provide a challenge or inspire them to think outside the box. 3. How would you ensure that employees are committed to the goals set for them? One way of increasing employee commitment to goal-setting is to set goals jointly with employees. Instead of dictating a specific goal level to lower level employees, managers may meet with employees, review prior performance, and set goals

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Organizational Behavior 2.0 – Bauer and Erdogan 61 Instructor Manual tailored to the employee’s skill level. When employees participate in the decisionmaking process, they are more likely to be committed to the decision. 4. A company is interested in increasing customer loyalty. Using the MBO approach, what would be the department- and individual-level goals supporting this organization-wide goal? In the MBO approach, goals should trickle down from upper level goals to lower level goals. The department level goal could be increasing the percentage of sales coming from repeat customers by ten percent. At the individual level, a similar goal would be created for each person. (For each sales associate, thirty percent of sales will come from existing clients.) 5. Discuss an experience you have had with goals. Explain how goal setting affected motivation and performance. Student answers to this question will vary. Asking them to describe a goal, and then analyzing why the goal-setting worked or did not work using expectancy theory may be a useful exercise.

C. MOTIVATING EMPLOYEES THROUGH PERFORMANCE APPRAISALS 1. What are the disadvantages of using only supervisors as raters? What are the disadvantages of using peers, subordinates, and customers as raters? Relying only on supervisor ratings may be problematic, particularly when the manager and employee do not have a long history of working together and the manager does not have many opportunities to observe the employee’s behavior (such as a job where the manager works in the office while employees interact with customers). For this reason, using multiple raters may be a good idea. However, each rating source introduces additional limitations to the appraisal system. Peer feedback may be useful for developmental purposes, but if peers are also competitors or if peers are close friends, they may be biased. Subordinate feedback may be useful for developing leadership abilities, but ensuring the confidentiality of results will be essential to obtain useful feedback. Customers may provide useful information but they may volunteer negative feedback more than positive feedback. For this reason, the organization will need to take steps encouraging customers to communicate feedback on a regular basis. 2. Do you believe that self-appraisals are valid? Why would it be helpful to add self-appraisals to the appraisal process? Can you think of any downsides to using them? Self-appraisals may in fact be very useful conversation starters. While selfappraisals are not used to distribute rewards or make decisions about the employee’s performance, starting a performance appraisal meeting by reviewing the self-appraisal may show the manager what the employee has accomplished throughout the term and what sources of additional support the manager may

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Organizational Behavior 2.0 – Bauer and Erdogan 62 Instructor Manual provide. Self-appraisals are useful for making an appraisal interview a dialogue about performance (as opposed to a monologue). 3. Why do some managers intentionally give an employee a higher rating than deserved? What are the disadvantages of biased ratings? How could this tendency be prevented? Many performance appraisals are in fact lenient. This may be because a) the manager is afraid of the employee’s reactions to a low score and is trying to avoid confrontation, b) the manager is trying to increase the loyalty of the employee by giving him or her a high score, c) the manager is trying to avoid the perception that he or she as a manager is responsible for a low-performing employee, or d) the manager is trying to make sure that the employee gets a full bonus. When managers give lenient ratings, the performance problems are not resolved, and rewards distributed based on these ratings will be unfair. Furthermore, ratings become less useful as a tool in promotions or pay increases. Organizations may train managers in giving negative feedback, and make them accountable for their ratings. Using rankings as opposed to ratings may also deal with this tendency. 4. Some recommend that performance appraisals should be abolished altogether. What do you think about this approach? What are the downsides of eliminating appraisals altogether? Despite all their problems, appraisals serve important purposes. In many organizations, having performance appraisals forces the manager and the employee to have a structured conversation about ways to improve performance. It would certainly be better if managers and employees have these conversations on a regular basis without an organizational mandate, but the reality is in many organizations this does not happen without a performance appraisal. Second, if they are based on objective criteria, appraisals are useful for tying pay to performance. Motivation theories suggest that tying pay to performance is important for increasing motivation and performance levels. Finally, particularly in the litigious climate in the United States, performance appraisals serve important legal purposes, documenting high as well as poor performance. 6. If your objective is to minimize the effects of rater biases, what type of appraisal system would you design? To minimize rater biases, performance criteria need to be objective when possible. Criteria such as sales figures, number of training programs completed, number of clients contacted within the quarter are less likely to be subject to rater biases.

D. MOTIVATING EMPLOYEES THROUGH PERFORMANCE INCENTIVES 1. Have you ever been rewarded under any of the incentive systems described in this chapter? What was your experience with them? Student answers to this question will vary.

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Organizational Behavior 2.0 – Bauer and Erdogan 63 Instructor Manual 2. What are the advantages and disadvantages of bonuses compared to merit pay? Which one would you use if you were a manager at a company? The main advantage of a bonus is that it is a one-time reward as opposed to the permanent increase in base pay when the company uses merit pay. For this reason, it may be more cost effective to use bonuses. Second, in many companies merit pay comes to replace cost of living increases in pay. In other words, employees may develop a sense of entitlement to a merit pay raise. For this reason, bonuses may be more flexible and highlight that pay is directly related to performance. 3. What are the advantages of using awards as opposed to cash as an incentive? Some students may argue that cash is the best incentive because employees may buy whatever they want or need using cash. Yet, in some organizations awards may be very effective. Cash often goes to buy life’s necessities, while awards may give employees something they appreciate but they would not necessarily buy for themselves, such as a fancy vacation, or a nice dinner at a popular restaurant. These types of awards also have the advantage of creating a positive image for the company during and after the experience. When the organization sends employees to a fancy vacation for their accomplishments, employees may feel proud, share this experience with their friends and family members, and feel that they are being recognized. Due to the symbolic value attached to such awards, it would be erroneous to dismiss them as being less effective than cash. 4. How effective are stock options in motivating employees? Why do companies offer them? Their effectiveness depends on how the market is doing in general, whether employees can sell company stock when they want to or whether they are required to hold on to them for a period of time, and the overall risk averseness of the employee. For high-level management positions, the rationale behind stock options is to encourage employees to become owners of company stock, thus aligning their interests with shareholder interests. 5. Which of the incentive systems in this section do the best job of tying pay to individual performance? Which ones do the worst job? Perhaps the candidate for the best incentive system (creating the strongest tie between pay and performance) is piece-rate system because pay and performance are directly linked. The weakest link exists for organization level systems such as profit sharing or stock options.

E. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. Do you have any experience with goal setting leading to unethical behaviors? Student answers to this question will vary. 2. Many observers and employees are concerned about the spread between CEO pay and average employee pay. Is it ethical for CEOs to be paid so © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 64 Instructor Manual much more than other employees? Under which conditions would it be unethical? This question may spark lively discussion. Some points of discussion may include a) the gap in the United States being the widest in the world, b) fairness of paying CEOs millions of dollars in failed companies, c) whether the current CEO pay structure does a good job of aligning CEO interests with organizational interests. 3. How would you determine whether a certain incentive scheme or a type of performance appraisal could be transferred to a different culture? Here, examining benchmarks within a society would be useful. Instead of making culture-level assumptions, the organization may discuss with high-level local employees the potential reception for a program. Pilot testing the program and gathering feedback from company employees in the host culture may be useful. As much as the national culture, the corporate culture of the host company branch will be relevant in answering this question. Multinational organizations may have organizational cultures that transcend national cultures, which may influence the acceptance levels for different rewards practices.

F. A DIFFERENT TAKE TO ENGAGING EMPLOYEES: THE CASE OF NETFLIX 1. How does Netflix motivate employees? Which of the approaches discussed in this chapter (job design, incentives, and performance appraisals) are being utilized to motivate Netflix employees? Netflix treats its employees like adults - they have the option to leave or stay, and if they stay it is because they feel motivated, challenged and engaged and not because they have to. Netflix puts emphasis on employees who are able to selfmanage and who have good work ethic, and Netflix is willing to pay top $ for ‘topnotch talent’. Netflix does not use performance appraisal systems or external incentives, but instead they receive satisfaction from work, good performance and informal conversations with managers as a part of the daily workflow. 2. What do you think about the absence of policies such as vacations, travel, or expense reimbursement? What are the downsides of not having such policies? What is Netflix gaining as a result of not having them? Netflix gives its employees the ability to do as they please, while telling them to act in the company’s best interest. This proves effective in the sense that it makes the employees feel as though they are in control of their employment and have a good relationship with the company and manager. This seems to work because the company is very selective on who they hire, however in the long run it could negatively affect production, but it is unsure how significant of an effect it would have.   3. Why does Netflix avoid using financial incentives other than stocks? Would instituting bonuses and other incentives increase motivation? Why or why not? Former chief of talent officer of Netflix Patty McCord stated that “satisfaction comes from work, not from the cookies”. Using external incentives and appraisals would be “too infrequent to be useful”. They expect consistent high performance © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 65 Instructor Manual from its employees. Adding financial incentives such as bonuses could in fact lower intrinsic motivation. 4. What do you think about companies eliminating performance appraisals? What makes the absence of performance appraisals work? While performance appraisals would appear to be effective across the map, they are not as beneficial in certain cultures.  In collectivist cultures as well as cultures with high power distance, these methods prove to be ineffective. Performance appraisal requires openness and social equality in the workforce, which in collectivist cultures would prove inefficient because employees fear that negative appraisal will damage interpersonal relationships. It would prove useless in an authoritarian culture due to the value of social equality in the workplace.

II. End of Chapter Materials A. ETHICAL DILEMMA James is about to conduct a performance appraisal for Maria. Maria has exhibited some performance problems in the past 6 months. She has been coming in late and early, and she missed two important deadlines. At the same time, she is a very likeable and nice person who gets along well with others in the office. James also knows that Maria has a significant amount of debt and getting a bonus after this appraisal would really help her. James does not want to jeopardize his relationship with her and he does not want to prevent her from getting the bonus. Therefore, he is considering giving her a “good” rating in the appraisal. What would be your advice to James regarding this situation?

B. INDIVIDUAL EXERCISE   

A call center is using the metric of average time per call when rewarding employees. In order to keep their average time low, employees are hanging up on customers when they think that the call will take too long to answer. In a department store, salespeople are rewarded based on their sales volume. The problem is, they are giving substantial discounts and pressuring customers to make unnecessary purchases. All employees at a factory are receiving a large bonus if there are no reported injuries for six months. As a result, some employees are hiding their injuries so that they do not cause others to lose their bonus.

What are the reasons for the negative consequences of these bonus schemes? Modify these schemes to solve the problems.

C. GROUP EXERCISE Performance Appraisal Role Play This role play will involve three students. One student will be the supervisor and the second will be the subordinate. The supervisor and the subordinate will conduct a formal performance appraisal interview. The third role is of an observer © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 66 Instructor Manual who should provide feedback to both parties regarding how they could have improved their effectiveness. Be sure to read only the role sheet assigned to you by your professor.

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA It may seem fair to give Maria a good performance appraisal because of her personal situation, despite her poor performance. However, these types of decisions tend to backfire. A reviewer should never allow a personal relationship to contaminate an employee evaluation. If other employees were to find out about the dishonest appraisal, or that she received a bonus despite her poor performance, they would lose faith in the review process as well as losing their respect for the manager. This loss of faith could in turn cause employees to put forth less effort at work because they do not feel that effort leads to reward. Additionally, James might know about Maria’s financial issues but not be aware of aspects of other employees’ personal lives. Giving Maria a good rating so she gets a bonus wouldn’t be fair to other employees who may need a bonus and have been performing better. Finally, an important purpose of a performance appraisal is to document the level of performance, and giving her a good rating despite her poor performance defeats the purpose of the appraisal. Maria’s behavior and poor performance has only been occurring for the past six months. We can assume that prior to this time, Maria’s performance was better. A logical conclusion may be that something has occurred within the last six months that is affecting Maria’s work life. It may be a good idea to bring the performance issues to Maria’s attention. A discussion may reveal that personal obligations have arisen causing a conflict with Maria’s work schedule. Adjusting her work hours may help increase her performance. At the same time, Maria’s behavior may be representative of someone who is about to leave the organization.

B. INDIVIDUAL EXERCISE 



Hanging up on customers to keep call times low is never a good idea. Customer service should be based on quality. Instead of relying on average time per call, perhaps rating employees on the quality of their customer interaction. Rewarding employees either on sales volume or dollar amount or both can encourage salespeople to pressure customers into unnecessary purchases. This is the reason that many stores have done away with commissions or sales-based bonuses. An alternative method may be rewarding employees

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

on customer satisfaction. In other words, an employee providing customers with sound advice and quality service would earn them financial rewards. Injuries hurt employees as well as products. There should never be a policy that would cause a suppression of injury reporting. Whenever someone gets injured on the job, the organization should objectively look at what happened and what can be done to prevent a similar incident in the future. Setting individual bonuses as opposed to allowing one person’s injury to affect other employee bonuses would remove the social pressure to withhold information. Or, instead of zero accidents, employees may get bonuses for reducing the number of accidents. If the goal is more achievable and if there are intermediate bonuses for different performance levels, reporting may not be affected.

C. GROUP EXERCISE The employee and manager role sheets are included below. Be sure that students follow their roles. Follow-up questions may include the following: 1. Was the appraisal interview successful in recognizing strengths and limitations of the employee? 2. Does the employee feel that the interview and the decision were fair? 3. Was there a way in which the interview could have been handled better? 4. Who did most of the talking? 5. Did the manager ask the employee for a self-evaluation? What would be the advantage of this technique if it were used?

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Organizational Behavior 2.0 – Bauer and Erdogan 68 Instructor Manual Employee Role Sheet You are an account manager at a mid-sized company. Your company completes small marketing projects to several area companies. Your job is to coordinate the consultants and analysts who are assigned to each project, and ensure that each project is adequately staffed. You are the primary contact person with clients. You feel that you have been very successful at this position. In your opinion, there are two important performance metrics in this job and you have exceeded both. First, you ensured that each project remained within budget. Second, your clients expressed very high satisfaction with your work according to a survey of twentyfive clients. The reason the projects remained within budget and the clients are happy is that you made sure each consultant and analyst pulled his/her weight and made the necessary sacrifices, working long hours and even weekends when necessary. Marketing consulting is a competitive business and treating customers as king is necessary to retain them and get their repeat business. Through your hard work, you were even able to bring in five new clients through referrals. You feel that you deserve a pay raise. Moreover, you feel that you should be promoted to project management.

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Organizational Behavior 2.0 – Bauer and Erdogan 69 Instructor Manual Manager Role Sheet You are a director at a mid-sized company. Your company completes small marketing projects to several area companies. Right now, you are about to conduct a performance appraisal for the account manager. This person’s job is to coordinate the consultants and analysts who are assigned to each project, and ensure that each project is adequately staffed. This person is the main contact with clients and is also in direct interaction with analysts and consultants your company employs. This person basically holds a service role. The objective is to ensure high levels of satisfaction of clients and ensure that team members remain effective and motivated. You feel that the account manager has been successful in client management. The account manager ensured that projects stayed within budget, and client satisfaction ratings are high. However, there is a serious problem with this person’s performance. Specifically, while satisfying clients, this person seriously affected the morale of internal team members. In order to meet deadlines, this person scheduled a lot of overtime and weekend work for the fifteen team members working in his projects. You heard two of them talking about quitting. These employees are highly skilled and experienced and extremely difficult to replace. Recently, this person scheduled a meeting between a team member and a client at nine in the morning. The problem is that the meeting site was four hours away and the team member had to leave home around five in the morning to make it to the meeting. You feel that by demoralizing the team, this person has not demonstrated effective leadership and therefore you do not think that this person is ready for a promotion. The Performance Appraisal Form to be used in your company is simple: Rate the effectiveness of the manager in terms of the following criteria 1 = unsatisfactory 2 = satisfactory 3 = excellent 1. Client management ___________________ 2. Budget management __________________ 3. Developing new businesses_____________ 4. Leadership__________________________

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IV. Bonus Material From the Best Sellers list… created by Talya Bauer If you ever find yourself in Seattle, Washington, make it a point to go to see fish literally flying at Pike Place Fish Market. This company transformed a “ho-hum” job of selling fish to a world-famous enterprise by treating their employees like partners and making sure their customers had fun—even when buying fish. It all began by thinking of business in a new way. Fish! Tales by Stephen Lundin, Harry Paul, John Christensen, and Philip Strand was published in 2002. The book deals with ways to motivate employees and create positive work environments—all ideas put to work at Pike Place Fish Market where instead of handing fish over from the icebox, employees toss them to one another. The book describes their four-point philosophy to get people fully engaged in their work and personal lives. The first is to play. “Play is not just an activity; it's a state of mind that brings new energy and sparks creativity...” While throwing fish around a market may not be your idea of fun, it certainly looks like fun to the thousands of visitors who watch them each year. The second is make someone’s day. They encourage readers to engage fellow employees and customers and to make each other’s days better. The third is to be present. This philosophy is to make sure that you are fully available and aware during your conversations with people. And finally, choose your attitude. Each day you can choose how to act. Being positive will have a positive effect on others. According to the Pike Place Fish Market, “We are the Seattle fresh fish company that everyone talks about. Besides offering only the best quality, freshest seafood, our dedication to having fun and creating excitement while we work makes us ‘world famous.’” Learn more about Pike Place Fish Market and their philosophy at http://www.pikeplacefish.com. In addition, check out this article from FastCompany magazine: http://www.fastcompany.com/magazine/39/rftf.html Making OB Connections… Fish! Tales draws on basic organizational behavior concepts such as motivation, job attitudes, communication, teamwork, and creativity in the workplace. In terms of motivation, Pike Place Fish Market is exhibiting a Theory Y management style, maximizing factors like achievement and recognition, which are satisfiers, meeting employees’ needs for achievement and affiliation, and providing employees with feedback and rewards for organizational performance. Reinforcement theory is also at work here. When the employees get positive feedback from customers, it further motivates them to play, make someone’s day, and have a positive attitude.

EXERCISE: WHICH WOULD YOU RATHER? People vary in their preferences. Something that one person might find motivating might be a burden to someone else. Divide the class into small groups and have © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 71 Instructor Manual each person answer the following questions. After group members compare answers, have them discuss the reasons behind their preferences and aspects that make the alternatives undesirable. 1. 2. 3. 4. 5.

More responsibility or more pay Having someone tell you what to do or tell others what to do Creating a plan or implementing it Working in a group or working alone Working fewer hours but having a rigid schedule, or working normal hours but being able to make your own schedule 6. Getting a large bonus or extra paid vacation 7. Working for a major, international corporation or a small nonprofit organization 8. Working in an office or working out in the field 9. A job that allows you to work from home or a job that requires a lot of travel 10. A job where you usually work in teams or a job that requires you to work alone most of the time 11. Interacting with customers or interacting with other employees 12. Having a job that requires physical exertion or a job that requires mental exertion 13. Working during the day or working in the evening 14. Being paid based on performance or having a regular salary Source: Brett Guidry, Portland State University. Used by permission of the author.

V. Relevant TED Talks for bringing course concepts to life A. Title: What makes us feel good about our work? by Dan Ariely http://www.ted.com/talks/dan_ariely_what_makes_us_feel_good_about_our_w ork Synopsis: Dan speaks about what motivates employees in the workplace. Not only is it money and joy, but also the idea that they are constantly improving, transforming, creating progress. These factors give employees a sense of purpose and importance, allowing them to perform their best work. So how can employers give their employees this environment where they can excel? B. Title: Embrace the near win by Sarah Lewis https://www.ted.com/talks/sarah_lewis_embrace_the_near_win Synopsis: Sarah talks about how are “near wins” are what motivates us the most, how being so close to success drives us to keep trying to achieve mastery.

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Additional Readings Albert Bandura (1997). Self-Efficacy: The exercise of control. Worth Publishers. Lance A. Berger and Dorothy R. Berger (2008). The compensation handbook. NY: McGraw-Hill. Anne Conzemius and Jan O’Neill (2005). The power of SMART goals: Using goals to improve student learning. Bloomington, IN: Solution Tree. Ron Friedman (2014). The Best Place to Work: The art and science of creating an extraordinary workplace. Perigee Books. Stephen C. Lundin, Harry Paul, John Christensen, and Ken Blanchard (2000). Fish: A remarkable way to boost morale and improve results. NY: Hyperion. Sharon K. Parker and Toby D. Wall (1998). Job and work design: Organizing work to promote well-being and effectiveness. Thousand Oaks, CA: Sage Publications.

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Chapter 7

Managing Stress and Emotions OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. What do you think the long-term benefits will be for Camden Property Trust and its employees as a result of the way it handled an economic downturn? 2. What other suggestions do you have for Camden in creating business opportunities during a period of economic volatility? 3. How does a company as large as Camden effectively and authentically communicate to its employees? 4. Does Camden increase or decrease its credibility to staff when the CEO dresses up as Captain Kirk? Why do you believe this? 5. What steps has Camden taken to help employees manage their stress levels?

I. Discussion Questions A. WHAT IS STRESS? 1. Research shows that entrepreneurs who are leading new enterprises experience low levels of stress. Why would this be true? Explain using stress models. The Demand-Control model of stress is a model that explains why entrepreneurs leading new enterprises experience low levels of stress. The demand for their product is low, and they are able to greatly control the company (because it is small and growing). 2. Stress can be in the form of a challenge or hindrance type of stress. Think about stressors you experienced in the past six months. Were these challenge or hindrance stress? Does this classification depend on the person? Student’s answers will vary. Some may bring up factors of stress in school as well as in employment, which would constitute challenge stressors (actions that cause stress but promote individual growth). Others may bring up personal stressors that have prevented personal growth (death of a pet, moving houses, etc. ) that would constitute hindrance stressors. 3. What other stressors do you have experience with? Can you think of additional categories of common stressors? Stressors that I have experienced with include instances when I am to perform in front of an audience (singing, speaking, playing sports). Many people get stressed when imagining presenting or performing in front of a crowd.

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B. MANAGING STRESS 1. Have you ever been in a state of “flow” as described in this section? If so, what was special about this time? Flow usually happens when individuals are engaged in an activity that is meaningful and worthwhile to them. The task usually has a deadline or otherwise requires the person to experience some level of stress. The person will have the skills to perform this particular job, and the person will engage in the job not because it is an externally imposed task, but because the person feels truly engaged in it.

2. Whose responsibility do you think it is to deal with employee stress—the employee or the organization? Why? Employees should definitely take actions to manage their own stress because it has health-related consequences. Yet, organizations often find that employee stress causes them to reduce productivity, be absent more often, and increase the healthrelated costs for organizations. As a result, organizations have a strong incentive to ensure that the stress level within the organization remains manageable.

3. Do you think most organizations are fair or unfair? Explain your answer. Student answers will likely vary. An interesting conversation may involve whether the answer to this question reflects the optimism or pessimism level of the individual. You may also discuss the consequences of believing that most organizations are fair or unfair. It is likely that those who believe that most organizations are fair are more likely to take action when they find themselves in an unfair organization and be more proactive in finding organizations that will treat them fairly.

4. Have you ever considered telecommuting? What do you think would be the pros and cons for you personally? Student answers will vary for this question. Telecommuting has obvious advantages such as cutting back on commuting time, managing one’s own time and controlling one’s work environment, and balancing one’s work responsibilities and home life. In fact, when telecommuting employees may get more work done because they will be away from the distractions that may be present at work. Yet, there are also downsides. Telecommuting is not a good fit for everyone. Those who have difficulty motivating themselves or employees who have strong social needs may feel difficulties working or may feel isolated. If telecommuting occurs over long periods of time, the person may feel disconnected from the rest of the office, from important people, and from decision making. This may have disadvantages for one’s career. Because of the many distractions present at home (such as the potential presence of kids, pets, or household chores), it is important to create a suitable environment conducive to doing professional work.

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C. WHAT ARE EMOTIONS? 1. How easy do you think it is to “manage” one’s emotions? The answer will depend on the emotional intelligence level of the person. The need to present a pleasant and happy appearance regardless of one’s feelings will be challenging to most people. 2. Which types of emotions are most socially accepted in the workplace? Why do you think this is? It seems that there is an emphasis on displaying positive emotions such as joy, happiness, and surprise. Negative emotions such as anger or sadness are often less acceptable in the workplace. Given that emotions are likely to spread, negative emotions may influence the work environment in a negative manner. Positive emotions, when spread, tend to boost others’ moods. 3. What are factors that affect your emotions? Emotions are automatic responses to one’s surroundings or the events one experiences. As a result, they are not always ordered or logical. For example, when an employee is asked to speak in front of a crowd, the event may remind the employee of past where the employee failed, and cause the emotion of fear. Or, the person may feel excited and happy to share one’s opinions in a visible platform. In other words, emotions reflect the personal interpretation of external events. 4. Share an example of either positive or negative emotional contagion. How did it start and stop? Student answers will vary for this question. An example of positive contagion may be an instructor bringing cookies and coffee to a class, creating positive emotions in students, leading to a lively discussion, which later leads to the instructor being satisfied and fulfilled with the career he or she has chosen, and doing something nice for his or her family. A negative contagion example may be a boss almost having an accident on the way to work, leading to being angry and irritable at an employee, who drives angrily on the way home. 5. What do you do, if anything, to try to change how you are feeling? How effective are your strategies? This question may be used to make the point that conscious effort may be useful in changing one’s emotions.

