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Organizational Behavior

Università della Svizzera italiana, Master in Management 2013

Sabrina Bresciani

on 21 February 2015

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Transcript of Organizational Behavior

Organizational Behavior
Sabrina Bresciani, Ph.D.
brescias@usi.ch; bresciani.sabrina@gmail.com
Social Information Process Model
Diversity issues
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...
i.e. ICRC
Managing diversity
"enabling people to perform
up to their maximum potential"
+ increase talent pool
+ creativity
+ serve diverse customers
Example: P&G
Equal Pay
Glass ceiling
Equal Pay Act 1963
Women salary 20% less TODAY
1. Overcome prejudice (training)
2. Enforcement
3. Exposure to people with different backgrounds (personal approach)

=> Mutual adaptation
Poor career planning
Unsupportive work environment
Work-life balance
No general approach
Consider individual differences
Individual inputs:
Ability, knowledge,
disposition, traits,
emotions, beliefs, values
Job context:
Physical environment
Task design
Rewards and reinforcement
Feedback and Coaching
Org culture, ....
Job (re)design
Goal setting
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 enlargement
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
Weak link!
Model of intrinsic motivation:
- 30% dispositional or genetic components!
- Need fulfillment: compensation, benefits,
job security, work/life balance
- Expectations
- Values
- 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)
Vroom 1964
"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
Satisfaction 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
affect outcomes
Managerial implications:
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
performance achievement
- Instruct
- Motivate
To correct, regulate
Built a roadmap to success
To support,
give sense of purpose
- Yourself
- Task
- Others
"43% of employees said they don't get enough guidance to improve their performaces"
Problem: self-serving bias
Upward feedback
superior to subordinate
Generally anonymous
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



- Timely
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
Joint agreement
Do not base pay and promotions on feedback only
Do not use feedback to punish
Do not forget to provide a solution
(Common mistakes)
Do not provide feedback too late
Types of reward
Distribution Criteria
Desired outcomes
1. Financial/material

2. Social (extrinsic)

3. Psychic (intrinsic)
Motivate (work harder/smarter)
Retain talented people
Recognition, impact
Salary, bonuses, benefits
Self-esteem, accomplishment,
sense of competence
1. Results

2. Behaviors

3. Other
Performances: quantity/quality
Teamwork, cooperation, creativity
Type of job, tenure, level in hierarchy
Common mistakes:
Emphasis on $
Lack of appreciation
Delay in reward
Counterproductive behavior is rewarded

Demotivating practicies
(i.e., layoffs, excessive executive compensations)
2. Individuals
Effective group dynamics
Ch 7
(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
Mintzberg (1973)
"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
Formal group
Informal group
Formed by the organization
(i.e., work group, task force)
Formed by friends or interest
i.e. Alumni
Accomplish complex, interdependent tasks
New/creative solutions
Coordinate interdepartmental projects
Solving complex problems
Train newcomers
The whole is greater than the sum of its parts
Need for affiliation
Identity, self-esteem
Test/share perceptions
Reduce anxiety and insecurity
Support for personal problems
Theory of group development (Tuckman 1965)
Lesson learned
"expected behaviors for a given position"
Go beyond job description duties
i.e., help co-workers, motivate, suggest improvements
Task roles:
Maintenance roles:
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
Developed from:
- statements
- 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
collective outcomes
Develops purpose and mission
Leadership is shared
Self-managed teams
Threats to Effectiveness
Social Loafing
Virtual teams
Cisco Systems: 30% of top executive yearly bonuses based on how well they collaborate with others
Techniques to improve internal functioning of teams
Greater cooperation
Better communication
Less dysfunctional conflict
Experiential learning

Off-site gatherings
conflict role-play,
competitive games, etc.
hiking, sailing, etc.
"reciprocal faith in others' intentions and behaviors"
We tend to give what we get
How to build trust:
1. Communication
2. Support
3. Respect
4. Fairness
5. Predictability
6. Competence
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)
Self-managed teams
General attitude
Absenteeism, turnover
"Group members in different locations who conduct business using information technology"
Save resources
Diverse workforce
Weaker trust
"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)
1. Invulnerability
2. Inherent morality
3. Rationalization
4. Stereotyped views of opposition
5. Self-censoredship
6. Illusion of unanimity
7. Peer pressure
Excessive optimism
and risk taking
Ignore ethical implications
Underestimates opponents
"The fear that everyone else knows more, so I'll just go along"
Silence interpreted to mean consent
Loyalty of dissenters is questioned
Janis 1982
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
(motivational loss)
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)
for strategizing
Source: http://research.microsoft.com/towards2020science/background_overview.htm
www.nature.com March 23, 2006, vol.440
Decision Making
Ch 13
"Decisions are the essence of management"
T. Steward, editor of HBR
(1) Identify
a problem
(2) generate alternative
(3) select
(4) implement and evaluate
Historical cues
Scenario technique
Others' perception
Optimal: alternative with the greatest value

