For enghanyez

 

Organizational Culture Analysis

Symbols of culture are called artifacts. Artifacts are the most visible and accessible level of culture. These include behaviors, stories, rituals (everyday practices that are repeated frequently), and symbols (e.g., company logos, company colors). For example, the president of a company volunteering at Habitat for Humanity is an artifact of culture. An example of symbols as an artifact of culture is Ashford University’s shield that serves as our logo and is printed on transcripts, diplomas and letterhead paper. Submit a two- to three-page paper (excluding the title and reference pages) describing the culture of either your current or past place of employment.

Your paper should provide examples of and address each of the following topics:

  • Observable artifacts
  • Espoused values (These are what organizational members say they value, like ethical practice.)
  • Enacted values (These are reflected in the way individuals actually behave.)


In addition, describe how each item listed above impacts the values and culture of the organization.

Your paper must use a minimum of two scholarly sources, in addition to the textbook. Your paper must also follow the APA Style guide.

 

 

 

Chapter One Introduction to Organizational Behavior

Learning Objectives

After reading this chapter and studying the materials, you should be able to:
Travelpix Ltd/Photographer’s Choice/Getty Images
lDescribe the essence of organizational behavior. lExplain how historical events and business trends shaped the field of organizational behavior. lRecognize the key interpersonal skills that apply to today’s business environment. lIdentify additional trends that have affected the field of organizational behavior.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 1 of 79
4/14/2015

Print
Learning Objective #1:
What is the essence of organizational behavior?
1.1 The Nature of Organizational Behavior
In this first chapter, four primary topics are explored. First, we provide an overview of organizational behavior along with a review of historical and modern trends that influence the field. A brief presentation of the disciplines that are related to OB follows. Next, we present an analysis of the interpersonal managerial skills that are vital to individual success. The chapter concludes with an evaluation of the context in which business currently operates. These concepts set the stage for all of the parts and chapters that follow.
OBIN ACTION: AFLAC The Duck Stops Here

Arguably one of the most ingenious advertising campaigns launched in the United States in recent years has been the Aflac duck program. A company with little name and brand recognition moved to practically cultural icon status. Aflac offers far more than a creative and sophisticated marketing program: The company exemplifies many of the best employment and business practices. A culture built on a powerful ethical foundation has helped Aflac become an international force in the insurance industry.
The primary Aflac product, supplemental injury health insurance, can be purchased from a

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 2 of 79
Managers in organizations engage in a variety of activities every day, among them supervising and directing employees. Organizational behavior concentrates on the people side of a business, nonprofit, or governmental entity. Organizational behavior concepts are designed to help a company or nonprofit fulfill its potential by creating a satisfying and positive environment that leads to profitability, growth, and other measures of success, thereby connecting the human element with the operational elements of an organization.
Organizational behavior (OB) may be defined as the investigation of the behavioral factors that affect modern organizations and their management at the individual, group, and organization-wide levels. This textbook examines factors that dictate success (or failure) in the world of commerce at each level.
4/14/2015

Print

Richard Drew/Associated Press The Aflac duck visited the floor of the New York Stock Exchange in 2010. Aflac celebrates its strong ethical and employee-centric foundation.
variety of vendors other than Aflac; however, Aflac has grown to become the number-one provider of guaranteed-renewable insurance. The insurance pays extra bills not covered by major medical health insurance reimbursements. Aflac insurance serves as asafety net for someone who has been injured on or off the job and cannot work as a result, allowing an employee to focus on recovery rather than financial problems.
One of the driving forces in the success of Aflac has been CEO Dan Amos. During a period in which executive salaries were exploding, Amos posted his proposed compensation package to all internal and external publics. He then asked the company’s stockholders to cast votes on whether his projected contract was reasonable. The pay package consisted of a $1.2 million salary, $2.5 million as a bonus, and an additional $2.5 million in stock bonuses. The same year (2005), Home Depot CEO Bob Nardelli received a $210 million exit payment after being fired for poor performance.
Amos explained his approach by stating that everyone in the organization should believe in a strong link between pay and performance. Even though the stockholder vote on his compensation was nonbinding, Amos agreed to abide by the outcome.
Aflac offers a generous and far-reaching benefit program. It includes health insurance, pension options, and child care.Forbes magazine named Aflac as one of America’s Best-Managed Companies in the Insurance category in 2011. Fortune magazine recognized Aflac as one of the 100 Best Companies to Work For in America for the thirteenth consecutive year and was on its list of Most Admired Companies for the tenth time in 2011. Hispanic magazine included the company in its list of the top 100 firms for Hispanic workers for the twelfth time in 2011.
The prestigious Ethisphere Institute think tank, which is dedicated to the creation, advancement, and sharing of best practices in business ethics, corporate social responsibility, anti-corruption, and sustainability, named Aflac one of the most ethical companies in the world, for the fifth time in a row, in 2011. The award was presented to 43 companies in 38 industries globally.
This recognition occurred as the company encountered some turbulence. Comic Gilbert Gottfried had been the “voice” of the Aflac duck since the inception of the campaign. When

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 3 of 79
4/14/2015

Print
Gottfried made unsavory comments about the Japanese tsunami and its aftermath, his contract was quickly terminated. In Japan, Aflac is the number-one insurance company in terms of individual insurance policies in force.
Currently, Aflac insurance products provide protection to more than 50 million people worldwide. The strong ethical and employee-centric environment present in the firm will certainly lead to continuing success in the United States and abroad (Aflac.com, 2011; Clow & Baack, 2011).
Questions for Students

1.Do you believe Dan Amos’s compensation package was fair? 2.What factors constitute an “ethical environment”? 3.If Aflac were not growing and making profits, how should the leadership of the company change?

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 4 of 79
4/14/2015

Print
Learning Objective #2:
How have historical events and business trends shaped organizational behavior over the past century?
1.2 Historical Overview and Current Trends in OB
The fields of management and organizational behavior have evolved over time, from relatively straightforward ideas about increasing productivity to complex modern approaches. Historically, the scientific management approach was at the forefront of the study of the field of management. It was followed by the human relations movement and the subsequent transition to modern organizational behavior. Scientific Management
Within a decade, mechanical engineer Frederick W. Taylor (1903/2010) developed the principles of scientific management, an approach that merged classic scientific principles with what was known about the practice of management. The four principles are displayed in Table 1.1. The use of these principles produced dramatic increases in productivity levels of individual workers. By analyzing work scientifically, selecting workers scientifically, achieving greater levels of cooperation between labor and management, and sharing levels of authority between them, several firms, including the Ford Motor Company, realized increased productivity and profits.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 5 of 79
Organizational behavior is a subfield of the larger field of management. Historians trace the beginnings of the field of management to 1886, when Henry R. Towne (1886) presented a paper entitled “The Engineer as Economist” to the American Society of Mechanical Engineers. The article argued that the study of management was equal in importance to the study of engineering, and therefore the field should create its own body of research and have its own professional organizations (Bedeian, 1986).

©Photos.com/Getty/Thinkstock Critics argued that the principles of scientific management dehumanized employees and created sweatshop-like conditions.
At the same time, however, criticisms emerged that the program dehumanized employees and created
4/14/2015

Print
Table 1.1: Taylor’s four principles of scientific management 1.Development of a true science of managing with clearly stated laws, rules, and principles that replaced rule-of-thumb methods.

The Hawthorne Studies
2.Scientific selection, training, and development of workers for specific jobs.
3.Cooperation with workers to make sure work is completed using scientific principles.
4.Equal division of tasks and responsibilities between workers and management.
Adapted from A. G. Bedeian (1986). Management. Chicago: The Dryden Press.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 6 of 79
sweatshop-like conditions. The labor movement achieved dramatic legislative gains during the scientific management era, as the United States government and individual unions sought to protect workers from unfair management tactics, such as the use of child labor, pay scales not sufficient to maintain a standard of living, and abusive supervisors (Majority Report of the Sub-Committee on Administration, 1912).
During the early 1900s, Frank and Lillian Gilbreth (1915) incorporated the principles of scientific management into their time and motion study. By observing work performance using film and a stopwatch they designed more efficient methods to complete tasks. Of note, one governmental response to scientific management was to ban the use of a stopwatch to measure work output. Legislators argued it placed undue pressure on workers, almost as a form of coercion (Bedeian, 1986).
During the same time period, Henri Fayol (1916/1949) wrote in his native French about the importance of the classic management functions of planning, organizing, staffing, directing, and controlling. The ideas paralleled the principles of scientific management in the United States and became widely implemented throughout Europe. The Human Relations Movement
The field of organizational behavior only recently emerged from other aspects of management. Some of the origins of organizational behavior are credited to Mary Parker Follett, who questioned the wisdom of scientific management. She argued that the system ignored the human element of organizations. Follett believed that improved communication between parts of a company could be created by increasing employee participation in the direction of the firm, especially when workers were given autonomy and assigned into cross-functional teams to work together on projects. Follett concluded that managers should serve as coaches and facilitators rather than as monitors and supervisors, which became the basis of the human relations movement (Tonn, 2003).
4/14/2015

Print

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 7 of 79
The human relations movement in management began in earnest in 1927. Researchers Elton Mayo and Fritz Roethlisberger conducted the Hawthorne Studies, focusing primarily on people rather than solely on productivity. In the studies, the researchers altered different factors, most notably the level of lighting, to determine the effects on worker productivity. The primary findings of the research project were as follows:
1.The subjects responded to positive and pleasant interactions with researchers by increasing productivity rates on the job. 2.Some of the tasks performed by supervisors were eventually assumed by entry-level employees, who also generated higher levels of production, because the workers found the experience to be “fun” and free of anxiety about being disciplined for poor performance. 3.Workers tended to form groups that were cohesive and loyal to one another. Anyone who overproduced became a “Slave” or “Speed King” who was derided and even physically punched in the arm (“binging”) by group members. Anyone who failed to do his fair share of work was labeled a “Chiseler” and admonished to keep up with the group.
Mayo and Roethlisberger concluded that workers are motivated by more than money. Social interactions constitute a key part of the organizational experience. Individual attitudes and collective employee morale were significant determinants of productivity levels. The writers suggested company managers should account for human emotions and interactions to achieve higher levels of success (Urwick, 1960; Bedeian, 1986). Abraham Maslow and Humanism Figure 1.1: Maslow’s The field of organizational behavior has been shaped, in part, by the hierarchy of needs field of psychology. The classical approach to psychology included the belief that human nature was essentially weak and prone to evil (Hjelle & Ziegler, 1981). Clinical psychologist Abraham Maslow was among the first to shift views on the nature of human beings. Maslow was a proponent of the belief that the basic inner nature of a person is inherently good, a perspective which became known as humanism. In the hierarchy of needs theory, Maslow expands the argument by suggesting that life is the process of “getting better.” Throughout the hierarchy, each new stage leads to a greater concern with connecting to, assisting, and serving others. The ultimate expression of life, known as self-actualization, results from performing helpful and meaningful work while staying true to one’s own sense of self. From Maslow, Motivation and Personality, 3rd ed. Copyright©1987. Reproduced by permission of Pearson Learning, Upper Saddle River, NJ. Maslow’s writings influenced the fields of psychology, socialMaslow’s hierarchy of needs suggests that people continually “get better” at each stage, by building

4/14/2015

Print

Maslow’s Hierarchy of Needs
Table 1.2: McGregor’s Theory X and Theory Y
relationships and seeking to help others as part of one’s life work.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 8 of 79
psychology, sociology, marketing, management, and organizational behavior. Much of the research and theory-building that took place in the years following the publication of the hierarchy of needs includes humanist assumptions. In essence, scientific management, which relied on money and fear as primary motives, was being supplanted by newer, more positive views of employees. Human relations theories incorporate the concept that positive employee attitudes, combined with praise and recognition by supervisors and interesting work, can contribute equally to workplace motivation and productivity (Maslow, 1954/1998). Douglas McGregor and Theory X/Theory Y
Perhaps the most insightful book related to the field of organizational behavior is Douglas McGregor’s The Human Side of Enterprise. Leadership is one key focus of the book. McGregor proposes two companion theories, summarized in Table 1.2, that crystallize the differences between scientific management and the human relations movement. Theory X expresses the negative assumptions leaders have about their followers; for example, that they want to avoid work and responsibility. The logical conclusions managers would draw would be that they should use fear or money to motivate employees. Theory Y represents the opposing perspective, in terms of both assumptions and conclusions made by leaders: for instance, that it is natural for people to want to work, and that motivation comes from within.
4/14/2015

Print

Assumptions of Theory X
1.People dislike work.
2.People avoid responsibility.
3.People prefer direction.
4.Most people have little ambition.
5.Given the opportunity, employees will generate ideas to help themselves and the company.
Conclusions of Theory X
1.Leaders should be production-oriented.
2.Employee motivation is derived from money and fear.
Assumptions of Theory Y
1.Wanting to work is natural.
2.People seek responsibility.
3.People enjoy autonomy.
4.Most people are only partially utilized in terms of talents and abilities.
Conclusions of Theory Y
1.Leaders should be people-oriented.
2.Motivation comes from within the individual.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 9 of 79
McGregor believed that the Theory X leadership style was ineffective, because workers would be underutilized and their potential contributions would be lost. He argued that Theory Y leaders unleash human potential and would succeed in the long term. The human relations movement became the dominant focus of management theory from approximately 1930 to 1960.
As the world began to change, influenced by improvements in technology, increasing globalization, and other trends, it became apparent that what the Gilbreths called the quest to identify the “One Best Way” was impossible. Workplace situations are complex and differ from one another. Consequently, neither the scientific management approach nor the humanistic vantage point can provide complete answers. This has led to new ideas and concepts about how to manage employees in the modern era. Modern Management and Organizational Behavior
During the 1950s, 1960s, and early 1970s, a series of political, social, and technological trends impacted the academic world and the world of commerce. Laws regarding discrimination were enacted, issues regarding gender equality arose, and the government underwent a great deal of scrutiny, most notably as a result of the Vietnam War and the Watergate scandal. Social trends were impacted by the baby boom generation and its insistence on greater freedom. Technology played a major role in shaping the nature of research and the methods used to conduct business. Computerization, miniaturization, and
4/14/2015

Print
robotics dramatically influenced the workplace and the classroom.
Systems Theory
Figure 1.2: A system

Chester Barnard developed systems concepts, which later became systems theory. Systems theory demonstrates how an interrelated set of parts evolves into a holistic process.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 10 of 79
The field of organizational behavior evolved with the times. In the 1950s, the related college course was often called “industrial psychology” and was taught in psychology departments. As the content moved into schools of business, the most common name for the class was “human relations.” The overall practice and study of management and organizational behavior were influenced by two concepts: systems theory and contingency theory.
Chester I. Barnard introduced systems concepts to the practice of business. Barnard (1938/1968) believed organizations consisted of a series of physical, biological, personal, and social components that form into a cooperative system that pursues distinct goals and ends. Later, systems theory conceptualized an organization as a set of interrelated parts working together in a holistic fashion. Figure 1.2 portrays a system. The model applies to biological, mechanical, and social systems.
In a business system,inputs include raw materials, financial resources, and human resources. The transformation process is the company’s production function, including the assembly of physical products and the delivery of intangible services. Outputs are the finished, final goods and services sold to the public. The feedback mechanism provides correction and adjustment, keeping the organization in tune with its environment. Control systems, such as performance appraisals of individual employees and annual accounting statements for overall companies, are feedback mechanisms.
4/14/2015

Print
Contingency Theory
If one phrase summarizes contingency theory, it might be, “There is no one best way to manage.” In organizational behavior, no one best motivational system, leadership style, or form of organizational structure and design exists. Instead, If → then approaches to management are required. Many of the theories that have evolved in organizational behavior reflect contingency thinking, where managers adapt to the situation, company, employees, and other circumstances.
Beginning in the 1950s, systems theory and contingency theory set the stage for a new era in management and organizational behavior theory-building. New trends that emerged included total quality management and positive organizational behavior.
Total Quality Management
ltraining in statistical process controls lincreased and improved teamwork lpositive and helpful leadership instead of order giving and punishment

