.•• ..•.....:-::?. ( Foreword xi Preface xiii Setting the Global Stage: Introduction to the Workbook xv Class Activity: Mapping the Multicultural Classroom xxv Learning Points xxvi < ; The Psychological Contract and Commitment Objectives 2 Vignette: Creating a Great Place to Work 2 Class Preparation 5 The Knowledge Base 7 Class Activity: Instructor/Participant Interviews Learning Points 19 Developing OB Expertise 20 Action Scripts 20 Personal Application Assignment 23 ( .ii ii pr i' r ;' Theories of Managing People 16 28 Objectives 28 Vignette: The Jack and Herb Show 28 Class Preparation 31 The Knowledge Base 34 Class Activity: Manager of the Year Acceptance Speech Learning Points 42 Action Scripts 43 Personal Application Assignment 45 ( . i < r rcr / 2 41 Individual and Organizational Learning 48 Objectives 48 Vignette: Why Dumb Things Happen to Smart Companies 48 Class Preparation 51 The Knowledge Base 56 Class Activity: The Learning Style Inventory 66 Creating a Diverse Learning Community 67 Learning Points 68 Action Scripts 69 Personal Application Assignment 70 ~. ·: :: . ==~, ~ ~r·tcr ··/: Decoding Human Behavior and Personality Objectives 74 Vignette: Buzzsaws and Whistleblowers 74 74 v v1 CONTENTS Class Preparation 75 The Knowledge Base 79 Class Activity: The Donor Services Case: What To Do About Juana? Learning Points 89 Action Scripts 90 Personal Application Assignment 91 , ti Individual and Organizational Motivation { ( {' 95 Objectives 95 Vignette: A Winning Recipe 95 How to Change Your Boss 97 Class Preparation 100 The Knowledge Base IO I Class Activity: Diagnosing Motivation in the Donor Services Department The Motivated Classroom 115 Learning Points 116 Action Scripts 117 Personal Application Assignment 119 ' ,lt~ t c; · () Values and Workplace Ethics ( 86 114 123 Objectives 123 Vignette: Ray Anderson and The Natural Step 123 Class Preparation 125 The Knowledge Base 133 Class Activity: Weyco's Ban on Employee Smoking Ethics in Everyday Worklife 145 Learning Points 146 Action Scripts 147 Personal Application Assignment 149 144 Personal Growth and Work Stress 154 Objectives 154 Vignette: Overload-What's Causing It and How to Solve It 154 Class Preparation 157 The Knowledge Base 163 Class Activity: The Life Line, Who Am I?, and the Past Experience Inventory Learning Points 179 Action Scripts 180 Personal Application Assignment 181 ;:··. ., .. :: .. i } \ . .~ ) .- ·.,,, ,.. { t<'r , : -~ Interpersonal Communication 188 Objectives 188 Vignette: Communication Mistakes Only Really Smart People Make Class Preparation 191 The Knowledge Base l 94 Class Activity: Active Listening Exercise 206 Learning Points 211 Action Scripts 212 Personal Application Assignment 214 188 175 CONTENTS (,- r~: . ·~ r: ;. ,;. ' .: .-... f _) Perception and Attribution 218 Objectives 218 Vignette : The Blind Men and the Elephant 218 Class Preparation 219 The Knowledge Base 220 Class Activity : The Selection Committee 231 Learning Points 242 Action Scripts 243 Personal Application Assignment 244 Group Dynamics and Work Teams Objectives 247 Vignette: Creating Hot Teams 247 Class Preparation 251 The Knowledge Base 252 Class Activity: The Inner-Outer Exercise Learning Points 275 Action Scripts 276 Personal Application Assignment 278 Problem Solving ( 247 268 282 Objectives 282 Vignette: Why Not? 282 Class Preparation 285 The Knowledge Base 287 Class Activity : Cardiotronics Role-Play Learning Points 307 Action Scripts 307 Personal Application Assignment 309 Managing Creativity 297 312 Objectives 312 Vignette: Bears and Honey Pots 3 12 Managing Creativity at SAS 313 Class Preparation 315 The Knowledge Base 319 Class Activity: Creativity Skits 327 Learning Points 327 Action Scripts 328 Personal Application Assignment 329 r1:.{\ l r: ..._;- :·{~T' ,_,.,. Conflict and Negotiation 337 Objectives 337 Vignette: Costa Rica's Alternative to Labor Contlict-Solidarismo 337 Class Preparation 338 The Knowledge Base 341 .Class Activity : The Red-Green Game 353 Negotiation Exercise-The Film-making Equipment 354 Learning Points 357 Action Scripts 358 Personal Application Assignment 360 vii vm CONTENTS Managing Diversity 363 Objectives 363 Vignette: What's Your Eccentricity Quotient? 363 Class Preparation 364 The Knowledge Base 366 Class Activity: Cross-Cultural/Diversity Competency Skits Cross-Cultural Training 379 Learning Points 382 Action Scripts 383 Personal Application Assignment 384 Leadership 379 390 Objectives 390 Vignette: What Makes an Effective Executive Class Preparation 395 The Knowledge Base 397 Class Activity: The Perfect Square 409 Learning Points 411 Action Scripts 412 Personal Application Assignment 414 Organizational Culture 390 421 Objectives 421 Vignette: The Fabric of Creativity 421 Class Preparation 424 The Knowledge Base 429 Class Activity: The Ecoquest Case 445 Assessing the Organizational Culture of Your Learning Group 447 Learning Points 448 Action Scripts 449 Personal Application Assignment 451 ; tf tcr / Decision Making 457 Objectives 457 Vignette: Pajama Talk 457 Jim Collins on Tough Calls 458 Class Preparation 463 The Knowledge Base 467 Class Activity: Team Analysis of Decision Cases Learning Points 482 Action Scripts 483 Personal Application Assignment 485 Power and Influence Objectives 489 Vignette: Getting Your Ideas Heard Class Preparation 490 The Knowledge Base 492 Class Activity: Influence Role Play Learning Points 5 I 6 489 502 489 481 CONTENTS ( Action Scripts 516 Personal Application Assignment 518 \ Empowerment and Coaching Objectives 521 Vignette: A Piece of Work 521 Class Preparation 524 The Knowledge Base 526 Class Activity : The Enterprise Merger Game Learning Points 545 Action Scripts 545 Personal Application Assignment 547 536 Performance Management Objectives 571 Vignette: Leader as Developer 571 Class Preparation 572 The Knowledge Base 573 Class Activity : Performance Appraisal Role Plays Learning Points 589 Action Scripts 590 Personal Application Assignment 592 -~···LI< ,.;" Organization Design 598 624 Objectives 624 Vignette: Making Change 624 Rate your Readiness to Change 630 Class Preparation 635 The Knowledge Base 636 Class Activity : The Hollow Square Exercise 653 Learning Points 656 Action Scripts 657 Personal Application Assignment 658 "--- 587 Objectives 598 Vignette: Permeability in Action-Case Study of a Boundary less Organization Class Preparation 60 I The Knowledge Base 603 Class Activity : Structure, Inc. 618 Learning Points 619 Action Scripts 620 Personal Application Assignment 621 Managing Change ( 571 r )' ( 521 598 tx ( UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK The goal of the first section is to help you become aware of your mental maps or models, as well as those of fellow participants in the course. Although the concept has existed since ancient times, the term mental models was coined in the 1940s by Kenneth Craik, a Scottish psychologist. This term refers to "the images, assumptions, and stories that we carry in our minds of ourselves, other people, institutions, and every aspect of the world. Like a pane of glass framing and subtly distorting our vision, mental models determine what we see and then how we act." * One way to understand our behavior is to make these usually tacit maps visible. In this section, you will have an opportunity to examine mental maps about psychological contracts, theories of management, learning styles, personality, motivation, ethics, and values. We hope you'll finish the section with more self-knowledge and a greater appreciation for the differences you find in other people. ; The Psychological Contract and Com1nitment Theories of Managing People Individual and Organizational Learning Decoding Human Behavior and Personality :;:;:; Individual and Organizational Motivation Ethics and Values T Personal Growth and Work Stress ''' P. Senge. A. Kleiner, R. Ross. and B. Smith. The Fi/iii Discipline Fieldbook: Suwegies and Toolsjiir Building 11 Leaming 01;~aniw1ion (New York: Currency. 1993): 235. 1 ( THE PSYCHOLOGICAL CONTRACT AND COMMITMENT A Define the psychological contract and discuss the obligations of the contract currently in place. B. Explain the importance of the psychological contract and what happens when it is violated . C. Explain the benefits of committed employees and what employers can do to foster commitment. D. Describe external influences that affect workplace expectations. E. Explain the self-fulfilling prophecy and how managers can apply this concept. F. Explain the pinch model. G. Make a psychological contract with your professor. LA.C:E I () Every year, Fortune magazine publishes a list of the I00 best companies to work for. IL is one of the magazine's most popular issues of the year. People love to read about companies where the grass may be greener. And managers find they can pick up Lips that they can apply to their organizations to make them better places to work. WORK ENVIRONMENT AND ITS IMPACT Everybody, whether a senior manager or frontline employee, would prefer to work in a good working environment. Since most people spend the majority of their waking hours al work, the quality of the work experience has a big impact on their lives. Everyone wants to look forward to going to work in the morning. And no one enjoys coming home from work feeling frustrated and discouraged from his or her experiences at work. 2 CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT ( ( But there is more than quality of life involved with this issue. The quality of the workplace impacts directly on issues of customer service and productivity. The connection to customer service has been shown in numerous studies. A famous 1998 study published in the Harvard Business Review article "The Employee-Customer-Profit Chain at Sears" showed that an increase in employee satisfaction at a store resulted in an increase in customer satisfaction, which in turn resulted in higher profitability for the store. There have been similar studies in the hospital industry, showing that improvements in workplace environments result in better patient satisfaction. The Great Place to Work Institute has seen extremely strong evidence of the same phenomenon from its work in surveying the best workplaces. A few months ago, Frank Russell Co., a firm that provides investment services for large pension funds among other clients, did two comparisons. The company took a hypothetical portfolio of stocks from the companies that were on the first Fortune l 00 Best Companies to Work For list in 1997 and compared the overall financial results through 2003 with a portfolio or stocks from the Standard & Poor's 500 (an established stock market index similar to the Dow Jones industrial average). The results were astonishing . Money invested in the "I 00 Best" portfolio would have returned almost three times more than the same amount a portfolio in the S&P 500 during the past six years. The results were even more remarkable if, instead of holding onto the stocks of the 100 best companies, an investor had changed the portfolio to reflect the changes in the list annually. (Every year, a new list of the 100 Best is published based on our annual survey. Typically, about 20 companies are replaced.) If investors updated their portfolio with each year' s 100 Best list, they would have seen the original investment outperform a comparable S&P 500 portfolio by more than a factor of five. As shown, the best workplaces tend to have higher productivity and profitability as well as better customer satisfaction. Among the obvious reasons for this result is that the best workplaces typically have much lower staff turnover than their competitors. (In a study we conducted in 200 l that was published in Fortune, the I00 Best companies had an average staff turnover that was 50 percent lower than their competitors.) High staff turnover is very costly to any enterprise, whether a for-profit corporation, a nonprofit organization, or a governmental agency, because of the increased costs associated with recruiting and training new staff. Similarly, organizations with reputations as good employers also tend to attract high quality staff. The better the quality of the staff, the better able the staff will be in performing their duties . A less tangible-though equally important-reason organizations with great workplaces deliver better service and products is employee morale. Better morale translates into environments where employees are more likely to provide better service. CREATING A "GREAT PLACE TO WORK" Before moving on to the subject of how a great workplace is created, the criteria should be defined. I define a great place to work as one where employees trust the people they work for, have pride in what they do and enjoy the people they work with. This definition is based on the hundreds of interviews I conducted in the 1980s for the first edition of my book, The JOO Best Co111pa11ies to Work for in America (co-authored with Milton Moskowitz). From those interviews, I observed that employees insisted that the most important factor that distinguished their workplaces was a very high level of trust between the employees and the management. What do employees at great workplaces mean by trust? There are two aspects of trust. The first is credibility-what employees think about the management's believability, competence, and integrity. It all begins with whether they can believe what someone tells them. If management's word cannot be taken to be true, trust is impossible. At great workplaces, management goes out of its way to be believable by doing the following: l Sharing information broadly. The Container Store, a Dallas-based retailer that was No. I on the Fortune 100 Best list in 2000 and 2001, makes it a point to share information about such matters as daily sales results from each store with all of the employees. 