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Transcript of 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
$$ 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 group dynamics
(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 or interest
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 discussed 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
Techniques 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"
"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"
Herbert 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
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
Constructive (or functional) conflict
serves organization's interests
Conflict avoidance negatively impacts
Problem: cross-cultural differences
(i.e.: saving face)
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,
pictures, non-verbal cues...
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
Social Media (Web 2.0)
George Bernard Shaw
4. Knowledge Maps
5. Interactive Visualizations
Are you my friend? Yes/no
Company case: Shell
or customer type
Work divided according to:
dual reporting structure
(i.e. product and function)
responsible for the entire process
outsource production of components
"temporarily 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
- coordination 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:
Grading & Assignments
Buelens, M., Sinding, K., and Waldstrom, C., Kreitner, R., and Kinicki, A. (2011) Organizational Behavior. McGraw-Hill. Fourth Edition.
1. Aaker, J. The Psychology of Happiness, Stanford Graduate School of Business.
2. 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
Summarize the case (but not the methodology of the study) and propose a parallel to the Swiss
3. Adler, N.J. (2008). International Dimensions of Organizational Behavior. South-Western Cengage Learning: Mason OH, Fifth edition, pages: 131-147 (chapter 7 on motivation).
4. Fang. P., Yoshino, M., Bartlett C. (2006) Silvio Napoli at Schindler India, Harvard Business School.
Present the case, analyze the problems and propose solutions: what should have been done differently? What should Silvio Napoli do now?
5. Catmull. E. 2008. How Pixar fosters collective creativity. Harvard Business Review, 2008: 64-72.
Describe the case and summarize best practices: do they apply to all industries?
6. Niclas, L., Erhardt, N.L., Werbel, J. D. & Shrader C. B. (2003). Board of Director Diversity and Firm Financial Performance, Corporate Governance, 11 (2): 102-111
7. Roberto, M., Carioggia, G. (2003) Mount Everest -1996, Harvard Business School.
Describe the case and discuss the major problems occurred. What should they have done differently?
8. Butler, C., de Bettignies H. C., Changmai Corporation. INSEAD.
Summarize the case, analyze the different perspectives and their root causes and propose solutions
9. Movie: Pirates of Silicon Valley (1999)
Summarize the story, analyze the different organizational cultures, group dynamics and motivational practices
10. Facebook: Balancing Growth and Preserving Corporate Culture
Summarize the case and provide recommendations.
11. Javidan, M., Dorfman, P. W., De Luque, M. S., & House, R. J. (2006). In the eye of the beholder: Cross cultural lessons in leadership from Project GLOBE. The academy of management perspectives, 20(1), 67-90.
12. Carlos Ghosn: Multicultural Leader as CEO of Nissan and Renault. IBS case.
Summarize the case and answer questions 1, 2, 4, 8.
1. Group presentation (30%)
2. Participation to class activities (10%)
4. Final exam (60%)
of one of the readings
closed book, in January
of Organizational Behavior
What it is
What it is not
MAP Organizational Behavior
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!
Change, Learning and KM
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. 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
- select a strategy
Master in Management 2013
Course material available on online:
Ch 2 & 3
Ch 5 & 6
Learn management best practices
based on scientific evidence
Get a more systematic and comprehensive understanding
Avoid typical mistakes
(inside and outside organizations)
Stand up if....
Sit next to somebody you don't know yet
Find 3 things you have in common
You are happy
You just moved to Lugano
You studied at USI
You are Swiss
You have work experience
You know what is OB
'one best way'
workforce left on their own
to develop working methods
=>ineffective rules of thumbs
optimization of tools
replacement of skilled workers with non skilled
thinking is for managers, workers only work
at Ford: doubled the wages
'invented' the concept of management
division of labour
authority and responsibility
unity of command
unity of direction
subordination of individual
interest to general interest
fair remuneration of personnel
stability of tenure of personnel
initiative by every employee
unity among the employees
workers were more responsive to the social
forces of their peer group than the controls
and incentives of management
Mary Parker Follet
observed business leaders and translated thier ideas into management concepts:
dynamism, empowerment, participation, leadership,
Gareth Morgan "Images of Organizations"
each individual can view organizations through different lenses
Activity: find a metaphor for
an organization of your choice
work in groups of max 5 people
success of failure are determined by the characteristics of the population and the environment
something that has been institutionalized has a quality like a rule
organizations copy what others organizations do
what is the difference between a an article in a magazine and a scientific article?
