CH-1-2 What Is Organizational Behaviour? – Organizational Behaviour: Improving Performance and Commitment in the Workplace : Book Guide

This Document Contains Chapters 1 to 2 Chapter 1 What Is Organizational Behaviour? CHAPTER OVERVIEW Organizational behaviour is a field of study devoted to understanding and explaining the attitudes and behaviours of individuals and groups in organizations. The two primary outcomes of organizational behaviour are job performance and organizational commitment. This chapter explores the factors that affect these outcomes, and shows how scientific studies provide evidence that good organizational behaviour policies are linked to employee productivity, firm profitability, and even firm survival. This chapter also shows how we “know what we know” about organizational behaviour by describing the scientific research process. LEARNING OUTCOMES After reading this chapter, you should be able to answer the following questions: 1.1 What is the definition of “organizational behaviour” (OB)? 1.2 What are the two primary outcomes in studies of organizational behaviour? 1.3 What factors affect the two primary OB outcomes? 1.4 Why might firms that are good at OB tend to be more profitable? 1.5 What is the role of theory in the scientific method? 1.6 How are correlations interpreted? CHAPTER OUTLINE I. What Is Organizational Behaviour? Try This!: Open the very first class by asking them to picture their worst coworker ever and to list the things that person did to earn “worst coworker” status. Then have them do the same with the best coworker ever, listing the things that person did to earn “best coworker” status. Both of these lists should be written on the board, a process that will result in a table similar to Table 1-1. Then get them to understand the importance of explaining why the two people act so differently. That process of explanation is what OB is all about. A. Organizational Behaviour Defined Organizational behaviour is a field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviours of individuals and groups in organizations B. Role of Management Theory Organizational behaviour is a field of study that has an important historical context, and has evolved from several historical movements and landmark studies – including Scientific Management and the Human Relations movement II. An Integrative Model of Organizational Behaviour A. Provides a roadmap for the field of organizational behaviour, and shows how different chapters in the text are related B. Individual Outcomes – These are the two primary goals of organizational behaviour 1. Job performance (Chapter 2) – how well employees do on the job 2. Organizational commitment (Chapter 3) – how likely employees are to remain with an organization. Employee retention is a huge issue for many Canadian firms. C. Individual Mechanisms - These directly affect job performance and organizational commitment 1. Job satisfaction (Chapter 4) – what employees feel about their work 2. Stress (Chapter 5) – psychological responses to job demands that tax or exceed an employee’s capabilities 3. Motivation (Chapter 6) – energetic forces that drive an employee’s work 4. Trust, justice, and ethics (Chapter 7) – degree to which employees feel that their company does business with fairness, honesty, and integrity 5. Learning and decision making (Chapter 8) – how employees gain job knowledge and use that knowledge to make decisions D. Individual Characteristics and Group Mechanisms – These affect individual mechanisms mentioned above 1. Personality, cultural values, and abilities (Chapter 9) – describe various individual traits and characteristics that say what we are like and what we can do. 2. Teams, diversity, and communication (Chapter 10) – the qualities that teams possess, including norms, roles, and the way team members depend on each other. Also how teams behave with regard to communication, cooperation, and conflict. 3. Power, influence, and negotiation (Chapter 11) – the process by which individuals gain authority over other individuals 4. Leader styles and behaviours (Chapter 12) – describes the specific actions leaders take to influence others at work E. Organizational Mechanisms – Also affect individual mechanisms, because they influence the environment in which work is done 1. Organizational structure (Chapter 13) – shows how various units within an organization communicate 2. Organization culture and change (Chapter 14) – describes the shared rules, norms, and values that shape behaviour for organizational employees, and how to change or manage cultures. OB Internationally. This feature is a valuable tool to help students understand how the relationships among OB concepts, and their applications, varies across cultures. A good way to begin discussing international issues in Chapter 1 is to ask students to describe their international experiences. How many students are international students? How many were born or raised in another country prior to moving to Canada? How many have lived or worked abroad? How many have gone abroad on study trips or vacations? Once you’ve gotten a feel for the experience levels of the class, ask students if they believe that the importance of the concepts in the integrative model of OB will vary across cultures, or whether their importance will be universal. If they believe the importance varies, should multinational corporations design their OB policies to function differently at different branches? What are the pluses and minuses of such a strategy? III. Does Organizational Behaviour Matter? A. Building a Conceptual Argument 1. Resource-based view of organizations – looks at what makes resources capable of creating long-term profits for a firm 2. Resources are considered to be more valuable when they are: a. Rare – “good people are hard to find” b. Inimitable – people are difficult to imitate for three reasons: i. History – people have a collective pool of experience, wisdom, and knowledge that benefits the organization ii. Numerous Small Decisions – big decisions are easy to copy – it is the small decisions that people make day-in and day-out that are significant for an organization Try This! Ask students to think of all the times when one company copied a big decision made by another. For example, consider the recent move by Microsoft to open retail stores in Canada that mimic the look and feel of Apple Stores. What are some examples of times where that copying has proven successful? What are some examples of times when that copying seem to be successful? What explains those differences in copying success? iii. Socially Complex Resources – resources like culture, teamwork, trust and reputation come from the social dynamics of a given firm in a given time B. Research Evidence 1. Study 1 a. Survey of executives from 968 publicly held firms with 100 or more employees b. High performance work practices were related to decreased turnover, increased sales, increased market value, and increased profitability 2. Study 2 a. The prospectuses of 136 companies undergoing IPOs in 1988 were examined for evidence that the company valued OB issues b. Firms which valued OB had a 19% higher survival rate than those that did not 3. Study 3 a. “Best Companies to Work For” lists (e.g., Top 100 employers). Many of these companies demonstrate exceptional OB practices, and are very profitable – even in difficult economic times. Try This! If the students have on-line access, have them work in small groups and look up some of the Canadian companies that have made the “Best Companies” or “Top Employers” lists (going beyond the companies listed in Table 1-3). Ask them to consider how these lists could be used to scientifically test whether being good at OB improves profitability. Usually students can guess many of the details of the study described in the book. C. So What’s So Hard? 1. Many organizations do a bad job of managing OB issues because they don’t