3 4 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Accessibility to employees. The Great Place to Work Institute has found that even at large companies such as Continental Airlines or Procter and Gamble, the top executives go to great lengths to meet with ordinary employees whenever possible. In smaller companies, this is often done in more informal ways such as having lunch in the employee cafeteria. At East Alabama Medical Center, a county-run facility, the CEO makes it a point to visit every ward of the hospital every day. Frequently these companies have an open door policy. The point is that top managers make sure that people within the organization see them as fellow human beings rather than figures living in an ivory tower. To be able to trust, employees need to feel some sense of what kind of people are in management-whether they are trustworthy. That cannot be done unless employees have been able to size management up for themselves. Willingness to answer hard questions. It is not enough to share information and be personally accessible. Leaders of the best workplaces also realize that they need to face difficult questions from their employees. Thus, the Great Place to Work Institute has seen a myriad of mechanisms to ensure that employees have regular opportunities to get straight answers to difficult questions . In the past few years, informal breakfasts of randomly selected employees with the CEO have become common . At J.M . Smucker, the jelly and jam maker that was No . I on the 2004 Fortune 100 Best list, the CEO and president conduct quarterly town hall meetings at each of their sites throughout the country where they answer any question that is asked of them . If they cannot provide an answer immediately, they make certain that each of the questions is answered through a company newsletter later. The key point is that ma nagement makes itself available for genuine dialogue with employees. Instead of concentrating on one-way, top-down communication, the emphasis on two-way communication is what distinguishes the best employers. Delivering on promises. Closely related to the question of believability is that of integrity. People do not believe someone, no matter how good that person's communications skills are, unless he or she follows through on what has been said will be done. Several years ago, the Great Place to Work Institute was asked to do a workplace assessment of a large division of a major telecommunications company. A very charismatic leader who was an excellent communicator ran the division . He shared information with everyone, was accessible, and held regular question-andanswer conferences with staff. But the institute discovered that the staff did not trust him because he was too nice. When people would come into his office, he would invariably make commitments or implied promises. The employee would leave the office and feel good about the situation and about the executive, in the short run. But the problem was that sometimes he delivered on his promises and sometimes he did not. As a result, people did not know whether his word was any good . They liked him but did not trust him . The Great Place to Work Institute recommended that he follow a simple discipline: After every meeting, make a list of every promise that he had made . In a matter of weeks, his list became shorter and shorter and the level of trust within the division began to grow. The second major aspect of trust relates to what employees think management thinks about them . While the first aspect of trust revolves around how employees perceive the management's credibility, it is equally important that employees feel that the management shows them respect. In other words , employees can feel that management has a high degree of credibility, is believable, and demonstrates competence and integrity. But they must also feel that management has their best interests at heart to genuinely extend their trust. Thi s is done in two main ways: Showing recognition and appreciation. The institute has found that the best employers make a special effort to say "thank you" in a variety of ways to employees. It becomes part of the fabric of daily existence in these companies. L.L. Bean, a mail-order catalogue retailer, has developed a particularly good method of singling out those who deserve special recognition. A committee of employees selects some five workers a year from dozens of employee nominations for an award called Bean's Best. The committee then organizes special celebrations complete with celebratory horns and champagne at the winners' own work sites. ( CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT Demonstrating personal concern. Respect is also a very personal matter. To select companies ( for the Great Place to Work Institute ' s lists , staff distribute to several hundred randomly selected employees at each firm an employee survey called the Great Place to Work Trust Index. Based on a correlation study of the results of the trust index , the institute found the following statement lo be the most significant: "Management shows a sincere interest in me as a person, not just an employee." In particular, people are especially concerned with how they will be treated when faced with a personal event of significance-an illness, a death in the family, births, and so on. The best employers find ways lo show genuine concern in those circumstances. Becoming a great workplace may not be rocket science, but it does require paying attention to the basic issue of trust in the relationship between management and employees. Trust is a delicate commodity that must be earned daily. But when it is present, both management and employees benefit. Source: Reprinted with permission from Roben Levering. "Creating a Great Place to Work: Why It ls lmponant and How It ls Done." (August 2004). San Francisco: Great Place to Work® Institute. Inc. www.greatplacetowork.com. A. Read "Creating a Great Place to Work ." B. Answer the following questions . 1. Have you ever had a job experience that did not work out as you thought it would'! 2. What expectations of yours were not met? 3. Were there any expectations on the part of your boss that were not met? 4. What trends have you observed that are organizational changing the workplace? C. Answer and score the organizational ·commitment questionnaire. D. As you read the chapter, make a list of cues and patterns that will help you diagnose the psychological contracts in an organization and understand when they are being violated. 5 6 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Organizational Commitment Questionnaire (OCQ) Think about your organization as you respond to the following statements . If you are not working, choose the organization that is most relevant to you . Circle the number between 1 and 7 on the scale below that most accurately describes your opinion. I-strongly disag ree 5-slightly agree 2-moderately disagree 6-moderately agree 4-neither disagree nor agree 3-slightly disagree 7-strongly agree I am willing to put in a great deal of effort beyond that normally expected in order to help this organization be successful. 1234567 2 I talk up this organization to my friends as a great organization to work for. 1234567 1234567 3 I feel very little loyalty to this organization . 4 I would accept almost any type of job assignment in order to keep working for this organization. 6 I am proud to tell others that I am part of this organization . 1234567 1234567 1234567 7 I could just as well be working for a different organization as long as the type of work was similar. 1234567 8 This organization really inspires the very best in me in the way of job performance . 1234567 9 It would take very little change in my present circumstances to cause me to leave this organization. 1234567 5 I find that my values and the organization's values are very similar. 10 11 12 13 14 15 I am extremely glad that I chose this organization to work for over others I was considering at the time I joined . 1234567 There's not too much to be gained by sticking with this organization indefinitely. 1234567 Often, I find ii difficult to agree with this organization's policies on important matters relating to this organization. I really care about the fate of this organization. For me this is the best of all possible organizations for which to work . Deciding to work for this organization was a definite mistake on my part. 1234567 1234567 1234567 1234567 Scoring the survey: A) Add up the scores you circled for items #1 #5 # 10 (#1, 2, 4, 5, 6, 8, 10, 13, & 14). #2 #6 # 13 #4 #8 # 14 Subtotal A = B) For items #3, 7, 9, 11, 12, & 15 ONLY, subtract the number that you circled from 8, in order to obtain your score. For example: If you circled 5, your score would be 3 (8 - 5 = 3) . Using your newly obtained scores, add up these six items. 8-#3 8-#9 8 -#12 8-#7 8-#11 8-#15 Subtotal B = C) Add Subtotal A (above) with Subtotal B (above) to obtain a composite score and divide by 15 to get your average score A _ _ + B_ _ = Composite Score 7 15 = Average Score. ( CHAPTER l ( \ THE PSYCHOLOGICAL CONTRACT AND COMMITMENT Interpreting your score: The average scores on this instrument can range from 1 (very low commilent) lo 7 (very high commilenl) . Compare your score lo the averages shown below for different types of employees in a 2563-person validation study lo discover how your commitment level relates. TYPES OF EMPLOYEES AVERAGE SCORE Scientist and Engineers 4.4 Public Employees 4.5 Classified University Employees 4.6 Telephone Company Employees 4.7 Hospital Employees 5.1 Bank Employees 5.2 Auto Company Managers 5.3 Retail Management Trainees 6.1 Source: R. T. Mowday and R. M. Steers. "The Measurement of Organi zational Commitment." Journal <fl1<1Culio11al Beilm·irJ1: 14 ( 1979): 224--247. ( l As we saw in the opening vignette, if you had invested in the 100 Best Companies to Work for in America, rather than their competitors not on this list, you would have had an equal or sometimes substantially higher return on your investment. 1 A positive relationship with employees is a competitive advantage. The issue of trust is a crucial factor in the employee-employer relationship. The credibility and integrity this requires relates Lo the psychological contract they develop. When individuals join an organization, they form an unwritten, implicit or (less frequently) explicit, psychological contract with the organization. Psychological contracts are defined as an individual's beliefs, shaped by the 0Jga11izatio11, regarding the terms and conditions of a reciprocal exchange agreement between individuals and their organization. 2 They refer to the mutual expectations employees and employers have of each other. Such contracts help predict both the type of outputs employers will get from employees as well as the rewards employees will receive for their efforts from the organization. The psychological contract is based on people's perception that they have been promised a future return for their contributions, creating an obligation to reciprocate. This concept is rooted in social exchange theory, which wg11es that people enter into relationships in which not only economic but al.so social obligations play a role and that people are most co111fortable when the exchange is ba/anced. 3 Psychological contracts differ from employment contracts because they focus on a dynamic relationship that defines the employees' psychological involvement with their employer. The actions of both parties mutually influence the psychological contract. For example, high company expectations about what employees should contribute to the company can produce increased individual performance; when individuals perform at a high level, they come to expect more than just a paycheck. They may also expect respectful treatment, challenging jobs, training that will help them develop and grow, and a share in the financial profits their increased performance levels have made possible. Psychological contracts also differ from employment contracts because they reflect each party's perception of the expectations involved, which means their interpretations may not be similar. In fact, employees are generally more likely than supervisors 7 8 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK to perceive that employers have not lived up to their part of the psychological contract, particularly with regard to pay, advancement, and good employer-employee relationships .4 Eve n though such expectations may never formally be stated, they do exist, and they have a tangible impact on the relationship between employee and employer. For example, employees who perceived that both they and their employer had mutual high obligations to each other (rather than mutual low obligations or unbalanced obligations) reported more organizational commitment and support, more positive beliefs about the future of their career, and less intention to leave the firm. 5 However, if a new employee is given the impression that hard work will be rewarded with a promotion and raise in the near future and neither are forthcoming, the psychological contract is broken because the organization has failed to meet the employee's expectations about both advancement and credibility. On the other hand, if an organization agrees to pay the cost of an employee 's MBA program, the boss may expect the employee to work harder or be more loyal because the company is contributing more to him or her than to other employees. Broken psychological contracts occur when someone fails to fill an obligation, either by reneging on a promise or due to incongruence in how the employee and employer interpret the contract. Contract breaches change their relationship 6 and also affect employee attitudes and behavior. The trust and good faith of the employer-employee relationship is destroyed and cannot easily be rebuilt. Violations cause less damage to the relationship if employees believe that employers were unable, rather than simply unwilling, to keep a promise. When a psychological contract is broken, intense emotional reactions such as moral outrage, shock, indignation , betrayal, resentment, and anger result. The disillusionment over broke n psychological contracts can lead to decreased employee job satisfaction, performance, commitment, attendance, discretionary effort, and desire to continue with the organization, and increased organizational cynicism.7 A company staffed by employees who feel cheated or betrayed cannot expect to be a high-performance company. More than half the employees in one study reported violations of their psychological contract in their first job upon graduating from college. 8 Such discrepancies between expectations and reality are, therefore, fairly common. Job seekers can try to avoid disillusionment by gaining a more realistic idea about what to expect from organizations through internships and by asking more questions during the job interview process. When employees received realistic job previews during the hiring process, their retention rate was higher, which represents thousands of dollars in savings for employers.9 Realistic job previews ( RJPs) are a recruitment technique that gives accurate infonnation about job duties, and especially about the major sources ofjob satisfaction and dissatisfaction prior to orga11izatio11al ent1y. IO Therefore, they provide a more accurate view of the psychological contract. If you check out the student evaluations on record before registering for classes, this is a simple form of RJP. When Cisco recruits "passive" job seekers who aren ' t actively looking for a new job, they connect them with employees in similar jobs so they hear the inside scoop on what it's really like to work for Cisco in that job. This innovation partly explains Cisco's lower-than-average turnover rate. 11 Certainly both prospective employees and employers would be better off if their expectations were made explicit from the beginning. 12 But often we are not aware of our expectations until they have been disappointed. That's why mechanisms or forums that allow for continued discussions and renegotiations of the contract are so crucial throughout the term of employment. Effective managers understand that the psychological contract is important because it links the individual to the organization, reflects the trust that is a fundamental feature of the employment relationship, and motivates individuals to fulfill their obligations if they believe the other party will do the same. They ensure that the mutual expectations that comprise the contract are both understood and fulfilled so the employer-employee relationship is carefully maintained. THE CURRENT PSYCHOLOGICAL CONTRACT The tremendous rate of change that businesses undergo as they adapt to global competition and changing markets, technology, and economic conditions has resulted in marked changes in workplace expectations and psychological contracts. Corporate mergers, downsizing, restructuring, reengineering, outsourcing and subcontracting, and relatively low union representation have changed the picture of employment over the last 30 years. More and more jobs in Europe, North America, and some Asian countries have been transformed from full-time, ongoing work (for CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT ( core employees) to contingent, temporary employment (for peripheral employees). Originally, low-skilled manufacturing jobs were outsourced to countries that paid lower wages ; at present, higher-skilled jobs such as engineering and research and development work are also outsourced. Silicon Valley venture capitalists won't even look at new business plans that don't include outsourcing arrangements . The reality that many businesses view the entire world as their potential labor pool is a major change for workers all over the globe and increases competition for jobs. Massive terminations further drive home the message that psychological contracts have changed. After World War II, the terms of the prevailing psychological contract between Americans and their corporate employers were relatively simple. Employees were willing to work their way up the corporate ladder slowly in return for the promise of a sufficiently high promotion in their middle age to allow them to live comfortably during their retirement years. They had a fairly high degree of job security and internal career opportunities with little risk exposure. 