D. EMOTIONS AT WORK 1. What is the worst job you have ever had (or class project if you haven’t worked)? Did the job require emotional labor? If so, how did you deal with it? Here, you may want to inquire whether students engaged in surface, deep, or genuine acting, and how each type of emotional labor affected their attitudes and behaviors toward the people or task in question. You may also highlight the negative effects of surface acting, such as the level of stress experienced. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 76 Instructor Manual 2. Research shows that acting “happy” when you are not can be exhausting. Why do you think that is? Have you ever felt that way? What can you do to lessen these feelings? Acting happy while one is not feeling happy is a form of cognitive dissonance. In general, individuals expect their actions and feelings to be consistent. When they are not, the inconsistency creates discomfort. Moreover, acting happy when one is not prevents the person from seeking help or empathy from the ones he or she is interacting with, which also increases stress levels. One way of reducing the negative feelings would be engaging in genuine acting and attempting to empathize with the people we interact with as opposed to only engaging in the visible signs of happiness. 3. How important do you think emotional intelligence is at work? Why? Emotional intelligence is particularly important in jobs that involve emotional labor, because in these jobs emotionally intelligent individuals may experience less stress and demonstrate genuine acting as opposed to surface acting. Emotionally intelligent people may also do well in management because they can control their emotions, understand other employees’ emotions, and modify their behavior according to the demands of the situation.

E. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. Explain a time when you have seen emotions help someone to be more ethical than he or she might have otherwise been. An example would be someone who engages in whistle-blowing after seeing the victims of the company’s actions and feeling sad for the victims. 2. Explain a time when you have seen emotions help someone to be less ethical than he or she might have otherwise been. An example would be someone who treats another person poorly and disrespectfully because the target person reminds him or her or of someone disliked and triggers feelings of anger. 3. Why do you think some countries have so much vacation time compared to others? In your opinion, is this a problem or not? Why? The masculinity/femininity level of the culture may play a role in the amount of vacation time afforded in different cultures. Some cultures emphasize working long hours and there may be norms for sacrificing family life to further one’s work objectives, while in other cultures work is viewed as a tool to live one’s life. In cultures that are extremely work-oriented, stress levels of employees may be higher and quality of work life may be affected. For example, Japan is a highly work-oriented culture, and the word karoshi refers to “death by work.” An example of this was a Toyota employee who died in 2002 at the age of thirty. The employee collapsed at four in the morning at work, having put in more than eighty hours of overtime each month for six months before his death. © Bauer & Erdogan 2016, published by Flat World Knowledge 

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F. GETTING EMOTIONAL: THE CASE OF AMERICAN EXPRESS 1. What are some other jobs that deal with relatively negative or unfavorable emotions daily? Parking enforcement officers, construction worker, lawyer, prison guard… etc. 2. In what type of job might American Express’s open emotion policy not be acceptable? In jobs that deal with the law (lawyers, judges, police officer, court officers) would an open emotion policy not be acceptable. In these professions it is important to keep as unbiased as possible so as to not make decisions that are skewed by emotions and feelings. 3. What type of personality might be better equipped for dealing with negative emotions at work? People who do not hold grudges; those who are able to let things go and have a short emotional memory are better equipped with dealing with negative emotions. 4. What are some ways you deal with negative emotions either at work or at school? Do your methods differ depending on what type of situation you are in? Student’s answers will vary. In school, taking study breaks is a common stress and negative emotions reliever. At work, picking your battles, and knowing when something is worth getting worked up about or not are good ways to manage negative emotions.

II. End of Chapter Materials A. ETHICAL DILEMMA You work at a paper supply company that employs fifty people. A coworker, Karen, is not your favorite person to be with at work. She is often late to work, can be unprofessional with coworkers, and isn’t someone you can routinely count on to go above and beyond her job duties. Last week you even noticed that her breath smelled like alcohol when you spoke to her about some last-minute orders that needed to be filled. But, you don’t like to rock the boat and you don’t like to be disloyal to your coworkers, so you didn’t say anything. However, David Chan just approached you and asked whether or not you smelled alcohol on Karen’s breath last Thursday. You are surprised and ask him why. David mentions that he heard some gossip and wants to confirm if it is true or not. What will you do? 1. Should you admit you smelled alcohol on Karen’s breath last week? Why or why not? 2. What are the implications of each course of action? © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 78 Instructor Manual 3. Would you change your answer if, instead of working at a paper supply company, you worked as a nurse?

B. INDIVIDUAL EXERCISE Time Management Quiz Please answer true or false for each of the statements according to how you currently manage your time. 1. True or false: I sort my mail when it comes in, open it, place it in a folder, and deal with it when I am ready to. 2. True or false: I do what my boss asks me to do immediately. 3. True or false: I don’t take breaks because they waste time. 4. True or false: I answer the phone when it rings regardless of what I am doing. 5. True or false: I check my emails as soon as they arrive. 6. True or false: I create a “to do” list at the start of every day. 7. True or false: I do my “heavy thinking” at the end of the day when things have calmed down. 8. True or false: I don’t like to take vacations because making up the work is always too stressful. 9. True or false: Multitasking helps me be more effective at work. 10. True or false: I don’t have to organize my office since I always know where things are.

C. GROUP EXERCISE Time Management Analysis Create List 1 List 10 activities you did at work (or at school) yesterday. Create List 2 List five things you think are key to doing your job well (or doing well in school). Compare Lists Now, look at both lists and write down which items from List 1 relate to List 2. Place each activity from List 1 on the following grid.

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Figure 7.14 Group Discussion Now, as a group, discuss the following questions: 1. What trends in your time management style did you notice? 2. How much of your “work” time is being spent on things that are directly related to doing well in your work or at school? 3. What works well for you in terms of time management? 4. What steps could you take to improve your time management? 5. How could your group help one another with time management?

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA This is an awkward situation, even if you do not like the person. Having to “rat someone out” is not something anyone likes to do. However, if people are drinking or using drugs on the job, they may put others at risk. Hiding the fact that you suspect Karen of drinking at work may be harmful to Karen as much as to the company. She may need legitimate help that she is currently not getting. All factors considered, because you were asked a direct question, it would probably be a good idea to answer honestly.

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Organizational Behavior 2.0 – Bauer and Erdogan 80 Instructor Manual The idea of Karen being a nurse actually makes the situation more cut-and-dried. Nurses, doctors, and other healthcare professionals are not allowed to drink while working. It is the duty of others to report anyone that may be suspected of being impaired at work. When the lives of others are directly involved there is little room for personal feelings.

B. INDIVIDUAL EXERCISE 1. True or false: I sort my mail when it comes in, open it, place it in a folder, and deal with it when I am ready to. Time experts say that each piece of paper should be handled only once. Set aside your unopened mail and do all these steps when you have the time and energy to do it from start to finish. 2. True or false: I do what my boss asks me to do immediately. While this may please your boss, it could be very disruptive to your workflow. If you are in a rhythm while performing a task and are almost finished, suddenly changing tasks could cost more time than you realize. Of course, it may not be a good idea to put your boss’s requests on the back burner. 3. True or false: I don’t take breaks because they waste time. Taking a break from time to time can actually make you more productive. Sometimes breaks may not be appropriate or necessary, but there are definite occasions where breaks are needed. 4.

True or false: I answer the phone when it rings regardless of what I am doing. Like dropping everything to handle a boss’s request, stopping what you are doing to answer the phone can be very disruptive. If you are expecting an important call it is perfectly reasonable to stop what you are doing, but to make it a policy can cost time unnecessarily. 5. True or false: I check my emails as soon as they arrive. While this is similar to the phone question, emails can be less disruptive than a phone call. People tend to be able to read faster than they can verbally communicate. Not having to immediately reply to a question or request takes some pressure off of the individual checking the email. Additionally, depending on the task someone is performing, it may be easier to transition to reading an email and then back to working than stopping what you are doing to answer a phone. That being said, checking email constantly can become disruptive. There are situations that are just not appropriate for checking email, regardless of how seamless the process may be. 6. True or false: I create a “to do” list at the start of every day. A “to do” list is a great way to focus your energy. It can help you prioritize tasks and make sure that nothing gets forgotten. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 81 Instructor Manual 7. True or false: I do my “heavy thinking” at the end of the day when things have calmed down. Research indicates that people are actually more productive in the morning. As the day wears on, productivity tends to decrease. It is probably best to set aside time during the most productive part of the day to do “heavy thinking.” 8. True or false: I don’t like to take vacations because making up the work is always too stressful. Returning from vacations may be stressful, but breaks from work can help recharge people and may prevent burnout. Often, when people come back from a vacation they are rested, focused, and better able to take on new challenges. 9. True or false: Multitasking helps me be more effective at work. “Multitasking” is actually a misnomer. Trying to do more than one thing at a time will often lead to mistakes, sometimes serious ones. The human brain is just not able to focus on several things at once. When people multitask effectively, they are actually jumping (often very quickly) from one task to another. At times this may be necessary to meet a deadline. If you are well organized, you probably know where there will be a lull or slowdown in one task and can potentially fill the time with another, smaller task. This can help increase efficiency, but it can also overwhelm people quite easily. 10. True or false: I don’t have to organize my office since I always know where things are. If you always know where things are, chances are you are organized. This is difficult to accomplish without conscious effort, and many people struggle to keep organized.

C. GROUP EXERCISE List 1 1. straightened my desk 2. checked email 3. talked to co-workers 4. finished a project from the previous day 5. called a client 6. ate lunch 7. made copies 8. installed computer updates 9. wrote a letter for my boss 10. submitted a timesheet List 2 A. keeping organized B. doing work © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 82 Instructor Manual C. being on time D. keeping on top of assignments E. having clear goals Compare list 1. straightened my desk – organization (A) 2. checked email – doing work (B) and keeping on top of assignments (D) 3. talked to co-workers – keeping on top of assignments (D) 4. finished a project from the previous day – doing work (B) 5. called a client – doing work (B) 6. ate lunch 7. made copies – doing work (B) 8. installed computer updates – keeping on top of assignments (D) 9. wrote a letter for my boss – doing work (B) 10. submitted a timesheet

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V. Relevant TED Talks for bringing course concepts to life A. Title: How to make stress your friend by Kelly McGonigal https://www.ted.com/talks/kelly_mcgonigal_how_to_make_stress_your _friend Synopsis: Kelly talks about how changing your beliefs on how stress affects the health of your body and mind can change your behaviors in stressful situations, and can even make stress somewhat of a good thing!

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Organizational Behavior 2.0 – Bauer and Erdogan 83 Instructor Manual B. Title: The surprising science of happiness by Dan Gilbert http://www.ted.com/talks/dan_gilbert_asks_why_are_we_happy Synopsis: Dan explains how humans are able to be happy even when things don’t go our way. He suggests that synthetic happiness can be as real and enduring as the happiness you feel when you stumble upon getting what you had hoped for. Additional Readings David Allen (2002). Getting things done: The art of stress-free productivity. NY: Penguin. Dennis W. Bakke (2005). Joy at work: A revolutionary approach to fun on the job. Seattle, WA: PVG. Mihaly Csikszentmihalyi (2008). Flow: The psychology of optimal experience. NY: Harper Perennial. Peter J. Frost (2007). Toxic emotions at work and what you can do about them. Boston, MA: Harvard Business School Press. Daniel Todd Gilbert (2005). Stumbling on happiness. NY: Vintage. Jack L. Groppel and Bob Andelman (1999). The corporate athlete: How to achieve maximal performance in business and life. Hoboken, NJ: John Wiley and Sons. Julie Morgenstern (2005). Never check your email in the morning (and other unexpected strategies for making your work life work). NY: Fireside. Tom Rath (2013). Eat Move Sleep: How small choices lead to big changes. Missionday.

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Chapter 8

Communication OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. The case only covers the surface of how the changing social media landscape is introducing challenges for managing employees. What additional incidents have you observed? What other challenges face organizations dealing with online interactions among employees, or employees and third parties? 2. How open are you online? Why do you take this approach? 3. How do you think the incident with the conference attendees could have been handled differently? What should the respective companies have done? 4. How do you think companies should respond to social media and the online presence of their employees? What should a social media policy look like?

I. Discussion Questions A. UNDERSTANDING COMMUNICATION 1. Where have you seen the communication process break down at work? At school? At home? This question may be a good conversation starter. Particularly for students with little to no work experience, the opportunity to participate by sharing personal experiences may be welcome. When students discuss communication breakdowns at work or at school, it may be useful to analyze at which part of the process the breakdown occurred, and what could have been done to prevent it from happening. 2. Explain how miscommunication might be related to an accident at work. Communication breakdowns have been related to accidents in the past. For example, the most tragic accident in aviation history, the Tenerife disaster (1977) is at least partially blamed on miscommunication. The pilot of a plane radioed the tower, stating that they were at takeoff. The tower interpreted to mean that the plane was in takeoff position and holding, whereas the pilot meant that they were actually taking off. The result was two Boeing 747 airliners colliding with each other, resulting in the deaths of 583 people and making this accident the worst disaster in aviation history. 3. Give an example of noise during the communication process. Here, it would be useful that noise is not solely caused by environmental factors. For example, a student not listening to the instructor because he or she is busy daydreaming or working on an assignment for a different class is introducing noise into the communication process. © Bauer & Erdogan 2016, published by Flat World Knowledge 

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B. COMMUNICATION BARRIERS 1. Most people are poor listeners. Do you agree or disagree with this statement? Please support your position. This is likely a correct statement, as we all engage in poor listening habits, such as not paying attention, interrupting while we are listening to another, rehearsing our answer while listening to someone, acting as if we are listening even though we are not, or listening while looking for a point of disagreement. These poor listening habits prevent us from effectively communicating with others. 2. Please share an example of how lack of source familiarity has affected you. Unfamiliar jargon is an example of how differences in shared meaning may affect communication. As an example, a professor of HR may use the term DOT frequently in class to mean “Dictionary of Occupational Titles” while students in class may assume that the instructor is talking about Department of Transportation! 3. When you see a memo or e-mail full of typos, poor grammar, or incomplete sentences, how do you react? Does it affect your perception of the sender? Why or why not? This is a good point to make a case for the importance of avoiding typos or faulty grammar in student papers. When a paper is full of typos starting from the cover page and sometimes including the names of students, the instructor starts reading the paper with the assumption that students put the paper together in the last minute and it must not be very good. Particularly in social sciences, where there is really no right or wrong answer and the quality of the analysis is what the instructor is evaluating, early impressions may last and the paper may end up getting a lower grade than it would have if the paper had been edited more carefully. 4. Give an example of selective perception. Selective perception is filtering what we hear or see to suit our own needs. For example, if you hear a rumor about a manager you like very much, you may disregard the rumor altogether and forget about it shortly because the rumor contradicts what you know about your manager. 5. Do you use jargon at work or in your classes? If so, do you think it helps or hampers communication? Why or why not? As long as the audience is familiar with the jargon, using jargon as part of communication likely facilitates the communication process. Assuming that all members of your classroom are familiar with the jargon, complicated ideas can be communicated more efficiently.

C. DIFFERENT TYPES OF COMMUNICATION 1. How aware are you of your own body language? Has your body language ever gotten you in trouble while communicating with someone? © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 86 Instructor Manual This question may be used to underline the importance of the consistency between one’s body language and oral communication. When body language contradicts the oral message, listeners are likely to pay attention to the body language and other nonverbal elements and disregard the oral message. Furthermore, body language inconsistent with verbal message may lead to the listener to feel conflicted and come to distrust the person. 2. In your experience, how is silence used in communication? This may be a good point to explain the benefits of silence within communication and how some people who feel uncomfortable with silence attempt to fill the silence with ramblings. Silence may communicate to the other party that one is continuing to listen to the other person’s point. Learning to feel comfortable with silence may be a good skill to build, particularly during negotiations. There are studies and anecdotal evidence suggesting that one reason why Western negotiators sometimes yield during negotiations and give up on certain points is their lack of comfort with silence. By remaining silent, their Asian counterparts sometimes manage to get concessions from them! 3. If the meaning behind verbal communication is only 7% words, what does this imply for written communication? Even though written communication does not involve body language, it would be incorrect to conclude that in written communication the receivers mainly pay attention to the message. The medium used to transmit the message (email versus a personal letter or a memo), how carefully the message was crafted, and the level of trust one feels toward the sender, are some elements that are present in written communication. 4. How could you use your knowledge of communication richness to be more effective in your own communications? Research shows that effective managers tend to use more information-rich communication channels than less effective managers. In other words, when it fits with the message, preferring face-to-face and phone conversations to email, texting and other written messages may be advantageous. Unless there is a good reason for using written communication (such as the desire to create a record of the message), using information-rich media may lead to more effective communication, show the receiver that you are interested in talking to him or her personally, and allow you to build more effective relationships compared to what is possible via written media. 5. What are the three biggest advantages and disadvantages you see regarding technology and communications? Technology is certainly making communications more efficient. Today, we are able to communicate with others around the globe in a cost-effective manner. At the same time, communication technology introduces barriers that did not exist in the previous decades. Even when communicating with those with whom we have the opportunity to talk face-to-face, we tend to use texting or emails, making © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 87 Instructor Manual communication less personal. Written media is more prone to misunderstandings and breakdowns in communication. They are not good at communicating emotions. As email becomes the default in organizational communication, they also introduce problems such as information overload.

D. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. How can you assess if you are engaging in ethical communications? Here you may remind students that ethical communication involves telling the truth, the whole truth, and nothing but the truth. Withholding information, filtering information provided to others, and deceiving others are some examples of unethical communication. You can also discuss the problems associated with unethical communication. 2. What experiences have you had with cross-cultural communications? Please share at least one experience when this has gone well and one when it has not gone well. Student answers to this question will vary. If you have a lot of students who have never been overseas, you may ask them about cross-cultural communication they may have had at school with someone from a different culture, or even think of an example from the movies or a book they have read. Also, you may want to remind them that cross-cultural miscommunication may occur even between people from two English-speaking countries. For example, a manager from the United States goes to the United Kingdom and compliments a co-worker, saying “I like your pants! I have the exact same ones.” The colleagues from the United Kingdom get a laugh out of this, as pants refers to underwear in British English! 3. Some companies have internal social networking pages where employees can mingle and share ideas and information. How do you think this practice affects workplace relationships, the effectiveness of workplace communications, and the ability to coordinate work? Allowing employees to mingle creates more of a sense of community in the workplace, where people can use ideas from others and incorporate them to make more efficient strategies for the company. Learning from other employees and their experiences can create better equipped employees. Social media connections could create tension between staff and managers (staff may complain to others about their bosses via social media). 4. What advice would you give to someone who will be managing a new division of a company in another culture in terms of communication? Here, you may discuss topics such as a. How formal communication should be. In some cultures, people refer to people at their own and different levels using different words and superiors are referred to using their title. Not doing so would be disrespectful. b. Translation of important documents and marketing messages. Using back translation may help in catching errors. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 88 Instructor Manual c. While English is spoken in many countries in business, it is often a second language to locals. Different usage of English around the globe may cause miscommunication. d. The importance of learning some local language to communicate respect for the locals.

E. EMPLOYEE SATISFACTION TRANSLATES TO SUCCESS: THE CASE OF EDWARD JONES 1. As an organization, what qualities do you think Edward Jones looks for when hiring new financial advisors? Employers at Edward Jones look for people who are able to be open, receptive to suggestions and not affected by negative emotions and stress.  They most likely look for internally motivated employees who are looking for long-term employment. 2. With its success in North America, why do you think Edward Jones has not expanded across the Pacific or Atlantic oceans? When a company is debating expansion across the world, they need to remember the culture diversity, and how they value different aspects of businesses. Edward Jones is an individual investment company designed to help customers invest for the long term. While in many western cultures investing is valuable, in other countries this may not be the case. 3. How has technology enabled Edward Jones to become more effective at communicating with its employees and customers? Do you think technology can ever hamper effective communication? Technology has allowed Edward Jones to branch out their company all over the United States. It enables telecommuting, video and Internet posted talks. Technology allows the company to make their 38,000 employees feel heard and valued. 4. What types of customer service policies do think Edward Jones has in place? The company stresses the importance of every Edward Jones employee establishing and maintaining personal relationships with all of their customers to ensure a reliable and trustworthy name of their company.

II. End of Chapter Materials A. ETHICAL DILEMMA The medium is the message: Particularly in employee dismissals

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Organizational Behavior 2.0 – Bauer and Erdogan 89 Instructor Manual Terminating the employment of someone is a difficult conversation, regardless of how big the company is, how good a communicator you are, or what the reason for departure is. Some companies think that they found an easy way out of this problem: Why not send a quick, carefully crafted message to soon-to-be ex-employees? Or how about a mass conference call? A letter to their home address explaining what is happening and why? Examples of electronic separations abound. In 2014 in Chicago, Snarf’s sandwich shop sent a message to 20 employees three days before Christmas, telling them that the store would be closed indefinitely for remodeling, ending the message with “Ownership appreciates your service and wishes you well in your new endeavors.” In 2006, RadioShack made the news by eliminating the positions of 400 employees and letting them know by e-mail. And as it often happens with electronic communication, sometimes mistakes are made, resulting in accidental dismissals. Aviva Investors, one of the world’s largest insurers, sent a generic termination message intended for one employee to all of the company’s 1,300 employees. E-mail is often criticized for being impersonal, but how about a conference call? Patch, a news service organization, assigned all it employees into one of two conference call “rooms.”  Then, all employees who dialed into one of the rooms (reaching hundreds in numbers) were told that their positions were being eliminated. Companies trying other such efficient methods included Hugo Boss, where news of the Cleveland plant closing was delivered via FedEx packages sent to employee homes right before Christmas. Of course, letting employees go is always hard but being sensitive while doing so is an important part of business.

B. DISCUSSION QUESTIONS 1. What is the rationale for conducting mass layoffs through electronic communication or other, impersonal methods? Do you see any advantages? 2. Do you feel that these impersonal methods are the “right way” to communicate this information? 3. What are some conditions that could justify firing someone via a text message or an e-mail? 4. Does your decision differ for mass layoffs versus firing for cause? What is an appropriate method of communicating the news for different types of employee separations?

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C. INDIVIDUAL EXERCISE In 2006, Hewlett-Packard Development Company LP became embroiled in a controversy over methods used to investigate media leaks from its board. HP Chairperson Patricia Dunn could have simply asked the directors who was the source cited in the story, sought an apology, and gone from there. With some direct face-to-face communication, the story would likely have ended quickly. It did not. “Not only did investigators impersonate board members, employees and journalists to obtain their phone records, but according to multiple reports, they also surveilled an HP director and a reporter for CNET Networks, Inc. They sent monitoring spyware in an e-mail to that reporter by concocting a phony tip. They even snooped on the phone records of former CEO and Chairperson Carly Fiorina, who had launched the quest to identify media sources in the first place.” The situation continued to escalate. For example, The New York Times reported that HP consultants even considered planting clerical or custodial workers at CNET and The Wall Street Journal to learn who was leaking information to them. Following this, Patricia Dunn, as well as three executives, left the company. A congressional hearing and several Federal investigations later, executives were charged with felonies, and HP paid $14.5 million to settle civil charges related to the scandal. HP is not the only company to use such methods; recent admissions by the investigation firms involved suggest that the use of ethically questionable investigative tactics by large companies is quite common. “It betrays a type of corporate culture that is so self-obsessed, (that) really considers itself not only above the law, but above, I think, ethical decency, that you have to ask yourself, where did the shame come in?” said Charles King, an analyst with Pund-IT Inc.. Consider this situation from a multiple stakeholder perspective. Imagine you are…  a CEO faced with leaks regarding your strategic vision. What would you do to determine who was sharing the information? What would be the advantages and disadvantages of these approaches?  a shareholder with HP stock. What would you want to see done to protect your investment in the company?  a board member who was spied upon. What would your reaction be to learning that you were investigated?  an investigator hired by HP. What role do you have to uphold ethical standards? As several observers have noted, HP spent a lot of time establishing whether or not their activities were technically legal but little time considering whether or not their actions were ethical. The effects of these events were felt for years after that. After Fiorina’s departure, Léo Apotheker left as CEO. By the time Meg Whitman took over as President and CEO of HP, things were not going well. In s meeting arranged to introduce her to a group of software engineers and managers, one employee told her he was “live blogging” her comments to the group. To this she replied, “You all have taken leaking to a new art form.”

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Organizational Behavior 2.0 – Bauer and Erdogan 91 Instructor Manual Sources: Based on information in Bergstein, B. (2006, September 20). HP spy scandal hits new weirdness level. BusinessWeek.com accessed at http://www.businessweek.com/ap/tech/D8K8QTHO0.htm?chan=search; Allison, K. (2006, September 30). Spy methods used in other companies. FT.com accessed at http://www.msnbc.msn.com/id/15067438/; Fried, I. (2006, December 7). HP settles with California in spy scandal. CNET News.com accessed at http://www.news.com/HP-settles-with-California-in-spy-scandal/21001014_3-6141814.html.

