THE EMPLOYEE PERSPECTIVE
MGT 420
PERSPECTIVES CORE, SPRING TERM 2013
ROOM A74
INSTRUCTORS
E-MAIL
OFFICE
PHONE
ASSISTANT
GEORGE E.
NEWMAN
432-1046 (office)
george.newman@yale.edu
52
Hillhouse
Room #317
203-668-4851
(emergencies only)
Rhona Ceppos
rhona.ceppos@yale.edu
436-8861
LISA B. KAHN
lisa.kahn@yale.edu
55
Hillhouse
432-5956 (office)
Room #309
SECTION
DATES
TIME
COHORT
1
Mon/Wed
8:30 to 9:50 a.m.
GREEN
TA: ADDIE FRANZ, SARAH SELIM
Addison.Franz@yale.edu, Sarah.Selim@yale.edu
2
Mon/Wed
10:10 to 11:30 a.m.
BLUE
TA: KATIE FISHER, LIBBY STEGGER
Katie.Fisher@yale.edu, Libby.Stegger@yale.edu
3
Mon/Wed
1:00 to 2:20 p.m.
GOLD
TA: EMILY BERGER, LAUREN COAPE-ARNOLD
Emily.Berger@yale.edu, lauren.coape-arnold@yale.edu
4
Mon/Wed
2:40 to 4:00 p.m.
SILVER
TA: LUIS ARIAS-CASTRILLON, AMANDA TURNER
Luis.Arias-Castrillon@yale.edu, Amanda.Turner@yale.edu
Marianne Castellon
marianne.castellon@yale.edu
432-5970
EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
OVERVIEW OF COURSE
On a daily basis, your employees will be confronted with innumerable decisions, each of which
represents an opportunity to take (or not take) actions that support the organization’s goals and
objectives. How your employees act when confronted with these decisions will depend in part on
who they are as individuals — their values, beliefs, and capabilities. It will also depend on
various aspects of the context, such as rewards and incentives, and the degree of connection
between your employees’ actions and outcomes they personally regard as meaningful. Finally, it
will depend on their relationship with you as a manager — whether they accept your authority as
legitimate, find you credible, and come to internalize your objectives and values as their own.
We will focus on each of these factors across three different subsections of the course:

Establishing Employment Relationships. We begin by placing the manager’s relationship
with employees in the broader context of an organization’s hiring strategy. Each member
of an organization brings a unique set of values, preferences, and abilities to the
organization. Successful alignment of employees’ actions and organizational goals will
depend on the organization’s ability to make hires and design jobs that meet those
objectives.

Managing Employment Relationships. We then examine in closer detail some of the main
levers that managers and organizations can use to encourage employees to act in ways
that are consistent with organizational goals. Employees’ contributions will depend on
the benefits (both extrinsic and intrinsic) they perceive as supporting (or undermining)
organizational objectives.

Transforming Employment Relationships. The third portion of the course considers the
challenges of transforming employment relations. Effective employment relationships
require that managers successfully navigate the tension between continuity and change:
preserving continuity through trust and consistent actions while at the same time being
adaptable to shifts in strategy and the operating environment.
The choices you make in hiring, shaping employee incentives, and exercising interpersonal
leadership will determine your ability to align your employees’ actions with the organization’s
goals and objectives. The choices you make will also shape how empowered your employees
feel to uphold their personal values and ethics on the job, even when confronted with pressures
to do otherwise.
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
COURSE LOGISTICS AND GRADING
Course Web site. All announcements, assignments, and course materials will be posted to the
CLASSESv2 site: login to CLASSESv2 and access the “MGT 420 00 (S13)” tab. Please
monitor the site regularly for updates and important class materials.
Grading. Course grades will reflect the following components:
Class preparedness and participation:
Writing assignments:
Group Project:
Take-home final examination:
30%
20%
20%
30%
Class Participation. Engagement and active participation by all class members is vital,
particularly in a course focusing on employees. In-class discussions will leverage class members’
wealth of experience across diverse contexts; where relevant, please bring your own experiences
and illustrations into class discussion. Your previous experience, both positive and negative, is
an invaluable source of data.