13 This contract was always somewhat unbalanced because the company was expected to be loyal to employees, while the employees could resign whenever they wished. Lifelong job security is now viewed as an unaffordable luxury, even in Japanese business where it was previously common practice. The current employment contract has changed from long-term employment relationships and paternalism to employment based on business needs. Employees are rewarded for skills and performance (with higher pay in some cases), rather than tenure, and they are responsible for maintaining their own employability via personal reskilling and retraining. Since employers cannot offer long-term employment, they provide valuable employees with interesting and challenging work and training or risk losing them to their competitors. In return for high pay and stock options (which represent shared risk exposure), many employers expect long hours of hard work, flexibility, and commitment from highly skilled professionals, but they have less expectation of employee loyalty. For employees, there has been a simultaneous loss of job security accompanied by increasing demands for performance, flexibility, and innovation. This has led to greater job-related stress and the dawning realization that, whether they wanted to or not, many employees have become ·'free agents" who have to look out for their own interests. How do employees react to the broken psychological contracts that accompany corporate restructuring? Some employees modify their expectations and make whatever sacrifices are necessary to retain their jobs, while others give more importance to family and non work interests. Still others place more emphasis on developing their reputational capital (i.e. , building their resumes so they are more attractive to other companies) than on institution-building activities that would benefit their current employer. According to one study, only three Americans in ten are loyal to their employers. 14 The key question for managers and human resource professionals is "How do organizations promote commitment on the part of employees who no longer trust in job security?" EMPLOYEE COMMITMENT l Scholarly definitions of commitment include these mpects: emotional attachment to the organization; identification with the organization; involvement in the 01ganization; stmng belief in, and acceptance of. the organization's goals and values; a willingness to exert considerable effort on behalf of the 01ga11ization: and a strong desire to remain in the 01ganizatio11. 15 Committed employees yield several advantages for employers: higher performance and job satisfaction, greater ability to adapt to unforeseen circumstances, higher attendance, longer job tenure, and more organizational citizen behavior (OCB). 16 Organizational citizenship behavior refe1:1· to "discretionwy contributions that are 01ganizatio11ally related, but are neither explicitly required nor contractually rewarded by the 01ganization, yet nevertheless contribute to its effective functioning." 17 Commitment is more likely when employees are satisfied with their jobs; 18 when they perceive organizational justice in policies, procedures, and awards; 19 and when they are mentored.20 Recommended ways to earn employee commitment are clarifying and communicating the organization's mission, guaranteeing organizational justice, creating a sense of community, and supporting employee development. 21 A study of knowledge workers in high technology and financial services found that the greatest influence on the level of employee commitment and intention to stay with the company was meritocracy (rewards and promotions based on performance and merit), followed by fair treatment. 22 Knowledge employees have tacit knowledge and skills that they may not be motivated to share fully with the company unless the expectations of 9 10 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK their psychological contract are met. Stock option plans, which have been on the upswing in recent years, give employees an ownership stake in financial outcomes and may increase their identity with the firm . However, employee commitment has to do with more than money. A comparison of different types of employment relationships found that employees perform better, are more committed, and demonstrate more citizenship behavior when they have longterm relationships with employers, when they work in teams, and when employers invest in employee careers.23 Despite the current predilection for downsizing and using contingent workers, the research continues to find that lack of job security and lack of employer concern for employee development does not result in high performance. Another factor that influences both commitment and turnover is workplace incivility. Incivility is defined as low-intensity deviant behavior that violates workplace norms for mutual respect; it may or may not be intended to harm the target.24 Surveys indicate that incivility has been experienced by 20 to 75 percent of employees, which suggests that this is a serious problem that is on the rise. 25 Examples range from rudeness, sarcasm, public reprimands, to bluntly refusing demands for extra help from coworkers and supervisors. The cost of workplace incivility is not insignificant. It wastes the time of executives asked to deal with complaints and, for employees who are the targets of incivility, the results are decreased work effort, time spent at work, productivity, performance, motivation, creativity, and helping behaviors, and less OCB. One of eight subjects in one study quit his or her job due to incivility. 26 Confronting the instigators of incivility, who tend to be people in higher positions of power, is not always feasible; however, their targets may resort to indirect methods to get revenge-spreading rumors about them, withholding important information, and engaging in sabotage or even theft. If the organization fails to take action , its reputation may suffer when people tell family and friends stories of their poor treatment at work. Furthermore, when no action is taken to stop or punish incivility, employees report decreased job satisfaction and organizational loyalty and increased turnover. 27 When employees fail to receive civil, respectful treatment, which is a basic tenet of their psychological contract, their commitment to the organization may decrease. Commitment is fostered by teamwork that builds important social relationships at work, challenging jobs that develop employees and allow them to utilize their talents, and pride in their organization . Other answers to developing committed employees come from research on "healthy companies." The seven values found in such organizations are ( 1) commitment to self-knowledge and development (continuous learning), (2) firm belief in decency (fair treatment, equity), (3) respect for individual differences (celebration of diversity), (4) spirit of partnership (strong belief in community, shared effort, teamwork, widespread participation), (5) high priority for health and wellbeing, (6) appreciation for flexibility and resilience (change is managed well), and (7) a passion for products and process (concern for both what is produced and how that happens, balancing stakeholder interests-family support, community responsibility, and environmental protection). 28 Not all organizations believe in these dimensions or put them into practice, but they reflect the growing belief that the contribution of the workforce is the ultimate key to the success of any company. ( EXTERNAL INFLUENCES AND CHANGING EXPECTATIONS In addition to the changing business conditions mentioned previously, other factors affect the psychological contract and commitment. Labor market conditions and the employment rate influence both employer and employee behavior. At the turn of the century, one of managers' top concerns was employee retention , which was manifested by "employee friendly" policies to help them compete in attracting and keeping good talent. Some companies moved beyond salary and traditional benefits (e .g. , health insurance and pensions) to offer career-advancement and work-family programs. After the dot.com bust and 9/11 , jobs became more scarce, creating a "buyers' market" for employers. In 2006, some firms argue that even traditional benefits like pensions and health care prevent them from competing effectively. Business ups and downs and the changes in the job market can influence how much money and attention firms spend on \. CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT ( l employees and, therefore, impact the psychological contract. In addition, when the demand for labor is weak, some employees are simply grateful to have a job, and they put up with treatment they would not accept if more alternatives were available. Therefore, turnover rates do not always tell the same tale about employee commitment. A Conference Board survey of 5,000 U.S. workers in 2004 found that 50 percent were satisfied with their jobs, compared with 59 percent in 1995; 14 percent were very satisfied, down from 18.4 percent in 1995. The biggest decline occurred among workers earning $25,000 to $35,000 and among workers aged 35 to 44. Dissatisfaction is attributed to rapid technological changes, employer pressure for greater productivity, and shifting worker expectations. While satisfied with their coworker relationships, only one in three was satisfied with his or her pay, and there were substantial complaints about bonus plans, promotion policies, health plans, and pension benefits. 29 Another example of changing expectations concerns the way we do business and with whom we work. The ever-increasing demands for high performance, quality, customer service, and innovation resulted in different organizational forms-from telecommuting to virtual global teams who have never met in person to organizational alliances between historically fierce competitors. More pieces of firms are being moved around both globally and domestically to save costs. Learning to work in foreign countries where outsourcing takes place or where new markets have opened is always a challenging learning curve. Domestically the proliferation of small and midsized firms, spearheaded by pioneer-like entrepreneurs beginning in the 1990s continues to produce innovations and provide jobs in settings that bear little resemblance to traditional corporations.30 In many countries, the percentage of retired to active workers raises concerns about the availability of workers, social security, and immigration. By 2010, one-third of the U.S . workforce will be over 50 years of age. Some observers forecast a labor shortage and the continuing presence of elder workers. Firms like Home Depot and Borders have already started to hire older workers to preserve a trained workforce and miITor the demographics of their customers. 31 However, the U.S. case could be iniluenced by unforeseen factors, so it is too soon to predict the impact of the upcoming Baby Boomer retirement. The nomadic nature and the changing complexion of the workforce will continue. According to one projection, the average high school or college graduate is expected to hold 13 different jobs in his or her career. 32 In a longitudinal study, the U.S. Bureau of Labor tracked people born between 1957 and l 964 for the first 20 years of their worklife . This group, which is categorized as young baby boomers, has held an average of I 0.2 jobs from ages l 8 to 38 and changed jobs more quickly in their late teens and early twenties. 33 Almost a third (3 l percent) of workers ages 25 and older have worked 10 years or more with their cuITent employer. 34 The composition of the U.S. workforce will consist of 47 percent women by the year 2012; white non-Hispanics will account for 65 percent, Hispanics 15 percent, African Americans 12 percent, and Asians 6 percent. 35 Different generations hold unique expectations about work. The Baby Boomers (born between 1946 and 1964) are often called the "me" generation. Known for their concern with self-fulfillment at work, they were the first generation to fight against hierarchical authority and demand a voice in decision making at work. Work is an important part of their lives, and some observers say they may be the last generation to show significant loyalty to corporate employers. For Generation X (born between 1965 and 1976), work holds less importance than for Baby Boomers, and their identity is less tied to work. Family and nonwork activities hold more importance, and many do not want their children to come home to an empty house as "latchkey kids," as some of them did. Gen Xers do not expect the government or corporations to ensure their economic secmity, so they have fewer expectations of prosperity and greater expectations about being contingent workers and changing careers. "Success for many Xers is survival, having a good time, and making their own decisions and having enough money to enjoy the mate1ial goodies. Social status is not important in this picture''. 36 It is early to make definitive conclusions about Generation Y's expectations about work. The sheer size of this generation (born between 1976 and 2001 ), which is even larger than the Baby Boom generation, indicates that they will have a significant impact on the workplace. According to reports, they are highly computer and Internet literate and prefer a fun environment with teams that provide them with a sense of belonging and flexible work hours . Some are seeking work that has more meaning, and they are more likely to be involved in community service and to be more 11 12 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK optimistic than Generation X. They are interested in determining the lifestyle that suits them and, secondly, work that supports their lifestyle. Their generation is the most diverse yet , and they tend to be tolerant of diversity; the traits they admire most are honesty and caring. 37 Finally, the last example of shifting expectations relates to changing value trends-in addition to differences in the values held by various generations, changing societal norms also affect our psychological contracts at work and home. For example, 50.7 percent of U.S . married couples have dual careers, and only 20.5 percent of families consist of a working husband and a stay-at-home wifo who cares for the children. Currently 5.2 percent of U.S. fathers are "stay-at-home dads." 38 The "traditional" family is no longer the norm, forcing us to rethink our expectations of what it means to be a good employee, spouse or partner, and parent and to adapt our psychological contracts accordingly. ( CULTURAL DIFFERENCES Working with people from other cultures forces the reali zation that psychological contracts have a cultural flavor to them. According to Rousseau and Salk, "Promising new recruits that a job with the firm will help them be employable elsewhere might be attractive in a highly mobile society but might signal an employer's unreliability in a less mobile one." 39 Even the principal party in the contract varies by culture. In individualistic cultures, like the United States, employees perceive their psychological contract to be with the employer, and contracts are more likely to be idiosyncratic arrangements rather than similar deals for everyone. In Australia, the employee contract is with one's coworkers, while in France, it is with the state itself. 