D. GROUP EXERCISE You Know What I Mean, Right? Purpose This exercise illustrates how words we commonly take for granted are not universal in their meaning. Time Approximately 20 minutes 1. Write down the number that comes to mind for each of the following questions. Remember that there are no right or wrong answers—just go with your first response. Do not discuss your answers with anyone in the class until instructed to do so.  My neighbor just bought an expensive car. How much did it cost? _______  Several people were in line for the movie. How many people were in line? _____  The ballot measure was approved overwhelmingly. What percentage of votes did the measure receive? _____  My boss is an older man. How old is he? _____  I recently saw an article in the paper. How long ago did I see it? _____ 2. 3.

Your instructor will summarize the responses from the class. Discuss the following questions (either as a class or in small groups).  Do you agree that words mean different things to different people?  How large was the range of responses for each of the questions? Why was this?  Did this surprise you? Why or why not?

What can you apply from this exercise to make you a better communicator?

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III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA Student’s answers will vary.

B. ETHICAL DILEMMA

  

1. What is the rationale for conducting mass layoffs through electronic communication or other, impersonal methods? Do you see any advantages? While conducting mass layoffs through electronic communication may appear to be easier, faster, and more efficient, it can leave a really bad taste in an ex employee's mouth. It creates an impersonal feel where the employee felt they were not valued as an individual, and merely for their labor. This can lead people to speak out against the company, creating bad moral for the entire organization. 2. Do you feel that these impersonal methods are the “right way” to communicate this information? Student’s answers will vary. Some may answer ‘yes’, that it is easy to communicate memos, rules of conduct, new information about the company to a large group of people. Others may answer ‘no’, that it creates a separation from staff and management staff, which can create tension and confusion of specific individual and personal goals of the employees and their specific managers. 3. What are some conditions that could justify firing someone via a text message or an e-mail? If someone is out of the country for a long period of time and does not communicate why they left, where they are and how long they will be gone. If someone is in jail or has been arrested If an employer feels that communicating in person is a threat to his or her own well-being.

Does your decision differ for mass layoffs versus firing for cause? What is an appropriate method of communicating the news for different types of employee separations? There is a difference in reasons for layoffs, but they should be handled similarly: personally and upfront so as not to cause confusion and to hopefully reduce animosity of the company.

C. INDIVIDUAL EXERCISE Leaks about strategy can be a very serious matter for a company. In a highly competitive market where products tend to be similar, strategy is often a key factor for gaining a competitive edge. Generally speaking, an organization’s strategic vision is discussed with relatively-high-level executives. This close circle of individuals narrows down the leak to only a few people. Let’s assume there are © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 93 Instructor Manual seven people who are aware of confidential information that has been leaked to the press. Here are some ways to potentially weed out a mole:  Each of the seven individuals could be brought in individually and asked directly if they have divulged information. Sometimes this is all it takes for someone to confess. Even if no one confesses, you may be able to get an idea of who you think the leak is by observing behavior during the interview. Obviously this would be the easiest and most direct way to handle the situation. The problem is that it may not work.  Each of the seven people could be brought in for a one-on-one meeting. Each person is given a similar outline of some confidential information that would be “worthy” of leaking to the press; however, each person would be given different details regarding the information. If one of the people were to take the information to the press, the specifics of the story would only point to one person. This tactic is rather sneaky, and may ultimately erode confidence among senior management. People do not like being lied to, and that is essentially what this plan would involve. Additionally, the seven individuals may communicate with each other and discover they all possess conflicting information.  Employees who are privy to important company information often sign nondisclosure agreements. This is a legally binding contract assuring that no private information will be shared with anyone. Since divulging information to the press would be a contract violation and therefore illegal, you might be able to get the news source to divulge the source. The main problem is that reporters are very, very secretive about their sources. Many have served jail time after refusing to reveal a source to a judge in a court of law. Additionally, the process would likely draw attention to the issue. If, however, the reporter cooperates, it would be a very easy and direct way to deal with the leak. As a shareholder, I would probably want to see the situation taken seriously. A strategy leak could mean leaks in other areas as well. It would also indicate to me that members of the executive team are not fully committed to the company vision. At the same time, I would probably not want to see a reaction similar to that of the HP executives. I would want the people running the company to handle the situation with tact and dignity and not take actions that would reflect poorly on the ability of the managing team to deal with bumps in the road. As a board member that has been spied on, I would likely feel violated. People expect a certain degree of privacy, and after learning about such egregious privacy violations they may lose faith in the organization. Many may even leave based on what has happened. As an investigator you are hired to do a very specific job. Private investigators are trained and licensed. While some of the tactics they use may seem to tiptoe on the edge of legality, actually breaking the law will cost them their license. According to reports of the HP incident, individuals lied to obtain personal phone records and © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 94 Instructor Manual other information. These actions definitely fall into the illegal area. Investigators have the right to search through any information available, and even to follow individuals traveling through public areas. However, once someone is in a home or private business, investigators need to take precautions to not violate personal rights.

D. GROUP EXERCISE People of different socioeconomic class tend to live in homogeneous clusters. For many people, the idea of buying a new car of any kind is considered expensive. For someone from an upper class neighborhood, on the other hand, expensive could mean a car well over $100,000. “Several” can vary depending an individual’s background. Additionally, the concept of a line at the theater can present itself differently in people’s minds. Someone from a small town might consider any line at all, even one with only five people, to be several. Someone else from a large city might be used to lines with at least twenty or thirty people, so “several people” might indicate a typical theater line of about twenty-five people. “Overwhelmingly” could easily mean anywhere from a simple majority (over fifty percent) to nearly a consensus. If the public largely supported the ballot, overwhelmingly may indicate eighty percent. In the 2008 presidential election, news stations were quoted as saying the American people overwhelmingly supported Barack Obama, yet he only received fifty-two percent of the popular vote. It is easy to see that the idea of “older” can be different depending on the speaker. To a teenager, people in their thirties are “older.” For those in their thirties, people in their sixties are “older.” The context of the phrase can also change the idea of “older.” If someone were talking about an older brother, you might think the brother were one to ten years older. The fact that it is a boss may make you think of a much older person, perhaps sixty or seventy years old. “Recently” can change drastically depending on who is speaking. For an astrophysicist, the earth has only recently formed (about 3.5 billion years ago). A man who is sixty-seven years old may say he has recently retired (two years ago). In reference to a newspaper article, if you read the paper every day, recently may mean within the past three or four days. For someone who rarely reads newspaper articles, recently could be within the last two months or anything in between.

V. Relevant TED Talks for bringing course concepts to life A. Title: Beware online “filter bubbles” by Eli Pariser http://www.ted.com/talks/view/lang/en//id/1091 Synopsis: The Internet is now using someone’s personal information to assess what he or she think they want to see/hear, and filters what people see. Eli © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 95 Instructor Manual argues that this creates a lack of exposure to information that could test our judgment and ‘broaden our world views’. B. Title: Gotta share by Improv Everywhere https://www.ted.com/talks/gel_gotta_share Synopsis: A fun, short music video on the effect that social media has on our society. Additional Readings Roger E. Axtell (1998). Gestures: The do’s and taboos of body language around the world. NY: Wiley. Carmine Gallo (2015). Talk like TED: The 9 public-speaking secrets of the world’s top minds. St. Martin’s Griffin. Stephen Denning (2005). The leader’s guide to storytelling: Mastering the art and discipline of business narratives. NY: Jossey-Bass. Akash Karia (2015). How to design TED-worthy presentation slides. CreateSpace. Bill McGowan (2014). Pitch perfect: How to say it right the first time, every time. HarperBusiness. Harry Mills (2007). PowerPoints! How to design & deliver presentations that sizzle and sell. NY: Amacom. Phyllis Mindell (2005). How to say it for executives: The complete guide to communication for leaders. NY: Penguin Group. Kerry Patterson, Joseph Grenny, Ron McMillan, and Al Switzler (2002). Crucial conversations: Tools for talking when stakes are high. NY: McGraw-Hill. John D. Walsh (2003). The art of storytelling: Easy steps to presenting an unforgettable story. Chicago, IL: Moody Publishers.

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Chapter 9

Managing Groups and Teams OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. What are the benefits of creating a team whose members hold hiring power over potential new employees? What are the potential negatives? 2. What do you think inspires individuals at Pret a Manger to work as a cohesive team? 3. In the case of Pret a Manger a Manger, do you view the team members or the management leaders as the most important part of the story? 4. How do you think Pret a Manger a Manger holds team members accountable for their actions? 5. Do you think that Pret a Manger offers enough of a support system for its employees in order to create this type of team cohesion?

I. Discussion Questions A. GROUP DYNAMICS 1. If you believe the punctuated-equilibrium model is true about groups, how can you use this knowledge to help your own group? According to this model, groups will sometimes experience a crisis, or a shock to the status quo. Knowing this reality and expecting this to happen sometime in the life of a group may be useful because it motivates the group to take action afterward. The group can review what went wrong, what could have been done instead, and how to change its processes to improve them for the future. This step could be a learning opportunity and a good time to increase the creative potential of the team. 2. Think about the most cohesive group you have ever been in. How did it compare in terms of similarity, stability, size, support, and satisfaction? Student answers will vary. You may want to highlight the factors that cause cohesiveness, such as the size of a team, history of success, similarity as opposed to diversity, the level of support available to the team, etc. You may also discuss the conditions under which team diversity does not necessarily reduce cohesiveness. 3. Why do you think social loafing occurs within groups? Students are often surprised to hear that social loafing does not always occur because there is a “lazy” member in their group. In fact, all of us are prone to social loafing when working with others. Factors contributing to social loafing may include © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 97 Instructor Manual    

lack of individual accountability the perception that one’s contributions are not needed or valued feelings of exclusion from the team slack resources (the team is too big and there is not enough work to go around)

4. What can be done to combat social loafing? There are many strategies, such as  ensuring that individuals are accountable for completing identifiable pieces of work  making sure that members feel valued  ensuring that members feel their input is needed  asking team members to evaluate each other and using these evaluations as part of the reward distribution  keeping groups small 5. Have you seen instances of collective efficacy helping or hurting a team? Please explain your answer. Even though it is a generally desired characteristic within a team, collective efficacy may sometimes hurt the group by leading to overconfidence and groupthink.

B. UNDERSTANDING TEAM DESIGN CHARACTERISTICS 1.

Think of the last team you were in. Did the task you were asked to do affect the team? Why or why not? The type of task definitely influences the team processes. Specifically, teams have different types of interdependencies. In some tasks, working solo is fine, with members simply pooling their resources, while in other tasks, one member’s output becomes the other person’s input. As the interdependence increases, opportunities for interaction and conflict also increase. 2.

Which of the 10 work roles do you normally take in a team? How difficult or easy do you think it would be for you to take on a different role? Student answers will vary for this question. A good discussion point might be whether each member should be ready to serve in different roles and whether developing this flexibility is required for the performance of one’s team. 3.

Have you ever worked in a virtual team? If so, what were the challenges and advantages of working virtually? There are many advantages to virtual teams, such as allowing a company to reap cost savings and bringing people from different cultures and perspectives together to work on a single project. The challenges of virtual teams involve making each person accountable for specific tasks, as close supervision of each member will not be possible. Communication technology may also introduce additional challenges, © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 98 Instructor Manual such as the challenge of developing relationships while working in a remote location. 4. How large do you think teams should be and why? While the right size will depend on the task at hand, research shows that effective team size ranges between two and twenty.

C. MANAGEMENT OF TEAMS 1. Have the norms for most of the teams you have belonged to been formal or informal? How do you think that has affected these teams? While informal norms exert strong influence over individuals, developing formal norms or team contracts may be useful in creating the informal norms that will guide the functioning of a team. Establishing formal norms during the early stages would be useful for the team to discuss areas of agreement and disagreement and discover the important issues that need resolution. 2. Have you ever been involved in creating a team contract? Explain how you think that may have influenced how the team functioned. Scientific research as well as experience working with thousands of teams shows that teams that are able to articulate and agree on established ground rules, goals, and roles and develop a team contract around these standards are better equipped to face challenges that may arise within the team. Having a team contract does not necessarily mean that the team will be successful but it can serve as a roadmap when the team veers off course. 3. Should the person requesting a meeting always prepare a meeting agenda? Why or why not? Often this is a good idea. The person requesting the meeting will have an idea why a meeting is necessary and identifying the points of discussion would be useful. At the same time, in order to ensure that the meeting addresses everyone’s concerns, this person will need to be open to suggested agenda items. 4. Do you think conducting team meetings standing up is a good idea? Why or why not? Particularly for routine coordination meetings, this would be a great idea because it ensures that only the most important information is shared. We cannot stand up for too long! There are alternatives that are similar to this format, such as giving the speaker a heavy object to hold while speaking. This way, it is ensured that the speaker will not be able to dominate the conversation and will speak briefly.

D. BARRIERS TO EFFECTIVE TEAMS 1.

How could some of the things discussed in “Understanding Team Design Characteristics” help to avoid the common barriers to team effectiveness?

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Organizational Behavior 2.0 – Bauer and Erdogan 99 Instructor Manual Here, students are asked to explain how choosing members carefully, determining the team size, ensuring diversity of the team, and setting team roles will be related to the amount of conflict and coordination within the team. You may encourage students to share stories from particularly successful and unsuccessful teams. 2.

Have you ever been involved in a team where dominating team members hurt the team’s performance? Share what happened and how the team dealt with this. There are a couple of problems when one team member dominates:  This situation can lead to groupthink. Members start complying and selfcensoring because it is difficult to go against the leader.  Members start engaging in social loafing because the dominant person makes the remainder of the team feel excluded.  The dominant member starts also feeling alone, stressed, and frustrated with the rest of the team.  This situation leads to underutilization of team resources and potentially could lead to the failure of the team.

E. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. Have you ever felt pressure from team members to do something you didn’t want to do? If so, how did you handle it? Teams can pressure others toward unethical behaviors such as hiding a mistake from management, or exerting less effort at work so that production is held at a low level. Students may share their experiences with team pressure and how they were able to handle the pressure. Organizations may want to institute mechanisms such as whistle-blowing to help employees who are pressured toward unethical actions. 2. In what ways do you think culture can affect a team? The level of collectivism within the team will affect how attached group members are toward each other, the roles they adapt, and whether individuals are used to being team members. Power distance may be a negative influence over selfmanaging teams as individuals may be more used to a hierarchical structure dictating what each member is responsible for doing, as opposed to coordinating their own individual actions.

F. TEAMWORK TAKES TO THE SKY: THE CASE OF GENERAL ELECTRIC 1. Would Robert Henderson’s strategy have worked if GE was manufacturing an entire plane rather than just an engine? What about if they were manufacturing medical equipment?

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Organizational Behavior 2.0 – Bauer and Erdogan 100 Instructor Manual Henderson’s strategy may not have worked for an entire plane. The engine itself cost an amount of money that was unacceptable to lose if anything went wrong in the process. The engine itself was a risk, so it is unlikely GE would have followed through with funding for an entire plane. 2. Jack Welch stated that productivity “comes from challenged, empowered, excited, rewarded teams of people.” Do you agree with this statement? What are some other factors of productivity that Welch may have left out? Student’s answers will vary on their opinions of the statement made by Jack Welch. A few factors that may have been left out include: motivated, agreeable, and hardworking. 3. One of the factors that contributed to the success of Henderson’s new factory was the use of FAA-certified mechanics. How could Henderson have accomplished his goal if the industry was suffering a shortage of FAAcertified individuals? Some alternative methods Henderson could have taken if he was faced with a shortage of FAA-certified individuals would be to train himself to become FAA certified and then train employees himself, allowing himself to personally train and evaluate new FAA certified individuals. 4. As stated at the opening of the GE story, GE had already invested $1.5 billion in the jet engine project. This implies that GE has a large amount of money at its disposal. Could Henderson have pulled off his revolutionary production facility without the amount of financial capital GE provided? How might his initial planning and the development of the factory have differed if he was working for a new, small, start-up organization? Without the financial capital that GE provided, Henderson would have had a very hard time pulling off what he accomplished. Funding is very important for creation, and without social, economic, or cultural capital, Henderson would not have been able to accomplish what he did.

II. End of Chapter Materials A. ETHICAL DILEMMA Imagine you work at an ad agency and your team is charged of coming up with the name for TrueBeauty’s latest perfume. You have been with the company for six months. The branding team has been brainstorming for the last two hours, filling up pages and pages of the flipchart with innovative, imaginative names. Feeling daunted by how loudly, quickly, and assertively branding team members are shouting out suggestions, you decide to sit this one out, even though you have some ideas. You are uncomfortable shouting over everyone else and you reason that the group would discount your input anyway. Plus, everyone else is generating so many good names that the group is bound to succeed regardless of your input. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 101 Instructor Manual What do you think? 1. Is your lack of participation ethical? Why or why not? 2. What are the implications of speaking up or not speaking up? 3. Would you change your answer if you’d been with the company for 10 years instead of six months?

B. INDIVIDUAL EXERCISE Think about a team you belonged to and enjoyed. This could be a student or work team. Now answer the following questions: 1. 2. 3. 4. 5.

What was the reason you enjoyed the team? What made the members “click?” What were the norms in the team? How did you decide who would do what? What made you work hard for the team?

Now answer the following questions for a team you belonged to but did not enjoy: 1. 2. 3. 4. 5.

What was the reason you did not enjoy the team? What made the members distant from each other? What were the norms in the team? Were the norms effective? How did you decide who would do what? Did you work hard for the team? Why or why not?

Comparing your experiences, are there things you can do to proactively manage the team you enter? How can you change your own perceptions and behaviors to ensure that the team ends up being successful?

C. GROUP EXERCISE Tangram Puzzle 

Originated in China



Brought to the United States in 1815

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Means “seven boards of skill” in Chinese



The seven pieces are called a "tans"

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There are two large, one medium, and two small triangles as well as one square and one parallelogram 

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Over 6,500 different tangram figure problems have been created.

Objective of the puzzle:

Use all seven pieces to create figures.

Can you create the following figures? 

Boat



Candle

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Cat

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Chair

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Dog

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House

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Person holding a bowl

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Rabbit

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Rocket

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Swan

Further reading: Anno, M. (1987). Anno's Math Games (three volumes). New York: Philomel Books, Gardner, M. (1974). Mathematical Games—on the Fanciful History and the Creative Challenges of the Puzzle Game of Tangrams, Scientific American, Aug. 98–103. Gardner, M. (1974).  More on Tangrams, Scientific American, Sep. 187–191. Slocum, Jerry, et al. (2003). The Tangram book: The story of the Chinese puzzle with over 2000 puzzles to solve. New York: Sterling Publishing Company.

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Organizational Behavior 2.0 – Bauer and Erdogan 103 Instructor Manual Instructions for group exercise:

1. Copy or print out this puzzle template. 2. Cut out the seven shapes following the lines. 3. Use these seven shapes to create shapes such as boat, candle, cat, chair, dog, house, person holding a bowl, rabbit, rocket, or swan. 4. You may also create your own tangram puzzles. 5. The class should be divided so that some people do it alone, some in pairs, and others in trios. 6. Each individual or team should work to create as many different tangram shapes as possible within ten minutes. 7. After ten minutes, record how many (and which) tangrams were able to be recreated. 8. Answer the following questions: 

Did enjoyment of the task vary based on solo vs. team performance?

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Did performance of the task vary based on whether you completed the task solo, in pairs, or in trios?

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Was there evidence of social loafing?

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Which team roles did you observe being performed?

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If the team is awarded $10, how do you think it should be divided up? Why or why not?

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How did team effectiveness depend on team composition or processes?

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III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA The simple fact of the matter is that sometimes it is best to “sit it out.” However, in brainstorming sessions, every idea is valuable. Even if you feel like you don’t have good ideas, bad ideas can stimulate good ideas. It is unfortunate that the group seems to be getting out of control, but people often become very passionate during creative times. The current brainstorming environment may be what everyone else is used to and something you may need to get used to if you are going to continue with this particular organization. Although it might be challenging, throwing out a few ideas can go a long way.

B. INDIVIDUAL EXERCISE Student’s answers and results will vary.

C. GROUP EXERCISE Student’s answers and results will vary.

V. Relevant TED Talks for bringing course concepts to life A. Title: Why it’s time to forget the pecking order at work by Margaret Heffernan http://www.ted.com/talks/margaret_heffernan_why_it_s_time_to_forget_the_p ecking_order_at_work Synopsis: Margaret talks about how the individual at work can thrive in a social situation in which they have support from the group. Teams that work together work the best; time builds trust, allowing employees to create their finest work. B. Title: The workforce crisis of 2030 - and how to start solving it now by Rainer Strack https://www.ted.com/talks/rainer_strack_the_surprising_workforce_crisis_of_2 030_and_how_to_start_solving_it_now Synopsis: Because it is predicted that by 2030 there will be more jobs than adult citizens to do those jobs, Strack suggests looking around the world for employees, however before they can do this, companies must develop new strategies to run their business and deal with new employees.

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Organizational Behavior 2.0 – Bauer and Erdogan 106 Instructor Manual Additional Readings Deborah G. Ancona and Henrik Bresman (2007). X-teams: How to build teams that lead, innovate, and succeed. Boston, MA: Harvard Business School Press. Donelson R. Forsyth (2005). Group dynamics. Wadsworth Publishing. J. Richard Hackman (2002). Leading teams: Setting the stage for great performances. Boston, MA: Harvard Business School Press. Rich Karlgaard and Michael S. Malone (2015). Team genius: The new science of high-performing organizations. HarperBusiness. Patrick M. Lencioni (2002). The five dysfunctions of a team: A leadership fable. NY: Jossey-Bass. Dave Logan, John King, and Halee Fischer-Wright (2011). Tribal leadership: Leveraging natural groups to build a thriving organization. HarperBusiness. General Stanley McChrystal (2015). Team of teams: New rules of engagement for a complex world. Portfolio. Joseph E. McGrath (1984). Groups: Interaction and performance. Englewood Cliffs, NJ: Prentice Hall. James Surowiecki (2005). The wisdom of crowds. New York: Anchor Books.

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Chapter 10

Conflict and Negotiations OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. Considering the amount of buzz surrounding Hassett’s new technology and the impact previous, similar advancements have made, was Hassett necessarily foolish for not taking a quick offer? 2. Is the PointCast situation a case of pride clouding someone’s judgment or more accurately a representation of the rapidly changing nature of computer-related business? In other words, if Hassett’s advancement had been in an industry that is not known for such rapid change, would he have been considered foolish if he hadn’t held out for more money? 3. The case focuses on how foolish Hassett was for not accepting Rupert Murdoch’s first or second offer. However, think of the buyout offer from the perspective of Rupert Murdoch. If the buyout had gone through, News Corporation would likely have lost hundreds of millions of dollars on the deal, and the company was effectively spared massive losses by the merger falling through. What could Murdoch have done differently to protect against such risky mergers in the future?

I. Discussion Questions A. UNDERSTANDING CONFLICT 1. What are the types of conflicts that individuals may have at work? Which type have you experienced the most? Conflict may be intrapersonal (such as role conflict), interpersonal (between two individuals) or intergroup (between two groups). All three types of conflict are prevalent in organizations. 2. What are some primary causes of conflict at work that you have observed between two people? Within a larger group? Conflict may occur as a result of an organization’s structure, limited resources, task interdependence, incompatible goals, personality differences, and communication problems. 3. Explain how miscommunication might be related to a conflict at work. Miscommunication may lead to a situation where individuals assume that they disagree on what to do or how to do things, as well as on interpersonal issues. This is a good point to ask students to share personal experiences.

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B. CAUSES AND OUTCOMES OF CONFLICT 1. What are the most prevalent causes of conflict at work? Conflict may occur as a result of an organization’s structure, limited resources, task interdependence, incompatible goals, personality differences, and communication problems. 2. What are the common outcomes of workplace conflict? Conflict may have positive outcomes such as  consideration of a broader range of ideas, resulting in a better, stronger idea  surfacing of assumptions that may be inaccurate  increased participation and creativity  clarification of individual views that build learning On the other hand, conflict can be dysfunctional if it is excessive or involves personal attacks or underhanded tactics. Examples of negative outcomes include:  Increased stress and anxiety among individuals, which decreases productivity and satisfaction  Some people feel defeated and demeaned, which lowers their morale and may increase turnover  A climate of mistrust develops, which hinders the teamwork and cooperation necessary to get work done Jobs that involve dealing with people and being in high risk situations have a higher risk of violence as a reaction to conflict. 3. Do you think workplace violence is a problem or not? Why do you think that is? Yes, workplace violence is definitely a problem. Every employee should have the right to go to work and feel comfortable and safe in the workplace. While it is at times healthy for a company to have arguments and disagreements (which can help the company grow and expand) it moves a step backwards when violence takes place. Workplace violence is more common in certain employment positions than others. In workforces that include a lot of stressful situations with poor management style, violence is more common. 4. What outcomes have you observed from conflict for yourself? In other words, how do you feel or act after a conflict? Student answers to this question will vary. When not prompted, students may be more likely to mention negative outcomes of conflict. You may want to remind them that the absence of conflict may also signal problems such as apathy.

