1
ORGANIZATIONAL BEHAVIOR IN CHANGING TIMES
CHAPTER SCAN
This introductory chapter provides an overview of the environment of organizations for these
changing times. It begins by providing an overview of behavior in organizations and the
interdisciplinary origins of that behavior. Next, it describes the organizational context and
presents the six focus organizations (Brinker International, Enron, Harley-Davidson, HewlettPackard, Patagonia, and the American Heart Association). Third, it points out the critical role of
change and challenge, followed by a discussion of how people learn about organizational
behavior. The chapter finishes by relating the various features of the book to learning styles and
outlining the plan for the book.
LEARNING OBJECTIVES
After reading this chapter, you should be able to do the following:
1.
2.
3.
4.
5.
Define organizational behavior.
Identify six interdisciplinary contributions to the study of organizational behavior.
Identify the important system components of an organization.
Describe the formal and informal elements of an organization.
Understand the diversity of organizations in the economy, as exemplified by the six focus
organizations.
6. Recognize the challenge of change for organizational behavior.
7. Demonstrate the value of objective knowledge and skill development in the study of
organizational behavior.
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Chapter 1: Organizational Behavior in Changing Times
KEY TERMS
Chapter 1 introduces the following key terms:
organizational behavior
change
challenge
psychology
sociology
engineering
anthropology
management
medicine
task
people
structure
formal organization
informal organization
Hawthorne studies
total quality management (TQM)
objective knowledge
skill development
THE CHAPTER SUMMARIZED
I.
THINKING AHEAD: Changing Administrations, Business, the Environment, and
Patagonia
II.
HUMAN BEHAVIOR IN ORGANIZATIONS
Chapter one emphasizes the complexity of human behavior and group dynamics in organizations,
and notes the impact of organizational variables. It describes human behavior as orderly and
logical from the perspective of the organization, but stressful and confusing from the individual’s
perspective. A special orientation of this text deals with approaches to learning and application
of the skills necessary to become successful organizational members.
A.
Understanding Human Behavior
Most of the theories and models of human behavior are categorized as either internal
perspectives or external perspectives. Internal perspectives view behavior in terms of
thoughts, feelings, past experiences, and needs of the individual. External perspectives
explain behavior in terms of external events, consequences of behavior, and
environmental forces. Example: "Mary is an excellent employee because she has a high
Chapter 1: Organizational Behavior in Changing Times
3
need for achievement." (internal perspective), or in contrast, "Mary is an excellent
employee because she is paid extremely well for her work." (external perspective).
B.
Interdisciplinary Influences
Because of the complexity of organizations, several fields and disciplines of study have
influenced the field of organizational behavior. Significant influences come from
psychology, sociology, engineering, anthropology, management, and medicine.
Definitions of the disciplines and contributions to organizational behavior are:
Psychology - the science of human behavior - Contributions in motivation, teamwork,
power, leadership, training and development, and human resource planning.
Sociology- the science of society - Contributions in group dynamics, roles, norms, and
standards of behavior.
Engineering - applied science of energy and matter - Contributions in understanding
work design, human productivity and efficiency.
Anthropology - science of human learned behavior – Contributions in understanding
patterns of behavior, organizational culture and organization performance.
Management – originally administrative science – Emphasizes design, implementation
and management of administrative and organizational systems. First discipline to use
organization as unit of analysis.
Medicine - applied science of healing or treatment of diseases - Embraces concerns for
the physical and psychological health of individuals in organizations.
III.
THE ORGANIZATIONAL CONTEXT
To accurately understand organizational behavior, one must first understand of human behavior
and the organizational context – the specific setting in which that behavior occurs.
A.
Organizations as Open Systems
Organizations are systems of interacting components that are not limited to business
structures, but include religious organizations, military organizations, and even family
structures. Leavitt sets forth a basic framework for understanding organizations that
emphasizes four major internal components, task, people, technology, and structure.