Scientific journals on the topic:
Harvard Business Review
Sloan Management Review
California Management Review
Academy of Management Perspectives
Academy of Management Journal
Academy of Management Review
Organization Science Quarterly
Information System Research
Locus of control
attitudes and behavior
degree to which people like or dislike themselves
higher self-esteem -> higher results, life satisfaction,
can outweigh social deprivation,
more likely to change job
too high -> aggressive and violent behavior
too low -> low performances
Can it be improved? yes
offer autonomy and challenge
build trust (with team and supervisor)
reward each success
Does it change over time? YES!
is a person belief about his/her chances of successfully accomplishing a specific task
(a dimension of self-esteem)
'how you respond to failure'
high self efficacy -> never give up attitude
higher job performance
work harder, more innovative
low self-efficacy -> "learned helplessness": severely debilitating
belief that one has no control over the environment
don't even try
put less effort
focus on deficiencies
women and minorities
high self monitoring -> career success
people's ability to adapt their behavior to external factors
engage in organizational politics
more easy to find a mentor, coach or sponsor
do not overdo it: perceived as dishonest
observing, interpreting, adjusting behavior
internal - external
see themselves as master of their one fate
how much personal responsibility people take
for their behavior and its consequences
believe their performance is the result of circumstances
have less need for information
seek a directive style
routine and clarity increases motivation
go beyond job requirement
resist close supervision
suitable for jobs with low compliance
routine decreases motivation
-> higher performances
life is fated
unresponsive to incentives!!
they want the incentive but will not work harder for them
combination of stable physical and mental characteristics that give an individual his/her own identity
Big 5 personality dimensions
Cattell and Eysenck
One pole is not more desirable than the other!
depends on situation
HR: problematic to test for personality
-> use references from previous jobs to assess
the candidates on the dimensions
Often used by HR
BUT not useful!
poor predictors of job performance!
-> HR: use behavioral interviewing
useful for self-awareness and
knowledge of individual differences
more precise understanding of
diversity among employees
Good predictor of performance!
genes + environment
alcohol and drug abuse by pregnant women
rising intelligence in the last 70 years
Can it be measured?
With an IQ test?
-> inferred through
When people think they can improve their
cognitive abilities, they do improve these abilities
= get smarter
Attitude: "learn predisposition to respond in a consistently favorable or unfavorable manner with respect to a given object"
Attitude is stable over time
changes with cognitive dissonance
"the myth of rationality that reigned for a long time in organizations caused emotions to be long banished in organizational life"
"ability to manage your own emotions and those of others in mature and constructive ways"
1. self awareness
3. social awareness
4. relationship management
empathize, recognizing needs
- Influencing: i.e., enthusiasm for a project
- Communication: clear and convincing messages
- Conflict management: solving conflicts is an
emotional rather than rational process
- Leadership: inspiring and coaching
- Change management: change process requires high
BUT "organizationally required emotions" lead to stress
i.e., look happy for the customer
Country of origin
Experience living abroad
Picture Superiority Effect
(principle used also by NLP)
(Snodgrass Stewart & Stewart, 2001)
“the use of images in cognitive tasks leads to systematically higher recall than the mere use of words, thanks to the additional encoding enabled by pictures and their distinctiveness”
Stephen Few (2006). Information Dashboard Design: The Effective Visual Communication of Data. O'Reilly Media
Useful guide: http://www.perceptualedge.com/articles/Whitepapers/Common_Pitfalls.pdf
Rectangular, space-filling approach for visualizing hierarchical data (multilevel / nested)
The tree nodes are encapsulated into the area of their parent node. The size of the single nodes is determined proportionally in relation to all other nodes of the hierarchy by an attribute of the node (Johnson and Shneiderman, 1991)
Case: Open System Inc., Zurich
Visualizing financial information
In this age of information overload, a new solution is emerging that could help us cope with the oceans of data surrounding and swamping us.