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C. CONFLICT MANAGEMENT 1. List three ways to decrease a conflict situation. What do you think are some pros and cons of each of these approaches?  Changing the composition of the team (such as dropping a team member) may resolve the conflict but this may be a drastic action. While resolving the conflict at hand, it may cause difficulties in working relationships in the future.  Creating a common opposing force (finding a common enemy, or identifying a common goal everyone can identify with) may bring conflicting parties together, but it may also be a temporary solution.  Using majority rule as the decision-making process may move the process along. At the same time, if the minority opinion was the correct cause of action, this will be a missed opportunity.  Problem solving is an effective approach as it gets to the bottom of the issue creating the conflict, even though it may not always be possible. 2. Do you deal with conflict differently with friends and family than you do at work? If so, why do you think that is? Students will probably mention that they approach conflict with strangers and family members differently. When interacting with our loved ones, we will have the desire to meet our own goals but at the same time feel motivated to help the other party reach their goals as well. As a result, we may use collaboration or compromise as opposed to solely pushing to get what we want. Moreover, with people with whom we have a long history, we may feel free to discuss our opinions freely and openly without being afraid that we will offend the other person. Therefore, avoidance may be less likely in these trust-based relationships. Of course, student answers will vary and some may bring up family members one knows are unlikely to change their views, motivating one to avoid conflict. 3. What is your usual conflict-handling style at work? Do you see it as effective or ineffective? Here, you may want to make the point that each of us has a range of alternatives when it comes to conflict management. Most of us follow a single style regardless of circumstances (such as seeking a compromise regardless of what the situation entails). Instead, it may be more useful to strategically analyze the situation and decide whether compromise, collaboration, or even avoidance is the proper action. 4. Describe a situation in which not having enough conflict can be a problem. In fact, lack of conflict may signal that the workplace has a culture of maintaining the appearance of pleasant relationships and people are penalized for criticizing the status quo. Or, it may signal that members are suffering from groupthink. Conflict may improve the status quo and help the group arrive at better solutions, or identify problems in the status quo. Therefore, avoiding conflict at all costs is likely to be a counterproductive activity.

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D. NEGOTIATIONS 1. What are the negotiation phases and what goes on during each of them? Investigation – Determining the goals of the negotiation. Determining your BATNA - best alternative to a negotiated agreement. Presentation – assembling and presenting your case. Bargaining – trying to achieve your goals by getting concessions. Closure – the end of the negotiation. 2. When negotiating, do you think establishing a BATNA important? Why or why not? The BATNA tells you your alternatives if you walk away from the negotiation. For example, when negotiating for salary, if you know that your BATNA is staying at this job at the same salary, then you would know not to make any threats or be emotional during the negotiation. Yet, if you know that your BATNA is to take an alternative job offer at a higher salary, you would know that you have choices if this negotiation failed, and this would affect your style during the negotiation. 3. Have you ever used any of the third-party conflict resolution options available? Have you ever used any of the third-party conflict resolution options discussed in this chapter? These resolutions prove very effective in places other than the workforce. It is very effective in solving conflicts between kids, for example a babysitter or a parent can sit two children down and hash out any animosity there is by coming to a resolution or compromise.  Students may then proceed to give personal examples of conflict resolutions they have utilized in the past and whether they proved effective or ineffective.

E. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. Is the goal of negotiation to maximize your economic outcome at all costs? Why or why not? Finding a way to make a deal that works for both sides is preferable. Otherwise, if you have the complete upper hand and use it to “destroy” the other party, it’s likely that at a future date the other party will have the upper hand and will use it to retaliate mercilessly against you. What’s more, your reputation as a negotiator will suffer. As J. Paul Getty said, “My father said: ‘You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won't have many deals.’ ” 2. Is solely working to maximize your (or your company’s) economic outcome at all costs ethical? Why or why not? Student’s answers will vary, some will feel that all businesses strive for maximizing their economic outcome, and others say that leaving lasting positive effects on our society is much more meaningful.  People’s opinions on what is ethical will differ person to person. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 111 Instructor Manual 3. What are some similarities and differences in conflict management preference and negotiation practices among different countries around the globe? Have you had any experiences with individuals from other cultures? If so, how did it go? How might it have gone better? Some cultures have a higher or lower threshold for conflict. For example, in countries such as Japan or Korea, the preference is for harmony (called wa in Japan) rather than overt conflict. In Japan, much like Pakistan, the tendency is not to trust what is heard from the other party until a strong relationship is formed. Similarly, in China, conversations start out with innocuous topics to set a mood of friendliness. This differs a great deal from American negotiators who tend to like to “get down to business” and heavily weigh first offers as reference points that anchor the process as both sides make demands and later offers.

F. AVOIDING CONFLICT AT WORLDCOM: THE CASE OF BERNARD EBBERS 1. What potential causes of conflict existed at WorldCom during Bernard Ebbers’ administration? The leadership at WorldCom was faulty: CEO Bernard Ebbers had a short temper, was stubborn and did not like the company he worked for. Ebbers avoid making long-term plans and strategic decisions, ultimately destroying the company’s financial stability. Organizational structure and communication problems are the most potential causes of conflict for the downfall of WorldCom. 2. What might have happened if Ebbers had been prone to a different conflict-handling style, such as compromise or collaboration? Ebber’s strategies of resolution included avoiding the problem, and ultimately falsifying financial reports, resulting in investment fraud. A better approach Ebbers could have taken would have been admitting to having problems keeping up with growth due to new complex technology and expansion, and then attempting to collaborate with other higher ups to figure out how to catch up with society and maintain a functional, profit-earning company. 3. How did having a small “inner circle” of leadership affect the corporate culture at WorldCom? A smaller inner circle meant less brainpower to work with- less ideas brought to the table, less diversity of new ideas and staff. The culture was more authoritarian: a small group controlling the mass. This meant employees had little say in any of the company matters, creating tension between the leadership employees and the rest of the workers. 4. If you were Cynthia Cooper, how might you have dealt with being ignored? What options did Cooper have to deal with the company conflict?

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Organizational Behavior 2.0 – Bauer and Erdogan 112 Instructor Manual Cooper used the conflict-handling style strategy of competing: highly assertive but low on cooperation. Without help from her coworkers who disapproved of the company but were not willing to go against it, Cooper had to work alone. While competing conflict style sounds negative, Cooper was willing to sacrifice her own job stability in order to find the truth and to reestablish the company’s moral integrity. 5. What responsibility did the board of directors have to detect and confront the problems at WorldCom? While the board of directors did confront the problems to an extent at WorldCom, their solution may have not been the most effective. Asking Ebbers to step down was definitely a start to creating a solution, but they should have furthered investigation to the real damage Ebbers caused for the company.

II. End of Chapter Materials A. ETHICAL DILEMMA Imagine that you are part of a bargaining team that has been engaged in negotiations for six long months. One night, as you are getting ready to leave and are gathering your things, you notice a piece of green paper on the ground near where Irwin, a member of the opposite negotiation team, was sitting just a few minutes earlier. When you pick it up, you realize that it is a list of the ideal outcome for the other team. At first you are ecstatic, this is the information you need to end these negotiations! Then you begin to recall your Organizational Behavior course and all those ethical dilemmas that seemed so easy back then. What should you do? Should you use the information for your team? I mean, why not, they were careless enough to leave it behind? On the other hand, would that be ethical? Thinking back to that OB course, you recall some key questions you should ask yourself during negotiations:  Would this be honest?  Would this involve keeping my promises?  Would I be following the Platinum Rule and be “treating people the way they want to be treated”? As you are pondering these questions you also realize that this is a key decision. There were some additional questions you should ask yourself around making ethical decisions if you plan on using this information to help your team:  Is this decision fair?  Will I feel better or worse about myself after I make this decision?  Does this decision break any organizational rules?  Does this decision break any laws? © Bauer & Erdogan 2016, published by Flat World Knowledge 

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How would I feel if this decision was broadcast on the news?

Just as you think you’ve made your decision, Irwin from the opposing team walks back in and asks you if you’ve seen a green piece of paper.    

What would you do? What are the ethical dilemmas involved? How would you justify your choice? What would be the consequences of your choice?

B. INDIVIDUAL EXERCISE A Case of Listening: When Silence is Golden Listening can be an effective tool during negotiations. William Devine was representing a client on a land purchase. “The owner and I spent two hours on the phone horse-trading contract issues, then turned to the price.” Devine explained. “We were $100,000 apart.” The owner then said, “The price your client proposes will leave us well short of our projections. That makes it very tough on us.” The line went silent. “My impulse was to say something in response to the silence, and I started to speak, then stopped. As I hesitated, I sensed that if I said, “My client can pay all cash,” or “It’s still a good deal for you,” then the owner would take my comment as an invitation to joust, we would battle over the hundred grand, and my client would end up having to pay some or all of that sum. The owner had not asked a question or proposed a compromise, so no response was required from me at that moment. I decided to remain silent. After what felt like days but was probably less than thirty seconds, I heard, “But I guess it’s good for us [i.e., his company] to just get this deal done, so we’ll do it.” Devine saved his client $100,000 by staying silent. Questions to think about 1. What does this case suggest about the role of silence in negotiations? 2. Have you ever had a similar experience where saying nothing paid off? 3. Are there times when silence is a bad idea? Explain your answer. Source: Adapted from Devine, W. (2002, September 30). Anatomy of a Deal-Maker. California Real Estate Journal, http://www.wdesquire.com/pages/dealmaker.html.

C. GROUP EXERCISE Salary Negotiations © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 114 Instructor Manual Thinking about negotiations is a lot easier than actually engaging in them. In order to give you some practice with the information in this chapter, you will engage in a salary negotiation. 1) To make this more meaningful, the exercise will be based on a job that you are actually interested in. Think of a job you would like to have (either now or in the future). Imagine you have been offered this job. The salary is okay. It is about 15% below the market rate for this type of job, but you really want the job. 2) What will you do? Will you negotiate for a higher salary? What are the pros and cons of this choice? 3) If you’ve decided to negotiate (and we strongly suggest you do), work through the next six steps in the OB Toolbox “Seven Steps to Negotiating a Higher Salary.” Once you are up to step 5, let your instructor know you are ready to begin the negotiation process.

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA In this situation you would be given an obvious advantage for the remaining negotiations. It would be best not to lie to direct questions. You did find the piece of paper, so you should probably admit it. You’ve read the piece of paper, so you should probably admit to that as well. The best thing to do, considering the circumstances, may be to simply be honest about what has occurred. As soon as the group is together again, tell everyone what has happened and outline the position your team is in at this point for further negotiations. Admit to the fact that this gives your side a distinct advantage and ask how others feel the process should continue at this point. It is entirely possible that both sides may be able to come to an agreement quickly with so much out in the open. It is also possible that any agreement will simply fall through. Either way, you will know that you did not profit from another individual’s honest mistake and you did not have to lie to anyone to secure a deal.

B. INDIVIDUAL EXERCISE People often talk when they get nervous. Unfortunately, they may also reveal too much information or the wrong kind of information that gives the other person an advantage. Instead of talking, remaining silent may give the other person the feeling that you are confident, or that you know something they do not. Silence puts pressure on the other person to do or say something. Sometimes they have the chance to fully process what you have just said, which could result in a favorable decision for you. It is probably a bad idea to remain silent if you have been asked a question. In that case, silence might indicate a lack of knowledge about a subject. If the conversation has stalled, silence could also be a bad thing. In the example © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 115 Instructor Manual from the book, there was no direct question asked and the conversation hadn’t stalled. The other party was simply contemplating the offer. Attempting to determine when the other person is contemplating something can be difficult, but giving them time to think can have substantial payoffs.

C. GROUP EXERCISE It is important to consider other aspects of the job that might be making the pay lower. For example, is the job in an area where the cost of living is substantially lower than other places? Are there other perks associated with the job such as excellent health care, ample vacation time, or good opportunity for promotion? Does the company have any kind of bonus system that might make up the difference in pay? These questions are all very important. Also, would you be willing to work for less pay because you want to live in the city in which the company is located. Perhaps you feel you do not yet have the experience that would otherwise allow you to ask for more money. Maybe the economy has been down and several people are working for less than the typical pay for their position. Depending on the circumstances, you may want to ask for more money. Statistics show that people’s starting salary can have a large impact on how much money they are able to make over their lifetime. Additionally, the worst that could happen if you ask for more money is not getting it, yet not asking for more will guarantee you will not get it.

IV. Bonus Material Here are the five styles of handling conflict as outlined in the chapter:

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High

Accommodation

Collaboration

Level of Cooperation

Compromise

Avoidance

Competition

Low Low

High Level of Competitiveness

For the following scenarios, list the pros and cons for each style.   

Two employees within a department refuse to collaborate on projects. A group member is constantly showing up late for meetings. Despite a company’s tradition of promoting internally, a management position has been filled by an outsider. Employees who would have been up for the position are upset.

V. Relevant TED Talks for bringing course concepts to life Title: The walk from “no” to “yes” by William Ury http://www.ted.com/talks/william_ury Synopsis: In this talk, William offers different ways to create solutions and agreements in even the most challenging controversial situations “from family conflict to, perhaps, the Middle East”. Title: Beware conflicts of interest by Dan Ariely https://www.ted.com/talks/dan_ariely_beware_conflicts_of_interest Synopsis: Ariely talks about how “the pursuit of knowledge and insight” can be affected and hindered by people’s individual ‘shortsighted’ goals.

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Additional Readings Harvard Business School Press (2007). Managing conflict (Lessons learned series). Boston, MA: Harvard Business School Press. Roy Lewicki, David Saunders, and Bruce Barry (2005). Negotiation. NY: McGraw-Hill. Deepak Malhotra and Max Bazerman (2008). Negotiation genius: How to overcome obstacles and achieve brilliant results at the bargaining table and beyond. Bantam. Leigh L. Thompson (2007). The truth about negotiations. FT Press. William Ury (1993). Getting past no. Bantam.

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Chapter 11

Making Decisions OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. 2. 3. 4.

What do you believe is the role of luck in Rovio entertainment’s success? How did Mikael and Niklas engage in rational decision making? Explain. Which of the Heds’ decisions may be characterized as intuitive decisions? Did the founders of Rovio engage in creative decision making? Explain your answer using examples.

I. Discussion Questions A. UNDERSTANDING DECISION MAKING 1. What do you see as the main difference between a successful and an unsuccessful decision? How much does luck versus skill have to do with it? How much time needs to pass to know if a decision is successful or not? A successful decision is one what meets the needs of the decision maker. Depending on the topic to be decided, some time will need to pass before we can be sure that the decision was successful or not. Students will recognize that both luck and skills have to do with the outcomes of the decision-making process. 2. Research has shown that over half of the decisions made within organizations fail. Does this surprise you? Why or why not? Student answers will vary. Many decisions fail because decision makers fail to consider all alternatives, do not set the decision criteria before making the decision, or adopt short-term as opposed to long-term goals. 3. Have you used the rational decision- making model to make a decision? What was the context? How well did the model work? Rational decision making is likely to be more effective when it is cost-effective to generate all alternatives and evaluate the pros and cons of all alternatives. When the decision is important and there is a quality requirement, using rational decision making will be a good idea. 4. Share an example of a decision where you used satisficing. Were you happy with the outcome? Why or why not? When would you be most likely to engage in satisficing? Students will likely identify many examples of satisficing from their personal lives, such as how they found a part time job or how they found an apartment to live. You may want to engage them in a conversation of when it is appropriate to make satisficing decisions and when it is less appropriate. © Bauer & Erdogan 2016, published by Flat World Knowledge 

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Do you think intuition is respected as a decision-making style? Do you think it should be? Why or why not? Intuition can be an effective decision-making style for people who have extensive experience in the area. Yet, for inexperienced individuals, intuition may lead to poor decision making. Moreover, in organizations we are accountable for the decisions we make. As a result, even when making decisions based on intuition, it is important to be able to justify the decisions we make to others in the organization.

B. FAULTY DECISION MAKING 1. Describe a time when you fell into one of the decision-making traps. How did you come to realize that you had made a poor decision? You may want to ask this question after discussing each of the decision-making traps. Students will likely have experience with overconfidence, hindsight, and escalation of commitment biases from their personal or professional lives. 2. How can you avoid escalation of commitment? Escalation of commitment can be avoided by having predetermined cutoff points, by ensuring that long-term projects are evaluated periodically, and ensuring that the decision to continue with a decision is made by someone who is different from the person who made the original decision. 3. Share an example of anchoring. Anchoring is the tendency for individuals to rely too heavily on a single piece of information. For example, when renting an apartment, we may be heavily affected by how clean the apartment is, and ignore other important elements such as the neighborhood in which the apartment is located or how big it is. 4. Which of the traps seems the most dangerous for decision makers and why? Each of these will be dangerous and costly for decision makers. Dealing with escalation of commitment is particularly costly, because even when we are aware of the existence of such a tendency, we may not be able to prevent it. In fact, being patient with our initial decision despite early setbacks may sometimes be the more effective course of action. Deciding when we are being properly patient or escalating in our commitment will be challenging.

C. DECISION MAKING IN GROUPS 1. Do you prefer to make decisions in a group or alone? What are the main reasons for your preference? Student answers to this question will vary. You may want to highlight the advantages of individual and group decision making and how each style will be appropriate in different circumstances. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 120 Instructor Manual 2. Have you been in a group that used the brainstorming technique? Was it an effective tool for coming up with creative ideas? Please share examples. You may follow up this question by having a brief brainstorming exercise on a subject such as “how would you raise $10,000 within a week without borrowing from someone?” 3. Have you been in a group that experienced groupthink? If so, how did you deal with it? You may suggest different ways of dealing with groupthink such as assigning someone the role of playing devil’s advocate, ensuring that the team leader does not share his or her preferences until everyone gets a chance to speak, setting two teams to work on the same problem, etc. 4. Which of the decision-making tools discussed in this chapter (NGT, Delphi, and so on) have you used? How effective were they? Student experience with the different methods will vary. When experiences of ineffective use of these techniques are shared, you may want to ask them to share the details of their process to see whether the process was carefully followed.

D. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. How can you assess if you are making ethical decisions or not? This may be a good point to examine how students evaluate the ethicality of a decision. An interesting point is that business students are likely to use the rationale of “this is how businesses are run” or “all the other companies are doing this” as a potential justification for their own actions. You may want to highlight the problems with this rationale. 2. Have you seen examples of ethical or unethical decisions being made? Describe what you observed. Student answers to this question will vary. You may follow up their answers with questions about how these situations could have been prevented. Also, you may want to assess whether there is consensus in the types of actions students view as ethical or unethical. 3. Have you seen examples of national culture affecting decision making? National culture is an important influence over decision making. For example, in power distant cultures, decision-making authority is concentrated at higher levels in the organization. In uncertainty avoidant cultures, decision making tends to be risk averse and follows procedures, protocols, and tradition. In collectivistic cultures, more employees are involved in the decision-making process. 4. What advice surrounding decision making would you give to someone who will be managing a new division of a company in another culture?

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Organizational Behavior 2.0 – Bauer and Erdogan 121 Instructor Manual Here, you may want to ask them to think of a specific country they are familiar with, and ask students to identify the differences they see in decision-making processes compared to the United States. 5. What can go wrong when cultural factors are ignored? Trying to impose one country’s decision-making norms on a different culture will likely not work and will alienate employees as well as potentially leading to ineffective decision making.

E. HOW POOR DECISIONS CAN DERAIL AN ICON: THE CASE OF EASTMAN KODAK 1. Do you feel that Kodak’s bankruptcy was inevitable? How did high-level decision making contribute to this situation? With the type of product that Kodak made, and the inevitable innovations of technology, it is not surprising that the demand  for film roll cameras significantly decreased once the simpler, faster and more efficient digital cameras came appeared on the market. 2. What decision-making errors do you think contributed to the problems of Kodak? The inability for Kodak to react in time to the new digital age of camera severely damaged the company’s ability to grow and remain up to date with societies’ new technological advancements. Some decision making biases that may have contributed to the problems of Kodak include: anchoring and adjustment & judgment on correlation and causality. 3. What do you think Kodak should have done to arrive at a different outcome? Three good strategies Kodak could have used to save their company would have been adapt, modify, and rearrange. They should have adapted to the new hot product on the market and attempted to create their own version that would please customers. Similarly, they could modify prices of old products and modify new products to make them more useful and resourceful. Rearranging layouts, company structure and advertisements would put more attention on Kodak, and having this attention will give them the social capital that they need to innovate. 4. What are the decision-making lessons you would draw from this case? Making decisions quickly and following through on new plans. Working half heartedly to transform a company will not be efficient. Putting time in effort into renovating their brand as quickly as possible is the best way to give the company a chance in our fast paced society.

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II. End of Chapter Materials A. ETHICAL DILEMMA Herb’s Concoction (and Martha’s Dilemma): The Case of the Deadly Fertilizer Martha Wang worked in the Consumer Affairs Department of a company called Herb’s Garden Products. Martha was a relatively new employee and had worked there only six months, while most employees at Herb’s had been with the company since its beginning back in 1958. She enjoyed her job and hoped to be promoted at her next performance appraisal. One especially exciting part of working at Herb’s was that they had made a public commitment to protecting the environment. There were regular meetings at work about the choice to brand the organization in this way, sell their products at “green” markets, and capture some of the growing consumer market for natural products. Martha’s values were closely aligned with this mentality, so she really loved her new job at Herb’s Garden Products. How quickly things change. One day Martha received a call from a dissatisfied customer who complained that Herb’s Special Fertilizer Mix had killed her dog, an expensive and beloved toy poodle. Martha knew that the fertilizer was made mostly of fish byproducts and chicken manure, but she had also heard there was a “secret ingredient” that had been revealed to long-time employees. The company had advertised the product as “safe enough to eat for breakfast” and “able to work wonders on any plant.” However, Martha had used the product only once herself. Shortly after applying the fertilizer, Martha found several dead birds near the garden where she had spread the most fertilizer. At the time, she convinced herself this was just a coincidence. Listening now to this customer describe the death of her small dog after lying on the soil near the fertilizer, Martha began to wonder if those birds had perished for the same reason. Martha took the customer’s name and number and went immediately to her boss. Martha’s boss was Herb’s nephew, Mac. Once Martha explained her story about her own experience with the fertilizer and the customer’s claim that it killed her dog, Mac began to smile. “Some people will complain about the littlest things,” Mac said. Martha protested that it was her job as a consumer affairs officer to address the serious concerns of this customer and follow company procedure to ensure the safety of future customers and their pets. Mac laughed and said, “You really believe that something is wrong with our product? We’ve been selling this fertilizer for thirty-five years. People love it! Now and again someone whines about finding dead animals but that’s just their imagination. After all, we use all natural ingredients!” Martha thanked Mac for his help and slowly headed back toward her cubicle. She felt extremely confused and torn about her role at this point. What should she tell the customer when she called her back? Was the fertilizer safe? Should she worry about working in a place with potentially dangerous products? What about quality issues for the company’s products in general? Were Herb’s other products unsafe or of poor quality? What might be the © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 123 Instructor Manual environmental impact of this product as it runs off into lakes and streams? As her head began to spin with the difficulty of the task ahead of her, the phone suddenly rang. It was Herb himself, the owner and founder of the company. “Martha,” the voice on the other line whispered, “Herb’s Special Fertilizer is our best seller! Don’t let us down.” Now it is your turn: What kind of decision does Martha face? What are some of her decision-making challenges? What recommendations do you have for a company facing this situation? What should they do to deal with this customer complaint? From the perspective of the management at Herb’s Garden Products, what are some next steps that could be taken? Source: Jeanne Enders, Portland State University. Used by permission of the author.

B. INDIVIDUAL EXERCISE The Art of Choosing In a book entitled The Art of Choosing, author Sheena Iyengar shares a sixstep process for helping you decide between how you spend your time at work and/or school. These are summarized below: 1. Record all the different categories of tasks you face in a given week. Spend ten minutes on this. 2. Now record all your responsibilities, tasks, and choices for a given week for 10 minutes. The more detail you can capture the better. 3. Review the list you generated in step 2. Which can you easily cut? Which things are redundant or unimportant? Cross out at least 50% of your list (or 75% if you are feeling ambitious). 4. For the remaining items on your list, imagine the challenge you face in doing this item. Imagine the potential outcome of doing it. Weigh whether or not this task is worth doing or not. Now cross out items that are more frustrating than rewarding. Do this until you have no more than ten to fifteen items remaining. 5. Consider which categories these surviving items belong to from the first step. 6. How much value do you personally bring to each category of tasks/categories?  What can you do that no one else will be able to do as well as you? Where should you try to condition yourself to choose the best options and where should you settle for satisficing? Go through your list one last time and try to cross out all but three to five of your top priorities.

