CHAPTER1 What Is Organizational Behavior? Questions for Review What is the importance of interpersonal skills in the workplace? Answer: Understanding human behavior is critical for managerial effectiveness today. To attract and retain high-performing employees, managers must possess interpersonal skills in order to relate to employees and create a positive and supportive work environment where people want to work. People skills, in addition to technical skills, are imperative for managers to succeed in the modern demanding workplace. What is the definition of organizational behavior (OB)? Answer: Organizational behavior (OB) is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations for the purpose of applying such knowledge toward improving an organization’s effectiveness. As managers accomplish their work through others, OB provides the tools for guiding the productivity of others, predicting human behavior at work, and the perspectives needed to manage individuals from diverse backgrounds. How does systematic study contribute to our understanding of OB? Answer: Behavior according to systematic study is not random. There are fundamental consistencies underlying the behavior of all individuals that can be identified as well as individual differences. The consistencies allow predictability and reasonably accurate predictions regarding behavior and relationships. Systematic study basing conclusions on scientific evidence is complemented by the evidence-based management (EBM) approach that involves basing managerial decisions on the best available scientific evidence. Intuition, in contrast, is based on one’s “gut feeling.” Although unscientific and unsystematic, it is not necessarily incorrect. The use of all three often results in better decisions, but according to Jack Welch, “the trick is to know when to go with your gut.” What are the major behavioral science disciplines that contribute to OB? Answer: OB is a field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations. Both psychology and sociology are concerned with behavior. Psychology is the science of behavior that studies individual behavior, whereas sociology studies people in relation to their fellow human beings. Psychological study in the field of OB has contributed knowledge on a number of topics including learning, perception, personality, emotions, training, leadership, motivation, job satisfaction, decision making, etc. Social psychology blends concepts from both psychology and sociology and focuses on people’s influence on one another. Sociological study has contributed knowledge on topics such as group dynamics, teams, organizational culture, organizational theory and structure, communications, and power and conflict. Anthropology is the study of societies in order to learn about human beings and their activities within different cultures and environments. Why are there so few absolutes in OB? Answer: Human beings are complex and there are few universal principles that explain organizational behavior. There are many theories about how people behave in organizations but most are not pure cause and effect relationships. People are not all alike and therefore it is difficult to make many generalizations. Variables such as people’s want, needs, values, and goals can differ tremendously. What are the challenges and opportunities for managers in using OB concepts? Answer: This field of study offers managers specific insights and opportunities to improve managerial and people skills. Recognizing the value of and embracing diversity in a global marketplace can improve productivity. Learning to empower your people, designing and implementing change programs, focusing on customer service, supporting employees’ work-life balance, etc., can all lead to improved productivity, quality, and profitability. Challenges can also be found in critical labor shortages, the fast pace of change in a world of temporariness, and the need for continuous innovation. Finally, providing a positive workplace with an ethical compass can create a healthy work climate. What are the three levels of analysis in our OB model? Answer: The three levels of analysis are: individual, group, and organization. The three basic levels are analogous to building blocks—each level is constructed upon the previous level. Group concepts grow out of the foundation laid in the individual section; we overlay structural constraints on the individual and group in order to arrive at organizational behavior. Experiential Exercise Managing the OB Way Divide the class into groups of approximately four members each. Each group should consider the following scenario: You will assume the role of a special committee of district managers at a large pharmaceutical company. Your committee will be meeting to discuss some problems. The process set up by the committee is as follows: Each committee member should first review the problem privately and formulate independent ideas for what might be done. At the start of the meeting, each member should spend one minute addressing the group. During the meeting, the committee must reach a consensus on both the best solution and supporting rationale to each problem. How this is done is entirely up to the committee members, but you must come up with a consensus decision and not a majority opinion achieved by voting. Here is the problem for your committee to consider: The company has no specific policy regarding facial hair. Tom, a pharmaceutical sales rep with a little more than a year’s experience and an average (but declining) sales record, has grown a very long and ragged beard that detracts significantly from his appearance. His hobby is playing bass in an amateur bluegrass band, and he feels that a ragged beard is an important part of the act. Tom says his beard is a personal fashion statement that has to do with his individual freedom. There have been numerous complaints about Tom’s appearance from both doctors and pharmacists. The manager has talked to him on many occasions about the impact his appearance could have on his sales. Nevertheless, Tom still has the beard. The manager is concerned about Tom’s decreasing sales as well as the professional image of the sales force in the medical community. Tom says his sales decrease has nothing to do with his beard. However, sales in the other territories in the district are significantly better than they were last year. When the groups have reached their consensus decisions, the following questions will serve for class discussion: 1-8. What do you think are the concerns for the company regarding Tom’s facial hair? Should they care about his appearance? Answer: The concerns for the company regarding Tom's facial hair revolve around several key factors: 1. Professionalism and Image: Tom's unkempt and ragged beard may detract from the professional image that the company aims to maintain. In the pharmaceutical industry, where credibility and trust are paramount, appearance plays a significant role in establishing rapport with healthcare professionals. A disheveled appearance could potentially undermine the company's reputation and credibility within the medical community. 