Needed: PeopleCentered
Managers and
Workplaces
Chapter One
McGraw-Hill/Irwin
© 2012 The McGraw-Hill Companies, Inc. All rights reserved.
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
After reading the material in this chapter,
you should be able to:
LO1.1 Contrast McGregor’s Theory X and
Theory Y assumptions about employees.
LO1.2 Contrast human and social capital and
describe three ways you can develop
each.
LO1.3 Explain the impact of the positive
psychology movement on the field of
organizational behavior (OB).
1-2
After reading the material in this chapter,
you should be able to:
LO1.4 Define the term e-business, and explain
its implications for organizational behavior
and managing people.
LO1.5 Describe the four levels of corporate
social responsibility.
LO1.6 Explain at least three ways to improve an
organization’s ethical climate.
1-3
The Field of Organizational Behavior
Organizational
Behavior
 Interdisciplinary field
dedicated to better
understanding and
managing people at
work
1-4
The Human Relations Movement
Legalization of union-management
collective bargaining
Behavioral scientist called more attention to
the human factor
Elton Mayo – Western Electric Hawthorne
study
1-5
The Hawthorne Legacy
Interviews do not support initial conclusions
about positive effect of supportive
supervision
Money, fear of unemployment, managerial
discipline and high quality raw materials
were responsible for high output
1-6
McGregor’s Theory Y
Theory X
assumptions
 pessimistic and
negative, typical of
how managers
traditionally
perceived
employees
1-7
McGregor’s Theory Y
Theory Y
 believed managers could accomplish more
through others by viewing them as selfenergized, committed, responsible, and
creative beings
1-8
McGregor’s Theory X and Theory Y
Table 1-1
1-9
Question?
As a production manager of Great Golf Products
(GGP), Lorena believes that her employees are
capable of self-direction and self-control. She also
believes that they are committed to Titanium's
objectives since they are rewarded for doing so.
Lorena can be described as a:
A. Theory X manager.
B. Theory Z manager.
C. Futuristic manager.
D. Theory Y manager.
1-10
The Contingency Approach to
Management
Contingency Approach
 Using management concepts and techniques in
a situationally appropriate manner, instead of
trying to rely on “one best way”
1-11
The Age of Human and Social Capital
Human Capital
 The productive potential of one’s knowledge
and actions
 A present or future employee with the right
combination of knowledge, skills, and
motivation to excel
1-12
The Strategic Importance and Dimensions
of Human and Social Capital
Figure 1-1
1-13
The Age of Human and Social Capital
Social capital
 The productive potential of strong, trusting, and
cooperative relationships
1-14
Question?
The productive potential of strong, trusting,
and cooperative relationships is known as
__________.
A. Learning capacity
B. Social capital
C. Talent engagement
D. Knowledge accessibility
1-15
Ways of Building Your Human and
Social Capital
Table 1-2
1-16
The Positive Psychology Movement
Recommends focusing on human strengths
and potential as a way to prevent mental
and behavioral problems and to improve the
general quality of life
1-17
Positive Organizational Behavior
Positive Organizational Behavior (POB)
 the study and application of positively oriented
human resource strengths and psychological
capacities that can be measured, developed,
and effectively managed for performance
improvement in today’s workplace
1-18
Luthans’s CHOSE Model
Of Key POB Dimensions
Table 1-3
1-19
Question?
Griff believes that he can successfully
perform any assignment that his supervisor
gives him. What POB dimension does he
exhibit?
A.Confidence
B.Hope
C.Optimism
D.Emotional intelligence
1-20
E-Business and Implications for OB and
Managing People
E-business
 using information communication technologies
to facilitate every aspect of running a business
Employers are able to access markets for their
products and services much more easily and
efficiently and over greater distances
1-21
Question?
www.Thinkgeek.com only has a business
presence on the web. This is an example of
a(n) __________.
A.“Brick & Click”
B.“Click & Mortar”
C.E-business
D.Retailer
1-22
Time and Location of Work
The 24/7, everywhere connectivity means that
many employers no longer have dedicated office
space for large percentages of their employees.
Today’s managers need to select workers who
have self-discipline, as well as being able to
measure performance when they cannot directly
observe their workers much of the time.