view OB issues in a comprehensive fashion a. No single OB practice can increase profitability by itself b. Rule of One-Eighth i. Half the organizations don’t believe there is a connection between people and profits ii. Half of those who see the connection try to make a single change, rather than attempting to make comprehensive changes iii. Half of the firms that make comprehensive changes persist long enough for those changes to make a difference iv. ½ x ½ x ½ = ⅛ OB on Screen: Office Space. If you have access to this movie, please play it for your students during class. This scene depicts Peter Gibbons, a computer programmer at Initech, as he struggles to get through his work day. Eventually he seeks the advice of a therapist, which inadvertently causes him to embrace the role of an “office slacker.” The scenes provide a case study of an employee with low job performance and low organizational commitment. Ask the students why Peter seems to be struggling. What concepts from Figure 1-1 seem most relevant? Students who have seen the entire movie will be able to point to a number of different concepts that explain Peter’s current ineffectiveness. Try This! Use the Office Space clip for a different chapter. The clip provides a good demonstration of counterproductive behaviour from Chapter 2 on Job Performance. Ask the students which specific types of counterproductive behaviour Peter has engaged in. It also provides a good demonstration of withdrawal behaviour from Chapter 3 on Organizational Commitment. Again, ask the students which specific behaviours are evident in the clip. IV. How Do We “Know” What We Know About Organizational Behaviour? A. According to philosophers, there are four ways of knowing things: 1. Method of experience – believing something because it is consistent with your experience 2. Method of intuition – believing something because it seems obvious or self-evident 3. Method of authority – believing something because a respected source has said it is so 4. Method of science – believing something because scientific studies have replicated that result using a series of samples, settings, and methods Try This! Ask students how they know the factors that improve health. What kinds of dietary philosophies do they know to be healthy? What kinds of exercise practices do they know to be healthy? Once the “knowledge in the room” has been summarized, explore where that knowledge came from. How much of it was just experience or intuition? How much of it comes from authorities (e.g., doctors, trainers, books). How much of it comes from science, either directly (news reports, magazine reports) or indirectly (through relevant authorities). Does any of the “knowledge in the room” conflict with each other (for example, some students think a low fat diet is more critical; others think a low carbohydrate diet is more critical)? Which method of knowing would be most valuable for reconciling such conflict? B. Scientific Method 1. Theory – collection of assertions that specify how and why variables are related 2. Hypotheses – written predictions that specify relationships among variables 3. Data – collection and observation of behaviours and outcomes related to the hypotheses 4. Verification – use of statistical methods to determine whether or not a hypothesis can be disconfirmed a. Example of verification process is correlation Try This! Ask ten students to volunteer their height in inches and their weight in pounds. Ask them to write the numbers down on a sheet of scrap paper. Then input them into an Excel spreadsheet, placing them in columns A and B. Ask students to eyeball the two columns of numbers and guess the correlation. Then calculate it using this formula: = correl(a1:a10,b1:b10). Did the resulting correlation differ from the population value (.44, as given in Table 14). Ask the students why the class number might differ from the population value, using that to explain why multiple studies (and high sample sizes) are needed when performing OB research. Then ask the students whether the correlation between job satisfaction and job performance should be higher or lower than the correlation between height and weight. Use that frame of reference to get them to understand that correlations of .30 are actually moderate in size, and correlations of .50 are actually strong in size. b. Correlations are not enough to prove causation. Making causal inferences requires ruling out alternative explanations. Experimental methods are often used for that purpose, as they are able to control external factors that could create misleading correlations. c. A meta-analysis takes all of the correlations found in a set of studies and calculates a weighted average of those correlations to help understand the overall relationships between variables. Metaanalyses can also be a helpful guide for evidence-based management, where management education and practice relies on scientific findings (as in medicine). V. Summary: Moving Forward in this Book OB Assessments: Introspection. This brief survey can be used to give students a feel for the types of data that are often collected in organizational behaviour studies. Introspection, specifically, is relevant in an OB course because introspective students can use the content in the chapters to better understand their current and past work experiences, and their strengths and talents as employees. Use a show of hands to see how many students fell above and below the average level, and see if students will volunteer any extremely high or low scores. Challenge students who score low on the assessment to actively try to apply course content to their own experiences and characteristics. DISCUSSION QUESTIONS 1.1 Can you think of other service businesses that, such as those listed in Table 1-3, seem to do an effective job with customer service? Which organizational behaviour topics would be most important to maintaining that high level of service? Answer: The business examples will vary, as will the list of topics most relevant to OB. The point that should emerge is that all of these topics potentially lead to desired outcomes. A big part of successful customer-focused organizations, such as RBC and WestJet, is the hiring of people who are committed to the organization, and then making sure that they stay motivated under stressful conditions. Leadership is important, but perhaps more important are personality, ability, team processes and organizational culture. 1. Amazon - Excellent in fast delivery and hassle-free returns. 2. Zappos - Renowned for its exceptional customer service and generous return policies. 3. Ritz-Carlton - Famous for personalized service and attention to detail. Organizational behavior topics crucial for maintaining high service levels include: • Employee Motivation and Engagement: Ensuring staff are motivated and engaged in providing excellent service. • Customer Relationship Management: Building strong, positive relationships with customers. • Training and Development: Continuous training to keep staff skilled and knowledgeable. • Leadership and Management Styles: Leaders should model and encourage service excellence. 1.2 Think again about the worst coworker you’ve ever had—the one who did some of the things listed in Table 1-1. Think about what that coworker’s boss did (or didn’t do) to try to improve his or her behaviour. What did the boss do well or poorly? What would you have done differently, and which organizational behaviour topics would have been most relevant? Answer: One boss, when faced with a “bad” employee, got more and more authoritarian – finding fault with everything the employee did and penalizing the employee for every fault. As a result, the employee was more and more demotivated. An alternative approach would be to discuss the employee’s strengths and weaknesses with him, determining the cause of the poor performance, and seeking more helpful solutions for dealing with it. For example, discussing the employee’s individual characteristics might yield knowledge about how to place that person for maximum effectiveness and job satisfaction. An analysis of group mechanisms could help to determine whether or not the employee had the proper support to do his work. And an analysis of organizational mechanisms might provide information on changes that need to be made to the environment for the employee to improve. 