Chapter 1
The seven people-centred practices:
1. Job security (eliminate fear of layoffs)
2. Careful hiring (emphasizing a good fit with the company culture)
3. Power to the people (via decentralization and self-management teams)
4. Generous pay for performance
5. Lots of training
6. Less emphasis on status (build a “we” feeling)
7. Trust building (through the sharing of critical information)
Note that these need to be combined in a package. It can be said that they focus on sustainability
like in nature, but on people. Firing people is seen as a last resort.
According to the book, organisations are: “A system of consciously coordinated activities or forces of
two or more persons.” With organizational behaviour being: “Understanding and managing people
at work.” This can be divided into three layers: individual, group, and organization.
Four significant landmarks in the history of OB:
1. The human relations movement
2. The quality movement
3. The internet and social media revolution
4. The age of human and social capital
First, the human relations movement. It started when employers needed new ways of handling
employees and behaviour scientists wanted more attention to the human aspect. One study coming
out of this was the Hawthorne Legacy. The results were that money, fear of unemployment,
managerial discipline, and high-quality raw materials were the results of the greater output.
A second study, the writings of Mayo and Follett (with Mayo being a female in a male-dominated
field), stated that the managers should create an environment in which employees wanted to work.
A “push” strategy rather than “pull”.
Third, McGregor’s theory Y, was based on assumptions. He first wrote the (negative) theory X:
1. Most people dislike work; they avoid it when they can
2. Most people must be coerced and threatened with punishment before they work. People
require close direction while working
3. Most people actually prefer to be directed. They tend to avoid responsibility and exhibit
little ambition. They are interested only in security
McGregor’s modern and positive assumptions about employees being responsible and creative is
called theory Y:
1. Work is a natural activity, like play or rest
2. People are capable of self-direction and self-control if they are committed to objectives
3. People generally become committed to organizational objectives if they are rewarded for
doing so
4. The typical employee can learn to accept and seek responsibility
5. The typical member of the general population has imagination, ingenuity, and creativity
However, both don’t seem to fit the current American workspace environment. For example, it is not
true that a satisfied employee is a hardworking employee per se. It did bring more attention to the
human aspect of employees, however.
Next, the quality movement. An important concept is the total quality management which states
that an organizational culture dedicated to training, continuous improvement, and customer
,satisfaction is important. Another, six sigma, refers to the mantra of “define, measure, analyse,
improve, control.” It is thus important that the customer is satisfied with the company and the
quality.
In this light, the Deming Legacy called for the following:
- Formal training in statistical process control techniques and teamwork
- Helpful leadership, rather than order giving and punishment
- Elimination of fears of employees so that they will ask questions
- Emphasis on continuous process improvements rather than numerical quotas
- Teamwork
- Elimination of barriers to good workmanship
According to this, in 85% of the cases the entire system is at fault and in only 15% of the cases an
individual employee is at fault.
The four common TQM principles include:
1. Do it right the first time to eliminate costly rework and product recalls
2. Listen to and learn from customers and employees
3. Make continuous improvement an everyday matter
4. Build teamwork, trust, and mutual respect
What once was e-commerce, is now e-business: “Running the entire business via the internet and
managing virtual teams.” It has limited communication costs while generating more user-generated
content. A danger that occurred is that businesses might be less clear with what they do with the
gathered data.
Knowledge workers are those who add value by using their brains
rather than the sweat off their backs. They are vital in the working
world as we know it today. They have more human capital: “The
productive potential of one’s knowledge and actions.” While social
capital is: “The productive potential of strong, trusting, and
cooperative relationships.”
The definition of management is as followed: “Process of working
with and through others to achieve organizational objectives,
efficiently and ethically, amid constant change.” Skills/mastery
exhibited by successful managers:
1. Clarifies goals and objectives for everyone involved
2. Encourages participation, upward communication, and suggestions
3. Plans and organizes orderly workflow
4. Has technical and administrative expertise to answer organization-related questions
5. Facilitates work through team building, training, coaching, and support
6. Provides feedback honestly and constructively
7. Keeps things moving by relying on schedules, deadlines, and helpful reminders
8. Controls details without being overbearing
9. Applies reasonable pressure for goal accomplishment
10. Empowers and delegates key duties to others while maintaining goal clarity and
commitment
11. Recognizing good performance with rewards and positive reinforcement
,One should manage people effectively with morale and can be both male or female. Keep in mind
that it is simpler than it seems. The contingency approach is as followed: “Using management tools
and techniques in a situationally appropriate manner; avoiding the one-best-way mentality.”
