CH-7-8 Trust, Justice, and Ethics – Organizational Behaviour: Improving Performance and Commitment in the Workplace : Book Guide

This Document Contains Chapters 7 to 8 Chapter 7 Trust, Justice, and Ethics CHAPTER OVERVIEW This chapter covers the topics of trust, justice, and ethics. Trust, or the willingness to be vulnerable to an authority based on positive expectations about the authority’s actions and intentions, is discussed from the perspective of personality, cognition, and affect. Four different types of justice, or the perceived fairness of actions, are discussed – distributive justice, procedural justice, interpersonal justice, and informational justice. Finally, ethical decision making is explained in terms of moral awareness, moral judgment, and moral intent. The chapter concludes by showing how ethical organizations emphasize corporate social responsibility to help their employees meet the economic, legal, ethical, and citizenship expectations of society. LEARNING OUTCOMES After reading this chapter, you should be able to answer the following questions: 7.1 What is trust, and how does it relate to justice and ethics? 7.2 In what three sources can trust be rooted? 7.3 What dimensions can be used to describe the trustworthiness of an authority (e.g., manager)? 7.4 What dimensions can be used to describe the fairness of an authority’s decision making? 7.5 What is the four-component model of ethical decision making? 7.6 How does trust affect job performance and organizational commitment? 7.7 What steps can organizations take to become more trustworthy? CHAPTER OUTLINE I. Trust, Justice, and Ethics A. Reputation - the prominence of a brand in the minds of the public and the perceived quality of its goods and services. It depends largely on trust. B. Trust – the willingness to be vulnerable to an authority based on positive expectations about the authority’s actions and intentions 1. Authorities can be either person-based or organization based 2. Trust is often dependent on two related concepts: a. Justice – the perceived fairness of an authority’s decision making b. Ethics – the degree to which the behaviours of an authority are in accordance with generally accepted moral norms II. Why Are Some Authorities More Trusted Than Others? A. Trust 1. Three types of trust a. Disposition-Based i. Some people have personality traits that include a general propensity to trust others OB Assessments: Trust Propensity. This brief assessment helps students to determine their inherent levels of trust. 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. When discussing the results of the assessment, ask students to vote on which is more damaging: being too trusting or being too suspicious. Ask students to describe the consequences of being too trusting (most will note that you can be taken advantage of or you could delegate to ineffective people). Also ask students to describe the consequences of being too suspicious (many will note the strain that would be brought on by monitoring, checking up, and not delegating, or the harm to interpersonal relationships when someone fails to trust). ii. Trust propensity is a product of both genetics and early childhood experiences iii. Trust propensity is also influenced by experiences in later life and national culture Try This! Ask students if they have any experiences in countries from Figure 7-2 that are especially high or low on trust propensity. Do they have experiences that are consistent with the rankings in the figure? Do they have experiences that are inconsistent with those rankings? How would those trust propensity levels manifest themselves in national norms, routines, practices, and laws? b. Cognition-based Trust i. Cognition-based trust is based on what we know about an authority – our understanding of that authority’s “track record” ii. Track records are gauged on three dimensions: a.) Ability – the skills and abilities that enable an authority to be successful in a given area b.) Benevolence – the belief that the authority wants to do good for the trustor, apart from any selfish or profit-centered motives c.) Integrity – the perception that the authority adheres to a set of values and principles that the trustor finds acceptable OB on Screen: Slumdog Millionaire. If you have access to this movie, please play it for your students during class. This scene depicts Jamal Malik’s dilemma as the host of the game show apparently sneaks him the answer to the next question. The clip provides a dramatic demonstration of the definition as trust, as Jamal must decide whether to accept vulnerability to the host by saying that answer, with a chance at a million dollars on the line. Poll the class to see how many would have gone with the answer that the host provided. Then ask them which trustworthiness dimension would have been most relevant to their trust levels. They will probably draw most on integrity, given that the host himself has broken the rules of the show by sharing an answer. However, they may also realize that the host lacks benevolence, as he doesn’t want Jamal’s fame to surpass his own. Try This! Use the Slumdog Millionaire clip for a different chapter. As Jamal decides whether to trust the host, he may be considering social identity theory issues from Chapter 8 on Learning and Decision Making (because the host grew up in the slums, just like Jamal). The host’s surprise at Jamal’s performance on the game is also indicative of stereotypes. Finally, Jamal’s desire to continue playing the game, instead of walking away with the money’s he’s already earned, is indicative of escalation of commitment. The behaviour of both men also serves as a good example of emotional intelligence from Chapter 9 on Ability (especially in terms of other awareness, emotion regulation, and use of emotions). Finally, the host’s behaviour in the restroom provides a good example of ingratiation from Chapter 11 on Power, Influence, and Negotiation. Bonus OB on Screen (from 1st ed): Pirates of the Caribbean: The Curse of the Black Pearl. Chapter 2 of the DVD (beginning at 8:51 and ending at 16:05 for a total running time of 7 minutes, 14 seconds) introduces the audience to Captain Jack Sparrow. Jack’s behaviour during the clip reveals that he’s not particularly trustworthy, which isn’t surprising for a pirate. The key issue for class discussion is “why aren’t pirates trustworthy?” The answer lies in a combination of poor character (pirates lie and steal a lot) and low benevolence (pirates are motivated purely by profit-centered motives). In Jack’s case, he demonstrates more benevolence than most pirates, as shown by his rescue of Elizabeth—the drowning woman. Still, that benevolence isn’t quite enough to offset all the lies Jack tells throughout the film. c. Affect-based Trust i. Affect-based trust is emotional – it is based on the feelings we have for people, not rational evaluations of their trustworthiness a.) May act as a supplement to other types of trust – is built up over time B. Justice 1. Distributive Justice – perceptions of fairness related to whether or not outcomes have been allocated in accordance with accepted norms a. Most common norm in business settings is equity – more outcomes should be given to people who contribute more inputs 2. Procedural Justice – perceptions of fairness related to whether or not the rules of fair process have been followed a. Rules of Fair Process i. Voice – do employees have a chance to express their opinions? ii. Correctability – can employees request an appeal when a procedure seems to have worked ineffectively? iii. Consistency – are procedures consistent across people and time? iv. Bias suppression – are procedures neutral and unbiased? v. Representativeness – do procedures consider the needs of all groups? vi. Accuracy – are procedures based on accurate information? Try This! Take some decision making procedure that a number of students will be familiar with. It could be the procedure used to elect U.S. Presidents, the procedure used to crown a college football champion, the procedure used to decide which students are eligible for tickets to university sporting events—anything with which most students would be familiar. Then ask the students