2. Customer Perception: Tom's appearance could impact how doctors and pharmacists perceive him during sales visits. If his beard is seen as unprofessional or distracting, it may hinder effective communication and relationship-building, ultimately affecting sales outcomes. Customers may question his attention to detail or commitment to his role as a sales representative, potentially eroding their trust in the company and its products. 3. Consistency in Standards: Without a clear policy on facial hair, the company risks inconsistency in its standards of appearance across its sales force. While individual expression is important, it must be balanced against the company's need for a cohesive and professional image. Establishing guidelines for grooming and appearance helps ensure consistency and alignment with the company's values and objectives. 4. Performance and Accountability: Tom's declining sales record raises concerns about his performance and accountability. While he may attribute his sales decrease to factors unrelated to his appearance, it's essential for the company to address any potential barriers to his effectiveness as a sales representative. If Tom's beard is negatively impacting his performance or professional image, it becomes a legitimate concern for the company to intervene and provide guidance or support. Considering these concerns, the company should indeed care about Tom's appearance to the extent that it affects his ability to represent the company professionally and achieve sales targets. While individual freedom and expression are important, they must be balanced against the company's objectives and the expectations of its stakeholders. Therefore, it may be necessary for the company to engage in constructive dialogue with Tom, offering support and guidance to ensure that his appearance aligns with the company's professional standards and values. 1-9. What was your group’s consensus decision regarding the issue with Tom’s facial hair? Answer: Our group reached a consensus decision regarding the issue with Tom's facial hair after considering the concerns for the company and the impact of Tom's appearance on his professional image and performance. We agreed that while individual expression is important, it must be balanced against the company's objectives and the expectations of its stakeholders, particularly in the pharmaceutical industry where professionalism and credibility are crucial. Therefore, our consensus decision was that the company should address Tom's facial hair through open and constructive dialogue. We recommended that the manager engage in a private conversation with Tom to express concerns about his appearance and its potential impact on his effectiveness as a sales representative. During this discussion, the manager should emphasize the importance of maintaining a professional image and building trust with healthcare professionals. We also suggested that the company establish clearer guidelines or expectations regarding grooming and appearance to ensure consistency across the sales force. This could involve implementing a policy on facial hair that aligns with the company's values and professional standards. Overall, our consensus decision emphasized the importance of addressing the issue proactively while respecting Tom's individuality and providing support to help him align his appearance with the company's expectations. 1-10. Let’s say Tom told you he thinks the beard is part of his personal religion that he is forming. Do you think that announcement would change how you talk to Tom about the issue? Answer: If Tom were to claim that his beard is part of a personal religious practice, it would indeed change how we approach the issue and how we talk to him about it. Religious accommodation is an important consideration in any workplace, including discussions about grooming and appearance policies. In this scenario, we would need to approach the conversation with sensitivity and respect for Tom's religious beliefs. We would need to inquire further about his religious practices and the significance of the beard within his faith. Understanding the depth of his conviction and sincerity in this regard would be essential in determining the appropriate course of action. Additionally, we would need to consider legal obligations regarding religious accommodation in the workplace. If Tom's claim is genuine and his beard is indeed a manifestation of his religious beliefs, the company would be required to make reasonable accommodations unless doing so would pose an undue hardship. Therefore, the conversation with Tom would likely involve a discussion about balancing his religious freedom with the company's legitimate interests in maintaining a professional image and fulfilling its business objectives. We would explore potential compromises or accommodations that respect both Tom's religious beliefs and the company's needs. Ultimately, the announcement of Tom's beard being part of a personal religion would prompt a more nuanced and careful approach to the conversation, focusing on understanding, accommodation, and finding a mutually acceptable solution. Teaching Notes With these types of exercises, students will press for the “right answer.” Emphasize that how they reached their decisions and awareness of other’s perspectives is key here, much more so than the final decision. Depending on how students approach the issue, there could be many “correct” answers. Instead of simply looking for a clear winner, students should consider the potential success of each approach. This exercise is applicable to face-to-face classes or synchronous online classes such as Black Board 9.1, WIMBA, and Second Life Virtual Classrooms. See http://www.baclass.panam.edu/imob/SecondLife for more information. Ethical Dilemma There’s a Drone in Your Soup It is the year 2020, and drones are everywhere. Alibaba quadcopters have been delivering special ginger tea to customers in Beijing, Shanghai, and Guangzhou for years; Amazon’s octocopters finally deliver packages in most major cities within 30 minutes without knocking down pedestrians; and college students everywhere welcome late-night nachos from Taco Bell Taco copters. Indoor drones are still in the pioneering phase – backyard enthusiasts are building tiny versions, but no large-scale commercial efforts have been put toward indoor utility drones. That’s all about to change. You work for a multinational technology corporation on a sprawling, 25-acre headquarters campus, with offices in 2 million sqaure feet of interior space in one large building and four additional smaller (but still large) buildings. The official Head of Interior Spaces is your boss; you’re the leader of the Consideration of New Things team. In a