Class participation grades will reflect an assessment of your total contribution to the
learning environment. This reflects not just the frequency of your class contributions, but also:
(1) their quality (ability to draw on course materials and your experiences productively; ability to
advance or sharpen in-class discussion and debate; willingness to take risky or unpopular points
of view; use of logic, precision, and evidence in making arguments); and (2) the professionalism
of your conduct (attendance, punctuality, preparedness, respecting colleagues and their
contributions, and refraining from conduct that is distracting).
Writing Assignments and Homework. There will be two brief writing assignments, which
involve writing up short answers (no more than 3 pages total) to preparation questions assigned
in conjunction with particular cases we will discuss in class. Please print these out and bring
them to class on the day that they are due.
1) The first assignment pertains to the case (Portman Hotel) we will discuss in
Session #1 (THE FIRST DAY) on Monday, January 14th. This assignment is due
in class on Friday, January 18th
2) The second assignment pertains to the “Contrasting Incentive Programs” (Session
#8) where we will discuss Lincoln Electric alongside pay-for-performance
programs in education on Monday, February 6th.
Group Project. The goal of this project is to provide an opportunity for class members to apply
the key principles covered in this course to an actual business context. Class members will form
groups of 4 and will select one of the following organizations: Zappos, IDEO, Goldman Sachs,
Teach for America. The group will identify a key issue or challenge facing this organization that
is related to a concept from Employee. Groups should also draw on material from the first
semester of the core as well as information gathered from external sources.
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
The aim of this project is to apply principles from this class to help inform a detailed
analysis of the HR strategy of this organization – i.e., based on what you have learned here, what
can the organization do to better understand this issue and address it? The final project will
consist of slide deck aimed at a 20-minute presentation (20 slides max) that provides a clear and
concise summary of the topic and the recommended course of action. The slides should also
include detailed annotated notes, such that the presentation itself can be evaluated as a standalone package.
The projects will be due by 6:00 pm on Friday, February 15th. Top presentations for
each organization will be selected to present in-class on Wednesday, February 20th. For further
details, please see page 16 of the syllabus.
Final Exam. A take-home exam (open book, open notes) will be distributed in class and made
available on CLASSESV2 on February 25th, the day of our last class session. Your written exam
will be submitted electronically through the course web site and is due five days later by 6:00
p.m. on Saturday, March 2nd. The final exam is an individual effort.
Seating Chart. To facilitate learning class members’ names and managing class discussion, the
instructors will rely on a seating chart for your cohort based on where each person chooses to sit
on the first day of class. If you have a seating preference, you are encouraged to arrive early on
the first day of class to secure a seat that is to your liking. To ensure that you receive credit for
attendance and class participation, please sit only in the seat assigned to you on the seating
chart (which will be posted on the class web site).
Attendance.
Missing a class. Attendance at every class session is expected and will be tracked by the TAs.
There is the “cushion” for one absence. However, additional absences will adversely affect your
course grade at an increasing rate.
Attending a different section. If you attend another section, you will not lose credit for that day.
To take advantage of this, give advance (at least a day before) notice to the TA for your cohort
as well as the TA of the cohort you wish to sit in on. However, this option should be used very
sparingly, only in the case of an unavoidable conflict.
Laptops and other Technologies. To make the learning environment as engaging as possible for
everyone, we will enforce SOM’s default policy regarding technology in the classroom, which is
to refrain from using laptops, cell phones, PDAs, and the like during class. Summaries of
important points will be made available to you for each class session, so you should not need to
take copious notes during class, thereby allowing you to focus on and participate in class
discussion.
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
C LASS S CHEDULE O VERVIEW
Class
Date
Topic
Case
PART 1: ESTABLISHING EMPLOYMENT RELATIONSHIPS
1
1/14
Introduction
Portman Hotel
2
1/16
Employment Law
Jim Flores
3
1/18
Signaling and Selection
4
1/23
Gender and Diversity
SG Cowen
*1st assignment due*
Ann Hopkins
PART 2: MANAGING EMPLOYMENT RELATIONSHIPS
5
1/28
Monetary Incentives
Safelite
6
1/30
Compensation Tools
SAS
7
2/4
Intrinsic Motivation
8
2/6
Contrasting Incentive Programs
Lincoln Electric
Teachers
*2nd assignment due*
PART 3: TRANSFORMING EMPLOYMENT RELATIONSHIPS
9
2/11
Investing in Talent
EcoLab
10
2/13
Preserving Values Through
Change
Namaste Solar
11
2/18
Building a Reputation
CarMax
12
2/20
13
2/25
Guest: Austin Ligon (CarMax)
*Group Project Presentations*
Employment and Ethics
Milgram
Experiments
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
OUTLINE OF CLASS MEETINGS AND ASSIGNMENTS
I.