to analyze the fairness of the procedure using the procedural justice rules in Table 7-1. How is the process fair, or how is the process unfair? b. Research shows that procedural justice is a stronger driver of reactions to authorities than distributive justice 3. Interpersonal Justice - perceptions of fairness related to whether or not authorities treat people with fairness when implementing rules a. Rules for Fair Treatment i. Respect rule – are people treated in a dignified and sincere manner? ii. Propriety rule – do authorities refrain from making improper or offensive remarks? b. Abusive Supervision - behaviours that are extremely unfair from an interpersonal justice perspective, with sustained displays of hostile verbal and nonverbal behaviour (excluding physical contact) 4. Informational Justice - perceptions of fairness related to whether or not the communications provided to employees during organizational decision making are fair a. Rules for Fair Communication i. Justification rule – have authorities explained the decision-making procedures and outcomes in a comprehensive and reasonable manner? ii. Truthfulness rule – have authorities been honest and candid in their communications? b. Informational justice can have a large impact on an organization’s bottom line. In one research study, a company offered two different explanations for a pay cut at two different plants. In the plant with a short, impersonal explanation for the pay cut, employee theft was five percent higher than it was at the plant where employees were given a longer, more sincere explanation for the pay cut. 5. Summary a. When authorities adhere to the justice rules in Table 7-1, they are more likely to be seen as trustworthy C. Ethics 1. Research on ethics seeks to explain why people behave in a manner consistent with generally accepted norms of morality, and why they sometimes violate those norms 2. 76% of employees have observed illegal or unethical conduct on the job within the past 12 months, and that figure may be higher in some countries. OB Internationally. This table shows that different countries have very different baseline levels of unethical actions. If you have international students, try to start a conversation with the class about specific behaviours that might be considered ethical in one country and unethical in another. What is it that makes a behaviour ethical or unethical? Do students believe that having a code of conduct, such as the one discussed in the box, will be enough to significantly alter employee behaviours in other countries/cultures? Why or why not? 3. Four Component Model of Ethical Decision Making a. Moral Awareness – Occurs when an authority recognizes that a moral issue exists in a situation or that an ethical standard or principle is relevant to the circumstance i. Moral awareness depends on: a.) Moral intensity, or the degree to which the issue has moral urgency i.) Moral urgency is driven by two general factors (see Table 7-3) a. Potential for harm b. Social pressure b.) Moral attentiveness, or the degree to which people chronically perceive and consider issues of morality b. Moral Judgment – Occurs when an authority accurately identifies the morally “right” course of action i. Moral judgment depends on: a.) Stage of cognitive moral development i.) preconventional - right and wrong is based on consequences of actions for the individual ii.) conventional - right and wrong is based on the expectations of family and society iii.) principled/postconventional - right and wrong is referenced to a set of defined, established moral principles (see Table 7-5). Some principles are consequentialist, meaning the morality of the acts depends on their goals, aims, or outcomes. Other principles are non-consequentialist, emphasizing instead formal codes or standards. c. Moral Intent – reflects the authority’s degree of commitment to a moral action i. Driven by moral identity – the degree to which people see themselves as a “moral person” Try This! Describe a scenario for your students that could be used as an example for the parts of the four-component model. For example: assume a student “heard through the grapevine” that other students had obtained an advanced copy of the final exam in the class. Should the student report this to the professor? Based on Table 7-3, how morally intense is this issue, and why? Based on Table 7-5, which course of action is most morally right, and why? D. Summary: Why Are Some Authorities More Trusted Than Others? (Review Figure 7-7) III. How Important Is Trust? A. Trust has a moderate positive effect on performance, because it influences an employee’s ability to focus and because it fosters the development of a social (rather than merely economic) exchange relationship. B. Trust has a strong positive effect on commitment, because trust increases the likelihood that an emotional bond will develop between employer and employee IV. Application: Corporate Social Responsibility A. The idea of corporate social responsibility acknowledges that organizations must take the economic, legal, ethical, and citizenship expectations of society into account when conducting their business DISCUSSION QUESTIONS 7.1 Which would be more damaging in organizational life—being too trusting or not being trusting enough? Why do you feel that way? Answer: This discussion could parallel the discussion of the OB Assessment on trust propensity. When one is too trusting, one risks being taken advantage of, or entrusting important tasks to people who are not competent enough to do them. That tendency could be damaging at times, certainly. However, not being trusting enough could create more daily wear-and-tear on an employee. Being suspicious requires monitoring and the creation of backup plans, both of which distract from task effort. Moreover, trusting others is an empowering experience that can build bonds between coworkers. Being suspicious too often could harm such relationships. 7.2 Consider the three dimensions of trustworthiness (ability, benevolence, and integrity). Which of those dimensions would be most important when deciding whether to trust your boss? What about when deciding whether to trust a friend? If your two answers differ, why do they? Answer: Benevolence may be most important when deciding to trust a friend, whereas ability and integrity may be most important when deciding whether or not to trust a boss. Friendships develop over time and are more emotion-based, whereas a professional relationship with a boss depends on respect for the boss’s skills, and the hope that the boss will keep his promises. 7.3 Putting yourself in the shoes of a manager, which of the four justice dimensions (distributive, procedural, interpersonal, informational) would you find it most difficult to maximize? Which would be the easiest to maximize? Answer: Distributive justice is often the most difficult to maximize, just because managers may not have the discretion to allocate rewards according to a strict equity principle. Procedural justice can also be difficult to maximize as making decisions in a consistent, accurate, and unbiased work requires conscientious effort on the part of managers. In contrast, interpersonal and informational justice only require a commitment to engage in respectful and candid communication. 7.4 Which component of ethical decision making do you believe best explains student cheating: moral awareness, moral judgment, or moral intent? Why do you feel that way? Answer: Reactions to this question could vary. Most will probably view it as an issue of moral intent, as students might understand that cheating is wrong but still do it due to GPA pressures or a pressure to keep up with one’s classmates. However, some practices, such as secretly collaborating on papers and sharing take-home assignments could be becoming murkier in a moral judgment sense (given the rise of collaborative, open-source resources such as Wikipedia). Moral judgment best explains student cheating. This component involves evaluating the ethical implications of one's actions and deciding whether they are right or wrong. Students may cheat because they believe the benefits (like better grades or avoiding failure) outweigh the ethical concerns. If they perceive the act as less severe or justifiable in their specific context, moral judgment influences their decision to cheat. 