It's called information visualisation.
When to use which chart type?
Slide:ology by Nancy Duarte (2008)
Keep it simple
How many slides?
Average: 1 slide every 2 minutes
Guy Kawasaki: 10/20/30 rule for entrepreneurs pitch: ‘ten slides, last no more than twenty minutes, and contain no font smaller than thirty points’
Depends on the style - fast paced presentations are intriguing
How many words? Font size?
Seth Godin: ‘No more than six words on a slide. EVER.’
Presentation Zen: min. font 30pt
Slideology: depends on the medium
and distance of audience -> test!
Duarte, N., Slide:ology, Sebastopol, CA: O’Reilly Media, 2008: XVIII
“Presentations have become the de facto business communication tool.
Companies are started, products are launched, climate systems are saved –
Possibly based on the quality of presentations”
An Inconvenient truth, 2006: Documentary film
The Presentation Secrets of Steve Jobs (Gallo, 2010):
Plan in analog (thinking, sketching, planning)
Answer “Why should I care” question
Develop a messian sense of purpose (aka: passion)
Create twitter-like headlines
Draw a roadmap: rule of 3 (principle of persuasion)
Introduce the antagonsit
Reveal the conquering hero
Gallo, C., The Presentation Secrets of Steve Jobs, McGraw Hill: New York [etc.], 2010
Steve Jobs, quoting Leonardo Da Vinci
“Simplicity is the ultimate sophistication”
Al Gore presentation:
created by Duarte Design
with Apple’s Keynote
+ Illustrator, Photoshop, AfterEffects
(for more complex animations) and videos
- Information visualization
Managers spend 59% of their time in meetings
and >80% of their time communicating
Make a SWOT analysis of yourself
for a potential employer
Choosing the medium
What is the purpose of communication?
(i.e., "older sister", "uncle")
"Hall and Beadsley (1965) have maintained that, compared to East Asian countries, North America is in the Stone Age when it comes to social relationships."
goal of life: win, be the best
goal of life: harmony,
be recognized by the in-groups
(Dimension: power distance,
Adapted from: Gannon (2001): 81
Source: Deresky (2002) Global Management, ch 4
Hall‘s Dimensions - implications for management communication
Type of message
direct = honest indirect = dishonest
Sichuan mistranslates Xiaoxin huadao 小心滑倒
Lost in Translation
Chinese prefer to think about the situation for over 30 seconds before they speak
Paralanguage: styles of verbal communication
Source: Trompenaars (1997) Riding The Waves of Culture
Source: Trompenaars (1997) Riding The Waves of Culture
Paralanguage: tone of voice
Relevance of languages:
basic means of communication in organizations
basis for knowledge creation
Yes = ?
No = ?
I will try = ?
Tomorrow = ?
E Vaara, J Tienari, R Piekkari Language and the circuits of power in a merging multinational corporation, Journal of Management, 42 (3), 2005.
Language and Power
Power implications of language policy decisions:
1. social interaction
2. identity/subjectivity construction
3. structures of domination
language skills become empowering and disempowering
language skills associated with professional competence
creation of (new) social networks
i.e. language pockets
'circuits of power'
=> Western driven globalization hegemony
legitimate vs. illegitimate power
in organizations (Mintzberg)
language based networks for accessing information
=> changing specialization instead of learning the language
" Managers with the right language skills may easily occupy gate-keeping positions and channel information"
selection of a particular language creates superiority-inferiority relationships
Evidence from the
"Finnish managers and staff felt handicapped by their limited communication skills"
"In the beginning it was a terrible shock. It felt like... half of our professional competence had been taken away when we had to use a language that was not our own native tongue.
You felt like an idiot... The main thing was to get over the feeling of inferiority"
"Climbing up the corporate ladder to top positions in the bank is not possible without fluency in Swedish. Skills in the Finnish language have, however, not been set as a requirement for reaching the board level"
"Many people decided to leave the bank"
"In Finland, we lost many potential future key figures because they realized that they would never be able to compete with their Swedish rivals"
"With Finnish as your native tongue... you are in a weaker position... Whether or not this is the case, it feels like it when the other person speaks his native tongue... But, turning it the other way around, we have this secret language in which we can speak pretty freely to each other -in the middle of a negotiation."