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C. GROUP EXERCISE Moon Walk and Talk Warning: Do not discuss this exercise with other members of your class until instructed to do so. You are a member of the moon space crew originally scheduled to rendezvous with a mother ship on the lighted surface of the moon. Due to mechanical difficulties, however, your ship was forced to land at a spot some 200 miles (320 km) from the rendezvous point. During reentry and landing, much of the equipment aboard was damaged, and because survival depends on reaching the mother ship, the most critical items available must be chosen for the 200-mile (320 km) trip. Please see the list of the 15 items left intact and undamaged after landing. Your task is to rank the items in terms of their importance for your crew to reach the rendezvous point. Place the number 1 by the most important, 2 by the next most important, and so on with 15 being the least important. Source: Adopted from NASA Educational Materials http://www.nasa.gov/audience/foreducators/topnav/materials/listbytype/Survival_Lesson.html .

Undamaged Items

My Ranking

Group Ranking

NASA Rankin g

Box of matches Food concentrates 50 feet of nylon Parachute silk Portable heating unit Two 45-caliber pistols One case dehydrated milk Two 100 lb. tanks oxygen Stellar map (of moons constellations) Life raft Magnetic © Bauer & Erdogan 2016, published by Flat World Knowledge 

My Difference

Group Difference

Organizational Behavior 2.0 – Bauer and Erdogan 125 Instructor Manual compass 5 gallons of water Signal flares First aid kit containing injection needles Solar powered FM receivertransmitter

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA Martha is facing a very difficult decision. To move forward with her suspicion may cost her a job she truly enjoys. To not act on her suspicion might bring harm to customers. If Martha overreacts the reputation of the company may be severely harmed, and if she just lets the situation slide a customer may be severely harmed. It would seem prudent, based on the information at hand, to at least investigate the claim. It would not be difficult to determine the safety of the company’s fertilizer. If the fertilizer is indeed dangerous for animals, the company has an obligation (by law) to disclose the information. The customer should probably be assured that an investigation is being done, and management should not attempt to hide any negative properties of their product. If it works well, customers will likely still buy it based on performance. On the other hand, cover-ups generally end badly. The company’s reputation would likely be tarnished beyond repair if any problems with the fertilizer were revealed through other channels (such as a lawsuit).

B. INDIVIDUAL EXERCISE The Art of Choosing In a book entitled The Art of Choosing, author Sheena Iyengar shares a sixstep process for helping you decide between how you spend your time at work and/or school. These are summarized below: 7. Record all the different categories of tasks you face in a given week. Spend ten minutes on this. 8. Now record all your responsibilities, tasks, and choices for a given week for 10 minutes. The more detail you can capture the better. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 126 Instructor Manual 9. Review the list you generated in step 2. Which can you easily cut? Which things are redundant or unimportant? Cross out at least 50% of your list (or 75% if you are feeling ambitious). 10. For the remaining items on your list, imagine the challenge you face in doing this item. Imagine the potential outcome of doing it. Weigh whether or not this task is worth doing or not. Now cross out items that are more frustrating than rewarding. Do this until you have no more than ten to fifteen items remaining. 11. Consider which categories these surviving items belong to from the first step. How much value do you personally bring to each category of tasks/categories?  What can you do that no one else will be able to do as well as you? Where should you try to condition yourself to choose the best options and where should you settle for satisficing? Go through your list one last time and try to cross out all but three to five of your top priorities. Student’s answers will vary; their lists will vary and how they edit their lists will also vary.  Each individual brings their own twist to the table, and how they perform tasks. Some individuals may be better equipped for certain things than others and can teach the others how to be a more efficient employee.

C. GROUP EXERCISE NASA Moon Survival Solution Scoring Instructions Compare your individual and group rankings to the expert’s rankings. Take the absolute value of the difference between your answer and the expert answer. For example, imagine that you put the box of matches as 13 but the experts put it as 15. You would write “2” in the Individual Difference column. Then do the same for the group difference. Do this for all 15 items. Moon Walk and Talk Source: NASA Educational Materials http://www.nasa.gov/audience/foreducators/topnav/materials/listbytype/Survival_ Lesson.html Undamaged Items

My Ranking

Group Ranking

NASA Rankin g

Box of matches

15

Food concentrates

3

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My Difference

Group Difference

Organizational Behavior 2.0 – Bauer and Erdogan 127 Instructor Manual 50 feet of nylon

7

Parachute silk

12

Portable heating unit

8

Two 45-caliber pistols

11

One case dehydrated milk

9

Two 100 lb. tanks oxygen

1

Stellar map (of moons constellations)

6

Life raft

10

Magnetic compass

13

5 gallons of water

2

Signal flares

14

First aid kit containing injection needles

5

Solar powered FM receivertransmitter

4

The preceding rankings were adopted from a NASA scientist, Dr. Carlton Allen. Dr. Allen is the curator and manager of the Astromaterials Research and Exploration Science (ARES) Astromaterials Acquisition and Curation Office. His office is responsible for protecting, preserving, and distributing extraterrestrial samples to help others learn more about solar system exploration such as the Apollo Moon rocks and regoliths, Antarctic meteorites, and particles of solar wind. Dr. Allen’s background is in planetary science. He notes that the type of lander in which you were traveling would determine your course of action if you landed on the wrong place on the Moon. If you were in a two-stage lander (one stage for descent and one stage for ascent, like the Apollo lunar module), they suggested that you terminate the surface mission, head back to orbit, rendezvous with Orion in lunar orbit, and head home. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 128 Instructor Manual If returning home was not a choice and you were stuck on the Moon, experts suggested that you sit tight and wait for someone at the outpost to come and get you. They agreed that the safest thing to do in this situation, as in most emergencies, is to stay put and call for help. If someone from the outpost cannot reach you, then you have no option other than to try to make it to the outpost. The rankings and explanations below indicate how each expert ranked the items to help you reach the outpost. The rationale for specific rankings Rankin g

Item

Expert Rationale

15

Box of matches

3

Food concentrates

8

15 meters (about 50 feet) of nylon rope

13

Parachute silk

8

Portable heating unit

11

Two 45-caliber pistols

“Matches are virtually useless on the Moon because there is little oxygen.” “Food concentrate is a good source of food and an efficient way to carry it.” “The nylon rope is useful in scaling cliffs or craters you have to cross. To prevent injury or in case you cannot walk, rope is helpful for tying you to others.” “Compared to other items, this item is of little use.” Your space suit will keep you relatively warm, but it couldn’t hurt to have an additional heat source. Can be used to propel you across craters if you are in the life raft.

9

One case dehydrated milk

1

Two 100 lb. tanks oxygen

6

Stellar map (of the Moon’s constellations)

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Nutritional value but hard to drink without water to mix it with. Just drinking the water is a better first choice. “With basically no atmosphere on the Moon, oxygen (O2) to breathe is the most pressing survival need. The average person needs about 0.84 kilograms (a little less than 2 pounds) of O2 per day.” “A map of the Moon’s surface is your primary way to identify your location and help you navigate.”

Organizational Behavior 2.0 – Bauer and Erdogan 129 Instructor Manual 10

Life raft

13

Magnetic compass

2

38 liters (10 gallons) of water

14

Signal flares

5

First aid kit

4

Solar powered FM receivertransmitter

“A life raft is of little use for survival on the Moon. Although it could be used to drag heavy items, the sharp regolith would quickly puncture the raft.” “The moon has no global magnetic field, which makes a magnetic compass virtually useless.” “Though we believe there is some water in the form of ice on the Moon, there is no liquid water. Water is essential to all life. Currently, each astronaut aboard the International Space Station (ISS) uses about 11 liters (3 gallons) of water daily.” These would also be relatively useless due to the lack of oxygen on the moon. “No matter where you are, a first aid kit is a good idea. Be sure to carry pain medication and medicine for infections.” “Hopefully people from the lunar outpost are looking for you while you are trying to reach them. A solar-powered radio receivertransmitter is important to maintain this communication.”

IV. Relevant TED Talks for bringing course concepts to life A. Title: Are we in control of our own decisions? by Dan Ariely http://www.ted.com/talks/dan_ariely_asks_are_we_in_control_of_our_own_de cisions Synopsis: Dan Ariely (behavioral economist) questions how rational humans are when making decisions. He uses visual illusions as well as his own research to prove his point. B. Title: The art of choosing by Sheena Iyengar https://www.ted.com/talks/sheena_iyengar_on_the_art_of_choosing

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Organizational Behavior 2.0 – Bauer and Erdogan 130 Instructor Manual Synopsis: Sheena talks about how humans make decisions and how we feel when we make decisions. She looks at the attitudes of choice in both smaller decisions as well as larger decisions C. Title: Why we made bad decisions by Dan Gilbert https://www.ted.com/talks/dan_gilbert_researches_happiness#t-673185 Synopsis: Dan goes in debt at how human’s perceptions of value are altered by superficial constructs and how this hinders our ability to judge whether a decision is valuable or not worth it.

Additional Readings Max H. Bazerman (2005). Judgment in managerial decision making. Austin, TX: Leyh Publishing, LLC. Gary Belsky and Thomas Gilovich (1999). Why smart people make big money mistakes and how to correct them: Lessons from the new science of behavioral economics. NY: Simon & Schuster. Mihaly Csikszenhmihalyi (2003). Good business: Leadership, flow, and the making of meaning. NY: Viking. Malcolm Gladwell (2005). Blink: The power of thinking without thinking. NY: Little, Brown and Company. Sheena Iyengar (2011). The art of choosing. Twelve. Daniel Kahneman (2013). Thinking, fast and slow. Farrar, Straus and Giroux Gary A. Klein (2003). Intuition at work: Why developing your gut instincts will make you better at what you do. NY: Random House, Inc. Steven D. Levitt and Stephen J. Dubner (2005). Freakonomics: A rogue economist explores the hidden side of everything. NY: HarperCollins. Paul C. Nutt (2002). Why decisions fail: Avoiding the blunders and traps that lead to debacles. San Francisco, CA: Berrett-Koehler Publishers. Barry Schwartz (2005). The paradox of choice: Why more is less. Harper Perennial.

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Chapter 12

Leading People Within Organizations OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. Indra Nooyi is not a typical CEO. How does she differ from your idea of what a typical CEO is like? How do you think your current image of CEOs was created? 2. Indra Nooyi is touted as being “unusually collaborative” for someone in charge of a Fortune 500 company. Why do you think her level of collaboration is so unusual for top executives? 3. Do you think Nooyi’s story represents a transition of American companies to a different type of leader or simply a unique case? 4. Pepsi-Cola dates back to 1898 and officially became PepsiCo after merging with Frito-Lay in 1965. What are some challenges the CEO faces today that were not an issue at that time? What are some aspects that make the position easier in modern times? 5. If you were in Indra Nooyi’s shoes, what direction would you take the company, given the success you have had thus far? What are some challenges that could arise in the near future for PepsiCo?

I. Discussion Questions A. WHO IS CONSIDERED A LEADER? TRAIT APPROACHES TO LEADERSHIP 1. What traits are evident in leaders you admire? What traits does this person have? Are they consistent with the traits discussed in this chapter? If not, why is this person effective despite the presence of different traits? This question does not have a right or wrong answer and aims to engage students into conversation. One interesting point that may arise from the discussion is that often students mention behaviors as well as traits in answer to this question. This may be a good point to differentiate traits and behaviors and pose the question of whether traits or behaviors would predict leadership. Also, a follow-up question could be identifying factors that would make certain traits more or less relevant for leadership effectiveness. 2. Can the findings of traits approaches be used to train potential leaders? Which traits seem easier to teach? Which are more stable? Here, you may discuss the issue of whether traits are teachable. Students may identify the big five personality traits as less likely to change as a result of organizational training programs. Intelligence and integrity are also challenging to teach via organizational training. In other words, the main value of the trait © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 132 Instructor Manual approach to leadership may be helping organizations identify individuals with leadership potential. 3. How can organizations identify future leaders with a given set of traits? Which methods would be useful for this purpose? Organizations may use personality tests for this purpose. Furthermore, assessment centers may be useful to distinguish individuals possessing leadership traits from those who do not. Assessment centers involve two-to-three-day programs where candidates engage in a number of structured tasks and their performance is rated by professionals. 4. What other traits can you think of that would be relevant to effective leadership? Students may identify a number of traits that may predict leadership in different circumstances, such as desire to lead, internal locus of control, trustworthiness, etc.

B. WHAT DO LEADERS DO? BEHAVIORAL APPROACHES TO LEADERSHIP 1. Give an example of a leader you admire whose behavior is primarily task oriented, and one whose behavior is primarily people oriented. Student answers will vary for this question. It may be a good idea to ask students whether primarily task-oriented or people-oriented leaders can be successful, or if effective leadership is the ability to demonstrate a combination of both behaviors. 2. What are the limitations of autocratic decision making? Under which conditions do you think autocratic style would be more effective? Authoritarian decision making has a number of limitations: Lack of employee participation may make employees feel disengaged. The decision may not be of high quality if information pertaining to the decision resides in a number of different individuals. Authoritarian leadership may lead to employees working hard when the leader is around and slacking when the leader is not present. At the same time, if leaders and employees do not share organizational goals to be attained, if employees do not have the expertise or information necessary to make the decision or participate in the decision-making process, or if employees are not interested in participating, then authoritarian decision making may be effective. 3. What are the limitations of democratic decision making? Under which conditions do you think democratic style would be more effective? Democratic decision making also has downsides: It takes a long time and is unlikely to be useful when there is time urgency. It may lead to higher levels of political behaviors on the part of employees. If employees do not have the abilities, skills, or information relevant to the decision, democratic decision making may lead to an ineffective decision. This decision-making style will be more effective when employees are capable of, and interested in participating in the decisionmaking process and when there is not a time urgency. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 133 Instructor Manual 4. What are the limitations of laissez-faire decision making? Under which conditions do you think laissez-faire style would be more effective? This decision-making style may lead to high levels of conflict among employees and a high level of role ambiguity. Therefore, when the group is highly cohesive and when employees have a clear idea what needs to be done and why, this leadership style is more likely to be effective. 5. Examine your own leadership style. Which behaviors are you more likely to demonstrate? Which decision-making style are you more likely to use? Student answers will vary for this question. Students are likely to believe that democratic decision making and people-oriented styles are the best styles, and therefore engaging them in a conversation of when authoritarian leadership and task-oriented leadership may be needed would be a good idea.

C. WHAT IS THE ROLE OF THE CONTEXT? CONTINGENCY APPROACHES TO LEADERSHIP 1. Do you believe that the least preferred coworker technique is a valid method of measuring someone’s leadership style? Why or why not? The LPC scale has been criticized by researchers, so it would be interesting to capture student perceptions of whether this is a useful scale or not. 2. Do you believe that leaders can vary their style to demonstrate directive, supportive, participative, and achievement oriented styles with respect to different employees? Or does each leader tend to have a personal style that he or she regularly uses toward all employees? This question aims to find out whether students feel that leaders are, or should be flexible to change their style based on the demands of the situation. According to research findings, developing the flexibility to demonstrate different styles at different times is an important determinant of leadership effectiveness. Yet, this is easier said than done. Someone who is a directive leader may find it very difficult to adopt the participative leadership style even when the situation requires. These leaders may still have a successful career if they select situations in which their leadership style will be needed. 3. What do you see as the limitations of the Vroom-Yetton leadership decision-making approach? Students will likely bring up how complicated the model is. Yet, the criteria used in this model will likely help leaders decide how much participativeness is called for in a given situation. Furthermore, students may identify another limitation of the model: The “right” answer depends on how decision makers answer the numerous questions that are part of the model, and their answers to these questions may well be biased. In other words, someone who is in favor of using authoritarian decision making may answer the question of “Do I have sufficient information to make the decision alone” affirmatively.

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Organizational Behavior 2.0 – Bauer and Erdogan 134 Instructor Manual 4. Which of the leadership theories covered in this section do you think are most useful and least useful to practicing managers? Why? Student answers to this question will vary. It may be an interesting exercise to contrast their answers with the level of research support the theory gathered.

D. WHAT’S NEW? CONTEMPORARY APPROACHES TO LEADERSHIP 1. What are the characteristics of transformational leaders? Are transformational leaders more effective than transactional leaders? Here you may point out that the effective leadership style depends on the situation. Both transformational and transactional leadership styles are related to positive outcomes, except for passive management by exception. 2. What is charisma? What are the advantages and disadvantages of charismatic leadership? Should organizations look for charismatic leaders when selecting managers? The advantage of charisma is the high level of influence charismatic leaders will have on their followers. Someone possessing charisma will find it easier to change someone else’s behaviors. At the same time, there is no guarantee that charismatic leaders will be effective, and followers may be less likely to question the actions of charismatic leaders. Organizations may want to look for charismatic leaders during times of transformational change. For example, if the organization needs a different culture, a leader who possesses charisma may find it easier to achieve this transformation. 3. What are the differences (if any) between a leader having a high-quality exchange with employees and being friends with employees? While a high-quality exchange relationship may also involve friendship, it does not have to. A leader and member may have a trust-based relationship. They may like each other and mutually respect each other, and yet they may not spend any time together outside of their work hours and the relationship may be confined solely to the domain of a work relationship. You may also ask a follow-up question of whether leader/member friendships will lead to higher performance and other positive outcomes. 4. What does it mean to be a servant leader? Do you know any leaders whose style resembles servant leaders? What are the advantages of adopting such a leadership style? Servant leadership is a leadership approach that defines the leader’s role as serving the needs of others. Employee happiness is seen as an end in itself, and servant leaders sometimes sacrifice their own well being to help employees succeed. Research shows that servant leadership has a positive impact on employee commitment, employee citizenship behaviors toward the community (such as participating in community volunteering), and job performance.

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Organizational Behavior 2.0 – Bauer and Erdogan 135 Instructor Manual 5. What does it mean to be an authentic leader? How would such a style be developed? The authentic leadership approach embraces the value of “being yourself.” Authentic leadership requires understanding oneself. Therefore, in addition to selfreflection, feedback from others is needed to gain a true understanding of one’s behavior and its impact on others. The individual exercise for this chapter provides a structure for the self-reflection part of developing authentic leadership.

E. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. What is the connection between leadership and ethical behaviors? Many students will rightly identify the connection between the ability to trust someone and leadership. In other words, someone who does not demonstrate ethical behaviors is unlikely to be perceived as a leader. At the same time, leaders are a powerful influence over the level of ethics within an organization. They serve as role models, develop the organizational culture, and the way they reward and punish different kinds of behaviors influence the ethical climate in an organization. 2. Do you believe that ethical leaders are more successful in organizations? This question is difficult to answer with certainty, but it seems that in the long run, ethical leadership may win the day. In the short run, unethical behaviors may go unnoticed and these behaviors may help a leader be successful and get ahead in the short run. Yet, unethical behaviors are eventually discovered, affecting the reputation of the individual, as well as the future success of the person in question. You may discuss a specific example such as lying on one’s resume. As long as the lie is not detected, it may help the person get ahead. Yet, once it is found out, it becomes an enormous handicap for the person for the rest of his or her career. 3. Which of the leadership theories seem to be most applicable to other cultures? Which ones are culturally dependent? Many of the leadership theories identified in this chapter have been validated in different cultures. When applying these theories to different cultures, certain modifications may be needed. For example, it seems that charisma is understood and valued around the globe, but the factors which lead someone to be viewed as a charismatic leader are culturally determined.

F. LEADERSHIP DEVELOPMENT: THE CASE OF STARBUCKS 2. Why does Starbucks Coffee consider internal leadership development such an important part of its core business process? Internal leadership development ensures that the organizational culture of the company is maintained with every CEO successor. In doing this, Starbucks strives to attract future business leaders and managers to run their stores in the future. Leadership is not only ingrained in the upper staff but through all employees in the organization.

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Organizational Behavior 2.0 – Bauer and Erdogan 136 Instructor Manual 3. What possible negative repercussions can the aggressive growth strategy that Starbucks exhibits have on its leadership agenda? As demonstrated in the example in the text, the recession of 2009 forced Starbucks to adjust its accelerated growth of the company. In instances in which the economy is down, spreading a company out too thin (Starbucks is very close to this) the organization as a whole can suffer greatly. 4. Over time, how can Starbucks ensure that the importance of leadership development does not get overlooked? By retaining the leadership values in every new CEO and employee, and continually referring to their employees as partners. As more and more people apply for a job at Starbucks, there is an assurance that Starbucks can cultivate talented leaders in the large pool of possible employees that they have. 5. How does your experience with leadership and management compare with the case of Starbucks? Student’s answers will vary. They will give any personal recollections or experiences that they have had in leadership roles or in the workforce and how they compare with the strategies used at Starbucks that are described in this text.

II. End of Chapter Materials A. ETHICAL DILEMMA You are currently a department manager and Jim is your “trusted assistant.” You have very similar working styles, you both went to the same college and worked in the insurance industry for several years. Before working in this company, you both worked at a different company and you have this shared history with him. You can trust him to come to your aid, support you in your decisions, and be loyal to you. Because of your trust in him, you do not supervise his work closely, and you give him a lot of leeway in how he structures his work. He sometimes chooses to work from home, and he has flexibility in his work hours, which is unusual in the department. Now you decided to promote him to be the assistant department manager. However, when you shared this opinion with someone else in the department, you realize that this could be a problem. Apparently, Jim is not liked by his colleagues in the department and is known as an “impression manager.” Others view him as a slacker when you are not around, and the fact that he gets the first pick in schedules and gets the choice assignments causes a lot of frustration on the part of others. They feel that you are playing favorites. Discussion questions: 1. What would you do? 2. Would you still promote him? 3. How would you address this unpleasant situation within your department?

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B. INDIVIDUAL EXERCISE Ideas for developing yourself as an authentic leader Authentic leaders have high levels of self-awareness, and their behavior is driven by their core personal values. This leadership approach recognizes the importance of self-reflection and understanding one’s life history. Answer the following questions while you are alone to gain a better understanding of your own core values and authentic leadership style. Understand your history • Review your life history. What are the major events in your life? How did these events make you the person you are right now? • Think about your role models. Who were your role models as you were growing up? What did you learn from your role models? Take stock of who you are now • Describe your personality. How does your personality affect your life? • Know your strengths and weaknesses. What are they and how can you continue to improve yourself? Reflect on your successes and challenges • Keep a journal. Research shows that journaling is an effective tool for selfreflection. Write down challenges you face and solutions you used to check your progress. Make integrity a priority • Understand your core values. What are your core values? Name three of your most important values. • Do an ethics check. Are you being consistent with your core values? If not, how can you get back on track? Understand the power of words • Words shape reality. Keep in mind that the words you use to describe people and situations matter. For example, how might the daily reality be different if you refer to those you manage as associates or team members rather than employees or subordinates? In view of your answers to the questions above, what kind of a leader would you be if you truly acted out your values? How would people working with you respond to such a leadership style?

C. GROUP EXERCISE You are charged with hiring a manager for a fast food restaurant. The operations within the store are highly standardized, and employees have very specific job descriptions. The person will be in charge of managing around thirty employees. © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 138 Instructor Manual There is a high degree of turnover among employees so retention will be an important priority. Most employees who work in the restaurant are young with low levels of work experience and few of them view the restaurant business as a full time career. The atmosphere in the restaurant has a fast pace. In this company, managers are often promoted from within and this position is an exception. Therefore, the incoming manager may not receive a warm welcome from employees who were passed over for a promotion and their colleagues. Finally, the position power of the manager will be somewhat limited because employees are unionized. Therefore, the manager will have limited opportunities for distributing pay raises or bonuses. Discussion Questions 1. Identify the leadership traits and behaviors that are desirable for this position. 2. Design an approach to selecting this person. Which methods of employee selection would you use? Why? 3. Develop interview questions to be used in hiring this manager. Your questions should be aimed at predicting the leadership capabilities of the person in question.

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA Unfortunately it is not uncommon for an individual to be promoted for reasons other than work performance. In the dilemma presented here, it is difficult to determine if Jim’s work is good or bad. Others say he is a slacker when you are not around, but they are also clearly jealous (rightfully so) that Jim gets such preferential treatment. Jim very well could be an impression manager and still do quality work. Perhaps he appears to be slacking off to other employees because he is able to do a great deal of work from home. At the same time, perhaps you have a skewed opinion of Jim because of your history together. Maybe you aren’t seeing problems with Jim’s work because you do not supervise him very closely. It might be a good idea to institute a 360-degree performance appraisal system and gather performance information from multiple sources. If there is someone else more deserving of the promotion, this review process should be able to identify that person. Because you have a close relationship with Jim, it may also be effective to speak with him directly regarding the concerns of other employees. Regardless of how the situation is addressed, playing favorites with promotions can often backfire. Employees can easily become disgruntled if they feel promotion systems are unfair. Additionally, if an alternate employee would have made a better candidate, then the company is hurt by not having the best person available for the job. If Jim is the best candidate, then the reasons for his © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 139 Instructor Manual promotion should be laid out for other employees. This is often done when a company brings in an outside candidate for a job opening rather than promoting internally. By identifying the specific qualifications, the other employees are more likely to give credibility to the decision. Aside from promotion issues, it may still be necessary to address some of the favorability Jim is receiving. If working from home is unusual, yet Jim is allowed to because of his personal relationship with you, other employees should have the opportunity as well. Creating an unfair environment with a single employee can bring down the morale of others and result in decreased efficacy and cooperation.