7.5 Assume you were applying for a job at a company known for its corporate social responsibility. How important would that be to you when deciding whether to accept a job offer? Answer: Student answer to this question will vary depending on their moral attentiveness or their moral identity. It would be very important. A company's commitment to corporate social responsibility aligns with my values and indicates a positive work environment and ethical practices, which are crucial factors in my decision to accept a job offer. CASE: NIKE Questions: 7.1 Do you agree with Nike’s decision to downplay “green” issues when marketing their shoes? Why or why not? Answer: On the one hand, it is difficult to argue with such decisions given Nike’s generally accepted marketing success. The brand is built on performance, and there is a risk that “recycled materials” convey some decrement in quality or performance. It is also possible that issues of sustainability are less politically favoured for some of Nike’s core customers. On the other hand, one would think that Nike might have lost some customers due to its ethics controversies—customers that could potentially be won back if issues of ethics were emphasized in marketing. One compromise might be to use a small, targeted marketing campaign (perhaps print-based) on one exceptionally sustainable shoe, to see what comes of that sort of effort. 7.2 Assuming price and quality are both acceptable, to what degree do you consider the ethical reputation of a company when buying a product or service? Answer: Answers to this question will vary across students, and also according to the economy. It is easier to consider ethical reputation when price is constant, and more difficult when price is significantly (or even marginally) higher. I consider the ethical reputation of a company to a significant degree. If price and quality are comparable, a company's ethical practices influence my decision to support their business. 7.3 Does it seem like Nike is doing enough to build and maintain the trust in its brand? If not, what else would you like to see the company pursue? Answer: On the one hand, it certainly seems clear that they are doing more than they used to, and that they are doing as much (or more) than their peers. On the other hand, the MIT report is sobering. The company should likely continue its more proactive approach that goes beyond mere monitoring and sanctioning. Better equipment and more reliable work flows are the kinds of strategies that, if continued, could effect for significant change. Beyond that, it seems like Nike could do more marketing of the steps it’s doing to be more ethical. Currently, a number of people may just assume that the problems that occurred before are just as bad now. BONUS CASE: WAL-MART (from 1st ed) What two words pop into your head when you hear “Wal-Mart”? For many people, “low prices” would be the answer. From this perspective, Wal-Mart is viewed as a global success story—the company founded in Bentonville, Arkansas, by a folksy entrepreneur who built a brilliant distribution system to bring products to customers at lower costs. Those prices are critical to many shoppers and families, especially those who live on tight monthly budgets. As Wal-Mart describes it, the company’s mission is to “lower the world’s cost of living.” Indeed, we could argue that Wal-Mart represents the single most powerful force against inflation in the country. That low-price formula has proven so successful that Wal-Mart stands as the largest company in the history of the world, with 1.8 million people on the payroll as of 2005. Wal-Mart Canada, with head offices in Mississauga, Ontario, has been a bright spot for the world’s largest retailer. It has been estimated that about 80 percent to 90 percent of Canadian households shop at Wal-Mart, generating revenue of about $12 billion in 2006 (accounting for 15 percent of Wal-Mart’s international sales). The continued growth of Wal-Mart Canada’s business is built upon a foundation that began in 1994, when Wal-Mart Canada took over operations of a struggling chain of 122 Woolco stores. Today, Wal-Mart is Canada’s fourth largest employer with over 75,000 associates working in 301 stores, and is repeatedly listed among the 50 best companies to work. Other people, however, think of different words when they hear “Wal-Mart”— words like “evil empire.” Those low prices often force local shops out of business. Wal-Mart is also accused of forcing its suppliers to cut corners to meet its price demands, using its leverage to buy products more cheaply than its competing retailers. Many of the most fervent criticisms of Wal-Mart, however, centre on how it treats its employees. Critics argue that the “always low prices” goal is built on an “always low wages” reality, with Wal-Mart offering pay and benefits that cannot be considered a living wage. Critics note that Wal-Mart employees are paid so little that the only store they can afford to shop at is Wal-Mart! In 2004, the store in Jonquière, Quebec, became the only Wal-Mart store in North America to successfully unionize. Six months later, in early 2005—just prior to its first collective agreement—the Jonquière store was closed. A group of laid-off workers launched an appeal, claiming that this decision was retaliation against the union, but in the end the Quebec Court of Appeal ruled that the company did not transgress the province’s Labour Code. Apart from general concerns about its compensation, Wal-Mart has come under fire for illegal actions. For example, the company was recently forced to pay $78 million to 185,000 employees who claimed they were denied breaks and forced to work off the clock. That $78 million pales in comparison to the class action lawsuit brought against the company by 1.5 million current and former female employees. That suit, the largest of its kind in U.S. history, alleges that women get paid less than men for the same jobs and that men are promoted more frequently than women within the company. Analysts suggest that settling this discrimination case could wind up costing Wal-Mart $8 billion. One spokeswoman for the company worries that shoppers could start feeling guilty about going to Wal-Mart. In response to such pressures, Wal-Mart has undertaken some important reform efforts. For example, the company hired hundreds of new human resources managers to work out in the field in an effort to improve the company’s hiring and communication practices, along with employee morale and job behaviours. Wal-Mart’s former CEO, Lee Scott, seemed to understand the situation he’s facing. At a company gathering in 2005, Scott noted, “We have to remember that any bad incident that occurs is not only a reflection on the individual who did it but on all of us here.” He went on to suggest that any Wal-Mart employee who does something unfair or unethical is “getting ready to take out the paint brush and put a big black mark across WalMart Stores.” Wal-Mart has always been proud of having one of the strictest and most stringent ethics policies in the industry. Every employee in the company is encouraged to report suspicions of unethical activities. However, in recent years, Wal-Mart’s business tactics have come under constant scrutiny from critics. A report by McKinsey & Co. discovered that as early as 2004, 8 percent of the company’s customers had stopped shopping there due to its negative media attention. The consumer backlash against Wal-Mart’s new negative image has adversely influenced the company’s bottom line. Consumers have stopped shopping at Wal-Mart stores because the company is perceived as unfair to workers or bad for the economy. Often overlooked in this debate is the good that the company has done for local communities. Wal-Mart Canada, for instance, operates one of the countries strongest community involvement programs, focused on donating and raising money and increasing awareness for Canadian charities and organizations in need. Since coming to Canada in 1994, Wal-Mart Canada and its associates have