1.3 Which of the Individual Mechanisms in Figure 1-1 (job satisfaction, stress, motivation, trust, justice, and ethics, learning and decision-making) seems to drive your performance and commitment the most? Do you think you’re unique in that regard or do you think most people would answer that way? Answer: Answers to this question will vary, but the important point to make when discussing the question is that everyone is different, and that when trying to motivate employees, those differences must be taken into account. Motivation likely drives my performance and commitment the most, as it fuels engagement and effort in tasks. While individual responses can vary, many people would also prioritize motivation because it directly impacts their enthusiasm and persistence in achieving goals. 1.4 Think of something that you “know” to be true based on the Method of Experience, the Method of Intuition, or the Method of Authority. Could you test your knowledge using the Method of Science? How would you do it? Answer: It is often fun to work with adages (i.e., short but memorable sayings which are considered true by many people). Examples might be “too many cooks spoil the soup”, “when it rains, it pours,” “don’t judge a book by its cover”, or “two heads are better than one.” Students will come up with others. Have students think of ways these could be test, scientifically. Answers will vary. Method of Authority: If I know that a specific leadership style enhances team productivity because an expert or authoritative source claims it, I could test this using the Method of Science by conducting an experiment. For instance, I could implement the leadership style in one team and use a control group with a different style, measuring productivity levels in both to compare outcomes scientifically. CASE: LEADING THE WAY (PART 2) Questions: 1.1 Most of would agree that it is easy to get along and work with people who share similar values, interests, perspectives, and experiences. Is it possible to be different yet feel similar? Explain. Answer: The case illustrates what one “admired” organization is doing to promote a diverse workforce. This question was designed to help students discover a potential dilemma with this strategy. On the one hand diversity (i.e., having group members who are different with respect to ethnicity, expertise, personality, abilities, interests and values) provides for a larger pool of resources and perspectives from which the group, team or organization can draw upon to carry out its work. On the other hand, and as implied in the question, people who are fundamentally different may encounter more trouble communicating and coordinating their respective activities. So does diversity help or harm a group, team or organization? To make sense of this, students should recognize that diversity occurs on different levels (see Chapter 10): surface-level diversity (observable differences, such as physical characteristics, style of dress, or language).versus deep-level diversity (differences in values, interests and attitudes that are inferred from behaviour). Yes, it is possible to be different on the surface, yet similar in attitudes and core values which, in turn, should enhance communication within the team. Diversity becomes a problem when surface-level differences extend to deep-level attributes that are important for job performance. 1.2 In the case we heard reactions from two participants in RBC’s reciprocal mentoring program. Why do you think that they call is reciprocal? What effects, if any, do you think participation has on the mentors? Explain. Answer: The notion of reciprocal mentoring is when people who are being mentored agree to mentor others. It’s a very powerful way to establish supportive internal social networks, and facilitates the communication and exchange of tacit knowledge (see Chapter 8) so critical for one’s career advancement. In the case, establishing internal mentoring relations is one of the initiatives that RBC uses to promote diversity conversations and dialogue – and understanding! The effect of this program is twofold. Mentors benefit because they have a chance to hear, first hand, what some of the challenges and issues are when it comes to diversity. These concerns can then inform subsequent strategy and implementation decisions. Of course, mentees benefit because they feel their concerns are being heard and that the organization cares about and supports them. As we will see in Chapter 3, these feelings are important for fostering both affective and normative commitment, which pay-off in terms of staying and higher performance. 1.3 According to a recent census by Statistics Canada, 51% of Canadians were women, 3.8% were aboriginal peoples, and 16.2% were visible minorities. There were no statistics for people with disabilities. According to Statistics Canada, we also know that more and more people will be leaving the labour force as members of the baby-boom generation approach retirement age. What are the implications of these external realities for RBC and its approach to diversity management? Explain. Answer: The information in the case states that RBC workforce demographics are as follows: 69% are women, 1.6% aboriginal peoples, 3.7% are persons with disabilities, and 27.3% are visible minorities. Students should see that when compared with national statistics, females and visible minorities are overrepresented whereas the proportion of aboriginal peoples is slightly underrepresented. Is this a problem? Student opinions will vary. One of the major implications of mass baby-boom retirement is that many experienced and skilled individuals will be leaving organizations across the country. On the one hand, this should create promotion opportunities for incumbents who desire a chance to develop their careers. On the other hand, the risk is that demand for skilled workers will increase in an ever-increasing competitive labour market. One way to address the anticipated labour shortage is to make the bank more attractive to under-represented groups – in this case, male applicants. Another way to address this issue would be to make the bank more attractive to older workers, who may have retired from their formal duties but are willing to come back part-time or on a contract basis. It is noteworthy that some of the fastest growing segments in our population are the aboriginal communities. Finding ways to tap into this labour pool would be positive. The fact the bank has established (and successful) diversity programs in place would make this organization attractive for aboriginal workers. BONUS CASE: STARBUCKS Wherever you are as you read this book, chances are good that a Starbucks isn’t too far away. By the start of 2006 there were about 10,000 Starbucks locations worldwide, including a mall, campus, airport, or exit near you. Although some people may worry about the fate of their local, independent coffee shops or the high price of Starbucks coffee, consider the answers to these questions. When was the last time your Starbucks was messy? When was the last time you were treated rudely by the person across the counter? When was the last time your order of choice tasted wrong (or even just a bit different)? One reason for Starbucks’s success is that such occurrences are quite rare, especially in reference to other service, retail, or dining venues. Who receives much of the credit for the consistency in Starbucks service? The rank and file employees who run the stores