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International Organizational Behavior
Transcript of International Organizational Behavior
Sabrina Bresciani, Ph.D.
Social Information Process Model
evaluation of performances
"represents the multitude of individual differences and similarities that exist among people"
Layers of diversity:
i.e. age, education, religion, marital status...
"enabling people to perform
up to their maximum potential"
+ increase talent pool
+ serve diverse customers
Equal Pay Act 1963
Women salary 20% less TODAY
1. Overcome prejudice (training)
3. Exposure to people with different backgrounds (personal approach)
=> Mutual adaptation
Poor career planning
Unsupportive work environment
No general approach
Consider individual differences
emotions, beliefs, values
Rewards and reinforcement
Feedback and Coaching
Org culture, ....
Alteration of job to improve employees experience and productivity
1. Mechanistic approach
2. Motivational approach
3. Biological/Perceptual-motor approaches
Problem: simplified, repetitive jobs lead to dissatisfaction
Most efficient way to perform a job: highly specialized and standardized
Job rotation (i.e. )
Job enrichment (content)
Job characteristics model
Design the work environment to reduce physical strain, fatigue, repetitive motions, etc (ergonomics)
Source: Paul Arden "It's not how good you are, it's how good you want to be"
Fun or challenge associated with a task
Psychological rewards of doing well
Can we influence intrinsic motivation?
Needs for autonomy
Needs for competence
Model of intrinsic motivation:
- 30% dispositional or genetic components!
- Need fulfillment: compensation, benefits,
job security, work/life balance
- Equity (how fairly you are treated at work)
"no significant decrease in absenteism by increasing job satisfaction"
Costly: 30 to 150% of yearly salary
Why? separation costs + replacement costs
compared to relevant others
Tradeoff: adapting to individual needs or creating inequities?
Strategies for reducing inequity:
- Raising outputs (i.e. promotion, bonus)
-Reducing inputs (working less)
"Belief that effort leads to a specific level of performance"
Paid on the base of time vs. output
Example: Federal Express
"Go home early if and when they completed their assigned duties"
Number of vacation days linked to
seniority or performance
Pay, Promotion, Recognition...
To strenghten the link:
provide support, coaching, self-efficacy ("Yes, you can")
$$ Monetary awards motivate people
Self-set goals lead to higher performance
Do your best
Must be at lest 7% above the base pay
People perform better with concrete objectives
Management by objectives
Does it work?
Gain in productivity of 56% with top mgm commitment
Increases productivity and satisfaction
- Direct attention
- Regulate effort
- Increase persistence
- Task strategies and action plans
1. Difficult goals lead to higher performances
2. Specific hard goals lead to better performances
(90%!) than do your best or no goals
3. Feedback enhances the effect
4. Partecipative = assigned = self-set goals
5. Goal commitment and monetary incentives
Pay should not be linked to goal achievement unless:
- goals are under the employee control
-goals are quantitative and measurable
-frequent, large payment are made for
To correct, regulate
Built a roadmap to success
give sense of purpose
"43% of employees said they don't get enough guidance to improve their performaces"
Problem: self-serving bias
superior to subordinate
Positive impact on low-to-moderate performers
Structured feedback from superior, lower-level employees,
peers, customers, etc.
