MGMT591
(Leadership and Organizational Behavior)
Midterm Answers
(Graded Quiz)
GM591 Midterm Quiz
1. Question: Consider this story that appeared in the August 11, 1998 Wall Street
Journal: Work Hard, Play Hard: Employers use fun to boost morale
All 25 partners at Certilman, Balin, Adler & Hyman, an East Meadow, N.Y., law firm, are
invited to a free conference-room lunch every day. Managing partner Bernard Hyman
says the lunches began as a chance to talk business but soon became anticipated
social gatherings. “We tell stories, talk about the weekend,” he says, “talk about the
football game, talk about our husbands, talk about our wives, talk about our children.”
During lunchtime at JW Genesis Financial Corp., Boca Raton, Fla., Vice Chairman Joel
Marks lets workers view his TV-sitcom tapes, including “Seinfeld,” “Mary Tyler Moore”
and “Taxi.” Terry Deal, business professor at Vanderbilt University in Nashville, Tenn.,
says companies that bring play and celebration into the workplace often have higher
profits. A book he co-wrote cites as an example Southwest Airlines, which encourages
crews to joke with passengers.
But he says few companies incorporate play: “One thing we are finding over and over is
that work just isn’t any fun anymore.”
Some observers would argue the fun work place is just another fad? What do you think?
Does having fun at work lead to higher productivity? Use course concepts to formulate
your response.
Your Answer:
I believe that there needs to be balance between fun
and work. If people do not enjoy their job it will lead to lower productivity. My last job
was in retail and the store manager tried to make it as enjoyable as possible, but the
longer I worked there the less fun it was. A major contributor to this was the daily emails from the district manager. There was rarely anything encouraging in them. Far too
often we would get a little bit of recognition for getting sales in one area, but it would
always be followed by a reprimand for not getting sales in a different area. ("Congrats
on getting three phone sales, but why didn't you get any attaches?") People can't
always find satisfaction in their job alone, but if the company can find other ways to add
fun to the job it would have a big impact on productivity. If people actually look forward
to coming to work and are happy to be there then they are naturally going to work
harder. Of course, you do have to make sure that you are meeting their basic needs
first. If I am underpaid and not sure if I will be able to make my house or rent payment
then I am not going to be assuaged by the ability to watch "Mary Tyler Moore" during
lunch.
Instructor Explanation:
ANSWER:
One approach would involve the recognition of the following factors:
Although no one is likely to disagree with the statement that an enjoyable place to work
beats a lousy place to work, it’s not clear that having fun at work leads to higher
productivity.
For instance, fun could be defined as conducting football pools and taking long lunches
and numerous coffee breaks.
Also, enjoying one’s work does not necessarily have an impact on performance. That’s
because performance is determined by all sorts of factors. In some cases, capacity may
be the prime determinant. For instance, no one on earth could be happier than me if I
were named the starting centerfielder for the New York Yankees. But I’m not likely to
catch many fly balls and would probably bat .018. My happiness at going to work each
day wouldn’t be sufficient to overcome my lack of ability.
Besides ability, other elements of capacity that can limit one’s performance regardless
of his/her level of job satisfaction are: (1) the work ethic the individual has (which was
probably acquired when the person was growing up and may not be subject to much
change in adulthood); and (2) the energy level the person has (which is also pretty
much fixed).
Under opportunity, a person’s performance may be limited (no matter how high the level
of job satisfaction) by a lack of materials, outdated technology, insufficient budget, or a
lack of cooperation by another department.
Another approach would be to refer to the research on the issue of job satisfaction and
productivity. Students can make several points:
1.
The early views on this relationship can be described succinctly as “a happy
worker is a productive worker.”
However, the research on this issue has shown that if there is a positive relationship
between satisfaction and productivity, the link is weak at best (correlations in the range
of +0.14).
2.
The linkage between satisfaction and productivity can be strengthened with the
introduction of moderating variables. For example,
the relationship is stronger when the employee’s behavior is not constrained or
controlled by outside forces (e.g., equipment constraints, economic factors, etc.)
higher level employees (supervisors, managerial) demonstrate stronger correlations
causality of relationship seems to be more relevant to say productivity causes
satisfaction; not the other way around. If you do a good job, you intrinsically feel good
about it. In addition, assuming the organization rewards productivity (extrinsic rewards),
these rewards (must be judged fair) serve to increase your satisfaction with the job.
A more recent study (1992) seems to suggest too that one reason researchers have not
found a strong link between satisfaction and productivity is because they have been
focusing on individuals rather than the organization. When satisfaction and productivity
data were gathered for the organization as a whole, rather than the individual level, the
research showed that organizations with more satisfied employees tended to be more
effective than those organizations with less satisfied employees.