ESTABLISHING EMPLOYMENT RELATIONSHIPS
Session 1 (Monday, Jan. 14): Introduction to ‘Employee’ (GN)
How a job is designed will affect the “costs” or difficulties the employee experiences in trying to
realize those rewards, as well as the ease and precision with which successful performance can
be assessed. In this session, we focus on how job design affects motivation and behavior, both
for the jobholder and for her/his manager.
Readings:
Baron and Kreps, Strategic Human Resources: Frameworks for General
Managers (hereafter, BK), Chapter 2.
Case:
Portman Hotel Organization
Written Assignment:
In no more than three single-sided pages, answer the following questions and hand in your
write-up at the start of class on Friday, January 18th.
This assignment has two parts. Please complete Part 1 before class on Monday January 14th.
You do not need to hand this in, but take time to organize your thoughts and write out your
responses. Following class on Monday, please reflect on your answers to Part 1 and discuss how
your thoughts about this case have changed given the discussion in class.
Part 1: Initial thoughts (Complete these before class on Monday)
a) What should Portman do? Be very specific. Identify the top three priorities they should
focus on and why; what specific steps should be taken; and in what sequence?
b) In choosing between a ‘slight tinkering,’ a ‘radical surgery,’ or a ‘complete
abandonment’ of the current HR policy, what should Portman choose? Provide a detailed
explanation.
c) How much money should management be willing to invest to address the hotel’s
difficulties? Provide estimates of what your recommendations are likely to cost,
including any assumptions you have made.
Part 2: Reflection (Complete this after class on Monday)
Please reflect on your answers to Part 1. What were you correct about? What were you
incorrect about? How have your thoughts changed based on the in class discussion?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 2 (Wednesday, Jan. 16): Legal Aspects of HR Practices (Bagley)
This class focuses on a variety of legal issues involving the HR practices of a fast-growing global
software and IT consulting firm.
Reading:
Bagley, Winning Legally: Chapter 7, “Unleashing the Power of
Human Capital.”
Case:
Jim Flores, ControlTrix (Excerpted Version) (Yale SOM Case 08-015, 2008)
Preparation Questions:
1. What should be Jim Flores’s priorities at this point?
2. How would you evaluate the quality of ControlTrix’s HR practices to date?
3. Should ControlTrix create an employee conduct manual?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 3 (Friday, Jan. 18): Signaling, Screening, and Selection (LK)
As with almost any kind of economic exchange, employment relationships involve private
information, which would be useful for the other party in the exchange to possess. For example,
the person interviewing you for a summer internship would like to know if this is actually your
#12 choice among the 13 openings for which you’ve applied. In this session, we will examine
theories regarding signaling and screening processes in employment by which each party
attempts to gain access to private information held by the other. We consider how firms and
employees can use these processes to their respective advantage in numerous facets of matching
individuals to jobs.
Reading:
HR World Editors, "30 Interview Questions You Can't Ask and 30
Sneaky, Legal Alternatives to Get the Same Info," HR World, Dec 15,
2007: http://www.hrworld.com/features/30-interview-questions-111507/
Case:
SG Cowen: New Recruits [HBS #9-402-028]
Assignment:
By 5:00pm on Thursday, January 17th, please answer the following very brief online
survey: http://yale.qualtrics.com/SE/?SID=SV_1Y8digYhymBGY72. We will discuss the
results in class.
Preparation Questions:
1. Cowen has chosen to recruit at prestigious business schools, but not among the very top tier
schools. Is this a wise decision? Why or why not?
2. How would you evaluate hiring at SG Cowen on the following criteria:
a)
b)
c)
d)
Hiring process (techniques used and how they are sequenced and implemented)
Hiring criteria
Alignment of hiring process and criteria with business strategy
Cost effectiveness
3. What is the value of “informational interviews,” given that they are costly and not used to
screen people?
4. Which of the four candidates do you think has the highest “upside”? Who has the lowest
“downside”? How should this affect Cowen’s hiring decision?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 4 (Wednesday, Jan. 23): Gender and Diversity in the Workplace (Brescoll)
This class focuses on a variety of issues related to gender and diversity issues related to
organizations. We will discuss the Ann Hopkins case which focuses on employee “fit” and
promotion. We will also examine strategies that organizations can use to effectively promote and
manage diverse workforces.
