CH-1-2 What is Organizational Behavior? – Organizational Behavior: Improving Performance and Commitment in the Workplace : Chapter Notes

This Document Contains Chapters 1 to 2 Instructor’s Manual: Ch. 1: What is Organizational Behavior? CHAPTER OVERVIEW Organizational behavior is a field of study devoted to understanding and explaining the attitudes and behaviors of individuals and groups in organizations. The two primary outcomes of organizational behavior 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 behavior policies are linked to employee productivity, firm profitability, and even firm survival. This chapter also shows how we “know what we know” about organizational behavior by describing the scientific research process. LEARNING GOALS After reading this chapter, you should be able to answer the following questions: 1.1 What is the definition of “organizational behavior” (OB)? 1.2 What are the two primary outcomes in studies of organizational behavior? 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 Behavior? 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 Behavior Defined 1. Organizational behavior is a field of study devoted to understanding, explaining, and ultimately improving the attitudes and behaviors of individuals and groups in organizations II. An Integrative Model of Organizational Behavior A. Provides a roadmap for the field of organizational behavior, and shows how different chapters in the text are related B. Individual Outcomes – These are the two primary goals of organizational behavior 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 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 – These affect individual mechanisms 1. Personality and cultural values (Chapter 9) – describe various individual traits and characteristics 2. Ability (Chapter 10) – describes an individual’s cognitive abilities, emotional skills, and physical abilities E. Group Mechanisms – Also affect individual mechanisms, given that most employees do not work alone 1. Team characteristics and diversity (Chapter 11) – the qualities that teams possess, including norms, roles, and the way team members depend on each other 2. Team processes and communication (Chapter 12) – how teams behave with regard to communication, cooperation, and conflict 3. Leader power and negotiation (Chapter 13) – the process by which individuals gain authority over other individuals 4. Leader styles and behaviors (Chapter 14) – describes the specific actions leaders take to influence others at work F. Organizational Mechanisms – Also affect individual mechanisms, because they influence the environment in which work is done 1. Organizational structure (Chapter 15) – shows how various units within an organization communicate 2. Organization culture (Chapter 16) – describes the shared rules, norms, and values that shape behavior for organizational employees 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 the U.S.? 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? Asset Gallery (Reliability & Validity/Mgmt Video DVD): Understanding Toyota’s Success. This CBS video clip provides a good overview of Toyota’s history and its core strengths. The clip highlights a number of concepts in the integrative model of organizational behavior, including job performance, motivation, learning and decision making, and organizational culture. III. Does Organizational Behavior 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, Microsoft recently rolled out retail stores 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 Asset Gallery (Leadership/Destination CEO): Southwest Airlines CEO: Gary Kelly. This BusinessWeek weekend video clip mentions some of the big decisions Southwest has made to keep costs down and stay profitable. The video also hints at how numerous small decisions and socially complex resources may be giving Southwest a more inimitable source of competitive advantage. 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. Companies that made the Fortune Magazine list of “100 Best Companies to Work For” were matched to companies of similar size and industry which did not make the list b. “100 Best” companies were more profitable than other companies that did not make the list Try This! If the students have not yet read the chapter, put Table 1-3 on a slide. Ask students if they can guess how the list of Fortune’s “100 Best” 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 at the Bookstore: The Advantage. Focus the discussion on whether students buy the notion that many CEO’s would view the effective management of people as “beneath them.” What might give rise to this type of attitude among executives? How could that sort of attitude be combatted in an organizational change effort? IV. How Do We “Know” What We Know About Organizational Behavior? 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 behaviors and outcomes related to the hypotheses 4. Verification – use of statistical methods to determine whether or not a hypothesis can be disconfirmed a. One tool in the verification process is the 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 1-4). 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. Meta-analyses can also be a helpful guide for evidence-based management, where management education and practice relies on scientific findings (as in medicine). OB on Screen: Moneyball. The clip referenced in the book begins around the 46:11 mark of the film, continuing until about the 49:45 mark. The scene depicts an argument between Billy Beane, the General Manager of the Oakland A’s, and Grady Fuson, his head scout. Beane has embraced advanced analytics—statistics-based decision making as espoused by Pete Brand. Fuson prefers decision making based on experience and intuition, not science, referring to Brand as “Google Boy.” Ask the students who is right? Beane or Fuson? The reality is that both are a little right and both are a little wrong. The method of science need not come at the expense of experience or intuition—all can be used to complement one another. Although Beane clearly denigrates the need for scouting in the clip, the reality is that most sports teams now have analytics experts and science experts. Beane’s focus on science has stood the test of time, as the A’s have remained successful. Unfortunately for them, other teams copied the use of analytics, given that the practice was not inimitable. Please email me at [email protected] if you have any questions about using OB on Screen in your teaching. Try This! Use the Moneyball clip for a different chapter. The clip provides a good example for discussing the rational decision-making model, types of decisions, and the value of experience and intuition from Chapter 8. Ask the students whose decisions are likely to be more faulty and why: a scout’s or a statistical analyst’s? Why? Bonus OB on Screen (from 3rd ed): Social Network. The clip referenced in the book begins around the 21:32 mark of the film, continuing until about the 24:20 mark. The clip depicts Tyler and Cameron Winklevoss approaching Mark Zuckerberg to work on their site, the Harvard Connection. The scene encapsulates the inimitable advantage that Facebook had in the beginning (and that Harvard Connection would have had): Unlike Myspace or Friendster, you needed a harvard.edu email address to access it. Ask the students to describe why that represented such an inimitable advantage in the beginning. Then guide discussion toward the inimitable advantages that Facebook has garnered since the site was opened up to everyone. Please email Jason Colquitt ([email protected]) if you have any questions about using OB on Screen in your teaching. Bonus OB on Screen (from 1st and 2nd ed): Office Space. The clip begins around the 18:20 mark of the film, continuing until about the 25:44 mark. The clip 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. 