meeting with your team, your boss says, “I’ve just heard from my friend at Right To Drones Too (R2D2) that his group has perfected their inside drone. It’s small and light but can carry up to 10 pounds. It includes a camera, a speaker, and a recorder.” Your team expresses surprise; no one even knew an inside utility drone was under development, and governments worldwide are still haggling over regulations for drones. Your boss goes on enthusiastically, “I’ve seen the little drones, and I think you’ll be impressed – not only can they scoot across the quad, but they can fetch things off tables, grab me a latte, attend meetings for me, check over your shoulders to see what you’re working on….anything! They’re really accurate, agile, and super quiet, so you’ll barely know they’re around. My friend wants us to have the first 100 drones here for free, and he’s willing to send them over tomorrow! I fugure we can hand them out randomly, although of course we’ll each have one.” Your boss sits back, smiling and expecting applause. You glance at your team members and are relieved to see doubt and hesitation on their faces. “Sounds, uh, great,” you reply. “But how about the team takes the afternoon to set the ground rules?” Questions How might the R2D2 drones influence employee behavior? Do you think they will cause people to act more or less ethically? Why? Answer: The introduction of R2D2 drones into the workplace would undoubtedly influence employee behavior in several ways: 1. Increased Efficiency: Employees may utilize the drones to delegate tasks, retrieve items, or attend meetings on their behalf, leading to increased productivity and efficiency in completing tasks. 2. Surveillance Concerns: Knowing that drones equipped with cameras and recorders are constantly present could lead to feelings of surveillance among employees, potentially altering their behavior and reducing feelings of privacy in the workplace. 3. Dependency: Employees might become overly reliant on the drones to perform tasks for them, leading to a decrease in personal initiative and problem-solving skills. 4. Distraction: While drones can be useful, their presence might also become a source of distraction, especially if employees are constantly monitoring or interacting with them instead of focusing on their work. 5. Equity and Fairness: Concerns may arise regarding the fair distribution and use of drones among employees. If some employees receive preferential treatment in accessing drones or utilizing their capabilities, it could lead to resentment and feelings of inequality. 6. Ethical Considerations: The use of drones raises ethical questions about surveillance, privacy, and accountability. Employees may need guidelines on appropriate drone usage to ensure they are not misused for activities such as spying on colleagues or violating personal boundaries. Overall, whether the drones lead to more or less ethical behavior depends on how they are implemented and regulated within the workplace. Clear policies and guidelines will be essential to mitigate potential misuse and ensure that the introduction of drones enhances rather than undermines ethical standards in the workplace. Who should get the drones initially? How can you justify your decision ethically? What restrictions for use should these people be given, and how do you think employees, both those who get drones and those who don’t, will react to this change? Answer: Initially, the drones should be distributed to key personnel who can maximize their utility while minimizing potential ethical concerns. This could include: 1. Facilities and Maintenance Staff: They can use drones for quick inspections of hard-to-reach areas, such as ceiling fixtures or HVAC systems, improving efficiency and safety. 2. Security Team: Drones can enhance surveillance efforts, monitoring the premises for any suspicious activity or potential security breaches. 3. Executive Assistants: Drones can assist with tasks like fetching documents, delivering messages, or coordinating schedules, freeing up time for executives to focus on higher-level tasks. 4. IT Department: Drones can assist with troubleshooting technical issues, delivering equipment or cables to different departments, or performing inventory checks in server rooms. 5. Health and Safety Officers: Drones can be used to conduct safety inspections, monitor compliance with safety protocols, and respond to emergencies more efficiently. Justifying this initial distribution ethically involves prioritizing roles where drone usage can directly contribute to the company's operations and employee well-being, rather than solely for personal convenience or entertainment. Restrictions for drone use should be established to ensure responsible and ethical deployment: 1. Privacy: Drones should not be used for unauthorized surveillance or intrude on employees' privacy. Clear guidelines on when and where drones can operate should be established. 2. Safety: Drones should not interfere with normal work activities or pose a safety risk to employees. They should be operated in designated areas away from high-traffic zones. 3. Data Security: Any data collected by drones, such as images or recordings, should be handled in compliance with company policies and data protection regulations. 4. Training: Employees receiving drones should undergo training on proper operation, maintenance, and ethical use to prevent misuse or accidents. 5. Accountability: There should be mechanisms in place to track drone usage and hold users accountable for any violations of company policies or ethical standards. Employees who receive drones may initially feel privileged and excited about the new technology, but they may also be cautious about potential backlash from coworkers who did not receive drones. It's essential to communicate transparently about the reasons for the initial distribution and reassure employees that the use of drones will be fair and beneficial for the company as a whole. Employees who do not receive drones may feel left out or concerned about the implications of increased surveillance or automation in the workplace. Open dialogue and clear communication about the purpose and limitations of drone usage can help address these concerns and foster acceptance of the new technology. How will your organization deal with sabotage or misuse of drones? The value of an R2D2 drone is $2,500. Answer: To address sabotage or misuse of drones, the organization should implement several measures to prevent and mitigate such incidents: 1. Strict Access Control: Limit access to drones to authorized personnel only. Implement secure storage areas and require authentication before drones can be accessed or operated. 2. Monitoring and Tracking: Utilize tracking systems to monitor the location and usage of drones in real-time. This can help identify any unauthorized use or suspicious activities. 