raised and donated more than $50 million to Canadian organizations through the Good Works program. Some of the programs supported include Children’s Miracle Network, Breakfast Clubs of Canada, Canadian Red Cross, Juno Beach Centre, Adopt-a-School Program, Missing Children’s Program in conjunction with the RCMP, and the Wal-Mart Scholarship Program. Wal-Mart is now fighting an uphill battle to regain its reputation. Is it too late to salvage it? Sources: Useem, J. “Should We Admire Wal-Mart?” Fortune, March 8, 2004, pp. 118–20; Fishman, C. The Wal-Mart Effect. New York: Penguin Books, 2006; Serwer, A. “Bruised in Bentonville.” Fortune, April 18, 2005, pp. 84–89; Wal-Mart looks to Canada for growth. The Associated Press, March 21, 2007; http://www.walmart.ca/wps-portal/storelocator/Canada-About_Walmart.jsp; 50 Best Employers in Canada 2007. Hewitt and Associates. Globe and Mail’s Report on Business Magazine. www.hewitt.com/bestemployerscanada; Gunther, M. “The Green Machine.” Fortune, August 7, 2006, pp. 42–57; Wal-Mart to appeal union decision in Saint-Hyacinthe, CBC News, February 14, 2005; http://www.cbc.ca/story/canada/national/2005/02/13/walmart-quebec050213.html; Luis Millan, Wal-Mart wins appeal in Quebec union dispute. The Lawyers Weekly, February 29, 2008; http://www.lawyersweekly.ca/index.php?section=article&articleid=626; Birger, J. “The Unending Woes of Lee Scott.” Fortune, January 22, 2007, pp. 118–22; Bernstein, A. “Wal-Mart vs. Class Actions.” BusinessWeek, March 21, 2005, pp. 73–74; Daniels, C. “Wal-Mart’s Women Problem.” Fortune, July 12, 2004, p. 28; Marquez, J. “Wal-Mart Puts on a New Face.” Workforce, August 14, 2006, pp. 29–34; Schlender, B. “Wal-Mart’s $288 Billion Meeting.” Fortune, April 18, 2005, pp. 90–106; M. Boyle, “Wal-Mart: Desperately Seeking Ethics,” Fortune, March 7, 2006; P. Gogoi, “Wal-Mart’s Latest Ethics Controversy,” BusinessWeek, June 13, 2007; P. Gogoi, “Wal-Mart: A Reputation Crisis,” Business Week; October 31, 2006; P. Gogoi, “Wal-Mart’s Political Payouts,” BusinessWeek, September 29, 2006, www.businessweek; N. Vardi, “Would Sam Be Proud?” Forbes, May 3, 2007; Wal-Mart Canada website, www.walmart.ca. Questions: 7.1 How has Wal-Mart’s trustworthiness been affected? Can Wal-Mart recover from so many negative events and publicity? Explain. Answer: Wal-Mart’s trustworthiness has gone down, and this, in turn, has created a negative impact on Wal-Mart’s bottom line. When customers read stories about how poorly Wal-Mart treats its employees, they start to feel guilty about shopping there, and that leads to reduced sales. Wal-Mart’s actions are likely to affect cognition-based trust. Trustworthiness, once lost, is difficult to gain back again, but if Wal-Mart can demonstrate its benevolence, it may be able to do so. 7.2 Poor ethics do not hinder the performance of a large corporation like WalMart. Do you agree? Explain. Answer: Most students will disagree with this statement. While unethical behaviours may remain hidden longer in a very large organization like Wal-Mart, eventually they will be discovered, and they will influence the entire organization, no matter what its size. I disagree. Poor ethics can harm a corporation's reputation, affect employee morale, and lead to legal or financial repercussions, ultimately impacting long-term performance despite short-term success. EXERCISE: UNETHICAL BEHAVIOUR Instructions: Have students read the scenario in step 7.1. It’s important that they not skip ahead and read 7.3, so impress upon them to just do step 7.1. Once they’ve read the scenario, put the students in groups and have them come to consensus on three ideas for reducing employee theft at The Grocery Cart. Have them write the behaviours on the board, making sure to leave a bit of space for additional writing later. Sample Ideas: Here’s an example of the kinds of ideas students might come up with for reducing employee theft. 0. Install cameras in stockroom 1. Post warnings about the consequences of being caught stealing 2. Offer store-level incentives for theft reduction Next Steps: Now have students read the continuation of the scenario in 7.3. In the context of Figure 7-6, this added information paints the situation at The Grocery Cart as a case of a “bad barrel”, not just some “bad apples.” Theft seems to be a reaction to distributive and interpersonal injustices, much like the study described in Figure 7-5. It also seems to be fostered by a culture of poor ethics, with managers themselves committing or sanctioning unethical actions. Some groups will have focused on Drew in their original ideas. Those groups may or may not add any additional ideas to what they’ve written on the board. Other groups won’t have focused on Drew, however, so they’ll add some ideas to their original three. Those ideas could include: 3. Fire Drew 4. Ensure that the pay levels for Grocery Cart employees are competitive Questions: If you examine the ideas that the groups wrote on the board, you’ll typically see that the ideas are geared toward moral intent. The employees at the grocery cart are not sufficiently motivated to do the right thing. It’s not clear that theft will be punished, and there’s no clear incentive to help keep other employees in line. In fact, the employees actually seem to be incented to do the wrong thing, as they may be underpaid, they are the victim of disrespectful communication, and they are able to model their boss doing it. Given that, ideas that focus on increasing moral intent (cameras, warnings, incentives, better treatment of employees) will be quite common. One way to structure class discussion is to challenge students to come up with ideas that address the moral awareness or moral judgment portions of Figure 7-6. For moral awareness, The Grocery Cart could hold a training session on the bottom-line costs of employee theft, to make the issue have more moral intensity. They could also prioritize moral attentiveness in their hiring process, either through interviews or personality testing (see the discussion of integrity testing in Chapter 9). For moral judgment, The Grocery Cart could gear a training session toward moral development, getting the employees to view theft from a more sophisticated set of moral principles (e.g., ethics of duties, ethics of rights, virtue ethics). OMITTED TOPICS The field of organizational behaviour is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this 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. • Equity Theory – The dominant theory for explaining how individuals form perceptions of distributive justice. The theory argues that individuals compare their ratios of outcomes to inputs to those of a comparison other, feeling “equity distress” whenever those ratios are imbalanced. This theory is covered in our discussion of motivation in Chapter 6. • Psychological Contract – An employee’s belief about what he/she owes the company and what the company owes him/her. Differences in psychological contracts are very similar to differences in exchange relationships (as in the discussion of social vs. economic exchanges). Psychological contracts are covered in our discussion of commitment trends in Chapter 3. Chapter 8 Learning and Decision Making CHAPTER OVERVIEW This chapter identifies the importance of both tacit and explicit knowledge, and how they are acquired in an organization and used to make various types of organizational decisions. Programmed and non-programmed decision making is discussed, along with the factors that inhibit effective decision making, such as limited information, faulty perceptions, faulty attributions, and escalation of commitment. LEARNING OUTCOMES After reading this chapter, you should be able to answer the following questions: 8.1 What is learning, and how does it affect decision making? 8.2 What types of knowledge can employees gain as they learn and build expertise? 8.3 What are the methods by which employees learn in organizations? 8.4 What two methods can employees use to make decisions? 8.5 What decision-making problems can prevent employees from translating their learning into accurate decisions? 8.6 How does learning affect job performance and organizational commitment? 