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 behavior 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. Please see the Instructor PowerPoints for a Bonus Assessment on Scientific Interests. Please see the Connect assignments for this chapter for an assessment on Methods of Knowing. Please email me at [email protected] if you have any questions about using these assessments in your teaching. DISCUSSION QUESTIONS 1.1 Assuming you possessed the right technical skills, would a job at Patagonia be appealing to you? What would be the most important positives associated with the position, in your view? What would be the most important negatives? Answer: The answers will vary from person to person, but one of the more oft-mentioned positives would be working for a company that stood for something—that had a “social mission.” One negative might be working for a company whose product seems routine and common, as there are a number of apparel companies that the lay consumer might view as substitutable. Assuming you possessed the right technical skills, would a job at Patagonia be appealing to you? Yes, a job at Patagonia would be appealing. Positives: • Commitment to Sustainability: Working for a company dedicated to environmental responsibility and sustainable practices. • Company Culture: A supportive and inclusive work environment that values employee well-being. • Innovation: Opportunities to work on innovative projects and contribute to meaningful environmental initiatives. Negatives: • High Expectations: The potential pressure to meet high standards in sustainability and innovation. • Competitive Environment: Intense competition for positions and career advancement within the company. 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 behavior. What did the boss do well or poorly? What would you have done differently, and which organizational behavior 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. 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? Motivation is the individual mechanism that drives my performance and commitment the most. When I am highly motivated, I am more engaged, productive, and dedicated to my work. Motivation fuels my desire to achieve goals, take on new challenges, and continuously improve my skills. Do you think you’re unique in that regard or do you think most people would answer that way? I don’t think I’m unique in that regard. Many people would likely answer that motivation is a key driver of their performance and commitment. Motivation is a fundamental factor in achieving personal and professional goals, and it often plays a critical role in how individuals approach their work and responsibilities. 1.4 Create a list of the most successful companies that you can think of. What do these companies have that others don’t? Are the things those companies possess rare and inimitable (see Figure 1-2)? What makes those things difficult to copy? Answer: Although Apple is an answer that would flow out of the text, there are a number of good examples. Companies like Google having a market advantage (in internet search at least) that becomes difficult to copy, not to mention technological expertise to help protect that advantage. Other companies, like Toyota, have “bulletproof” reputations that their competitors find tough to match or copy. 1.5 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: One example of something that people “know” to be true is that extraverted leaders are more effective. The true merits of that piece of “knowledge” are described in Chapter 14. More relevant to this discussion, it could be tested by asking leaders to fill out extraversion assessments and asking followers to rate their effectiveness. Alternatively, business and political leaders who are famous for being effective or ineffective could be rated by observers on their extraversion. CASE: PATAGONIA Questions: 1.1 Which checklist ingredients would you value most as an employee? Which would you value least? Do some suggestions seem debatable? Answer: Answers to this question will vary, but most students will appreciate the ingredients about paying at or above-market, along with including employees in bonus and stock option plans. Students may also be drawn to the ingredients describing flexitime and telecommuting opportunities. Which checklist ingredients would you value most as an employee? As an employee at Patagonia, the checklist ingredients I would value most are: 1. Commitment to Sustainability: Patagonia’s dedication to environmental responsibility and sustainable practices aligns with my values and enhances my sense of purpose and pride in my work. 2. Company Culture: A supportive, inclusive, and collaborative work environment that prioritizes employee well-being and work-life balance is crucial for my job satisfaction and overall happiness. 3. Opportunities for Growth and Development: Access to professional development programs, training, and opportunities for career advancement would be important for my long-term career growth and motivation. Which would you value least? The checklist ingredient I would value least is: 1. Office Perks: While perks like a fancy office, free snacks, or recreational activities are nice to have, they are not as essential to my overall job satisfaction and performance as the more substantive elements like sustainability, culture, and growth opportunities. Do some suggestions seem debatable? Yes, some suggestions may seem debatable. For instance: 1. Workplace Flexibility: While some employees highly value remote work or flexible hours, others might prefer the structure and social interaction of a traditional office environment. The importance of flexibility can vary greatly among individuals. 2. Performance-Based Bonuses: Some employees might be highly motivated by financial incentives and bonuses, while others might prefer recognition, career development opportunities, or intrinsic rewards for their contributions. These preferences can vary significantly depending on individual priorities and personal circumstances. 1.2 Which checklist ingredients do you think are most uncommon in organizations? Do those ingredients seem to be promising avenues for creating sustained competitive advantage? Answer: Sharing financial information with all employees may be uncommon, as is adding the reduction of social and environmental harm to a mission statement. Paid sabbatical leave, natural light, and annual job satisfaction surveys are also likely to be outside the norm. To the extent that these ingredients increase the number of applicants per open position, and decrease voluntary turnover, they should provide an avenue for competitive advantage. Which checklist ingredients do you think are most uncommon in organizations? The checklist ingredients that are most uncommon in organizations include: 1. Strong Commitment to Sustainability: While more companies are becoming aware of their environmental impact, few have integrated sustainability into their core business strategy as deeply as Patagonia. 2. Company Culture Focused on Employee Well-Being: Many organizations claim to value their employees, but fewer have a deeply ingrained culture that genuinely prioritizes work-life balance, inclusivity, and overall well-being. 3. Opportunities for Continuous Learning and Development: Although some companies offer professional development programs, it’s less common for organizations to provide extensive, ongoing opportunities for learning and career growth. Do those ingredients seem to be promising avenues for creating sustained competitive advantage? Yes, these ingredients seem to be promising avenues for creating sustained competitive advantage: 1. Commitment to Sustainability: By prioritizing environmental responsibility, a company can differentiate itself, appeal to eco-conscious consumers, and build a loyal customer base. This commitment can also lead to cost savings through more efficient resource use and can protect the company from regulatory changes. 2. Employee-Centric Company Culture: A supportive and inclusive culture can attract top talent, reduce turnover, and increase employee engagement and productivity. When employees feel valued and supported, they are more likely to be committed and contribute to the company’s success. 3. Continuous Learning and Development: Offering extensive learning and development opportunities helps retain top talent and ensures that employees’ skills remain current. This can lead to innovation and improved performance, giving the company a competitive edge in a rapidly changing market. These uncommon yet valuable practices can help create a distinct identity and a loyal workforce, ultimately leading to sustained competitive advantage. 1.3 Chouinard argues that “tedium is easier to take when it has meaning.” Which checklist ingredients seem most promising for creating meaning? Would you add any additional suggestions to increase meaning further? Answer: The ingredient about reducing social and environmental harm could create meaning, as could the ingredient about training. Additional suggestions would probably revolve around the work tasks themselves, but those would be idiosyncratic—varying from organization to organization. Which checklist ingredients seem most promising for creating meaning? 