and interact directly with the customer. Somehow Starbucks has been able to find employees who are conscientious and intelligent, who seem motivated and satisfied with their jobs, who remain committed to their stores for a longer-than-normal period of time, and who perform their job duties reliably and enthusiastically. Put simply, Starbucks seems to be doing a good job managing organizational behaviour. Some support for that claim comes from Fortune magazine’s list of the 100 Best Companies to Work For in 2007, where Starbucks placed 16th. Generous benefits and health care coverage—even for part-time workers or for spouses and partners—seem to have instilled a sense of commitment, as Starbucks’s voluntary turnover rate is 120% lower than the average quick service restaurant business. Guiding principles like “provide a great work environment” and “treat each other with respect and dignity” seem to have fostered a sense of satisfaction with the culture of the organization. Indeed, a recent survey showed that 82% of employees were either “satisfied” or “very satisfied” with the company. In addition, the social activism of the company—Starbucks contributed $15 million to local nonprofits in 2004—seems to have built a sense of trust and ethics among the rank and file. Taken together, such policies and practices are increasing the likelihood that your next Starbucks visit will be a pleasant one. Sources: Gold, E. Commentary: With roughly 9000 stores, Starbucks serves it up by design. St. Louis Daily Record, May 13, 2005. Levering, R., & Moskowitz, M. In good company. Fortune, January 22, 2007. Weber, G. Preserving the counter culture. Workforce Management, February 1, 2005. Questions: 1.1 Do you believe that Starbucks’ corporate culture has given the organization a competitive advantage in the industry? Explain. Answer: Starbucks has gained a competitive advantage in the industry simply by creating a culture which encourages employees to stay with the company. Since turnover rates at fast food restaurants are 120% higher than Starbuck’s turnover rates, Starbucks has an advantage not only because they have to find fewer employees than other companies in their industry, but also because of decreased training costs and improved customer service. 1.2 What makes Starbucks more desirable to work for than other coffee shops? Would you prefer to work at Starbucks? Why or why not? Answer: Working for Starbucks has a number of benefits, not the least of which is their benefits package. In addition, the Starbucks practices of “providing a great work environment” and “treating employees with respect and dignity” give people reason to choose Starbucks as an employer. When discussing this question, you may want to find out if any of your students currently work at Starbucks, and if so, whether their experiences match the ones described in this case. EXERCISE: IS OB COMMON SENSE? Instructions: Many students complain that OB is “just common sense.” They typically say this after hearing some intuitive research finding such as “perceptions of task variety are positively related to job satisfaction.” However, virtually anything seems intuitive once you’ve heard it—the trick is to come up with the important concepts yourself before being told about them. This exercise shows how difficult it can be to do that, thereby demonstrating that OB isn’t just common sense. This exercise should take around 15 minutes. Begin by going over the sample theory diagram (for movie box office receipts) so that they understand what a theory diagram is. Then put them into groups and have them pick from among the four potential topics (job satisfaction, strain, motivation, trust in supervisor). Have them create a diagram of their own using their chosen topic as a dependent variable. Sample Theories: Here’s an example of what students might come up with for Job Satisfaction. Their models will typically have some things that have been supported by academic research, though usually they won’t use academic terms. For example, the “fun tasks” box reflects a concept similar to “satisfaction with the work itself.” However, the models will often include things that have not been as supported, such as the relationship between having good job skills and viewing job tasks as fun. Most often, however, the models will omit importance concepts. Have slides ready of Figure 4-7 on job satisfaction, Figure 5-3 on strain, Figure 6-6 on motivation, and Figure 7-7 on trust in supervisor. Then compare the students’ diagrams to those diagrams. For example, if the figure below is compared to Figure 4-7, a number of omissions are evident. Questions: If OB was just common sense, students wouldn’t include variables in their model that don’t actually impact the outcome in question. Nor would they omit variables from the model that do impact the outcome in question. Either kind of mistake shows that students don’t automatically know what OB concepts are relevant to key OB outcomes. Chapter 2 Job Performance CHAPTER OVERVIEW Job performance is the set of employee behaviours that contribute to organizational goal accomplishment. It has three components: 1) task performance, or the transformation of resources into goods and services; 2) citizenship behaviours, or voluntary employee actions that contribute to the organization; and 3) counterproductive behaviours, or employee actions that hinder organizational accomplishments. This chapter discusses trends that affect job performance in today’s organizations, as well as practices that organizations can use to manage job performance. LEARNING OUTCOMES After reading this chapter, you should be able to answer the following questions: 2.1 What is job performance? 2.2 What is task performance? 2.3 How do organizations identify the behaviours that underlie task performance? 2.4 What is citizenship behaviour? 2.5 What is counterproductive behaviour? 2.6 How can organizations use job performance information to manage employee performance? CHAPTER OUTLINE I. Job Performance A. Defined as the value of the set of employee behaviours that contribute either positively or negatively to organizational goal accomplishment 1. Behaviours are within the control of employees, but results (performance outcomes) may not be 2. Behaviours must be relevant to job performance II. What Does It Mean To Be A “Good Performer”? A. Task Performance 1. Task performance involves employee behaviours that are directly involved in the transformation of organizational resources into the goods or services that the organization produces a. Routine task performance involves well-known responses to predictable demands b. Adaptive task performance involves responses to novel or unusual task demands c. Creative task performance involves developing ideas or physical products that are both novel and useful 2. Job analysis can be used to define task performance for different jobs a. List the activities done on the job b. Use “subject matter experts” to rate each activity on importance and frequency c. Select the activities that are rated highly on importance and frequency and use them to describe the job d. Job analysis results can be used to create the tools managers need to evaluate job performance e. NOC (National Occupational Classification) is an online database that provides job descriptions for most jobs i. Information from NOC needs to be supplemented to capture organizational values and strategies ii. Another online database, O*NET, may be easier to use and will contain relevant information for many of the same jobs covered by the NOC Try This! To demonstrate the value of job information in a way that really engages students, ask for an example of a job from a student in class, and then brainstorm to identify critical tasks. After you have a reasonable list, enter the job in NOC (http://www5.hrsdc.gc.ca/noc) or in O*NET (http://online.onetcenter.org) and then compare the resulting tasks with the list from the brainstorm. At that point, you can discuss reasons why the lists may have differed. Although the brainstorm list may be shorter and less detailed, it typically includes extra tasks that reflect student assumptions regarding organizational values and strategy. 