B. INDIVIDUAL EXERCISE Understand your history Events in people’s lives inevitably shape who they are and how they react to new situations. For example, imagine you have been a relatively trusting person your whole life. You have found that time and time again, you can rely on colleagues to take some of the burden of your workload. When you have delegated tasks in the past, the work that comes back is of good quality. One day, however, you have delegated assignments to a new group of individuals. Just before a project is due to be submitted, you get the work back from your colleagues and it is in terrible condition. There is no time to make improvements and you are forced to turn in your project in its current condition, which then causes you to lose a major client and costs you the job. As a result of this situation, you might have trouble working with others in the future. You may become so distrusting of new people you refuse to share the workload, which makes your job incredibly stressful. Take stock of who you are now Personality obviously plays a large role in determining actions you take. Someone who is high in emotional stability could potentially weather severely stressful situations with such grace that others don’t even realize the stressors exist. An extrovert is more likely to have a large social network and these individuals are often thought to be more natural leaders; however, leadership takes more than just extraversion. Additionally, someone who is very high in extraversion but low in political skill may frequently step on others’ toes. If an organization is going through a change, someone high in openness to experience may be able to adapt to the new change quickly, and combined with the right amount of extraversion and political skill, may even be able to convince others to accept the changes. Reflect on your successes and challenges As mentioned previously, journaling is a very useful tool for tracking changes in your life. Do you remember exactly how you thought high school or college would be before you had any exposure to it? Do you remember how you felt about driving when you first got your license? It is often difficult to see how things used to be through the veil of the current circumstances. If you made a decision that turned out to be a bad one, hindsight bias might cause you to become frustrated © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 140 Instructor Manual with yourself for missing a seemingly obvious factor. If you kept a journal, however, you might realize that prior to making the decision you asked several knowledgeable people for input, spent a great deal of time working out pros and cons, and made a very rational, informed decision that just happened to not work out. Furthermore, journaling would allow you to focus on how to prevent such issues in the future by taking a more positive approach to a failure. Maybe while journaling you realize you have been beating yourself up for outcomes that were largely out of your control. Understand the power of words Words do indeed have the power to shape reality. This can be demonstrated with the traditional “glass half empty” saying. By defining a glass as half empty you are focusing on the negative aspect of the situation. Using the term “empty” brings up ideas of doing without something, or an event coming to an end. Other feelings are associated with emptiness such as being sad or lonely. On the other hand, if the glass is half full you are focusing on what you do have. This can translate into looking at a situation based on what you can do to change it, rather than dwelling on what has already happened. The words you use daily will not only affect your own outlook, but they can alter other people’s moods and behavior as well. By calling drawbacks “challenges” you may be setting up a mentality in which people believe something can be dealt with or overcome.

C. GROUP EXERCISE One of the most important traits for this job is likely to be conscientiousness. Managing thirty employees is not an easy job, and since the turnover is so high, the manager will not be managing the same thirty employees from month to month. It will be difficult to keep track of every employee and there will likely be a lot of paperwork involved with cycling through employees at such a high rate. The conscientiousness trait will at least ensure that the corporate and legal responsibilities of the manager are handled and that jobs are performed according to corporate regulations. Managing young people with little to no experience can be stressful, and younger people are more likely to quit without giving advanced notice. At any given time the manager may be short-staffed. To combat the unpredictable nature of the job, an individual high in emotional stability would help to ensure that things at the restaurant still ran smoothly regardless of the chaotic situations that may arise. Extraversion may be more important for this particular management job than other management positions. Younger people, particularly those with no experience, can require direct communication. The type of management required for the job may be difficult for someone who is more introverted. While this need for extraversion does not mean that managers need to be extroverted, in this case it would likely help. Furthermore, a manager low on openness to experience might make a good fit. Because operations of the restaurant are so standardized, someone low in openness to experience might be more resistant to change procedures. While this could be a negative if a change needed

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Organizational Behavior 2.0 – Bauer and Erdogan 141 Instructor Manual to be implemented in regard to following a proven, standardized corporate procedure, resistance to trying new things could help. In terms of desired behaviors, it seems that a people-oriented leadership style may be more important than task-oriented styles. Given the high level of specificity involved in the job descriptions, employees will likely figure out how to perform their jobs very quickly. Instead, the manager will need to gain the trust of the employees and meet their needs. Employees do not seem to view this position as a career and the manager has little control over financial rewards. Therefore, what is left for the manager to do is to try to satisfy employees’ social needs by communicating with them, supporting them and being likeable. The manager may also try to instill in employees a sense of accomplishment by adopting an achievement-oriented style and thereby using goal setting. While employees do not necessarily view this job as a career, the organization has promotion opportunities, making it possible to view this job as a step in the career ladder. Therefore, the manager may act as a coach and engage in goal setting with those who are open to the idea of selecting this job as a long-term career prospect. A personality test could go a long way in finding a candidate that would make a good fit for this job. It would also help to have some kind of interview in which the potential candidate would be told exactly what would be involved with the job. The individual applying for the management position should be aware of the nature of the people that will be managed (young, inexperienced, high turnover). Someone with experience in that type of setting would also be highly beneficial. Experience can be determined through a resume review. Some sample interview questions: Have you worked with young or inexperienced workers previously? Are you capable of creating a schedule for what could potentially be an unpredictable staff? Are you willing to perform regular employee tasks if necessary? Are you willing to enforce corporate policies and correct employees for breaking rules? Can you deal with a high staff turnover? Can you give an example in your past work experience where you dealt with a staffing situation? There is one additional issue that should probably be addressed. Bringing in a new person for the management position rather than hiring internally may upset some employees. Effort should be taken to point out the specific reasons an outsider was brought in. Whatever the qualifications are that made the new manager a good choice should be explained in no uncertain terms to the other employees. By identifying unique skills or experiences that made the outside person the best © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 142 Instructor Manual candidate for the job, employees who were passed over for promotion may be more likely to give the individual credit as opposed to grief.

IV. Relevant TED Talks for bringing course concepts to life A. Title: Lead like the great conductors by Itay Talgam http://www.ted.com/talks/itay_talgam_lead_like_the_great_conductors Synopsis: Itay explains how, comparable to the workforce, in an orchestra, while the musicians create the beautiful music, it is the responsibility of the conductor to ensure harmony, rhythm and unification of the music and those who play it. B. Title: What it takes to be a great leader by Roselinde Torres http://www.ted.com/talks/roselinde_torres_what_it_takes_to_be_a_great_leader Synopsis: Roselinde poses the three crucial questions that future leaders/managers/company chiefs should ask to excel in the future.

Additional Readings Bruce J. Avolio and Fred Luthans (2006). The high impact leader: Moments matter in accelerating authentic leadership development. NY: McGraw-Hill. Jim Collins (2001). Good to great: Why some companies make the leap... and others don't. NY: HarperCollins. Herminia Ibarra (2015). Act like a leader, think like a leader. Harvard Business Review Press. James M. Kouzes and Barry Z. Posner (2003). Credibility: How leaders gain and lose it, why people demand it. NY: Jossey-Bass. Donald T. Phillips (1993). Lincoln on leadership: Executive strategies for tough times. Clayton VIC: Warner Books, Inc. Jeffrey S. Young and William L. Simon (2006). iCon Steve Jobs: The greatest second act in the history of business. Hoboken, NJ: John Wiley and Sons. Ashlee Vance (2015). Elon Musk: Tesla, SpaceX, and the quest for a fantastic future. Ecco. Gary P. Yukl (2009). Leadership in organizations. Upper Saddle River, NJ: Pearson Publishing.

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Chapter 13

Power and Politics OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. Have you read this book?  If so, what did you think about it? If not, do you think you would find value in reading it? Why or why not? 2. Have you ever interacted with someone who used these principles described above too much? What was your reaction to them? 3. Why do you think so many people are attracted to ideas developed so long ago? 4. Would you add or delete anything from Carnegie’s rules for power and influence?  Explain.

I. Discussion Questions A. THE BASICS OF POWER 1. What does the phrase “Power corrupts and absolute power corrupts absolutely” refer to? What experiences have you had that confirm or refute this assumption? This question is posed with the goal of getting the students to understand that without certain limits, having absolute power may lead to unethical behaviors or behaviors that do not consider the implications of one’s actions on others. 2. Thinking about the Milgram and Zimbardo studies, do you think you would behave the same or differently in those situations? Why or why not? Here you may want to highlight that these studies were conducted on ordinary subjects. Yet, when people are given a role and asked to behave in a certain way, they tend to follow their role. You may follow up on this point by describing a situation where a student starts working for a company and supervisors and colleagues expect the person to behave unethically. Students may find themselves in a situation where they justify their unethical actions with the fact that their bosses made them do it. You may ask them to consider that checking our ethical values at the door when we join an organization may be counterproductive to our careers, health and well being as well as the well being of the people we deal with. 3. What lessons can be learned from the past studies of conformity to help avoid abuses of power in the future? One lesson seems to be that unethical behaviors may not always be a function of unethical individuals. Instead, having checks and balances along the way, and

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Organizational Behavior 2.0 – Bauer and Erdogan 144 Instructor Manual encouraging questioning the status quo (such as by using devil’s advocates) may be a good idea. 4. Give an example of someone you are dependent upon. Think about how scarcity, importance, and substitutability affect this dependency. Student answers to this question will vary. If students have difficulty identifying someone who has power over them, you may ask the question of whether an instructor would have power over them and why.

B. THE POWER TO INFLUENCE 1. Which of the six bases of power do you usually draw upon? Which do you use the least of at this time? Student answers will vary for this question, but coercive power will likely be used the least. You may ask them whether the consequences of different power bases are the same. This would be a good place to differentiate between compliance and commitment to a decision and which outcome can be achieved by which power base. 2. Distinguish between coercive and reward power. Coercive power refers to the ability to distribute punishments, while reward power refers to the ability to distribute rewards. At first glance, students may assume that these are two distinctive sources of power. Yet, the consequences of these two sources are not very different from each other. For example, if employees are following the directives of their manager because the manager has the ability to give bonuses, it is also true that the manager has the ability to withhold the bonuses, or using punishment power. Student answers to the latter part of this question will vary. 3. Which tactics seem to be the most effective? Explain your answer. Student answers for this question will vary. According to research, expert power is more likely to lead to commitment to the decision on the part of employees, whereas coercive and reward power has a greater likelihood of yielding resistance or compliance. 4. Why do you think rational persuasion is the most frequently utilized influence tactic? Rational persuasion likely is the most frequently used tactic because it is a desirable trait. Rational persuasion utilizes data and evidence to convince the other party, as opposed to using rhetoric. Its use does not depend on whether someone has charisma or not, and the quality of the data and the logic will likely win the argument. 5. Give an example of someone you’ve tried to influence lately. Was it an upward, downward or lateral influence attempt?

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Organizational Behavior 2.0 – Bauer and Erdogan 145 Instructor Manual Student answers to this question will vary. The point of this question is to allow students to participate in the conversation and reflect on their attempts at influence. There are no right or wrong answers for this question.

C. ORGANIZATIONAL POLITICS 1. Do you think politics is a positive or negative thing for organizations? Why? Most students will likely identify politics as a negative influence over organizational life. Therefore, providing some examples of positive political behaviors would be useful. For example, the project team may be understaffed and the team may be falling behind as a result. The team leader may use his or her connections to approach upper management, and make a case for why their team needs and deserves to have another employee. The manager may use personal appeals or build a coalition with a different manager and defend this agenda. As a result, the team may get the person it needs. In the absence of such political behavior, the team would probably never get what it needed. In other words, political behavior can be a positive influence over organizational effectiveness if the political behaviors are not self-serving. 2. Describe an example of a negative outcome due to politics. High levels of politics have a number of negative consequences such as high stress, low job satisfaction, low performance, and low organizational commitment. 3. Describe an example of a positive outcome due to politics. Positive outcomes may include higher organizational effectiveness in some circumstances. 4. Can you think of additional individual or organizational antecedents of political behavior? Other individual antecedents may include belief in an idea or belief in the agenda to be pursued. When people are highly motivated to get what they want, and if normal official channels are not successful in getting them these items, they may resort to political tactics. Among organizational tactics, an organizational climate encouraging political behaviors will likely create more politics at the individual level. Moreover, in extremely competitive organizations where winner takes all, politics may be higher. 5. What political behaviors have you observed within school groups or your workplace? Were they successful? Why or why not? Student answers will vary. Most students can think of negative instances of political behaviors, and it may be harder for them to identify effective uses of political behaviors.

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D. UNDERSTANDING SOCIAL NETWORKS 1. Have you ever thought about your own social network before? What do you think about it now? Student answers will vary. You may want to point out the benefits of analyzing one’s network and examining its strengths and limitations. Students may be under the assumption that having a strong network means having a large number of contacts. The idea that the structure of the network also matters may be new to most students. Given that you will likely have many students using social networking Web sites such as Facebook or LinkedIn, examining the structure of one’s network may be easier than they think. 2. Do you think the direct or indirect approach to doing a social network analysis is the most accurate? The indirect approach will likely yield more accurate information but it takes a long time to analyze and is not very practical. For example, a person may be going to person A for minor issues and there may be a high level of e-mail exchange between them, but for all the major issues (a couple of times a year), the person may be going to person B. Indirectly examining the frequency of communication between these pairs may be misleading. The direct approach may give accurate information but individuals must be motivated to share this information with a researcher. 3. Do you think it is ethical to play golf or tennis with coworkers to build your social network? Why or why not? There is probably nothing unethical about playing golf or tennis with coworkers to build one’s social network. We all have different needs we are trying to fulfill when we interact with others, and learning from others, expanding our horizons, and building a support network for us are all reasons we spend time with others. This situation becomes more unethical when we stop our relations with others when they are of no use to us. This would violate the norm of reciprocity and in addition to being unethical, it may hurt our reputation as a trustworthy person. Moreover, how we act when we interact with others will also determine the level of ethics in this situation. 4. How have computers influenced social networking? Many students will have some experience with social networking sites, and listening to their experiences will be interesting and informative. Technology is making it possible for us to keep track of our network and find long-lost contacts. It is becoming easier to get help from others or seek information from our network. It also creates some strange situations where people want to add themselves to our network even though we do not consider those individuals as our contacts.

E. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. What could be done to make sure that CEOs are paid fairly for their work rather than as a favor from their friends? © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 147 Instructor Manual CEO pay is one of the most controversial issues we currently have in the United States. You may start by asking the question of how fairness in this situation should be defined. Is it being paid with respect to one’s results, or is it in comparisons to other CEOs of similar companies? If it is with respect to one’s inputs, how those should inputs be defined? Getting the students to think through these issues complete with the downsides of each alternative would help them appreciate the complexities of this situation. 2. What is some advice about power that you would give to a colleague who was leaving to China to set up a new business? You may start by highlighting that China is a high power distance country where power is located at higher levels of the hierarchy and those higher up are not used to sharing of power or being questioned. Moreover, in China influencing others will require more social skills and building connections. Tactics such as building coalitions with others, or using the power of social connections (who you know as opposed to what you know) will be more frequently used in this culture.

F. GETTING CONNECTED: THE CASE OF SOCIAL NETWORKING 1. How is online networking different from or similar to in-person networking? Please describe your experience with both. Social networking allows you to communicate with a larger pool of possible customers and consumers. With social media, you are able to advertise your product with more exposure. In-person networking provides a much more personal and individual experience, which may take more time but shows each customer they are important. 2. What are the downfalls and benefits of social networking? Social networking is comprised of both benefits and downfalls. Benefits include strong ties, which indicate emotional (not simply informational) support. It can be argued that weak ties are also benefits, but in some ways they are downfalls. They include less frequent interaction and less emotional attachment, so while they are not as powerful as a strong tie, one can have more of them. 3. In what ways are indirect ties as powerful and important as direct ties? While direct ties may create a stronger connection with the individual, they are time consuming and hard to maintain. With indirect ties, people are able to have more of them without the emotional burden that direct ties may have. Indirect ties are perfect for marketing and advertising products; you can expose your products to a mass of people. 4. To what extent have you built your own brand? Is this something that you have ever considered before? Student’s answers will vary. They will talk about their personal experience branding and social networking. Some will have more experience with this than others, and some would consider taking on branding and networking as a profession in their future.

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II. End of Chapter Materials A. ETHICAL DILEMMA It is two days before your performance appraisal. Your performance this quarter has been less than desirable. You came close to reaching your sales targets, but you did not meet them, and you are still hoping to get the merit pay raise to be determined as a result of your performance appraisal. You do not really like your manager, but you are hoping to advance in this company, and being on your manager’s good side may be good idea both for your current performance appraisal and for your future in this company. 

You are now at a meeting with your manager and a group of employees. Your manager is giving financial information to all employees about different markets. Yet, some of this information is inaccurate, which could lead to wrong pricing decisions and loss of money by the company. If you correct him, though, he would most likely get upset with you because he does not like being corrected. Would you correct him? How and when?



Today is also the day on which your manager’s boss is collecting information about your manager’s leadership style so that they can give him a 360 degree appraisal. They assure you that your comments about your manager will remain confidential, but the nature of your thoughts is such that probably he would guess you are the person who made those comments. Specifically, you think that your manager takes offense easily, has a bad temper, and could be more effective in time management. Would you share your thoughts with your manager’s manager?



You are now at the coffee shop and grabbing a cup of coffee and some pastries. You notice that they have almond coffee cake, which is your manager’s favorite. Would you pick some up for your manager?

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B. INDIVIDUAL EXERCISE Map Your Social Network1 Step 1: Think of a specific objective you have at work or school that involves other people. Once you have thought of an objective, jot it down. You will refer to this objective throughout the analysis. Step 2: Use Figure 13.14 to list five to fifteen people at your school or in your professional network with whom you have regular contact and who are relevant to the objective you identified. Step 3: Rate how tightly connected you are with the people in your network using the given scale (barely connected, loosely connected, somewhat connected, or tightly connected) on the left-hand side of their name. Step 4: Circle the name of anyone who has introduced you to four or more new people since you have known them. Step 5: In Figure 13.15, place a check mark in the intersecting box of people that know each other. For example, if person 1 knows person 2, put a check mark under the 2 at the top of the table. Continue to do this throughout the grid (grayed boxes should be left blank). Step 6: Analyze your network using the guidelines on the following calculations. Step 7: Consider ways to strengthen your network.

1

Adapted from information in Carpenter, M.A., and Sanders, W.M. (2007). Strategic Management. Upper Saddle River, NJ: Pearson Education; Wasserman, S., and Faust, K. (1994). Social network analysis: Methods and applications. NY: Cambridge University Press; Watts, D.J. (2003). Six degrees: The science of the connected age. NY: W.W. Norton and Company Ltd. © Bauer & Erdogan 2016, published by Flat World Knowledge 

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Figure 13.14

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Figure 13.15

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Organizational Behavior 2.0 – Bauer and Erdogan 152 Instructor Manual Let’s see how your social network adds up: Calculating Network Size The number of people you listed as in your own network for this situation N = ______ Calculating Network Density It is important to understand what the maximum density of your network is. This refers to how dense it would be if everyone in your network knew each other. (N * (N - 1)/2 = M) or ( __ * ( __ - 1)/2 = M) M = ______ Total number of check marks in Figure 13.15, which represents number of relationships among people in your network. C = ______ Density of your network (will range between 0 and 1) C/M=D ___/___= D D = ______ Network Size N = number of people in your network. The more people in your network, the greater the amount of information and possibly access to greater resources you have. We stopped at fifteen people but many individuals have more people in their network than fifteen. Network Strength The strength of your network is also important. You can talk about this in terms of percentages of your relationships. What percentage is very tightly connected? Close? Somewhat connected? Or barely connected?  ___% Tightly Connected  ___% Somewhat Connected  ___% Loosely Connected © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 153 Instructor Manual 

___% Barely Connected

For most people, it would be hard to manage a huge network where all the ties are very close, just by virtue of the amount of time and energy it takes to satisfy the conditions for closeness. Identifying Central Connectors Count how many names you circled in step 4. Each of these individuals plays a special role in your network as they are central connectors who serve to expand your network by introducing you to new people. If you are also a central connector, this can be a benefit to assessing information as long as you are able to keep the network from distracting you from your work. Network Density Network density is important. When a person’s network density is 1.0 that indicates that everyone in the network knows everyone else. Whether this is good or bad depends on a few things. For example, if everyone in your network has additional networks they belong to as well, you would be playing a central role in their networks and you would be a boundary spanner. But, if they also have high network density, the odds are that no new information is getting introduced into your group. You are basically a closed loop in which the same people interact with one another, and it is challenging to assess changes in the environment or to be innovative. Social networks change over time depending on your tenure in an industry or company. The longer you have been in a given industry, the more likely it is that you will see your network size begin to shrink and become more dense. Consider factors relating to power and influence and how you might go about strengthening and increasing the size of your network. What are the pros and cons of doing so? © Bauer & Erdogan 2016, published by Flat World Knowledge 

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Organizational Behavior 2.0 – Bauer and Erdogan 155 Instructor Manual

C. GROUP EXERCISE In a group, analyze the following individuals in terms of their potential power bases. The first step is to discuss which types of power a person with the job listed on the left-hand column could have. If you can think of an example of type of power they have, write the example in that column. Table 13.1 Legitimat e Power

Reward Power

Coercive Power

Information Power

Flight attendant Computer programmer Executive assistant Manager Mailroom person Customer service representative

CEO

III. Exercise Solutions and End of the Chapter Role Plays

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Referent Power

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A. ETHICAL DILEMMA a) If you are going to correct a supervisor it is generally a good idea to do it in a one-onone setting. Even though this manager does not like being corrected (and many people do not), the problems that can occur down the line as a result of bad information could be far worse. In this case, the company stands to lose money but could also lose credibility, depending on what the company actually does. When correcting anyone, it is important to remember that the error is likely the result of an honest mistake. Try not to phrase anything as, “You made a mistake,” or “Your figures are wrong.” This type of phrasing can irritate others, even when you are in the right. Instead, try to focus on the mistake itself. You could say something like, “I think these numbers might be off,” or, “The research I have been doing doesn’t align with your numbers, and can you help me figure out why that is?” Again, this is best done in private. If you are concerned about your recent performance and feel this might affect the conversation, maybe you can even start by acknowledging that fact. b) The concerns you have about your manager can potentially be very serious. Just as employees can learn from managers, managers can learn from their employees. Having a boss that is difficult to approach can disrupt the flow of information from the ground up. This lack of information being transmitted along appropriate channels could have serious consequences for the company as a whole. Time management issues are also very serious at any level of employment. Although it is possible your boss will know who commented on these issues, it is also possible that many other employees feel the same way. Being quick to take offence and having a bad temper are often very salient characteristics, and it is likely that your manager’s manager is already aware of the issue. This fact goes for time management as well. It may be necessary to be very broad in your description, or you could even describe an incident you are aware of but were not involved in (as long as you were certain your facts were true). c) Doing something nice for someone can go a long way. Studies have proven that random acts of kindness will not only affect the person that they are directed toward, but can carry to others through interactions with them. Obviously there is nothing that mandates going out of your way to do something nice for your boss, but being a nice person is never a bad thing. Be aware, however, that doing something nice specifically for your boss could be perceived negatively. Others (your boss included) may get the impression that you are trying to suck up for some reason. Perhaps in this situation you could grab the almond coffee cake for your boss and a few things for other employees.

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B. INDIVIDUAL EXERCISE Objective: Prepare for a test Barely Loosely Connected Connected

Somewhat Connected

Tightly Connected

X X X X X X X X X X X        

       

       

       

 

Name

2

3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

 Amy  Dave  Juan  Maria  Debbie  Pat  Pamela  Scott  Bruce  Anju  Svetlana        



 

                           

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4

                         

5

6

7

8

9



    

    

   



                     

  

   

                           

                 

               

                    

1 0                             

11

12

                             

                             

1 3                              

14

15

                             

                             

Organizational Behavior 2.0 – Bauer and Erdogan 158 Instructor Manual Let’s see how your social network adds up: Calculating Network Size The number of people you listed as in your own network for this situation N = 11 Calculating Network Density It is important to understand what the maximum density of your network is. This refers to how dense it would be if everyone in your network knew each other. (N * (N - 1)/2 = M) or ( __ * ( __ - 1)/2 = M) (11 * (11 – 1)/2 = M M = 55 Total number of check marks on your network grid that shows the number of relationships among people in your network. C = 28 Density of your network (will range between 0 and 1) C/M=D 28 / 55 = D D = .51 Network Size N = number of people in your network. The more people in your network, the greater the amount of information and possibly access to greater resources you have. We stopped at fifteen people but many individuals have many more people in their network than fifteen. In this example there were eleven people in the network. Network Strength The strength of your network is also important. You can talk about this in terms of percentages of your relationships. What percentage is very tightly connected? Close? Somewhat connected? Or barely connected? 36% tightly connected

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Organizational Behavior 2.0 – Bauer and Erdogan 159 Instructor Manual 36% somewhat connected 18% loosely connected 9% barely connected For most people, it would be hard to manage a huge network where all the ties are very close, just by virtue of the amount of time and energy it takes to satisfy the conditions for closeness. Identifying Central Connectors Count how many names you circled in Step 4. Each of these individuals plays a special role in your network as they are central connectors who serve to expand your network by introducing you to new people. If you are also a central connector, this can be a benefit to assessing information as long as you are able to keep the network from distracting you from your work. Network Density Network density is important. When a person’s network density is 1.0 that indicates that everyone in the network knows everyone else. Whether or not this is good or bad depends on a few things. For example, if everyone in your network has additional networks they belong to as well, you would be playing a central role in their networks and you would be a boundary spanner. But, if they also have high network density, the odds are that no new information is getting introduced into your group. You are basically a closed loop where the same people interact with one another and it is challenging to assess changes in the environment or to be innovative. Social networks change over time depending on your tenure in an industry or company. The longer you have been in a given industry, the more likely it is that you will see your network size begin to shrink and become more dense. Consider factors relating to power and influence and how you might go about strengthening and increasing the size of your network.