Tip: avoid gestures
honesty vs. hiding emotions
West: People tend to touch those they like
Impression on warmth and caring
Arab World & Asia: no touching
Westerners: impolite not to look
at the speaker
Asian: avoid eye contact with
America = I'm working
Africa = come inside, I feel friendly today
Arab world, South Asia: full body coverage
Arab world: way of socializing (for men only)
India, USA: lower classes only, if you smoke = you are low class
South Korea =
Arabs, south Americans: very very close
When I was smoking on the roads while I was walking, or shopping, Korean people were
pointing at me and staring in really bad way. On top of this, many people came to me, and said
something on Korean by pointing my cigarette. I am from Turkey; however, I travelled to many
countries but never faced with this reaction other than Korea. According to Korean people, a
woman smoking publicly is not proper act, which even seems like you are a worker of pleasing
West: flowers, chocolates, (wine)
India: cloths (don't bring food)
Arabic countries: no wine, no gifts for opposite gender
West: open, thank, and make positive comments even if you don't like it
People with good communication skills are promoted
more frequently than individuals with less developed abilities
Strategy communication across cultures
- with text vs. visual
- with culture-specific visuals
Source: Bresciani S., Eppler M., Tan, M., (2011). Communicating Strategy Across Cultures with Visualization: An Experimental Evaluation. Academy of Management annual meeting, 12-16 August 2011: San Antonio, Texas. Carolyn Dexter Award nominee.
Paid on the base of
time vs. output
Number of vacation days linked to
seniority or performance?
quality of life
high uncertainty avoidance
individualist & low uncertainty avoidance
In Africa: condemnation of self-seeking individualism!
individualist + depends on training
I.e., in India entrepreneurs trained for achievement performed better than untrained entrepreneurs
Mexico, Mediterranean countries
(Tahiti: more fun less cost)
Brazil: typical to help employees with personal financial problems
In Japan: the promotion of a manager separated him from his colleagues, embarassed him and diminished his motivation to work
India vs. U.S.A.:
Source: The India Way: Lessons for the U.S., Academy of Management Perspectives, May 2010
"Major Indian companies are not succeeding despite the fact they are pursuing a social mission and investing in their employees. They are succeeding precisely because they do so."
To strengthen the link:
provide support, coaching, self-efficacy ("Yes, you can")
* Universal principle to the extent that it does not specify the type of rewards
Maslow's need hierarchy
Alder's ERG theory
- more than one need
move down when you cannot move up
McClelland's need theory
not the most effective managers
desire responsibility and feedback
positive: discipline, respect, teach, coach
negative: win-lose mentality
As a manager,
how can you motivate your collaborators?
social entities & relations between them
individuals, groups, organizations
or lack of
"borrow social capital"
=> find a sponsor
legitimacy problem for women and minorities
have more direct connections (beyond the boss)
Some insights from SNA
no clear boundaries
(sense of loss)
different types of management are needed
in the different phases
from directive to participative and supportive
i.e., ethical but disloyal
work and family
Which is the optimal group size?
for decision quality: less than 5
for brainstorming/creativity: up to 12
for decision making: odd numbered
Distortion of individual judgment by
unanimous but incorrect opposition
The evening before the launch,
the rocket engineers and managers considered the question:
“Will the rubber O-rings fail catastrophically tomorrow
because of the cold weather?”
Tufte, E. R. (1997): Visual Explanations. Cheshire, Connecticut: Graphic Press.
Challenger (NASA) 1986
Does it seem easy? Obvious?
7 people died
Should we launch the shuttle tomorrow?
successful organizations are good
at building teams
and exploiting teamwork
effective if <10
Should you concentrate talented people in teams
or spread them around?