40 The boss 's role in the relationship with employees involves different expectations, such as the Latin American expectation that bosses will attend the family celebrations-baptisms, first communions, marriages, and funerals-of their employees. In multicultural settings it quickly becomes apparent that cultures have different views of psychological contracts, due to their values and ways of processing information. Cultural differences can also influence how employees react to violations, since they have learned different scripts for handling contlict,41 which are explained in Chapter 13. For example, people from cultures that find direct confrontation uncomfortable may be less likely to bring violations to the attention of their supervisor. People from cultures that value loyalty and identify strongly with their employer may be more likely to remain after a violation than individualistic people who calculate the pros and cons of staying with the organization and do what is best for themselves. Rousseau and Schalk identified three primary ways that psychological contracts vary internationally.42 First, promises mean different things in different cultures. In some cultures, intention to fulfill a promise may be just as good as actually doing what one promised. The role of uncertainty and fate is larger in some cultures, which can make promises less binding and less subject to one's control. In addition, some cultures have extensive networks of obligation, and their members may have to break promises to one party in order to fulfill a promise to another party. Second, the zone of negotiability refers to which employment conditions are under negotiation in different countries. This is determined by societal tolerance for unequal outcomes and societal regulation related to state intervention and centralized collective bargaining. For example, in some Latin American countries, the government decides all employees should receive an across-the-board bonus or raise-this makes individual negotiations between employers and employees less relevant. Third, group identity influences psychological contracts because the way that people define "we" and "they" has a critical influence on trust and promise making. People tend to trust their in-group members (we) more than out-group members (they), which can determine the types of promises that are made and fulfilled in the workplace. Trust itself takes different forms in different cultures. In some it is earned and based on experience, while in others trust is based on faith. Trust in authorities in an Islamic country is both a duty and a reflection of great respect for the people in those roles. In contrast, for the Dutch, blind faith in authority figures is the equivalent of abdicating responsible judgment. 43 A study of commitment in over 7,000 employees in seven countries found that commitment was present in all countries, but the level of commitment, its content, and the factors that led to commitment varied by culture. For example, the U.S. employees had the highest level of affective commitment (emotional ties, identification, and sense of belonging with the organization), \. CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT ( followed by the Slovenians and the Japanese, while the West German sa mple had the lowest score. Two factors predicted commitment across all cultures-job satisfaction and an intrinsic orientation toward work (valuing work for itself, rather than money or external outcomes). But high income and job autonomy were more important in the individualistic countries, the United Kingdom and the United States, whereas helping others at work or feeling that one's work benefits society was more likely to foster commitment in Japan and Hungary. 44 THE SELF-FULFILLING PROPHECY ( Another important concept that relates to expectations and new employees is the se/fjit!filling prophecy, the phenomenon that occurs when people pe1for111 in accordance with a rater 's expectations of them. A manager's expectations for an employee cause the manager to treat the employee differently; therefore, the employee responds in a way that confirms the manager's initial expectations. We have Rosenthal and his albino rats to thank for this particular contribution to organizational behavior. In an experiment, he gave the same strain of rats to different groups of students at Harvard. 45 The students' task was to teach their rats to run a maze. However, one group of students was told their rats were bright; the other group was told their rats were dull. Although there were no inherent differences between the two groups of rats, the so-called "bright" rats learned to run mazes better than the "dull" rats. Further inquiry revealed that the students found the "bright" rats more likeable and, therefore, had treated them differently. Intrigued, Rosenthal and Jacobson tried the same experiment with school children. 46 They randomly chose one child out of every five and told teachers that these children were "academic spurters." At the year's end, the "academic spurters" had improved their IQ by an average of22 points. The teachers' expectations about these students affected the way they treated the children. The children's response to that treatment was to become " academic spurters." The critical variable in these examples is the teacher' s (or rat handler's) expectation: Higher expectations were associated with higher learning. The children (and the rats) became what the teachers thought they were, which is a perfect example of a scl !'.-fulfilling prophecy. We find the same self-fulfilling prophecy at work with newly hired people. Studies indicate that new hires who are immediately given challenging jobs are more likely to show high performance later on in their careers. 47 Today, many large corporations formally label those employees for whom they have high expectations as "fast-trackers" or "high potentials." As part of their succession management programs, companies pay special attention to this group and provide them with the experiences and opportunities that will prepare them to take a top leadership role in the future . Such programs can be very effective, but one of their by-products may be resentment and complaints (both valid and invalid) by " non-fast-trackers" who feel that they, too, could shine if they received the special treatment that goes along with higher expectations of one's performance. What is the practical significance in the workplace of understanding the self-fulfilling prophecy? • Employees who are expected to do well will likely perform better than those who are not, even though there may be no differences between them. • Supervisors and managers who have high expectations of their employees will be more likely to have their expectations met. A MODEL FOR MANAGING PSYCHOLOGICAL CONTRACTS-THE PINCH MODEL l Given the changing expectations within our society and the varying expectations of different generations, groups, and cultures in the workplace, we should proceed on the assumption that other people's expectations are not necessarily the same as our own. To avoid misunderstandings and disillusionment, it is crucial to identify and share mutual expectations in an ongoing process. Sherwood and Glidewell have developed a simple but powerful model, the pinch model, that describes the dynamic quality of psychological contracts and suggests ways of minimizing the potentially dysfunctional consequences of shifting expectations (Exhibit 1-1 ).48 It provides a framework for 13 14 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK ,,,. / Renegotiation under duress ,, I I I I I Resentful I termination I I '' -- Planned termination SHARING INFORMATION AND NEGOTIATING EXPECTATIONS -._-- Return to the way things used to be .,. 1" ... , ~ \ \ ..... ' ROLE CLARITY AND COMMITMENT I Planned renegotiation I I ,/ I .... , I ',,. ,,/ I I Crunch choice point Resentment, anxiety ' Ambiguity, uncertainty DISRUPTION OF SHARED EXPECTATIONS EXHIBIT 1-1 The Pinch Model for Managing Psychological Contracts Source: J. J. Sherwood and J.C. Glidewell, "Planned Renegotiation: A Norm-Setting OD Intervention," in Co111e111po1W)' Orfi£111izutio11 De\'e/op111e111: Orienllltions w1d /11ten·e11tions, (ed.) W.W. Burke (Washington, D.C.: NTL Institute. I 972): 35-46. the continuous management of the psychological contract in the day-to-day work setting. The first stage of any relationship between two individuals and/or an individual and an organization is characterized by a sharing of information and a negotiating of expectations. Suppose that a manager interviewing job candidates informs them that they will be expected to attend frequent company social events after hours and on weekends. If this does not appear to be a reasonable expectation to some candidates, they will deselect themselves, the equivalent of a planned termination in the model. Assuming that both parties accept the other's expectations, they enter a stage of role clarity and joint commitmellf. In other words, both the new employees and the manager understand and accept the role the other party expects them to play and are motivated to meet those expectations. The employee and employer both expect to move into a period of stability and productivity, which allows them to focus their energies on work. Even with the best intentions and full sharing of initial expectations, changes are likely to occur over time. One or both of the parties begin to feel a "pinch" as Sherwood and Glidewell call it. For example, an employee may have been more than willing to put in heavy overtime and cover weekend shifts when he or she was single and new in town. But a marriage involving certain expectations about the time a couple should spend together might change the employee's attitude toward demanding hours and the automatic assumption that this particular employee is available to work them. Sherwood and Glidewell suggest that a pinch like this can be used as an early warning sign to manage the psychological contract process before situations become disruptive. Discussing and renegotiating expectations at this point, a planned renegotation will lead to either a return to stability or, if the differences cannot be resolved, a planned departure. Employees sometimes respond to pinches by saying, "I don't have time to test this issue" or "If I ( CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT ( l raise this issue with my bosses, they'll think I'm just complaining so I'll ignore it." But pinches have a habit of growing into larger problems if they are not handled in a planned manner rather than in the heat of emotion that accompanies the next stage, a disruption of shared expectations. Since the "rules" that were accepted initially have been upset, one or both parties experience heightened ambiguity and u11ce11aillfy, which invariably result in resentnient and anxiety. The situation may reach another choice point, or crunch. People often reler to crunches as the straw that broke the camel's back (e.g., the boss who unfairly accuses a dedicated employee of not working hard because the boss is misinformed, or a job promotion that goes to another employee who is clearly less qualified). Crunches force people to choose among three alternative actions. A common outcome is an effort to retum to the way things used to be. The parties apologize for the misunderstanding, smooth over the conflict, and attempt to renew their commitment to one another under the terms of the old contract. Another possibility is that the two parties renegotiate under duress by again sharing information and negotiating their expectations. The final possibility is that little or no discussion occurs, and the result is some form of resentjit! termination. The termination may be either psychological ("I'll be darned if I'm going to do any more than I'm required to on this job" or 'That's the last thing I ever do for that employee") or physical (absenteeism, tardiness, quitting, or firing) . In the classroom, the psychological contract is also very important. Generally only one of the parties makes its expectations explicit. Teachers begin a course by stating their requirements of students. Students are rarely asked to reciprocate, but woe to the teacher who fails to meet students' unstated expectations! One purpose of this unit is to introduce you to the concept of the psychological contract as it exists in the learning organization you are about to enter. In this way you will be able to move as quickly as possible to a period of stability and productivity (learning) and set in motion the processes of communication needed to deal with any subsequent pinches that may develop. We encourage participants lo state their expectations in the upcoming class activity because it is the first step in taking responsibility for one 's own learning in this course. Although we do not often view the processes in the same terms, entering a classroom environment for the first time is very much like the first day on a new job. The typical orientation program in a company is usually very one sided. Most company communication flows from the organization to the individual : "These are our policies, procedures, expectations." One effect of this one-sided process is to cause new employees to feel that the organization is much more powerful than they are as individuals and may create a situation in which new employees, when asked their expectations, try to second-guess the company 's expectations. Instead of trying to formulate and articulate their own expectations, the new employees (participants) often repeat what they think the organization (instructor) wants to hear. Recall your last job interview. Remember how you tried to "look good" to the organization-to guess what it wanted . How much time did you spend talking about your own expectations and asking what the organization could contribute to your needs? Probably very little and then very cautiously. Similarly, when organizations begin to socialize the incoming member to meet their norms and values and ways of doing things, they sometimes overdo this and oversocialize their members. For example, placing too much emphasis on the organization's expectations of newcomers may result in conformity and passivity. Managers can read passivity as a sign that new employees want and need more direction and control-they want to be told exactly what to do. This situation can create a feedback cycle (a vicious cycle in this case) that, in the long run, operates to the detriment of both the individual and the organization . Organizations need people who are innovative, creative, and independent thinkers to survive and remain productive in a rapidly changing environment. Individual growth and satisfaction also demand these same kinds of behavior. Occasionally, however, the new employee's first contact with the organization sets in motion a cycle that acts in direct opposition to these long-range goals and needs. There is another way in which we can view the process of organizational socialization and the notion of the psychological contract. In approaching any new organization, an individual makes two classes of decisions: a decision to join and a decision to participate. 