Case:
Ann Hopkins (A) (1997). Harvard Business School Press.
Readings:
IBM’s Diversity Strategy: Bridging the Workplace and the Marketplace. (2004).
Harvard Business School Press.
Assignment:
By 1:00pm on Tuesday, January 22nd, please answer the following online survey: (url will
be posted on classes v2). We will discuss the results in class. It is important that you carefully
read the case and other readings before filling out the web response survey.
Optional readings:
Berg, D. (2002). Bringing oneself to work: A Jew reflects. Journal of Applied Behavioral
Science, 38, 397-415.
Williamson, A D. (2000). Is this the right time to come out? Harvard Business Review.
Meyer, E. (2009). Leading across cultures at Michelen (A). INSEAD Press.
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YALE SCHOOL OF MANAGEMENT
II.
PROFESSORS NEWMAN & KAHN
SPRING 2013
MANAGING EMPLOYMENT RELATIONSHIPS
Session 5 (Monday, Jan 28): Monetary Incentives (LK)
In this session, we will explore when and how monetary incentives should be implemented. We
will look in detail at how one firm’s decision to adopt a performance pay plan affected both the
organization and its employees. We will also discuss a variety of other pay for performance
schemes and learn how to think systematically about which schemes work in which settings.
Readings:
Prendergast, Canice "Paying for Performance," Financial Times, London
(UK): Dec. 13, 1999
Case:
Performance Pay at Safelite Auto Glass (A) (HBS #800-291)
Preparation Questions:
1. Why was the productivity of the Safelite installers so low?
2. Does the proposed PPP plan address these problems? Does it create new problems?
3. What are the likely consequences of a switch from wages to piece rates for: (a) turnover, (b)
recruitment, (c) productivity, (d) quality?
4. Think about the last organization you worked for. Would piece rates work as a motivational
tool? Can you think of another monetary incentive (perhaps from the other reading) that
might work better?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 6 (Wednesday, Jan. 30): Compensation Tools (LK)
In this session, we examine some principles from economics and agency theory regarding how to
create a harmony of interests between employees and those who own or control an organization.
We will consider the kinds of rewards and controls that managers can use toward this end and
the strengths and weaknesses of different ways of measuring and rewarding performance. We
also discuss non-monetary compensation as an important lever in HR management.
Readings:
Kaplan, David, “SAS, A new no. 1 best employer,” Best Companies to
Work for 2010, CNN Money, Jan 22, 2010, vieable at:
http://money.cnn.com/2010/01/21/technology/sas_best_companies.fortune/index.htm
SAS video: http://money.cnn.com/video/fortune/2010/01/20/f_bctwf_sas.fortune/
“Doing well by being rather nice,” The Economist, Nov 29, 2007,
viewable at: http://www.economist.com/node/10208507
Lohr, “At a Software Powerhouse, the Good Life is Under Siege,” New
York Times (November 22, 2009), viewable at:
http://www.nytimes.com/2009/11/22/business/22sas.html?_r=2&hp=&pagewanted=all and
http://www.nytimes.com/slideshow/2009/11/22/business/1122-SAS_12.html
Preparation Questions:
1. What is different about the way SAS manages people and projects, compared to other
software firms?
2. Is the firm's compensation system effective? Why or why not?
3. Why does Goodnight provide such a seemingly generous benefits package?
4. Could the SAS approach work in other high tech organizations? In other cultures?
5. Do you think the SAS culture and HR system will be an asset or a liability in coping with
the competitive challenges described by Lohr in the New York Times article?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 7 (Monday, Feb 4): Intrinsic Motivation (GN)
The previous class examined different monetary strategies that organizations can utilize to
improve employee performance. In this session, we will examine the psychological research on
incentives and motivation. Specifically, we will focus on a) the circumstances under which
monetary reward systems can have unanticipated and dysfunctional effects, b) the underlying
psychological factors that may lead monetary incentives to reduce performance, c) other kinds of
non-monetary incentives that can improve performance, and d) the strategies that managers can
utilize to increase intrinsic motivation.
Readings:
Ryan, Richard and Deci, Edward, “Self-determination theory and the
facilitation of intrinsic motivation, social development, and well-being.”