= high and low-ability people in each team
Talent is used most efficiently when concentrated
BUT a team of low-ability members has extremely low performances
Implications for management:
=> avoid groups with low-ability members only
=> leave a number of groups with high-ability members only
80 to 100% of teams have difficulties achieving their goals
Lack of understanding
Lack of leadership
Wrong mix of team members
certain members focus on their own career
purpose of the team
better to create mixed groups
no team leader, or leader is not recognized as such
vague/conflicting team assignments
inadequate team skills training
individual reward plans
teams tries to do too much too soon
conflict over different styles
poor interpersonal skills
lack of trust
Cooperation (not competition) should be encouraged
Measuring readiness for teamwork
(Knowledge, Skills, Abilities):
- collaborative problem solving
- goal setting and performance
- planning and task coordiantion
(but > groupthink and poorer decisions!
based on predictable performance
- start with face to face if possible or at least team-building exercises
- establish standards for communicating contextual cues/feelings, and define timing
-define clear objectives and responsibilities
tend to be too lenient to take disciplinary actions
Effectiveness of global teams
Diversity should not be ignored!
Should conflict be avoided?
stimulating functional conflict
handling dysfunctional conflict
Typical mistake: avoiding conflict
2) smoothing (=emphasizing commonalities)
Decision making: ethics
Read the case
-the exercise is anonymous: do not put your name-
Write your answer to the following questions:
1. Why FIFA considers their behavior problematic/unethical?
2. Why Mr. Temari thought his behavior is okay?
3. Which ethical principles should we apply?
(= who is right and who is wrong?)
Humane interactions across boundaries
Ethical behavior is different across cultures!
Is it okay to...
steal others' properties?
India's sacred cow
no copyright in Russia
high concern about intellectual property in the West
And what can you do if somebody
stills something from you?
A common practice in many countries
Unacceptable in North America and northern Europe
Would you report a classmate who cheated in an exam?
Would you report to the authorities if the company you work for is conducting business unethically?
"Ethics in Confucian thought are based on relationships and situations rather than on some absolute and abstract good.
From a North American point of view, applying different rules to different people and situations may seem to violate the sacred code of fairness and equality that accompanies the individualistic values"
(Samovar and Porter)
"I think the American culture is more masculine than the Chinese one. American women get lower salary than men even if they do the same work. And women would change their last name into their husband’s once they get married. These phenomena do not exist in China."
from a Chinese perspective:
aka Carnegie Model
Use analytic strategies (aided or unaided)
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
Sample: 117,000 employees in 53 nations
Culture’s consequences (1997) 10.000 citations
Software of the mind (1984) 15.000 citations
(surpassed Karl Marx as most cited researcher in Social Science
Noted that each culture had a dominant orientation
Hofstede, G. (1984) Cultural Dimensions in Management and Planning, Asia Pacific Journal of management
Degree to which individuals are integrated into groups.
Individualist: the ties between individuals are loose: everyone is expected to look after him/herself and his/her immediate family.
Collectivist: people from birth onwards are integrated into strong, cohesive in-groups, often extended families (with uncles, aunts and grandparents) which continue protecting them in exchange for unquestioning loyalty.
Extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.
This represents inequality (more versus less), but defined from below, not from above. It suggests that a society's level of inequality is endorsed by the followers as much as by the leaders. 'all societies are unequal, but some are more unequal than others'.
Society's tolerance for uncertainty and ambiguity. It indicates to what extent a culture programs its members to feel either uncomfortable or comfortable in unstructured situations (novel, unknown, surprising).
Uncertainty avoiding cultures try to minimize the possibility of such situations by strict laws and rules, safety and security measures.
Uncertainty accepting cultures, are more tolerant of opinions different from what they are used to; they try to have as few rules as possible
The assertive pole has been called 'masculine' and the modest, caring pole 'feminine'. The women in feminine countries have the same modest, caring values as the men; in the masculine countries they are somewhat assertive and competitive, but not as much as the men, so that these countries show a gap between men's values and women's values.
Dimension added by a Chinese study
Added subsequently to Hofstede Dimensions (Hofstede ’94)
Long Term Orientation: thrift and perseverance; strong propensity to save and invest.
Short Term Orientation:
focus on achieving quick results.