1. Commitment to Sustainability: Working for a company with a strong focus on environmental responsibility can provide a sense of purpose and meaning, as employees feel their work contributes to a larger, impactful cause. 2. Opportunities for Growth and Development: Providing avenues for personal and professional growth can make daily tasks feel more meaningful, as employees see their work contributing to their own development and career progression. Would you add any additional suggestions to increase meaning further? Yes, additional suggestions could include: • Involvement in Decision-Making: Allowing employees to have a voice in decisions that affect their work and the company can increase their sense of ownership and meaning. • Recognition and Impact: Regularly acknowledging employees’ contributions and demonstrating how their work positively impacts the company and its goals can enhance the perceived value and meaning of their efforts. BONUS CASE: APPLE (from 2nd ed) Let’s say you’re in the market for a new laptop. You’ll do some searching online, certainly. But you’ll also want to check out your candidates in the brick-and-mortar world to make sure they’re not too heavy or too flimsy and that their keyboards aren’t too squished together. One of the places you might visit on your journey is the Apple Store. Apple opened the first of its retail stores in McLean, Virginia, in 2001. At the time, Apple’s products sold primarily through retailers such as CompUSA and Sears, right alongside competing products from PC makers. Steve Jobs, Apple’s cofounder and former CEO, reasoned that people would be more likely to buy a Mac if the salesperson showing it to them really loved it (and knew how to use it). How did Apple design and launch its own stores when the company had no retailing experience? By hiring people who did. Jobs added Mickey Drexler, the CEO of The Gap, to its board of directors, then hired Ron Johnson, head of merchandising at Target. As the team designed its stores, it asked an 18-person focus group to describe the best service experience they’d ever had. Sixteen of the 18 responses referred in a hotel. “Well, how do we create a store that has the friendliness of a Four Seasons Hotel?” Johnson asked. His answer “Put a bar in our stores. But instead of dispensing alcohol, we dispense advice.” Thus was born one of the signature elements of the Apple Store, its Genius Bar, where Apple experts dole out tips, field questions, and perform repairs on Macs, iPods, and iPhones. The Apple Store’s emphasis on friendliness extends beyond the Genius Bar however. Apple Store employees are instructed to treat customers like “season ticket holders”—people who will visit again and again, before and after their purchases. Training procedures encourage employees to “be who you are” and answer difficult questions with, “I don’t know, let’s find out.” That relaxed atmosphere, together with the positive buzz generated by Apple’s products, makes the Apple Store a popular place to work. Apple reports that it turns away 90 percent of its applicants. How well is this retail strategy working? Well, at the time that Apple opened its 174th store, with an iconic glass cube entrance on New York City’s Fifth Avenue, Apple Stores were generating $4032 in sales per square foot. Want some perspective on that number? The world-famous jeweler Tiffany & Co. sits half a block away and takes in $2666 per square foot. Apple’s hiring strategy for its retail stores was summarized this way by a journalist who worked part-time at one of the locations: “The company was not looking for great salespeople using sophisticated technology, as one would imagine it easily could; instead it isolates true enthusiasts and true believers in Apple products, of which there are many…. As workers all we had to bring to the table was a passion for Apple products; the company supplied the knowledge we needed to teach, share, and sell to customers.” Other than that singular focus, the hiring procedures at the Apple Store are fairly typical. Applicants apply online by answering a few questions, pasting in their resume, and selecting the jobs and locations in which they’re interested. This process may need to be repeated multiple times before the applicant is contacted by a store. That contact may then lead to one or more face-to-face interviews, perhaps at the store itself or at a local coffee shop. Two recent decisions, however, signal a departure from Apple’s hiring and overall retail philosophies. On the hiring front, Apple recruiters have been spotted handing out black cards to retail employees in other organizations. The front of the card bears the Apple logo and reads, “You’re amazing. We should talk.” The back of the card reads, “Your customer service just now was exceptional. I work for the Apple Store, and you’re exactly the kind of person we’d like to talk to. If you’re happy where you are, I’ll never ask you to leave. But if you’re thinking about a change, give me a call. This could be the start of something great.” The card also includes a URL for more information. With respect to its overall retail philosophy, Apple entered into an agreement with Best Buy to create a “store within a store” at select locations. Although it remains a pilot program, Apple is taking steps to prevent the bad experiences that drove it to launch its own retail stores in the first place. First, Apple is setting up its own space within the Best Buys, mimicking the look and feel of an Apple Store. Second, Apple is sending consultants to the Best Buys to train employees, so that they know almost as much about Macs as they do Hewlett-Packards, Acers, and other PCs." Sources: Edwards, C. “Commentary: Sorry, Steve: Here’s Why Apple Stores Won’t Work.” BusinessWeek, May 21, 2001, http:// www.businessweek.com/magazine/content/01_21/b3733059.htm (April 20, 2009). Useem, J. “Apple: America’s Best Retailer.” Fortune, March 8,2007, http://money.cnn.com/magazines/fortune/fortune_archive/ 2007/03/19/8402321 (April 20, 2009). Frankel, A. Punching In. New York: HarperCollins, 2007. “Apple Recruiters Tempt Exemplary Employees.” Ifo AppleStore, June 5, 2008, http://www.ifoapplestore.com/db/2008/06/05/ apple-recruiters-tempt-exemplary-employees/ (April 20, 2009). Meyer, J. “Best Buy and Apple Together Again.” Apple Matters, June 27, 2006, http://www.applematters.com/article/best-buy-and-apple-together-again (April 20, 2009). Questions: 1.1 Is there something unethical about Apple’s “black card strategy”, or does it merely represent good, hard-nosed business? Answer: Answers to this question will vary. On the one hand, companies routinely poach employees from competitors, even competitors who are much more “direct” than in this example. On the other hand, the retail employees were providing a service to the Apple employees, giving no informed consent to enter into a recruiting experience. Is there something unethical about Apple’s “black card strategy,” or does it merely represent good, hard-nosed business? The “black card strategy” could be seen as controversial but not necessarily unethical. It represents a proactive approach to recruiting talent, targeting high-performing employees from competitors by recognizing and valuing their customer service skills. While it can be considered aggressive and might strain relationships with other companies, it does not involve deceit or coercion. It’s a competitive business practice aimed at acquiring top talent to enhance Apple’s retail operations. 