American Psychologist, Jan., 2000.
Assignment:
By 5:00pm on Sunday, February 3rd, please answer the following very brief online survey:
http://yale.qualtrics.com/SE/?SID=SV_06uxi3xD4zyO7WJ. We will discuss the results in
class, but your individual answer will remain completely confidential.
Preparation Questions:
1. How do the issues raised by Ryan and Deci apply in the workplace? Can you predict
when incentives might be more or less effective in raising the level of employee
performance?
2. How does intrinsic versus extrinsic motivation relate to a person’s desire to fulfill basic
versus higher-order needs?
3. What steps can organizations take to increase intrinsic motivation in the workplace?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 8 (Wednesday, Feb. 6): Contrasting Incentive Programs (GN)
In this session we will compare and contrast two similar incentive programs that have yielded
very different results: piece-rate pay at Lincoln Electric and performance-based pay for public
school teachers. Lincoln Electric is perhaps one of the most frequently taught cases in business
schools and is often hailed as a “gold standard” of successful HR management. By contrast, a
very similar performance-based incentive program for teachers has been quite controversial and
arguably, less successful. In this class we will critically analyze each of these programs through
the lens of the material covered in earlier sessions, in order to try to understand how seemingly
similar incentive programs can yield such radically different results.
Case 1:
Lincoln Electric Organization (HBS #9-376-028)
Case 2:
Fryer, Roland, “Teacher Incentives and Student Achievement: Evidence
from New York City Public Schools,” forthcoming in Journal of Labor
Economics
Otterman, Sharon, “New York City Abandons Teacher Bonus Program”
The New York Times, (July 17, 2011)
http://www.nytimes.com/2011/07/18/education/18rand.html
Additional
Resources:
Lincoln Electric Part 1
Lincoln Electric Part 2
Problems with merit pay for teachers
NPR Podcast Teachers
Written Assignment:
In no more than three single-sided pages, answer the following questions and hand in your
write-up at the start of class on Wednesday, February 6th. If you prefer, your answer may be a
single essay, rather than separate responses to each part of the question:
1. What are the similarities and differences between Lincoln’s reward system and incentive
program for teachers in the NYC study? What other similarities/differences exist between
these two organizations in terms of selection, employee retention, job security, etc.?
2. Why has incentive pay been successful for employees at Lincoln Electric, but less so
teachers? What have been the employee’s reactions to these programs?
3. For each organization (Lincoln and Teachers), how well are its’ HR policies aligned with its
workforce, culture, and organizational goals?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
III. TRANSFORMING EMPLOYMENT RELATIONSHIPS
Session 9 (Monday, Feb. 11): Investing in Talent (LK)
Building a highly trained and effective workforce can yield a strong competitive advantage, and
many firms you have worked for employ this strategy. This strategy is only effective if the firm
can retain its top talent. To the extent that job mobility is simply a part of life, it is important that
managers build organizational capabilities through processes that remain embedded in the
organization, not just through people. Today we will draw lessons from an example of one
manager's dealings with the threat of employee defection.
Case:
Ecolab, Inc. [HBS #9-396-371]
Assignment:
By 5:00pm on Friday, February 18, please answer the following online survey about your
past labor market experiences: (url will be posted on classes v2). We will discuss the results
in class, but your individual answer will remain completely confidential.
Preparation Questions:
1. How does Ecolab make money? What are its competitive advantages and core
competencies?
2. As a newly appointed president and COO, where should Al Schuman focus his attention?
3. As the case comes to a close, do you have any lingering concerns about Ecolab going
forward?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 10 (Wednesday, Feb 13): Preserving Values through Change (GN)
In this session we will examine the challenges that arise when changes in the external
environment threaten to undermine an organization’s ethics and values. Specifically, we will
discuss how organizations can navigate potentially drastic changes in organizational structure
without sacrificing their distinctive values and commitments.
Readings:
Galford and Drapeau, “The Enemies of Trust,” HBR (September 1, 2006)
Case:
Namasté Solar [HBS #910-M49]
Preparation Questions:
1. What is the problem or issue facing Jones and Namasté Solar?
2. What criteria should the group use in reaching a decision?
3. What are the advantages and disadvantages of the options identified in the case as Path A, Path
B and Path C?