3. Task performance behaviours are not simply “performed” or “not performed” – the best employees exceed performance expectations by going the extra mile on the job B. Citizenship Behaviour 1. Citizenship behaviour is defined as voluntary employee activities that may or may not be rewarded, but contribute to the organization by improving the overall quality of the setting in which the work takes place a. Interpersonal citizenship behaviour involves assisting and supporting coworkers in a way that goes beyond normal job expectations. Helping, courtesy, and sportsmanship are all interpersonal citizenship behaviours OB Assessments: Helping. This survey helps students to assess how helpful they are under normal circumstances. Since helping behaviours are socially desirable, this may be a good time to point out the value of honest self-assessment to students. If students are unsure of whether or not they can evaluate themselves objectively in this regard, they may want to ask co-workers or class teammates to fill out the form about them. It is also worthwhile to discuss the importance of helping behaviours relative to task performance in the context of teams. Which type of performance is more important? What reactions do team members have when confronted with a team member who is not helpful? Is this the same reaction when a team is confronted with a member who is not effective with respect to task performance? b. Organizational citizenship behaviour involves supporting and defending the organization through voice (offering supportive ideas for change), civic virtue (participating in company activities at a deeper-than-normal level), and boosterism (representing the company in a positive way in public.) Try This! Ask students to name examples of organizational citizenship behaviours in jobs that they’ve held. For example, students who have worked as servers might have suggested better menu items (voice), might have paid attention to how other restaurants did things (civic virtue), and might have said good things about the restaurant to their friends, rather than sharing kitchen horror stories (boosterism). c. Citizenship behaviours are relevant for all jobs, and provide clear benefits to the effectiveness of work groups and organizations d. Citizenship behaviours become more vital during organizational crises OB Internationally. A good question to ask students in class is whether they think that citizenship behaviours are likely to be valued differently in different cultures. The findings from the study described in the insert box suggest that the value for citizenship behaviour may be universal, and this may surprise some students. The discussion can focus on why the value of these behaviours may be similar across cultures that may seem to be quite differ from one another. C. Counterproductive Behaviour 1. Counterproductive behaviours intentionally hinder organizational goal accomplishments a. Property deviance harms an organizations assets and possessions and can include sabotage and theft b. Production deviance reduces the efficiency of work output, and includes wasting resources and substance abuse c. Political deviance refers to behaviours that harm individuals within the organization, and can include gossiping and incivility d. Personal aggression involves hostile verbal and physical actions taken towards other employees. Examples are harassment and abuse. OB on Screen: Hancock. If you have access to this movie, please play it for your students during class. This scene depicts a superhero named Hancock being counseled by a public relations spokesperson. The scene provides an interesting case of someone who is a good performer from a task performance perspective (he puts out a fire, removes a whale from the beach) but a bad performer from a counterproductive behaviour perspective (he steals an ice cream cone, and flings a whale into the ocean and wrecks a sailboat). One topic for class discussion is how Hancock stacks-up in terms of his performance. The students should quickly come to the conclusion about task performance and counterproductive behaviour. Some students may suggest that Hancock is low in citizenship behaviour because he doesn’t appear to be particularly courteous or a good sport. Other students may suggest that Hancock is high in citizenship behaviour because his behaviours are voluntary and his behaviour ultimately helps promote a safer city. You can point out that there isn’t much in the scene to indicate the specific types of interpersonal citizenship or organizational citizenship. You can also explain that in trying to score Hancock’s citizenship behaviour they are making inferences about this aspect of performance based on other aspects of performance, and this is something to avoid in real world ratings context where the intent to is to gather valid information about specific aspects of performance. Another topic for class discussion is why an organization would put up with someone like Hancock. Their conclusion is that we do this for exceptional performers—people with unique and rare capabilities with respect to task performance—but even then, there are limits because (a) eventually it affects everyone around them, and (b) there are legal ramifications. Try This! Use the Hancock clip for a different chapter. The clip provides a good demonstration of personality traits and abilities from Chapter 9 (e.g., low conscientiousness, low agreeableness, high extraversion, low emotional intelligence, high levels of many physical abilities). Bonus OB on Screen (from 1st ed): Monsters, Inc. Chapters 6-8 of the DVD (beginning at 9:11 and ending at 17:24 for a total running time of 8 minutes, 12 seconds) contrast the performance of Sulley and Randall, two employees at Monsters, Inc. Although the scenes clearly show that both employees are effective from a task performance perspective, there are some pretty dramatic differences in terms of their citizenship and counterproductive behaviours. Class discussion could begin with the question, “Are Sulley and Randall both good performers? This discussion can turn into a good debate because some students will insist that Sulley and Randall both produce results that are exceptional, and that’s all that should matter. Students on the other side of the debate will tend to focus on the negative effects of Randall’s behaviour on the morale of the employees. Some students will make comments that reflect an assumption that other types of citizenship and counterproductive behaviours are present even though the behaviour is not depicted in the scenes (e.g., Sulley is likely to be very helpful to co-workers whereas Randall is not). Discussion could then focus on the validity of this assumption. The video could also serve as a point of reference when discussing different types of citizenship and counterproductive behaviours. The most obvious differences in the behaviour of Sulley and Randall are in the sportsmanship aspect of citizenship behaviour and the personal aggression aspect of counterproductive behaviour. D. Summary: What Does it Mean to be a Good Performer? III. Application: Performance Management A. Management By Objectives (MBO) 1. MBO is a performance evaluation system that evaluates people on whether or not they have met pre-established goals. It is best suited for employees with jobs that have quantifiable measures of job performance. a. Employee meets with manager to develop mutually agreed-upon objectives b. Employee and manager agree on a time period for meeting those objectives c. Manager evaluates employee based on whether or not objectives have been met at the end of the time period B. Behaviourally