49 In some cases, such as being drafted into the military or taking required courses, individuals have no control over their own decision to join. The process by which we join an organization has implications for the second class of decisions-the decision to participate. This particul ar decision refers to whether or 15 16 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK not a person chooses to play an active role in the organization or is content with merely being physically present. At work, employees who have made a decision lo participate are involved and working hard to contribute. Those who have decided not to participate are simply marking time, putting in their hours . In the classroom, those who choose lo participate take an active role in the course and become involved in their own learning process. In contrast, those who decide not to participate either sit passively or don ' t attend and work just enough to get by and fulfill the teacher's requirements for a grade. Their own expectations for learning, involvement, and stimulation go unsatisfied because they never made their expectations explicit when they joined . Our purpose in encouraging students to participate in a joint expectation-setting exercise is to provide you with an opportunity to decide whether you want to join and participate in thi s course. Some educational systems and programs unwittingly encourage passivity in students when learners are not expected to take responsibility for their own learning. They are much more accustomed to instructors assuming full responsibility. Thus, when confronted with a genuine opportunity to participate in the learning process, they may become confused ("What kind of way is this to start a class?") or suspicious ("I wonder what the instructor is trying to do." ). When asked to articulate expectations, learners lend to be very vague and general, which is frustrating lo everyone involved. Expectations are much more likely lo be satisfied when a set of realistic, concrete goals can be developed. However, instructors must realize that learners who are not used lo controlling their own education may struggle with accepting greater responsibility. The point is that both participants and instructors have a share of the responsibility for the learning process. This point is an important one to reemphasize. Confusion sometimes develops as a result of this initial contracting session, along the lines of "Why all this talk about our expectations and stuff? You [the instructor] already have the course laid out, the syllabus typed, and the schedule planned!" As is true in any organization, the general thrust or goals are given . This is not a course in art or engineering. It is a course in organizational behavior, but there are many areas of flexibility : what specific goals you as a participating learner set within the general objectives, how you relate to peers and staff and who takes what responsibility for how goals are achieved, and what aspects of the course content receive greater emphasis. Differences might exist around these issues, and they need to be explored during the initial socialization process. Clearly, within the context of the first class session of a few hours, all the possible conflicts that can arise will not be anticipated nor can all those identified be solved. More important than any concrete conclusions that may come out of this expectation-setting exercise is a series of norms for dealing with pinches. As a result of this contract exploration process, the legitimacy of raising issues and differences can be established, the right to question each other and particularly the instructor can be demonstrated, and a decision-making process of shared responsibility to resolve different points of view can be introduced. ···,.. The purpose of the exercise is to model how an explicit psychological contract can be set in the classroom. In the first phase, the instructor learns about the participants' expectations for the course by interviewing group representatives . In the second phase, group representatives interview the instructor to discover his or her expectations of students. (Time alloued: 70 minutes) STEP l . The total group should divide into small discussion groups, four or five people who do not know each other per group, and introduce themselves. (5 minutes) STEP 2. Unless your instructor provides different questions, discuss the general question areas in the accompanying Instructor's Interview Guide. Your instructor will want to hear all the different views expressed in your discussion, so there is no need to come to a group consensus on each question. Everyone should take notes in case he or she is chosen by the instructor as the group representative. Please finish on time. ( 15 minutes) ( CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT Instructor's Interview Guide ( Few instructors ask students to articulate their expectations for a class. During the ensuing interview, the instructor will try to gain an understanding or your views in the following general areas: 1. What are your goals for this course? To increase self-awareness? To learn theories? To fulfill a requirement? To get a grade? To apply learning in your job? Something else? 2. How can the instructor best help you achieve your goals? By lectures, examinations, seminar discussions? (Think back to excellent professors/courses you've experienced and what made them great.) 3. What, if anything, have you heard about this textbook and/or this course from others? 4. What reservations, if any, do you have about this course? S. What is the best thing that could happen in this course? What is the worst thing? ( 6. What are your resources for this course (prior work experience, courses in psychology, etc.)? 7. What norms of behavior or ground rules should we set to ensure that the course is successful (mutual respect, only one person talks at a time, punctuality, etc.)? l STEP 3. Instructor's Interview. The instructor wi II choose a representative from each group, who will sit in the front of the room with the instructor like a panel. The instructor will ask them to give their names and then interview them (using the Instructor's Interview Guide) to understand their expectations for the course. The remainder of the class acts as observers. ( 15 minutes) STEP 4. The class should reform into the same small discussion groups as in Step I. Using the guide provided as a starting point (Participants ' Interview Guide), groups should brainstorm a list of questions they want to ask the instructor. Please feel free to ask questions that do not appear in this guide . Take notes so that you have all the questions listed in case you are chosen as the spokesperson. (5 minutes) 17 18 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Participants' Interview Guide ( You will have the opportunity to ask the instructor any questions you feel are relevant to effective learning during this course and that will help you get to know the instructor. (Note : It is important th at you ask questions that are of real concern to you at this point. Only in this way can potentially important problems or conflicts be identified and managed .) You probably have many ideas of your own , and the questions asked by the instructor during the first interview may suggest others to you. Be sure to ask specific questions. Some areas you may want to discuss are the following : 1. The instructor's objectives for the course (What does he or she hope to accomplish?). 2. The instructor's theory of learning (i.e., How do people learn?). 3. The instructor's opinion on the question of evaluation. 4. The instructor's expectations of you. 5. The instructor's role in the class. 6. The instructor's background or anything else you think is important. STEP 5. Participants' Interview. The instructor will choose group representatives; they will interview the instructor lo understand the instructor's expectations of them and the course. The remainder of the group acts as observers, paying particular attention to possible differences in expectations. (20 minutes) STEP 6. Plenary Discussion (I 0 minutes) a. Did you observe any potential pinches in our expectations? b. With respect lo potential future pinches, whose responsibility is it to raise a pinch, and how should that be done (e.g., written comments, informal discussions at the end of meetings, mid-course evaluations)? c. What differences do you see when you compare this method of mutual interviews to the traditional way most courses begin? d. What is the impact of this exercise on you as a student? CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT ( 1. The psychological contract is an individual's beliefs, shaped by the organi zation , regarding 2. 3. 4. 5. 6. 7. ( 8. 9. 10. 11. 12. 13. 14. 15. l 16. the terms and conditions of a reciprocal exchange agreement between individuals and their organization. Social exchange theory states that people enter into relationships in which both economic and social obligations play a role and that they are most comfortable when exchanges are balanced. Psychological contracts are important because they link individuals to organizations, reflect the trust that is a fundamental feature of the employment relationship, and motivate individuals to fulfill their obligations-if they believe the other party will do the same. Psychological contracts differ from employment contracts because they are dynamic and perceptual; thus, the parties involved do not always share the same interpretation of the contract. When psychological contracts are violated, people respond emotionally with moral outrage, shock , indignation, betrayal , resentment , and anger. Violated contracts also result in decreased employee satisfaction, performance, commitment, discretionary behavior to help the organization, and intentions to remain with the organization. The use of realistic job previews (RJPs), a recruitment technique that gives accurate information about job duties, and especially about the major sources of job satisfaction and dissatisfaction prior to organizational entry, results in less turnover. Commitment is defined as (a) emotional attachment to, identification with, and involvement in the organization; (b) strong belief in , and acceptance of, the organization's goals and values ; (c) a willingness to exert considerable effort on behalf of the organization; and (d) a strong desire to remain in the organization . Committed employees have higher performance. greater ability to adapt to unforeseen circumstances, higher attendance, longer job tenure, and more organizational citize nship behavior. Employers can foster commitment by clarifying and communicating the organization 's mission , guaranteeing organizational justice, creating a sense of community, and supporting employee development. Organizational citizenship behavior (OCB) is defined as discretionary contributions that are organizationally related but are neither explicitly required nor contractually rewarded by the organization , yet nevertheless contribute to its effective functioning. Workplace incivility is defined as low-intensity deviant behavior that violates workplace norms for mutual respect ; it may or may not be intended to harm the target. It causes decreased work effort, time on the job, productivity, performance, motivation, creativity, and helping behaviors. If incivility is not curbed , decreased job satisfaction and organizational loyalty and increased turnover result. External influences, such as adapting to a global economy, economic and employment conditions, demographics, and societal change, affect workplace expectations and psychological contracts. The diverse nature of the U.S. workforce will increase according to predictions for the year 20 I 2. Women will make up 47 percent of the workforce . White non-Hispanics will constitute 65 percent, Hispanics, 15 percent, African Americans, 12 percent, and Asians, 6 percent. Due to their higher birth rates, Hispanics will overtake African Americans as the second largest ethnic group around 2006. The phenomenon of the self-fulfilling prophecy occurs when people perform in accordance with a rater's expectations of them. Managers with high expectations of employees are more likely to have their expectations me t. The pinch model illustrates how to manage the psychological contract and avoid major disrnptions by heeding early warning signs that expectations have changed and need to be reconsidered. In approaching any new organization, people make two classes of decisions: a decision to join and a decision to parLicipate. Good managers and leaders are skilled at gaining participation. 19 20 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK ( Because OB is a complex field, we can't tell you exactly what to do in every situation. Below, however, you will find many of the effective action scripts used by employees, team members, managers, leaders, and organizational architects who have OB expertise. Organizational architects are people who, regardless of their official title, design policies, procedures, and structure, generally on a system-wide basis. Our goal in this section is to help get the psychological contract on your radar screen so you will be alert to cues about how it is working and have a larger repertoire of actions you can take. Ll_ FOR EMPLOYEES • Employees who are "expert" at managing psychological contracts understand that the contract is dynamic and continue to monitor changing expectations. A new boss, a major change effort, or a revolutionary shift in the environment or industry often result in new expectations and the need to be flexible. • As newcomers, savvy employees are careful to choose the right mentors and to check with more than one person about what is expected of them. Organizational cynics of the bitter persuasion are often on the lookout for newcomers to inculcate with their negative view of what's going on-they want company and confirmation that their view is correct. While they can be very entertaining (and we'd be the last people to claim there is nothing to be cynical about in organizations), you are usually better off gathering a variety of perspectives on the psychological contract from people with a positive attitude and seeking out positive mentors. • To some degree, workers influence the type of psychological contract they have with their employer. Employers generally have more loyalty and a less transactional approach to workers with a long-term commitment to the organization and to conscientious workers whose behavior they value. 50 • Expert employees clarify expectations with their bosses and try to understand the constraints and pressures on administration. • Like managers, employees should beware that their perceptions of how well each side is upholding the contract may be inaccurate. Sometimes we succumb to the human tendency to overvalue our contributions and downplay those of the other party (think about the last argument you had over household chores). We also tend to judge ourselves by our intentions, while judging others by their behavior, which is a higher standard. 51 • Keep records of letters and emails that deal with expectations. • Use effective negotiation and persuasion skills when necessary to create a new contract, rather than simply repeating demands. • If the psychological contract has been broken, employees have alternative actions to choose from-exit (quit); voice (speak up and confront management on the discrepancy); loyalty or silence (accept the new reality); and neglect (work less or destructively harm the organization through sabotage or theft). (Neglect is seldom your best option.) Deciding on a strategy gives a greater sense of control over the situation. Some employees find it especially difficult to move beyond the injustice of broken psychological contracts and become embittered and cynical, which can lead to emotional exhaustion and burnout. • The psychological contract among team members should be clarified and periodically evaluated to make sure there is consensus. To borrow Sherwood and Glidewell's terminology, when there appears to be a "pinch" or a "crunch," members take the initiative to address and resolve the problem. CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT • Team members who understand the importance of the contract talk about what trust means to each individual and commit themselves to behaving in ways that are reliable and trustworthy. FOR MANAGERS • Expert managers take action rather than ignoring pinches or crunches. For example, they may meet with individuals or groups to confront the issue by discussing their mutual perceptions of the contract in question, feelings about the violation, and why it occurred. Even if managers disagree with the employees ' perception, they listen respectfully. When managers or leaders have made an error by reneging on a promise, they acknowledge their fault and work at regaining trust. When they are unable to meet the conditions or a contract, they negotiate a new one and think ahead about what the long-term consequences will be. If direct confrontation is not culturally appropriate, they use a mediator or communicate indirectly. • They understand the repercussions of treating even one employee unfairly, because it sends the wrong message to all the others. • They set aside time with new hires to discuss and establish explicit expectations early on and continue to do so on a frequent basis. • They take the initiative to ensure that they and their employees perceive and interpret expectations in the same way, especially when cultural differences exist. Subordinates may not mention a pinch unless they are asked. Without shared perceptions of obligations, both sides can inaccurately assume a contract violation occurred. • When managers are unsure about how an employee views the psychological contract, they can use the following sample questions to check out expectations: • What do you like/dis! ike about your job (or this relationship)? • Why do you continue with it'? • Is there one thing that, if it were changed, would make you quit your job? • What are your expectations of me? • Do you think I am meeting them? • Is