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 11 of 79
Two major developments emerged from systems theory: first, the concept that organizations constantly change, and second, that organizations must adapt to the larger environment to continue operations. Prior to systems theory, firms were often viewed more as a snapshot than as a moving picture. For example, Twitter at its inception was a far different organization than its current form. A single image would not suffice to describe the company.
The need to adapt to the environment led to biological analogies. The first, the life-cycle concept, suggests that organizations are born, grow, reach a maturity stage, and eventually decline and die. The second, natural selection, notes that organizations that do not adapt to the environment will be selected out. These concepts apply to management, marketing, and organizational behavior. Employees are biological systems and go through life-cycle phases. Workers with skills not suited to the economic environment cannot find jobs, which means they are selected out.
In the 1980s the business world witnessed an increasing emphasis on product quality. A concept created in the United States migrated to Japan, where it flourished and changed managerial thinking. Total quality management (TQM) emphasizes “continuous, customer-centered, employee-driven improvement,” according to Richard J. Schonberger (1992), and also requires a shift in a company’s overall culture.
TQM was made popular in Japan by mathematician W. Edwards Deming (1986), who sought to reduce variations in quality, both in manufacturing and human operations. In the production department, the goal of zero defects was established. On the human side, Deming’s methods include:
4/14/2015

Print
lemphasis on continuous improvement lfinding methods to improve workmanship
Deming’s approach combines elements of scientific management (the careful study of methods to reduce defects) with human relations by building teamwork, inspiring trust and respect, and making quality a matter of personal importance to employees. The TQM emphasis on quality and continuous improvement led to the development of new programs in the United States and Japan. The focus shifted to improving the quality of both products and the workplace experience.
Positive Organizational Behavior

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 12 of 79
The positive psychology movement began in the late 1990s. The primary elements of the approach seek an increased focus on the building of human strength. The perspective was translated from the field of psychology to the field of organizational behavior by Fred Luthans. Instead of the quick-fix self-help approaches often found in the popular press, positive organizational behavior seeks to identify human resource strengths and capabilities that can be measured, developed, improved, and managed. To do so, positive organizational behavior is built on the principles summarized by the acronym CHOSE, or
1.Confidence and self-efficacy: I believe I control my own destiny. 2.Hope: I think there is a good chance I will make my numbers this year. 3.Optimism: Even though our team is being asked to do more with fewer resources, we can use this as a chance to shine. 4.Subjective well-being: Each situation requires a unique response. 5.Emotional intelligence: The ability to adapt to change and environmental turbulence.
A positive work environment can be built in which managers are approachable and employees feel free to express ideas and seek to develop their full potential. This bodes well for every aspect of their organizational lives, and includes achieving personal success while increasing company profitability and growth.
The positive psychology movement has roots in concepts such as open-door management, wherein managers offer access to employees, who can ask questions or discuss ideas or problems. It incorporates an emphasis on employee participation as well as Theory Y. Positive psychology emphasizes nurturing and empowering employees.
The history of the field of management and of organizational behavior have revealed that an “either–or” approach cannot succeed. A manager cannot focus solely on production or exclusively on human resources. Following the scientific management era, the human relations movement tipped the scales to the extreme opposite direction in favor of concentrating on workers. In the more modern era, methods such as total quality management and positive organizational behavior seek to achieve a balance
4/14/2015

Print
between every aspect of organizational life in order to produce the highest level of success. Related Disciplines
Psychology
Social Psychology
lpsychology lsocial psychology lsociology lorganization theory lhuman resource management lhistory lresearch methods and statistics lanthropology
Each contributes unique insights into the study of methods used to improve individual and organizational performance.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 13 of 79
The termhybrid field, which means that those who study the topic will encounter concepts and theories generated in a variety of academic disciplines, is commonly associated with organizational behavior. The study of organizational behavior in the modern context requires a modest understanding of concepts generated in the following fields:
Psychology, the study of individual mental processes, profoundly influences the field of organizational behavior. Psychologists examine many factors that are part of organizational life, including stimuli, perception, learning, personality, and motivation. By understanding how stimuli are perceived, attention-getting factors associated with learning can be designed to improve training programs and create effective workplace safety practices. Perception affects the subsequent development of the attitudes, beliefs, and values that shape citizenship within the firm. Several motivation theories that apply to the workplace were developed or influenced by psychology.
Social psychology, or the examination of social factors that influence individual mental processes, includes a sweeping number of topics that overlap with organizational behavior. Roles and role theory, teams and groups, decision-making processes, leadership, and communication are topics studied by both social psychologists and organizational behaviorists. Recent contributions made by social psychology to the field of organizational behavior include the concepts of social information processing and the nature of inclusive/exclusive language that can be used to alienate or discriminate against others.
4/14/2015

Print
Sociology
Sociology is the study of social organizations. Organizational design and structure, roles, and teams and groups are subjects that sociology and organizational behavior have in common. Many of the classic principles of organizational structure first appeared in the writings of sociologists, including Max Weber and Peter Blau.
Organization Theory

A strong overlap exists between sociology and organization theory due to their emphasis on organization design issues. The primary difference is that organization theory approaches the topic from a stronger business perspective. In both sociology and organization theory, the organization constitutes the primary unit of analysis rather than individual employees, teams, or groups.
Human Resource Management
History
Research Methods and Statistics

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 14 of 79
George Doyle/Thinkstock Sociology, psychology, social psychology, and anthropology all influence the field of organizational behavior.
Human resource (HR) management and organizational behavior share a parent field: management. Each area (HR and OB) is a management specialty. Both examine the subjects of job design, union– management relationships, and job satisfaction, including the indicators of satisfaction (rates of absenteeism, tardiness, turnover, accidents, grievances, and vandalism) in the workplace. Many organizational behavior research efforts aim at improving job satisfaction and its indicators.
The role of history in organizational behavior is related to context. Many leadership theories, for example, emerged as a result of a heightened interest in the topic during World War II. The ability to conduct more sophisticated research emerged from the development of computer technology and the Internet.
Research methods and statistics programs seek to generate high-quality experiments and empirical investigations of constructs, postulates, hypotheses, and theories. A construct is a term that is used to represent an unobservable process. Motivation and learning are constructs that cannot be seen, but
4/14/2015

Print
Anthropology

Paul Sakuma/Associated Press The collective behavior of the people working in an organization and the overall culture of the work environment are called organizational culture. A company’s culture usually begins with a founding story, such as Mark Zuckerberg’s creation of Facebook.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 15 of 79
that still take place. In organizational behavior, a quality research project includes reliability, or consistently repeatable measures of variables, along with validity in findings that can be generalized to other groups.
A research study that finds employees who work the third shift in a hospital are more dissatisfied with their jobs than those working the first or second shifts exhibits reliability when the measures of the construct “job satisfaction” can be repeated and obtain the same results. The study has validity when the finding (greater dissatisfaction is present) can be transferred to employees in other settings, such as thirdshift workers in manufacturing plants, restaurants, and hotels. Knowledge in the field of organizational behavior advances through quality research.
Anthropology contributes to organizational behavior through the emphasis on concepts such as organizational climate and culture. Theclimate, or prevailing atmosphere within an organization, dictates whether employees feel relaxed and accepted or stressed and fearful. Internal and external forces can change the climate of a company. An external factor such as a recession can cause organizational members to worry about losing their jobs and lead supervisors to exhibit a more directive management style. An internal change in climate results when top managers leave. Each new executive will imprint his or her personality on the organization, thereby causing a shift in the firm’s environment.
Anthropological methods include the “researcher as participant” form of inquiry. Classic studies by John Van Mannen in a police department and Rosabeth Moss Kanter in a major corporation have added new insights into what happens in the workplace (Van Maanen, Dabbs, & Faulkner, 1982; Kanter, 1977). Both argue that organizations should be studied from within rather than by using constructs imposed from outside.
Another anthropological element, culture, also impacts organizational behavior. Culture at the national level influences many companies. The operation of a firm in Japan will likely be quite dissimilar from that of a company in Mexico due to differences in national culture. Organizational culture constitutes the more enduring aspects of life within a company. A company’s culture often begins with a founding story, such as Mark Zuckerberg’s tale at Facebook or the story of J.C. Penney’s first retail store. Over time company stories, legends, language, and rituals evolve and then become relatively fixed and difficult to change.
4/14/2015

Print

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 16 of 79
As this brief section indicates, organizational behavior has been enriched by the theoretical contributions and research findings from a variety of related fields. More recently, concepts derived from postmodernism, including ideas about the construction and deconstruction of language as well as views of the organization, hegemonic processes, notions of subjectivity and identity, and cultural imperatives have begun to influence thinking about what happens in the workplace (Baack & Prasch, 1997). Undoubtedly the future will include even greater expansion into other academic fields to enhance understanding of organizational processes.
4/14/2015

Print
Learning Objective #3:
Which interpersonal skills are most valuable in today’s business environment?
1.3 Interpersonal Skills: Keys to Personal and Managerial Success
lbuilding an ethical foundation ltraining and preparation lfinding the right person–organization fit lcontinuous improvement lachieving balance
Each component contributes important elements to a satisfying career.
Building an Ethical Foundation
The past two decades have been filled with incidents of unethical activities of individuals and corporations that have damaged personal lives, companies, and public trust in commerce. The Sarbanes–Oxley laws, which were passed in 2002, set new, more rigorous legal requirements for

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 17 of 79
The study of theories in organizational behavior can contribute to both personal and organizational success. At times these two goals overlap. At other times, managerial duties aimed at organizational success are distinct from personal growth and development activities. To help separate these concepts, management can be defined as accomplishing work and organizational goals by assisting, training, and leading others. Self-management involves all efforts designed to pursue personal goals. Both require key interpersonal skills. Self-Management and Personal Success
“Personal success” is a difficult concept to define. For one individual, the concept suggests wealth or fame. For another, success results from moving to the top of the organizational chart and assuming the role of chief executive officer (CEO). Another still may view personal success in terms of serving people, including family, friends, and even strangers. For our purposes here, the concept of personal success specifically addresses one’s career and time spent in business organizations. The primary concepts that apply to personal success in that context include
4/14/2015

Print
corporations in the attempt to protect people from shady financial practices. Reforms have been implemented in the credit, banking, and lending industries as a result of abuses that led to dire economic circumstances. Governments continue to try to regulate pollution, tax evasion, misuse of personal information, and unsafe products, as well as other business practices. Major accrediting agencies, including those associated with management and organizational behavior, have developed codes of ethics and emphasize the importance of ethics training in the classroom.

Hemera/Thinkstock Building an ethical foundation is necessary to ensure public trust in commerce. In 2008 and 2009, individual lenders did not share possible risks with homebuyers, which led to large numbers of foreclosures.
Training and Preparation
Finding The Right Person–Organization Fit

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 18 of 79
Assessment of ethical and unethical actions remains essential at the individual level. Individual decision makers failed to take the necessary steps that would have prevented the 2010 Gulf of Mexico oil spill (Broder, 2011). Individual lenders failed to properly warn homebuyers about the risks associated with some mortgages, leading to a vast number of foreclosures in 2008 and 2009. Individual financial speculators made massive profits while endangering the global economy during that same time period.
Consequently, personal success should be defined in terms of what contributes to the greater good, and should therefore begin and end with building a personal ethical foundation. Guidelines as straightforward as the Golden Rule and common sense can help an employee establish a personal moral code. Then, ethics training and ethics counseling can assist when moral questions arise. In essence, ethical actions are the starting point and ultimate goal of a truly successful career.
The concept of lifelong learning has swept through much of the academic and business world. New technologies and methods of operation require continuous study. A successful personal career likely includes formal training in the academic world, such as undergraduate and master’s degrees; participation in managerial training programs in individual companies; personal efforts to improve skills through conferences, seminars, professional reading, and online research; and discussion with mentors and experts.
For most people, finding the ideal workplace will not happen with the first employment experience. It takes time and several jobs to discover what someone wants in a company. An individual may most
4/14/2015

Print
Continuous Improvement

The person–organization fit concept suggests that positive outcomes occur when an employee finds the right employer.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 19 of 79
value social interaction, the work itself, the opportunity to be promoted, or numerous other, less visible aspects of organizational life. Figure 1.3 models the person–organization fit concept. It suggests that when an employee has found the right employer, a series of beneficial outcomes emerge. Part of career management involves personal awareness regarding what you think is important, combined with seeking to find the company that offers the best chance to achieve. Figure 1.3: A person–organization fit model
Conducting a self-examination will be part of finding the right fit. Some people belong in a category called “cosmopolitans”: persons who find the greatest fulfillment in serving the larger profession rather than a specific organization. “Locals” focus on succeeding within the employer company (Goldberg, 1976). In finding a fit with an organization, cosmopolitans are suited to companies that grant greater autonomy and derive recognition from the external professional activities of employees. Locals fit in most organizations, so long as professional requirements do not eliminate them for obtaining jobs or limit them from being promoted.
Beyond lifelong learning, a successful career includes honing personal skills, building relationships, and taking new challenges as time passes. Improving computer skills, learning a foreign language, and
4/14/2015

Print
Achieving Balance
Robert Dubin noted that some employees tend to view work as a central life interest while others do not. Part of career success includes understanding the role of work in your life. Then, achieving balance helps ensure that work does not dominate to the point that personal time is lost or cannot be enjoyed (Dubin, Champoux, & Porter, 1975).