Points
Received: 40 of 40
2. Question: TCO (C). An October 15, 2004 article by Scott Wyman in the South Florida
Sun-Sentinel included the following information on salaries awarded in the county:
“When it comes to getting extra money as a reward for hard work in Broward County
government, it pays to work as closely as possible to county commissioners -preferably right outside their office doors. The average bonus given to that elite staff
topped the $5,000 maximum set in the incentive program and was almost triple that
received by other employees, according to personnel and audit records reviewed by the
South Florida Sun-Sentinel.
Business experts said differences between the bonuses awarded to those at the top of
an organization and the rest of its employees is common. Yet, they said, it often is a
cause of workplace friction and low morale.”
a. Based on what you’ve learned in this course, use J. Stacy Adam’s Equity Theory to
fully explain why this disparity of rewards caused workplace friction and low morale.
Include in your answer the specific reason why the lower-paid county workers are
motivated to do what they did - cause friction and experience low morale.
b. How can county management reduce the perception of inequity?
Your Answer:
A. I believe that people in general understand that there will be a difference in pay
bonuses as you progress upward within an organization. Workplace friction and
low morale come into play when it is felt that one’s efforts are resulting in a reward for
upper management and they are getting relatively less in return. If I am working hard for
someone and they end up getting a hefty bonus and in return I just get a pat on the
back I am going to feel a negative inequity. I wouldn't expect as much, but I would
expect to get some thing in return for my efforts. J. Stacy Adams theory is that any
perceived inequity becomes a motivating state of mind. (Schermerhorn, p.115).
B. To reduce the perception of inequity county management should clearly define how
bonuses are decided. If people are made aware of how the bonuses are rewarded they
may be more understanding of why others receive a larger bonus than they do. I f
bonuses are decided based upon individual effort then all should receive identical
bonuses for equivalent effort. If it is based on year end performance of the company as
a whole then perhaps using a sliding scale based on tenure and pay grade may work
better. ____________________________________________________________
References Schermerhorn, J. R., Hunt, J. G., Osborn, R. N., &Uhl-Bien, M. (2010).
Organizational behavior: The international student edition (11th ed.). Hoboken, NJ: John
Wiley & Sons Inc.
Instructor Explanation:
a. According to equity theory the lower-paid county employees are weighing what they
are putting into the job situation (inputs) against
what they get from it (outcome). The lower-paid county employees then compare the
balance of this input-outcome ratio to others. The county employees receiving higher
salaries are the reference points in this case. Lower-paid county employees perceive
an imbalance because other county employees who work the same hours for the same
shared goals are receiving much higher salaries. Further, the lower-paid employees
are viewing themselves as “under rewarded.” In an effort to correct this perceived
inequity lower-paid employees may reduce their inputs (as stated above) by decreasing
quality and productivity.
b. How can management reduce the perception of inequity?
1) Recognize that equity comparisons are inevitable in the workplace.
2) Anticipate felt negative inequities when rewards are given.
3) Communicate clear evaluations of any rewards given.
4) Communicate an appraisal of performance on which the reward is based.
5) Communicate comparison points appropriate in the situation.
County management may highlight the different job tasks between county workers and
emphasize why salaries are so different. Management can increase salaries of lower
paid employees; attempt “job enlargement” or communicate the additional benefits (e.g.,
increased vacation, stock, etc.)
Points Received: 40 of 40
3. Question: Organizational Behavior is just common sense and has little relevance for
managers today. Discuss
this statement giving examples to support your answer.
Your Answer:
If it were common sense, then more companies would be applying it to their businesses.
It seems to me that more money is spent training new employees in high turnover rate
industries such as retail than it would cost to make an effort to retain the employees
they have. Customers do notice the high turnover. I had more than a couple comment to
me that they noticed that there seems to be someone new there every time come to the
store. This does effect customer loyalty. Particularly in a service oriented business. I
know I look for people who have given me good service when I go back to some
businesses. If management treated their employees the same way that they expected
their employees to treat their customers it would go a long way motivating them to
higher productivity. There have been several examples in our text and in other classes I
have taken that point out the success of companies understand employee motivation
and how best to garner it. Yet that doesn't seem to be the norm. Is it reluctance to
change? Is it a misheld belief that the system isn't broken therefore it doesn't need to be
fixed? People have a tendency to cling to "the way things have always been done" as
an excuse to not make any changes. I saw this as a sales engineer in trying to get
people to try a different product that was so much better than what they were using.
But I was working against an industry belief that "no one ever got fired for using AB."