A feedback template:
Example:Lafley, former P&G CEO, handles 360-degrees feedback
Begin and finish with a positive point
Encoragement of positive behavior
Discouragement negative behaviors
Give specific, concrete examples, not impressions
PUSH to improve, but avoid insecurity and defensiveness
help employees in the long run
Focus on the future (not on the past)
Propose solutions, positive examples
Do not base pay and promotions on feedback only
Do not use feedback to punish
Do not forget to provide a solution
Do not provide feedback too late
Types of reward
2. Social (extrinsic)
3. Psychic (intrinsic)
Motivate (work harder/smarter)
Retain talented people
Salary, bonuses, benefits
sense of competence
Teamwork, cooperation, creativity
Type of job, tenure, level in hierarchy
Emphasis on $
Lack of appreciation
Delay in reward
Counterproductive behavior is rewarded
(i.e., layoffs, excessive executive compensations)
Effective groups and teamwork
- Positive aspects
- Negative aspects
- Suggestions for improvement
(i.e., You should reward teamwork, not competition, if jobs are interdependent)
Managers spend between 50 and 90
percent of their time talking to people
"Two or more freely interacting people with shared norms and goals and a common identity"
Size is limited by the possibilities of mutual interaction and mutual awareness
Formed by the organization
(i.e., work group, task force)
Formed by friends
Accomplish complex, interdependent tasks
Coordinate interdepartmental projects
Solving complex problems
The whole is greater than the sum of its parts
Need for affiliation
Reduce anxiety and insecurity
Support for personal problems
Theory of group development (Tuckman 1965)
"expected behaviors for a given position"
Go beyond job description duties
i.e., help co-workers, motivate, suggest improvements
keep the group on track
keep the group together
i.e., initiator, information seeker/giver, coordinator, evaluator
i.e., harmonizer, compromizer, gatekeeper (encourage to participate), standard setter
Shared attitudes, opinion, feelings, or actions that guide social behavior
(determine right from wrong)
Often unwritten, not discused openly
- critical events
- primacy (first behavior that emerges)
- carryover behaviors from past
i.e., Google norms: innovative, constantly looking for new products, don't work for money
"small group with complementary skills who are committed to a common purpose and hold themselves mutually accountable"
A group becomes a team when:
Accountability is individual and collective
Effectiveness is measured with
Develops purpose and mission
Leadership is shared
Threats to Effectiveness
Cisco Systems: 30% of top executive yearly bonuses based on how well they collaborate with others
Techiques to improve internal functioning of teams
Less dysfunctional conflict
competitive games, etc.
hiking, sailing, etc.
"reciprocal faith in others' intentions and behaviors"
We tend to give what we get
How to build trust:
Be available and approachable
Active listening, delegation,
decision making authority
Give credit and recognition
Keep employees informed
Delegated activities such as planning, scheduling, monitoring and staffing (usually performed by managers)
Workgroups act as their own supervisors
Revolutionary changes in management philosophy and structure!
Teams made up of technical specialists from different areas
(start a team on a problem)
"Group members in different locations who conduct business using information technology"
Weaker trust, communication, accountability
"A cohesive in-group's unwillingness to realistically view alternatives"
"Deterioration of mental efficiency, reality testing, and moral judgment that results from in-group pressure"
(Janis 1993, 1998)
2. Inherent morality
4. Stereotyped views of opposition
6. Illusion of unanimity
7. Peer pressure
and risk taking
Ignore ethical implications
"The fear that everyone else knows more, so I'll just go along"
Silence interpreted to mean consent
Loyalty of dissenters is questioned
Role of the critical evaluator
Different groups should work on the same questions
Subgroup debates and outside experts => new perspectives
Play the role of the devil's advocate
Check for flaws
"Decrease in individual effort as group size increases"
Is group performance less than, equal to, or greater than the sum of its parts?
1. Equity of effort
2. Loss of personal accountability
3. Sharing of rewards
4. Coordination loss
expect coworkers to loaf
thought their individual output was not identifiable
task perceived as unimportant or not interesting
=> hold each member personally accountable for results
=> challenging task (goal setting)
www.nature.com March 23, 2006, vol.440
"Decisions are the essence of management"
T. Steward, editor of HBR
(2) generate alternative
(4) implement and evaluate
Optimal: alternative with the greatest value
Preferences: risk, ethics
If not successful:
problem not correctly identified
"The assumptions of perfect rationality are contrary to fact. It is not a question of approximation; they do not even remotely describe the process that human beings use for making decisions in complex environment"
Herber Simon, Nobel laureate
Explain how decisions are actually made
"Satisficing" : choosing a solution that meets a minimum standard of acceptance
Decision makers are "bounded" or restricted by a variety of constraints when making decisions
"Rules of thumb or shortcuts that people use to reduce information-processing demands"
Systematic mistakes when making decisions associated with
Conflict and Negotiation
Group (Decision) Support Systems
for improving decision making
"Implementing systems and practices that increase the sharing of knowledge and information"
Information gained through experience
Difficult to explain and formalize
Examples: driving, writing a speech
Information shared verbally or with written documents
Can be easily put into words and shared
Examples: formal procedures, strategy
oberving, participating, mentoring, networking,
office space design
IBM incorporated kn creation, sharing, reuse measurements into performance metrics
Process of developing something new
(1) Creation: create something new
(2) Synthesis: combination
(3) Modification: improve/change
1/3 sales from new products
New CEO McNerney in 2000
initiatives to increase efficiency =>
dramatic improve of stock performances
1/4 sales from new products
New CEO George Buckley:
efficiency concentrated on manufacturing, no pressure on R&D
Crafting an innovation culture:
challenge all employees with problem-solving opportunities
visible support for innovative projects; no punishment for failures
hire talented people, continuous learning
innovation in the entire organization, not limited to R&D
most innovative groups have high level of minority dissent and participation
Adler, International Dimensions of Organizational Behavior, 3rd ed.