C. GROUP EXERCISE Legitimate Power Flight attendant

Passengers are required to comply with flight attendant’s instructions.

Reward Power

Coercive Power

Information Power

Flight attendants can provide complementary items like beverages or headphones.

Flight attendants have the authority to remove someone from a flight for not obeying rules.

Often, flight attendants are the only ones who can communicate to a pilot, gaining access to specific flight or aircraft information.

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Referent Power

Organizational Behavior 2.0 – Bauer and Erdogan 160 Instructor Manual Computer programming is a very specific skill. It requires years of education to master. As a result, these individuals have a great deal of information power. Even if others have access to the same information, they may not understand it as a computer programmer does. With direct access to executives, an assistant can often be the first to know certain kinds of information.

Computer programmer

Executive assistant

Manager

Executive assistants often have the ability to perform many of the actions as the executives they assist. While they are generally not allowed to use this power without consent, they do technically hold a great deal of legitimate power. A manager obviously manages employees. The manager has legitimate power to accomplish this task.

Because executive assistants handle many of the tasks of executives, they are often given the ability to make judgment calls surrounding rewards.

Managers are often in charge of giving out bonuses and promoting individuals.

Managers are responsible for making sure employees comply with rules and perform assigned tasks. To help in this process, managers can utilize various forms of punishment, including docking pay, giving undesirable tasks or bad schedules (and in severe cases, firing people).

Mailroom person

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Managers have contact with higherup members of organizations. This means they have access to information that other employees do not receive. Additionally, managers tend to have an overall view of the departments or unit they are managing. This gives them a unique perspective regarding business operations. Although a mailroom person might be considered a position without power, the individual may have access to information due to the nature of the job. Because most mail applications are automated now, this power is lessening. But imagine the days

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Many customer service people have autonomy in how to handle situations. Compensation for an event might vary depending on how the representative is treated by a customer.

Customer service representative

CEO

of sorting mail by hand. A mailroom worker would have knowledge of general communication between individuals. Customer service representatives generally have access to customer accounts. Although they are not allowed to share information, they will know the status of the account of every customer they handle.

A CEO is in charge of an organization. He/she is generally appointed by a board and as far as the company is concerned, the CEO’s word is law. Every aspect of an organization’s operations is ultimately routed to the CEO.

CEOs make the decisions for an organization. This can include giving a large company contract to a friend or deciding whether a bonus will be issued and for what amount.

Just as a CEO can award a contract, he/she can cut someone off. If a CEO is not getting an acceptable price from a distributor, the CEO can threaten to purchase from someone else.

CEOs have access to all of an organization’s information. They are responsible for strategic planning and often know things that no one else knows. CEOs often have so much information power that laws are in place to protect the public from certain activities (e.g., insider trading).

IV. Bonus Material Power Exercise: Monopoly If possible, acquire several monopoly games. Divide the class into groups of five people. Have each player in each group select a game piece. Here is the twist. Instead of playing by normal rules, follow these rules: Tell players to roll to see who goes first, but not to start the game or distribute any money. After player 1 is decided, explain that player 1 is the dictator. The dictator can do anything. Rules can be enforced or ignored, but anything the dictator wants to do is done. The dictator gets $8,000. Player 2 receives $3,000, all four railroads, both utilities and the red and yellow properties. Player 3 receives $1,000 and all the houses and hotels. Player 4 receives blue, green, orange, and purple properties and $500. Player 5 receives the brown (Baltic and Mediterranean) and light blue properties as well as the remaining funds. Let the game begin.

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Organizational Behavior 2.0 – Bauer and Erdogan 162 Instructor Manual Source: Brett Guidry, Portland State University. Used by permission of the author.

V. Relevant TED Talks for bringing course concepts to life A. Title: The psychology of evil by Philip Zimbardo http://www.ted.com/talks/philip_zimbardo_on_the_psychology_of_evil Synopsis: Zimbardo talks about how easy it is for good people to turn bad when given power. He talks about multiple psychological experiments done to show how when given power good people can become evil. Warning: There are some graphic images in this talk of the Abu Ghraib prison. B. Title: Does money make you mean? by Paul Piff https://www.ted.com/talks/paul_piff_does_money_make_you_mean Synopsis: Through an experiment in a rigged monopoly game, Paul shows us how money and power can alter people’s behaviors. People can become rude, confident and aggressive towards their lower counterparts. This is the danger of having power, and has been seen in our society for centuries.

Additional Readings Robert B. Cialdini (2006). Influence: The psychology of persuasion. Collins Business Essentials. Robert B. Cialdini (2008). Influence: Science and practice. Allyn & Bacon. Dale Carnegie. How to win friends and influence people. Any edition. Jeffrey Pfeffer (1994). Managing with power: Politics and influence in organizations. Boston, MA: Harvard Business School Press. Annette Simmons (2001). The story factor: Secrets of influence from the art of storytelling. Cambridge, MA: Perseus Publishing. Duncan J. Watts (2004). Six degrees: The science of a connected age. W. W. Norton & Company Ltd.

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Organizational Behavior 2.0 – Bauer and Erdogan 163 Instructor Manual

Chapter 14

Organizational Structure and Change OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. What changes might you make at Toyota to prevent future mishaps like the massive recalls related to brake and accelerator failures? 2. Do you think Toyota’s organizational structure and norms are explicitly formalized in rules, or do the norms seem to be more inherent in the culture of the organization? 3. What are the pros and cons of Toyota’s structure? 4. What elements of business would you suggest remain the same and what elements might need revising? 5. What are the most important elements of Toyota’s organizational structure?

I. Discussion Questions A. ORGANIZATIONAL STRUCTURE 1. What are the advantages and disadvantages of decentralization? Decentralization has the following advantages: i. Employees are empowered and therefore their motivation increases. ii. People close to a decision are the ones actually making the decision. iii. Customer satisfaction may increase because their unique needs will be taken into account. At the same time, the following disadvantages may occur:  People who do not see the “big picture” may be in charge of making the decision.  Not all employees are capable of or interested in making decisions and if they are not ready, the decision will not be effective. 2. All else being equal, would you prefer to work in a tall or flat organization? Why? Tall organizations have a number of disadvantages for one’s career, such as having to go through many channels for approval and information. These organizations may be more bureaucratic and rule-oriented. Yet, they also have the advantage of providing more promotion opportunities for employees. 3. What are the advantages of departmentalization by product?

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Organizational Behavior 2.0 – Bauer and Erdogan 164 Instructor Manual When the organization is departmentalized by the product, the product becomes the overarching goal around which all resources are mobilized. These structures tend to be better in marketing a certain product and differentiating it from other products. These structures are useful in bringing together people from diverse backgrounds for the good of the product or service to be provided. 4. Have you ever reported to more than one manager? What were the challenges of such a situation? Student answers will likely enrich class conversation. Reporting to more than one manager may be problematic in situations where these managers do not get along with one another and do not coordinate their actions. This lays the burden of managing these two personalities on the shoulders of employees. Communication and coordination difficulties may cause high levels of role conflict and stress for these employees. 5. What do you think are the advantages and disadvantages of being employed by a boundaryless organization? Boundaryless organizations may take a number of different forms. Working in a modular organization will mean that all nonessential functions have been outsourced. In these structures, ensuring that the outside partners deliver products and services on time and within the quality standards of the organization may be a major challenge. Working in such an organization will mean that you will have to interact with many other companies. Working in organizations that have eliminated traditional barriers between managers and employees and utilizing self-managing teams may be rewarding for employees who are ready for empowerment. Yet, teamwork will also mean that one’s destiny is intertwined with others and not everyone is interested in or capable of working in such a setting. 6. What can organizations do to institutionalize organizational learning? What practices and policies would aid in knowledge acquisition and retention? Instituting a learning culture would be an essential step here. If learning and constantly improving the organization is a value that is at the core of a company’s culture, organizational learning will be easier. Also, ensuring that important information is written down, documented, and passed on to new employees as part of their organizational onboarding would be useful. If information resides in individuals, when they leave the organization that information will be lost.

B. ORGANIZATIONAL CHANGE 1. Can you think of an organizational or personal change that you had to go through? Have you encountered any resistance to this change? What were the reasons? Student answers to this question will vary. When students describe organizational experiences with failed or successful change efforts, it may be useful to identify

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Organizational Behavior 2.0 – Bauer and Erdogan 165 Instructor Manual where things have gone wrong, and at which stage of Lewin’s change process the problem resides. Lewin’s three-step model is useful to analyze any change effort instituted in an organization and students may find it interesting that what happens before the change is often the key determinant of whether the change is successful or not. 2. How would you deal with employees who are resisting change because their habits are threatened? How would you deal with them if they are resisting because of a fear of failure? People resist change when it threatens their habits. This means that any change effort will likely meet with some initial resistance because habits are threatened. Patience will be a virtue here: Given time, many people will adjust. This would also mean that organizations will need to allow employees some time to adjust and practice the new skills so that new habits can be established. Fear of failure requires a different approach, partly also because employees are unlikely to admit that they are afraid to fail. Prior training of all employees, including the seeming experts, may be a good idea. Again, giving employees plenty of opportunities to practice the new skills and supporting those who are lagging behind may be good ideas. The organization may want to reassure employees that employees will have plenty of time to adjust and those who are not managing the transition are not in danger of losing their jobs. Creating a supportive atmosphere will be useful to deal with this barrier. 3. What are the benefits of employee participation in change management? Employee participation has a number of benefits.  It helps the change effort be successful because the planned change will reflect the opinions of those who will have to use the new system, process, or technology. If there are problems that would make the new system problematic, these will be discovered early on, before the change is adopted.  Employees will have buy-in. When people help design a system, they feel a sense of ownership and defend it to others.  Employees will see the strengths and limitations of the different alternatives and will realize that even though the chosen alternative may not be perfect, it may be the only workable solution to the problem.  Employees feel that the organization cares about them, trusts them and values their opinion, ultimately leading to a better relationship between the organization and its employees. 4. Imagine that you are introducing a new system to college students in which they would have to use a special ID number the university creates for them for activities such as logging on to campus computers or using library resources. How would you plan and implement the change? Explain using Lewin’s three-step framework.

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Organizational Behavior 2.0 – Bauer and Erdogan 166 Instructor Manual Unfreezing would involve Letting students know in advance that change is coming. Explaining to them why change is happening and how it benefits the students. (For example, using student IDs as opposed to social security numbers helps prevent identity theft.) During the change phase Help students remember their new ID by making it available to them on their new ID card or a special wallet-sized card. After the change phase Ensure that change is permanent—disable the old system so that after a grace period students are no longer allowed to use their social security numbers. 5. Why are successful companies less likely to change? What should companies do in order to make organizational change part of their culture? It is interesting that successful companies may not be very interested in changing. This is because they may feel that whatever they were doing has served them well and will serve them well in the future. If things are working right now, why take any chances? Many organizations realize that this may be a serious problem, preventing a company from foreseeing disruptive changes and taking action in time. Some companies rotate their managers to give them a new and fresh perspective or adopt philosophies such as continuous improvement. Making change a part of culture also means adopting a healthy attitude toward taking chances and making mistakes along the way.

C. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. What is an ethical way of conducting layoffs? When conducting layoffs, companies need to consider the situation of the victims. Employees to be laid off should be informed of the decision by their immediate manager in a face-to-face meeting. Victims should also be provided support services when possible, helping them find new jobs. Organizations providing outplacement services provide emotional as well as career related support to laid off employees. Many organizations also provide a severance package to laid off employees to help them transition to their new lives. Finally, planning the layoff so that the organization exhausts other alternatives before layoffs are used may be a good idea. Taking away someone’s job is an emotional decision that affects the person’s entire life, and should not be the first thing companies do when they are faced with a downturn. 2. Do you believe that it is an organization’s ethical obligation to share all information about the planned changes with employees? Why or why not?

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Organizational Behavior 2.0 – Bauer and Erdogan 167 Instructor Manual There is definitely some information that will not be shared with employees immediately, such as when planning a layoff. Until things become clear, the company may need to withhold information. Yet, lying to employees is likely to be viewed as unethical. Assuring employees that things are great even if they are not will breach the trust between employees and the organization and will create a culture of mistrust in the organization’s future dealings with employees. 3. What is the relationship between organizational change and national culture? Cultures differ in the extent to which they are open to change. Some cultures are uncertainty avoidant, meaning that they are hesitant to take risks and view change as a threat. How change should be introduced also varies around the globe. In some cultures, building coalitions to create change may be preferable to using rational persuasion.

C. CHANGING FOR GOOD: THE CASE OF HANNA ANDERSSON CORPORATION 1. How did company leaders like Iosca, Petersen, and Stone help facilitate change within the company? Did they follow the steps to successful change? They were personable - they sat in on meetings. They were steady and reliable during times of transition and change, and because of this gained trust and support from employees and customers. They allowed the company to adapt and transform as the demands on the market shifted as well. 2. What were the reasons for organizational change within Hanna Andersson, both internally and externally? Externally, there was an increase in competition with other retailers, as well as the introduction of online commerce, which posed challenges for Hanna Andersson and created the need for organizational change. Internally, needs for leadership change came mainly because of time; Hanna Andersson was ready for new ideas and for new people to be in charge. 3. How can a company anticipate change? How can the company effectively prepare for it? Companies can anticipate change by studying the trending fashions in the market and looking at how they fluctuate. Companies should create business models that allow themselves to be adaptable for quick changes as the demand for different products occurs. 4. What unique challenges do family-owned and -operated businesses face? Emotions run high in family-owned and -operated businesses. Things can be taken personally and cause tension in the company.  It becomes challenging to distinguish work conflicts from family conflicts, and the organization can suffer from this. © Bauer & Erdogan 2016, published by Flat World Knowledge 

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II. End of Chapter Materials A. ETHICAL DILEMMA Imagine that you are a manager at a consumer products company. Your company is in negotiations for a merger. If and when the two companies merge, it seems probable that some jobs will be lost, but you have no idea how many or who will be gone. You have five subordinates. One is in the process of buying a house while undertaking a large debt. The second just received a relatively lucrative job offer and asked for your opinion as his mentor. You feel that knowing about the possibility of this merger is important to them in making these life choices. At the same time, you fear that once you let them know, everyone in the company will find out and the negotiations are not complete yet. You may end up losing some of your best employees, and the merger may not even happen. What do you do? Do you have an ethical obligation to share this piece of news with your employees? How would you handle a situation such as this?

B. INDIVIDUAL EXERCISE Planning for a Change in Organizational Structure Imagine that your company is switching to a matrix structure. Before, you were working in a functional structure. Now, every employee is going to report to a team leader as well as a department manager.  Draw a hypothetical organizational chart for the previous and new structures.  Create a list of things that need to be done before the change occurs.  Create a list of things that need to be done after the change occurs.  What are the sources of resistance you foresee for a change such as this? What is your plan of action to overcome this potential resistance?

C. GROUP EXERCISE Organizational Change Role Play Manager’s Role Your company is switching to a new Enterprise Resource Planning (ERP) software. This new system will ensure that there is a common database for all operations and will provide a close integration of the operations in all departments. The company estimates that on-time delivery rates will dramatically improve after the ERP implementation. This is a huge investment, but management believes that the benefits of this implementation outweigh the costs. Yet, one important concern is employee reactions. Your employees will need to be trained in this software and will need to dedicate as much as twenty hours per week on the implementation. The implementation will take several months. There

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Organizational Behavior 2.0 – Bauer and Erdogan 169 Instructor Manual is also the issue of training employees in the new software, which is substantially more complicated than Excel training! You are now meeting an employee who is critical to the implementation. This person is an opinion leader in the company and one of your key people. If you can secure the individual’s cooperation the transition is likely to go more smoothly. Unfortunately, the employee became extremely concerned after hearing about these changes and is considering leaving the company. Have a meeting with this employee to explain what is going to happen. Your goal is to convince the employee to stay and motivate the individual to provide support for the program. Employee’s Role Your company is switching to a new ERP software. This new system will ensure that there is a common database for all operations and will provide a close link between the operations of all departments. The company estimates that on-time delivery rates will dramatically improve after the ERP implementation. Management believes that the benefits of this implementation outweigh the costs. Yet, you have serious concerns. First, during the implementation you will have to work very long hours. Managers are saying the implementation will take several months, but based on what you read about the subject, it could be up to a year. You liked your job before, but now you have started looking for a position elsewhere. Maybe it is time for a change, given that things will get stressful here. It is not only the potential for overtime that concerns you. The training that comes is demanding and you have doubts that you can learn the system in a short amount of time. You always felt successful at work, but now you are concerned about future achievement. What if you do not succeed? Your manager requested a meeting with you. You have suspicions that someone leaked the fact that you are looking for a new job. You are curious to hear what your manager has to say. You do not really have to leave, but at the end of the meeting you should feel that: a) they value you in this company b) the project is likely to be a success c) you can be successful under the new system d) staying here will be beneficial to you Discussion questions 1. Was the manager successful in securing the cooperation of the employee? Why or why not? 2. What could the manager have done differently to secure the employee’s cooperation? 3. Why was the employee resisting change?

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III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA Information surrounding mergers can be very difficult to negotiate. A company’s stock could double or triple based solely on the notion that a merger might happen. For example, Yahoo!’s stock prices swung wildly pending results of conversations with Microsoft about a possible merger. Because of the volatility surrounding mergers, if nothing is finalized it is generally best not to say anything about it (unless you have been instructed to do so). Mergers often mean some existing employees will be let go. As a result of revealing the possibility of a merger you may be inciting a panic that could carry very negative consequences. At the same time, what responsibility do you have to those that you supervise? Your subordinates often look to you for accurate information and guidance. As stated in the dilemma, if you tell either employee about the possibility of a merger, others will find out. Unfortunately for this case, you will not be able to confide in anyone. With that said, first consider the employee that has come to you for guidance regarding a job offer. As his mentor, you still have the obligation to provide guidance as if you were not aware of the merger. Losing a good employee is obviously bad for the company, but is the job offer good for your employee? If you feel that your employee will be a good fit with the new company then you should say so. Try to consider the likelihood of this employee receiving a similar offer. Maybe it is a good opportunity that should be taken advantage of regardless of the current situation. In regard to the other employee, try to look at the situation as an outsider. Is it a good idea for anyone to take on significant debt? Probably not. Perhaps simply advising the employee about the consequences of large debt would be appropriate. At no point do you have to mention the merger, but you can instead talk generally about the unstable nature of the world. Is the employee attempting to live outside of his or her means? Are there other options the employee could try instead of buying a home? Even with the delicacy of the situation, keep in mind that if the merger occurs, it is likely to be revealed that you had advance knowledge of situation.

B. INDIVIDUAL EXERCISE The previous structure will consist of functional departments, such as finance, marketing, accounting, and R&D. In the new structure, there will still be functional departments, but employees from each department will report to project managers as well as to their functional managers. Things that need to be done before the change occurs will include planning the change, and communicating with employees. Is this the best possible structure? Why was this change needed? Involving employees in this conversation will help secure their cooperation. The company will also want to ensure the readiness of the employees for this change. Functional managers and project managers will

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Organizational Behavior 2.0 – Bauer and Erdogan 171 Instructor Manual need to get together to communicate and coordinate as well as set the boundaries of their areas of responsibility. Things that need to be done after the change occurs include checking progress, dealing with the problems that arise from the new structure, and motivating employees to work under the new system. Miscommunication that may arise because of reporting to multiple managers will need to be resolved. Because work will be organized around projects, employees will need to adopt a more empowered work mind. In a change like this, both employees and managers are likely sources of resistance. Project managers will need to develop project management skills. Line managers will realize that while they are still the managers of their employees, they do not coordinate or control the day-to-day operations. If the line and project managers do not get along, the situation is ripe for conflict. In order to execute the change more effectively, sources of likely resistance will need to be identified. Having meetings with all involved parties and involving them in the major decisions will be important.

C. GROUP EXERCISE Manager’s Role One of the key concerns here is the strong reaction your key employee had to the news of the new software. It will be important to get to the root of the reaction to the change. What aspect is most troublesome? Perhaps the employee is not aware of many of the problems associated with the current system. Perhaps the company has not done a very good job of informing employees of the benefits of the new system. Your first task should be to determine what is causing your key employee to be so against the change. For this particular exercise, the employee’s concerns are outlined as well as a method for a manager to address the issues.  During the implementation the employee will have to work very long hours. Although management is saying it will take several months, the employee has information that suggests the process could take up to a year. o It may be true that long work hours are unavoidable; however, maybe the company could consider being flexible in when those hours occur. Giving employees the opportunity to adjust the potentially disruptive schedule around their own lives may motivate workers to engage in the transition. The additional act of compensating employees for the longer work hours may help communicate that the company is concerned for their well being. o Because your key employee also has information indicating the process could take up to a year, you may want to work with this employee to find a way to prevent such a long transition from occurring. There are likely common pitfalls that cause an

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Organizational Behavior 2.0 – Bauer and Erdogan 172 Instructor Manual implementation of the new system to take longer than expected. If the employee is well enough informed, he or she may be a great resource to help avoid a drawn out conversion process. Maybe including the employee in the transition will motivate the person to stay with the company and help make the process work. The added ownership for the key employee may help that person to motivate others to make the process a success.  The employee is concerned about having the ability to learn a new system in a short amount of time. o Remember that this is a key employee in the company. Chances are that other employees look to this person for guidance. There is the distinct possibility that if this particular employee is worried about learning a new system in a short amount of time, many other employees are as well. The key employee might provide valuable insight to the feelings of other employees. Maybe you could explain that the system cannot work on its own, and having employees understand the new software is a top priority. If things seem like they are moving too fast, the training process will be adjusted to compensate. Remember that the company has already invested a substantial amount of time and money training employees to work well for the company. Any new employee who would be brought on would not only have to learn the new system, but would also have to learn the organization. Therefore, current employees are a priority. After all, the new system will ultimately make their jobs easier. o Perhaps it would help to allow this particular employee to have some kind of preview of the new system. By allowing this particular employee to become familiar with the software in advance, the employee can work with others who might be struggling with the same self-doubts. Again, remember that the goal of implementing the new system is to make employees’ jobs easier and dramatically increase on-time delivery rates. It is entirely possible that once the new system is in place, company profits will increase as well. Based on this assumption, it may be appropriate to offer a bonus to employees that have stuck with the company during a difficult transition. Offering a bonus might also help convey the message to employees that the organization is confident the new system will increase profits. Employee’s Role Depending on how the interview went, the answers to these questions may vary. It is possible the manager spent too much time focusing on the outcome of the new system. There were many reasons why the employee was resisting the changes in the system. Specifically, the new system involved potentially working too many hours and creating work/life balance problems. There is ambiguity regarding the consequences of the change: the employee simply does not trust the management to have correct time estimates. This employee is also concerned about future © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 173 Instructor Manual success. He or she is used to being a high performing employee and will want to preserve these feelings under the new system. Depending on how the manager handled these issues, the employee may now have built confidence and gained greater clarity regarding what will happen under the new change. The students who played the employee role should share their perception of whether the manager’s handling of the situation could realistically address these issues.

IV. Bonus Material For each of the following scenarios, imagine how things would be for:  the CEO  upper management  lower management  lower level employee (salary)  hourly waged employee  part time employee The company is merging with another, local company. There will be extensive consolidation and any employee redundancy will be removed. The company has been bought by a large, international firm that wants to expand its focus. A company is moving its headquarters to another state. A company is changing from being privately owned to publicly traded. An organization has previously communicated with its customers through phone and email. After an evaluation, the company has decided email communications are often confusing and require several additional contacts, where a phone call would likely solve the problem in one step. As a result, the company will be phasing out email communication over the next sixty days. A manufacturing company is shifting to manufacturing and distribution. Source: Brett Guidry, Portland State University. Used by permission of the author.

V. Relevant TED Talks for bringing course concepts to life A. Title: How to manage for collective creativity by Linda Hill http://www.ted.com/talks/linda_hill_how_to_manage_for_collective_creativit y Synopsis: “What’s the secret to unlocking the creativity hidden inside your daily work, and giving every great idea a chance? Harvard professor Linda Hill, co-author of “Collective Genius,” has studied some of the world’s most creative companies to come up with a set of tools and tactics to keep great

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Organizational Behavior 2.0 – Bauer and Erdogan 174 Instructor Manual ideas flowing — from everyone in the company, not just the designated “creative”. B. Title: The single biggest reason why startups succeed by Bill Gross https://www.ted.com/talks/bill_gross_the_single_biggest_reason_why_startup s_succeed Synopsis: Bill goes into five factors that create success in business startups. Through his research, he found that the most important factor, more than the idea itself and the business models, but timing.