Anchored Rating Scales (BARS) 1. BARS look at job behaviours directly a. Critical incidents are used to develop evaluation tool that contains behavioural descriptions of good and poor performance b. Supervisors typically rate several dimensions and average across them to get overall rating c. BARS can complement MBO by providing information about why an objective has been missed C. 360 Degree Feedback 1. A 360 Degree performance evaluation includes performance information from anyone who has firsthand experience with an employee – including subordinates, peers, and customers a. With the exception of the supervisor’s ratings, all ratings are combined so raters stay anonymous to employee b. 360 degree ratings are best suited for use as a developmental, rather than evaluative, tool, because of difficulties related to combining information from different sources, and the possibility of bias in the ratings D. Forced Ranking Systems 1. Forced ranking systems make managers “grade on a curve” when evaluating performance, allocating some percentage of employees into categories such as below average, average, or above average a. These systems were popularized by Jack Welch at General Electric, whose “vitality curve” grouped employees into the “top 20”, “vital 70”, and “bottom 10” categories b. Although these systems force managers to differentiate between employees, they may be inconsistent with team-based work, which requires more collaboration than competition Try This! Ask students to debate whether their OB course should be graded on a curve, with a predetermined percentage of students earning an A, B+, B, B-, and so forth. Assign one portion of the class to be the “yes” side and the other portion of the class to be the “no” side. Then, once the two sides have shared their best arguments, allow the class to vote (in a non-binding fashion, of course). E. Social Networking Systems 1. Technologies like those used in Facebook and Twitter are beginning to be used to provide feedback, monitor performance, update goals, and discuss performance management issues DISCUSSION QUESTIONS 2.1 Describe the job that you currently hold or hope to hold after graduation. Now look up that job in the NOC (http://www5.hrsdc.gc.ca/noc),or O*NET (http://online.onetcenter.org). Does the profile of the job fit your expectations? Are any task duties missing from on-line profile? Answer: The on-line profile, either based on NOC or O*NET will provide a generic picture of the job in question. A positive of this approach is that you will acquire a broad or general sense of the kinds of tasks, behaviours, and skills that might be required. This might be helpful if you desire a high-level view of the job in questions. What the generic approach misses, however, is the emphasis on certain task duties or behaviours that reflects a particular company’s culture, values, and strategy. 2.2 Describe a job in which citizenship behaviours would be especially critical to an organization’s functioning and one in which citizenship behaviours would be less critical. What is it about a job that makes citizenship more important? Answer: Almost any sales position requires citizenship behaviours to help the company function effectively. When sales personnel speak well of their company (boosterism), when they participate in voluntary company activities (civic virtue) and when they suggest helpful changes to the product or sales process (voice), the company will thrive. Students are likely to suggest solitary jobs as not needing citizenship behaviours, but they may be surprised by how much citizenship affects those jobs, as well. For example, an author seems to work alone, but in reality, he or she must function effectively with editors, publishers, layout and copy design personnel, marketing professionals, agents, publicists, etc., in order to be successful. Citizenship behaviours will help the group come together and function effectively as a team. Critical Role for Citizenship Behaviors: A customer service representative. This role requires proactive problem-solving, cooperation, and going above and beyond to ensure customer satisfaction. Citizenship behaviors like helping colleagues, taking initiative, and showing a positive attitude enhance overall service quality and customer experience. Less Critical Role for Citizenship Behaviors: A data entry clerk. While accuracy and efficiency are important, this role typically involves more isolated tasks with less direct impact on team dynamics or organizational culture. Citizenship behaviors are less crucial because the job is more focused on individual tasks rather than collaborative or customer-facing responsibilities. Importance of Citizenship: Jobs requiring frequent interaction with customers or team members benefit greatly from citizenship behaviors due to the need for proactive support, cooperation, and positive contributions to team and organizational culture. 2.3 Figure 2-2 classifies production deviance and political deviance as more minor in nature than property deviance and personal aggression. When might those “minor” types of counterproductive behaviour prove especially costly? Answer: Political deviance can be especially costly in contexts where the people who perform the jobs are highly mobile (i.e., have knowledge, skills, and experiences that are in high demand). Gossiping and incivility, on the surface, may appear relatively innocuous. However, these behaviours can create toxic working environments, which, in turn, will do more to drive people away. Losing good people, or hard-to-find people, will increase recruiting costs and adversely affect staff morale. Production deviance, even minor things like stealing office supplies, can be costly when aggregated across the organization - inadvertently creating a deviance culture (e.g., one that encourages stealing, waste, non-compliance). 2.4 Consider how you would react to 360 degree feedback. If you were the one receiving the feedback, whose views would you value most: your manager’s or your peers’? If you were asked to assess a peer, would you want your opinion to affect that peer’s raises or promotions? Answer: Individual answers to this question will vary, but students who are accustomed to receiving traditional performance appraisals may be more likely to value a manager’s assessment over a peer evaluation. If students do not have work experience, ask them if they want their evaluation of a classmate’s performance to affect that classmate’s grade (most do not.) Follow up this question by asking students to think about their own performance in the classroom. Are there times when a classmate’s evaluation will be more accurate than the professor’s? Are there behaviours that are more important to professors than they are to classmates, and vice versa? These questions will help students to understand how different evaluators can “round out” a performance picture. Receiving Feedback: I would value my manager’s views most because they have a comprehensive understanding of my performance, alignment with organizational goals, and potential for growth. Assessing a Peer: I would want my opinion to contribute to their development but not solely determine their raises or promotions. Feedback should be one part of a broader evaluation process to ensure fairness and accuracy. CASE: BEST BUY Questions: 2.1 Consider Best Buy’s Results Only Work Environment. What are its major strengths and weaknesses? Answer: ROWE gives employees flexibility to accomplish non-work related tasks, and this reduces stress and increases employee satisfaction and commitment. The practice is very simple, and it focuses on results that matter most to Best Buy. The weaknesses include lack of performance information for development purposes, potential problems with accomplishing work that comes-up in the course of day-to-day operations, and being available to serve customers and coordinate with co-workers. 