These components, along with the organization's inputs, outputs, and key elements, make
up the organizational system. The organizational system, in turn, interacts with its task
environment. Every organization has a task that includes its mission and goals, or
purpose for existing. The people in the organization are the human resources of the
organization. The tools, knowledge, and/or techniques used by the organization
constitute its technology, and the organization’s structure includes the design of work,
departments, divisions, and the overall organization. Organizations receive inputs,
convert them into throughputs, and deliver outputs to customers, consumers and clients in
their task environments.
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Chapter 1: Organizational Behavior in Changing Times
B.
The Formal and Informal Organization
Organizations are combinations of formal and informal components. The formal
organization includes the legitimate and official portions of organizations, such as
policies, titles of organizational members, reporting lines, and performance appraisals.
An outgrowth of the Hawthorne studies, the informal organization includes people's
feelings, thoughts, and attitudes about their work, as well as their social interactions, and
how these factors affect their behavior and performance. Intervention activities designed
to improve organizational performance often focus on the informal organization, in the
context of the formal organization.
C.
Six Focus Companies
You might want to consider dividing the class into six teams and having one team
examine each company in further detail for class presentations. This approach also helps
students learn the advantages, disadvantages, and difficulties connected with groups and
teamwork. The analysis of the group behavior could coincide with Chapter 9, Work
Teams and Groups.
1. Brinker International
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

Multiconcept casual dining restaurant company
60,000 employees in 1,100+ units in 47 states and 20 countries
More than $1 million contributed to a variety of charities
2. Enron



Commodities provider (for example, steel, forest products, bandwidth)
$101 billion in revenues, $67 billion in assets, 20,000 employees
Named most innovative company in America since mid-1990s
3. Harley-Davidson



Manufacturer of heavyweight motorcycles, financial services provider
$3 billion in net sales of more than 200,000 motorcycles per year by 2000
Harley Owners Group® (H.O.G.®) membership of 600,000 by 2000
4. Hewlett-Packard



Leader in technology and human resource management practices
$41 billion per year, seven product lines, 88,500 employees
First company to formalize telecommuting policies for employees
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5. Patagonia
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Privately held outdoor sports product manufacturing and sales firm
$180 million per year, 1,000 employees
Environmentally conscious; donated over $15 million to date
6. American Heart Association



IV.
Not-for-profit organization dedicated to reducing disability and death from
cardiovascular diseases
Majority of work accomplished by 4.2 million volunteers
$1.5 billion contributed to heart and blood vessel research since 1949
THE CHALLENGE OF CHANGE
Competition has increased dramatically since World War II, creating performance and cost
pressures that impact peoples’ work behavior. However, the outcomes of these competitive
pressures are not inevitably negative. The key is finding a balance between too much change
resulting in chaos, and too little change resulting in stagnation.
A.
International Competition in Business
The increasing pressure of international competition has made globalization of U.S.
corporations a necessity. In addition, it has emphasized the need for employees at all
levels to increase their productivity and add more value to the firm, as cost-cutting
strategies highlight reductions in job security. Some view change as a threat, others view
it as an opportunity. Either way, the substantial impact of these changes on
organizational behavior must be considered.
B.
Four Themes Related to Change
The following chapter addresses four themes, or driving forces, behind change at work:
globalization, technology, diversity, and ethics. Existing theories of motivation,
leadership, and group behavior may need to be revised to account for changing
demographics.
C.
Customer-Focused for High Quality
Quality has become a ‘hot topic’ in organizations when discussing what will make the
organization more competitive. Total quality management (TQM) is defined as
complete dedication to continuous improvement so that the customers' needs are met and
their expectations exceeded.
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Chapter 1: Organizational Behavior in Changing Times
D.
Behavior and Quality at Work
Much of the quality literature is connected with engineering and just-in-time management
techniques. However, many studies have verified that total quality improvement is only
successful when employees have the skills and authority to respond to customer needs.