Ethics are the study of moral issues and choices. To
understand it further we need to look at various models.
To begin with the corporate social responsibility which is
defined as “The notion that corporations have an
obligation to constituent groups in society other than
stockholders and beyond what is prescribed by law or
union contract.” According to the corporate social
responsibility, the company should go above and beyond
to satisfy the stakeholders (including employees) above
making profit. It triangulates three important trends:
1. Economic globalisation
2. Expanding CSR expectations
3. Call for improved business ethics
The basis needs to be solid for everything to fall into place.
Second, the erosion of morality. To enhance ethics, companies should firstly remember that social
norms and conduct differ per place. Ethical lapses tend to occur more in lower-level employees, such
as lying on the resume in order to get the job. Lastly, intense pressure for results starts early.
Youngsters want to impress which leads to pressure making it harder to follow ethical ways.
Third, Callahan formed seven moral principles:
1. Dignity of human life – the lives of people are to be respected
2. Autonomy – all persons are intrinsically valuable and have the right to self-determination
3. Honesty – the truth should be told to those who deserve to know it
4. Loyalty – promises, contract, and commitments should be honoured
5. Fairness – people should be treated justly
6. Humaneness – actions should be ought to bring something good + avoid doing evil
7. The common good – actions should accomplish ‘greatest good for the greatest number of
people’
Fourth, how to improve an organizations ethical climate:
- Behave ethically yourself
- Screen potential employees
- Develop a meaningful code of ethics
1. Distributed to every employee
2. Supported by top management
3. Refer to specific practices and ethical dilemmas to the people doing ethically sensitive
jobs
4. Evenly enforced, compliments and punishment
- Provide ethics training
- Reinforce ethical behaviour
- Create positions, units, and other structural mechanisms to deal with ethics
- Create a climate in which whistleblowing becomes unnecessary
Whistle-blowing means reporting unethical/illegal acts outside third parties
Lastly, a personal call to action. Individuals should be morally attentive: “faithfully considering the
ethical complications of one’s actions.” And wanting to be ethical.
, Organisation behaviouralists gather their information following these types of research:
- Meta-analysis – much research pulled together
- Field studies – examining variables in the field
- Laboratory studies – manipulation and measurement of variables in contrived situations
- Sample survey – questionnaire responses
- Case study – one person in-depth
Chapter 2
The term for sexual harassment is: “Unwanted sexual attention that creates an adverse or hostile
work environment.”
The term for diversity is: “The host of individual differences that make people different from and
similar to each other.” Diversity comes in layers: personality, internal dimensions (age, gender, etc.),
external dimensions (income, appearance, etc.), and organizational dimensions (seniority,
management status, etc.).
Working with diversity can be a tricky thing, discrimination: “When decisions are based on factors
that are not job related” always awaits. Companies should therefore focus on affirmative action:
“Focusses on achieving equality of opportunity in an organization.” These actions are often more
negatively perceived by white males than females/minority groups because it goes against their self-
interest. Second, they are more positively perceived by Democrats/liberals. Lastly, these actions are
not supported by racists/sexist attitudes. However, studies have also shown that women who are
hired under an affirmation action often don’t feel good about it and feel like they’re being perceived
as unqualified or incompetent. Other studies show the opposite.
The term managing diversity means: “Creating organizational changes that enable all people to
perform up to their maximum potential.” It focuses on an organization’s culture and infrastructure.
Three key terms are: education, enforcement, and exposure. Besides for ethical reasons, managing
diversity is also important to unlock the full potential.
The first step might be to look at the workforce demographics: “Statistical profiles of adult workers.”
They show the organization’s possible shortcomings. The four managerial implications of four
demographic-based characteristics of the workforce are:
1. Women navigate a labyrinth after breaking the glass ceiling
2. Racial groups are encountering a glass ceiling and perceived discrimination
3. There is a mismatch between workers’ educational attainment and occupational
requirements
4. Generational differences in an aging workforce
To begin with women, they encounter a glass ceiling: “Invisible barrier blocking women and
minorities from top management positions.” Four key trends are connected to this:
1. Men start their careers at a higher level
2. Men report higher starting salaries
3. Men move up the career latter further and faster
4. Men had higher career satisfaction over time than women
These differences can be caused by: women facing discrimination, women spending more time on
domestic issues than men, women encountering more obstacles in their management career,
women collect less continuous work experience due to motherhood, women have less social capital
of personal network, and organizations have increased demand of hours + travel + relocation that
can conflict with domestic life. Although we’re not there yet, we have made big strides as women.