8.7 What steps can organizations take to foster learning? CHAPTER OUTLINE I. Learning and Decision Making A. Learning reflects relatively permanent changes in an employee’s knowledge or skill that result from experience B. Decision making is the process of generating and choosing from a set of alternatives to solve a problem II. Why Do Some Employees Learn to Make Decisions Better Than Others? A. Expertise refers to the knowledge and skills that distinguish experts from novices and less experienced people – these differences are almost always a function of learning B. Types of Knowledge 1. Explicit Knowledge – information that can be communicated verbally or in writing 2. Tacit Knowledge – information that is gained from experience Try This! Ask students to raise their hand if they consider themselves to be experts at something. Maybe you have expert musicians or athletes in the class, or maybe students are experts at certain hobby or task-related activities. Then ask some of the experts to explain how to do their skill to students who are novices at that activity. Are they able to articulate the tacit knowledge that they may have taken for granted? C. Methods of Learning 1. Reinforcement – people learn by observing the link between voluntary behaviour and the consequences that follow it a. Operant Conditioning Components i. Antecedent – condition that precedes behaviour ii. Behaviour – action performed by employee iii. Consequence – result that occurs after behavior b. Contingencies of Reinforcement i. Positive Reinforcement – positive outcome follows a desired behaviour, increasing the likelihood that the behaviour will appear again a.) To be successful, employee must see direct link between behaviour and reward ii. Negative Reinforcement – unwanted outcome is removed following a desired behaviour, increasing the likelihood that the behaviour will appear again iii. Punishment – unwanted outcome follows an unwanted behaviour, decreasing the likelihood that the behaviour will appear again iv. Extinction – no consequence (either positive or negative) to a behaviour, which decreases the likelihood that the behaviour will appear again c. Schedules of Reinforcement i. Continuous reinforcement – specific consequence follows each and every occurrence of a desired behaviour ii. Fixed interval schedule – workers rewarded after a certain amount of time, and time between reinforcement stays the same iii. Variable interval schedule – workers rewarded after a certain amount of time, and time between reinforcement varies iv. Fixed ratio schedule – behaviours reinforced after a certain number of them have been exhibited v. Variable ratio schedule – people are rewarded after a varying number of exhibited behaviours vi. Variable schedules lead to higher performance than fixed schedules, but variable schedules are not always appropriate for work rewards (e.g. pay checks) 2. Observation a. Social learning theory says that people in organizations learn by watching others b. Behavioural modeling involves observing the actions of others, learning from what is observed, and then repeating the observed behaviour (Figure 8-3) c. Four steps are involved in behavioural modeling: i. Attentional processes – learner must notice critical behaviours ii. Retention processes – learner must remember critical behaviours iii. Production processes – learner must reproduce critical behaviours iv. Reinforcement processes – learner must be rewarded for exhibiting critical behaviours OB on Screen: Harry Potter and the Order of the Phoenix. If you have access to this movie, please play it for your students during class. This scene depicts Harry Potter, Hermoine Granger, and Ron Weasley gathering together for a meeting with a group that becomes known as “Dumbledore’s Army”. This group decides (against the formal wishes of the School) to let Harry teach them how to use spells. The clip shows the group come to a consensus, find a place to practice, and begin. It also includes a cutaway scene in Professor Umbridge’s class where she tries to make them learn solely out of a book (no wands). The scenes provide a case study about how individuals learn using different methods. One topic for class discussion is how different forms of information can be transferred. How does Harry use reinforcement and observation to teach his fellow students? What aspects of OB can really be taught through a book and which need to be learned through working? Are there aspects of the student’s major that will never be learned in school? If one really wanted to take a risk, you might ask them why they get so much out of movie clips instead of simply reading about a topic in a book. Try This! Use the Harry Potter clip for a different chapter. The act of casting spells requires a number of the abilities in Chapter 9 on Ability, including verbal ability, spatial ability, and psychomotor abilities. If spells are being cast during times of danger, then emotion regulation and use of emotions would also become important. Harry’s emergence as a leader can be explained using concepts from Chapter 11 on Power, Influence, and Negotiation. He possessed expert power because he had experience using spells in combat, and he possessed referent power because of his past exploits. That’s in contrast to Professor Umbridge, who possessed only organizational power through her title. The clip also provides insights into the organizational culture at Hogwarts. Umbridge uses observable artifacts, in the form of the ever more prevalent decrees posted on the walls, to create a high solidarity culture where everyone acts alike. Harry’s group therefore serves as a counterculture that rebels against Umbridge’s efforts. Bonus OB on Screen (from 1st ed): Star Trek: First Contact. Chapter 13 of the DVD (beginning at 31:11 and ending at 32:47 for a total running time of 1 minutes, 36 seconds) depicts Data, an android (robot) with an “emotion chip” that can be turned on and off depending on the needs of the situation. In this scene, Captain Picard asks Data to turn off his emotion chip because the situation is dangerous and completely rational decision making is needed. One topic for class discussion is whether all decisions should be made rationally, even if it were possible to do so. Does emotion add something beneficial to decision making? Under what circumstances is emotional decision making desirable and under what circumstances is purely rational decision making desirable? 3. Goal Orientations – affect learning behaviours and outcomes a. Learning orientation – building competence is seen as more important than demonstrating competence i. Improves self-confidence, feedback-seeking behaviour, learning strategy development, and learning performance b. Performance-prove orientation – focus is on demonstrating competence so others will think favorably of the performer c. Performance-avoid orientation – focus is on demonstrating competence so other will not think unfavorably of the performer OB Assessments: Goal Orientation. This brief assessment will allow your students to determine their own goal orientation. 