Ch02

Organizational
Behavior, 9/E
Schermerhorn, Hunt, and
Osborn
Prepared by
Michael K. McCuddy
Valparaiso University

John Wiley & Sons, Inc.

Chapter 2 Study Questions

 What is a high-performance organization?
 What is multiculturalism, and how can
workforce diversity be managed?
 How do ethics and social responsibility
influence human behavior in
organizations?
 What are key OB transitions in the new
workplace?

Organizational Behavior: Chapter 2
2

Study Question 1: What is a high-
performance organization?
 High-performance organizations.
– Value and empower people, and respect diversity.
– Mobilize the talents of self-directed work teams.
– Use cutting-edge technologies to achieve success.
– Thrive on learning and enable members to grow and
develop.
– Are achievement-, quality-, and customer-oriented, as
well as being sensitive to the external environment.

3

 Stakeholders.
– The individuals, groups, and other
organizations affected by an
organization’s performance.
 Value creation.
– The extent to which an organization
satisfies the needs of strategic
constituencies.
4


5

 Total quality management (TQM).
– A total commitment to:
• High-quality results.
• Continuous improvement.
• Customer satisfaction.
– Meeting customers’ needs.
– Doing all tasks right the first time.
– Continuous improvement focuses on two questions:
• Is it necessary?
• If so, can it be done better?

6

 Human capital.
– The economic value of people with job-relevant
abilities, knowledge, ideas, energies, and
commitments.
 Knowledge workers.
– People whose minds rather than physical capabilities
create value for the organization.
 Intellectual capital.
– The performance potential of the expertise,
competencies, creativity, and commitment within an
organization’s workforce.
7

 Empowerment.
– Allows people, individually and in groups, to
use their talents and knowledge to make
decisions that affect their work.
 Social capital.
– The performance potential represented in the
relationships maintained among people at
work.

8

 Learning and high-performance cultures.
– Uncertainty highlights the importance of
organizational learning.
– High-performance organizations are designed
for organizational learning.
– A learning organization has a culture that
values human capital and invigorates learning
for performance enhancement.

9


10

Study Question 2: What is multi-culturalism,
and how can workforce diversity be managed?

 Workforce diversity.
– Describes differences among people with respect to
age, race, ethnicity, gender, physical ability, and
sexual orientation.
 Multiculturalism.
– Refers to pluralism and respect for diversity and
individual differences in the workplace.
 Inclusivity.
– The degree to which the organization’s culture
respects and values diversity.

11


 Diversity biases in the workplace.
– Prejudice.
– Discrimination.
– The glass ceiling effect.
– Sexual harassment.
– Verbal abuse.
– Pay discrimination.

12


13

 Managing diversity.
– Developing a work environment and organizational
culture that allows all organization members to reach
their full potential.
 A diversity mature organization is created when:
– Managers ensure the effective and efficient utilization
of employees in pursuit of the corporate mission.
– Managers consider how their behaviors affect
diversity.
 Well-managed workforce diversity increases
human capital.
14

Study question 3: How do ethics and
social responsibility influence human
behavior in organizations?
 Ethical behavior.
– “Good” or “right” as opposed to “bad”
or “wrong” in a particular setting.
 The public demands that people in
organizations act according to high
moral standards.

15

 Immoral managers.
– Do not subscribe to any ethical principles;
pursuit of self-interest.
 Amoral managers.
– Ethics is simply not on this manager’s “radar
screen.”
 Moral managers.
– Incorporate ethical principles and goals into
their personal behavior .
16

Study question 3: How do ethics and social
responsibility influence human behavior in
organizations?

17

 Ways of thinking about ethical behavior.
– Utilitarian view –– the greatest good for the
greatest number of people.
– Individualism view –– best serving long-term
self-interests.
– Moral-rights view –– respects and protects the
fundamental rights of all human beings.
– Justice view –– fair and impartial in the
treatment of all people.
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 Different types of justice.
– Procedural justice –– properly following rules
and procedures in all cases.
– Distributive justice –– treating people the
same under a policy, regardless of
demographic differences.
– Interactional justice –– treating people
affected by a decision with dignity and
respect. Organizational Behavior: Chapter 2
19

Study question 3: How do ethics and social
responsibility influence human behavior
in organizations?
 Ethical dilemmas.
– Occur when someone must choose
whether or not to pursue a course of
action that, although offering the
potential of personal or
organizational benefit or both, may
be considered unethical.
20

 Rationalizations for unethical behavior.
– Pretending the behavior is not really unethical
or illegal.
– Saying the behavior is really in the
organization’s or person’s best interest.
– Assuming the behavior is acceptable if others
don’t find out about it.
– Presuming that superiors will support and
protect you.
21

 Organizational social responsibility.
– The obligation of organizations to behave in
ethical and moral ways as institutions of the
broader society.
– Managers should commit organizations to:
• Pursuit of high productivity.
• Corporate social responsibility.
– A whistleblower exposes others’ wrongdoings
in order to preserve high ethical standards.
22

Study question 4: What are key OB
transitions in the new workplace?
 Corporate governance and ethics
leadership.
– Society expects and demands ethical decisions
and actions from businesses and other social
institutions.
– Corporate governance.
• The active oversight of management decisions,
corporate strategy, and financial reporting by
Boards of Directors.
23

 Corporate governance and ethics
leadership (cont.).
– Ethics leadership.
• Making business and organizational decisions with
high moral standards that meet the ethical test of
being “good” and not “bad,” and of being “right”
and not “wrong.” .
– Integrity.
• Acting in ways that are always honest, credible,
and consistent in putting one’s values into practice.

24

 Positive organizational behavior.
– Quality of work life.
• The overall quality of human experience in the
workplace.
• Commitment to quality of work life is an important
value within organizational behavior.
• Theory Y provides the theoretical underpinnings
for contemporary quality of work life concepts.

25

 Positive organizational behavior (cont.).
– Positive organizational behavior focuses on
practices that value human capacities and
encourage their full utilization.
– Positive organizational behavior is based on
the core capacities of:
• Confidence.
• Hope.
• Optimism.
• Resilience.

26

 Globalization, job migration, and
organizational transformation.
– Globalization.
• The worldwide interdependence of resource flows,
product markets, and business competition.
– Job migration.
• The shifting of jobs from one nation to another.

27

 Globalization, job migration, and
organizational transformation (cont.).
– Global outsourcing.
• Involves employers cutting back on domestic jobs
and replacing them with contract workers in other
nations.
– Job migration and global outsourcing have
contributed to organizations redesigning
themselves for high performance in a changed
world.
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 Personal management and career planning.
– Shamrock organizations.
• Relatively small core group of permanent, full-
time employees with critical skills.
• Outside operators contracting to core group to
perform essential daily activities.
• Part-timers hired by core group on an as-needed
basis.

29

 Personal management and career planning
(cont.).
– Personal management.
• Understand one’s self, exercising initiative,
accepting responsibility, working well with others,
and continually learning from experience.
– Self-monitoring.
• Observing and reflecting on one’s own behavior
and acting in ways that adapt to the situation.

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