3. Training and Education: Provide comprehensive training to drone operators on proper operation, maintenance, and ethical use. Emphasize the importance of responsible behavior and the consequences of misuse. 4. Clear Policies and Procedures: Establish clear guidelines and procedures for drone operation, including acceptable uses, prohibited activities, and reporting mechanisms for incidents or concerns. 5. Remote Shutdown Capability: Equip drones with remote shutdown functionality that allows administrators to disable them in case of misuse or emergencies. 6. Regular Audits and Inspections: Conduct regular audits and inspections of drone equipment to ensure compliance with policies and identify any signs of tampering or damage. 7. Encourage Reporting: Create a culture where employees feel comfortable reporting any suspicions or concerns regarding drone misuse. Provide anonymous reporting channels if necessary. In the event of sabotage or misuse, the organization should take swift and decisive action to address the issue: 1. Investigation: Promptly investigate any reports or evidence of sabotage or misuse to determine the extent of the problem and identify responsible parties. 2. Disciplinary Action: Enforce disciplinary measures, ranging from warnings and retraining to suspension or termination, depending on the severity of the offense and organizational policies. 3. Legal Recourse: If necessary, pursue legal action against individuals found guilty of sabotage or misuse, including seeking compensation for damages to the drones or any associated costs. 4. Preventative Measures: Review and strengthen existing security measures and protocols to prevent similar incidents in the future. This may include updating access controls, enhancing surveillance systems, or implementing additional safeguards. Given the value of an R2D2 drone at $2,500, the organization should emphasize the importance of protecting these assets and the potential financial consequences of sabotage or misuse. By implementing proactive measures and responding effectively to incidents, the organization can minimize the risk of damage or disruption caused by malicious actions. . Many organizations already use electronic monitoring of employees, including sifting through website usage and e-mail correspondence, often without the employee’s direct knowledge. In what ways might drone monitoring be better or worse for employees than covert electronic monitoring of Web or e-mail activity? Answer: This question will probably generate considerable class discussion. Some students will believe that as bad as covert scrutiny of e-mail and Internet usage is, the use of drones would be more invasive and ethically wrong. Students taking this perspective are likely to also point out that the “someone’s always watching you” element of drones could introduce a negative atmosphere to the workplace, bringing down employee morale. Other students may argue that the use of drones is more open than covert monitoring, and while drones can be used to monitor employees, employees at least know that it is happening. Students taking this point of view may also suggest that drones could help identify problems that had been overlooked, problems that if resolved, could create a better, more efficient workplace. Case Incident 1 Apple Goes Global It wasn’t long ago that products from Apple, perhaps the most recognizable name in electronics manufacturing around the world, were made entirely in America. This is not so anymore. Now, almost all of the approximately 70 million iPhones, 30 million iPads, and 59 million other Apple products sold yearly are manufactured overseas. This change represents more than 20,000 jobs directly lost by U.S. workers, not to mention more than 700,000 other jobs and business given to foreign companies in Asia, Europe, and elsewhere. The loss is not temporary. As the late Steven P. Jobs, Apple’s iconic co-founder, told President Obama, “Those jobs aren’t coming back.” At first glance, the transfer of jobs from one workforce to another would seem to hinge on a difference in wages, but Apple shows this is an oversimplification. In fact, paying U.S. wages would add only $65 to each iPhone’s expense, while Apple’s profits average hundreds of dollars per phone. Rather, and of more concern, Apple’s leaders believe the intrinsic characteristics of the labor force available to them in China—which they identify as flexibility, diligence, and industrial skills—are superior to those of the U.S. labor force. Apple executives tell stories of shorter lead times and faster manufacturing processes in China that are becoming the stuff of company legend. “The speed and flexibility is breathtaking,” one executive said. “There’s no American plant that can match that.” Another said, “We shouldn’t be criticized for using Chinese workers. The U.S. has stopped producing people with the skills we need.” Because Apple is one of the most imitated companies in the world, this perception of an overseas advantage might suggest that the U.S. workforce needs to be better led, better trained, more effectively managed, and more motivated to be proactive and flexible. If U.S. (and Western European) workers are less motivated and less adaptable, it’s hard to imagine that does not spell trouble for the future of the American workforce. Perhaps, though, Apple’s switch from “100% Made in the U.S.A.” to “10% Made in the U.S.A.” represents the natural growth pattern of a company going global. At this point, the iPhone is largely designed in the United States (where Apple has 43,000 employees), parts are made in South Korea, Taiwan, Singapore, Malaysia, Japan, Europe and elsewhere, and products are assembled in China. The future of at least 247 suppliers worldwide depends on Apple’s approximately $30.1 billion in orders per quarter. And we can’t forget that Apple posted $16.1 billion in revenue from the first quarter of 2014, perhaps in part because its manufacturing in China builds support for the brand there. As makers of some of the most cutting-edge, revered products in the electronics marketplace, perhaps Apple serves not as a failure of one country to hold onto a company completely, but as one of the best examples of global ingenuity. Sources: B. X. Chen, “IPhone Sales in China Bolster Apple Earnings,” The New York Times (January27, 2015), http://www.nytimes.com/2015/01/28/technology/apple-quarterly-earnings.html?