Consequently, this has direct effects on the behavior of employees. The U.S. has
recognized the value of quality and the Department of Commerce sponsors the annual
Malcolm Baldrige National Quality Award.
E.
Managing Organizational Behavior in Changing Times
Four things make the management of organizational behavior challenging: (1) increasing
globalization of organizations' operating territory, (2) increasing diversity of
organizational workforces, (3) continuing technological innovation and need for
accompanying skill enhancement, and (4) continuing demand for higher levels of moral
and ethical behavior at work.
V.
LEARNING ABOUT ORGANIZATIONAL BEHAVIOR
Because organizational behavior is a combination of abstract ideas and science, it takes a
multidimensional approach to learning. It necessitates a mastery of objective knowledge, which
results from research and scholarly activity. In addition, it requires skill development to
incorporate the knowledge into applications for individuals. Furthermore, it requires the
integration of objective knowledge and skill development to apply them both appropriately in
specific organizational settings.
A.
Objective Knowledge
Objective knowledge is the cognitive mastery of theories, conceptual models, and
research findings developed through basic and applied research. The objective knowledge
in each chapter is reflected in the notes used to support the text material. Critical
thinking, based on knowledge and understanding, facilitates questioning and responsible
application of research.
B.
Skill Development
Skill development is the practice of what is known to be successful in the workplace.
The AACSB, the accrediting body for business schools, is endorsing the concept that
skills can be taught, and that practice improves one's ability as a manager. According to
the Department of Labor, skills essential for workplace success include resource
management skills, information management skills, personal interaction skills, systems
behavior and performance skills, and technology utilization skills. Skill development, as
an active component of the learning process, includes the following:
Chapter 1: Organizational Behavior in Changing Times
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

C.
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each student must accept responsibility for his or her own behavior, actions, and
learning;
each student must actively participate in the individual or group structured learning
activity; and
each student must be open to new information, new skills, new ideas, and
experimentation.
Application of Knowledge and Skills
Experiential learning provides students with the opportunity to practice new approaches
of interaction and skills in the safe environment of the classroom, as opposed to a work
setting with much more serious consequences. Training enables the learner to use
knowledge or skills in specific applications. However, knowing the correct application to
a problem setting is not the same as being able to apply the skills necessary to solve the
problem. In contrast, the education of experiential learning increases the wealth of
knowledge and skills from which the learner can draw in a variety of applications and
problem-solving situations.
VI.
MANAGERIAL IMPLICATIONS: FOUNDATIONS FOR THE FUTURE
VII.
LOOKING BACK: A “Green” Business in More Ways than One
CHAPTER SUMMARY
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





Organizational behavior is individual behavior and group dynamics in organizations.
The disciplines of psychology, sociology, engineering, anthropology, management, and
medicine have contributed to the discipline of organizational behavior.
Organizations are open systems composed of people, structure, and technology committed to
a task.
Organizations have formal and informal elements within them.
Manufacturing organizations, service organizations, privately owned companies, and
nonprofit organizations all contribute to our national well-being.
The changes and challenges facing managers are driven by international competition and
customer demands.
Learning about organizational behavior requires a mastery of objective knowledge and
specific skill development.
REVIEW QUESTIONS: SUGGESTED ANSWERS
1. Define organizational behavior. What is its focus?
Organizational behavior is the study of individual behavior and group dynamics in organizational
settings. Organizational behavior research and theories are developed for applications in
nonprofit as well as for-profit organizations.
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Chapter 1: Organizational Behavior in Changing Times
2. Identify six disciplines relevant to the development of organizational behavior. How does
each contribute?
Psychology - Contributes to understanding motivation, teamwork, power, leadership, training
and development, and human resource planning.
Sociology - Contributes to understanding group dynamics, roles, norms, and standards of
behavior.
Engineering - Contributes to understanding work design, human productivity and efficiency.
Anthropology - Contributes to understanding patterns of behavior, organizational culture and
organization performance.
