1. Human Relations in Business
Week 1 Discussion

2. Your OB Toolbox
Tools you can use
Ideas to consider
today
Toolbox
Higher quality
Increased value to
interactions with
organizations
others

3. Chapter 1 Organizational Behavior
Learning Objectives
What is organizational
behavior (OB)?
Why does organizational
behavior matter?
What research methods are
used to study organizational
behavior?
What challenges and
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opportunities exist for OB?
3

4. What is Organizational
Behavior?
OB is the systematic
study and application
of knowledge about
how individuals and
groups act within the
organizations where
they work.

5. Three Levels of Analysis
Example:
How the
organization’s
Organization culture affects a
manager’s
behavior
Group
How a given
manager’s
personality
affects the team
Individual The manager’s
personality itself

6. NACE Survey Results-
What Matters to Employers?
Communication Honesty & Interpersonal
Skills Integrity Skills
Motivation & Strong Work
Initiative Ethic

7. Putting Common Sense to the Test
Are the following questions true or false?
1. Brainstorming in a group is more
effective than brainstorming alone. 6. If a person fails the first time,
they try harder the next time.
2. The first five minutes of a 7. People perform better if goals
negotiation don’t matter much. are easier.
8. Most people within
3. The best way to help someone organizations make effective
reach their goals is to tell them to decisions.
do their best.
9. Positive people are more likely
4. If you pay someone to do a task to withdraw from their jobs when
they routinely enjoy, they’ll do it they are dissatisfied.
even more often in the future.
10. Teams with one smart person
outperform teams where everyone
5. Pay is a major determinant of
how hard someone will work. is average in intelligence.

8. Putting Common Sense to the Test
1. Brainstorming in a group is more 6. If a person fails the first time,
effective than brainstorming alone. they try harder the next time.
2. The first five minutes of a 7. People perform better if goals
negotiation don’t matter much are easier.
3. The best way to help someone 8. Most people within
reach their goals is to tell them to do organizations make effective
their best. decisions
4. If you pay someone to do a task 9. Positive people are more likely
they routinely enjoy, they’ll do it to withdraw from their jobs when
even more often in the future. they are dissatisfied.
10. Teams with one smart person
5. Pay is a major determinant of how
outperform teams where everyone
hard someone will work.
is average in intelligence.

9. Brainstorming in a group is
more effective than
brainstorming alone. -False
Brainstorming can be just as effective when
done alone as when done in a group.
Research shows individuals often outperform
teams in both quality and quantity of ideas.
Sources: Nijstad, B. A., & Stroebe, W. (2006). How the group affects the mind: A cognitive model of idea generation in
groups. Personality and Social Psychology Review, 10, 186-213. Diehl, M., & Stroebe, W. (1987). Productivity loss in
brainstorming groups: Toward the solution of a riddle. Journal of Personality and Social Psychology, 53, 497-509. Mullen, B.,
Johnson, C., & Salas, E. (1991). Productivity loss in brainstorming groups: A meta-analytic investigation. Basic and Applied
Social Psychology, 12, 3-24.

10. The first five minutes of a negotiation
are just a warm up to the actual
negotiation and don’t matter much.
-False
Research shows that what happens
in the first five minutes of a
negotiation can greatly enhance the
prediction of the outcome of the
negotiation.
Source: Curhan, J.R., & Pentland, A. (2007). Thin slices of negotiation: Predicting outcomes from conversational dynamics
within the first 5 minutes. Journal of Applied Psychology, 92, 802-811.

11. The best way to help someone
reach their goals is to tell them to
do their best. -False
Individuals who have specific goals with
feedback regarding their progress along
the way do much better in achieving their
goals than those who are simply told to do
their best.
Source: Tubbs, J. (1986). Goal setting: A meta-analytic examination of the empirical evidence. Journal of Applied Psychology,
71, 474–483.