4. What do you think the organization should do next, and why?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 11 (Monday, Feb. 18): Building a Reputation — Special Guest: Austin Ligon
(SOM ’80; Co-founder and former CEO, CarMax)
Case:
Scott Morton, Podolny, Mitkowsky, and Elias, “CarMax,” (Yale SOM
Case 07-042).
Preparation Questions:
1. What sort of consumer prefers CarMax to a traditional dealership? Can CarMax increase
the size of this segment(s) of consumers?
2. Can CarMax alter its product (either entirely, or by tailoring some aspect of it) to make it
appeal to those outside the segment(s) you identified above?
3. Other than consumer preference for its format, what are CarMax’s competitive advantages
over traditional franchise dealers?
4. What are the implications of CarMax’s business and marketing strategy for how it must
recruit, select, develop, evaluate, reward, and manage employees?
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 12 (Wednesday, Feb 20): Group Projects
GROUP PROJECTS
Overview:
The goal of this project is to apply the key insights from this course to an actual business context.
Class members will form teams of 4 and will select an organization from the following: Zappos, IDEO,
Goldman Sachs, and Teach for America. Variance in class size may require one or two groups to have
five team members.
Organization Selection:
A maximum of 4 projects about each organization will be allowed (per cohort). These will be
available on a “first come, first serve” basis. In other words, you should form groups and determine
which organization you would like to analyze as quickly as possible. Once you have made a selection,
please email your TAs with a list of the group members and the organization that your group has selected.
Method:
Each group will identify a key issue or challenge facing this organization that is related to a
concept from this course. In doing research about the organization, groups should draw on material from
the first semester of the core as well as information gathered from external sources (e.g., popular press
articles, online resources, etc.). The aim of this project is to apply principles from this class to help inform
a detailed analysis of the HR practices of this organization. Throughout, your team should reference
frameworks or phenomena discussed in this course that help you to understand this particular issue/
challenge. Additionally, how does this situation to other things you have learned in the core?
Final Product:
The final project will consist of slide deck aimed at a 20-minute presentation (20 slides max).
The slide deck will be evaluated not only on depth and overall quality of the analysis, but also on its
clarity and persuasiveness as a presentation. Therefore, it is critical that the .ppt provide a clear and
concise summary of the issue and the recommended course of action. The slides should also include
detailed annotated notes (in the “note view” of power point), such that the presentation itself can be
evaluated as a stand-alone package.
The projects will be due by 6:00 pm on Friday, February 15th. In each cohort section, the top
four projects will be selected (one from each organization) to present in-class on Wednesday, February
20th. TAs will notify the selected groups via email by Sunday, February 17th. Those groups should come
prepared to present their work to the class on Wednesday.
The top group from each cohort will be treated to a victory party at BAR, hosted by George and Lisa.
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EMPLOYEE PERSPECTIVE
YALE SCHOOL OF MANAGEMENT
PROFESSORS NEWMAN & KAHN
SPRING 2013
Session 13 (Monday, Feb 25): Employment and Ethics (GN)
In the final session, we take a step back and consider some of the more fundamental principles of
human behavior. We draw on the classic Milgram experiments to explore how the organizational
context can induce us to take actions that contravene our own values and beliefs. The Milgram
experiments are among the most famous experiments ever carried out in psychology. Conducted
at Yale in the 1960s, they provide powerful (some might say shocking…) insights into how
authority, group norms, and the structuring of a task can elicit behavior that is inconsistent with
an individual’s conception of self and therefore inconsistent with what the individual wants to
do. We will then use the Milgram experiment as a foundation for discussing ethical principles
pertaining to the employment relation, particularly the exercise of managerial control.
Readings:
Staw and Ross, “Understanding Behavior in Escalation Situations.”
Science 246 (October 13, 1989): 216–20.
Case:
Obedience to Authority: The Milgram Experiments (video to be posted on
CLASSESV2 for viewing before class)
Additional Reading: Phillips and Margolis, "Toward an Ethics of Organizations," Business
Ethics Quarterly 9 (October, 1999): 619–38.
Preparation Questions:
1. What factors do you think produced such strong tendencies for Milgram’s experimental
subjects to deliver electric shocks they believed to be harmful and dangerous?
2. What analogues do you see, if any, between the experimental situation Milgram created and
real-world organizations?
3. What can/should organizations and individuals do to minimize the likelihood of authority
being exercises excessively and abusively? How effectively do you think such issues were
handled in the last organization where you worked? Explain.
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