Management - Emphasizes design, implementation and management of administrative and
organizational systems. First discipline to use organization as unit of analysis.
Medicine - Embraces concerns for physical and psychological health of individuals in
organizations.
3. What is an organization? What are its four system components? Give an example of each.
An organization is a system of people and technology designed to accomplish a goal. The four
components that make up the systems framework are tasks (e.g., mission/purpose), people (e.g.,
employees), technology (e.g., tools and knowledge), and structure (e.g., work design,
organizational design).
4. Briefly describe the elements of the formal and informal organization. Give examples of
each.
Formal elements of an organization include those that are officially recognized and have
legitimacy such as job descriptions and policy manuals. Informal elements are unofficial aspects
of the organization such as values, attitudes, and group norms.
5. Discuss the six focus organizations used in this book.
Brinker International – A multiconcept casual dining restaurant company with a focus on
achievement and concern for the human side of life.
Enron – Commodities provider with over $101 billion in revenues. Named most innovative
company in America since mid-1990s.
Harley-Davidson – Manufacturer of heavyweight motorcycles with over $3 billion in net sales
and membership of over 600,000 in Harley Owners Group® company sponsored motorcycle
club.
Hewlett-Packard – Leader in technology and human resource management practices, with over
88,500 employees. First company to formalize telecommuting policies for its employees.
Patagonia – Privately held outdoor sports product manufacturing and sales firm.
Environmentally conscious, having donated over $15 million to date to environmental concerns.
American Heart Association – Not-for-profit organization dedicated to reducing disability and
death from cardiovascular diseases, with over 4.2 million volunteers. $1.5 billion contributed to
heart and blood vessel research since 1949.
Chapter 1: Organizational Behavior in Changing Times
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6. Describe how competition and total quality are affecting organizational behavior. Why is
managing organizational behavior in changing times challenging?
Dramatic increases in competition since World War II have resulted in the need for organizations
to respond by increasing their focus on quality. This emphasis on quality not only reduces error
rates in production, but also creates a ripple effect on motivation, leadership, followership, and
other aspects of performance in organizations. One of the major outcomes of the quality focus is
the emphasis on service provided by organizations.
DISCUSSION AND COMMUNICATION QUESTIONS: SUGGESTED ANSWERS
1. How do the formal aspects of your work environment affect you? What informal aspects of
your work environment are important?
Students without work experience may prefer to examine the university for formal and informal
environment factors. The formal aspects of the university environment could include the
university bulletin, specific requirements for graduation, and enrollment procedures. Informal
aspects of the university environment could include the power that the student association has on
campus, the norms of dress, and relationships between students and faculty.
2. What is the biggest competitive challenge or change facing the businesses in your industry
today? Will that be different in the next five years?
Students without work experience may wish to consider the university setting to consider
competitive challenges. This list may have items like tuition, work versus advanced education,
job opportunities, or the status of similar universities.
Students with work experience may cite the need to change careers as a reason for returning to
complete their undergraduate degrees. This exemplifies the competitiveness of all environments
and shows how rapidly individuals must change to remain competitive. Many students returning
to school may have considerable experience in a field that is "downsizing".
All businesses face issues regarding increased competition, locally, nationally, and
internationally. Most organizations are dealing with potential ramifications of NAFTA
agreements, for example, as well as changes in the concepts of loyalty and long-term
commitments.
As we continue to solidify the change from a manufacturing society to an information society, the
next five years will see the workforce continue to vary, with greater variety in jobs and careers
than in any previous generation.
3. Describe the next chief executive of your company and what she or he must do to succeed.
Students may prefer to discuss the university president or dean of the college if they do not have
work experience.
10 Chapter 1: Organizational Behavior in Changing Times
One of the discussions that could follow might correlate with current terminology that has
become popular, such as visionary leaders, empowered workforces, and teamwork. Successful
leaders will also need to recognize and understand the impacts of global competition and
economic changes, the need to focus on quality, the importance of a diverse workforce, and the
challenge of managing change.