Instructor Explanation: This statement is FALSE. Unlike “common sense,” OB is based
on behavior sciences and fact. It provides a scientific-based assessment of how people
are likely to interact with each other and their organization, how they can be motivated,
and ways to implement cultural/corporate change. It also provides management with a
tested way to examine issues like how structures and the work environment impact on
the work force. Since people are an organizations most important resource,
understanding these different issues makes OB very relevant for managers. Relying on
common sense instead of OB theories could lead to disastrous results. Not everyone
has the same background or experiences, so a manager relying on his/her common
sense would not arrive at as good a solution or analysis as a manager who based
his/her assessment on OB theories. An example would be how the LSI and OCI are
applied to analyze individual and corporate styles. By using these OB tools the area for
improvement and how to get there are clear. Using common sense would not have the
same result in most cases and would vary across the organization in how change would
be applied. Points Received: 30 of 30
4. Question: TCO (E). In the May 18, 1998 issue of BusinessWeek, the story line read
“Nice Guys Finish With MBAs.” The following is
an excerpt from that piece:
“ . . . nearly half of this year’s top B-school graduates turned down their highest-paying
job offer, preferring to work for companies that offered room for personal growth or had
a more appealing corporate culture.” (p. 8)
Given your understanding of organizational culture and using OCI terminology, offer an
explanation why, according to the article, MBA grads are focusing less on salary and
more on the organization’s culture.
1. In your response define organizational culture and discuss which OCI styles most
likely appeal to these graduates.
2. How can a culture be a liability to an organization?
Your Answer:
1. Organizational culture, as defined in our text, "is the system of shared actions,
values, and beliefs that develops within an organization and guides the behavior of its
members." (Schermerhorn, p. 366.) These graduates are most likely to be attracted to
companies that foster the constructive cultural norms of achievement, self-actualizing,
humanistic-encouraging and affiliative. They are looking for companies that are going to
help them grow and that are rewarding to work for on more than a pay basis. Job
satisfaction is much more important once a certain pay level is reached.
2. Culture can be a liability if it is seen as caustic and inhibiting to personal growth. The
last company I worked for was that way. The store manager I worked for kept trying to
maintain
a positive attitude, but in the end he quit a week after he was forced to fire me. If a
company get a reputation for not being a very pleasant place to work they will struggle
to get good employees to stay.
____________________________________________________________
_
References Schermerhorn, J. R., Hunt, J. G., Osborn, R. N., &Uhl-Bien, M. (2010).
Organizational behavior: The international student edition (11th ed.). Hoboken, NJ: John
Wiley & Sons Inc.
Instructor Explanation:
These graduates are focusing on constructive cultures where interaction is encouraged
and work is designed to meet higher-order needs. In constructive cultures,
achievement, self-actualization, affiliation, and encouragement become the
philosophical foci of the organization.
Based upon The OCI Interpretation and Development Guide's information, a
constructive culture sets realistic (but challenging) goals and develops plans to reach
those goals. The self-actualizing styles of constructive organizations attempt to create
an enjoyable workplace where employees learn and grew. Moreover, the humanisticencouraging style utilized by the organization creating a supportive network that
encourages honesty and trust. Lastly, the affiliative aspect of constructive cultures
encourages teamwork, building relationships, and empathy.
Based upon the theories we have discussed in class, we find little mention of money
beyond the benefit ofmeeting needs. This trend to accept positions with employers
who train and develop their employees indicates a need for personal growth (for
instance, reaching the pinnacle of Maslow's hierarchy). Economically, there is little
benefit to making an extra $20,000/year if one does not have the time to enjoy it or is
extremely unhappy at work.
The kind of culture prospective employees are searching for includes a sense of
belonging (affiliation), too. Feeling isolated in a hierarchical organization does not
encourage effective problem-solving, nor does constant criticism (punishment) for every
perceived error. This article indicates that applicants want a workplace that provides a
reasonable salary to provide a reasonable standard of living. This workplace will
include opportunities to move-up the ladder while learning (not through punishment or
criticism). After all, as we know from the Skinner box, people who feel trapped and are
constantly punished begin to feel helpless and simply stop functioning.
Along with the opportunity to grow mentioned above, a strongly affiliative style that
emphasizes individuality but cooperation will entail a low rating on the approval scale.
In addition, if the organization is constructive and encouraging, the organization should
rate relatively low on the conventional style. Similarly, these MBAs will avoid highly
dependent organizations where hierarchy and blindly followingleaders are emphasized.
In constructive organizations, employees will be encouraged to learn from mistakes, so
avoidance and its related finger-pointing will rate low on the OCI scale. Consequently,
those attracted to constructive organizations will avoid oppositional cultures where
criticism is the daily order of business. Those seeking constructive cultures will opt-out
of perfectionistic and competitive cultures where it is required to be robotic, spend lots
of time avoiding mistakes, and competing against people instead of working with them.
Finally, power-based cultures with Machiavellian traits will be passed-over for
opportunities in cultures that allow for growth and achievement.
The fact that two-thirds of the above-referenced styles diminish personal growth
indicates how precarious it is for organizations to fall into the traps of the
passive/defensive and aggressive/defensive norms. Organizations requiring
conventionalism prohibit employees from using their ideas to improve their work. The
approval-based style slows-down production by require endless approval of new ideas
and techniques prior to their implementation. On the other hand, dependent cultures
are so authoritarian that there is little or no creativity at all: the law is "do what I say."
In organizations with avoidance styles, people may spend more time blaming each
other than actually doing the work or learning.