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. Ask students how especially high and low levels of learning orientation impact the kinds of classes students sign up for, and the way they approach those classes. Then ask the same kinds of questions about performance-prove and performance avoid orientations. D. Methods of Decision Making 1. Programmed Decisions a. Decisions that become somewhat automatic because a person’s knowledge allows him or her to recognize and identify a situation and the course of action that needs to be taken i. Often made using intuition – an emotionally charged judgment that arises through quick, unconscious, and holistic associations 2. Non-Programmed Decisions a. Decisions made in situations that are new, complex, and not recognized b. Non-programmed decisions are best made using the rational decision-making model i. Determine the appropriate criteria for making a decision ii. Generate a list of available alternatives iii. Evaluate the alternatives against criteria iv. Choose the solution that maximizes value v. Implement appropriate solution vi. Determine whether or not the solution delivers the expected outcome c. Rational decision-making model does not take into account that people are not always rational E. Decision-Making Problems 1. Limited Information a. Bounded rationality – decision makers do not have the ability or resources to process all available information and alternatives to make an optimal decision b. Satisficing – decision makers often use the first acceptable alternative they encounter, rather than evaluating all alternatives to see which one is best 2. Faulty Perceptions a. Selective perception – people see only those things in the environment which affect them and are consistent with their expectations b. Projection bias – people project their own thoughts, attitudes, and motives onto other people c. Social identity theory – people identify themselves by the groups to which they belong and perceive and judge others by their group memberships d. Stereotypes – occur when people make assumptions about others on the basis of their membership in a social group e. Heuristics – simple, efficient, rules of thumb that allow people to make decisions more easily i. availability bias – the tendency for people to base their judgments on information that is easier to recall 3. Faulty Attributions a. Fundamental Attribution Error – people have a tendency to judge others’ behaviours as due to internal factors i. self-serving bias suggests that people attribute their own failures to external factors, and their own successes to internal factors OB Internationally. This box examines the role biases play in assigning blame for major corporate accidents or breaches of ethics. Note especially the role culture plays in determining who will be blamed for the problem – for example, in an individualistic culture, a single person will get the blame, while in a collectivistic culture, the entire organization accepts the blame. ii. Decisions about the causes of behaviour are linked to three judgments: a.) Consensus – Did others act the same way under similar situations? b.) Distinctiveness – Does this person tend to act differently in other circumstances? c.) Consistency – Does this person always do this when performing the task? 4. Escalation of Commitment a. Refers to the decision to continue to follow a failing course of action F. Summary: Why Do Some Employees Learn to Make Decisions Better Than Others? (Figure 8-6) III. How Important Is Learning? A. Learning has a moderate positive effect on job performance B. Learning has a weak positive effect on commitment IV. Application: Training A. Organizations can improve learning by training, a systematic effort to facilitate the learning of job-related knowledge and behaviour Try This! Ask students to share training experiences they’ve had in jobs that they’ve held. What method of instruction was used to impart explicit knowledge and tacit knowledge? What did the organizations do that was effective and what did they do that was ineffective? B. Companies are heavily focused on knowledge transfer from older, experienced workers to younger, inexperienced workers 1. Behavioural modeling training, pairs experienced workers with inexperienced workers so the inexperienced workers can observe and learn from the more skilled employees 2. Communities of practice are groups of employees that work together and learn from one another by collaborating over an extended period of time C. The success of organizational training depends on transfer of training – when the knowledge, skills, and abilities gained in a class are actually used by the employee back on the job 1. Transfer of training is fostered when organizations create a climate for transfer – an environment that can support the use of new skills DISCUSSION QUESTIONS 8.1 In your current or past workplaces, what types of tacit knowledge did experienced workers possess? What did this knowledge allow them to do? Answer: Answers will vary from student to student, but for example, an experienced marketing professional might know whether or not an ad campaign would work just by glancing at it. This would enable him or her to tell whether or not the company should pitch a particular campaign to a client. In past workplaces, experienced workers often possessed tacit knowledge such as: 1. Problem-solving skills: They could address complex issues with intuition and experience, often finding solutions that were not explicitly documented. 2. Technical expertise: Hands-on skills and understanding of tools or processes that were acquired through practice rather than formal training. 3. Interpersonal skills: The ability to navigate workplace dynamics and build effective relationships with colleagues. 4. Industry insights: Knowledge about market trends, customer preferences, or competitive strategies that wasn’t easily accessible in written reports. This tacit knowledge allowed them to make informed decisions, mentor others, improve processes, and adapt to new challenges effectively. 8.2 Companies rely on employees with substantial amounts of tacit knowledge. Why do companies struggle when these employees leave the organization unexpectedly? What can companies do to help ensure that they retain tacit knowledge? Answer: Companies struggle when employees with tacit knowledge leave because tacit knowledge isn’t typically written down, and it is something that is difficult to transfer from one person to another without extensive interaction and observation. Companies can implement mentoring programs and techniques such as behaviour modeling training and communities of practice to transfer tacit knowledge before it is lost. 8.3 What does the term “expert” mean to you? What exactly do experts do that novices don’t? Answer: An expert is someone with exceptional knowledge or skills. Experts see problems differently and offer different solutions than novices do. Experts are often able to see how many things fit together, and they can see the “big picture” more clearly than those with less experience do. Experts are able to deal with harder, more complex problems than novices can handle, and they typically solve problems more quickly than someone with less skill. 8.4 Given your occupational choice, how do you expect to learn what you need to know when you start working? Do you expect the company to provide you with these opportunities, or will you have to seek them out on your own? Answer: Again, student answers will differ, but students should expect to keep learning for the duration of their careers, using both company- and individually-provided resources. Most companies expect students to have basic skills when they arrive – then the company will train the new employee on proprietary tools and techniques. In addition, continuous improvement and learning is key for a successful career. As part of the discussion for this question, you may want to find out how many students are taking your class now as part of a company-sponsored initiative. It can also be interesting to discuss the company regulations associated with paying for college courses – do students have to get a certain grade, are they only allowed to take certain courses, etc.? In my role, I expect to learn through a combination of company-provided resources and self-directed efforts. While the company will likely offer training programs, mentorship, and on-the-job learning opportunities, I also plan to seek out additional knowledge through professional development courses, industry research, and networking to stay ahead and continuously grow in my field. 8.5 Do you consider yourself a “rational” decision maker? For what types of decisions are you determined to be the most rational? What types of decisions are likely to cause you to behave irrationally? Answer: Most people do consider themselves to be rational decision makers – very few of us actually believe that we make the kinds of decision errors suggested in this chapter of the text. The exercise at the end of this chapter can be an eye-opening experience for students who believe that they make all of their decisions rationally. 