4. Discuss two ways people learn about organizational behavior.
Learning about organizational behavior requires mastery of objective knowledge, which results
from research and scholarly activities. Objective knowledge can be learned through training. In
addition, it requires skill development and the mastery of abilities that are essential to successful
function in organizations. Skill development is best accomplished through experiential learning.
It may be important to point out that taking one approach exclusively is only half a solution to a
problem solving technique.
5. Which of the focus companies is your own company most like? Do you work for one of these
focus companies? Which company would you most like to work for?
Few students will have work experience with the focus companies. Students who have
experience, if they are still employed, may have a tendency to exaggerate their understanding of
the company, and are probably very positive.
Students with work experience will probably identify the type of service or product that is
provided early in the textbook overview of the companies.
Students may show their inclination for large or small organizations in their answers regarding
the company for which they would prefer working. Additionally, they may show an inclination
for the major they have selected and what they foresee the company doing with this functional
area in their future.
6. Prepare a memo about an organizational change occurring where you work or in your college
or university. Write a 100-word description of the change and, using Figure 1.1, identify how it
is affecting the people, structure, task, and/or technology of the organization.
This is a good opportunity for students to practice writing in a concise, to the point, style. Be
sure that students consider different aspects of people, structure, task, and technology as they
develop the memo.
7. Develop an oral presentation about the changes and challenges facing your college or
university based on an interview with a faculty member or administrator. Be prepared to
describe the changes and challenges. Are these good or bad changes? Why?
Use this as an opportunity to work on oral presentation skills as well as to learn more about
changes and challenges facing organizations. Encourage students to give each other feedback on
Chapter 1: Organizational Behavior in Changing Times
11
the presentation itself as well as the content of the presentation. Compare and contrast the views
of faculty and administrators. Discuss why similarities and differences exist in each group’s
view of changes and challenges.
8. Prepare a brief description of a service or manufacturing company, entrepreneurial venture,
or nonprofit organization of your choice. Go to the library and read about the organization
from several sources, then use these multiple sources to write your description.
Discuss in class the similarities and differences students found between different service,
manufacturing, entrepreneurial, or nonprofit organizations.
ETHICS QUESTIONS: SUGGESTED ANSWERS
1. Suppose two people at work have a personal, informal relationship unrelated to the formal
structure. Further assume their relationship could affect people in the formal organization. As
an aware employee, should you tell the people who are unaware of it and may be affected by the
relationship?
The most direct, positive approach would be to discuss the situation with the two individuals
involved. Most individuals are aware of the potential ramifications of a relationship at work.
Many organizations have policies about dating co-workers, or even dating professionals from
competing organizations. Ask students if they believe this is an invasion of privacy. What do
they perceive as the differences between dating peers, superiors, or subordinates in the
organization?
2. Which disciplines are important in understanding moral and ethical issues for organizations
and management?
Many disciplines have contributed to the understanding of ethical issues. Specifically,
philosophy has provided the basic premises on ethical stands. Psychology, sociology, and
anthropology bring a societal view of what is accepted within a culture. Religion provides a
framework for morals within a value or belief system.
3. Suppose you would be able to beat the competition if you presented a prospective customer
with negative information about the competition's quality program. Should you provide the
information? Further assume that the information relates to safety. Would that make a
difference in whether you told the customer?
The primary message in this question is for the students to begin developing their value
perspectives on what is "fair" competition. To keep the discussion moving, it may be beneficial
for students to tie their opinions to an example. Students will rapidly fall into pro or con
categories that might be helpful to list on the board. This is also a good opening project for
students to debate their views. They might benefit by having a devil's advocate join their group
to argue the opposing position.
12 Chapter 1: Organizational Behavior in Changing Times
4. What are the most sensitive ethical issues in your business, industry, or organization today?
This will vary sometimes depending on the degree of work experience available in the class. It is
interesting to divide the class into problems they see as "real experience problems" versus those
that are picked up in the popular press.