ETH Value Lab, Zurich
Burkhard R, Meier M, Schneider C, The ETH Value Lab and Two Software Tools for Knowledge Creation in Teams, 13th International Information Visualisation Conference, IEEE, Barcelona, 2009.
Latest trend: multitouch screens
Constructive (or functional) conflict
serves organization's interests
Conflict avoidance negatively impacts
Problem: cross-cultural differences
(i.e.: saving face)
American vs. Chinese negotiation style
The problem with communication
is the illusion that it has been achieved
Model of Communication:
Miscommunication is costly
Translating thoughts into a code or language
Face to face, telephone, e-mail, videoconference, visuals, written memos, charts, etc.
Process of interpreting and making sense
=> Culture, language
Poor connection, illegible handwriting, poor hearing
i.e., finding the right words
communication skills, information processing, trust, prejudice, listening skills
time zone differences
= meaning of words
i.e.: "We need to complete this project right away"
take unfair advantage
does not take unfair advantage of others"
Pushing hard without attacking
Permits others to influence outcome
Good eye contact
Strong, steady, audible voice
Direct and unambiguous language
Taking advantage of others
Threats and put-downs
leaning forward or backward
folding arms = defensiveness
People tend to touch those they like
Impression on wamth and caring
Westerners: impolite not to look
at the speaker
Asian: avoid eye contact with
differ across cultures
Social Media (Web 2.0)
George Bernard Shaw
Classification of Knowledge Visualization:
4. Knowledge Maps
5. Interactive Visualizations
Are you my friend? Yes/no
Search Engine Marketing
Designing Effective Organizations
or customer type
Work divided according to:
dual reporting structure
(i.e. product and function)
responsible for the entire process
outsource production of components
"temporarely combine the effort of members of
different companies to complete a project"
Violates the "unity of command" principle
[combination of type 1 and 2]
(i.e., manufacturing, marketing, finance)
Hierarchy of authority / Chain of command
Organizational Charts show:
- hierarchy of authority
- division of labor
- spans of control
(number of people reporting to a manager)
The right fit
"fit the demand of the situation"
+ Save money
+ Quality standards
- Slow in adapting to changes
Suitable for a stable environment
+ Move faster
- Expensive: it duplicates functions in each division
- Focus on the division rather than the company's overall mission
Suitable for most companies
- Slow decision making
- Requires extensive communication and collaboration
+ It can lower costs
Suitable for large organizations
+ improve coordination and communication
+ creative solutions
+ adapting to a fast-changing environment
- difficult to manage
Suitable when specialization is less relevant than changing needs
+ Superior returns by focusing on what organizations do best
- give up expertise and control
- coordinations costs (need to train for teamwork skills)
Suitable when organizations have suitable partners they trust
Leadership across cultures
Source: Brodbeck, F., et al. (2000). Cultural variation of leadership prototypes across 22 European countries, Journal of Occupational and Organizational Psychology, 73, 1–29.
The the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organizations of which they are members
(House & Javidan, 2004, p.15)
“It is important for a manager to always have precise answers for most of the questions followers ask.”
Different expectations on the attributes of good leadership across cultures
Understand attributes of a good leader:
1. Global Context
Grading & Assignments
what you know
- Your name
- Where you are from
- Your international and work experience
+ your expectations
MAP Organizational Behavior
Class meets: Friday, 14.30-17.15 Room: Nr. 6, Main Villa
(Jan 25th – May 10th, 2013)
Office: Main Villa (Kaletsch Campus), Faculty Office 7
Office hours: Friday 12.30-14.30
Final exam: Friday May 17, 14.30-16.30
Kinicki R. & Krietner A. (2009). Organizational Behavior, McGraw Hill International Edition. 4th Edition.