8.6 Given your background, which of the decision-making biases listed in the chapter did you most struggle with? What could you do to overcome those biases to make more accurate decisions? Answer: Again, this answer will vary from student to student, but most people will benefit from taking more time to determine what the problem is before solving it, and to identify additional solutions prior to picking the one that they want to use. If students are managers, they should be well aware of the impact the fundamental attribution error has on performance reviews, but they should also know that simply being aware of the problem can go a long way towards solving it. Given my background, I most struggled with confirmation bias, where I tended to favor information that supported my preexisting beliefs. To overcome this bias, I could actively seek out diverse perspectives, question my assumptions, and use data-driven decision-making processes to ensure a more balanced and objective analysis. CASE: LINDSEY MOSER Questions: 8.1 How does the organization facilitate learning of tacit knowledge? Answer: As Lindsey correctly assessed it was critical for her to acquire and master the tacit knowledge necessary to be an effective professional accountant. KMPG, in this case, facilitated this type of learning among the new recruits through its socialization and job-assignment process, informal feedback and social reinforcement (via team leaders and partners), and by providing ample opportunities for CA students to observe desirable professional behaviours (observational learning). Students in the class who have served co-op placements in accounting firms may have other insights into how tacit knowledge is learned. 8.2 What kind of decision is Lindsey currently faced with? What kind of information should she consider? What area the risks that may lead to a poor choice? What do you think she will do? Answer: Lindsey is faced with a non-programmed decision, in the sense that she has likely never encountered anything like this before. The prescribed decision making process is as follows (see Figure 8-4). First, she needs to carefully define and understand the problem. Lindsey then needs to determine the decision criteria – in other words, how will she know if a correct decision is made? What defines success in this decision context? Next, a number of solution alternatives need to be generated that address the problem as defined in Step 1. Each of these should then be evaluated against the decision criteria. On the basis of this evaluation, the solution alternatives are prioritized and one is selected. The next step is the hardest part, implementation. She needs to act on her decision, and monitor the implementation process to ensure the chosen course of action delivers the results she needs to be successful. In short, the nonprogrammed decision calls for a rational process. Of course, many people don’t actually made decisions this way. Too often people, when faced with big personal decisions tend to satisfice. This may result because people have limited information, their perceptions are faulty, or they make mistakes when interpreting cause-effect relationships. Moreover, there are many biases that can creep into the perceptual and attribution processes. All of these factors introduce risk and may lead to a poor choice. What did Lindsey decide to do? She left the firm and is currently working on her doctorate degree in accounting so that one day she can become a professor. BONUS CASE: XEROX If you were a manager in Xerox’s global services division with a question about how to best get something done, you’d have a couple of options at your disposal. You could run up and down the hall asking colleagues for an answer (they might have one for you), or you could try to look it up in a product manual or a written guide of some sort (which probably does not exist). If you could though, wouldn’t it be nice to tap into the knowledge of many people at once who have an expertise in the area of your question? Luckily, many Xerox employees have access to online learning communities that allow them to do just that. Xerox, like many other organizations, including Caterpillar, Raytheon, World Bank, and hundreds more, have developed online “communities of practice” that are designed as workplace learning tools.1 These online communities of practice attempt to put employees with similar jobs, interests, or problems together through social networking, allowing them to take advantage of the collective wisdom of the group or the tacit knowledge of a highly experienced member. Xerox is in the middle of a three-year process of developing and implementing various online learning communities for employees in vital positions.2 These online communities give employees a means to share the types of information that they couldn’t find in a book or procedural manual, and would instead have to learn from experience on the job. In essence, they take the unwritten knowledge (or human capital) that Xerox employees possess and provide a conduit to other employees who need that information to perform their jobs effectively. These types of online social networking tools are perhaps most useful in passing information between employees who might be geographically dispersed.3 Their value doesn’t end with the sharing of job information, however. Gary Vastola, Xerox’s vice president of learning and development, states that “The communities also provide a clear roadway to career growth by mapping out expectations.”4 -Communities of practice can take many shapes, including faceto-face meetings, online bulletin boards, blogs, or even wikis (i.e., software that allows users to edit or create Web pages). The cutting edge for Xerox at the moment is an experiment with virtual worlds in which coworkers can do everything from holding brainstorming sessions to practicing presentations online.5 These virtual worlds allow employees to create representations of themselves (see this chapter’s opening picture) and interact with one another remotely. These sorts of tools have allowed the managing principals at Xerox to communicate with one another across areas of the company, which helps take them out of the silos created by their own business lines.6 Although many of these online communities are geared toward managerial level employees, Xerox’s “Eureka” system, which operates among the community of repair technicians, saves the company perhaps millions of dollars a year in repair costs by allowing them to pass along information.7 Putting these communities of practice together is not as easy as -throwing together a bulletin board though. The planning process usually evolves over a three-month timeframe, beginning with meetings between learning leaders and executives.8 They key to success is determining what types of information employees might need and how they search for that information. Xerox realizes that as its workforce comes and goes, the information these workers possess becomes an increasingly valuable commodity that can be retained only through knowledge sharing and management. Many other companies believe the same thing; nearly two-thirds of large organizations rely on knowledge sharing between employees and employ various forms of communities of practice.9 One of the major factors behind the push for knowledge sharing in companies is the large group of older workers in the baby boom generation who will soon be retiring and taking their tacit knowledge with them. Companies want these older workers to mentor and interact with younger workers so they don’t lose that knowledge. However, a recent annual World of Work survey reveals that the four generations that currently appear in the U.S. workforce actually interact very little.10 Much of the reason has to do with faulty perceptions. Eric Buntin, managing director of marketing and operations for Atlanta–based Randstad USA, finds that “Stereotyping is real. If Gen X’ers think their baby boomer colleagues are less flexible—even if they’re not—they believe it.”11 Xerox and other companies are banking on knowledge sharing practices, such as communities of practice, to help bridge this gap between generations. Such knowledge sharing becomes even more important as the type of work life that Xerox employees can expect to see evolves. Xerox has hired ethnographers to follow workers as they go about their daily work lives. Although not complete, this research likely will show that Xerox workers live in a strongly project-based environment in which they interact and have relationships with their coworkers for short periods of time and then must move on to the next project.12 This environment clearly makes natural mentoring relationships between employees extremely difficult, and it doesn’t help with traditional forms of knowledge sharing. However, Xerox has launched a mentoring program, run by an employee caucus group known as The Women’s Alliance, that has developed an online mentor–mentee matching program to help women find more experienced, effective mentors.13 Anne Mulcahey, the outgoing CEO, was one of the founders of the group. Endnotes: 8.1 Salopek, J.J. “Knowledge in -Numbers.” T+D, July, 2008, pp. 24–26. 