_r=0; C. Duhigg and K. Bradsher, “How U.S. Lost Out on iPhone Work,” The New York Times, January 22, 2013, A1, A22–A23; H. Gao, “How the Apple Confrontation Divides China,” The Atlantic (April 8, 2013), www.theatlantic.com/ china/archive/2013/04/how-the-apple-confrontation-divides-china/274764/; and A. Satariano, “Apple Slowdown Threatens $30 Billion Global Supplier Web,” Bloomberg, www.bloomberg.com/news/2013-04-18/apple-slowdown-threatens-30-billion-global-supplierweb- tech.html. Questions 1-15.What are the pros and cons for local and overseas labor forces of Apple’s going global? What are the potential political implications for country relationships? Answer: Apple’s decision to manufacture its products in China using inputs sourced from multiple countries is beneficial for the overseas labor force where new jobs are created and spillover effects can generate other benefits for the local economy. Local low skilled labor forces will suffer from a loss of jobs, however higher skilled labor involved with product development could benefit if Apple’s products continue to be in high demand. While the ‘export of jobs’ can create tension between China and the United States, U.S. companies could stand to benefit if China’s now wealthier labor force increases its demand for U.S.-made or designed products. 1.16. As a U.S. corporation, does Apple and its management have a moral obligation to provide jobs for U.S. employees first? If this is the case, then does this put international employees at a distinct disadvantage? Answer: Many students will agree with Apple executives; others will suggest that the Apple executives were too quick to move production overseas. Others still will state that Apple should support the U.S. workforce and keep its manufacturing at home. The truth lies somewhere in between. If the U.S. workforce can be deployed to produce higher-value skills such as idea generation and development, then lower-level assembly skills should be moved abroad. It is certainly true that many global organizations will reduce employee numbers abroad first rather than reduce home-based employee numbers. The question of whether a corporation like Apple has a moral obligation to prioritize job opportunities for U.S. employees over international employees is complex and subject to differing perspectives on ethics, globalization, and corporate responsibility. From one standpoint, some may argue that Apple, as a U.S.-based corporation, has a moral duty to contribute to the economic well-being of its home country by creating jobs for U.S. citizens. This perspective aligns with principles of national loyalty and social responsibility, emphasizing the importance of supporting domestic workers and communities. However, others may contend that Apple's primary responsibility is to its shareholders and stakeholders, regardless of nationality. In a globalized economy, corporations often operate across borders and hire talent from diverse backgrounds to remain competitive and innovative. Prioritizing U.S. employees over international employees could be seen as discriminatory and contrary to principles of fairness and equal opportunity. Furthermore, Apple's success and growth as a multinational company benefit not only its shareholders but also its global workforce, including international employees who contribute their skills and expertise to the company's operations. Excluding them from job opportunities solely based on their nationality could be seen as unjust and detrimental to the company's overall performance. Ultimately, Apple and its management must balance various ethical considerations, including loyalty to the home country, fairness to employees of all nationalities, and the pursuit of corporate goals and interests. While there may be moral arguments in favor of prioritizing U.S. employees, doing so could potentially disadvantage international employees and raise concerns about discrimination and inequality. As such, any decisions regarding hiring practices should be made carefully, taking into account the broader ethical implications and obligations of the corporation. Is it possible for U.S. managers to organize, motivate, and ensure quality in their Chinese manufacturing facilities? Answer: Yes, it is indeed possible for U.S. managers to organize, motivate, and ensure quality in their Chinese manufacturing facilities. However, achieving success in this endeavor requires a nuanced understanding of cultural differences, effective communication strategies, and a commitment to building strong relationships with local teams. Organizing: U.S. managers can leverage their organizational skills to establish clear processes, workflows, and performance metrics in Chinese manufacturing facilities. By implementing standardized procedures and systems, they can streamline operations and enhance efficiency. Motivating: Motivating Chinese employees may require a different approach compared to U.S. workers due to cultural differences. U.S. managers can foster motivation by recognizing and rewarding employees' achievements, providing opportunities for professional development, and creating a positive work environment that values teamwork and collaboration. Ensuring Quality: Quality control is crucial in manufacturing, and U.S. managers can play a key role in ensuring high standards are met in Chinese facilities. This may involve implementing quality management systems, conducting regular inspections and audits, providing training on quality standards, and fostering a culture of continuous improvement. Effective Communication: Effective communication is essential for successful collaboration between U.S. managers and Chinese teams. U.S. managers should invest time and effort in understanding cultural nuances, overcoming language barriers, and building trust with their Chinese counterparts. Utilizing interpreters, adopting cross-cultural training programs, and leveraging technology for remote communication can facilitate effective communication. Cultural Sensitivity: U.S. managers must demonstrate cultural sensitivity and adaptability when working with Chinese employees. This involves respecting cultural norms, traditions, and values, as well as being open-minded and flexible in addressing cultural differences and challenges. Overall, while managing Chinese manufacturing facilities as a U.S. manager may present unique challenges, it is certainly feasible with the right approach, skills, and mindset. By embracing cultural diversity, fostering effective communication, and prioritizing collaboration, U.S. managers can successfully organize, motivate, and ensure quality in their Chinese manufacturing operations. Case Incident 2 Big Data for Dummies Do you need big data? Maybe the question is better phrased as: Can you afford not to use big data? The age of big data is here, and to ignore its benefits is to run the risk of missed opportunities. Organizations using big data are quickly reaping rewards, as a survey of 2,022 managers worldwide indicated recently. In fact, 71 percent of respondents agreed that organizations using big data will gain a “huge competitive advantage.” These managers also saw the need for bigdata: 58 percent responded that they never, rarely, or only sometimes have enough data to make key business decisions. Furthermore, they’ve witnessed the benefits: 67 percent agreed that big data has helped their organization to innovate. So why did only 28 percent find that their access to useful data significantly increased in a year? According to Amy Braverman, a principal statistician who