2.2 Describe the types of performance that ROWE overlooks. What are the likely consequences of overlooking these aspects of performance in performance evaluations, both to the employee and to the organization? How might these consequences offset some of the strengths of the system? Answer: ROWE focuses on results, so it overlooks the behaviours involved in task performance, citizenship behaviour, and counterproductive behaviour. For the organizations, this may be problematic because it isn’t very helpful in diagnosing and fixing performance related problems. This also is problematic to employees who could use feedback on which specific behaviours need to be improved. 2.3 Describe the types of jobs for which results based performance evaluations would work poorly. What are the features of these jobs that make the results-based system inappropriate? Identify modifications that could be made to a system such as ROWE to make it work better in these contexts. Answer: Customer service jobs in retail stores might not be very conducive to a system like ROWE. These jobs require the employee to be responsive to customer needs. If a department is undermanned and a customer doesn’t get help quickly enough, the customer could shop elsewhere. A system like ROWE might be able to work, but the employees and managers would need to establish procedures and plans to ensure the floor is covered. Such a system could give employees flexibility, but there would most likely need to be advanced planning involved and some set schedules. A less obvious factor is that in this type of context, results can only occur in the store. It is difficult to imagine how the work of a salesperson at Best Buy could be accomplished at home. BONUS CASE: WALKERTON (from 1st ed) The town of Walkerton is located in southwestern Ontario’s rural heartland, not far from the shores of Georgian Bay. In early 2000, who could have imagined that the residents of this quiet little farming town would have experienced the most serious case of water contamination in Canadian history! In total, seven people died and almost half the town’s population became seriously ill after Walkerton’s water supply became contaminated with E. coli from cattle manure that had washed into a town well. If that wasn’t bad enough, many of the people who became ill, particularly children, have had to endure ongoing health issues. “We still have hundreds of people in this community whose health has been permanently impaired,” said Bruce Davidson, vice-chairman of the grassroots lobby group Concerned Walkerton Citizens. “The cost of this is just beyond belief.”1 A study released the following year concluded that the total cost to clean up and fix the Walkerton water problem would be $65 million, but this cost was closer to $155 million when human suffering from the tragedy was considered.2 The question on everyone’s mind was how could this tragedy have happened in the richest province in one of the richest countries in the world? The Walkerton Public Utilities Commission (PUC) was responsible for the operation of the town’s water and electricity resources. At the time of the incident, the PUC supplied water to the vast majority of Walkerton’s residential, commercial, and public buildings. Stan Koebel, 51, was the general manager of the PUC. He worked with his younger brother Frank, who held the position of water foreman. Both had been with the PUC since the early 1970s.3 Together, as licensed operators, Stan and Frank had primary responsibility for all day-to-day operations, including monitoring and testing water quality, and for keeping accurate records.4 Although both brothers held a Level 3 certification, Stan and Frank had no formal training or testing of their skills before being licensed to run Walkerton’s water system; both brothers were grandfathered to the status of licensed operators by virtue of two decades of on-the-job experience, which came with little technical or scientific expertise.5 Dr. Murray McQuigge, the local medical officer of health, stunned the country with his revelation on CBC Radio on May 25, 2000, that the Walkerton PUC knew there was a problem with the water several days before they told the public.6 In the fall of 2000, a public inquiry under Justice Dennis O’Connor began.7 During the inquiry, Frank testified about drinking on the job and routine falsification of safety tests and records.8 Stan Koebel began his testimony at the inquiry by apologizing for his role in the tragedy. He confessed that he didn’t really know what E. coli was or its health effects.9 On March 25, 2003, Stan Koebel and Frank Koebel were charged, under section 180 of the Criminal Code of Canada, with public nuisance, uttering forged documents, and breach of public duty.10 On November 30, 2004, both brothers pleaded guilty to endangering the lives, safety, or health of the public by failing to use a chlorinator; by failing to properly monitor, sample, and test well water supplying the town of Walkerton; and by failing to accurately record the required information in the logs, and more particularly, by inaccurately completing the daily operating sheet, knowing that it would be relied on as if genuine.11 Three weeks later, Stan was sentenced to a year in jail. Frank was sentenced to nine months of house arrest. Ontario Superior Court Justice Bruce Durno took more than two hours to read out and explain his ruling. He stressed that there was never any intent on the part of the Koebels to harm anyone, but found them negligent in performing their duties.12 The Walkerton tragedy is a sober reminder of how important it is to measure and manage job performance. Clearly there was a failure of the “licensed” operators to perform critical technical tasks at minimally acceptable levels. Tasks such as monitoring and testing water quality or adjusting chlorination levels are examples of core technical activities that were either neglected or performed below acceptable standards. In addition, we see evidence of counterproductive behaviour. Drinking alcohol on the job or deliberately falsifying records to hide mistakes are examples of things employees do to put themselves and others at risk, as well as hinder organizational goal accomplishment. Although the judge in the criminal proceedings ruled that the actions of Stan and Frank Koebel were neither malicious nor intentional, the case demonstrates that technical incompetence combined with deviance is a recipe for disaster. Sadly, it is very common to hear managers talk about their ineffective or poorly performing employees. Given the complexity and cost of fixing them, most organizations knowingly choose to ignore dysfunctions within their performance management system. Endnotes 1 Walkerton marks five years since water tragedy. Canadian Press. May 22, 2005. 2 In-depth: Inside Walkerton. Canada’s worst-ever E.coli contamination. CBC News Online/updated Dec 20th 2004. 3 R. v. Koebel and Koebel, Ontario Superior Court of Justice (Central West Region), November 2004. Agreed Statement of Fact 4 Ibid. 5 Ibid. 6 In-depth: Inside Walkerton. Canada’s worst-ever E.coli contamination. CBC News Online/updated Dec 20th 2004. 7 Walkerton chronology. CTV News (www.ctv.ca); December 20, 2004. 