Experts in the fields of stress management and time management note the importance of rest and taking a mental vacation from the demands of work. Finding ways to maintain a positive life away from work can lead to improved productivity on the job and greater life satisfaction in general. The opposite, burning the candle at both ends, often results in burnout, a shorter life expectancy, and a less successful career.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 20 of 79
understanding the customs of another country make a person more valuable to an employer while creating new opportunities to explore other aspects of company life, including possibly an assignment in or junket to a foreign country.
Early in a career, one form of improvement might involve finding a mentor who is willing to help a young employee navigate the challenges of a specific company and occupation. Later, continuous improvement involves becoming a mentor to assist and develop others. These and other relationships help make for a fulfilling career based on more than mere on-the-job accomplishments.
Creatas Images/Thinkstock Achieving a balance between work and personal time should be an important career objective.
Recently, new technologies, declining economic conditions, and increasing competition have made work–life balance more difficult to achieve. When an employee is expected to carry a mobile phone with a tracking device and a laptop that can be monitored, every movement can be studied by supervisors. The individual often feels compelled to work during what should be personal or family time at home. As layoffs, outsourcing, and downsizing continue to take place, the employees that remain employed face the demands of taking on tasks performed by those who have left. Once again, home life can suffer. Increasing competition comes from those who wish to stay on the job as well as from competing companies. A major challenge for many 21st-century workers will be coping with these forces.
In summary, a series of steps must be taken to build a personal career. Starting with the solid foundation of an ethical orientation and being sure to choose an organization that is a good personal fit, an employee works to enhance personal attributes that are of value to companies while tending to the evolving tasks assigned to him or her. The final building block,finding a balance between life at work
4/14/2015

Print
and away from the office, helps guarantee that at the end of a career, the individual can take satisfaction in a job well done and a life well lived. Managerial Skills
Managerial Orientation
lfirst-line supervision (operational managers) lmiddle management (tactical managers) ltop management and CEO (strategic managers)
For most employees, the first position taken in a company will be at either the entry level as a line worker or as a first-level supervisor or manager trainee. Over time and with promotion, the primary focus and duties at each level of management shift along the four dimensions displayed in Table 1.3 (Guest, 1956).
Table 1.3: Managerial orientation and duties technical, conceptual, managerial orientation

specific versus general tasks
time orientation: short- versus long-term
degree of human relations orientation
In essence, the managerial orientation rests with the task at hand. Not surprisingly, then, the focus

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 21 of 79
While the world of business has changed dramatically over the past several centuries, certain aspects of management remain largely the same. One continuing aspect is the basic distinction between managerial levels. At the core of nearly every company, there are three levels of management:
As an individual rises through the ranks of a company, from entry-level associate to supervisor to CEO, the individual’s orientation, duties, and required skill set evolves. Concepts derived from organizational behavior can assist in acquiring and refining the talents needed to succeed at each level.
First-line supervisors and operational managers are far more likely to be concerned with specific, technical matters. An office manager in a physician’s practice will be consumed with making sure that the paperwork associated with billing patients, filing insurance claims, ordering medical equipment, and other medically related tasks are correctly completed. A line manager in a manufacturing plant will concentrate on quotas, deadlines, and defects associated with production. A department manager in a retail store spends a great deal of energy managing inventories, creating ingenious displays, teaching effective selling techniques, and engaging in other on-the-floor activities.
4/14/2015

Print
Table 1.4: Roles played by top managers and the chief executive officer Interpersonal Roles

Figurehead
Leader
Liaison
attends ceremonial, symbolic events
acts as visible director of activities
interacts with internal departments and external publics

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 22 of 79
largely remains short term. Deadlines must be met, paperwork must be completed, employee schedules must be filled out, and other matters that take place in the coming weeks or months receive the greatest amount of attention. At the same time, a first-line supervisor spends significant amounts of time working directly with people. In this area, concepts learned from organizational behavior are of great value in completing the more technical, specific, and short-term elements of the job, especially in the areas of motivation, leadership, communication, problem solving, and conflict resolution.
Middle managers and tactical managers oversee sets of departments or operations. They often hold titles such as plant manager, division head, or operations manager. The increasingly complex nature of meshing various tasks and operations together requires more complex managerial thinking skills that move away from specific tasks to more general processes. Also, even though immediate outcomes remain important, the middle manager often is asked to think about tactical, mid-range subjects, such as plant modernization, acquisition and application of new technologies, or shifts in marketing methods. The decisions have implications that last much longer than the short term. Middle managers also engage with other people, and the roles they play are more complex. The concept of “having a boss while being a boss,” or the superior–subordinate syndrome, indicates that middle managers must understand when they have authority and when they do not. They must know how to effectively lead and follow. A wider range of human relations skills becomes necessary.
Organizational behavior may be especially helpful to middle managers in two areas. The first evolves from applying knowledge to various situations, which improves a person’s conceptual thinking skills while completing longer-range projects. The second results from a greater understanding of maintaining quality relationships with people of higher and lower rank.
Top-level managers, strategic managers, and the chief executive officer encounter a vastly different set of responsibilities that require a different orientation from other managerial levels. Top managers must see the big picture. They are required to understand how all parts of an organization’s operation are brought together in a smooth, efficient, and effective manner. Therefore, conceptual skills and managerial skills are at a premium. Daily routines are more general, consisting of a series of managerial roles that must be played. Table 1.4 displays Henry Mintzberg’s classic set of roles played by top managers.
4/14/2015

Print

Informational Roles
Monitor
Disseminator
Spokesperson
Decisional Roles
Entrepreneur
Disturbance Handler
Resource Allocator
collects information internally and externally
transmits information to internal constituents
transmits information to external constituents and publics
develops new ideas, concepts, products, and brands
deals with unforeseen events and crises
spends resources and designs/signs budgets
Negotiator Sources: Henry Mintzberg (1973). The Nature of Managerial Work. New York: Harper & Row. Henry Mintzberg (1975). “The Manager’s Job, Folklore and Fact,” Harvard Business Review (July-August) pp. 49–61. Arthur G. Bedeian (1986). Management. Chicago: The Dryden Press.
completes contracts with unions, suppliers, buyers

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 23 of 79
Top-level managers think strategically. Issues that will arise in the long term deserve attention by those in charge of moving the company forward into the next decade. Interpersonal skills remain a vitally important resource, as a manager interacts with employees, suppliers, customers, government officials, the general public, union leaders, and other publics. Public speaking skills are a major asset at this level.
In summary, managerial orientation requires technical skills at the lowest ranks that evolve into more conceptual challenges as the person is promoted to middle and top management. Managerial skills are present at all levels, while the managerial tasks performed are somewhat different. The job itself shifts from a specific set of tasks to more general duties at higher levels, and the amount of time spent planning increases. Organizational behavior offers training, models, and concepts that can assist a manager at any rank in the organization, especially in the area of interpersonal relations.
4/14/2015

Print
Learning Objective #4:
What recent trends have affected the field of organizational behavior and the practice of management?
1.4 Managing in the 21st Century

Beyond the traditional forces associated with the noncontrollable external environment, the field of organizational behavior has been affected by other trends. Four areas stand out:
1.Globalization and global management 2.Diversity 3.Ethical challenges 4.The new and evolving workplace
Each alters what is taught in an organizational behavior course and its application in the world of business. Globalization and Global Management

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 24 of 79
Traditional principles of management textbooks examine five main forces present in the noncontrollable external environment that demand a manager’s attention. The noncontrollable forces include political, social, economic, technological, and competitive elements. The 21st century has already witnessed dramatic shifts in each of these areas. From the election of the first African American president to the influence of the tea party, the political arena continues to evolve. Numerous social trends affect culture, business, and everyday life. An economic downturn late in the first decade of the new millennium increased unemployment and profoundly influenced many companies. Technology introduced a sweeping number of new products and product features that have made the pace of business even faster. Competition has shifted to a worldwide marketplace.
iStockphoto/Thinkstock An economic downturn and the global market are examples of noncontrollable forces that demand a manager’s attention.
The reach of even the smallest business has changed. The Internet and improved shipping capabilities
4/14/2015

Print
Globalization has a noticeable impact on the availability of products and services to customers. The rising number of product choices has improved the standard of living for many people. The spread of mobile communications products serves an example. People around the world have access to cell phones and the Internet through handheld devices. As the new century unfolds, the trend toward a greater number of product choices will continue (World Trade Organization, 2011).
lselection of home- versus host-country employees and managers lunderstanding how cultural differences influence business activities lreaction to international trends ladaptation to local language
Employee and Manager Selection

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 25 of 79
have made it possible for smaller companies to attract customers around the world. At the same time, global conglomerates continue to adapt and expand. Mergers, acquisitions, partnerships and trade relationships, and a growing number of trade agreements among nations have affected the ways in which business is conducted.
The global marketplace also impacts how managers operate. A series of new challenges awaits anyone interested in conducting international business, especially in the area of human resources. Managers engaged in international trade can expect to encounter issues in the following areas:
An organization’s general strategic approach forms the basis for all other business operations. It affects many of the company’s business activities, including employee selection processes. Each firm exhibits one of three mindsets: ethnocentric, polycentric, or geocentric. Each presents a set of options (Baack, 2005).
In the first approach, ethnocentric management, home-country employees will be selected and trained for overseas assignments. The strategy is often preferred by companies exporting to regions with the same or a similar culture. For example, a Canadian company might hire someone and train that individual for assignments in the United States and Great Britain, simply because it would be the easiest choice. Such individuals are called “expatriate employees,” or “expatriate managers” when they serve in supervisory roles. Expatriates usually require training in a foreign language, and must have an open mind regarding cultural differences.
A second option, polycentric management, involves hiring someone from the target host country. These individuals have the natural advantage that comes from knowing the culture of the host country. They will need to be trained to understand how the home country’s business operates, including managerial practices. They might discover that the leadership style is different and that the company will need to respond to motives and incentives that differ from those that drive local companies. In polycentric organizations, people in the firm may communicate differently. In essence, they do not have to adapt to
4/14/2015

Print
a new country, but rather to a new company.
Cultural Differences
lbuilding relationships before talking business ldining and meals as part of the business interaction lgift-giving protocols luse of titles and surnames lpresenting a business card
Table 1.5: Dimensions of culture Power Distancehow individuals respond to differences in status

Individualism/ Collectivism
Uncertainty Avoidance
Masculinity/Femininity
the degree to which society values personal goals, autonomy, power over group loyalty, commitment to norms, social cohesiveness, and social interaction
the extent to which a society places a high value on reducing risk and instability
the degree to which society views assertive, “masculine” behavior as important to success and encourages traditional gender roles

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 26 of 79
Some companies employ geocentric management, in which third-party nationals are often hired. These employees are not citizens of the home or host country. At times, someone with a truly international point of view has the greatest advantage. They can adapt to a wider range of cultural variations.
Business is conducted in diverse ways, depending on the culture of the country. Successful business people investigate these differences prior to visiting a foreign land. Some examples of cultural nuances include the following:
The first requirement for any international assignment is acceptance that there will be differences in culture. Culture shock often occurs when an individual first arrives in a new country. Many customs will seem different, beginning with something as simple as a greeting (a bow versus a handshake). Cultural sensitivity is the ability to understand and accommodate those from other cultures. Those who do not or cannot accommodate other cultures exhibitethnocentrism, or the belief that one’s culture is inherently superior to others. Such individuals will experience major problems in international assignments. Cultural sensitivity includes being aware of differences in religion, manners, dining and foods, and other matters associated with everyday living and business. Table 1.5 displays five common elements of culture, as identified by Geert Hofstede (1984).
4/14/2015

Print

Language Skills
Time Orientation
International Trends
the extent to which values are oriented to the short or long term

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 27 of 79
Another key aspect of cultural difference, ethics awareness, means being aware that cultural values and methods of conducting business vary. What might be considered a gift in one country will be viewed as a bribe in another nation. Many countries allow bribery and allow the amounts given to serve as tax write-offs. Gender roles are substantially different in various parts of the world. In some cultures, women may not be allowed to speak or take part in business transactions. Labor laws do not protect workers in many nations, which means child labor is used, living wages are not paid, and safety procedures are limited or do not exist. Each individual and company decides what is acceptable and what is not (Baack & Baack, 2009). Many companies employ a cultural assimilator to assist in these matters. The assimilator is someone well versed in the local culture who helps others adapt to the foreign situation.
In 2011, a series of nations in the Middle East experienced upheaval. Egypt, Syria, Bahrain, Iran, and other countries underwent protests and attempts to transform local governments. At about the same time in the United States, anti-Muslim sentiment rose to new heights, as evidenced by the reaction many had to the construction of an Islamic activity center in New York, near the site of the World Trade Center.
Any political or economic event that influences another country has a potential impact on international business relationships. Effective global managers note these events and try to understand how their company’s interests may be affected. Political knowledge includes keeping up with current events and seeking counsel to understand how those events affect business operations. Many times, political conflicts result from cultural misunderstandings and ethnocentrism.
Language skills are useful in many international business relationships. At the least, knowing how to greet someone in his or her native language often begins a transaction on a much more cordial note. Those who know a second language have a distinct advantage in today’s employment marketplace, and in general, international business includes adaptation to foreign languages. Someone from France conducting business with a person from the United States will need to find a language that both can understand. Slang complicates the issue of language barriers. Even someone trained to speak French will soon discover that natives use a great deal of terminology not taught in formal classes. Additional barriers to international communication include (Baack, Harris, & Baack, 2012) the following:
4/14/2015

Print
Other Elements
lnot knowing if it is appropriate to address someone directly or to speak in a deferential manner lnot knowing whether it is culturally acceptable to make eye contact or avert one’s eyes ldisplaying ethnocentrism and stereotyping of other cultures lfailure to understand differences in the meanings of nonverbal cues lnot knowing how to deal with personal space issues lnot comprehending the use of symbols and cultural icons
In 2011, more than 50 million people of Hispanic descent were living in the United States. Managers in the 21st century will be expected to supervise individuals from an increasing number of backgrounds. Diversity presents opportunities and creates potential problems. A diverse workforce may offer new perspectives and make the workplace environment more enriching for all. A company that identifies market segments based on race, national origin, or other characteristics associated with diversity may find rich opportunities to sell more goods and services. At the same time, fear of others, conflicts based on cultural differences, and other challenges can harm a firm.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 28 of 79
Successful international managers are aware of differences in communication patterns. They then adapt in ways that make business transactions comfortable while reducing the potential for conflict and misunderstanding.
Organizational behavior can be expected to change with increasing globalization. A greater amount of research will be dedicated to understanding cultural differences. Project GLOBE is a research program in the area of leadership that addresses cultural nuances. The project is made up of scholars from 61 different cultures who are working together to develop a theory of how cultural variables affect leadership and organizational processes throughout the world. Other programs will undoubtedly be designed to help employees cope with international assignments (Hill, 2003). Diversity

iStockphoto/Thinkstock A diverse work environment cultivates new perspectives and creates an enriching workplace.
Many of the challenges associated with globalization are also present domestically with a diverse workforce. Language, slang, customs, methods of communication, and political divisions are part of the landscape. The factors associated with diversity that are the same in international markets include race and national origin. Other elements of diversity are the following:
4/14/2015

Print
lage lgender leducation lincome
Organizational behavior research can provide guidance in understanding the impact of diversity on individual workers, managers, and companies. Studies of negotiation and conflict should account for cultural variances in methods of bargaining and resolving disputes as part of the study of diversity (Arvey et al., 1996; Baba, 1995). The New and Evolving Workplace
The rate of change in the world of business continues to increase. Only a few decades ago, overnight package delivery was not possible. Contracts and documents traveled via the postal system, making any transaction take longer to complete. Air travel was the fastest mode of transportation, but now, with teleconferencing and other devices, interpersonal meetings with people around the world take place in real time. Terms such as “tweet” and “going viral” did not exist. Managers in the 21st century are expected to complete their functions while coping with a series of trends and changes in the workplace, including:
Innovation and Change
linnovation and change lconnectivity and networked organizations lemployment of temporary workers

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 29 of 79
The new workplace may contain older workers who, faced with financial difficulties, are unable to retire. Others, knowing that they will live longer, may not be as eager to leave the workforce. Each generation has characteristics and common bonds that make it distinct from others. Managers are expected to adjust to these differences. Women continue to break the glass ceiling in the corporate world and are working in jobs that were formerly only held by men. Female supervisors are a major part of today’s business setting. An educational divide currently separates the workforce into those who have finished high school and those with diplomas and college degrees. Company leaders work to provide interesting and meaningful work to both groups. The income divide has become a political factor and cause of debate in U.S. society, as top executive salaries keep rising while worker income remains stagnant.