1.2 Should Apple offer different training content for employees recruited through the black card strategy? How might their job satisfaction differ from employees who are recruited in more traditional ways? Answer: Unlike employees recruited through traditional means, the “black card” employees may not have any special knowledge or interest in Apple products. They may also be used to retailing and selling strategies that differ from the ones used at Apple Stores. So those employees will likely need more extensive training in both product knowledge and selling philosophy. As for job satisfaction, because their interests are less wrapped up in Apple products, their job satisfaction may be more dependent on traditional factors (e.g., job tasks, coworkers, supervision, pay). Yes, Apple should consider offering tailored training for employees recruited through the black card strategy. These employees are often experienced in high-quality customer service, so the training should focus on specific Apple products, company culture, and Apple’s unique customer engagement approach. This targeted training would leverage their existing skills while integrating them smoothly into Apple’s environment. How might their job satisfaction differ from employees who are recruited in more traditional ways? Job Satisfaction Differences: 1. Higher Job Satisfaction: • Recognition and Value: Employees recruited with the black card strategy may feel highly valued and appreciated due to the recognition of their exceptional skills, which can enhance their job satisfaction. • Alignment with Skills: Their prior experience in customer service means they might find the job more fulfilling if the role aligns well with their skills and passion. 2. Potential Challenges: • Expectations vs. Reality: These employees might have higher expectations regarding their roles and career progression, which could lead to dissatisfaction if their expectations are not met. • Integration: They might face challenges in adapting to Apple’s specific processes and culture, which could impact their initial job satisfaction. Overall, a well-structured training program and effective integration strategies can help maintain high job satisfaction for these employees, aligning their skills and expectations with Apple’s unique retail environment. 1.3 How does the motivation of a Best Buy employee selling a Mac differ from the motivation of an Apple Store employee selling a Mac? Is there anything Apple can do to address such differences? Answer: Much like the case of the “black card” employee, a Best Buy employee may not have any special interest in, knowledge of, or loyalty to Apple products. Moreover, Best Buy employees have other computer makers’ products that are available--products that may be cheaper in some configurations. Apple may need to find ways to offer some extrinsic incentives to Best Buy employees when they make Apple sales, to compensate for that lack of intrinsic motivation. Motivation Differences: 1. Apple Store Employees: • Intrinsic Motivation: Apple Store employees are often passionate about Apple products and their role, which can drive intrinsic motivation. They are likely motivated by their enthusiasm for the brand and the company’s customer-focused culture. • Alignment with Company Values: Their motivation is also fueled by their alignment with Apple’s values, such as providing exceptional customer service and representing the brand's image. 2. Best Buy Employees: • Extrinsic Motivation: Best Buy employees may be motivated more by external factors such as sales commissions, performance metrics, or bonuses. They may have less intrinsic motivation related to Apple’s brand. • Brand Detachment: Since they sell a range of brands and products, their motivation may be less connected to the specific attributes of Apple products and more focused on meeting general sales targets. Is there anything Apple can do to address such differences? 1. Enhanced Training and Engagement: Apple can offer additional training to Best Buy employees to foster a deeper understanding and appreciation of Apple products. This could help increase their intrinsic motivation and align their sales efforts with Apple’s brand values. 2. Incentives and Recognition: Introducing incentive programs or recognition schemes for Best Buy employees who excel in selling Apple products could improve their motivation. Recognizing their efforts and achievements can align their goals with Apple’s sales objectives. 3. Collaborative Culture: Apple could create opportunities for Best Buy employees to engage more directly with the Apple brand, such as hosting events or providing access to Apple’s product experts. This can help them feel more connected to the brand and enhance their motivation to sell Apple products effectively. Overall, addressing these differences involves bridging the gap between Apple’s brand culture and the motivations of employees working in partner stores. INTERNET CASE: HOW GOOGLE IS USING PEOPLE ANALYTICS TO COMPLETELY REINVENT HR by John Sullivan http://www.tlnt.com/2013/02/26/how-google-is-using-people-analytics-to-completely-reinvent-hr/ Questions: 1.1 How does Google’s approach to people management resemble the approach described in Moneyball? Answer: Like Moneyball, Google emphasizes the collection of data and the reliance on data analysis to inform decisions. That data reliance has long been a staple of decisions in other realms of organizational life, but has been less common in HR. 1.2 Is there anything wrong with boiling people down to numbers? Answer: Students may have different views on this philosophically. The most important thing is to understand that science has limits—that any correlations that inform decisions will be substantially less than perfect. Thus, there will also be a need for human experience and intuition to supplement whatever is suggested by statistics. Boiling people down to numbers can be problematic for several reasons: 1. Reductionism: Numbers can oversimplify complex human attributes and behaviors, reducing individuals to mere data points. This can overlook qualitative factors like creativity, interpersonal skills, and motivation that are harder to quantify but crucial to overall performance and well-being. 2. Dehumanization: Focusing solely on numerical data can lead to a dehumanizing approach where employees are viewed as statistics rather than individuals with unique experiences and needs. This can affect employee morale and engagement. 3. Misinterpretation: Data can be misinterpreted or used incorrectly, leading to misguided decisions. For example, relying heavily on performance metrics without considering context might unfairly penalize employees or ignore important factors influencing their performance. 4. Privacy Concerns: Collecting and analyzing detailed personal data raises privacy issues. Employees might feel uncomfortable or insecure if they believe their personal information is being used to judge or micromanage them. 5. Overemphasis on Metrics: An overemphasis on metrics can lead to a focus on short-term results rather than long-term development and growth. It may encourage employees to game the system to meet metrics rather than genuinely improve performance. Addressing these issues involves balancing data-driven insights with a human-centered approach, ensuring that metrics are used to complement rather than replace personal judgment and qualitative assessments. 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 5-5 on strain, Figure 6-7 on motivation, and Figure 7-8 on trust in supervisor. You’ll 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. OMITTED TOPICS The field of organizational behavior is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this text, 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. • History of OB – Historical movements and landmark studies including Scientific Management, the Human Relations movement, the Hawthorne studies, and Theory X versus Theory Y. For more on this, see: Taylor, F.W. The Principles of Scientific Management. New York: Norton, 1967. Mayo, E. The Human Problems of an Industrial Civilization. London: Macmillan, 1933. Roethlisberger, F.J.; and W. J. Dickson. Management and the Worker. Cambridge, MA: Harvard University Press, 1939. McGregor, D. The Human Side of Enterprise. New York: McGraw-Hill, 1960. • Managerial Functions – Including planning, organizing, leading, and controlling. For more on this, see: Fayol, H. Industrial and General Administration. London: Pittman, 1949. Drucker, P.F. Management Tasks, Responsibilities, Practices. New York: Harper & Row, 1974. • Workforce Trends – Relevant trends include the rise of knowledge work and service work (both covered in Chapter 2). Other relevant trends include increased globalization and increased workforce diversity (both covered in Chapter 3). Instructor’s Manual: Ch. 2: Job Performance CHAPTER OVERVIEW Job performance is the set of employee behaviors that contribute to organizational goal accomplishment. It has three components: 1) task performance, or the transformation of resources into goods and services; 2) citizenship behaviors, or voluntary employee actions that contribute to the organization; and 3) counterproductive behaviors, 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 GOALS After reading this chapter, you should be able to answer the following questions: 2.1 What is the definition of job performance? What are the three dimensions of job performance? 