8 Ibid. 9 Ibid. 10 R. v. Koebel and Koebel, Ontario Superior Court of Justice (Central West Region), November 2004. Agreed Statement of Fact 11 Ibid. 12 In-depth: Inside Walkerton. Canada’s worst-ever E.coli contamination. CBC News Online/updated Dec 20th 2004 Questions: 2.1 As students, many of you work in small groups to complete your course assignments. Why do you tolerate team members who do not pull their fair share of the load, yet you know will receive the same grade on the assignment as you? Answer: It is common in organizations for managers (and coworkers) to tolerate ineffective or poorly performing employees. Interestingly, these same patterns show up within student project groups. The students will likely come up with a wide range of reasons why this occurs. Why would a coworker or peer tolerate this? Why might a manager or teacher want to tolerate this? The topic of social loafing is explored a bit later in the class (see Chapter 10). Students may comment on issues of equity (Chapter 6), justice and ethics (Chapter 7). The conclusion that students should come to is that measuring and managing performance is complex and that these assessments have an important social and/or interpersonal context. Another conclusion should be that performance problems are more prevalent in situations where individual contributions are hard to assess (i.e., like teamwork) Students might tolerate team members who don't contribute equally due to the desire for harmony, the fear of conflict, or the belief that addressing the issue might be more trouble than it's worth. Additionally, students may hope that their own effort will compensate for others' shortcomings, or they might prioritize completing the assignment over confronting team dynamics. 2.2 Why do you think it took almost 30 years for Stan and Frank Koebel to be exposed? Answer: We know that the Walkerton PUC that was plagued with nepotism, seniority rights, lack of training, and no performance measures – all of which hide rather than expose individual differences in performance. In all likelihood, the work context was a contributing factor. The work was routine and standardized. The operators basically had to monitor an automated water-purification process. The main duties of the operators were to watch, report, and adjust chemicals when instructed by the instruments – requiring a low level of engagement and effort. In fact, these workers probably spent a lot of time alone which is why they were able to cover-up alcohol abuse. However, an unexpected crisis or emergency imposes a demand on the operators for quick and effective action and problem solving. It is during these periods (tests) when incompetence is exposed. Unfortunately, these crisis situations don’t occur very often. Had this crisis not exposed these two, it is possible that Stan and Koebel would still be working at the Walkerton PUC. 2.3 After carefully considering the complexity of the situation, what recommendations would you make regarding the way employees are hired and trained, and the way performance is managed at the Walkerton PUC? Answer: Students will provide a range of answers here. What is needed is an effective human resource management system. A good place to begin would be to define the broader performance domain, as indicated in the chapter. The next step would be to identify what kind of knowledge, skills, abilities and personality characteristics (see Chapter 9) would be necessary to demonstrate competence in these roles. During the hiring process, applicants would be carefully selected if they possessed these critical attributes, and had values that fit the culture (see Chapters 9 and 14). Training content would be linked to technical performance requirements, and delivered to newcomers and incumbents as needed. Regular individual and team performance would be measured, and the results of this process used as a basis for additional training and development. In a non-union environment, individual performance measures could also be used for administrative decisions (e.g., reward allocation; discipline if necessary). If possible, promotions would be merit based (skill and performance). Hiring and Training: Focus on thorough vetting processes and ensure candidates have both technical skills and a strong commitment to ethical standards. Implement comprehensive training programs that emphasize both job competencies and ethical behavior. Performance Management: Establish clear performance metrics and regular evaluations. Create a transparent feedback system where employees receive constructive input and can address issues promptly. Promote a culture of accountability and continuous improvement. EXERCISE: PERFORMANCE OF A SERVER Instructions: Put students in groups and have them sketch out the major job dimensions for a server’s performance, drawing those dimensions on a circle. Also ask them to list two specific behaviours within each of those dimensions. Emphasize that the behaviours should be verbs, not adjectives. In other words, they should be explaining what servers actually do, not what qualities servers should possess. A server is useful as a job analysis example because students are so familiar with server duties (many students have worked as servers and all students have observed servers while dining in a restaurant). This exercise should take around 15 minutes. Sample Job Dimensions and Behaviours: Here’s an example of the kinds of job dimensions and tasks students might come up with for a restaurant server. The job dimensions are numbered with the more specific behaviours bulleted underneath. Taking Meal Orders • Describing the menu • Making recommendations Delivering Food • Remembering who had what • Balancing food on tray Checking on Customers • Keeping water and drinks filled • Asking about dessert of the check Being Friendly to Customers • Smiling • Being conversational Questions: Unless they’ve peeked ahead to subsequent steps, most lists will omit citizenship behaviours like helping, sportsmanship, voice, and boosterism. Most lists will also omit counterproductive behaviours like theft, wasting resources, substance abuse, or incivility. Once you’ve gotten the students to understand this omission, the former servers in the class will be able to attest to the importance of these non-customer-directed behaviours. If the list of behaviours generated by the students were to be supplemented by citizenship and counterproductive behaviours, a performance evaluation form like the one shown in Table 2-2 could be created. This sort of approach could be valuable because it would broaden the way restaurant managers view the performance of servers. After all, it’s not enough to have a server who brings in big tips if that person has a negative effect on the climate and morale of the restaurant. OMITTED TOPICS The field of organizational behaviour is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this chapter, but which the professor might want to include in his or her lecture, is included below. In cases where these topics are covered in other chapters in the book, we note those chapters. In cases where they are omitted entirely, we provide some references for further reading. Diagnosing Performance Problems - Theories that have been used as a basis for diagnosing performance problems (e.g., expectancy theory) are covered in Chapter 6. Withdrawal - Lateness, absenteeism and turnover are sometimes discussed along with job performance. These concepts are covered in Chapter 3. Performance in Teams - A lot of the work that takes place in organizations occurs in teams. Chapter 10 discusses this issue in the context of various types of taskwork and teamwork activities. Application of Job Performance Evaluations - For a more comprehensive treatment of the uses of job performance information see: Murphy, K. R.., & J. N. Cleveland. Understanding Performance Appraisal: Social, Organizational, and Goal-Based Perspectives. Thousand Oaks, CA: Sage, 1995. Smither, J. W. Performance Appraisals: State of the Art in Practice. San Francisco, CA: Jossey-Bass, 1998. Workplace Trends - Technological change, contingent employees, and the need for continuous learning and adaptability are trends that have impacted the nature of employee job performance. For more on these issues see: Ilgen, D. R., & E. D. Pulakos. The Changing Nature of Performance: Implications for Staffing, Motivation, and Development. San Francisco, CA: Jossey-Bass, 1999. Solution Manual for Organizational Behaviour: Improving Performance and Commitment in the Workplace Jason A Colquitt, Michael J. Wesson, Jeffery A LePine, Ian Gellatly 9780071051620, 9781259066566