Preferences: risk, ethics
If not successful:
problem not correctly identified
solution inappropriate
"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
Bounded Rationality
Decision makers are "bounded" or restricted by a variety of constraints when making decisions
Judgmental heuristics
"Rules of thumb or shortcuts that people use to reduce information-processing demands"
Systematic mistakes when making decisions associated with
Knowledge Management
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
KM software
(i.e., wikis)
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
innovative company
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
Minority dissent:
most innovative groups have high level of minority dissent and participation
Ch 9
Constructive (or functional) conflict
serves organization's interests

Conflict avoidance negatively impacts
organizational effectiveness

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
different background
i.e., finding the right words,
pictures, non-verbal cues...
(1) Personal

(2) Physical

(3) Semantic
communication skills, information processing, trust, prejudice, listening skills
office design,
time zone differences
= meaning of words
i.e.: "We need to complete this project right away"
Communication Styles
"timid and
self-denying behavior"
"expressive and
take unfair advantage
of others"
"expressive and
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
Downward glance
Weak voice
Taking advantage of others
Too close
Pointed finger
Loud voice
Abusive language
Threats and put-downs
Internet /Intranet
emails, IM
Social Media (Web 2.0)
George Bernard Shaw
Knowledge Visualization:
1. Sketches
2. Diagrams
3. Metaphors
4. Knowledge Maps
5. Interactive Visualizations
Concept maps
What else?
Are you my friend? Yes/no
Company case: Shell
Ch 10
Organizational Structure
Contingency approach
(1) Functional
(2) Divisional
(3) Matrix*
(4) Horizontal
(5) Hollow
(6) Modular
(7) Virtual
or customer type
or location
Work divided according to:
dual reporting structure
(i.e. product and function)
cross-functional teams
responsible for the entire process
outsource functions
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:
GLOBE study
1. Context
Course structure:
Grading & Assignments
Required readings
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
See Syllabus
of Organizational Behavior
What it is
What it is not
MAP Organizational Behavior
Ethical Behavior of MNC
Market barrier
Marketing strategy
"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
Theory X
Theory Y
People dislike work
require close supervision
are primarily interested in security
Employees are capable of self-direction
seeking responsibility
being creative
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
15% workers
1. Do it right the first time
2. learn from customers and employees
3. make continuous improvements
4. build teamwork, trust, mutual respect
Contingency Approach
Using management tools and techniques in a situationally appropriate manner, avoiding the one-best-way mentality
Human and Social capital
E-business revolution
Productive potential resulting from:
knowledge and action
, goodwill,
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
= feminism
Fundamental attribution bias
Self-serving 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!
Ch 15
Change, Learning and KM
Low job satisfaction
Low productivity
High turnover
Investor pressure
Human resource problems
Managerial behavior, decisions
outward, measurable
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 information
New behavioral models
New processes/procedures
New equipment
New technology
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
Learning Organization
Yesterday‘s competitive advantage is becoming the minimum entrance requirement for staying in business
To improve and stay ahead of competitors
Ch 14
Influence and Power
Key to Persuasion:
6 Persuasion Principles (Cialdini)
The Principle of : LIKING

“People like those who like them”

The application:

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”

The application:

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”

The application:

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”

The application:

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”

The application:

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”

The application:

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
Impression management
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
Role models
job performance
job satisfaction
low turnover
negative effect
Sharing power with lower-level
employees to tap their full potential
Always positive?
Employees vary in terms of how much empowerment they desire.
Some like to have responsibilities, others don't.
Participative Management
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
working late

*cross-cultural differences
- Avoid additional work/ transfer/promotions
- obtain rewards: pay rise/ transfer
- exit: seek get laid off (unemployment)
- power: manipulate, intimidate others
Forces of change
big picture
cascading effect
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

Permanent contacts:
You are consultants hired by a start-up
social enterprise*.

Your task is to develop a strategy for a
learning center (after school/college)
in Cambodia
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:
and emotions

Ch. 1
Ch 2 & 3
Ch 5 & 6
Ch 4
Ch 8
Ch 9
Ch 17
Historical development
Ch 13
Ch 15


the course
Learn management best practices
based on scientific evidence

Get a more systematic and comprehensive understanding

Avoid typical mistakes

Improve yourself
(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
Why "organizational"?
"scientific management"
'one best way'
workforce left on their own
to develop working methods
=>ineffective rules of thumbs
higher output
optimization of tools
replacement of skilled workers with non skilled
thinking is for managers, workers only work

at Ford: doubled the wages
->creating customers
any problem?
Henri Fayol
in France
'invented' the concept of management
Management principles:

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
Elton Mayo
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,
conflict, experience
Organizational metaphors
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
Ecological approach

Institutional approach

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
social businesses
Research methods
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
for updates
Psychological testing
Locus of control
attitudes and behavior
emotional intelligence
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
be supportive
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
your self-efficacy
don't even try
put less effort
finds excuses
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
accept dependency
have less need for information
more compliant

seek a directive style
routine and clarity increases motivation
go beyond job requirement
need information
stronger motivation

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
external influences
work environment
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!
diversity/cultural differences

-> 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
Four components:
Can it be measured?

With an IQ test?