Stockbyte/Thinkstock Technology has had a profound impact on the workplace environment.
4/14/2015

Print
Technology’s impact tends to be widely discussed and evaluated. New technologies have changed everyday lives of people, both at work and off-site. An evaluation of technology would suggest that technological innovation comes in many forms, including those displayed in Figure 1.4.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 30 of 79
Managers are expected to adapt the increasing number of changes such as these. At the same time, in terms of change, technology only represents part of the equation, especially in the workplace. Dramatic changes continually take place in four additional areas: political and legal forces, social trends, economic shifts, and competitor actions.
The political and legal environment is in a constant state of flux. Laws regarding privacy, identity protection, and other personal matters influence what managers can and cannot examine. Medical records may be increasing available, but should not be viewed by anyone other than licensed physicians and medical personnel. In 2011, challenges to the rights of unions were made by legislatures in both Ohio and Wisconsin. As the political landscape shifts, other regulatory changes that affect employees can be expected.
In the social environment, several states have adopted same-sex marriage while others stand resolutely opposed. The manager of a company operating in both types of states faces the dilemma of handling matters such as the issuance of health insurance policies, listing of partners on “emergency contact” lists, and transfers of married same-sex couples to states that do not recognize the marriage. Diversity and illegal immigration issues persist in the national consciousness. Managers are expected to go beyond understanding the questions to finding workable solutions. Figure 1.4: Technology and change
4/14/2015

Print
Connectivity and Networked Organizations
Another category of trend that managers must adjust to is in the realm of connectivity and networked organizations. The virtual workplace is a recent innovation in the world of business. Networked organizations establish high speed connections between members of the company around the world. This type of connectivity makes it possible to manage a firm more efficiently. Employees have vital information at their fingertips. Better decisions can be made without the same level of speculation and lost time that took place previously.
As technology changes, managers are expected to adapt. This figure presents examples of recent technological advances that impact the business environment.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 31 of 79
Economic forces have an impact on national and international companies, and are frequently in flux. Downturns and layoffs were prevalent in the early part of the 2010s. Deciding who to rehire and when is one of many topics economic conditions affect for managers.
Competitive forces continue to change the jobs managers perform. They are expected to respond to competitive efforts in the areas of acquiring customers and making sales, but also in terms of hiring and keeping the best workers, obtaining loans in competitive lending situations, and developing and adapting relationships with the best suppliers.

iStockphoto/Thinkstock The virtual workplace allows for communication among company employees around the world.
A networked company can better serve employees and customers. For example, customer information can be provided to a service employee, who can take care of a client’s needs by having access to important details about the person’s preferences and previous shopping patterns. The employee will have access to information about previous contacts with the customer, both positive and negative.
Many firms have virtual connections with other companies. Project management may be shared by two cooperating firms. Other companies submit orders, create packing labels, track shipments, send bills, and receive payments electronically. The virtual workplace means that two individuals do not have to be in the same room to work together. The rapid growth of mobile technologies makes it possible to make contact with others around the world in an instant.
The potential problem with connectivity is inundation with too much information and too many messages. Any manager who is away for a week returns to an onslaught of e-mails that have backed up. Messages may become lost when too many arrive at the same time.
4/14/2015

Print
At the least, the 21st-century manager will be expected to use connectivity in daily work activities. Connectivity will influence how managers do their own work as well as how they interact with employees, customers, and any other individuals who make contact with the company.
Employment of Temporary Workers

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 32 of 79
Many 21st-century managers also cope with a less stable workforce. Firms hire temporary workers to reduce labor costs. These individuals are not entitled to the same benefits as full-time, permanent employees. Economic downturns also increase the use of temporary employees. To the manager, the challenge is constant training and making sure a temporary worker is able to perform assigned tasks. The individual will be less loyal to the company and not share the same degree of mental involvement. Most temporary workers will have less experience at a given task and reduced knowledge about the employer firm. Managers can expect to be involved in more hands-on, day-to-day direction of these types of workers.
It is nearly impossible to keep up with or predict what will happen in the coming years. The popular website MySpace was rapidly supplanted by Facebook. Recent marketing research suggests younger people have begun to drift away from Facebook because their parents use it, which makes the site uncool. Each of the trends noted in this section, from changes in the workplace to increased connectivity, greater use of temporary workers, and larger challenges to the home–work balance, may evolve into some new form. Just as many television providers are beginning to offer 3-D programming, the impact of technology on the workplace and the nature of the managers will continue to progress.
4/14/2015

Print
Chapter Summary
Organizational behavior includes concepts from the fields of psychology, social psychology, sociology, organization theory, human resource management, history, research methods and statistics, and anthropology. OB is a hybrid field that incorporates ideas from these and other disciplines.
CASE STUDY: The New Supervisor

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 33 of 79
Organizational behavior (OB) is the investigation of the behavioral factors that affect modern organizations and their management at the individual, group, and organization-wide levels. Historically, the scientific management approach came first. Frederick W. Taylor developed the principles that merged scientific concepts with the practice of management. Frank and Lillian Gilbreth incorporated the principles to create the time and motion study. Henri Fayol wrote about planning, organization, staffing, directing, and controlling at about the same time.
Scientific management was challenged by the human relations movement, beginning with the work of Mary Parker Follett. The Hawthorne studies, Maslow’s views of humanism, and the concepts found in Theory X and Theory Y followed. Modern management and organizational behavior approaches include systems theory, contingency theory, total quality management, and positive organizational behavior.
Management is accomplishing work and organizational goals by assisting, training, and leading others. Self-management involves all efforts designed to pursue personal goals. Self-management requires building an ethical foundation, training, preparation, finding the right person–organization fit, continuous improvement, and achieving balance.
Managerial skills need to evolve as a person is promoted from first-line supervision to middle and top management roles. Technical, conceptual, and managerial orientation change, tasks move from specific activities to more general work, the manager’s time orientation tends to move toward the longer term, and the degree of human relations orientation evolves as a person moves upward through the organization’s ranks. Top-level managers engage in interpersonal, informational, and decisional roles.
The fields of management and organizational behavior have been influenced by elements of the noncontrollable external environment. These include increasing globalization, rising levels of diversity in the workforce, new ethical challenges, and an evolving workplace. All employees and managers will be exposed to cultural differences, both within a country and in dealings with individuals and organizations from other nations. Language skills and cultural sensitivity become valuable assets in those settings. The evolving workplace has witnessed higher levels of connectivity and networking among individuals on the job. Social media and other technologies continue to influence the ways in which people work.
4/14/2015

Print
Jose Torres drove to work for his new assignment with a big smile. He was excited about becoming the manager of a mobile phone retail store. His duties included serving customers, problem solving, creating an inviting store environment, training and motivating the other salespeople, tracking inventory, and designing special events. Even though he was 26 years old and two of his employees were over 30, Jose was ready for the challenge.
Within a week, the smile was gone. Jose quickly discovered that the two older workers were more than willing to take shortcuts. Some of the things they said to customers bordered on being false, or misleading at best. The two employees also would count sales until the monthly quota was reached, and then “bank” any extra to get a good start on the next month. This hurt the store’s potential profitability statements and would make Jose look bad.
Jose’s boss, Marcia, deemed herself “old school.” She warned him that her view was that retail store employees were only there because they couldn’t find or hold better jobs. She expected them to cheat on quotas and basically “live down” to her expectations. “The only thing that keeps them here is a paycheck, so you’d better use it to your advantage. You can always cut their hours or schedule them at times when there is less traffic—to make the point that you are in charge.”
Marcia’s advice ran counter to what Jose believed. He knew that the economy was tough, which may have led some to take jobs that were not the best fit. At the same time, he sincerely believed no one takes a job wanting to fail.
Unfortunately, it was not long before Jose began hearing that some employees complained that they were working at Taco Bell, partly due to his ethnic background and also because a greater number of Hispanic customers had begun to visit the store. Other ethnic slurs followed. Although he was never confronted directly, it was clear that most of the workforce did not respect him. Jose observed that most of the disrespect came from male employees.
Jose called a meeting. He handed each employee a review of his time with the company. It showed that he had set sales records nearly every month in his previous store, where he was not a supervisor. He told them that it was possible for each one of them to raise their sales and increase their bonus checks, if they would simply listen to his counsel. One of the older workers responded, “That will never happen. Even if we sell more, Marcia figures out a way to make our pay come out the same.” It was clear that some kind of change was in order. Case Questions
1.Describe Jose’s basic workplace philosophy. Does it fit this situation?

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 34 of 79
4/14/2015

Print
Review Questions
2.What type of leader is Marcia? Does her style make better sense for this company? 3.What are the diversity issues present in this case? 4.How could Jose build a more ethical environment in the store? Or should he simply terminate the workers and start over?

Define organizational behavior.

Organizational behavior (OB) may be defined as the investigation of the behavioral factors that affect modern organizations and their management at the individual, group, and organization-wide levels.
Define scientific management. Who first proposed the principles of scientific management?

What is a time and motion study?

What were the primary findings of the Hawthorne Studies?

What is humanism? How did beliefs about humanism affect the fields of management and organizational behavior?

What are the assumptions and conclusions of Theory Y?

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 35 of 79
Scientific management merged classic scientific principles with what was known about the practice of management. It was proposed by Frederick W. Taylor.
A time and motion study involves the use of a stopwatch or film to develop more efficient methods of completing work tasks.
•The subjects responded to positive and pleasant interactions with researchers by increasing productivity rates on the job. •Some of the tasks performed by supervisors were eventually assumed by entry-level employees, who also generated higher levels of production, because the workers found the experience to be “fun” and free of anxiety about being disciplined for poor performance. •Workers tended to form groups that were cohesive and loyal to one another. Anyone who overproduced became a “Slave” or “Speed King” who was derided and even physically punched in the arm (“binging”) by group members. Anyone who failed to do his fair share of work was labeled a “Chiseler” and admonished to keep up with the group.
Humanism is the belief that the inner nature of a person is inherently good and that life is the process of “getting better.” Scientific management, which relied on money and fear as primary motives, was being supplanted by newer, more positive views of employees. Human relations theories incorporate the concept that positive employee attitudes, combined with praise and recognition by supervisors and interesting work, can contribute equally to workplace motivation and productivity.
4/14/2015

Print
Explain the parts of a systems theory model, in terms of a business organization.

What are the fundamentals of a total quality management program?

Total quality management seeks to reduce variations in quality, both in manufacturing and in human operations, including the goal of zero defects.

Popular press offers a quick fix. Positive organizational behavior seeks to identify human resource strengths and capabilities that can be measured, developed, improved, and managed.
What academic disciplines are related to organizational behavior?

Organizational behavior includes concepts from the fields of psychology, social psychology, sociology, organization theory, human resource management, history, research methods and statistics, and anthropology.
Define management and self-management.

What ingredients help build a solid business career?

What three levels of management require quality interpersonal skills?

First-line supervisor, middle management, and top-level management.
What are the four managerial orientations and duties that shift by hierarchical rank in a company?

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 36 of 79
Theory Y assumes that wanting to work is natural, people seek responsibility, people enjoy autonomy, most employees are only partially utilized in terms of talents and abilities, and, given the opportunity, employees will generate ideas to help themselves and the company. It concludes that leaders should be people oriented and that motivation comes from within the individual.
In a business system, inputs include raw materials, financial resources, and human resources. The transformation process is the company’s production function, including the assembly of physical products and the delivery of intangible services. Outputs are the finished, final goods and services sold to the public. The feedback mechanism provides correction and adjustment, keeping the organization in tune with its environment. Control systems, such as performance appraisals of individual employees and annual accounting statements for overall companies, are feedback mechanisms.
In terms of positive organizational behavior, what roles do popular-press books and scientific research play?
Management is accomplishing work and organizational goals by assisting, training, and leading others. Self-management involves all efforts designed to pursue personal goals.
Self-management requires building an ethical foundation, training, preparation, finding the right person– organization fit,continuous improvement, and achieving balance.
4/14/2015

Print
What global management skills are vital to 21st-century managers?

Skills include selecting home- versus host-country employees and managers, adaptation to the local language, understanding how cultural differences influence business activities, and reacting to international trends.
What is meant by the term “ethnocentrism”?

Ethnocentrism is the belief that one’s culture is inherently superior to others.
What are the five main dimensions of culture, as defined by Geert Hofstede?

Power distance, individualism/collectivism, uncertainty avoidance, masculinity/femininity, and time orientation.
What elements create a more diverse workforce in the 21st century?

Age, gender, education, and income.
What factors create a new and evolving workplace in the 21st century?

Innovation and change, connectivity and networked organizations, and employment of temporary workers. Analytical Exercises

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 37 of 79
Technical, conceptual, and managerial orientations change, tasks move from specific activities to more general work, the manager’s time orientation tends to move toward the longer term, and the degree of human relations orientation evolves as a person moves upward through the organization’s ranks.
1.Analyze this statement: “There are Theory X situations. There are Theory Y situations. There are Theory X workers. There are Theory Y workers.” How does this statement relate to contingency theory? Can you think of situations in which only one of these four thoughts is accurate? Are there other situations in which none of the four truly applies? Explain your reasoning. 2.Compare the concept that emerges from systems theory—that organizations have life cycles in which eventually they decline and die—to total quality management, which suggests that continuous improvement and zero defects should be the goal. 3.Explain the common elements in the work of Mary Parker Follett, the Hawthorne Studies, Theory Y, Maslow’s hierarchy of needs, total quality management, and positive organizational behavior. Contrast these ideas with scientific management, Theory X, and the time and motion study. How do all of these theories contrast with systems theory and contingency theory? 4.Are there circumstances under which the demands of management interfere with self-management? Why or why not? 5.Make a list of the five most important elements in a job for you personally. Using the person–
4/14/2015

Print

Click on each key term to see the definition.
climate

The prevailing atmosphere in an organization.
construct

A term used to represent an unobservable process.
cultural assimilator

A company employee who assists others in adapting to new countries and cultures.
culture shock

A feeling of disorientation that often occurs when an individual arrives in a new country.
ethnocentrism

The belief that one’s culture is inherently superior to others.
feedback mechanism

The correction and adjustment parts of an organization, including its control systems, that keep the organization in tune with its environment.
hierarchy of needs

A motivation theory developed by Abraham Maslow.
humanism

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 38 of 79
organization fit model, explain the type of company in which you would like to work. Think of your response in terms of your current situation and then prepare a second list for 20 years from now. What will have changed? 6.Explain how relationships with entry-level employees would be different for each level of management. 7.Explain the similarities between managing a diverse workforce and managing in the global environment. Explain how the two circumstances are different. 8.Which of the factors that are part of the new and evolving workplace present the greatest challenges to 21st-century managers? Explain your answer. Key Terms
4/14/2015

Print
The belief that the basic inner nature of a person is inherently good.
hybrid field

Study of a topic derived from a variety of academic disciplines.
inputs

life-cycle concept

The idea that organizations are born, grow, reach a maturity stage, and eventually decline and die.
management

Accomplishing work and organizational goals by assisting, training, and leading others.
natural selection

organizational behavior (OB)

organizational culture

The more enduring aspects of everyday life in an organization.
outputs

The finished, final goods and services sold by a company to the public.
reliability

A consistently repeatable measure of a variable in research.
scientific management

An approach that merges classic scientific principles with what is known about the practice of management.
self-management

All efforts designed to pursue personal and professional goals.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 39 of 79
Elements that enter an organization, including raw materials, financial resources, and human resources.
In business, the concept that organizations that do not adapt to the environment will be selected out.
The investigation of the behavioral factors that affect modern organizations and their management at the individual, group, and organization-wide levels.
4/14/2015

Print
systems theory

A viewpoint that conceptualizes an organization as a set of interrelated parts working together in a holistic fashion.
total quality management (TQM)

An insistence on continuous, customer-centered, employee driven improvement.
transformation process

A company’s production function, including the assembly of physical products and the delivery of intangible services.
validity

Research findings that can be generalized to other groups.
virtual workplace

Digitally networked sets of employees and organizational departments. Chapter Two Organizational Culture, Diversity, and Socialization

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 40 of 79
4/14/2015

Print

Learning Objectives

After reading this chapter and studying the materials, you should be able to:

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
SOMOS/SuperStock
lExplain the role culture plays in a company’s operations. lAdapt and change organizational culture while building an ethical culture. lEvaluate the effects of the increasing level of diversity in today’s business environment. lExplain how the socialization process helps new employees fit in with employer companies.
Page 41 of 79
4/14/2015

Print
Learning Objective #1:
What role does culture play in a company’s operations?
2.1 Organizational Culture
OBIN ACTION Honest Tea: A Strong Culture from the Beginning

Most strong organizational cultures begin with a founder story. Legendary stories abound concerning Sam Walton, founder of Walmart, Ray Kroc, founder of the McDonald’s empire,