12. If you pay someone to do a task
they routinely enjoy, they’ll do it
even more often in the future.
-False
Research shows that if you pay
someone for something they
intrinsically (internally) enjoy for the
joy of it, they will actually do that task
less often on their own in the future.
Sources: Deci, E. L., & Ryan, R. M. (1985). Intrinsic motivation and self-determination in human behavior. New York: Plenum
Press; Eisenberger, R., Rhoades, L., & Cameron, J. (1999). Does pay for performance increase or decrease perceived self-
determination and intrinsic motivation? Journal of Personality and Social Psychology. 77, 1026-1040; Jordan, P. C. (1986).
Effects of an extrinsic reward on intrinsic motivation: A field experiment. Academy of Management Journal. 29, 405-412.

13. Pay is a major determinant of how
hard someone will work. -False
Pay is just one of many reasons
people work and there is little
correlation between how much a
person is paid and their motivation
on a day-to-day basis.
Source: Weinberg, R., & Nord, W. (1982). Coping with “it’s all common sense.” Exchange: The Organizational Behavior
Teaching Journal, 7, 29-33.

14. If a person fails the first time, they
try harder the next time. -False
Research shows that individuals who
fail are more likely to avoid trying to
do that particular task again in the
future.
Source: Weinberg, R., & Nord, W. (1982). Coping with “it’s all common sense.” Exchange: The Organizational Behavior
Teaching Journal, 7, 29-33.

15. People perform better if goals are
easier. -False
Research shows that goal difficulty is
positively related to task
performance.
Source: Mento, A. J., Steel, R. P., & Karren, R. J. (1987). A meta-analytic study of the effects of goal setting on task
performance: Organizational Behavior and Human Decision Processes. 39, 52-83.

16. Most people within organizations
make effective decisions.
-False
Research on decision making shows
that about half of all decisions made
within organizations fail.
Sources: Nutt, P.C. (2002). Why decisions fail. San Francisco: Berrett-Koehler; Nutt, P.C. (1999). Surprising but true: Half
the decisions in organizations fail. Academy of Management Executive, 13, 75-90.

17. Positive people are more likely to
withdraw from their jobs when
they are dissatisfied. -True
Research shows that positive people
(those who are in a positive mood
more often than others) are actually
more likely to be absent from their
jobs and intend to leave their jobs
when they are dissatisfied at work.
Sources: Duffy, M. K., Ganster, D. C., & Shaw, J. D. (1998). Positive affectivity and negative outcomes: The role of tenure and
job satisfaction. Journal of Applied Psychology, 83, 950-959; Shaw, J. D.., Duffy, M. K., Abdulla, M. H. A.., & Singh, R.
(2000). The moderating role of positive affectivity: Empirical evidence from bank employees in the United Arab Emirates.
Journal of Management, 26, p139-154

18. Teams with one smart person
outperform teams where everyone
is average in intelligence.
-False
Teams in which all members are of
average intelligence tend to
outperform teams with a single
expert.

19. Visual Auditory
Learning
Styles
Kinesthetic Combination

20. Your Learning Style
Visual Auditory Kinesthetic
• Pictures • Study • Schedule
• Charts and groups breaks
Graphs • Listen to • Take good
• Take careful recorded notes – even
notes lectures when
• Write down “getting it”
oral • Avoid long,
instructions once-a-week
classes

21. Surveys
Instructions: We would like to gather your
•One of the opinions about different aspects of work.
primary methods Please answer the following three questions
using the scale below:
for collecting Response scale: 1=Strongly disagree
information for OB 2=Disagree
3=Neither agree nor disagree
research 4=Agree
5=Strongly agree
•Basic question
and answer Setting goals at work helps me to
focus…………….. 1 2 3 4 5
•Can be open- or Goal setting is effective in improving
performance…….. 1 2 3 4 5
close-ended I get more done when I use goal
setting…………… 1 2 3 4 5

22. Field Studies
•Often involve
experimental
design
•A particular
population will be
divided into a
treatment group © 2010 Jupiterimages Corporation
and a control
group

23. Laboratory Studies
•Consist of manipulation group(s)
and control group(s)
•Can often help determine causal
rather than simple correlational
relationships
•Controlled conditions - high degree
of internal validity but potentially low
generalizability