analyzes NASA’s spacecraft data, the problem is interpreting new kinds and volumes of data we are able to collect. “This opportunistic data collection is leading to entirely new kinds of data that aren’t well suited to the existing statistical and data-mining methodologies, “she said. IT and business leaders agree: in a recent survey, “determining how to get value” was identified as thenumber1 challenge of big data. With strong need combating the high hurdle for usability, how should a company get started using big data? The quick answer seems to be to hire talent. But not just anyone will do. Here are some points to ponder when hiring data professionals: Look for candidates with a strong educational background in analytics/statistics. You want someone who knows more than you do about handling copious amounts of data. The ideal candidates will have specific experience in your industry or a related industry. “When you have all those Ph.D.’s in a room, magic doesn’t necessarily happen because they may not have the business capability,” said Andy Rusnak, a senior executive at Ernst & Young. Search for potential candidates from industry leader organizations that are more advanced in big data. Communication skills are a must. Look for a candidate “who can translate Ph.D. to English,” says SAP Chief Data Scientist David Ginsberg. He adds, “Those are the hardest people to find.” Find candidates with a proven record of finding useful information from a mess of data, including data from questionable sources. You want someone who is analytical and discerning. Look for people who can think in 8• to 10-week periods, not just long term. Most data projects have a short-term focus. Test candidates’ expertise on real problems. Netflix’s Director of Algorithms asks candidates, “You have this data that comes from our users. How can you use it to solve this particular problem?” Sources: M. Taes, “If I Could Have More Data…,” The Wall Street Journal, March 24, 2014, R5; S. Thurm, “It’s a Whole New Data Game,” The Wall Street Journal, February 10, 2015, R6; and J. Willhite, “Getting Started in ‘Big Data’,” The Wall Street Journal, February 4, 2014, B7. Let’s say you work in a metropolitan city for a large department store chain and your manager puts you in charge of a team to find out whether keeping the store open an hour longer each day would increase profits. What data might be available to your decision-making process? What data would be important to your decision? Answer: Relevant internally-generated variables would include number of customers in the store prior to closing, sales levels prior to closing, and so on. Data along these lines is probably readily available to companies that track sales. Managers would also probably consider external variables such as the opening hours of competitors or access to public transportation if the store is in an urban area. What kinds of data might we want in OB applications? Answer: In organizational behavior (OB) applications, various types of data are valuable for understanding and improving organizational dynamics, employee behavior, and performance. Some of the key types of data include: 1. Demographic Data: Information about employees' age, gender, ethnicity, education level, and other demographic factors can provide insights into workforce diversity, equity, and inclusion efforts. 2. Performance Data: Data related to individual and team performance, such as sales figures, productivity metrics, customer satisfaction scores, and project completion rates, can help assess effectiveness and identify areas for improvement. 3. Employee Engagement Data: Surveys or assessments measuring employee satisfaction, engagement levels, morale, and commitment to the organization can inform strategies for enhancing employee motivation and retention. 4. Organizational Climate Data: Data on organizational culture, leadership styles, communication patterns, and employee perceptions of the work environment can shed light on factors influencing employee behavior and organizational effectiveness. 5. Absenteeism and Turnover Data: Tracking absenteeism rates, turnover rates, reasons for turnover, and retention efforts can help identify patterns and factors contributing to employee attrition and inform retention strategies. 6. Training and Development Data: Data on training participation, skill development, competency assessments, and learning outcomes can help evaluate the effectiveness of training programs and support ongoing employee development efforts. 7. Workforce Planning Data: Information about staffing levels, talent pipelines, succession planning, and workforce trends can guide strategic decisions related to recruitment, talent management, and succession planning. 8. Employee Relations Data: Records of employee grievances, disciplinary actions, conflict resolution processes, and workplace incidents can help identify areas of concern and inform strategies for improving employee relations and maintaining a positive work environment. 9. Health and Wellness Data: Data on employee health, wellness programs participation, absenteeism due to illness, and healthcare utilization can support initiatives aimed at promoting employee well-being and reducing healthcare costs. 10. Ethical and Compliance Data: Monitoring data related to ethical violations, compliance with company policies, and legal requirements can help mitigate risks and ensure adherence to ethical standards and regulatory obligations. Collecting and analyzing these types of data can provide organizations with valuable insights into various aspects of their workforce, culture, and operations, enabling informed decision-making and continuous improvement in organizational effectiveness and employee satisfaction. As Braverman notes, one problem with big data is making sense of the information. How might a better understanding of psychology help you sift through all this data? Answer: Numbers only tell part of the story. In order to understand data fully, it is necessary to understand the mindset of the customer or employee. A better understanding of psychology could provide insight into the hows and whys of the data set and potentially some vision as to whether similar numbers could be expected in the future or whether they might take a different path. My Management Lab Go to mymanagementlab.com for Auto-graded writing questions as well as the following Assisted-graded writing questions: Now that you’ve read the chapter and Case Incident 1, if you were an Apple manager whose employees were losing their jobs to overseas workers, what would you advise your teams to do in order to find re-employment in their professions? What types of training—basic, technical, interpersonal, problem-solving—would you recommend? Answer: If I were an Apple manager facing the challenge of employees losing their jobs to overseas workers, I would advise my teams to take proactive steps to enhance their skills and marketability in their professions. Here are some recommendations for re-employment and types of training that could be beneficial: 1. Assessment of Transferable Skills: Encourage employees to assess their current skills and identify those that are transferable to other industries or roles. Many skills acquired in the tech industry, such as project management, data analysis, and problem-solving, are valuable across various sectors. 