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 42 of 79
In the 1980s, many Japanese companies began making serious inroads into U.S. markets, especially in the automotive and electronics industries. A variety of factors helped to explain the change, including historical events, economic conditions, the legal environment, competitive circumstances, and the quality of the products sold by firms such as Honda, Toyota, and Sony. Additional speculation began to emerge, suggesting that somehow the Japanese culture was part of the picture. The Japanese culture included elements of loyalty and shared commitment between companies and employees. Lifelong employment contracts were common. Many workers experienced a sense of “honor” from being true to the organization, regardless of status in the organizational hierarchy or the actual tasks performed. This common bond created a competitive advantage in terms of product quality and worker productivity.
Consequently, in the United States, organizational behavior and management researchers started studying the role that culture plays in the business community. The investigation led to some confusion. Some believed that the national culture of Japan was the driving force behind the competitive successes of businesses in that country. To others, however, it was the cultures of specific companies that created the advantage.
The first distinction to be made when studying culture is the level of analysis—a nation versus a specific company. In this chapter, an individual company constitutes the level of analysis. Therefore, organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations. An organization’s culture determines how it perceives and reacts to the larger environment (Becker, 1982; Schein, 1996). Culture determines the nature of an individual’s experience in an organization in both for-profit companies and nonprofit enterprises.
4/14/2015

Print

ULTRA F/Thinkstock Honest Tea features a strong culture based on social responsibility, sustainability, and high-quality products.
Questions for Students
and more recently Bill Gates and Microsoft. Strong cultures also thrive in far smaller organizations.
Honest Tea began as a collaboration between co-founders Seth Goldman and Barry Nalebuff. Both had an interest in refreshment products that were less sweet than traditional drinks such as Coke or Pepsi. Tea provided a natural alternative. Nalebuff visited India, where he learned that the major teas sold for bottling by American companies were often brewed using the dust and fannings left after the quality tea was used. Nalebuff and Goldman concluded that tea brewed with actual quality tea leaves would taste better and enjoy a natural advantage in the marketplace. The name Honest Tea resulted from the idea that bottled tea brewed with real tea leaves was more genuine, or honest.
From the beginning the company based operations on both cofounders’ passion for social responsibility. The company’s mission statement is “Honest Tea creates and promotes delicious, truly healthy, organic beverages. We strive to grow with the same honesty we use to craft our products, with sustainability and great taste for all.” The concept drives every company activity, from the manufacturing process to marketing programs, biodegradable tea bags, organic ingredients, and community partnerships. Efforts to become more sustainable led to the development of plastic bottles that are 22% lighter than most versions, saving tons in waste.
Honest Tea’s partnership programs seek out circumstances in which an entrepreneur in a struggling region can produce new flavors and additives. Contracts have been developed with Native American groups in the United States and farmers in Thailand who grow mangosteen, an antioxidant ingredient. Goldman and Nalebuff believe in helping others through commerce.
The result, in terms of an organizational culture, is a company filled with employees who are proud of what they do and how the organization operates. Company involvements include “plant a tree” efforts and support of the Susan G. Komen for the Cure cancer foundation. The strong emphasis on sustainability, responsibility, and high-quality products has taken this small operation to a thriving and successful business across the United States (Honest Tea, 2011).

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 43 of 79
4/14/2015

Print
1.Can every company develop the same mindset regarding social responsibility and succeed at the same high level? 2.What kinds of employees would naturally fit in the Honest Tea organization? 3.Can you think of situations that might threaten the culture of Honest Tea? If so, what are they?
The Nature of Culture
Table 2.1: Cultural characteristics Degree of encouragement of innovation and risk-taking

Attention to detail and precision
Outcome orientation (rather than processes or technique orientation)
People orientation

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 44 of 79
Culture represents a relatively fixed organizational element that reflects the organization’s history. Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon (Smircich, 1984). Symbols include the golden arches at McDonald’s, the Intel tune played in commercials, a Star of David in a synagogue, or an elephant designating a Republican. Rituals include joining ceremonies and commencement activities, such as the Doctorate of Hamburgerology granted to graduates of the McDonald’s manager training program, Hamburger University. Language includes company-specific acronyms and terms. In the world of Disney, a crowd at a theme park is an “audience” and a work shift is a “performance.” Social dramas emerge from promotion decisions, termination decisions, and disciplinary actions. Culture consists of shared meanings associated with the symbols, rituals, and language.
Culture combines the philosophy of the firm with beliefs, expectations, and values shared by members. Culture often begins with and relies on stories and myths about the company’s founder and its current leading figures—the firm’s heroes and heroines (Gordon, 1993; Schein, 1985).
Culture can be transmitted in many ways. As part of the recruiting process, prospective employees are often told about the organization’s philosophy. As one begins working in a company, asking questions about the organization is common. Many of the questions will be about cultural issues, including what is important and why. Meetings, mailings, and other communications express cultural values, such as the statement “Quality is Job 1,” a pervasive phrase repeated in the Ford Motor Company paperwork. Role modeling and coaching processes instruct employees about the firm’s core values. One viewpoint of culture suggests seven characteristics that, as a group, express the essence of an organization’s culture (O’Reilly, Chatman, & Campbell 1991). The elements are displayed in Table 2.1.
4/14/2015

Print

Team orientation
Level of aggressiveness and competitiveness
Emphasis on stability and the status quo
At the same time, organizational culture should not be considered as having only one dimension. Instead, culture can divide into additional viewpoints, actions, and activities.
Dominant Cultures and Subcultures
Strong and Weak Cultures

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 45 of 79
In nearly every society, a dominant culture guides the daily activities of citizens. The same holds true for individual companies. Thedominant culture articulates the core values shared by a majority of an organization’s members. When the company interacts with the public, the dominant culture is often readily noticeable. As an example, the dominant culture at Southwest Airlines leads employees to cooperate with one another and to have fun while doing so. The Outback Steakhouse chain tried to instill the same type of shared values using the “No Rules” motto for many years. In essence, the dominant culture becomes the organization’s personality.
As a company grows in size, subcultures tend to emerge. A subculture (a culture that differentiates a subgroup from the larger group to which it belongs), in an organizational context, arises from the common problems, situations, and experiences that a set of members face. In a freethinking and fun-loving company such as Nintendo, which develops handheld games, the dominant culture extends to every member. One department in the company, quality control, still must adhere to carefully managed production techniques or the games will have defects and won’t work. It would not be surprising to find that members of the quality control department have an additional set of values that differ somewhat from the overall organization. At the extreme, an “us versus them” mentality can emerge when a subculture becomes more established.
Some dominant cultures are more pervasive than others. A company with a strong culture employs members who intensely hold and readily share the organization’s core values. Strong cultures are readily evident in military and religious organizations with rich histories and traditions.
Strong dominant cultures may even be found in Internet companies. The rapidly growing Internet company Zappos.com provides training focused on the firm’s 10 core values, which include “Deliver WOW,” “Pursue growth,” “A little weirdness,” “Be passionate,” and “Be humble.” Founder and former CEO Tony Hsieh would seek out individuals with a passion to
4/14/2015

Print
provide quality customer service. To create and maintain that culture, the workplace includes free food, substantial interactions between employees, and constant encouragement to have fun. Employee training programs begin with preparations for work in the call center serving customers, even when the worker will eventually play a different role, such as order fulfillment, inventory control, or finance and accounting. During the training sessions, Hsieh offered to “buy out” anyone who did not believe he or she would fit with the company. Payments, which were rarely accepted, ranged up to $2,000 (Durst, 2006).

Organizational culture can play a key role in an organization’s well-being. Several roles are played by culture that can improve the organization’s functioning as well as the employment experiences of individual workers.
Culture Makes the Organization Distinct
Culture Creates a Sense of Identity
If you speak to a person in uniform and refer to him or her as a “soldier,” there will be instances in which you will be quickly corrected with, “I’m a Marine.” Marines view themselves as different from

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 46 of 79
OJO Images/SuperStock The strong culture at Zappos.com contributes to the company’s overall success.
In organizations such as Zappos.com and Honest Tea, a strong dominant culture creates several benefits. Members of these companies often express high levels of agreement with and commitment to the organization’s mission. Employees and employee groups are often tightly knit and cohesive, and remain loyal to the organization. In practical terms, companies with strong cultures often exhibit lower levels of turnover (few people quit or are fired); the employees offer statements of loyalty to other employees and to people outside of the company. The net results can be improved productivity and a positive social atmosphere in which people work, which in turn may entice quality individuals to seek employment with the company. Functions of Culture
Culture creates distinctions between organizations. These unique features attract some people to join a company and encourage others to go elsewhere. They extend to customers, other organizations, and even the government. In the insurance industry, Aflac developed a highly visible reputation for being family friendly and welcoming to members of minority groups. The company’s culture sets it apart from other insurers.
4/14/2015

Print

Visions of America/SuperStock The military has a strong culture that requires its members to commit to its core values in order to “fit in.”
Culture Helps Employees “Fit In”
Observable Artifacts
Culture Builds a Strong Social System
The University of Hawaii football team under former head coach June Jones exhibited traditional elements of culture and a unique set of observable artifacts. Traditional cultural elements include trophies on display for individuals and teams in the training facility, signs on display stressing the

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 47 of 79
ordinary soldiers. The same sense of identity can be found in a variety of organizations. Stronger cultures lead people to incorporate the organization’s core values into personal value systems.
Culture has been compared to social glue holding an organization together. When people join companies, they learn how to promote themselves, and become more fully aware of how an organization operates. The social system explains the “rules of the game,” including what are acceptable and unacceptable behaviors. Social dramas occur when norms and rules have been violated. Rewards and promotions accumulate to those who follow the rules and play the game as expected (O’Reilly & Chatman, 1996).
By comprehending how a culture operates, an employee who wishes to remain will seek to fit in. The person will learn company lingo and, over time, more strongly accept the organization’s core values. Culture plays a major role in guiding the behaviors of members of a company. Understanding and adapting to a culture can assist in building a successful career. Layers of Culture
Just as people have layers in their personalities, layers may be found in the culture of an organization. Some of the characteristics of an organization’s culture can be readily observed, while others remain more subtle and hidden. Three levels of culture interact with one another and influence behaviors in organizations: observable artifacts, espoused values, and enacted values.
Artifacts include the physical signs of an organization’s dominant culture. A company such as Walmart that refers to employees as “associates” on name tags states a value. Other expressions of observable culture include displays of awards such as “employee of the month,” specially designated parking spaces, the manner of dress exhibited by employees, and company ceremonies.
4/14/2015

Print
importance of teamwork, and practice rituals that are the same as for football teams across the country. The team’s observable artifacts are found in its inclusion of Hawaiian culture. The coaches wear Hawaiian shirts during games that reflect the local culture.
Espoused Values
Most organizations have guideposts that express the primary beliefs of the leadership group.Espoused values are the explicitly stated values and norms that are found in organizations. The espoused values of Honest Tea include an emphasis on sustainability and a commitment to helping communities. Espoused values are aspirations rather than outcomes. At times, the ambitions are not achieved. When a company’s leadership team expresses the desire to hire, train, and promote a more diverse workforce, an espoused value exists. When the same company does not follow through with hiring decisions dedicated to that value, it remains simply an aspiration.
Enacted Values

Siri Stafford/Thinkstock

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 48 of 79

Blend Images/SuperStock Items designed to recognize employee performance, such as an Employee of the Month award, are part of an organization’s observable artifacts layer of culture.
The values and norms exhibited as employee and managerial behaviors are enacted values. As an example, customer service phone representatives at Zappos.com receive constant reminders about the value of a quality interaction with the company. As a result, when a customer calls looking for a specific pair of shoes, and Zappos.com does not have the item in stock, the service representative provides the names of other companies that might have a pair. Tony Hsieh believed that, even though a sale has been lost by not trying to entice the customer to switch to a different pair of shoes, the long-term loyalty will be worth far more. Employees that enact that value achieve access to greater rewards in the Zappos.com system.
The combination of observable artifacts, espoused values, and enacted values can create role clarity for an employee. Role clarity exists when a person has a clear understanding of his or her function in the organization and how to complete all assigned tasks. In essence, role clarity means, “I know what I’m supposed to be doing.” The reminders that come from seeing observable artifacts, hearing espoused values, and carrying out enacted values generates a greater sense of clarity.
4/14/2015

Print
Learning a company’s stories can help employees become familiar with aspects of the company’s culture, such as dualities, equalities and inequalities, and events.
Table 2.2: Culture questions Which rules are important?

What will get me fired?
Will the company help me if I have to move?
How does the company view risk taking?
Can the little person rise to the top?
Stories Explain Dualities
Stories Explain Equality and Inequality
Learning Culture

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 49 of 79
As has been noted, culture is transmitted through myths, stories, jargon, and rituals. Individuals learn about culture by asking questions and hearing answers that usually take the form of a story. Some of the more common questions new employees ask are shown in Table 2.2.
Obviously the questions will probably not be stated in the exact words displayed in Table 2.2, but in general, employees want to know if top management is approachable. They want to understand the discipline system and where the “line” is regarding termination. They ask about the amount of support they will receive and whether the company regards fairness and equality as important values. The answers they receive in the form of stories serve several purposes.
Stories present the most positive and negative versions of answers to questions about culture. The answer to the “Is the big boss human?” question may be, “I saw this guy say ‘hello’ to the CEO, and he bit his head off,” at one extreme and “I saw this guy in the parking lot with a flat tire, and the CEO stopped, took off his suit coat, and helped him put on the spare,” at the other. Both stories may be true. In the first instance, the CEO was in a bad mood and in a hurry. The storyteller may not know that the CEO later found the same employee and apologized profusely.
“Can the little person rise to the top?” Here is one story: “Sheila has been our best accountant for the past 10 years. Three different times she applied for the accounting manager job and got passed over. Some guy always ended up getting the job.” Here is a second story: “Jose Morales is such a cool dude. Everyone likes him. No one was surprised when he got promoted, even though he had only been here a couple of years.” Stories explain when employees have been treated fairly and when they have not.
4/14/2015

Print
Stories Explain Company Events and the Past
Stories explain social dramas, such as why someone was terminated. A story has been told about the president of a small university in the Midwest, who, in spite of warnings by several people, including a weather expert, decided to hold graduation ceremonies outdoors. As the commencement program began, a massive rainfall, complete with powerful lightning, interrupted the proceedings and drenched the entire audience. The next day the Board of Regents terminated the president. As the story goes, “He was fired for holding graduation in a thunderstorm.” In truth, the story provides a portrayal of an authoritarian leader who wouldn’t listen to good advice.
Stories Create Heroes and Heroines
Stories Help Identify Cultural Forms
Table 2.3: Forms of culture NameCharacteristics

Clan
internally focused, family-type, high levels of collaboration, emphasis on involvement, commitment, consensus, decentralized management

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 50 of 79

©Blue Jean Images/Corbis As part of corporate culture, hero stories create a “superhero” persona for employees to admire and emulate.
Founding stories create mythologies about the entrepreneur that began the company. An organizational hero or heroine provides the ultimate role model for employees to follow. A common hero story told about Walmart founder Sam Walton focuses on his “everyman” characteristics. Walton was famous for driving to stores in an old pickup truck and pitching in to help associates unload delivery trucks and stock shelves. As the years unfold, undoubtedly hero stories will be told about Mark Zuckerberg’s Facebook founding adventure.
Studies of organizational culture suggest that four categories may exist. Each dictates differing behaviors to members. The four forms are displayed in Table 2.3. Stories told within the organization help transmit these characteristics to new members. Outside observers may also be able to somewhat understand the culture present in the organization, which might in turn influence the decision to apply for a position with the company.
4/14/2015

Print

Hierarchy
Adhocracy
strong external focus, driven by competition, values stability and control, customer-centered, centralized management Adapted from K. S. Cameron, R. E. Quinn, J. Degraff, & V. Thakor (2006). Competing values leadership. Northampton, MA: Edward Elgar.
Market