there any way I can help you do your job better? • What kind of supervision do you like best'? • Does the organization or do I hinder you in completing your work? • Is there anything you would like to see changed? • Some managers use the following matrix to judge whether mutual expectations are fairly balanced and reasonable. The contributions that individuals or organizations give should be balanced , more or less, by what they get. This matrix can be a good basis for discussion, but bear in mind that good human relationships are not based on a tit-for-tat mentality but on a flexible give-and-take approach. Expect to Get Expect to Contribute Individual (You) Organization or Group • Clear and immediate feedback is provided to employees who are not meeting the expectations set for them. • Experts are on the lookout for other managers who reel they themselves have been poorly treated by the organization. Such managers are less likely to signal to others that the employer is trustworthy or to invest in subordinates.52 l 21 22 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK • When subordinates fail to give management the benefit of the doubt or excessively question decisions that have been made, this can signal lack of trust. Expert managers see these cues and follow up and see what can be done to restore trust. • Effective managers earn employee trust by always doing what they say they will do . • Along with trust, they foster good work group relationships, since both factors mitigate the strength of employee reactions to violated contracts. • When they hear managers or supervisors talking callously or bragging about reneging on promises to employees, expert managers know this is a sign that the organization fails to understand the importance of trust, commitment and the psychological contract. Experts can sometimes educate others by pointing out the high costs of broken contracts in understandable terms, such as calculating turnover costs or pointing out the caliber of employees who quit due to broken contracts. They can also recommend and lead a system-wide effort to create a more trustworthy organization by adopting the actions in the next section. FOR ORGANIZATIONAL ARCHITECTS Prevention always takes less time than fixing a problem. This is especially true when dealing with humans who, as we have already seen in this chapter, often react badly to organizational errors. Organizational architects who know how to manage the psychological contract lay the groundwork for trust and commitment and minimize the risk of broken psychological contracts with these action scripts. • The basis for healthy psychological contracts is an organizational commitment to developing a trusting relationship between management and employees and to fostering the communication and integrity that trust requires .53 • Psychological contracts are communicated through oral discussion, written documents, or organizational practices and procedures. Managers are trained to recognize that they are always setting precedents and shaping expectations when they communicate anything relating to employers and management obligations. • Job announcements and publications are realistic. • Interviewers are trained to be consistent in the information they give new hires and to foster consistency among everyone and everything that shapes contract expectations-top management, HR personnel, direct bosses, mentors, coworkers, HR policies, and PR publications. • The intrinsic dimensions of the psychological contract (e.g., open and honest communication, managerial support, challenging and interesting work) are taken just as seriously as compensation by many employees, so these aspects of the contract should be discussed with potential hires and carefully managed with employees. • Realistic job previews are provided during the hiring process so that new employees have accurate expectations. No one oversells the job or the organization just to reel in new hires who may later become disillusioned and leave when they discover the truth. • Promises are documented to ensure clarity. It's easier to forget or confuse verbal promises. This problem is magnified when bosses change without leaving any record behind. New bosses should not have to deal with the debris of their predecessor's psychological contracts; it's difficull to establish new relationships when struggling to determine whether employees have a valid claim about what was promised to them or whether they are simply taking advantage of a new boss. • Orientation programs are designed to clarify mutual expectations and obligations and help new hires be successful. • Managers are trained to recognize cultural differences that can affect contracts, trust, and commitment. • Testing for shared interpre tations of the psychological contract can occur in personal interviews, focus groups, or employee opinion surveys. ( CHAPTER l ( THE PSYCHOLOGICAL CONTRACT AND COMMITMENT • If circumstances beyond the organization 's control cause a violation, these reasons are quickly and effectively communicated to employees. • Prior to making an organizational change that will disrupt the current contract, the reasons for the change are explained beforehand, the resulting contract violation is acknowledged, and a new contract is established, which is as fair as possible. • Organizational rewards are handled fairly and based on merit. • Valuable employees are retained by providing them with interesting, challenging work and continued skill development. • Given the symbolic message training sends about the value placed on investment in employees, the quality of training is very high . • Performance review interviews are used as an opportunity for open and frank discussions about expectations, obligations, and rewards.54 • Sensitivity and responsiveness to the values and expectations of different generations in the workplace are promoted. These groups are helped to understand one another to prevent generational clashes. • Zero-tolerance standards for incivility are set and consistently reinforced. Swift action is taken when employees are disrespectful, and they are held accountable for their actions. No excuses are made for employees, even if termination is necessary. 55 • Job candidates are carefully screened by checking their work hist01ies for instances of incivility. • Three-hundred-sixty-degree feedback is employed so employees can anonymously identify the incivil behavior of more powerful employees. • Post-departure interviews are used to determine whether incivility or broken psychological contracts play a role in turnover. ( The following assignment is modeled after Kolb's adult learning cycle, which appears in Chapter 3. Your instructor may want you to respond to the questions and submit them at next week 's class or to use this guide as the basis for a longer paper. Each section of the assignment is worth 4 points that will be assigned according to the criteria that follow.56 The topic or this assignment is to think back on a significant incident when you experienced a pinch in a psychological contract. Pick an experience about which you are motivated to learn more; that is, there is something about it that you do not totally understand, that intrigues you, that makes you realize you lack certain skills, or that is problematic or very significant for you . It could have taken place at school, in a work relationship or a social one (with a club or group), or within a personal relationship. A. Concrete Experience 1. Objectively describe the experience (who, what, when, where, how). (2 points) 2. Subjectively describe your feelings, perceptions, and thoughts that occurred during (not after) the experience. What did others seem to be feeling? (2 points) 23 24 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK B. Reflective Observation 1. Looking back at the experience, what were the perspectives of the key actors (including you)? (2 points) 2. Why did the people involved (including you) behave as they did? (2 points) C. Abstract Conceptualization 1. Relate concepts or theories from the assigned readings or the lecture to the experience. Explain thoroughly how they apply to your experience. Please apply at least two concepts or theories and cite them correctly. (4 points) D. Active Experimentation 1. What did you learn about psychological contracts from this experience? (I point) 2. What did you learn about yourself? (I point) 3. What action steps will you take to be more effective in the future? (2 points) ( CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT 25 E. Integration, Synthesis, and Writing ( 1. Did you integrate and synthesize the four sections? (I point) 2. Is your paper well written and easy Lo understand'? (I point) 3. Is it free of spelling and grammar errors? (2 points) ENDNOTES 1 I. S. Fulmer. B. Gerhart. and K. S. Scott. "Are the I00 Best Better? An Empirical Investigation of the Relationship Between Being a 'Great Place to Work' and Firm Performance." Personnel Psychology 56 (2003): 956-93. 2 D. M. Rousseau. Psyc/wlogical Con1rac1 in Organiza1ions: Underswndi11g Wri11e11 a11d Um vrillen Agree111en1s (Newbury J. Van den Bosch. "Het Psychologisch Comract Van PartTimers en Full-Timers," Gedrag en Orga11isa1ie 8. ( 1995): 307-17. 8 Park. CA: Sage, 1995). Robinson and Rousseau. " Violating the Psychological Contract: Not the Exception but the Norm ." 3 9 P. M. Blau , Exchange a11d Power i11 Social Life (New York: Wiley. 1964); A. W. Gouldner, 'The Norm of Reciprocity: A Preliminary Statement." A111erica11 Sociological Reviell' 25 (1960): 161-78; and S. J. Wayne. L. M. Short, and R. C. Liden. " Perceived Organizational Support and LeaderMember Exchange: A Social Exchange Perspective:· Academy of Managemenl Journal 40 ( 1997): 82-1 I I. ( Violations are Created Equal .'' Journal of Orga11izmional Behavior 24 (2003): 627-647; and R. Schalk. C. Freese. and J. M. Phillips , "Effects of Realistic Job Previews on Multiple Organizational Outcomes: A Meta-Analysis," Academy of Manage111en1 Journal 41 ( 1998): 673-90. IO J.P. Wanous. " Realistic Job Previews." in E11cyclofiedic Dic1io11ary of Organiza1io11al Behavior. ed. N. Nicholson (Cambridge, MA: Blackwell , 1995): 468-469. 11 4 S. W. Lester. J.M. Bloodgood. and M. C. Bolino, "Not Seeing Eye to Eye: Differences in Supervisor and Subordinate Perceptions or and Attributions for Psychological Contract Breach:· Journal of Orga11izmio11al Behm•ior 24 (I) (2002): 39-57. S. W. Lester. C. Eau , and J. Kickul. "Psychological Contracts in the 21st Century: What Employees Value Most and How Well Organizations are Responding to These Expectations. "H11111an Resource Pla1111ing 24 (I) (200 I): I 0-21 . 5 L. M. Shore and K. Barksdale. "Examining a Degree or Balance and Level or Obligation in the Employment Relationship: A Social Exchange Approach .'' Journal of Orga11iza1ional Behavior 19 ( 1998): 731-44: T. Simons. "Behavioral Integrity: The Perceived Alignment between Managers' Words and Deeds as a Research Focus." Organiza1io11al Science. 13 (I). (2002): 18-35. 12 D. M. Rousseau. and R. Schalk. Psychological Co111rac1s in Employ111en1: Cmss-Na1ional Perspeclives. (Thousand Oaks: 6 Simons. "Behavioral Integrity: The Perceived Alignment between Managers' Words and Deeds as a Research Focus." 7 S. L. Robinson. and D. M. Rousseau, "Violating the Psychological Contract: Not the Exception but the Norm." Journal of Orga11i;:,a1io11al Behavior 15 ( 1994): 245-59: D. Blancero and S. A. Johnson . "Customer Service Employees and Discretionary Service Behavior: A Psychological Contract Model.'' Paper presented at the Academy or Management Conference, Boston. MA ( 1997); Lester. Bloodgood and Bolino." Not Seeing Eye to Eye··: J. Coyle-Shapiro and I. Kessler. "Consequences of Psychological Contract for the Employment Relationship: A Large Scale Survey.'' Journal of Ma11age111en1 S1udies 37 (2000): 903-930: R. A. Guzzo. K. A. Noonan. and E. Elron, " Expatriate Managers and the Psychological Contract." Journal of Applied Psychology 79 (4) ( 1994): 617-26: W. H. Turnley and D. C. Feldman, "The Impact of Psychological Contract Violations on Exit. Voice. Loyalty and Neglect." Human Relalions 52 ( 1999): 895-922: J. L. Johnson. and A. M. O'Leary-Kelly. 'The Effects of Psychological Contract Breach and Organizntional Cynicism: Not all Social Exchange Sage. 2000). IJ Ibid. 14 Walker Information. "The Walker Loyalty Report: Loyalty and Ethics in the Workplace." (Indianapolis. IN: Walker Information, 2003 ). 15 These de finitions were taken from J. P. Meyer and J. 1. Allen. Co111111i1men1 in !he Workplace: Theory, Research, and AJ1plica1ion (Thousand Oaks: Sage. 1997): and L. W. Porter. R. Steers. R. T. Mowday. and P. V. Boulian. "Unit Performance. Situational Factors. and Employee Attitudes in Spatially Separated Work Units," Organizmio11al Behavior a11d Hu111a11Pe1for111a11ce15 (1974): 87-98. 16 Meyer and Allen, Co111111i1111e111i111he Workfilace: Theory, Research, a11d Applica1io11; R. Mowday, L. W. Porter. and R. M. Steers. Emfiloyee-Organizalion Linkages: The Psychology of Co111111i1111en1, Absen1eeis111 a11d Turnover (New York: Acad- emic Press, 1982); A. R. Elangovnn. "Causal Ordering of Stress. Satisfaction and Commitment, and Intention to Quit: A Structural Equations Analysis,'' Leadership and Orgw1iw1io11 Develop111e111 Journal. 22(4) (200 I): I 59-165. There is extensive research in this area: the research cited here is merely a sample. 17 Meyer and Allan. Co111111i1111en1 i11 !he Workplace: 34. 26 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK 18 I. E. Jernigan. J. M. Beggs, and G. F. Kohut, "Dimensions of Work Satisfaction as Predictors of Commitment Type," Journal of Managerial Psychology 17(7) (2002): 564-579. 30 19 Meyer and Allen, Commitment in the Workplace; J. E. Mathieu and D. Zajac, "A Review and Mela-Analysis of the Antecedents, Correlates, and Consequences of Organizational Commitment," Psyclwlogical Bulletin 108 ( 1990): 171-94. 31 K. C. Hall. "More Job Opportunities Seen for Older Workers," (Associated Press) San Jose Mercury News , March I, 2005. pp. 1C and 6C. 20 S. C. Payne, and A. H. Huffman, "A Longitudinal Examination of the lntluence of Mentoring on Organizational Commitment and Turnover," Academy of Management Journal 48( I) (2005): 158-168. 21 G. Dessler. "How to Earn Your Employees' Commitment," Academy of Management Executive I 3(2) ( 1999): 58-67. 22 P. C. Flood. T. Turner, N. Ramamoonhy, and J. Pearson, "Causes and Consequences of Psychological Contracts among Knowledge Workers in the High Technology and Financial Services Industries," International Journal of Human Resource Management 12(7) (2001): 1152-65. 23 A. S. Tsui, J. L. Pearce, L. W. P011er. and A. M. Tripoli. "Alternative Approaches to the Employee-Organization Relationship: Does Investment in Employees Pay Off?" Academy of Management Joumal 40(5) ( 1997): I 089-121. 24 C. M. Pearson and C. L. Porath. "On the Nature, Consequences and Remedies of Workplace Incivility: No Time for 'Nice'? Think Again," Academy of Manage111e/l/ Execlllive 19( I) (2005): 7. 25 C. M. Pearson and C. L. Porath. "On the Nature, Consequences and Remedies of Workplace Incivility: No Time for 'Nice'? Think Again;" J. Graydon, W. Kasta, and P. Khan, "Verbal and Physical Abuse of Nurses." Canadian Journal of Nursing Administration, November-December ( 1994): 70-89; L. M. Cortina, V. J. Magley, J. H. Williams. and R. D. Langhout. "Incivi lity in the Workplace: Incidence and Impact," Journal of Occupational Health Psychology, 6 (200 I): 64-80; and H.J. Ehrlich and B. E. K. Larcom. "Ethnoviolence in the Workplace," Baltimore: Center for the Applied Study of Ethnoviolence. ( 1994). 26 C.M. Pearson, C.L. Andersson, and L.M. Porath, "Assessing and Auacking Workplace Incivility," Organizational Dynamics Fall (2000): 123-137. T. Petzinger, Jr., The New Pioneers: The Men and Women Who Are Transforming the Workplace and Marketplace (New York: Simon & Schuster, 1999). 32 L. Birch, "Thinking About Tomorrow," Wall Street Journal, May 24, 1999, R-30. 33 "Number of Jobs Held, Labor Market Activity, and Earnings Growth Among Younger Baby Boomers: Recent Results From a Longitudinal Survey," Bureau of Labor Statistics. www.bls.gov/news.release/pdf/ nlsoy.pdf (accessed July 5 , 2005). 