1-23
Time and Location of Work
Concern is growing that linking to the office
everywhere and anytime means that
workers cannot or will not ever disconnect.
Managers have to be sure their people don’t
succumb to stress and exhaustion from
being constantly tethered to their jobs.
1-24
The Promise and Limits of
Collaboration
Many organizations
collaborating with
outsiders to improve
their problemsolving and
innovation
capabilities.
The question
becomes not only
what to share but
how much and with
whom.
1-25
Web 2.0 Requires Management 2.0
Managers of the future won’t control the
flow of information
Managers will be expected to provide the
means for employees to collaborate and
share information with each other to achieve
common goals
1-26
The Ethics Challenge
Ethics is concerned with right versus wrong,
good versus bad, and the many shades of
gray in-between supposedly black-andwhite issues
1-27
A Model of Global Corporate Social
Responsibility and Ethics
Corporate social responsibility (CSR)
 means that corporations have obligations beyond
shareholders and beyond the bounds of law or
contract.
 challenges businesses to go above and beyond
just making a profit to serve the interests and
needs of “stakeholders,” including past and present
employees, customers, suppliers, and the
countries and communities in which the facilities
are located.
1-28
A Model of Global Corporate Social
Responsibility and Ethics
Economic
globalization
Expanding CSR
expectations
Call for improved
business ethics
1-29
A Model of Global Corporate Social
Responsibility and Ethics
Level 1 – Make a profit consistent with
expectations for international businesses
to fulfill economic responsibility.
Level 2 – Obey the law of host countries as
well as international law to fulfill legal
responsibility.
1-30
A Model of Global Corporate Social
Responsibility and Ethics
Level 3 – Be ethical in its practices, taking
host-country and global standards into
consideration to fulfill ethical
responsibility.
Level 4 – Be a good corporate citizen,
especially as defined by the host
country’s expectations to fulfill
philanthropic responsibility.
1-31
Taking Local Norms and Conduct
into Consideration
National culture
affects how people
think and act about
everything, including
ethical issues
Each culture
requires its own
ethical analysis,
taking local norms
into consideration.
1-32
Ethical Lapses in the Workplace
Lower-level employees regularly witness
common ethical lapses such as lying about
being sick, fudging a report, bullying and
sexual harassment, personal use of
company equipment, and stealing company
property or funds.
1-33
Intense Pressure for Results
Starts Early
Most common is an individual’s own desire
to “look good” for their bosses, which has
been identified as a cause of unethical
behavior in lower- and mid-level employees
and managers.
1-34
Intense Pressure for Results
Starts Early
Managers pressure unethical behavior due to
their own motivations to perform, perceptions
that such behaviors are actually acceptable or
that no consequences will occur, reward
systems that incentivize unethical behaviors,
and/or the physical environment facilitates
such actions
1-35
How to Improve the Organization’s
Ethical Climate
Behave ethically yourself
Screen potential employees
Develop a meaning full code of ethics
Provide ethics training
Reinforce ethical training
Create positions, units, and other structural
mechanisms to deal with ethics
1-36
Five Sources of OB Research Insights
Metaanalyses
Field
studies
Sample
surveys
Laboratory
studies
Case
studies
1-37
A Topical Model for What Lies
Ahead
1-38
Video Case: Starbucks
Why does Starbucks view its social responsibility
activities not as an expense or requirement, but
rather as an “enlightened self-interest”?
What is the benefit for Starbucks in assisting Latin
American farmers in obtaining financing to pay
their pickers?
Why is Starbucks so interested in protecting the
interests of the farmers who supply their
coffee - aren’t there others they could
buy from?
1-39
Video: Pike Place Fish Market
What does it mean at Pike Place Fish to be world famous?
Why does it take some new employees months to
understand this concept?
What role does organizational culture play in Pike Place
Fish’s quest to be world famous? Why are other firms such
as Coffee Bean & Tea Leaf adopting the “fish” philosophy?
How does Pike Place Fish create the context for workers to
reach their maximum potential? What role does
socialization and mentoring play in
creating and nurturing this atmosphere?
1-40