Company leaders enjoy distinct advantages when an organization exhibits a positive culture. Positive cultures are democratic and progressive. They nurture and value the contributions of members. Positive cultures tend to be more flexible and adaptable, making the organization better able to meet the challenges of a dynamic world (Benn, 2011). Organizational leaders have vested interests in trying to build positive cultures over time.
Jupiterimages/Thinkstock A positive work culture provides employees with a sense of comfort and security that promotes the development of successful working relationships.
internally focused, driven by strong control mechanisms, standardized rules, formal procedures, centralized management, stable, inflexible
externally focused, values flexibility, emphasis on innovation, encourages risk taking, decentralized management

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 51 of 79
Employees in a clan culture, such as Southwest Airlines, enjoy positive relationships with peers. Employees in a hierarchy culture, such as a police force, quickly learn that rules and procedures are important. In an adhocracy culture, trying something that doesn’t work out will have different consequences than it would in other companies. Many Silicon Valley companies exhibit adhocracy cultures. In a market culture, such as automobile or insurance sales, pay raises, promotions, and rewards are likely to be based on visible performance measures related to sales and customer service.
Over time, employees find out how the company works, what is rewarded, and what is punished. Questions, answers, myths, stories, and jargon all become part of the organizational experience. When the person matches the organizational type, the fit produces the best chances for individual success. Benefits of Positive Cultures
Some studies suggest that culture can play a larger role in employee motivation than pay (Gifford, Zammuto, Goodman, & Hill, 2002). Organizational culture can help managers reach their goals while helping employees adapt to company life. The benefits of a positive culture include stability, employee self-management, and assistance in integrating new employees into the workplace.
4/14/2015

Print
Stability
In a positive culture, certain elements remain constant and reliable even in an ever-changing world. Radio Shack operates in one of the fastest-changing industries: electronic devices. A positive culture within the corporation, which emphasizes interdependence of various locations along with a sense of belonging, might be helpful in such a turbulent industry.
Employee Self-Management
Integrating New Employees

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 52 of 79
Members may be willing to set aside personal interests to help the organization succeed. Self-management originates at two levels. First, strong, positive cultures create norms, or the rules of behavior that guide members. Failure to follow norms results in social pressure to conform; those who do are accepted and those who do not might encounter caustic comments or ostracism from peers. Norms apply to levels of effort given on the job, to the willingness to share information and help others, to manner of dress, and even to language. If the norm imposes a ban on profanity, someone who constantly violates the rule faces rejection by peers.
The second level of self-management comes from within the person. Most people have a natural desire to be accepted by coworkers. Many go a step further and wish to please others. Abiding by cultural constraints can help achieve these goals.
The benefits to managers include less time enforcing the company’s discipline system. It becomes easier to complete performance appraisals in a positive fashion, by concentrating on work-related behaviors rather than social activities. A positive environment in which employees exhibit self-management also invites better relationships between supervisors and subordinates.
Positive cultures often mean that workers feel comfortable and secure. The “new guy” is not threatening; as a result, incoming employees are more readily accepted and trust can be built more quickly. The benefit to management will be less time training and socializing new workers. The benefit to the worker will be a much more comfortable and pleasant transition into the new workplace role.
In summary, company culture normally emerges from a founder story. It then becomes a driving force within the organization. Employees can learn how to successfully adapt to new organizational circumstances by learning about and adjusting to company culture.
4/14/2015

Print
Learning Objective #2:
How can managers change organizational cultures and build ethical cultures?
2.2 Cultural Change

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 53 of 79
“We need to change the culture around here.” This type of statement will often be made when a new CEO or president arrives. Declarations such as these are more common during a transition in which a crisis has occurred or is taking place. Classic stories of cultural change include the efforts of Lee Iacocca at Chrysler and Jack Rowe at Aetna. Iacocca had to convince an entire corporation to eliminate nearly 500 products bearing the organization’s name while designing new types of cars featuring front-wheel drive and a smaller chassis to meet the needs of a changing automotive environment. Rowe had to make peace with a series of frustrated health care providers and restore morale in a company that was losing money every day. Both were able to succeed by changing the cultures of their organizations.
Changing a culture takes time and a great deal of deliberate effort. Top managers can utilize a series of tactics in the attempt to alter a culture. Each can be designed to “upset the applecart,” or shake things up. Top Management Pronouncements
Cultural change often begins with a major announcement. Company leaders can express a new organizational philosophy, revise the firm’s mission statement, or incorporate new values. Walmart’s leadership had always emphasized the belief that employees or associates represented the most important constituency. For many years the organization enjoyed an untarnished image and was featured in a variety of textbooks as a quality model to follow. In the 2000s, circumstances changed as the company was charged with discrimination against female employees and other unfair management practices. To combat the allegations, Walmart’s leadership stressed positive examples of employment experiences and undertook other projects designed to emphasize that the company sought to be a good citizen in the community, including scholarship programs and neighborhood cleanup events. Company Language
Ford attempted to change its culture with a renewed emphasis on quality through the use of company language, which resulted in the motto “Quality is Job 1.” When a manager can discover the right phrase or acronym, it can serve as a beacon guiding cultural change. Part of language change will be to defuse negative commentary about the company and its future.
4/14/2015

Print
Workplace Redesign

Jupiterimages/Thinkstock

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 54 of 79

In the 1990s, many of the “dot-com” companies began moving to open office designs featuring employee spaces that could be personalized. While not all of those original Internet companies succeeded, it became clear that the design of the work space can be altered to change the culture of an organization. Removal of walls and other barriers encourages collaboration but decreases privacy. The highly successful Google organization continues to take advantage of an open work space and also features a variety of benefits, including exercise rooms, free food, and even massage. These perks provide tangible evidence of the value placed on innovation and employee loyalty that meshes with the design of the office. A hierarchical organization seeking to encourage greater innovation might follow suit. Reward System Changes
Ingram Publishing/Thinkstock Office design often reflects the nature of a company’s culture.
Alterations to the reward system offer more immediate incentives to change behaviors. Performance standards can be changed to reflect new circumstances. When a company offers a new product, typical sales goals include identifying and capturing accounts. Pioneering selling techniques receive the greatest rewards. Should a company succeed and become established in the marketplace, the culture might shift to greater expectations regarding relationship maintenance. The same will be true in many international expansions. Salespeople must recognize that foreign partners want to establish trust prior to any business transaction. The reward system will require adjustment to this new reality.
Managers are advised to remember that shifting performance criteria and the rewards that follow can meet with resistance. High performers receiving the biggest rewards under the prior system will be among the first to become upset. It takes time and training to effectively install a revised reward system. Training Programs
To effect change through training programs, goals should be aligned with the desired cultural shift. Many company executives have pushed for arenewed emphasis on customer service. Firms including Enterprise Rent-A-Car, Whole Foods, L.L. Bean, Olive Garden, and Nordstrom enjoy reputations as being customer friendly, and consistently outperform competitors as a result. A firm with a reputation for indifferent service could begin to diminish this disadvantage by emphasizing the
4/14/2015

Print
Training programs can be an effective way to create changes in a company’s culture.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 55 of 79
importance of customers in the initial stages of employee training by changing perceptions of customers in the company’s culture.
Role modeling and coaching can then reinforce training messages. When successful and higher-ranking employees display the behaviors that match the new cultural feature, others will follow. By connecting the reward system to such behaviors, the impact increases. Systems and Procedures
Cultural change can be encouraged by altering work systems. A hierarchical company seeking to become more flexible can introduce flextime work schedules to allow employees freedom to come and go as needed. The Zehnder advertising agency in New Orleans has installed a policy called VAN, which stands for “vacation as needed.” Owner Jeff Zehnder explains that his idea of a strong culture is one in which people are treated as adults. So long as the work is completed on time, he trusts that his employees know how to best use their talents and energies (J. Zehnder, personal communication, February 17, 2010). Goal-Setting
Goals direct activities. The automobile companies Subaru and Mazda recently shifted goals toward a greater emphasis on quality dealerships, and employees were at the forefront of the changes. Company leaders believed that a more pleasant shopping environment would boost sales. The organization spent a great deal of money improving showrooms and other elements of the dealerships (Greenberg, 2004) to assist salespeople in providing quality purchasing experiences. Toyota shifted its goals toward serving the needs of women visiting dealerships. Children’s play areas were added, restrooms were upgraded, and the company established coffee bar areas (Voight, 2006). The sales force was retrained to provide improved service to female customers. Company leaders changed the culture to recognize that both men and women buy cars. Subaru, Mazda, and Toyota all enjoyed increases in sales and customer loyalty. Ethical Cultures
The past two decades have witnessed numerous dramatic episodes of unethical individual and corporate activities. The Bernie Madoff Ponzi scheme scandal, the unethical activities in financial markets, and the car safety concerns from unexpected acceleration in Toyota automobiles serve as examples of the devastating impact of short-sighted, unethical actions.
Many company leaders have concluded that an ethical culture provides guidance to employees and managers that will keep a company on a better course. Socially responsible and ethical companies minimize negative actions such as cheating on taxes, selling defective products, discriminating against various employee groups, and breaking other laws. Socially responsible and ethical companies engage in
4/14/2015

Print
positive actions including fair treatment of workers, community relations efforts, and other altruistic activities.
Visible Statements of Commitment
In essence, if you want a more ethical culture, put the goal in writing. Many organizations have updated company mission statements to include clauses about the importance of social responsibility, ethical behaviors, and closely associated goals such as sustainability. Such pronouncements deserve highly visible platforms, so that employees and outside publics are made well aware of the intention to change or improve the company’s ethical culture.
Establish Ethical Expectations
Provide a Positive Role Model
Reward Ethical Acts and Punish Unethical Acts

Ethical and unethical actions take place at the individual and group levels. At the individual level, the performance appraisal process provides the opportunity to offer feedback about a person’s conduct.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 56 of 79
The benefits of ethical cultures include employee loyalty and commitment, a better standing in the community, and greater compassion from customers and the government. For these reasons, organizational change dedicated to building an ethical culture and environment is a worthwhile managerial goal. Many of the methods to change a culture overlap with tactics used to build an ethical culture.
Ryan McVay/Thinkstock A positive role model can help build an ethical culture.
An organizational code of ethics provides one venue for clearly communicating ethical guidelines. The standards can be based on those established in professional ethical codes, such as those followed by physicians, accountants, and academics. Company codes should spell out key values and ethical rules specific to the type of organization.
Company executives are closely watched by members of the organization. Those who cut corners and become involved in questionable actions set a standard of behavior that will be detrimental to the organization. Open lines of communication and transparent management practices communicate the importance of ethical actions.
4/14/2015

Print
Provide Help
In summary, changing a culture or creating a more ethical culture takes time. Managers must be committed to the change. Employees that respond positively should be rewarded and serve as role models.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 57 of 79
Rewards including pay raises and bonuses for meeting ethical standards encourage continued positive behavior. Punishments, which can range from sanctions such as fines to being sent home without pay, or termination in extreme cases, send a powerful message.
Groups engage in unethical activities such as collaboration on padding expense accounts and mileage vouchers, harassing or hazing targeted employees, and “time theft,” where goofing off or surfing the Internet are viewed as acceptable activities. To combat such problems, groups may be sanctioned as a whole, with each member receiving a punishment commensurate with the person’s involvement. Groups that continue to violate ethical codes should be broken up, or their leaders may require termination.
Many organizations provide ethical counselors to handle inquiries. Employees must not fear retribution for approaching these individuals. Smaller companies can offer access to what are essentially ethics hotlines, where employees can present ethical dilemmas and seek advice.
As with any other aspect of culture, breaking down what was presented and building in something new will take time. Top-level managers that truly want an ethical company must remain committed to these actions in order to see cultural change.
4/14/2015

Print
Learning Objective #3:
How has increased diversity affected today’s business environment?
2.3 Organizational Diversity

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 58 of 79
Diversity describes a wide spectrum of differences between people. Diversity concepts apply to individuals, groups, and organizations. At the individual level, a disability sets a person apart in one sense from others, as does sexual orientation. Groups and categories include those associated with age, race, and gender. Organizations include political affiliations, religious groups, and occupations (Gomez-Mejia, Balkin, & Cardy, 2005).
In the study of diversity, care must be taken to avoid assuming that group averages or characteristics apply to every individual or group. Differences between groups are normally smaller than differences within groups. In the world of business, typical groupings used to describe diversity include gender, age, racial identity, nationality, religion, sexual orientation, and physical disabilities. Gender
Women compose more than half the workforce in the United States. In addition to single working women, over 50% of the U.S. workforce consists of employees from two-income families in which both spouses work (United States Department of Labor, 2011). Issues of marriage, child raising, career development, and work–life balance persist for both men and women.
In the United States, many women postpone marriage in order to begin careers. Numerous careers are interrupted by either having children or deferring to a spouse’s career path. Some companies have responded to these challenges by offering on-site day care, job sharing, and other programs; however, the majority of companies do not.
One of the more commonly noted problems, the glass ceiling, continues in many companies and industries. Theglass ceiling refers to a barrier that prevents women from advancing to top level executive positions. The term “old boy network” describes a continuing system in which males dominate the agenda of an organization, including promotion decisions. The social network systematically excludes women from moving up. Mentoring programs and other systems have been designed to reduce the problem; however, evidence suggests that perceptions play a key role in maintaining the glass ceiling, especially when top executives view the barriers to advancement in ways that are different from the women seeking to break through to higher levels (Ragira, Townsend, & Mattis, 1999).
4/14/2015

Print

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 59 of 79
Many sources that examine the concept of gender diversity only consider women in the study of the workforce. A more expansive view considers how gender roles and interrelationships between men and women can either cause problems and complicate organizational life or serve as an advantage for the company. Family-friendly organizations find it easier to recruit and retain quality employees. The impact of gender diversity on organizational behavior may be found in topics such as work–life balance, job design, job satisfaction, commitment to the organization, turnover, and leadership.
One newer method of helping maintain work–life balance,telecommuting, involves working at home and utilizing technologies such as the Internet and the phone system to transmit finished projects to an office. In 2008 nearly 3 million jobs, or about 14% of workforce positions contained elements of telecommuting (Telework Research Network, 2011). A parent with children in school can work at home and then tend to family needs during other parts of the day. Telecommuting allows new parents to work when the child sleeps and during times when the other spouse is at home. Telecommuting has been noted as a method for reducing wife/mother/employee role conflicts as well as husband/father/employee role conflicts (Madsen, 2003). Age
By 2006, the average age of the United States workforce had reached 40 (Gomez-Mejia, Balkin, & Cardy, 2005). The trend toward an increasingly older work population will begin to decline in this decade, as members of the Baby Boomer generation retire. In 2011, 13% of the U.S. population was over the age of 65. By 2030, the figure will be 18%. The 2008 economic downturn combined with better health and increased life expectancy has slowed the number of older workers who wish to stop working, further complicating the workplace environment (Stibich, 2011).
Age differences can complicate the manager’s role. Senior workers hold the greatest level of experience and can teach and mentor younger employees. The U.S. economy is driven by a large services sector, where physical strength and endurance are not required. Senior workers in these occupations are able to remain on the job for longer periods of time. The net result may be that managers receive assistance in training and socializing new workers and younger employees. Progressive companies include senior employees in formal mentoring programs and strategy sessions (Cadrain, 2008).
Age may not be respected equally in every company or in every country. While age may be revered in many parts of the world, the traditional view that employees become more valuable as they continue their careers faces skepticism in many countries, including the United States. Commentaries suggest that companies employing large numbers of senior workers will experience rising health insurance costs. The same workers may have accumulated longer vacation packages and sick leave days. Longer vacations and days set aside for a lengthy recovery from a medical issue remove the employee from the workplace, requiring others to pick up the slack. Some managers might notice resentment toward those who are away for longer periods of time.
4/14/2015

Print
Hispanic Populations
Figure 2.1: Composition of identifiable groups in the United States