2.2 What is task performance? How do organizations identify the behaviors that underlie task performance? 2.3 What is citizenship behavior, and what are some specific examples of it? 2.4 What is counterproductive behavior, and what are some specific examples of it? 2.5 What workplace trends affect job performance in today’s organizations? 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 behaviors that contribute either positively or negatively to organizational goal accomplishment 1. Behaviors are within the control of employees, but results (performance outcomes) may not be 2. Behaviors must be relevant to job performance " II. What Does It Mean To Be A “Good Performer”? A. Task Performance 1. Task performance involves employee behaviors 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 OB at the Bookstore: The Power of Habit. The author of this book provides a very interesting discussion of the nature of habits and their effects on our behavior and performance. The author also discusses how it’s possible to break bad habits, and in doing so, enhance the likelihood of achieving important goals. In a sense, therefore, this book can be cast as one that deals with the important issue of how to enhance our effectiveness by improving our adaptive task performance. One topic of discussion can center on the advantages and disadvantages of habits. Students should come to realize that while habits can enhance our efficiency and reliability (we don’t have to think about things we do out of habit) habits can also be problematic when they result in inappropriate behavior. You can ask students about their own habits and consider situations where the habits are good or bad. The discussion can then turn to the steps the author recommends to break out of bad habits. Ask students if the steps could be used to manage their own habits. You could also ask them which steps are most difficult to put into practice. Most will say the easiest is identifying the bad habit. Their friends and co-workers let them know. You can point out that sometimes this isn’t the case—friends and coworkers might not want to create bad feeling or stir conflict. Most will say the difficulty is actually changing bad habits— they find themselves falling into the same pattern of behavior without even realizing it. Note that the authors of the book believe that changing habits requires a great deal of work. We not only need self-awareness (understanding why we behave the way we do) but also a strategy to change— rewarding ourselves when we engage in behaviors that are not part of our routines or habits. Asset Gallery (Creativity/Mgmt Video DVD): Changing Time at Dyson? This CBS video clip shows how James Dyson got the idea for his revolutionary take on the vacuum cleaner. The clip describes the triggers for creative insight, and also reviews some of the social forces that impact entry into creative fields. 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. O*NET (the Occupational Information Network) is an online database that provides job descriptions for most jobs i. Information from O*NET needs to be supplemented to capture organizational values and strategies Try This! Figure 2.1 illustrates the O*NET results for a flight attendant job, and points out that the information should be supplemented with behaviors that support the values and strategy of the organization. To reinforce this point 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 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 behaviors are not simply “performed” or “not performed” – the best employees exceed performance expectations by going the extra mile on the job B. Citizenship Behavior 1. Citizenship behavior 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 behavior involves assisting and supporting coworkers in a way that goes beyond normal job expectations. Helping, courtesy, and sportsmanship are all interpersonal citizenship behaviors OB Assessments: Helping. This survey helps students to assess how helpful they are under normal circumstances. Since helping behaviors 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 behaviors 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? Please see the Instructor PowerPoints for Bonus Assessments on Sportsmanship and Political Deviance. Please see the Connect assignments for this chapter for assessment on Boosterism and Trait Creativity. Please email me at [email protected] if you have any questions about using these assessments in your teaching. b. Organizational citizenship behavior 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 behaviors 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 behaviors are relevant for all jobs, and provide clear benefits to the effectiveness of work groups and organizations d. Citizenship behaviors become more vital during organizational crises OB Internationally. A good question to ask students in class is whether they think that citizenship behaviors 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 behavior may be universal, and this may surprise some students. The discussion can focus on why the value of these behaviors may be similar across cultures that may seem to be quite differ from one another. C. Counterproductive Behavior 1. Counterproductive behaviors intentionally hinder organizational goal accomplishments a. Property deviance harms an organizations assets and possessions and can include sabotage and theft Asset Gallery (Performance Appraisal Training,Recruiting, & Interviewing/Hr Video DVD): Raiding the Closet: Is it OK? This Today Show video clip provides a good discussion of theft of office supplies. The clip includes a debate about whether managers should discipline employees for relatively minor instances of theft. b. Production deviance reduces the efficiency of work output, and includes wasting resources and substance abuse c. Political deviance refers to behaviors 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: Flight. The clip referenced in the book begins around the 1:33:20 mark of the film, continuing until about the 1:36:20 mark. The clip depicts a meeting where South Jet Air attorney Hugh Lang tells pilot Whip Whitaker that, although there are a few loose ends to take care of, he won’t be held responsible for the crash of an airliner despite being very intoxicated at the time. Hugh suggests that empty bottles of alcohol found on the plane (the alcohol was consumed by Whip during the flight) should be blamed on a flight attendant with whom Whip had a relationship. Whip is upset with the idea, and responds sarcastically. Hugh responds by saying that although he thinks Whip is a “drunk arrogant skumbag” he’s also in awe of what he did as a pilot. The scene provides an excellent example of the independence of various job performance activities. On the one hand, Whip engages in behavior at work that’s clearly counterproductive. On the other hand, Whip engages in behavior that reflects excellent task performance— he adapts to an equipment malfunction, flies the airplane inverted, and ultimately saves the lives of most of the passengers. One topic for class discussion is whether Whip is an effective performer. Students will likely disagree, with some focusing on flying the plan and others focusing on substance abuse and putting passengers and the crew at risk. You can keep track of what they say and help them realize that they are providing examples of task performance and counterproductive behavior. You can stay focused on the broader dimensions of task performance and counterproductive behavior or the narrower examples (adaptive task performance and production deviance). Some students may suggest that Whip’s counterproductive behavior isn’t important because it’s his task performance that saves the lives of his passengers. This may be a valid point in the context of this particular movie. In reality, however, being drunk while flying an airplane could result in a mistake that kills everyone on board. To convey this point, you can ask students if they would board a plane if they know the pilot was high on cocaine and had a blood alcohol content of .24 (three times the level that most states use to classify someone as driving while drunk). You can also discuss why counterproductive behavior like this could go on for an extended period. You