34 Bureau of Labor Statistics. www.bls.gov/news.release/pdti' tenure.pdf (accessed June 23, 2005). 35 "Labor Force," Occupation Ow!ook Quarterly, Winter (2003-2004): 42-48. 36 G. Cole, R. Smith, and L. Lucas, ''The Debut of Generation Y in the American Workforce," Journal of Business Administration Online I (2) (2002): 3. Hltp://jbao.atu.edu/Fall2002/ cole_smith_lucas.pdf. Accessed 9115/06. 37 Ibid. 38 U.S. Bureau of Labor Statistics, News-U.S. Department of Labor, released, June 9, 2005. 39 Rousseau, and Schalk, Psychological Contracts in Employment: Cross-National Perspective. 8. 40 Ibid. 41 D. C. Thomas and K. Au, "Cultural Variation in the Psychological Contract," Academy of Management Proceedings (2000) : 1-6; S. Ting-Toomey, Communicating Across Cultures. New York: Guilford ( 1999). 42 Rousseau, and Schalk. Psyclwlogical Contracts in Employme111: Cross-National Perspective. 43 Ibid. 44 D. M. Andolsek, and J. Stebe, "Multinational Perspectives on Work Values and Commitment," International Journal of Cross Cultural Management 4(2) (2004): 181-209. 45 27 Pearson and Porath. "On the Nature. Consequences and Remedies of Workplace Incivility: No Time for 'Nice'? Think Again." R. Rosenthal and K. L. Fode, "The Effect of Experimenter Bias on the Performance of the Albino Rat," Behavioral Science 8 ( 1968): 183-89. 28 46 H. Rosen with L. Berger, T/ie Healthy Company: Eight Strategies to Develop People, Productivity, and Profits (New York: Tarcher/Perigee, 1992). 29 A. Geller, "Workers Less Satisfied With Jobs, Survey Says," (Associated Press) San Jose Mercwy News, March 1, 2005. p. 2C. R. Rosenthal and L. F. Jacobson, ''Teacher Expectations for the Disadvantaged," Scientific American 2 I 8 ( 1968): 19-23. 47 D. W. Bray, R. J. Campbell, and D. L. Grant, Formative Years in Business: A Long-Term AT& T Study of Managerial Lives (New York: John Wiley, 1974) and D. E. Berlew and D. \_ CHAPTER 1 THE PSYCHOLOGICAL CONTRACT AND COMMITMENT ( T. Hall. "The Socialization of Managers: The Effects of Expectations on Performance." Administrative Science Quarterly 11 (2) (September 1966): 207-33. ~ 8 J. J. Sherwood and J. C. Glidewell. " Planned Renegotia- tion: A Norm Setting OD Intervention ," Conte111pora1)' Organization Development: Orientations and Interventions, ed. W.W. Burke (Washington. DC: NTL Institute. 1972): 35-46. ~ 9 See J. G. March and H. A. Simon. Organi::.ation (New York: John Wiley. 1963). especially Chapter 4. for a fuller discussion of this conceptual scheme. 50 Rousseau, "Psychological Contracts in the Workplace: Understanding the Ties that Motivate." 51 R. J. Paul, B. P. Niehoff, W. H. Turnley. "Empowerment, Expectations. and the Psychological Contract-Managing the Dilemmas and Gaining the Advantage." The Journal of SocioEconomics 29 (2000): 471-85. ( l 27 52 Rousseau, " Psychological Contracts in the Workplace: Understanding the Ties that Motivate." 53 B. P. Niehoff and R. J. Paul. ''The Just Workplace: Developing and Maintaining Effective Psychological Contracts," Review of Business, Spring (2001 ): 5-8. 54 R. S. Sims. "Human Resource Management's Role in Clarifying the New Psychological Contract,'" Human Resource Management, 33(3) ( 1994): 373-82. 55 The action scripts for dealing with incivility come from Pearson and Porath. "On the Nature, Consequences and Remedies of Workplace Incivility: No Time for ' Nice' ? Think Again." 56 This guideline was originally developed by Don McCormick. Redlands University. Los Angeles. ( THEORIES OF MANAGING PEOPLE ()itJrnCTT\fi!'.5 By the end of this chapter, you should be able to: A Describe seven theories of management and their "ideal" manager. B. Explain the competing values framework and what constitutes a master manager. C. Explain why it's important to identify your personal theories about management and organizational behavior. D. Describe your personal theory of management. E. Identify the managerial skills you need in today's global business environment. H.E J/\CK /\ ND For a nationwide satellite broadcast, two of the most well-respected U.S. CEOs, former GE CEO Jack Welch and former Southwest Airlines CEO Herb Kelleher, met with Fo1tune editors John Huey and Geoffrey Colvin. The subject: how to create great companies and keep them that way. Jack, let's start with a basic question. You've been in this job 17 years, and yet you're still bursting with energy. How come? What makes you so energized? Jack Welch: There are a thousand things, I think. I have the greatest job in the world. We go from broadcasting, engines, plastics, the power system-anything you want, we've got a game going. So from an intellectual standpoint, you're learning every day. We get a great kick out of the fact that we have made this company think outside itself. We want people who get up every morning with a passion about finding a better way: finding from their associate in the office, finding from another company. We're constantly on the search. We brag about learning from Motorola , HP, Allied . Wal-Mart-we learned quick market intelligence from them . Toyota-asset management So we've designed a culture that gets people to look outside the company, and we've designed a reward system that's aligned with that. As Herb has said, the rewards of these jobs have to be in the soul and in the wallet. I get a sheet every week of stock optionees who ' ve cashed options. This year we will see $1.6 billion in employee gains in stock options; $1.2 billion of that will be below any senior-management level. Some 40 percent of our optionees make $70,000 or less. If they got a thousand shares each of the past five years, they would today have a gain of $800,000. In five years they've gotten about 12 times their annual salary. That's a kick. 28 CHAPTER 2 THEORIES OF MANAGING PEOPLE ( Sam Walton used to say that it takes a week to two weeks for employees to start treating customers the same way the employer is treating the employee. Everybody who's ever flown Southwest Airlines notices a big difference in the way you get treated at Southwest. What are you doing to these people to make them treat us so well? Herb Kelleher: It's dearly the charisma of the chief executive officer. But, seriously, your employees act as if' they're empowered to make decisions and break rules. How do you encourage fun in a business where you've got people's lives in your hands every day? Kelleher: There's something we call professional terminal ism . People who emphasize too strongly the fact that they're professionals usually are not very good al what they do. What really adds up to professionalism is being very good at what you do in a very modest way. That's the way our people are: They 're results oriented. Whether it 's the best safety record in the world, the best customer service record in the world, the youngest jet fleet , or lower fares, our people are really focused. GE also has an informality, which belies the image that most people would have of' a huge, massive, financially driven global company. How does that work? Welch: Informality gives you speed. IL takes the crap out of the business equation, the pontificating . I can remember 20 years ago in this company when you went to a meeting, the lights went down, you read a script, you gave your pitch, and you got the hell out of the room . That was the game. Today you ' re in there having an open dialogue with self-confident people, real exchanges about real things. Giving people self-confidence is by far the most important thing that I can do. Because then they will act. I tell people, if this place is stifling you, shake it, shake it, break it. Check the system , because it wants to be a bureaucracy. And if it doesn't work, gel the hell out. If GE can't give you what you want, go get it somewhere else. Jack, there's a story that at some point you quit, saying the GE bureaucracy had broken your spirit and you were leaving. Welch: Right. It was after one year. But my boss's boss came up the night before the goingaway party and convinced me that things would change. So I stayed. It was really about the absolute roteness of it all. I was in a group of seven in development engineering, and we all got our raise the same day, and we all got the same amount of money. And I thought I was a hell of a lot better than the other six. I didn't think it was a good deal. Did your boss's boss make good? Welch: Yes. He gave me a project where I was the only employee. I was able lo call myself king , emperor, any title you wanted. And I hired one technician. And from that, we built a plastics business. Well, that's self-confidence. You looked around, you decided you're worth more than everybody else, and quit. Let's turn to another subject. Herb, the figures I have are that 100,000 people applied for a job last year, and you hired 3,000. What's your advice to someone who wants a job at Southwest? Kelleher: My first advice would be not to go for my job. Beyond that, I would say that if you're an altruistic, outgoing person who likes to serve others and enjoys working with a team , we want you . If you're the kind of person who enjoys a more secure, more regimented, more inflexible, more rule-governed type of environment, that doesn't mean that you 're a bad person, but we 're probably incompatible. We shouldn't even get engaged, much less get married. Is it true that you should be prepared to tell a joke in the job interview? l Kelleher: No, that's not true. But it is true that we will say to someone, tell us how humor helped you get around one of the more diflicull situations in your life. 29 30 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK People think it's kind of crazy, Jack, but we had a pilot-applicant class one day and we said, we don ' t interview you in suits; put on some Southwest Airlines shorts. Now, you may think that that seems kind of quirky and aberrational-i1rntional, even . But the ones who were delighted to do it because they thought it was a lark-those were the ones we hired . You both run huge companies. How do you renew a big organization, renew your own spirit, and, most important, renew the sense of purpose of your employees? Kelleher: The way that we accomplish that is that we constantly tell our employees-and Jack and I were discussing this earlier-think small and act small, and we'll get bigger. Think big, be complacent, be cocky, and we'll get smaller. One way we avoid complacency-and this may just be because I don ' t have a long attention span-is that we reject the idea of long-range planning. We say, do strategic planning, define what you are, and then get back together soon to define whether you need to change that. And have the alacrity of a puma. Because this plan about what we're going to do I 0 years from now will almost certainly be invalidated in the next six months. Welch: You need to believe that you are a learning institution and to constantly challenge everything you have. I was at Crotonville [the Connecticut site of GE's Leadership Development Center] on Monday night. I said, how many people can raise their hand and say they predicted the Asian crisis? Not one hand went up, including mine. I said, what does that tell you? All of this crap you planned for is meaningless, basically. What's important is that you're agile, in your thinking and in your action. We were getting steel casings for turbines in Mexico, which was making them for 40 percent less than they make them for here. Within 45 days our team had moved those casings out of Mexico to Korea, which was 40 percent below Mexico. That took just 45 days. You've also got to use the strength of a big company, and reduce its weaknesses. For example, a big company doesn't communicate as well as a small company. There's no chance. A big company moves more slowly. We think we're the fastest elephant at the dance, but we are an elephant. So what does the big company do well? It can go to bat more often. I've made more mistakes in the 18 years I've been doing this job than probably any human being in America has made . Most of them, Fortune doesn ' t find out about, the Wall Street Journal doesn't find out about. (Of course. when I screw up Kidder Peabody, I get on the front page of everything.) But if I make small mistakes, no one sees them. We ' ve made $10 billion to $15 billion of acquisitions every year for the past five years . Most don't even make the papers. A billion here, a billion there, two billion here . That's what a big company 's balance sheet allows it to do: keep playing. Jack, you're doing a total-quality thing 10 or 15 years after the rest of corporate America did it. Why are you doing it, and why now? Welch: There was only one guy in the whole country who hated quality more than me. I always believed quality would come from just operating well and fast, and all these slogans were nonsense. The guy who hated quality more was Larry Bossidy. He hated quality totally. Then he left GE and went to AlliedSignal. In order to resurrect AlliedSignal, Larry went ou't, saw Motorola, and did some stuff on Six Sigma. And he called me one day and he said, "Jack, this ain't b.s.this is real stuff, this is really great stuff." We poll 10,000 employees every year. In 1995 they came back and said, we desperately need a quality issue. So Six Sigma was something we adopted then . The results are fantastic . We're going to get $1 .2 billion of gain this year. For years our operating margin was never over 10. It's been improving, and it's going to be 16.7 this year. Our working-capital turns were four for 35 years. It will be nine this year. CHAPTER 2 THEORIES OF MANAGING PEOPLE Herb, you're a company founder. Many people think there can't be a Southwest without Herb Kelleher. How do you follow your act? Kelleher: The way I look at it is the United States was strong enough to live through Millard Fillmore and Warren G. Harding. And if we should make a mistake and get a successor who didn't subscribe to Southwest's value system, there will probably be an insurrection. So I think the culture is stronger than any individual who might try to fly in the face of it or defy it. Finally, what keeps you guys awake at night? Kelleher: What keeps me awake are the intangibles. It 's the intangibles that are the hardest thing for a competitor to imitate. You can get airplanes, you can get ticket counter space, you can get tugs, you can get baggage conveyors. But the spirit of Southwest is the most difficult thing to emulate. So my biggest concern is that somehow, through maladroitness, through inattention, through misunderstanding, we lose the esprit de corps, the culture, the spirit. If we ever do lose that, we will have lost our most valuable competitive asset. Welch: What do I worry about? I was in Hong Kong about a month ago when our stock crashed through 70 to 69 from a high of 96 [the stock was at 88 at the time of this interview]. People don't realize that 10 percent of our company is owned by our employees, including production workers, who own $2 billion worth. It is an incredible feeling of responsibility to take their savings and their life and have something go wrong with it. Source: "The Jack and Herb Show." For11111e /39(1) (January 11. 1999): 163-66. I \ A. Read "The Jack and Herb Show." B. Fill out and score the Leadership Styles Questionnaire on the following page. C. Answer the following questions. 1. How would you describe the ideal manager? 2. How did you arrive at this ideal- taking into consideration previous experiences, values, role models, education, training, reading, and so on? 3. What values underlie your picture of the ideal manager? 4. How would you score Jack Welch and Herb Kelleher on the questionnaire on the following page? l. 31 32 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK 5. After reading the chapter, which theory(ies) of management seem(s) to be most prevalent in your workplace? ( 6. What struck you as the most significant idea in the chapter, o ne which might be useful in your cun-ent or former workpl ace? Leadership Styles Questionnaire This instrument is designed to help you better understand the assumptions you make about people and human nature. There are 10 pairs of statements . Assign a weight from 0 to 10 to each statement to show the relative strength of your belief in the statements in each pair. The points assigned for each pair must total 10 in each case . Be as honest with yourself as you can and resist the natural tendency to respond as you would like to think things are . This instrument is not a test. There are no right or wrong answers. It is designed to be a stimulus for personal reflection and discussion . 