According to the latest census, three of the largest population segments in the United States are classified as Hispanics, African Americans, or Asian Americans. Source: U.S. Quick Facts from the Census Bureau, http://quickfacts.census.gov/qfd/states/00000.html

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 60 of 79
Age diversity also affects younger workers. Some may become frustrated by the inability to move up the chain of command, because senior managers stay on the job past the traditional retirement age. Younger employees might express frustration that their newer, more cutting-edge skills are not fully utilized. Managers should monitor and respond to these potential rivalries. Race
Immigration into the United States has created both conflict and growth in the economy. Each generation of Americans has experienced the influx of groups of individuals from other countries. Diversity issues associated with race have long existed. Three of the largest population segments in the United States are Hispanics, African Americans, and Asian Americans. In the United States, however, statistical racial composition profiles are somewhat skewed, because neither Hispanic nor Latino is considered to be a race. With that caveat in mind, Figure 2.1 identifies the composition of various groups in the United States.
The terms “Hispanic” and “Latino” do not represent a specific race. Instead, they apply to sets of individuals with common characteristics, including Spanish as a primary language—at least in the country of origin; the Catholic religion; and ancestry in former colonies of Spain. Spanish surnames and customs are found in Spain, Mexico, Cuba, Central America, and South America.
4/14/2015

Print
African Americans
In the business community, managers should be aware of racial incidents. Progressive companies develop programs to recruit, train, and promote minority members, including African Americans. Working toward equality and fair treatment of all remains an important ethical objective for African Americans as well as other minority groups.
Asian Americans

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 61 of 79
The Hispanic subset of U.S. citizens represents business opportunities and specific management needs. Approximately 770,000 Hispanic-owned firms were projected to exist by the year 2005 (Mendosa, 1996). The 2008 recession reduced that number; however, the majority of these organizations remain. Companies that conduct business with Hispanic-owned firms enjoy a large marketplace that can be reached through Spanish-language media such as radio, newspapers, and magazines. Many U.S. companies are starting to recognize the potential purchasing power held by Hispanics.
Managers are challenged by certain issues related to the Hispanic population as members of the workforce. One problem, stereotyping, occurs when all persons with one characteristic, such as Hispanic origin, are incorrectly assumed to have a set of common characteristics. When either managers or coworkers make these false and racist generalizations, the workplace becomes divisive and unpleasant.
The second challenge is language. An individual whose primary language is Spanish often copes with misunderstandings and other problems associated with English, even when the individual speaks some English. Supervisors who do not speak Spanish encounter a similar difficulty. Bilingual managers are a valued resource in companies in regions with significant Hispanic populations.
Approximately 11% of the U.S. workforce is African American, with ancestry of at least one parent originating in Africa. Discrimination and stereotyping continue to haunt this minority group. The election of President Obama, while viewed as a positive step, has not solved the problems associated with bigotry and systematic exclusion of African Americans in many organizations. The 2008–09 recession dramatically impacted employment statistics of African Americans, who suffered disproportionate job losses relative to the entire population. Some view this as evidence that discrimination and an unfair playing field still exist.
At the same time, African Americans are viewed by marketers as a potentially valuable segment that can be reached via specific media, such as the BET cable channel and magazines includingEssence and Black Enterprise.
Asian Americans also originate from several countries. As a group, Asian Americans constitute about 4% of the U.S. population. These individuals encounter different kinds of stereotypes and discriminatory
4/14/2015

Print
Managers are advised to break down these perceptions and deal with members of this group in the same ways as other American minorities. The Equal Employment Opportunity Commission (EEOC) recommended the following steps to improve the employment circumstances of Asian Americans in 2010:
lStrengthen leadership and personal commitment to diversity from top management in the private sector. lStrengthen commitment to diversity in U.S. employment agencies. lMake certain the EEOC is fully accessible to Asian Americans. lCollaborate with Asian American community organizations. lSupport Asian American employee groups. lImprove Asian American documentation and support for promotions. Religion

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 62 of 79
practices than Hispanics and African Americans. One recent research report suggests that nearly one-third of Asian-American employees have been subject to workplace discrimination (Montero, 2011), including unequal pay and promotion decisions, favoritism toward others by management, and incidents of stereotyping. Promotion issues have led to the term “bamboo ceiling,” and “sticky floors,” which suggest Asian Americans are often held to lower ranks in the organizational hierarchy and cannot break through to top management (Fisher, 2005).
Matters of religion have affected interactions among citizens for centuries. In the 1960s, concerns were expressed because President John F. Kennedy was Roman Catholic. The events of September 11, 2001 changed the American perspective with regard to religion. Specifically, members of the Islamic faith became targets of hostility in the media, in local communities, and in the workplace. As time passes, the hope is that greater cultural integration will include a reduction in such religious divisions.
As a matter of law, employment discrimination based on a person’s religion is prohibited, as is discrimination based on race, sex, age, or national origin. In practical terms, a hostile workplace based on religion creates similar discomfort to intolerance based on race and gender. Ethical managers seek to reduce these tensions and create understanding among employees with diverse religious beliefs. Figure 2.2 presents 10 of the largest Christian denominations in the United States as well as the largest general categories of affiliations. A denomination constitutes an organized religious organization. Affiliation represents more basic concepts of religious belief or nonbelief. Figure 2.2: Religious denominations and affiliations in the United States
4/14/2015

Print

Employment discrimination based on a person’s religion, race, sex, age and national origin is prohibited by law. Effective managers will embrace these differences and create a sense of understanding among diverse coworkers. Source: Retrieved from www.adherents.com, “Largest Religious Groups in the United States of America.” Sexual Orientation

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 63 of 79
In 2010, the repeal of the “don’t ask, don’t tell” policy regarding members of the military took place in the context of a continuing national debate regarding rights of gays, lesbians, and other groups. Contested issues include the right to marry and live with the same rights as heterosexual couples, including hospital visitation, access to health insurance coverage, and inheritance rights.
In the workplace, intolerance of gay, lesbian, and transgender coworkers persists, in spite of laws that make discrimination based on sexual orientation illegal. Gay slurs continue to make headlines in the worlds of entertainment and sports. Debates then move to other places, including the office. Managers are expected to defend employees from defamatory statements and to try to instill respect toward others regardless of differences.
4/14/2015

Print
Disabilities
Recruit from New Sources

Ambient Images Inc./SuperStock Job fairs draw applicants from many different backgrounds, which means they are a key venue for companies seeking to increase potential employee

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 64 of 79
A disability represents diversity in the sense that it is a distinguishing characteristic. The Americans with Disabilities Act covers the basic rights of individuals with disabilities. The EEOC takes further steps to help those with special needs in the workplace. Many business organizations have taken dramatic steps to help accommodate those with disabilities. Approximately 15 million disabled U.S. citizens are employed.
Statistics indicate that disabled workers are less prone to absenteeism and turnover than other employees (Workforce Strategies, 1993). Managers are aware that disabled workers can make others feel uncomfortable and that they may feel isolated or patronized in many working situations. Therefore, increasing sensitivities toward disabled workers remains an important goal. This includes education of coworkers and peers to help both the disabled employee and others to feel more comfortable with each other. Reducing patronizing statements and isolation of those with disabilities creates a proactive response to improve the workplace for those with special needs.
One response to assisting disabled workers who have difficulty traveling has been the implementation of telecommuting positions. This and other innovative approaches can become part of an overall diversity management strategy. Diversity Management Strategies
Just as the “old boy” network must be broken down in order to remove the glass ceiling, steps must be taken to improve the circumstances of other groups. As has been suggested, companies that embrace diversity often reach wider audiences with products and services, benefit from innovative ideas from untapped members of society, and perform a social good. Seven key activities are part of a quality diversity management system (Cox, 1993, pp. 225–241; Harvey & Allard, 2002).
One element of the human resource management process involves planning for future personnel needs. Human resource planning programs can be designed to emphasize finding recruits from diverse backgrounds. Doing so involves publicizing efforts to attract minority applicants. Internship programs and job fairs can be established to create pipelines of minority member applicants. The power of word of mouth and social media should not be ignored. Part of recruiting involves getting the word out that a company has a true interest
4/14/2015

Print
diversity.
Unbiased Selection Processes
Training and Orientation for Minority Group Members
Encourage Sensitivity by All Employees
Many larger organizations now provide diversity training. The goals of such programs are to encourage employees to embrace the idea that diversity creates an advantage for a company and to enjoy cultural and individual differences. The process can begin at an earlier stage, in the recruiting and selection processes. Applicants can be notified that the company intends to build a diverse workforce. The selection criteria can include an acceptance of or excitement about working in such an environment.
Flexibility in Responding to Worker Requests
An effective diversity program recognizes that
in a more diverse workforce.

Motivational Strategies

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 65 of 79
Many major orchestras across the United States employ a unique selection process. When a finalist plays for the judging committee, the musician plays behind a screen. Only the music matters. The judges cannot see the person’s physical appearance. This technique cannot be applied to many situations; however, the concept can. Selecting candidates solely for their potential to succeed, without any other biases involved, encourages true diversity. Many organizations use multiple raters to examine an employee’s application or resume, with the goal of making sure the applicant receives unbiased treatment during the selection process.
Many times, someone from an unusual or different background will experience a sense of discomfort with a new, unfamiliar organization coupled with the potential lack of familiarity with various company procedures. Training methods establish an environment in which a person can remain confident, knowing his or her background may be different, but at the same time feeling assured the adjustment to the new situation will take place.
4/14/2015

Print
Motivation Programs Tailored to Individuals
Reinforce Differences in Positive Ways

Numerous sources cite the importance of embracing diversity. In essence, the idea is to accept the principle of multiculturalism for its own sake. Doing so can take forms as simple as themed office parties or celebrations, such as Cinco de Mayo or Eid ul-Fitr (the end of Ramadan), or as complex as diversity and cultural sensitivity training sessions. Allowing workers to decorate their work spaces with personal items that reflect cultural diversity also expresses the objective of embracing diversity. Managers that take the time to learn a few key phrases that apply to another culture establish a higher level of rapport with employees. In essence, diversity can be celebrated in a variety of ways. Anything that enhances cultural understanding or knowledge about others can be rewarded and

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 66 of 79
employee needs vary. Women and men who have children need time to tend to matters such as doctor’s office visits and parent-teacher conferences at school. Individual cultures and religions have different holidays. Senior workers might make requests under unusual circumstances, such as wishing for time off to help out their children or grandchildren in some way. Listening constitutes a key element in flexibility. Managers who pay attention to employee needs are often rewarded with loyalty and extra effort.
Motives vary by personal circumstance. A single parent will have motives that are different from someone approaching retirement age with an empty nest. Factors such as the cost of health insurance may be highly important to a single parent, whereas the viability of a company’s retirement program can be the driving factor for a senior employee. Managers should be reminded that two kinds of motives exist. Extrinsic motives are tangible and visible. They include pay raises, promotions, prizes in contests, positive performance appraisals, and pension plans provided by companies. These motives can be adapted to fit the needs of various organizational members.
Intrinsic motives are internal. Intrinsic satisfaction results from performing at a high level, helping others, and taking advantage of one’s own talents and abilities. Employees may derive additional satisfaction and motivation from winning a sales contest, receiving promotion to a certain rank, or being chosen to lead a task force or committee. A complete diversity program accounts for both extrinsic and intrinsic motives.
George Doyle/Thinkstock Winning a company-sponsored contest provides both extrinsic and intrinsic rewards.
4/14/2015

Print
emphasized by management. The Four-Layer Diversity Model
Table 2.4: Barriers to diversity strategies Continual stereotyping

Fears of reverse discrimination
Low priority as an organizational activity
Failure to include diversity efforts in performance appraisal
Resistance to change
Poor management training techniques

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 67 of 79
Managers can employ the principles of the four-layer diversity model to help employees understand diversity issues. The model suggests that the innermost level is personality, which includes likes, dislikes, attitudes, and beliefs that are unique to each individual. The second layer, internal dimensions, consists of the features noted in this section, including gender, sexual orientation, race, and age. The third layer, external appearance, includes other characteristics, including religion, income, geographic location, personal and recreational habits, educational background, and appearance. The fourth layer, the organizational dimension, includes work location, work type, seniority, managerial status, and other features of the company.
The model can be used to understand how we think about and evaluate others based on our biases. It also can help an individual explore his or her own career choices. Team exercises designed to build trust and acceptance can be based on the personal perceptions and views of others (Gardenswartz & Rowe, 1998). Barriers to Diversity Strategies
“Everything communicates” is a key phrase in marketing. The same is true of a diversity management program. Company leaders dedicated to diversity understand that a variety of incidents and decisions can detract from a strong program. Encouraging diversity links closely with seeking to shape or redefine a company’s culture. The program may take time, and obstacles can appear along the way. Table 2.4 identifies the primary forces that can detract from a company’s diversity management agenda (Kinicki & Kreitner, 2009, pp. 107–108).
Continual stereotyping represents a major obstacle to the creation of an accepting and diverse workforce. Overcoming it requires managers to pay attention to any slurs and generalizations, correcting them as they occur.
4/14/2015

Print
When diversity management has a low priority, employees quickly catch on. Members of an organization follow what leaders stress as important. For a diversity program to succeed, top management must buy in and keep the company on course.
Resistance to change can be found in practically any organization. The term “organizational inertia” identifies resistance to change as an institutionalized issue. Diversity programs represent change and may encounter resistance as a consequence.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 68 of 79
Fears of reverse discrimination often are directed at programs such as affirmative action. Terms such as “quota systems” are used to resist the implementation of diversity efforts. Management communication processes at all levels can help reduce these concerns.
The failure to include diversity in performance appraisal systems indicates the company only pays lip service to the program. Many organizations have adapted performance appraisal systems to account for cultural differences.
Poor management training programs fail to incorporate diversity management in the process. As a result, diversity appears to be a low priority and managers do not know how to effectively respond to employee needs or discriminatory incidents. Diversity management begins at the top and must permeate every level of the organization in order to succeed.
As noted, each of the potential barriers to diversity management can be overcome. True diversity often signifies a cultural shift in the organization. All of the tactics designed to change a culture can play a role in instituting a truly multicultural environment.
In summary, diversity describes a wide spectrum of differences between people. Companies seeking to encourage and embrace diversity employ various strategies and tactics. Still, many barriers to diversity management programs remain. Managers who adapt to and take advantage of diversity create major advantages for their companies. Managers who fail to embrace diversity risk falling behind in the new competitive, multicultural world of business.
4/14/2015

Print
Learning Objective #4:
How does the socialization process help new employees fit in with their employer companies?
2.4 Socialization

FogStock/Thinkstock Researching an organization’s culture prior to joining a company is an important part of the anticipatory phase of organizational socialization.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 69 of 79
Within the field of organizational behavior, socialization is the process of internalizing or assimilating an organization’s values. Part of socialization includes learning the organization’s culture. Socialization programs range from simple interactions between employees to highly developed systems. Sanyo’s orientation program places new employees into circumstances in which they live and eat together for five months at a company-sponsored resort. Among the items new workers learn are how to dress, speak, and even groom themselves. The company intends to develop kaisha senshi, or corporate warriors, through these efforts. The Phases of Socialization
The organizational socialization process includes three phases (Feldman, 1984), which are displayed in Table 2.5. The first, anticipatory socialization, involves the learning that takes place prior to joining an organization. Other sources refer to the first stage as pre-arrival. Potential applicants may learn about a company from members of their families, from encounters at school, from social media, or from visits with members of a profession. The restaurant chain Denny’s experienced problems in terms of negative publicity in the early 2000s. Specifically, charges of racism toward employees and customers had been raised. In response, the company’s leadership began an active program to recruit and train minorities for management positions, thereby hoping to influence the pre-arrival stage.
The second stage of organizational socialization, the encounter, takes place as the individual learns more about the company. The worker begins to compare his or her expectations about the firm’s culture with reality. Employee training programs are available to emphasize new aspects of a culture as workers learn their jobs. Training extends to the supervisor in charge as well as the human resource department.
4/14/2015