-> inferred through
educational achievement
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"
explains why
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
2. self-management

3. social awareness

4. relationship management
control impulse,
delay gratification
empathize, recognizing needs
developing others
Emotional contagion
- 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
emotional appeals
BUT "organizationally required emotions" lead to stress
i.e., look happy for the customer
Your results
English skills
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
Source: http://www.smartmoney.com/map-of-the-market/
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)
Source: http://www.bashiba.com/movies/PANORAMA_OCT_07.wmv
Information Visualization
Case: Open System Inc., Zurich
Visualizing financial information
Source: http://news.bbc.co.uk/2/hi/uk_news/magazine/8381597.stm
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!
Nancy Duarte
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
Source: http://darmano.typepad.com/logic_emotion/visual-thinking-synthesis.html
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
-visual metaphors
- cartoons
- animations
-special effects

Managers spend 59% of their time in meetings
and >80% of their time communicating
Online calculator:
Let's practice
Make a SWOT analysis of yourself
for a potential employer
Choosing the medium
What is the purpose of communication?
convey information
build/maintain relationships
and hierarchy/status
(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,
ascribed status)
Dimension: collectivism

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
for organizing
+ power!
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
Language pockets
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)
(Clegg 1989)
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
Merita-Nordbanken case
"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."
Body movements
and gestures
Facial expressions

Tip: avoid gestures
honesty vs. hiding emotions
Eye contact
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
Personal space
Open doors
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


Open it?
(and comment?)
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
Communicating strategy
- 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?
Culturally dependent:

pay, promotion

social benefits

job security




quality of life

collectivistic cultures
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
motivates simultaneously

-Frustration-regression hypothesis:
move down when you cannot move up
*cultural differences
McClelland's need theory
Need for:
- achievement

- affiliation

- power
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?
Ch 7
Social networks
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
team spirit
solving tasks
(sense of loss)
different types of management are needed
in the different phases
from directive to participative and supportive
Role conflict
conflicting demands
i.e., ethical but disloyal
work and family
Group size
Which is the optimal group size?
for decision quality: less than 5
for brainstorming/creativity: up to 12

for decision making: odd numbered
Asch effect
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
Team size:
min 2
max 25
effective if <10
Should you concentrate talented people in teams
or spread them around?
= high and low-ability people in each team
Research evidence:
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
Hidden agendas

Lack of understanding

Lack of leadership

Wrong mix of team members

Unhealthy environment
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
Team level
Management level
team work
Cooperation (not competition) should be encouraged
Measuring readiness for teamwork

KSA scale
(Knowledge, Skills, Abilities):
-conflict resolution
- collaborative problem solving
- communication
- goal setting and performance
- planning and task coordiantion
cohesiveness performance
(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?

Managing conflict
stimulating functional conflict
handling dysfunctional conflict
Devil's advocate

Dialectic method
Typical mistake: avoiding conflict
1) integrating
2) smoothing (=emphasizing commonalities)
3) compromising
4) dominating
+ fast
- resentment
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?
kill people?
kill animals?
cheat taxes?
death penalty
India's sacred cow
10 commandments
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)
Critical incident
"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."
Chinese student
from a Chinese perspective:
aka Carnegie Model
Use analytic strategies (aided or unaided)
Influence Tactics
1. Rational Persuasion
2. Inspirational appeals
3. Consultation
4. Ingratiation
5. Personal appeals
6. Exchange
7. Coalition
8. Pressure
9. Legitimacy
participate in planning and decision making
getting someone in good mood
prior to making a request
referring to a friend and loyalty
promises/trading favors
getting others to support your effort in persuading
demanding compliance/intimidation
authority/rules/support from superiors


1. Dimensions
- Hofstede
- Hall
- Trompenaars
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
Citation Index)
Why Hofstede?
Noted that each culture had a dominant orientation
Hofstede, G. (1984) Cultural Dimensions in Management and Planning, Asia Pacific Journal of management

Power distance

Uncertainty avoidance

Source: http://www.geert-hofstede.com/
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)
Problematic measurement

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
Eg. Germans
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
and Hampden-Turner
2. Geography
- 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”
East Asians:
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
East Asia
Temporal illiteracy
awkward and
embarrassing situations
"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
sequential directions
and temporal expectations
Temporal flexibility
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
Eight lessons:
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?
7. Practice
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?
Saudi Arabia
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?
U.S.: 80:20
India/Nepal: 50:50
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
constant activity
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
(East Asia)
US: 80%
India: 24%
Thailand: 34%
Pakistan: 39%
ridiculous to make lifelong arrangement
based on an emotional reaction
Clock time
Event time
Example HSG & Nobel laureate
understanding ≠ successful application
Training: no watch
'simulated village'
for Peace Corps volunteers
Western need to make something happen,
to control time
pg. 203
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.
Organizational culture
International culture
Ch 12
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:
Formal statements
Design of physical space (i.e., offices)
Language, slogans, sayings
Training programs, role modeling
Explicit rewards
Stories, legends, myths
Time: monochronic-polychronic

Time orientation
Case study
The cross-cultural adventures
of a young Westerner, leading expatriates in a Thai public school
Full transcript