1. Hofstede, G. (1984). Cultural Dimensions in Management and Planning. Asia Pacific Journal of Management.
2. Fang, T. & Faure, G.O. (2011). Chinese Communication Characteristics: A Yin Yang Perspective. International Journal of Intercultural Relations, 35: 320–333.
3. Adler, N.J. (2008). International Dimensions of Organizational Behavior. South-Western Cengage Learning: Mason OH, Fifth edition, pages: 131-147 (chapter 5).
4. Vaara, E., Tienari, J., Piekkari, R. & Santti, R. (2005). Language and the circuits of power in a merging multinational corporation. Journal of Management Studies, 42 (3): 595-623.
1. Group presentation (20%)
2. Group discussion of cases (20%)
3. Individual assignments (20%)
4. Final exam (40%)
of one of the readings
closed book, last day of the course
to Organizational Behavior
What it is
What it is not
Ethical Behavior of MNC
"process of working with and through others to achieve organizational objectives efficiently and ethically"
Interdisciplinary field dedicated to better understanding and managing people at work
Human Relations Movement
better human relations and improved working conditions -> more productivity
McGregor's Theory Y
People dislike work
require close supervision
are primarily interested in security
Employees are capable of self-direction
Total Quality Management
An organizational culture dedicated to training, continuous improvement and customer satisfaction
Japan: high products quality
Deming's 85-15 rule:
organizational failures-> 85% system
1. Do it right the first time
2. learn from customers and employees
3. make continuous improvements
4. build teamwork, trust, mutual respect
Using management tools and techniques in a situationally appropriate manner, avoiding the one-best-way mentality
Human and Social capital
Productive potential resulting from:
knowledge and action
trust and cooperative effort
Using internet to more effectively and efficiently manage every aspect of a business
=> employees have more control over the information
=> manager's role is to provide means for collaboration
=> select workers who have the self-discipline to work off-site
Q: Lisa is a manager and needs to make a promotion decision. She thinks that, since Herbert is 50 and nearing retirement age and Iris is only 35 and may stay with P&G for many years, it would be wise to promote Iris.
After all, P&G will invest in training the newly promoted employee and she wants this investment to be used wisely. Is this a good employment decision?
Q: Michele’s supervisor constantly tells Michele sexually offensive jokes and comments on her appearance in a way that makes her uncomfortable. She asks him to stop, but he laughs and tells her he’s “just kidding around.”
Michele wants to report this, but fears her supervisor will know she did so and block her upcoming pay increase.
What should she do?
Typical mistake: diversity = cultural differences
Fundamental attribution bias
tendency to attribute another person behavior to his/her personal characteristics, as opposed to situational factors
attribute our success to internal factors and failures to uncontrollable external events
Exercise: Map yourself!
Managing Change and
Low job satisfaction
Human resource problems
Managerial behavior, decisions
Models of Planned Change
Lewin’s Change Model
Create the motivation to change
Replace old values and attitudes
Disconfirm usefulness of behaviors
Help employees integrate the change
Chance to exhibit new behavior
Positive reinforcement (extrinsic!)
Coaching, modeling to stabilize
New behavioral models
Kotter’s Eight Steps
A Systems Model of Change
Creating Change through
Organization Development (OD)
Strategies for Overcoming Resistance to Change
ready for change
agree on current problems
Employees must be informed about the change process
People might be subconsciously resisting change
Employees‘ perceptions or interpretations affect change!
=> provide as much information as possible
inform employees about the rationale/reasons for change
=>conduct meetings to address employees‘ questions
discuss how the change might affect them
Six Strategies for
Overcoming Resistance to Change
Yesterday‘s competitive advantage is becoming the minimum entrance requirement for staying in business
To improve and stay ahead of competitors
Influence and Power
Key to Persuasion:
6 Persuasion Principles (Cialdini)
The Principle of : LIKING
“People like those who like them”
Uncover real similarities and offer genuine praise
Find out similarities through informal talk
Praise people for the work or action they have done
1. Persuade through Empathy
The Principle of : RECIPROCITY
“People repay in kind”
Give what you want to receive
Start first with a pleasant gesture/behaviour
Have a positive attitude
2. Persuade through Altruism
The Principle of : SOCIAL PROOF
“People follow the lead of similar others”
Use peer power whenever it’s available
Make people rely on group members
Use testimonials/feedback from satisfied costumers
Exert influence rather horizontally than vertically
3. Persuade through others
The Principle of : CONSISTENCY
“People align with their clear commitments”
Make their commitments active, public, voluntary
Once the agreement is won get it in writing
People live up to what they have written down.