Print
Table 2.5: Stages of organizational socialization StageNew Employee Action or Evaluation

Anticipatory Socialization
Encounter
Change and Acquisition
Forms of Socialization
Formal Versus Informal Socialization
Individual Versus Collective Socialization
anticipating new employer expectations anticipating employer needs for skills and abilities anticipating employer’s sensitivity to one’s needs and values
seeking role clarity managing group interactions balancing life and work
completing role demands as required mastering tasks internalizing cultural norms and values
Individual companies have personalities, and each responds to its environment in different ways. Internal functions are managed in various ways as well. Company leaders can proactively create and fine-tune the socialization process. Doing so involves a series of decisions about how to engage with new employees (Van Maanen, 1978; Shein, 1990).
Individual socialization takes place as a person receives private instruction or training. Collective

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 70 of 79
The third stage, change and acquisition, also called the metamorphosis stage, occurs as the employee masters the skills and role performance needed to succeed in the organization. The change may include moving personal values and working methods closer to those imposed by the organization. At that time, observance of role models and coaches becomes a powerful influence. Zappos.com CEO Tony Hsieh had his office cubicle strategically placed at the center of the work zone. The message was clear: he valued his peers and wished to be accessible. Top managers can seek to change a culture by providing visible messages about what must be done.
Formal socialization involves a new employee engaging in a clearly designated, separate socialization program. Normally formal socialization takes place somewhere away from the job, as part of orientation or new employee training systems. Informal socialization occurs when the employee receives attention from coworkers and supervisors. Questions are answered and suggestions are given as to how the new employee can effectively fit in. Formal and informal socialization do not present an either–or scenario. Both can occur as the person enters the organization.
4/14/2015

Print
Fixed-Versus Variable-Advancement Socialization
Serial Versus Random Socialization
Divestiture Versus Investiture Socialization
Some of these categories do not represent mutually exclusive approaches. Formal and informal socialization can both take place. Employees can be socialized individually at times and collectively at others. Socialization can occur serially and randomly.
The other two methods involve choices. Employees can receive either fixed or variable socialization programs. Employees will be socialized either through divestiture or investiture.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 71 of 79
socialization occurs in groups. The benefit of individual attention will be personalized instruction tailored to the person’s unique needs. The advantage of collective socialization can be that new employees reinforce each other as the program proceeds.
Fixed-advancement socialization involves all employees spending the same amount of time on each stage of training. Promotions or advancements to additional new stages occur on a fixed timetable. Variable-advancement socialization tends to be goal- or objective-based. After an employee completes a stage of training and adjustment to the company, the individual moves on. Variable-advancement socialization works well when training disadvantaged individuals or members of minority groups who require additional or special attention. Fixed-advancement systems are used in circumstances in which all employees are expected to learn and adjust in comparable time frames.
Serial socialization places employees with various staff members for specific training programs. That way, the newworkers learn from experts. Random socialization occurs when new employees are not paired with specific staff members. Instead, individuals seek advice and training as they see fit. Serial socialization will be used when specific skill sets or knowledge bases are required. In that way, the company has greater assurance that new employees have received proper training. Random socialization matches companies with generalists who perform numerous tasks or carry out a variety of activities.
Divestiture socialization requires “unlearning” of personal characteristics and habits in order to fit in with others in the organization. Military training involves the classic divestiture approach. Investiture socialization assumes the individual possesses unique traits and characteristics that may be of value to the organization. In essence, one can inject his or her own personality into the job.
As most human resources managers will attest, first impressions matter. New employees will discover whether they have made appropriate work choices fairly quickly. Some will discover the fit cannot and will not exist. They can then move on to more favorable working situations.
4/14/2015

Print
Mentoring and Socialization

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 72 of 79
A mentor is an individual who assists a less-seasoned employee. Mentoring involves several activities, including listening to and reviewing ideas, introducing the mentee or protégé to key individuals who might offer help, showing the person how to act and perform the job, and providing emotional support. Mentoring systems can be formal or informal. Formal systems assign mentors to individuals. Informal approaches allow the relationships to form naturally.
A portion of mentoring involves interpreting the organization’s culture to the protégé. Other activities include providing exposure and visibility to the mentee, protecting the individual from internal threats and competitors, helping with assignments, and providing friendship.
Individuals with mentors have an important career advantage. Some sources suggest developing sets of mentors, or networks. To do so involves taking the time to develop close relationships with diverse organizational members who can offer assistance and guidance. Showing appreciation for the counseling and support helps continue a strong mentor–protégé relationship.
The socialization process represents a key opportunity to develop quality employees. It can also be used to support organizational change and a more ethical culture. Effective managers pay attention to all aspects of the socialization process.
4/14/2015

Print
Chapter Summary

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 73 of 79
Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. It includes the shared meanings associated with the symbols, rituals, and language. Culture combines the philosophy of the firm with beliefs, expectations, and values shared by members. It contains the stories and myths about the company’s founder and its current leading figures, who are the firm’s heroes and heroines.
Culture is transmitted in a variety of ways, beginning with the recruiting process. Organizational culture provides several key functions, including making the organization distinct, creating a sense of identity for organizational members, building a strong social system, and helping members fit in. The three layers of culture employees encounter include observable artifacts, espoused values, and enacted values. Organizational stories transmit culture by explaining dualities, equalities and inequalities, and events in the past. Stories maintain organizational heroes and heroines. Cultures take several forms including clan, hierarchy, adhocracy, and market versions. Members of a positive culture enjoy the benefits of stability, employee self-management, and smoother integration of new members.
When cultural change becomes necessary, management can work toward a new version through top-level pronouncements, company language, workplace redesign, reward system changes, training programs, role modeling, coaching, organizational systems and procedures, and goal-setting programs. Ethical cultures are built and maintained by visible statements of commitment, establishing ethical expectations, providing positive role models, rewarding ethical acts, punishing unethical acts, and providing help in the form of ethical counseling.
Diversity concepts apply to individuals, groups, and organizations. In the world of business, typical groups used to describe diversity include gender, age, race, nationality, religion, sexual orientation, and physical disabilities.
Problems associated with diversity issues can be addressed by recruiting from new sources, seeking to use unbiased selection techniques, providing quality training and orientation programs for minority members, encouraging sensitivity by all employees, maintaining flexibility in responding to employee requests, tailoring motivational programs to individual employees, and reinforcing differences in positive ways. Diversity management programs often require a cultural shift or change in order to succeed.
Socialization is the process of internalizing or assimilating an organization’s values. Typically, socialization takes place in three stages: anticipatory socialization or pre-arrival, an encounter, and change and acquisition, or metamorphosis. Each of the stages helps the new employee understand the company’s culture in relation to his or her own value set and then eventually helps the employee to align the two to create a positive working situation.
4/14/2015

Print
CASE STUDY: Firestone—Rejuvenating a Culture

In 2000, the automotive tire manufacturer Firestone faced the largest recall in history. The National Highway Transportation Safety Administration raised serious concerns about the high number of incidents of tire failure. Officially, 119 deaths and over 3,000 injuries were attributed to rollover accidents caused by tire blowouts, mostly on Ford Explorers.
The report led to what could best be described as a “blame game” between Ford Motor Company and Bridgestone/Firestone. Tadakazu Harda, Bridgestone vice president of overseas operations, was quoted as saying, “No specific problem was found with the design or production methods of our tires.” Bridgestone/Firestone executives suggested that driving at high speeds, high temperatures, and tire inflation problems contributed to the accidents.
In response, Ford Motor Company executives pointed out that the similar tires made by Goodyear had not experienced the same blowout problems. Company leaders kept quiet about the rollover problem present in the Ford Explorer, which was far more dramatic than in other sport utility vehicles (SUVs).
The episode played out in the business and popular press for months, costing both Ford and Firestone customers. The recall of the Firestone tires led to additional losses. Both companies were tainted by the events for many years.
Stan Richards, owner of The Richards Group advertising agency, was asked to help rebuild consumer confidence in the Bridgestone/Firestone brand. The Richards Group’s approach to working with a client involves far more than simply creating advertisements. Richards notes, “When we’re hired by a client, it’s not just to make ads. We do so many things that are extremely important. The ad is what the consumer ultimately sees, but in order to get there, you have to have a dead-on strategy. You go through the strategic process, you get to the right answer, and then you can execute against the answer.”
In the case of Firestone, Richards noted, “We came into a different kind of relationship when we started to work with Firestone. Obviously the same company (as Bridgestone), but a different brand. We felt, that in talking with people across the Firestone organization, that they were deeply troubled by what had happened in that recall.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 74 of 79
Companies can engage in socialization programs that range from informal to formal. Employees can be trained and socialized individually or collectively. Advancement can take place on a fixed or variable schedule. Socialization programs offered in serial or sequential form vary from those presented randomly. A mentor can provide positive help in the socialization process.
4/14/2015

Print
In many ways, we felt as though they had lost their enthusiasm, their excitement, and so, our first counsel to the client was, ‘Let’s worry about the internal organization before we think about the external audience.’ And so, our initial work has been all about making our own people feel really good about what they’re doing.”
Firestone and The Richards Group chose the company’s sponsorship of the Indianapolis 500 as the rallying point. As Stan Richards put it, “The communication that we’ve got, that runs in the Indy race, has been really for two purposes. One is to reinstate the validity of the brand, but the second is to make the people of Firestone feel good about what they’ve been doing . . . feel good about their jobs, feel good about the company, and we’ve accomplished that” (S. Richards, personal communication, January 20, 2010). Case Questions
Review Questions
1.What was the major cultural challenge facing Firestone? 2.Besides the Indianapolis 500 event, what other methods of cultural change could have been implemented by Firestone’s leadership team? 3.Refusing to accept responsibility for the accidents and deaths associated with the tires and SUV accidents may have been the best legal approach, in terms of lawsuits and governmental responses. Was it the most ethical response? 4.What should Firestone’s leadership team do to instill a more ethical culture in the company?

Define dominant culture and subculture.

What is meant by the term “strong culture”?

A company with a strong culture employs members who intensely hold and readily share the organization’s core values.
Name the functions performed by culture.

Culture makes an organization distinct, creates a sense of identity, builds a strong social system, and helps employees “fit in.”
What activities are involved in attempting to change a culture?

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 75 of 79
The dominant culture articulates the core values shared by a majority of an organization’s members. A subculture, in an organizational context, arises from the common problems, situations, and experiences that a set of members faces.
4/14/2015

Print
Name the groups that are typically used to describe diversity in the world of business.

What activities are involved in diversity management programs?

What are the potential barriers to diversity management programs?

Name and briefly describe the three stages of employee socialization.

Identify the choices to be made by managers when creating socialization programs.

What activities and functions are provided by mentors?

 

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 76 of 79
Activities include top management pronouncements, changes in company language, workplace redesign, reward system changes, training programs, systems and procedures, and goal setting.
In the world of business, typical groupings used to describe diversity include gender, age, racial identity, nationality, religion, sexual orientation, and employees with physical disabilities.
Diversity management strategies include recruiting from new sources, unbiased selection processes, training and orientation for minority members, encouraging sensitivity by all organizational members, flexibility in responding to worker requests, motivation programs tailored to individuals, and reinforcing differences in positive ways.
Barriers include continual stereotyping, fears of reverse discrimination, having a low priority as an organizational activity, the failure to include diversity efforts into performance appraisal, resistance to change, and poor management training techniques.
Anticipatory socialization involves the learning that takes place prior to joining an organization. The encounter takes place as the individual learns more about the company and begins to compare his or her expectations about the firm’s culture with reality. The change and acquisition (or metamorphosis) stage occurs as the employee masters the skills and role performance needed to succeed in the organization.
The five potential methods for socializing new workers include (1) informal or formal, (2) individual or collective, (3) fixed or variable advancement schedule, (4) serial or sequential format, and (5) divestiture versus investiture.
Mentoring involves several activities, including listening to and reviewing ideas, introducing the mentee or protégé to key individuals who might offer help, showing the person how to act and perform the job, and providing emotional support. Analytical Exercises
1.Based on your knowledge of U.S. businesses, name three companies you believe have strong cultures. Write down the reasons why you think these companies exhibit strong cultures. Then, name three domestic companies you believe have weak cultures and explain your reasoning. 2.Assume you have been chosen to consult with a company that has recently faced both legal problems
4/14/2015

Print

Click on each key term to see the definition.
anticipatory socialization

The stage of learning that takes place prior to joining an organization.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 77 of 79
and bad publicity due to ethics violations. Prepare a report spelling out how the culture must change along with ways to build a more ethical culture. Then explain to management why making these changes will be the key to the firm’s long-term survival. Tailor your report to one of the following industries, including the kinds of legal troubles firms in that industry have faced, ethical problems that these companies have encountered, and specific remedies for a company in that industry. lFinancial/stock market lRetail grocery chain lReal estate sales 3.Using the tactics a manager can use to change the culture of an organization, explain how you can build a stronger diversity management system by incorporating those ideas. Also explain why building a diversity management program might be more difficult in a strong (as opposed to a weak) culture. Include espoused and enacted values in your answer. 4.Explain the difficulties you would expect to encounter in creating a diversity management program in the following types of organizations. Explain your reasoning, including the factors that create diversity challenges in these organizations. lAll-white, all-male country club lHooters™ restaurant chain lRoman Catholic Church lFinancial investment company lCollege football lProfessional hockey lU.S. military 5.Using the five potential methods for socializing new workers—(1) informal or formal, (2) individual or collective, (3) fixed-or variable-schedule advancement, (4) serial or sequential format, and (5) divestiture versus investiture—develop programs for workers in the following types of organizations. Explain your reasoning for each choice. lPolice officer trainee lManager trainee, retail chain store such as Target or Costco lInsurance salesperson, office with 20 sales reps lInformation technology specialist Key Terms
4/14/2015

Print
change and acquisition

Also called the metamorphosis stage, this third stage of organizational socialization occurs as the employee masters the skills and role performance needed to succeed in the organization.
diversity

The term used to describe a wide spectrum of differences between people.
dominant culture

The core values shared by a majority of an organization’s members.
enacted values

The values and norms exhibited as employee and managerial behaviors.
encounter

espoused values

The explicitly stated values and norms that are found in organizations.
extrinsic motives

Rewards given by others, such as pay raises, promotions, prizes in contests, positive performance appraisals, and pension plans that are delivered by the company.
glass ceiling

The metaphorical barrier that prevents women from advancing to top level executive positions.
intrinsic motives

Personal internal rewards that result from performing at a high level, helping others, and taking advantage of one’s own talents and abilities.
norms

The rules of behavior that guide members of a group or organization.
role clarity

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 78 of 79
The second stage of organizational socialization, in which the individual learns more about the company and its culture.
What exists when a person has a clear understanding of his or her function in the organization and how
4/14/2015

Print
to complete all assigned tasks.
socialization

The process of internalizing or assimilating an organization’s values.
stereotyping

strong culture

subculture

telecommuting

Working at home and utilizing technologies such as the Internet and the phone system to transmit finished projects to a central office.

https://content.ashford.edu/print/AUBUS610.12.2?sections=ch01,sec1.1,sec1.2,sec1.3,sec1
Page 79 of 79
What occurs when all persons with one characteristic are incorrectly assumed to have a set of common characteristics.
A company that employs members who intensely hold and readily share the organization’s core values.
In an organizational context, refers to the common problems, situations, and experiences that a set of members faces.
4/14/2015

Don't hesitate - Save time and Excel

Are you overwhelmed by an intense schedule and facing difficulties completing this assignment? We at GrandHomework know how to assist students in the most effective and cheap way possible. To be sure of this, place an order and enjoy the best grades that you deserve!

Post Homework
Top