can suggest that co-workers might have had clues that Whip had problems with substance abuse, but they looked the other way because he’s such a great pilot. You can ask students to provide other examples of this type of situation. Typically, a student will volunteer an example of someone who is great at task performance but horrible at citizenship behavior or counterproductive behavior. Students will often say they were disappointed and shocked at the contradiction after it was discovered. You can ask them how these types of situations should be managed. This should lead to the conclusion that it’s best to pay attention to the different aspects of performance and provide feedback—highlighting both the positives and the negatives. Bonus OB on Screen (from 3rd ed): Despicable Me. The clip referenced in the book begins around the 43:37 mark of the film, continuing until about the 52:50 mark. The clip depicts the behavior of a criminal mastermind named Gru, and in particular, his interactions with three orphan girls he adopted as part of his plot to steal a shrink-ray gun (that he plans to use to steal the moon). The scene provides an excellent example of the independence of behaviors that are related to job performance. On the one hand, Gru is a criminal, so he obviously engages in behavior that’s deviant. On the other hand, Gru engages in behavior that’s much more positive. One topic for class discussion is how Gru stacks up in terms of his performance. The students should be able to quickly identify examples of task performance, citizenship and counterproductive behavior. Emphasize that the main point of the clip is to illustrate that it’s problematic to assume where someone might stand on one performance dimension using knowledge about where the person stands in terms of another performance dimension. In real world contexts where the intent to is to gather valid information about specific aspects of performance, jumping to these types of conclusions can be problematic. You can ask students to provide examples of where this has happened. Typically, a student will volunteer an example of someone who is a great at task performance but horrible at citizenship behavior or counterproductive behavior. Please email Jason Colquitt ([email protected]) if you have any questions about using OB on Screen in your teaching. Bonus OB on Screen (from 2nd ed): Hancock. The clip begins around the 27:35 mark of the film, continuing until about the 29:15 mark. The clip 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 behavior 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 stacksup in terms of his performance. The students should quickly come to the conclusion about task performance and counterproductive behavior. Some students may suggest that Hancock is low in citizenship behavior because he doesn’t appear to be particularly courteous or a good sport. Other students may suggest that Hancock is high in citizenship behavior because his behaviors are voluntary and his behavior 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 behavior 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. Bonus OB on Screen (from 1st ed): Monsters, Inc. The clip begins around the 9:11 mark of the film, continuing until about the 17:24 mark. The clip depicts 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 behaviors. 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 behavior on the morale of the employees. Some students will make comments that reflect an assumption that other types of citizenship and counterproductive behaviors are present even though the behavior 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 behaviors. The most obvious differences in the behavior of Sulley and Randall are in the sportsmanship aspect of citizenship behavior and the personal aggression aspect of counterproductive behavior. D. Summary: What Does it Mean to be a Good Performer? III. Workplace Trends that Affect Job Performance A. Knowledge Work 1. Jobs that involve cognitive activity are becoming more prevalent than jobs that involve physical activity 2. As a result, employees are being asked to work more quickly, learn continuously, and apply more theoretical and analytical knowledge on the job B. Service Work 1. Service workers have direct verbal or physical interaction with customers, and provide a service rather than a good or a product 2. Service work is one of the fastest growing sectors of the economy, with 20 percent of new jobs created between now and 2012 likely to be service jobs 3. The costs of bad performance are more immediate and obvious in service work, and service work contexts place a greater premium on high levels of citizenship behavior and low levels of counterproductive behavior Try This! Ask students to share the details of their worst customer service experience ever, whether in a retail store, a restaurant, a customer service call, or some other context. Discuss the impact of that event on the students’ future relationship with that organization. Then ask students who have served in customer service roles to detail their own experiences, and to describe the factors that trigger negative customer experiences. IV. 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. Behaviorally Anchored Rating Scales (BARS) 1. BARS look at job behaviors directly a. Critical incidents are used to develop evaluation tool that contains behavioral 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 nonbinding 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 O*NET’s database. Does the profile of the job fit your expectations? Are any task behaviors missing from O*NET’s profile? Answer: The tasks for a retail sales manager on O*NET include: • Provide customer service by greeting and assisting customers, and responding to customer inquiries and complaints • Monitor sales activities to ensure that customers receive satisfactory service and quality goods • Assign employees to specific duties • Direct and supervise employees engaged in sales, inventory-taking, reconciling cash receipts, or in performing services for customers • Inventory stock and reorder when inventory drops to a specified level • Keep records of purchases, sales, and requisitions. • Enforce safety, health, and security rules • Examine products purchased for resale or received for storage to assess the condition of each product or item • Hire, train, and evaluate personnel in sales or marketing establishments, promoting or firing workers when appropriate • Perform work activities of subordinates, such as cleaning and organizing shelves and displays and selling merchandise While most retail managers will perform most of these tasks, some stores may require managers to do other things, such as stocking merchandise, planning promotions, etc. This discussion question gives a good opportunity to reinforce the point made in the text about how a company’s culture and values can change the tasks of their employees. 2.2 Describe a job in which citizenship behaviors would be especially critical to an organization’s functioning and one in which citizenship behaviors would be less critical. What is it about a job that makes citizenship more important? Answer: Almost any sales position requires citizenship behaviors 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 behaviors, 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 behaviors will help the group come together and function effectively as a team. 2.3 Figure 2-3 classifies productive deviance and political deviance as more minor in nature than property deviance and personal aggression. When might those types of counterproductive behavior prove especially costly? Answer: Production deviance and property deviance can be especially costly in jobs that place a high premium on safety. For example, a marketing manager who comes to work drunk may not hurt anyone, but a bus driver who comes to work drunk could kill an entire busload of schoolchildren. 