A good approach to discussing issues can be generated by mentioning films such as The Firm,
Trading Places, Glengary GlenRose, and Wall Street. Some of the issues that might be listed are
computer espionage, industrial spying, theft, and environmental concerns.
CHALLENGES
1.1 ANALYZE YOUR PERCEPTIONS OF A CHANGE
Discuss how students’ perceptions of change will affect them, given the rapidly changing nature
of the business environment they will enter after graduation.
1.2 LEARNING STYLE INVENTORY
Discuss how the variety of methods used to stimulate learning of course material (e.g., lectures,
video presentations, case analyses, role-plays, and other experiential exercises) may facilitate
learning for individuals with different learning styles.
EXPERIENTIAL EXERCISES
1.1 What’s Changing at Work?
This exercise enlightens students about the changes occurring in organizations. Encourage teams
to question each other about the legitimacy of the changes identified. A debate could be set up to
generate discussion about whether specific changes are good or bad. Students should consider
both the good and the bad impacts of a particular change.
1.2 My Absolute Worst Job
Purpose: To become acquainted with fellow classmates.
Group size: Any number of groups of two.
Occasionally a student will reveal proprietary information about a company. It might be wise to
preface the discussion by suggesting that students describe the type of job, rather than mentioning
the name of the company.
There are many humorous and bonding examples that have come from this exercise. You might
want to tell the students that there have been a variety of answers. Two of the more extreme
were:
Chapter 1: Organizational Behavior in Changing Times
13
(1) Digging cemetery plots in August in St. Louis. (No explanation was needed why this was not
a "good" job.)
(2) On the committee for a state's inaugural ball, where the governor did not show up until 2:00
a.m.
These are good examples to illustrate that stress is related to behavior and organizational factors,
not just the type of job that an individual fulfills.
Students may also benefit from a discussion of elitism during the de-briefing of this exercise.
Students need to be reminded that although they personally may not want to work at McDonald's
as a career, there are people who plan on making that organization their career.
We need to understand why other people may find what we think of as a "worst job," their ideal
job.
Students may see some positions as "inherently worst jobs." Be sure to clarify that some
individuals may take positions to fulfill financial obligations, and find their personal fulfillment
through other means. The fact that they do not wish to "self-actualize" at work does not
necessarily mean that they are not productive, valuable organizational members.
Recall that not all students will have work experience. It has been my experience that a large
number of international students have little work experience because they go directly from
secondary schools to college. You may need to make some allowances for these students so they
do not feel like they are "in the wrong class because they are inexperienced." They could
contribute by mentioning a job they would least like to do and why they would not want to have
this position.
ALTERNATIVE EXPERIENTIAL EXERCISE
This exercise will give you an opportunity to discuss the elements of a quality learning
environment. The basic question your group will need to answer first is whether good education
provides a service or produces a product.
Creating a Quality Learning Environment
The exercise will give you the opportunity to discuss the elements of a quality learning
environment. The basic question your group will need to answer first is whether good education
provides a service or produces a product. Once you have made that decision, you will be able to
address the questions in Step 2 of the exercise.
Step 1. The class will form into groups of approximately six members. Each group elects a
spokesperson and answers the following question: Does education provide a service or produce a
14 Chapter 1: Organizational Behavior in Changing Times
product? The spokesperson should be prepared to explain the group’s answer to this basic
question during the cross-team exchange.
Step 2. Each group is to generate answers to the following questions. The group should spend
approximately five minutes on each question and make sure that each person has made a
contribution to the group’s response. The spokesperson for each group should be ready to share
the group’s collective responses to those three questions.
a. What are the important characteristics of a high-quality learning environment?
Members should focus on the physical, social, and psychological characteristics of the
environment, as well as on behaviors of the students and instructor.
b. What format results in the best learning? For example, should lectures, debates,
discussion, role-playing, and group activities be included? If so, in what proportions?
c. What problems or obstacles have you encountered previously to a high-quality
learning environment? These may be related to the subject matter, evaluation processes,
workload expectations, or other aspects of the classroom environment.