2. Basic Training: Offer basic training programs to fill any gaps in foundational skills that may be necessary for transitioning to new roles or industries. This could include courses in communication, time management, and teamwork. 3. Technical Training: Provide technical training in emerging technologies or areas of high demand in the job market. This could involve learning programming languages, software development methodologies, cybersecurity, or data analytics, depending on the individual's interests and career goals. 4. Interpersonal Skills Development: Offer training in interpersonal skills such as leadership, emotional intelligence, networking, and conflict resolution. These skills are essential for building professional relationships, navigating career transitions, and advancing in new roles. 5. Problem-Solving Skills: Offer training programs focused on enhancing problem-solving abilities, critical thinking, and creativity. Employees can benefit from learning techniques for identifying and solving complex problems, which are valued in many industries. 6. Industry-Specific Training: Provide opportunities for employees to gain industry-specific knowledge and certifications relevant to their desired career paths. This could involve attending workshops, seminars, or online courses in sectors with growing job opportunities. 7. Career Counseling and Mentorship: Offer career counseling services and mentorship programs to support employees in exploring their career options, setting goals, and developing personalized career plans. Mentors can provide guidance, advice, and support throughout the job search and career transition process. By investing in comprehensive training and development initiatives, Apple can empower its employees to adapt to changing market conditions, acquire new skills, and pursue meaningful career opportunities both within and outside the company. Additionally, fostering a culture of continuous learning and career development can help employees thrive in their professional journeys and contribute to their long-term success. In relation to Case Incident 2, why do you think it is important to have educated, experienced statisticians on any team that is using big data for decision making? What might be the consequences of hiring someone with less experience? Answer: In Case Incident 2, the importance of having educated, experienced statisticians on a team using big data for decision-making cannot be overstated. Here are several reasons why: 1. Data Quality Assurance: Experienced statisticians have the expertise to ensure the accuracy, reliability, and integrity of the data being analyzed. They can identify and address data quality issues such as missing values, outliers, and inconsistencies, which are critical for making sound decisions based on big data. 2. Complex Data Analysis: Big data often involves large, complex datasets with diverse variables and relationships. Statisticians are trained to apply advanced analytical techniques and statistical models to extract meaningful insights from such data, helping teams uncover patterns, trends, and correlations that may not be apparent to untrained individuals. 3. Interpretation of Results: Statisticians possess the knowledge and skills to interpret statistical analyses and communicate findings effectively to stakeholders. They can provide context, explanations, and recommendations based on the data analysis, enabling informed decision-making and strategy development. 4. Risk Assessment: Statisticians can assess the validity and reliability of statistical models and predictions, as well as the associated uncertainties and risks. This is crucial for evaluating the potential outcomes and implications of different decision options and mitigating risks associated with data-driven decisions. 5. Optimization and Efficiency: Experienced statisticians can optimize data analysis processes, improve computational efficiency, and streamline workflows to maximize the utility of big data for decision-making. Their expertise can lead to more efficient use of resources and better allocation of time and effort in data analysis tasks. Conversely, hiring someone with less experience in statistics for a team using big data can have several consequences: 1. Data Quality Issues: Inexperienced individuals may overlook or misinterpret data quality issues, leading to flawed analyses and unreliable results. This can undermine the credibility of the findings and compromise the integrity of decision-making processes. 2. Inaccurate Analysis: Without proper statistical expertise, individuals may apply inappropriate or incorrect analytical techniques to big data, resulting in inaccurate conclusions and misguided decisions. This can lead to wasted resources, missed opportunities, and potential business risks. 3. Limited Insights: Inexperienced individuals may struggle to extract meaningful insights from big data or to identify relevant patterns and trends. As a result, decision-making may be based on incomplete or superficial analyses, which can hinder organizational performance and competitiveness. 4. Difficulty in Communication: Individuals with limited statistical experience may struggle to effectively communicate complex analytical concepts and findings to stakeholders. This can impede collaboration, alignment, and decision-making within the team and across the organization. In summary, having educated, experienced statisticians on a team using big data is essential for ensuring data quality, conducting accurate analyses, interpreting results effectively, assessing risks, and optimizing decision-making processes. Hiring individuals with less experience in statistics can pose significant risks to the validity, reliability, and utility of data-driven decision-making efforts. My Management Lab only—comprehensive writing assignment for this chapter. Answer: In this comprehensive writing assignment, we will explore key concepts from the chapter and Case Incidents, integrating theoretical knowledge with practical applications. Let's outline the structure of the assignment: 1. Introduction: • Brief overview of the importance of organizational behavior in modern business environments. • Mention the focus of the assignment on key concepts and Case Incidents. 2. Understanding Organizational Behavior: • Define organizational behavior and its significance in understanding individual and group dynamics within organizations. • Discuss the relevance of OB theories and frameworks in explaining employee behavior, motivation, and performance. 