(It’s better if the written commitment is been made public)
But commitment must be voluntary to last and be effective.
(Avoiding threats or pressure tactics)
4. Persuade through Credibility
The Principle of : AUTHORITY
“People defer to experts”
Expose your expertise; don’t assume it’s self-evident
Show your expertise, but in subtlety way.
Make it visible for others.
Establish expertise early in the game, so when it comes to business you will be respected.
5. Persuade through visible Expertise
The Principle of : SCARCITY
“People want more of what they can have less of”
Highlight unique benefits and exclusive information
Make items and opportunities less available, so they seem to be more valuable.
Make use of “loss language”.
Give out exclusive information.
6. Persuade through Exclusivity
Narayana Murthy, founder of Infosys
Source: N.R. Narayana Murthy (2009) A Better India A Better World
“Ghandi realized that trust in leaders is extremely important if the followers have to commit to sacrifices.
He unleashed the most powerful instruments for gaining trust – leadership by example” (Murthy 2009, pg: XV)
“I was not sure if I had sufficient expertise in handling sales, people, customers and finance. I closed Softronics and joined PCS as the head of the software group in Mumbai. The PCS experience was a godsend. I had one of the finest bosses anybody could wish for – Ashok Patni, a brilliant, gentle and compassionate person. During my four years there, I learned a lot about the software business. I met a team of wonderful youngsters, six of whom joined me in my next venture-Infosys.
I wanted the Infosys experiment to demonstrate to the Indian public and industry peers that there were virtues in compassionate capitalism.
(Murthy 2009, pg: XVII)
“I believe that good leaders integrate the fifty-thousand-feet view of the world with the ground-level worm’s eye view.”
“I am convinced that a laser focus on implementation and the ability to get into details are the most urgent needs for the development of our country” (Murthy 2009, pg: XX)
What can we learn from Narayana Murthy, founder of Infosys?
“Communication is crucial to the success of a manager.
Given that we are to work in multicultural teams, we have to use universally understood words, simple but powerful words and metaphors to communicate with people across the globe”
“Creating a team, transcending biases of nationalities, races, religious beliefs and classes, and embracing both mulitculturalism and diversity is your big challenge.”
“We will be better human beings if we are open-minded about learning from other cultures while retaining the good in our own.”
(Murthy 2009, pg: 24-25)
Transformational Leadership model
Insights on leadership
1. Rational Persuasion
2. Inspirational appeals
5. Personal appeals
participate in planning and decision making
getting someone in good mood
prior to making a request
referring to a friend and loyalty
getting others to support your effort in persuading
authority/rules/support from superiors
1. Reward Power
2. Coercive Power
3. Legitimate Power
4. Expert Power
5. Referent Power
Obtaining compliance with promised
or actual rewards
Obtaining compliance through threatened
or actual punishment
Obtaining compliance through formal authority
VW locking executives
in meeting rooms
"I'm the boss, that's why"
Danger: power holder's ego
Obtaining compliance through one's knowledge or information
*can be used to enhance legitimate power
Knowledge is power
Obtaining compliance through charisma or personal attraction
Sharing power with lower-level
employees to tap their full potential
Employees vary in terms of how much empowerment they desire.
Some like to have responsibilities, others don't.
involving employees in decision making
Does it always work?
It works if:
- information sharing to build trust
- structure for employees autonomy to make decisions toward a clear vision
- effective teams
"the process by which people attempt to control or manipulate the reactions of others to images of themselves or their ideas"
" a moderate amount of upward impression management is a necessity for the average employee today"
i.e., avoid offending others
- Avoid additional work/ transfer/promotions
- obtain rewards: pay rise/ transfer
- exit: seek get laid off (unemployment)
- power: manipulate, intimidate others
Forces of change
Resistance to Change
reflective process that involves the collection and sensemaking of information that can be used to initiate and endure changes
"proactively creates, acquires, and transfers knowledge throughout the organization and changes its behavior"
= Organizational learning
You are consultants hired by a start-up
Your task is to develop a strategy for a
learning center (after school/college)
with very limited budget
*social enterprise = a self-sustainable business with a social mission
=> use the roadmapping technique to:
- generate ideas
- evaluate them