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 behaviors 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 360-Degree Feedback: • Valued Views: I would value my manager’s views the most because they typically have a comprehensive understanding of my performance, goals, and overall contribution to the team. However, peer feedback is also important as it provides insight into how I am perceived by colleagues who work closely with me. • Assessing a Peer: I would prefer my opinion to be considered as one part of a broader evaluation rather than having a direct impact on raises or promotions. This approach ensures a balanced assessment while minimizing potential biases or conflicts. CASE: GENERAL MOTORS Questions: 2.1 Which dimensions of job performance do you think General Motors emphasized prior to their revitalization effort? What are the advantages and disadvantages of this emphasis? How did this emphasis likely contribute to the company’s problems? Answer: General motors likely emphasized routine task performance. In a large bureaucratic company like GM, routines are used to promote efficiency and reliability in the production of vehicles. This same emphasis tends to be used in other functional areas as well (vehicle development, marketing, etc.). Unfortunately, however, this approach led to stagnation in the company’s product lines. It also made it difficult for GM to respond quickly to nimble competitors that offer new and innovative vehicles on a regular basis. 2.2 Which dimensions of job performance do you think General Motors is emphasizing now? How might the change in emphasis improve the likelihood that General Motors can compete effectively? Answer: From the case it appears that GM is emphasizing a broader array of task performance activities, many of which do not directly involve manufacturing and marketing of vehicles (e.g., safety, customer satisfaction, social responsibility). GM is also emphasizing adaptive and creative task performance. These are aspects of performance that are needed to enhance innovativeness. The company needs innovativeness to compete on a global basis. 2.3 Describe the potential advantages and disadvantages associated with rotating engineers through the racing teams. Explain how the experience on the racing teams could be used to develop GM employees who have other types of jobs? Answer: The racing teams give engineers experience working in a context where they can learn to make decisions much more quickly. Because the feedback from decisions made in a racing context occur more quickly than in other contexts (e.g., it may take a year or two to get consumer feedback about a design or product feature) learning can occur more quickly. GM can also leverage the existing racing teams. They do not have to create or outsource for new training. Of course, it’s unknown whether the lessons learned in the racing context can be applied to other contexts. Although decisions need to be made quickly based on gut instinct in racing, the same might not be true when considering a major capital purchase, for example. BONUS CASE: FRITO-LAY (from 3rd ed) “What happens when 48,000 people focus on a single vision?” This question appears on the company vision page of the corporate website of Frito-Lay, the Plano Texas based subsidiary of PepsiCo Inc., and market leader in the salty snack food industry. But what exactly is this vision, and what does it have to do with selling $13 billion worth of Fritos, Ruffles, Lays, Doritos, Cheetos, and Tostitos (as well as 28 other well-known brands of snack food) each year? Well, according to the Frito-Lay website, the company’s vision is to provide to consumers the best snacks on earth. They begin with simple all natural ingredients—corn, potatoes, and oil— and incorporate innovations to make and sell snacks that are more tasty and fun than what competitors can offer. Frito-Lay recognizes that the job performance of its employees is a key driver of the company’s success. How so? The company believes it can be successful only if each of its 48,000 employees understands the company’s vision and performs in a way that helps to achieve it. So how does Frito-Lay foster alignment of its employees’ performance with the company’s vision? As in most organizations, the task of managing employee performance is a fairly involved process that requires careful research and analysis. It begins with an understanding of the activities involved in each job, and how effective and ineffective performance of these various activities contributes to the company’s effectiveness. This understanding, in turn, provides the basis for developing and implementing management practices that reinforce these important performance related activities and behaviors. As an example, consider the Frito-Lay job that’s likely to be most familiar to you, the route sales representative. You’ve seen the folks who perform this job in the aisles of grocery, drug, and convenience stores placing the product on the shelves and displays. Although you might believe that the job is important only because it determines whether your favorite snack is in stock, fresh, and not crushed, it might surprise you to learn just how crucial the job is to Frito-Lay. In fact, the success of a company in the snack food industry depends on having fresh products available that are pleasingly displayed in store locations that attract the attention of consumers. There are 17,000 route sales representatives at Frito-Lay and these individuals provide services to 20,000 outlets each day. They not only load shelves and displays with the various products, but they also drive the products from warehouses to the stores, take orders for additional products, and negotiate with managers for additional display space. So what happens when achieving corporate sales and profitability goals becomes difficult and the problem is traced to poor job performance of the route sales representatives? Frito-Lay recently faced this very issue. Route sales representatives at Frito-Lay are paid based on commission. That is, their pay checks are based on the sales of the products they provide to the stores they service on their routes. The assumption with compensation systems where pay is directly tied to job performance outcomes is that employees will be highly motivated to find ways to maximize the performance outcomes, because when they do, they earn more. In the past at Frito-Lay, when sales numbers appeared to be falling short, managers relied upon “cheerleading”—pep talks and reminders that the more they sell, the more they make. For commission-based jobs, this approach to managing performance seems to make a lot of sense. After all, who doesn’t want to make more money? Of course, the mere possibility of making more money isn’t always enough to spark higher performance. Unfortunately, this was the situation at Frito-Lay. The company was missing sales goals more often despite the cheerleading, and so managers and executives decided it was time for a new approach. Frito-Lay brought in a team of researchers to help assess the situation and provide solutions. The team suggested a shift from the focus on the performance outcome—sales dollars—to the specific performance behaviors that were believed to be responsible for generating the sales dollars. The team found that the importance of the various performance behaviors varied a great deal depending on the type of stores that were being serviced on an employee’s route. The performance of routes sales representatives that serviced high-volume stores—Wal Mart, for example —depended on the effectiveness of driving the truck and delivering the product on time. The performance of route sales representatives that serviced low-volume stores—gas stations and convenience stores— depended more on effectiveness of negotiating with the store manager for prime shelf space. Although these findings seem straightforward, they have important implications to the way the job of route sales representative should be managed. For example, to improve the performance of those who service low volume stores, training began to emphasize sales and negotiating skills. Previously, training had not been focused on these aspects of performance because route service representatives spend only a small percentage of their time doing it. As another example, because of the importance of driving and delivery to the performance of route service representatives who service high volume stores, helpers were hired to perform the time consuming task of stocking the shelves and displays. Because route sales representatives are so central to Frito-Lay’s mission of providing tasty snacks to consumers, and because they constitute such a large portion of the company’s workforce (35 percent), Frito-Lay is counting on a high return on investment from these changes to their approach to managing the job performance of these employees. Sources: Frito-Lay, Corporate Web Site, http://www.fritolay.com/about-us/ our-company vision.html (April 9, 2011). Pepsico, Careers Web