24. Case Studies
•In depth description of a single
company or industry
•Involve a great deal of detail about
the topic being studied, but difficult to
generalize to other areas

25. Meta-analysis
•Technique used to summarize what
other researchers have found on a
given topic
•Variables from several studies are
weighted and analyzed to determine
if the effect holds or not

26. Outsourcing
Aging
Ethics
Workforce
Challenges &
Triple
Opportunities Lack of
Bottom Employee
Line Engagement
Flattening
Technology
World

27. Ethical Challenges
Recent corporate scandals (Enron
Corp., AIG, Tyco International,
WorldCom, Halliburton,
Citigroup) have ranged from
irresponsible to outright illegal
behavior.

28. Lack of Employee Engagement
Harris Interactive survey of
Gallup estimates that if 8,000 American workers
100% of an organization’s indicated:
employees were fully • Only 20% felt passionate
engaged: about their job
• Customers would be 70% • Less than 15% feel
more loyal strongly energized by their
• Turnover would drop by work
70% • Only 31% believe their
• Profits would jump by 40% employer inspires the best
in them

29. The Impact of Technology
Moore’s Law
dictates that the
Such change is
overall
motivating
complexity of
corporations to
computers will
change their
double every
technology
18 months with
rapidly
no increase in
cost
http://upload.wikimedia.org/wikipedia/commons/c/c5/PPTMooresLawai.jpg

30. Flattening World
The concept of a “flattening world” refers to the
increase in access to information. This increase
has led to an increase in innovation, as
knowledge can be shared across time zones and
cultures. Your book in this course is an example
of this concept.

31. The Triple Bottom Line
Economic Social Environmental
• Revenue • Humanitarian • Reuse/Recycle
• Accounting • Responsibility • Sustainability
Profit • Accountability • Going Green
• Supply and
Demand

32. Corporate Social Responsibility
Organizations can
consider the interests of
society and take
responsibility for the
impact of their activities
on customers, suppliers,
employees, shareholders,
communities, and the
environment in all aspects
of their operations. END
Used with permission of Environmentally Neutral Design (END)
is an organization that
does this.

33. Criticism of CSR
Detracts from the fundamental
economic role of business
Just superficial window-dressing
Pre-empts the role of governments
as the watchdog over powerful
multinational corporations

34. Aging Workforce and the
Millennial Generation
In the very
near future,
older workers
will constitute
a substantial
portion of the
workforce.

35. The Global Marketplace for
Staffing: Outsourcing
A shamrock Outsourcing
organization Vendors
includes an equal
Contingent
number of regular Professional
Workforce
Core
employees,
temporary
employees, and
consultants and
contractors.

36. Discussion
1. Please think about the best and worst jobs you
have ever had. If you have never had a job, think
of a school project instead.
2. Share this experience with your group.
3. Identify three themes that recur in your discussion.
For example, what are the most common features
of the best jobs? What are the most common
features of the worst jobs?
4. Be prepared to share your themes with the class.

37. Chapter 2 Managing Demographic and
Cultural Diversity
Learning Objectives
 Understand what constitutes diversity
 Explain the benefits of managing
diversity
 Describe challenges of managing a
workforce with diverse demographics
 Describe the challenges of managing
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a multicultural workforce
 Understand diversity and ethics
 Understand cross-cultural issues
regarding diversity 37

38. What is diversity?
Diversity is the
way in which
people are
similar or
different from
each other. © 2010 Jupiterimages Corporation

39. Benefits of Diversity
Higher creativity in decision making
Better understanding & service of customers
More satisfied workforce
Higher stock prices
Lower litigation expense
Higher company performance

40. Challenges of Diversity
The similarity-attraction
phenomenon is the
tendency to be more
attracted to individuals
who are similar to us.

41. Challenges of Diversity
Deep level diversity
•Values
•Attitudes
•Beliefs
Surface level diversity
•Gender
•Race
•Age
•Physical Abilities

42. Challenges of Diversity
A faultline is an Asian Female Caucasian Male
attribute along Asian Female Caucasian Male
which a group is
Asian Female Caucasian Male
split into
subgroups.
Asian Male Caucasian Female
Asian Female Caucasian Male
Asian Female Caucasian Male

43. Diversity Shuffle

44. Challenges of Diversity
Men Women
Stereotypes are
Assertive Relationship
generalizations oriented
about a
particular group Active Passive
of people.