Step 3. Each group will share the results of its answers to the questions in Steps 1 and 2. Crossteam questions and discussion will follow.
Step 4. Your instructor may allow for a few minutes at the end of the class period to answer
questions about his or her thoughts about the course or professional background and experience.
Be prepared to ask questions at this time.
EXTRA EXPERIENTIAL EXERCISES
The following alternative exercises to supplement the material in the textbook can be obtained
from:
Marcic, Dorothy, Seltzer, Joseph, & Vaill, Peter. Organizational Behavior: Experiences and
Cases, 6th Ed. South Western College Publishing Company, 2001.
Assumptions About People and Organizations. p. 1-4. Time: 25-50 minutes
Purpose: To develop awareness about organizational behavior issues.
What Does Learning Really Mean? p. 43-44.
Time: 45-60 minutes.
Purpose: To increase students’ awareness of the process of learning about human
behavior.
Chapter 1: Organizational Behavior in Changing Times
15
CASE QUESTIONS: SUGGESTED ANSWERS
SERVICEMASTER’S VIEW ABOUT THE PURPOSE OF A BUSINESS
1. From your perspective, what role(s) should business play in the contemporary world?
Multiple perspectives exist concerning the possible roles that businesses can assume. Among
these perspectives are the following:
 A business is a producer of goods and/or a provider of services.
 A business is an economic organization that generates profits and creates
wealth.
 A business is an economic organization that provides employment
opportunities.
 A business is an economic organization that is responsible primarily, if not
solely, to shareholders.
 A business is an organization with multiple responsibilities and multiple
constituencies.
 A business is an instrument of social change.
The students should identify both the roles they think are legitimate for businesses to pursue and
the roles they think are not legitimate. They should examine their reasons for these judgments.
Also, the students should consider whether the appropriateness of these roles might vary
depending on the type of business (e.g., an automobile manufacturer versus a book or magazine
publisher versus a pharmaceutical company, and so forth). The short-term and long-term
implications of each perspective should be explored as well.
Discussion of this question could also be approached from a stakeholder viewpoint. Students
could look through the lens of different stakeholders (e.g., shareholders, employees, customers,
suppliers, the community, etc.) and then discuss how each stakeholder would view the different
roles of business.
2. What implications do ServiceMaster’s vision, mission, and four objectives have for the
attitudes and job behavior of their employees?
ServiceMaster’s vision is: “To be an ever expanding and vital market vehicle for use by God to
work in the lives of people as they serve and contribute to others.” Its mission statement is: “To
create and build value for Shareholders, Customers, and Employees by providing a wide range of
services to homes, institutions, business, and industry, both domestically and internationally
within the framework of our values.” ServiceMaster’s objectives, beginning with the top
priority, are:
 To honor God in all we do.
 To help people develop.
 To pursue excellence.
 To grow profitably.
16 Chapter 1: Organizational Behavior in Changing Times
The reference to God in both the vision statement and the first objective provides clear, if not
compelling, direction for employees with regard to attitudes and behavior. This faith-oriented
value is also reinforced with the mission statement’s emphasis on the company’s values. In
addition, both the order of the objectives and their content have powerful implications for
employees’ attitudes and work behavior.
The vision, mission, and objectives help to foster and reinforce employee attitudes that focus on
valuing people and encouraging respect and dignity for everyone. Attitudes that support fair and
just treatment are encouraged as well. Employees also would be expected to behave in ways that
are consistent with these attitudes.
Putting people before profits communicates the worth of employees to the organization. Putting
employees first reflects the realization that people are assets who have a significant effect on the
corporate bottom line.
3. Would you like to work for a company like ServiceMaster? Why or why not?
This question provides an opportunity for students to examine their personal values regarding the
type of organization for which they would like to work.