Innovation and entrepreneurship:
more individualistic and less uncertainty-avoidance national cultures tend to be more innovative and entrepreneurial
(Franke, Hofstede, and Bond, 1991)
*Correlation between collectivism and high-context
Source: The Silent Language (1959)
The Hidden Dimension (1966)
Beyond Culture (1976)
one thing at a time
organized and methodical
a chain of isolated successive blocks
usually also low-context
Source: Trompenaars and Hampden-Turner (1997)
Riding The Waves of Culture: Understanding Diversity in Global Business
Source: Trompenaars (1997) Riding The Waves of Culture
Trompenaars (2003) Did the Pedestrian Die
High-Low context cultures
Implications for management:
tend to do many things simultaneously
‘never-ending ocean extending in every direction’
Eg. Spanish, Arabs, South Americans
usually also high-context
- of Thought
- of Time
Westerners East Asians
Categories vs. relationships
Nisbett, R. & Miyamoto, Y. (2005). The influence of culture: holistic versus analytic perception. TRENDS in Cognitive Sciences, 9 (10): 467-473.
Nisbett, R. (2003), The Geography of Thought.
“perceptual processes are influenced by culture”
attend to the relationship between the object and the context in which the object is located
Favor reasoning that is:
-holistic view of the world
-focus on relationships
-focus on similarities
The Geography of Thought:
consequence of the influence of prominent philosophers over 2500 years ago.
Levine, R.V. (1998). A Geography of Time: The Temporal Misadventures of a Social Psychologist, Basic Books/Perseus, pages 187-206 (chapter 9).
Focus on a salient object independently of its context
Favor reasoning that is:
-based on rules and categorization
Ancient Greeks: emphasized freedom and individuality, viewed argumentation and criticism of others’ point of view as a way to advance knowledge
Ancient Chinese: concerned primarily with social harmony, therefore public criticism and disagreement were discouraged.
Relationships are the basis of
"Extreme present-orientedness, not the lack of income or wealth, is the principal cause of poverty"
Banfield (1968) The Unheavenly City.
In school children should behave according to
and temporal expectations
Example: Mexicans commuting daily to California
can switch back and forth between the two different times
"When entering the United States, he would feel his whole being switch to rapid clock-time mode: he would walk faster, drive faster, talk faster, meet deadlines." (pg. 190)
Temporal training programs
1. Punctuality: learn how to translate appointment time
2. Understand the line between work time and social time
3. Study the rules of the waiting game
4. Learn to reinterpret 'doing nothing'
5. Ask about accepted sequences
6. Are people on clock time or event time?
8. Don't criticize what you don't understand
(for Westerners -time is money cultures- for surviving in slower cultures)
What is the appropriate time to arrive for an appointment?
When should you expect others to show up?
What sort of apologies/excuses are expected and acceptable?
No apologies for not showing up. Why?
- People feelings are more important than accurate information
- Meaning of "yes" and "no problem"
How much time of the work day is spent on-task
and on socializing/chatting/being pleasant?
Japan: private time is not very relevant, socialization is an essential part of the job
- who is expected to wait for whom
- time is money?
- who should not wait
- what is the protocol for waiting in line?
"Is appearing chronically busy a quality to be admired or to be pitied?"
No plans, waiting for something to happen
stops along the way are as meaningful as the eventual destination
Meaning of silence
Take coffee/tea before getting down to business?
Man+woman having lunch together (alone) = love relationship
Love is necessary for getting married
ridiculous to make lifelong arrangement
based on an emotional reaction
Example HSG & Nobel laureate
understanding ≠ successful application
Training: no watch
for Peace Corps volunteers
Western need to make something happen,
to control time
GLOBE (2004): “shared motives, values, beliefs, identities, and interpretations or meanings of significant events that result from common experiences of members of collectives that are transmitted across generations”
Hofstede (1983: 89): "the collective programming of the mind which distinguishes the members of one group or category of people from another.“
Culture is learned and not inherited.
Source: www.youtube.com /watch?v=A3oIiH7BLmg
Name a company for each type of organizational structure.
It can be a well known company or a company you have worked for.
You can w
The set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, think about and react to its various environments
How cultures are embedded in organizations:
Design of physical space (i.e., offices)
Language, slogans, sayings
Training programs, role modeling
Stories, legends, myths
The cross-cultural adventures
of a young Westerner, leading expatriates in a Thai public school