45. Specific Diversity Issues
Sexual Gender Diversity
Orientation • Earnings Gap Race Diversity
Diversity • Glass Ceiling
Employees with Religious
Age Diversity
Disabilities Diversity

46. Managing Cultural Diversity
Diversity
Training
Make Programs
Review
managers
Recruitment
accountable
Practices
for diversity
Build a
Affirmative
culture of Diverse
Organization Action
respecting
Programs
diversity

47. Cultural Diversity
Culture refers to
values, beliefs,
and customs
that exist in a
society.
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48. Individualism-Collectivism
Individualism Collectivism
Cultures in which people define Cultures where people have
themselves as individuals and stronger bonds to their groups and
form looser ties with their groups. group membership forms their
self identity.
USA Guatemala
Australia Ecuador
UK Indonesia
Canada Pakistan
Hungary China

49. Power Distance
Low Power Distance High Power Distance
A society that views an unequal A society that views an unequal
distribution of power as distribution of power as
relatively unacceptable. relatively acceptable.
Austria Malaysia
Denmark Slovakia
Israel Philippines
Ireland Russia
New Zealand Mexico

50. Uncertainty Avoidance
Low Uncertainty Avoidance High Uncertainty Avoidance
Cultures where individuals are Cultures where individuals prefer
comfortable in unpredictable predictable situations and have a
situations and have a high low tolerance for ambiguity.
tolerance for ambiguity.
Denmark Belgium
Jamaica El Salvador
Singapore Greece
China Guatemala
Sweden Portugal

51. Masculinity-Femininity
Masculinity Femininity
Cultures where individuals Cultures where individuals
value achievement, value maintaining good
competitiveness, as well as relationships, quality of life, and
acquisition of money and other caring for the weak.
material objects.
Slovakia Norway
Japan Netherlands
Hungary Sweden
Austria Costa Rica
Venezuela Chile

52. Build Cultural Intelligence
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Cultural intelligence is the capability to
understand how a person’s cultural
background influences behavior.

53. Avoid Ethnocentrism
Ethnocentrism is
the belief that
one’s own culture
is superior to
other cultures.

54. Listen to Locals
Convergys, a Cincinnati-based call
center company was building a
cafeteria for its employees in India.
During the planning phase, a VP from
India pointed out that Indian food is
served hot, and building a cafeteria to
serve only sandwiches would create
dissatisfied employees in India.

55. Culture Changes
It is important to recognize that
culture changes. Showing
sensitivity to the Indian caste
system may be outdated advice
for anyone doing business in
India today.

56. Do Not Always Assume Culture Is
the Problem
When marketing people from
the United States interact with
engineers in other countries,
misunderstanding can occur due
to the difference in viewpoint
between marketing and
engineering employees rather
than different cultural
backgrounds.

57. Chapter 3 Individual Differences and
Perception
Learning Objectives
 Define personality and how it
affects work behaviors
 Understand the role of values in
determining work behaviors
 Explain the process of perception
and how it affects work behaviors
 Understand how individual
differences affect ethics
 Understand cross-cultural
© 2010 Jupiterimages Corporation
influences on individual differences
and perception

58. Fit
Person-
Organization Person-Job fit
Fit
The degree to The degree to
which a person’s which a person’s
values, skill, knowledge,
personality, abilities, and
goals, and other other
characteristics characteristics
match those of match the job
the organization. demands.