8.2 Kranz, G. “At Xerox, Learning Is a Community Activity.” Workforce Management, December, 2008, http://www.workforce.com/archive/feature/26/05/23/index.php?ht (accessed May 25, 2009). 8.3 Ibid. 8.4 Ibid. 8.5 Agnvall, E. “Hitchhiker’s Guide to Developing Leaders.” HR Magazine, September, 2008, pp. 121–24. 8.6 Kranz, “At Xerox.” 8.7 Thurm, S. “Companies Struggle to Pass on Knowledge that Workers Acquire.” The Wall Street Journal, January 23, 2006, p. B1. 8.8 Kranz, “At Xerox.” 8.9 Ibid. 8.10 Randstad USA. “2008 World at Work,” http://www.us.randstad.com/2008WorldofWork.pdf (accessed May 15, 2009). 8.11 Lawson, M. “Survey Reveals -Alarming Lack of Generational Workplace Interaction.” Workforce Management, July, 2008, http://www.workforce.com/archive/feature/25/68/23/index.php?ht (accessed May 15, 2009). 8.12 Menro, J. “Field Study: The -Evolution of Work.” Fortune 158 (September 2008), p. 223. 8.13 Carvin, B.N. “The Great Mentor Match.” T + D 63 (January 2009), pp. 46–50. Questions: 8.1 Are communities of practice, which tend to be technology based, likely to bridge the generation gap and allow knowledge sharing between the generations of employees at Xerox? Explain. Answer: Communities of practices, as a heavily technology based method of passing along information, might be problematic for passing along information from an older workforce. However, Xerox has always been a highly technological oriented company so its chances might be substantially better than the average company. 8.2 Given these generational issues and the type of work life that Xerox employees tend to have, can you think of another possible way to encourage knowledge sharing within the organization? Answer: Formal apprenticeship and mentoring programs have been proven to be highly effective under these types of situations. Forcing employees from different generations to sit on the same project teams and interact with one another is another way to begin to break down the fact that the two groups don’t typically interact with one another. 8.3 How might Xerox attempt to break down the perceptions and stereotypes that exist between generations and thus help the knowledge sharing process? Answer: Training programs on understanding diversity as well as finding ways to show each group that the other is really not as different as they think they are would be useful. For the most part though, forcing some type of interaction between the groups is really the most useful method of breaking down such stereotypes. EXERCISE: DECISION-MAKING BIAS Answers to Questions in Text: A. Because probabilities are not linked, you have to consider each hospital as a separate entity, and each day as a separate occasion. Sampling theory entails that the expected number of days on which more than 60 percent of the babies are boys is much greater in the small hospital than in the large one, because a large sample is less likely to stray from 50 percent. B. In prior studies 85% of respondents choose option b. The “more likely” answer though mathematically is clearly option a. The probability of two events occurring together is always less than or equal to the probability of either occurring alone. (If b is true, a must be true by definition. However, if a is true, b does not have to be true.) People who answer b fall prey to the representativeness heuristic because b seems more representative of Linda based on the description of her. C. 41% This question requires that you think about underlying probabilities, and is a good example of the impact of representativeness bias on decision making, since most students answers will range from 50% to 80% probability that the cab was correctly identified as Blue. The correct answer, found using Bayes’ theorem, is lower than these estimates: • There is a 12% chance (15% times 80%) of the witness correctly identifying a blue cab. • There is a 17% chance (85% times 20%) of the witness incorrectly identifying a green cab as blue. • There is therefore a 29% chance (12% plus 17%) the witness will identify the cab as blue. • This results in a 41% chance (12% divided by 29%) that the cab identified as blue is actually blue. D. Most students will pick “a” in Decision I and “b” in Decisions II and III, not realizing that statistically, all of these choices are equal. This is an excellent example of framing, where the way in which a question is asked influences the decision a person makes. Kahneman and Tversky found that when questions were framed positively (a sure win), people were less likely to take risks, but when questions were framed negatively (a sure loss), people were more likely to take risks, even if the risk in both cases was the same. E. Most students will answer “no” to E-a, but “yes” to E-b, again, not realizing that the two choices are exactly equal from a rational point of view. In both cases, the person who chooses to buy a new ticket will be down $80 by the end of the evening. The difference is the perception that one has spent $80 on buying the same ticket twice, versus spending $40 on a ticket and simply losing the other $40. This is a good place to discuss escalation of commitment, as well as sunk costs. F. surgery The trick here is looking at the probability of survival at the end of the treatment, not just looking at initial survival probabilities. Show students that this same question can also be asked in the following way: Would you choose surgery, which has a 44% probability of survival at the end of five years, or radiation, which has a 22% probability of survival at the end of five years? OMITTED TOPICS The field of organizational behaviour is extremely broad and different textbooks focus on different aspects of the field. A brief outline of topics that are not covered in this 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. 1. Team Decision Making – Many of the most important decisions made in organizations are entrusted to teams. Team decision making is affected by a unique set of issues, including the distribution of information within the team and the degree to which the team censors or pressures its members. The factors that affect team decision making accuracy are covered in our discussion of team processes in Chapter 10. 2. Self-Efficacy – One byproduct of the modeling process described by social learning theory is an increase in self-efficacy, a sort of task-specific self-confidence. Self-efficacy is covered in our discussion of motivation in Chapter 6. 3. Ethics in Decision Making – Aside from making accurate decisions, managers must also attempt to make ethical decisions. A model of ethical decision making (including issues such as moral awareness, moral judgment, and moral intent) is included in our discussion of ethics in Chapter 7. 4. Weiner’s Model of Attribution – This model describes how individuals’ attributions for their own success or failure can go on to impact their future self-esteem and performance. For example, the model suggests that successes that are attributed to ability and effort, as opposed to luck, will be associated with strong increases in self-esteem and performance. For more on this, see: Weiner, B. “An Attributional Theory of Achievement Motivation and Emotion.” Psychological Review (1985), pp. 548-73. Solution Manual for Organizational Behaviour: Improving Performance and Commitment in the Workplace Jason A Colquitt, Michael J. Wesson, Jeffery A LePine, Ian Gellatly 9780071051620, 9781259066566