Additional Readings Michael Beer and Nitin Nohria (2000). Breaking the code of change. Boston, MA: Harvard Business School Press. Jay R. Galbraith (2001). Designing organizations: An executive guide to strategy, structure, and process. NY: Jossey-Bass. Spencer Johnson (1998). Who moved my cheese? An amazing way to deal with change in your work and in your life. G. P. Putnam's Sons. John P. Kotter (1996). Leading change. Boston, MA: Harvard Business School Press. Frederic Laloux (2014). Reinventing organizations. Nelson Parker. Jeffrey K. Liker (2003). The Toyota way. NY: McGraw-Hill. Keith McCandless and Henri Lipmanowicz (2014). The surprising power of liberating structures: Simple rules to unleashing a power of innovation. Liberating Structures Press. Gareth Morgan (2006). Images of organization. Thousand Oaks, CA: Sage Publications.

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Chapter 15

Organizational Culture OPENING NARRATIVE: QUESTIONS TO CONSIDER 1. Using the OCP framework, analyze Google’s culture dimensions. Which dimensions seem to characterize Google Culture? 2. What are the factors responsible for the specific culture that exists in Google? 3. Do you see any challenges Google may face in preserving its culture? What are the challenges of having this culture for a global organization with more than 52,000 employees?

I. Discussion Questions A. UNDERSTANDING ORGANIZATIONAL CULTURE 1. Why do companies need culture? This question is akin to asking why people need personalities! Even if we did not need them, we have them. Similarly, each organization has a culture that differentiates it from other organizations. The type of culture the organization has will have implications for the success of the organization or could be the reason why the company fails to live up to its potential. 2. Give an example of an aspect of company culture that is a strength as well as one that is a weakness. Student answers will vary. For example, in a dynamic environment, having an innovative culture will likely be an advantage for the organization (such as Google), while having a culture of stability will be a weakness (such as Kraft Foods). 3. In what ways does culture serve as a controlling mechanism? Culture shows employees desired and undesired behaviors. In this way, it is a control mechanism. Moreover, as a controlling behavior it is often a stronger mechanism compared to rules and regulations, because rules are unlikely to exist for all situations and rules are selectively enforced in many organizations. Culture leads to employees putting social pressure upon one another to behave in a certain way. 4. If assumptions are below the surface, why do they matter? Assumptions are the deep beliefs that exist and are expressed in the values and artifacts that are more visible. Even when artifacts to the contrary may exist, assumptions are what drive employee behavior. Imagine an organization that is rule-oriented, hierarchical, and does not value its people. This organization may

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Organizational Behavior 2.0 – Bauer and Erdogan 176 Instructor Manual adopt casual Fridays where employees are free to dress however they want. Do you think employees will think that the organization is employee friendly? It is unlikely. In a people-oriented culture, the same policy would be an expression of the assumption that “employees should be free to express themselves.” In a different culture, the same policy may simply indicate that the company is imitating a competitor. 5. Share examples of artifacts you have noticed at different organizations. Artifacts may involve the dress code, the rules and regulations the company has, its building, and office layout.

B. CHARACTERISTICS OF ORGANIZATIONAL CULTURE 1. Think about an organization you are familiar with. Based on the dimensions of OCP, how would you characterize its culture? Student answers to this question will vary. Even if students have little actual experience within a company, they may be able to identify certain elements of companies they are familiar with. 2. Out of the culture dimensions described, which dimension do you think would lead to higher levels of employee satisfaction and retention? Which one would be related to company performance? Research indicates that employee satisfaction and retention is highest for peopleoriented cultures. Culture’s relation to company performance is less straightforward and depends on whether the particular culture of the company fits with the organization’s environment. 3. What are pros and cons of an outcome-oriented culture? These cultures may motivate employees to demonstrate high levels of performance. Because performance is valued, they tend to have objective performance criteria and may treat employees fairly. These cultures do not tolerate mediocrity and therefore high performers may enjoy working for these organizations. Taken to the extreme, these cultures may encourage employees to violate procedures, be unethical, and value ends above means. 4. When bureaucracies were first invented they were considered quite innovative. Do you think that different cultures are more or less effective at different points in time and in different industries? Why or why not? This is definitely a possibility. When bureaucracy was invented, it replaced a more personal management style where individual discretion and favoritism was replaced with rules. At a different time, they became rigid and procedures started replacing logic. Similarly, different industries definitely require different organizational cultures to be successful. For example, in industries that are highly regulated, having a stable and procedure-oriented culture will likely be beneficial, even though the same culture may be a detriment in a dynamic industry.

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Organizational Behavior 2.0 – Bauer and Erdogan 177 Instructor Manual 5. Can you imagine an effective use of subcultures within an organization? For example, a company may have subcultures that fit with the unique needs of the local environment. A company may have an innovative and risk-taking culture overall, but may choose to adopt a more stable and rule-oriented culture in a subsidiary operating in an uncertainty avoidant culture.

C. CREATING AND MAINTAINING ORGANIZATIONAL CULTURE 1. Do you think it is a good idea for companies to emphasize person/organization fit when hiring new employees? What advantages and disadvantages do you see when hiring people who fit with company values? Advantages include maintaining the special aspects of a company’s culture, as well as hiring employees with a greater likelihood of being satisfied and successful within the organization. Yet, if the existing culture of the company does not fit with its industry or other external demands and change is needed, then hiring high person/organization fit employees will actually perpetuate the existing culture of an organization. Moreover, hiring based on fit has the potential to threaten the innovativeness of a company.

2. What is the influence of company founders on company culture? Give examples based on your personal knowledge. Founders infuse their own personal values into the businesses they establish. Students may be able to identify examples from popular media such as Microsoft or Google and how their founders influence their companies’ cultures. Similarly, students who have experience with family businesses may identify examples of how one person’s personality is influential in determining the culture of that company.

3. What are the methods that companies use to aid with employee onboarding? What is the importance of onboarding for organizations? Onboarding is important, because when employees quit their jobs or are fired shortly after they were hired, the organization incurs substantial costs. To help employees adjust to their new positions, formal programs include mentoring programs and new hire orientations.

4. What type of a company do you feel would be a good fit for you? What type of a culture would be a misfit for you? In your past work experience, were there any moments when you felt that you did not fit with the organization? Why? Student answers to this question will vary. Students often find the idea of cultures novel and useful, and they will be able to identify how they fit or did not fit into different organizational cultures.

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5. What is the role of physical layout as an indicator of company culture? What type of a physical layout would you expect from a company that is people-oriented? Team-oriented? Stable? There may not be a one-on-one correlation, but physical layout often contains hints of the company’s culture. In team-oriented cultures we are more likely to see cubicles as opposed to offices. Moreover, in these cultures there may be more gathering places for employees, and less of a distinction between high- and lowstatus employees’ work-stations. In people-oriented cultures, we would expect an emphasis on comfort and fun. Stable cultures may have offices, more standardized workstations, and more distinction between powerful and less powerful employees.

D. CREATING CULTURE CHANGE 1. Can new employees change a company’s culture? If so, how? In ordinary circumstances it will be difficult for one person to change the culture of a department or an entire organization, but there are circumstances in which the likelihood of change may increase. The formal position of the new hire matters: A new CEO will likely be more influential than a lower level employee. Past performance of the new hire in a different organization matters. Whether the existing employees view changes as needed is another factor. Finally, the persuasive abilities and charisma of the newcomer will increase the likelihood of change. 2. Are there conditions under which change is not possible? If so, what would such conditions be? Conditions making change more difficult to achieve include a successful organization uninterested in change, a large and bureaucratic organization with many procedures and rules in place, and the lack of a change agent taking responsibility. 3. Have you ever observed a change process at an organization you were involved with? If so, what worked well and what didn’t? Student answers will vary. Students may identify a number of critical events as the turning point in a company’s culture, such as an external crisis, or the departure of a leader. A good follow-up question could be whether change would have been possible in the absence of such critical events. 4. What recommendations would you have for someone considering a major change of culture within his or her own organization? The advice to be given to someone in this situation would be derived from the six stages of culture change highlighted in the book, starting with creating a sense of urgency, changing key players and gate keepers, serving as a role model, providing training, changing the reward system, and creating new stories.

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E. THE ROLE OF ETHICS AND NATIONAL CULTURE 1. Have you seen examples of ethical or unethical organizational cultures? Describe what you observed. Student answers will likely vary. At this point, students will likely come to the realization that ethical behavior is often a cultural issue as opposed to the presence of “a few bad apples.” This may be a good point to brainstorm about what organizations can do to create an ethical culture. 2. Have you seen examples of national culture affecting an organization’s culture? National culture is likely an important influence over an organization’s culture. This situation will likely visible in different units of a multinational organization. For example, employees working in Procter and Gamble Belgium will likely socialize over beers at lunch, while such behavior may be less acceptable in Cincinnati. 3. What advice would you give to someone who was interested in starting a new division of a company in another culture? The key advice, which would lead to further advice, may be to be a good observer and listener before creating too many rules and procedures. Some policies and procedures may be immediately transferable while others may be less likely to go well in a different culture. Before enforcing all headquarter rules, it is important to keep an open mind and learn about the local culture.

E. SERVICE CULTURE MAKES ALL THE DIFFERENCE: THE CASE OF FOUR SEASONS HOTELS 1. Describe Four Seasons organizational culture in your own words. Four Seasons hotel has an organizational culture with the ability (staff, resources, financial aid) to make every guest feel like royalty. They put effort into making the customer’s stay impeccable, and the company is very particular when hiring new staff. They train their staff flawlessly on customer service. 2. Despite the long hours and difficult working conditions typical of service work, Four Seasons still has the ability to motivate its staff to exhibit exemplary customer service. How might this be explained? They treat their employees as adults, acknowledge their successes and make sure they know the importance of their work and how they help keep the pristine reputation of Four Seasons. Motivated and hardworking, the employees of the Four Seasons desire to keep the Four Seasons name in high revere. 3. What is the role of Human Resource Management practices in creating and maintaining this culture? HR is a group of individuals that make up the workforce of an organization/ company. It is up to these individuals to practice and maintain the culture Four

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Organizational Behavior 2.0 – Bauer and Erdogan 180 Instructor Manual Seasons is known for. They are the people that interact first hand with customers, they must demonstrate their pristine customer service at all times. 4. How do you think this culture was created? What were the forces that shaped it over time? Student’s answers will vary. Discussions about different factors and forces that created culture will occur, students may disagree on which factors are most prominent in shaping culture.

II. End of Chapter Materials A. ETHICAL DILEMMA Your company is in the process of hiring a benefits specialist. As a future peer of the person to be hired, you will be one of the interviewers and will talk to all candidates. The company you are working for is a small organization that was acquired. The job advertisement for the position talks about the high level of autonomy that will be available to the job incumbent. Moreover, your manager wants you to sell the position by highlighting the opportunities that come from being a part of a Fortune 500, such as career growth and the opportunity to gain global expertise. The problem is that you do not believe being part of a larger company is such a benefit. In fact, since the company was acquired by the Fortune 500, the way business is being conducted has changed dramatically. Now there are many rules and regulations that prevent employees from making important decisions autonomously. Moreover, no one from this branch was ever considered for a position in the headquarters or for any global openings. In other words, the picture being painted by the hiring managers and the company’s HR department in the job advertisements is inflated and not realistic. Your manager feels you should sell the job and the company because your competitors are doing the same thing, and being honest might mean losing great candidates. You know that you and your manager will interview several candidates together. Is this unethical? Why or why not? What would you do before the interview to address this dilemma?

B. INDIVIDUAL EXERCISE Impact of HR practices on Organizational Culture Below are scenarios of critical decisions you may need to make as a manager. Select one from each pair of statements. Then, think about the impact your choice would have on the company’s culture. 1. You need to lay off ten people. Would you a. lay off the newest ten people? b. lay off the ten people who have the lowest performance evaluations?

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Organizational Behavior 2.0 – Bauer and Erdogan 181 Instructor Manual 2. You need to establish a dress code. Would you a. ask employees to use their best judgment? b. create a detailed dress code highlighting what is proper and improper? 3. You need to monitor employees during work hours. Would you a. not monitor them because they are professionals and you trust them? b. install a program monitoring their web usage to ensure that they are spending work hours actually doing work? 4. You need to do performance appraisals. Would you a. evaluate people on the basis of their behaviors? b. evaluate people on the basis of their results (numerical sales figures, etc.)? 5. You need to promote individuals. Would you promote individuals based on a. seniority? b. objective performance?

C. GROUP EXERCISE Recruiting Employees Who Fit the Culture You are an employee of a local bookstore. The store currently employs 50 employees and is growing. This is a family-owned business and employees feel a sense of belonging to this company. Business is conducted in an informal manner, there are not many rules, and people feel like they are part of a family. There are many friendships at work, and employees feel that they have a lot of autonomy regarding how they perform their jobs. Customer service is also very important in this company. Employees on the sales floor often chat with their customers about books and recommend readings they might like. Because the company is growing, they will need to hire several employees over the next months. They want to establish recruitment and selection practices so that they can hire people who have a high degree of fit with the current culture. Working within groups, discuss the effectiveness of the following recruitment tools. Evaluate each recruitment source. Which ones would yield candidates with a high degree of fit with the company’s current culture? 1. Online advertisements 2. Magazine advertisements 3. Radio advertisements 4. Hiring customers 5. Hiring walk-ins 6. Employee referrals 7. Using the state unemployment agency

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Organizational Behavior 2.0 – Bauer and Erdogan 182 Instructor Manual Next, create interview questions for a person who will work on the sales floor. What types of questions would you ask during the interview to assess person/organization fit? How would you conduct the interview (who would be involved in the interviewing process, where would you conduct the interview, and so on) to maximize the chances of someone with a high person/organization fit?

III. Exercise Solutions and End of the Chapter Role Plays A. ETHICAL DILEMMA There are several issues to consider after reading this dilemma. The first revolves around your idea that working for a larger company is not actually a benefit. While this may be your opinion, and while it may even be true, the fact remains that a potential employee may still want the opportunity to work for a Fortune 500 organization. Additionally, simply because no one at the branch has been considered for a position at the headquarters or a global opening yet doesn’t mean that the right candidate would not be considered. Additionally, when companies merge or are acquired, there is often a period of adjustment which can unfortunately last for years. On the other hand, if you truly believe that the job you will be pitching to prospective candidates is misleading (based on objective observations, not “gut feeling”), you should probably address the issue with your supervisor. While other companies may be doing what your manager is requesting, being just as wrong as they are will not correct the situation. Perhaps it is important to consider the consequences of a misleading job offer. A quality candidate might be secured, but once that individual comes to the same realization you have, he or she is likely to leave. This kind of turnover could potentially cost the company more than taking longer to fill the spot. Additionally, at what point do you stop selling the position and start lying? If the candidate were to ask for examples of benefits since the company was taken over, can you provide concrete examples? What if they ask for names of individuals who have been promoted to headquarters?

B. INDIVIDUAL EXERCISE 1. You need to lay off ten people. Would you a. lay off the newest 10 people? There is a common phrase, “Last hired, first fired.” This means that when a company needs to lay off employees, those with seniority are given preference. However, imagine a company has just expanded into a new area and recently hired several new employees to handle the new sector. Obviously by firing these new people with specialized information, the organization would not function very well. Additionally, imagine an organization has hired several new people in preparation for a large group that is about to retire. If the newest © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 183 Instructor Manual employees were to be laid off, there would be no one to fill the void left by the retiring employees. Of course, there is always the chance that, coincidently, the last ten people hired are the best workers in the entire company. When the most recent employees are laid off, the message sent to the employees is that loyalty to the company is more important than relative performance levels of employees. b. lay off the ten people who have the lowest performance evaluations? This option may seem reasonable, and some organizations will regularly conduct a performance review and lay off the bottom ten percent of employees. However, “lowest-rated employee” is a relative concept. There may be little statistical difference among top- and bottom-ranked employees. Also, imagine a company with several departments. How would you compare performance from a warehouse worker to a salesperson? Evaluation standards can easily vary from department to department. Making a clean cut of the bottom ten employees based on performance evaluation might leave departments lopsided. Assuming that evaluations are objective, this decision sends the message that performance level matters more than time at the company. 2. You need to establish a dress code. Would you a. ask employees to use their best judgment? “Best judgment” varies drastically from person to person. It is not unusual for someone to explain an inexcusably foolish action by saying “it seemed like a good idea at the time.” Asking employees to use their best judgment will likely create a large variation in how people dress at work. At the same time, this sends the message that the employees are expected to behave like adults. b. create a detailed dress code highlighting what is proper and improper? Sometimes detailed dress codes are necessary for organizations. These dress codes could be for safety purposes, such as forbidding factory or laboratory workers from wearing open-toe shoes or certain kinds of loose-fitting clothing. They could also help a company maintain a consistent image from location to location such as a fast food restaurant requiring black shoes, black socks, khaki pants, and a special shirt bearing the company logo. Sometimes these types of strict dress codes can insult employees. In a small company, establishing a dress code may signal that the company is becoming more ruleoriented. Professional employees may resent that the company does not seem to trust them. 3. You need to monitor employees during work hours. Would you a. not monitor them because they are professionals and you trust them? If you are supposed to be monitoring employees and aren’t doing so, you can assume someone is doing something he or she isn’t supposed to be doing. Depending on the nature of the job, the consequences © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 184 Instructor Manual could vary greatly. A security person at the Pentagon who isn’t monitoring employees to make sure they aren’t removing sensitive information risks leaks of top-secret information. A supervisor at a call center not monitoring employee calls risks having an employee who is abusive to customers or simply isn’t doing any work. b. install a program monitoring their web usage to ensure that they are spending work hours actually doing work? Again, depending on the nature of the job, monitoring web usage has varying degrees of appropriateness. Individuals working at an ad firm may be insulted by the tight controls placed on web usage. Employees may regularly work very hard for several hours, then just browse around the Internet for a few minutes to take a break from work. Also, long hours demanded by a job might necessitate employees handling personal business while at work via the Internet. Alternatively, many people work within fast-paced environments. At a call center employees are expected to move seamlessly from one call to the next. Any employee who is spending time browsing the Internet will effectively be transferring the workload to other employees. Unless there is a really good reason such as ensuring the security of the work environment, organizations are advised to use monitoring sparingly. If employees are not motivated to do their jobs, catching them in the act is not the solution to the problem. Investigating the reasons for performance problems will be more meaningful. Using monitoring software sends the message that employees are not trusted. 4. You need to do performance appraisals. Would you a. evaluate people on the basis of their behaviors? This may be a reasonable method for employees whose main job is to deal with customers. In this case, behavior toward customers is a key component of the job. On the other hand, imagine a software company employing a dozen programmers. One particular programmer tends to snap at others in the office and is generally unpleasant to work with. This particular individual, however, is a brilliant programmer, and has been responsible for many breakthroughs for the organization. While the programmer’s behavior is not optimal, the job performance is phenomenal. Using these performance appraisal systems sends the message that people are valued for trying rather than for their actual results. b. evaluate people on the basis of their results (numerical sales figures, etc.)? Some jobs are difficult to evaluate based on results. A firefighter, for example, might be called out to ten fires in a given period, eight of which result in the building or home being completely destroyed. Could you then say that the individual was not an effective firefighter because of these results? What if, during one fire, the firefighter was © Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 185 Instructor Manual responsible for saving five lives? It would be difficult to quantify the various results that might arise while fighting fires. Other jobs, such as factory workers, may reasonably be judged on numerical figures, as long as effort could be directly attributed to the numerical outcome. Using these systems sends the message that results are what matters. While creating a performance-oriented culture, these systems may also create an aggressive or even unethical culture. 5. You need to promote individuals. Would you promote individuals based on a. seniority? Many people are promoted based on seniority. This may be a reward for years of dedication to the company, but it may also result in the more qualified candidate being passed over. This may or may not work in a company’s best interest. Some workers may be motivated to stay with an organization based on the notion that they may one day be promoted if they are around long enough. Conversely, some people may opt to leave an organization that does not promote based on merit. These systems often create a culture of mediocrity (high performers leave and remaining employees start having a sense of entitlement). b. objective performance? Objective performance certainly seems like the best method for promoting individuals within an organization; however, it does not always work. Some people are phenomenal in a particular position, for example as a salesperson, but do not possess the skills to manage other salespeople. At the same time, some jobs are notorious for being difficult to measure objective performance. Teachers, for example, are often given raises based on seniority. Many people have tried to develop a system to measure a teacher’s performance, but differences in class makeup and school location can skew most measures such as grades or test scores. Using objective performance as the sole criterion for promotions will likely create a performance-oriented but also potentially aggressive and maybe an unethical culture.

C. GROUP EXERCISE 1. Newspaper advertisements This might be a reasonable method for recruiting employees. In one sense you will reach a group of people who read the paper, which is becoming more limited and specific each year. On the other hand, many people go to the newspaper when looking for jobs, thereby giving a more generalized sample of potential candidates. Additionally, in modern times, many newspaper advertisements are available online as well, broadening the potential employee base even more. 2. Magazine advertisement

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An advertisement in a magazine could go a long way in finding an employee who would make a good fit. Magazines are specific enough to give you an easy way to zero in on the type of employee you would want to hire. For example, an advertisement in a magazine geared toward literature would give you access to people with an interest in literature. Additionally, people do not generally pick up random magazines when looking for job offerings, so the ad would remain within a particular population of interest. Radio advertisement A radio advertisement, if done appropriately, could draw the types of employees that the company wants. By selecting particular stations, the employer could home in on individuals that might work best in the position. Hiring customers Based on the job description and personal attributes that the employer is seeking, hiring customers could would very well. The fact that someone already shops at the bookstore indicates that the individual is interested in books. The customer may also be familiar with current staff and may even shop at the store because of the pleasant environment. Since the customer knows and likes how customers are treated at this store, he or she may easily adopt the ethics of the employer and be an excellent fit. Hiring walk-ins Walk-in applicants may be more familiar with the business; however, they may also want to work at the bookstore because of its location. Perhaps they live a few blocks away, or the store is easy to get to. In both of these cases, the applicants may be applying for reasons that would not necessarily make a good fit within the company. On the other hand, the bookstore is family owned. Someone living in close proximity to the store may have a dedication to the neighborhood and would prefer working for a small, family owned business rather than a regional or national organization. Employee referrals This method may work well for the organization. Employees are familiar with demands of the job as well as expectations for customer service. They be able to identify people they know would make a good fit, and because similar people tend to associate with each other, current employees may also know many other people that would work well within the organization. The state unemployment agency may work well for the company; however, the breadth of backgrounds might make it difficult to find an employee who would work well within the organization. Because everyone at the unemployment agency is looking for a job (and often any job) the company may be overwhelmed with applicants, further complicating the hiring process.

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 187 Instructor Manual Sample interview questions What are the last three books you have read? What is your favorite book? What are your two favorite genres? Have you worked in an unstructured environment before? Are you a good self-motivator? Do you generally get along with your coworkers? Do little things tend to upset you? Are you generally in a good mood? Do you like to meet new people? At social events, do you tend to talk to as many people as possible or stick around one or two close friends? It might not be a bad idea to allow the potential candidate to be interviewed by certain staff members as well as the manager. For example, the manager could ask the questions regarding personality and previous employment. Then employees could ask questions related to literary preferences and make their own judgments about personality and whether the person would make a good fit.

IV. Relevant TED Talks for bringing course concepts to life A. Title: The paradox of choice by Barry Schwartz https://www.ted.com/talks/barry_schwartz_on_the_paradox_of_choice Synopsis: Barry explains how culturally in western society there is a substantial freedom of choice, however this may not prove to always be such a good thing. In fact, he believes that the freedom of choice has left us paralyzed and dissatisfied. B. Title: How giant websites design for you (and a billion others, too) by Margaret Gould Stewart https://www.ted.com/talks/margaret_gould_stewart_how_giant_websites_desi gn_for_you_and_a_billion_others_too Synopsis: As director of product design, Stewart lists the three rules for designing at such a large scale, and how just the smallest mistakes can cause global outrage, and affect the lives of people all over the world.

© Bauer & Erdogan 2016, published by Flat World Knowledge 

Organizational Behavior 2.0 – Bauer and Erdogan 188 Instructor Manual Additional Readings S. Chris Edmonds (2014). The culture engine: A framework for driving results, inspiring employees, and transforming your workplace. Wiley. Seth Godin (2008). Tribes: We need you to lead us. Portfolio Hardcover. Edgar H. Schein (2010). Organizational culture and leadership. NY: Jossey-Bass. Robert Spector (2005). The Nordstrom way to customer service excellence: A handbook for implementing great service in your organization. Hoboken, NJ: John Wiley and Sons. Michael Watkins (2003). The first 90 days: Critical success strategies for new leaders at all levels. Boston, MA: Harvard Business School Press.

© Bauer & Erdogan 2016, published by Flat World Knowledge