59. Values
Values refer to
stable life goals
that people have,
reflecting what is
most important to
them.
© 2010 Jupiterimages Corporation

60. Values
Terminal Instrumental
Values Values
A world of beauty Broad minded
An exciting life Clean
Family security Forgiving
Inner harmony Imaginative
Self respect Obedient

61. Personality
Personality encompasses
the relatively stable
feelings, thoughts, and
behavioral patterns a
person has.

62. Big Five Personality Traits
Trait Description
Openness Curious, original, intellectual, creative,
and open to new ideas.
Conscientiousness Organized, systematic,and dependable.
achievement-oriented,
punctual,
Extraversion Outgoing, talkative, sociable, and enjoys
being in social situations.
Agreeableness Nice, tolerant, sensitive, trusting, kind,
and warm.
Neuroticism Anxious, irritable, aggressive,
temperamental, and moody.

63. Myers-Briggs Type Indicator
Dimension Explanation
EI Extraversion: Those who Introversion: Those who derive
derive their energy from other their energy from inside.
people and objects.
SN Sensing: Those who rely on Intuition: Those who rely on their
their five senses to perceive intuition and hunches to perceive
the external environment. the external environment.
TF Thinking: Those who use their Feeling: Those who use their
logic to arrive at solutions. values and ideas about what is
right and wrong to arrive at
solutions.
JP Judgment: Those who are Perception: Those who are
organized, systematic, and curious, open minded, and prefer
would like to have clarity and to have some ambiguity.
closure.

64. Other Personality Traits
Locus of
Affectivity
Control
Self- Self-
Efficacy Monitoring
Self- Proactive
Esteem Personality

65. Personality Testing in Employee
Selection
Companies such
as Kronos and
Hogan
Assessments
conduct pre-
employment
personality tests.
Source: http://en.wikipedia.org/wiki/Image:Kronos-incorporated.jpg

66. Perception
Perception is
how individuals
detect and
interpret
environmental
stimuli.
© 2010 Jupiterimages Corporation

67. Visual Perception
Our visual
perception goes
beyond the
information
physically available.
In this figure, we
see the white
triangle in the
middle even though
it is not really there.

68. Visual Perception
Which circle is bigger?

69. Self Perception
Self- Self- False
enhancement effacement consensus
bias bias error

70. Social Perception
Values, Our perceptions of
Information
emotions, the environment
from the
feelings, and are influenced by
environment
personality our values,
emotions, feelings,
and personalities,
which in turn
influence our
actions.
Actions Perceptions

71. Social Perception
Self-fulfilling Selective
Stereotypes
prophecy perception

72. Social Perception
First impressions are
initial thoughts and
perceptions we form
about people, which
tend to be stable and
resilient to contrary
information.
© 2010 Jupiterimages Corporation

73. Attributions
Consensus Distinctiveness Consistency Attribution
High High Low consistency External
consensus distinctiveness This person
Everyone else This person does usually does not
behaves the not usually behave behave this way in
same way. this way in different this situation.
situations.
Low Low High consistency Internal
consensus distinctiveness Every time this
No one else This person usually person is in this
behaves the behaves this way in situation, he/she
same way. different situations. acts the same way.

74. Individual Differences and Ethics
Culture
Personal
Values
Personality
Ethics

75. Personality Around the Globe –
Self-Reported Self-Esteem
Highest Lowest
1. Serbia 1. South Korea
2. Chile 2. Switzerland
3. Israel 3. Morocco
4. Peru 4. Slovakia
5. Estonia 5. Fiji
6. USA 6. Taiwan
7. Turkey 7. Czech Republic
8. Mexico 8. Bangladesh
9. Croatia 9. Hong Kong
10. Austria 10. Japan
Source: Adapted from information in Denissen, J.J.A., Penke, L., & Schmitt, D.P. (July 2008). Self-Esteem reactions to social interactions: Evidence for sociometer mechanisms across
days, people, and nations. Journal of Personality & Social Psychology, 95, 181-196; Hitti, M. (2005). Who’s No. 1 in Self-esteem? Serbia is tops, Japan ranks lowest, U.S. is No. 6 in
global survey. WebMD, http://www.webmd.com/skin-beauty/news/20050927/whos-number-1-in-self-esteem; Schmitt, D.P., & Allik, J. (2005). The simultaneous administration of the
Rosenberg self-esteem scale in 53 nationals: Culture-specific features of global self-esteem. Journal of Personality and Social Psychology, 89, 623-642.