Site, http:// careers.pepsico.com/job/2011-Intern-Recruiting-Human-Resources-Univ_of-Illinois-Job/1181046/? utm_source=J2WRSS&utm_medium=rss&utm_campaign=J2W%5FRSS (April 10, 2011). Lagace. M. “Pay-for-Performance Doesn’t Always Pay Off.” Harvard Business School: Working Knowledge, April 14, 2003. http:// hbswk.hbs.edu/item/3424.html (April 11, 2011). Levinson, A., and T. Faber. Count on Productivity Gains. " HR Magazine, June 2009, pp. 69-74. Questions: 2.1 Why do you think Frito-Lay initially focused so much on sales results as the key indicator of job performance for route sales representatives? What are the features of this job that seem to make it appropriate for a results-based approach to job performance? Answer: Sales results seem like a natural metric for the performance of route sales representatives. Sales revenue data are readily available, and it appears that it’s a very direct indicator of what the route sales representative does. On the one hand, if product is not placed on shelves in a timely manner, or in a way that attracts customers, sales will go down. On the other hand, if sufficient product is placed on the selves and is attractively displayed, sales go up. Results based approaches can work where data is readily available, where results are a reflection of the primary way that employees contribute to the organization, and where the results are under the control of the employees. 2.2 Describe the advantages and disadvantages to Frito-Lay in defining performance of its route sales representatives in terms of behavior. In what ways does commission-based pay seem incompatible with the behavior approach to job performance? How can a commission pay system be modified to address these issues? Answer: The advantages to defining performance of route sales representatives in terms of behavior are that practices can be targeted at behaviors that are known to lead to effectiveness, and behaviors that might be important to specific situations can be trained. One disadvantage is that results are what ultimately matter, and by focusing on behavior, employees may get a false sense that results aren’t that important. Another disadvantage is that there is strong motivational power in having a tight relationship between results and pay. In terms of modifications, there could be commission-based and behavior-based elements to total compensation. There could also be commissions for the most important behaviors. 2.3 Which dimension of job performance did Frito-Lay emphasize in its research? Are there other dimensions of job performance that are likely to be important in the job of route sales representative? What are the likely consequences of overlooking these aspects of performance, both to the employee and to the organization? Answer: Frito-Lay emphasized task performance in their research. However, citizenship and counterproductive behavior also seem very important. As examples, helping other route sales representative who are overloaded or making suggestions that improve the organization’s processes constitute positive contributions to the organization, and therefore, these behaviors should be counted as performance. Similarly, stealing from the company or harassing store employees or the customers would contribute to Frito-Lay negatively. The lack of emphasis on these alternative forms of performance could lead to some obvious problems for the company, such as work not getting done, having inefficient processes, high levels of shrinkage, and lawsuits. INTERNET CASE: TAMING THE WORKPLACE BULLY By Adam Piore http://www.businessweek.com/articles/2012-11-21/taming-the-workplace-bully Questions: 2.1 On which specific dimension of job performance is this article focused? In what ways does this aspect of job performance influence the job performance of other employees such as Elizabeth Santeramo? Answer: The article focused on bullying, a type of harassment, which is a serious form of counterproductive behavior. The bullying likely upset and stressed Elizabeth, which could have hindered her performance. It may be difficult to be empathetic to patients when someone is going through something like this. The article "Taming the Workplace Bully" focuses on the dimension of interpersonal behavior, particularly how workplace bullying affects job performance. Influence on Job Performance of Others: • Morale and Engagement: Bullying can significantly lower employee morale and engagement, leading to decreased motivation and productivity. For employees like Elizabeth Santeramo, witnessing or experiencing bullying can result in feelings of fear, stress, and insecurity, which negatively impacts their performance. • Team Dynamics: Bullying disrupts team cohesion and collaboration. Employees may become less willing to share ideas or work together effectively, reducing overall team performance and efficiency. • Turnover and Absenteeism: The stress from a bullying environment can lead to higher turnover and absenteeism, affecting the stability and continuity of the team and increasing the workload on remaining employees. Addressing workplace bullying is crucial for maintaining a positive and productive work environment, which in turn supports better performance across the organization. 2.2 How could companies, such as the one Elizabeth Santeramo works for, manage bullying through performance feedback? Answer: Counterproductive behaviors such as bullying could be included in the company’s performance management system. Although supervisors might not be in a good position to notice the behavior if it is occurring among subordinates, peer ratings obtained in a 360degree feedback system could be useful. Supervisors’ performance evaluations could also include metrics of bullying that occur in their departments. Supervisor bullying of subordinates may be more difficult to address because subordinates may be reticent to complain for fear of retribution or being fired. 1. Implement Clear Anti-Bullying Policies: Establish and communicate clear policies against workplace bullying. Ensure that employees understand what constitutes bullying and the consequences of such behavior. 2. Incorporate Behavioral Metrics: Include specific metrics related to interpersonal behavior and teamwork in performance evaluations. This could involve assessing how employees interact with colleagues and handle conflicts. 3. Provide Training: Offer training for both employees and managers on how to give and receive feedback constructively. Training should also focus on recognizing and addressing bullying behavior. 4. Regular Feedback and Monitoring: Conduct regular performance reviews that assess not only job-specific tasks but also how employees contribute to a positive work environment. Encourage open feedback channels where employees can report concerns without fear of retaliation. 5. Address Issues Promptly: Act on feedback regarding bullying swiftly and fairly. Investigate reported incidents and take appropriate actions to resolve issues and prevent recurrence. 6. Support and Resources: Provide support resources such as counseling or mediation services for employees affected by bullying. Ensure that there are mechanisms in place to help victims and perpetrators understand and rectify their behavior. By integrating these strategies into performance management, companies can help create a safer and more respectful work environment, reducing the incidence of bullying and improving overall job performance. EXERCISE: SERVER PERFORMANCE 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 behaviors within each of those dimensions. Emphasize that the behaviors 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 Behaviors: 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 behaviors 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 behaviors like helping, sportsmanship, voice, and boosterism. Most lists will also omit counterproductive behaviors 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 behaviors. If the list of behaviors generated by the students were to be supplemented by citizenship and counterproductive behaviors, 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 behavior 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 hve 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 12 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. Instructor Manual for Organizational Behavior: Improving Performance and Commitment in the Workplace Jason Colquitt, Jeffery LePine, Michael Wesson 9780077862565, 9781260261554