3. Case Incident 1: Apple's Labor Issues: • Summarize the case and its implications for Apple's management and employees. • Analyze the challenges faced by Apple in managing labor relations and offshore outsourcing. • Provide recommendations for Apple managers to address labor issues and mitigate negative consequences. 4. Case Incident 2: Big Data Analytics: • Summarize the case and its relevance to the role of statistics in big data analytics. • Discuss the importance of having educated, experienced statisticians on teams using big data for decision-making. • Explore potential consequences of hiring individuals with less experience in statistics for data analysis teams. 5. Strategies for Employee Re-Employment: • Discuss strategies for employees facing job loss due to outsourcing or technological advancements to find re-employment. • Recommend types of training (basic, technical, interpersonal, problem-solving) to enhance employees' marketability and employability. • Highlight the role of career counseling, mentorship, and continuous learning in supporting employees' career transitions. 6. Conclusion: • Summarize key insights from the assignment, emphasizing the importance of organizational behavior, labor management, and data analytics in contemporary business contexts. • Reiterate the significance of leveraging theoretical knowledge to address real-world challenges and enhance organizational effectiveness. 7. References: • Cite relevant sources, including the textbook and any additional readings used in the assignment. By following this structure, the comprehensive writing assignment will provide a thorough analysis of key concepts in organizational behavior, integrating theoretical understanding with practical applications through the examination of Case Incidents. It will also offer actionable recommendations for addressing labor issues, leveraging big data analytics, and supporting employee re-employment in dynamic organizational environments Instructor’s Choice Companies Dealing with OB Issues The assignment is to find an organization that is facing two or more of the four challenges discussed in the chapter. It is recommended that students use one of the recognized search engines to conduct research. Remind students that they may have to read between the lines to discover the effects and response to challenges. One example that can be used to start the discussion is to go to the Nike website(www.nike.com) and review the company’s statements about having their products manufactured offshore. For the past several years, Nike has come under increasing criticism for its manufacturing practices in Vietnam. Have students see how the company explains its current practices and relationships with foreign contractors. Exploring OB Topics on the Web
Using the Internet to locate information can be a useful tool to the student (or manager) interested in exploring topics in OB. For this first exercise, go to www.searchenginewatch.com to learn more about what search engines and meta crawlers do and how they differ. Once you are on the Search Engine Watch home page, click on Search Engine Listings, then on Major Search Engines. This page presents an overview of the major engines and how best to use them. Do not forget to look at other topics on this website that are interesting to you. Now perform a search on “Organizational Behavior” using three different search engines. Do the results differ or are they the same? If they differ, why do you think they are different? Write a paragraph or two answering these questions based on what you learned from researching search engines. Also, include another paragraph providing examples and/or reasons of when you would choose one search engine over another. The text tells us that OB replaces intuition with systematic study. Where do scholars prepare for a career researching OB topics? Additionally, what if you decide at some point to pursue graduate study in OB? Where would you go? Perform a search to identify two to three graduate programs in OB and print out the home page with the descriptions of these programs and bring them to class. Note that different schools have programs in different departments and disciplines, which shows the diversity of thinking about OB in these programs. If you need ideas as to where to start, try: Harvard: http://www.hbs.edu/units/ob/index.html Official website of the Organizational Behavior Division of the Academy of Management: http://www.obweb.org/ If time allows, discuss as a class the information you found on the general areas of study and the types of courses required in graduate work in OB. One of the challenges facing managers is the fact that organizations are no longer constrained by national borders. Go to the SHRM homepage (www.shrm.org) and identify OB topics that relate to globalization. Try to find as many as possible. Compare your list with a classmate and note the ones you missed. Choose one of the topics and, on a separate paper, write three questions you have on the topic. Click on the topics or links on the SHRM homepage and try to find the answers. If you find what you are looking for, write the answers next to your original questions. If you are unsuccessful in finding the answers, write a short paragraph describing what your strategy would be to find the answers you want. Many organizations look for ways to promote diversity through family-friendly policies. Look for three companies that are incorporating family-friendly policies into their HRM strategy. On a separate paper, answer the following questions: Who are the companies? (Be sure to list their websites, too.) What are their policies? How do these policies attract and keep people? Do these policies interest you? Why? How might they make their policies more attractive to workers? If they make the changes you suggest, what results would you expect? (Is there evidence to back up your opinion? If it is just your opinion, say so, but later we will look for studies that back up or refute your opinion today.) Find an organization that directly addresses the cost of absenteeism or turnover on its website. What, if anything, is that organization doing to reduce those costs? What did your search tell you in terms of the importance or unimportance of these costs to organizations? In class, meet in small groups to discuss the strategies organizations are using. Once you have found an organization, check with your instructor to make certain there are not too many students in the class researching the same company. Be prepared to talk about your organization’s strategy to the group and possibly the class. Below are some websites to get you started, but do not hesitate to perform your own search: www.shrm.org http://www.jointventure.org http://eafinc.org Solution Manual for Organizational Behavior Timothy A. Judge Stephen P. Robbins 9781292146300, 9780133507645, 9780136124016
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