1. It's only human nature for people to do as little work as they can get away with . _ _ _ _ _ _ __ (AJ When people avoid work, it's usually because their work has been deprived of its meaning . (BJ 10 2. If employees have access to any information they want, they tend to have better attitudes and behave more responsibly. (CJ If employees have access to more information than they need to do their immediate tasks, they will usually misuse it. (DJ 10 3. One problem in asking for the ideas of employees is that their perspective is too limited for their suggestions to be of much practical value. (EJ Asking employees for their ideas broadens their perspective and results in the development of useful suggestions . (FJ 10 4. If people don't use much imagination and ingenuity on the job, it's probably because relatively few people have much of either. (GJ Most people are imaginative and creative but may not show it because of limitations imposed by supervision and the job. (HJ 10 5. People tend to raise their standards if they are accountable for their own behavior and for correcting their own mistakes. (IJ People tend to lower their standards if they are not punished for their misbehavior and mistakes. (JJ 10 6. It's better to give people both good and bad news because most employees want the whole story, no matter how painful. (KJ It's better to withhold unfavorable news about business because most employees really want to hear only the good news. (LJ 10 CHAPTER 2 THEORIES OF MANAGING PEOPLE 7. ( Because a supervisor is entitled to more respect than those below him or her in the organization, it weakens the supervisor's prestige to admit that a subordinate was right and he or she was wrong. 33 (M) Because people at all levels are entitled to equal respect, a supervisor's prestige is increased when he or she supports this principle by admitting that a subordinate was right and he or she was wrong. (N) 10 8. If you give people enough money, they are less likely to be concerned with such intangibles as responsibility and recognition. (0) If you give people interesting and challenging work, they are less likely to complain about such things as pay and supplemental benefits. (P) 10 9. If people are allowed to set their own goals and standards of performance, they tend to set them higher than the boss would . (Q) If people are allowed to set their own goals and standards of performance, they tend to set them lower than the boss would. (R) 10 10. The more knowledge and freedom people have regarding their jobs, the more controls are needed to keep them in line. The more knowledge and freedom people have regarding their jobs, the fewer controls are needed to ensure satisfactory job performance . (S) (T) 10 Source: Adapted from M. Scott Myers. Erery Employee a Manager (New York : McGraw-Hill Book Company. 1970). ( Scoring Instructions Record the number you assigned to each of the following letters in the space provided, and then total each column. Theory X Theory Y A B D c E F G H J K M N 0 p R Q s T (Total) Theory X Score (Total) Theory Y Score 34 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Theory X Assumptions (Traditional) Theory Y Assumptions (Emerging) 1. People are naturally lazy; they prefer to do nothing . 1 . People are naturally active; they set goals and enjoy striving . 2 . People work mostly for money and status rewards . 2. People seek many satisfactions in work: pride in achievement, the work itself, sense of contribution, pleasure in association, stimulation of new challenges, etc . 3. The main Force keeping people productive in their 3. The main force keeping people productive in their work is desire to achieve their personal and social goals. work is fear of being demoted or fired. 4 . People remain children grown larger; they are 4. People normally mature beyond childhood; they aspire to independence, self-fulfillment, and responsibility. naturally dependent on leaders. 5. People expect and depend on direction From above; 5. People close to the situation see and feel what is they do not want to think for themselves. 6. People need to be told, shown, and trained in needed and are capable of self-direction . 6 . People who understand and care about what they are doing can devise and improve their own methods of doing work. proper methods of work . 7. People need supervisors who will watch them 7. People need a sense that they are respected as closely enough to be able to praise good work and reprimand errors. 8. People have little concern beyond their immediate, capable of assuming responsibility and selfcorrection . 8. People seek to give meaning to their lives by identifying with nations, communities, churches, unions, companies, and causes. material interests. 9. People need specific instruction on what to do and 9 . People need ever-increasing understanding; they need to grasp the meaning of the activities in which they are engaged . how to do it; larger policy issues are none of their business. 10. People appreciate being treated with courtesy. 10. People crave genuine respect from their fellow human beings . 11. People are naturally compartmentalized; work 11. People are naturally integrated; when work and demands are entirely different from leisure activities . 12 . People naturally resist change; they prefer to stay in play are too sharply separated, both deteriorate. 12. People naturally tire of monotonous routine and enjoy new experiences; to some degree, everyone is creative . the old ruts . 13. Jobs are primary and must be done; people are selected, trained, and fitted to predefined jobs . 14. People are formed by heredity, childhood, and youth; as adults they remain static; old dogs don't learn new tricks. 15. People need to be "inspired" (pep talk) or pushed or driven . 13 People are primary and seek self-realization; jobs must be designed, modified, and fitted to people. 14. People constantly grow; it is never too late to learn; they enjoy learning and increasing their understanding and capability. 15 . People need to be released, encouraged, and assisted . Source: Douglas McGregor, Tile Human Side of Enterprise (New York: McGraw-Hill Book Company. 1960). :s Just like Jack Welch and Herb Kelleher, two of the most effective CEOs in recent times, we all have our theories and mental maps about what makes successful managers and organizations. "Theory often gets a bum rap among managers because it's associated with the word "theoretical," which connotes "impractical." 1 Kurt Lewin, one of the earliest scholars to study organiza- ~ · CHAPTER 2 THEORIES OF MANAGING PEOPLE ( tional behavior, once said there is nothing so practical as a good theory. "A theory is a statement predicting which actions will lead to what results and why. Every action that managers Lake, and every plan they formulate, is based on some theory in the back of their minds that makes them expect the actions they contemplate will lead to the results they envision." 2 Everyone uses theories , but, unfortunately, not everyone uses theories that are valid and backed up by research. Good theories help us interpret the present and figure out what is going on and why. They allow us Lo make predictions about the consequences of managerial actions. 3 In this way, good theories take some of the uncertainty out of decision making and lead to belier results. Over the years, numerous theories have contributed Lo our general understanding of management. Some of the major schools of management thought are summarized in the following paragraphs to set the stage for the study of organizational behavior. Each reflected the theorist's model of excellent organizations and managers within their sociohistorical context. Frederick Taylor's scientific management, 4 the "one best way" of doing a job, which emerged in the late 1800s, emphasized the efficient division of labor into small , specialized, standardized jobs that were carefully matched with the capacities of workers. For the first time, Taylorism made it possible for engineers to research the most efficient way Lo do jobs. Taylor's goal was to develop workers to the best of their abilities and to convey the message that it was cooperation between capital and labor that resulted in success. By increasing profits, rather than arguing over their distribution, both labor and owners would prosper. Taylor's name is often mistakenly associated with time-and-motion studies run amok and an inhumane emphasis on output. In fact, Taylor was concerned about both the proper design of the job and the worker. In Taylor's eyes, the ideal manager (perhaps with the aid of an engineer) scientifically determined the goals that needed to be accomplished, divided the work up in the most efficient way, trained workers to do the job, and rewarded them by wage incentives such as piecework. However, since l(xemen were cast as the "brains" who did planning rather than actual operations, workers came to be seen as lillle more than ;'a pair of hands."' While that sounds pejorative, it was a perspective more easily understood when placed within the context of a country just beginning to industrialize. The labor force quite naturally consisted primarily of people from rural backgrounds without prior factory experience. In that era, workers were viewed as one more resource, much like machines. Scientific Management ( Administrative Theory The next phase in management history was termed administrative theory. At that time, beginning about the late 1920s, managers were grappling with the problems of organizing larger and larger organizations and defining the emerging role of the professional manager. Administrative theory came up with answers to both issues. Fayol defined the functions of a manager as planning, controlling, organizing, and commanding and advocated the study of management as a· discipline .5 Weber contributed greatly to our understanding of the "ideal" bureaucracy and the different types of authority that wen.; appropriate for it. 6 In those days, bureaucracy did not have the negative connotations it does today. Indeed, bureaucracy was then viewed as a solution to the nepotism , favoritism , and unprofessional behavior found in organizations of the day. Proponents of administrative theory believed that if managers designed the organization correctly and followed the proven principles of management (e.g., having a limited number of people report to each supervisor, having only one boss for each worker, and engaging in merit-based selection of employees), the organization would succeed. Human Relations School l. The formula for organizational success was expanded by the famous Hawthorne studies 7 that took place in the late 1920s and 1930s. The Hawthorne studies contributed the idea that worker output was affected by numerous, heretofore ignored , variables: how workers were treated; how they felt about their work, coworkers, and boss; and what happened to them outside of work. When the researchers increased the lighting in the wire factory, productivity went up ; but it also went up when the researchers dimmed the lighting till it approximated "moonlight"! The attention the workers received in the experiment from the researchers, rather than the varied work conditions being testing, caused them to work harder. This phenomenon has come to be known as the Hawthorne Effect. 35 36 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK The human relations school grew out of this research and acknowledged that workers had to be considered as more than "hands"; workers also had "hearts" (i.e., feelings and attitudes that affected productivity). And the norms or implicit rules of the work groups to which they belonged also affected productivity. Therefore, the effective manager was expected to pay attention to people's social needs and elicit their ideas about work issues. The human relations school of thought gained popularity at a time when the credibility of businesspeople was low due to the stock market crash and when feelings of exploitation fueled the union movement. Decreased immigration had made labor scarce, and, as a result, the needs of workers began to receive attention. Theory X and Theory Y Another example of mental maps that people have concerning management is McGregor's Theory X and Theory Y concept. 8 McGregor described two ends of a continuum of assumptions about people and human nature. These assumptions appear on page 34. The Leadership Style Questionnaire that you filled out as part of the class preparation is designed to help you assess the extent of your own Theory X versus Theory Y assumptions about people. Whether we incline more to the carrot (Theory Y) or the stick (Theory X) approach to motivation may be rooted in these assumptions. Understanding them is of crucial importance because of the potential that exists for self-fulfilling prophecies. For instance, if you believe people are lazy and incapable of thinking for themselves (Theory X assumptions), you will most likely manage them in a way that is consistent with these assumptions (e.g., watch over their shoulders all the Lime and call all the shots). This behavior can cause your subordinates to feel that they really have no responsibility in their job, which could lead them to work hard only when you are watching them closely. A self-fulfilling prophecy is thus set in motion, and your view of human nature is confirmed. In some cultures, we find a stronger tendency toward a Theory X or Theory Y orientation. As we saw in Seuing the Global Stage, one of the dimensions anthropologists use to differentiate cultures is their view of human nature. Is human nature good, evil, or neutral-in other words, trustworthy or untrustworthy? Cultures that tend to perceive humankind as innately untrustworthy tend toward a Theory X orientation (e.g., Latin American countries). Cultures that tend Lo perceive humankind as trustworthy are more likely to be characterized by a Theory Y orientation (e.g., Scandinavian countries). These generalizations do not mean that all managers in these cultures are similar but that we will find more aspects of either Theory X or Theory Yin their organizations and managerial style. There are other dimensions along which management theories of other cultures differ. Therefore, it's important to understand indigenous management theories when working overseas. European and U.S. theories are written about most frequently due in large part to the research emphasis of their universities, but this does not mean that other important theories are not alive and well around the world. Decision-Making School March and Simon,9 writing in the late 1950s, were proponents of the decision-making school. They added yet another layer of complexity to our understanding of organizations with their description of organizations as social systems in which individual decisions are the basis of human behavior. One of their contributions was mentioned in the previous chapter: employees make the decision to join an organization, but once hired, they also have another decision to make-whether or not to participate and work as hard as they can. The outcome of this decision depends on the employee's rational analysis of the situation and the rewards involved. Now managers also had to take into account workers' "minds." The effective manager set the premises for employee decisions and relied on their rationality to make choices that would be best for both themselves and the organization. For example, if a CEO of a company in which marketing was seen as the springboard into top management decided that more emphasis needed to be placed on operations, he or she would promote more rapidly from operations positions. Employees would then realize that operations was the area receiving top-level attention, and ambitious workers would elect to work in that area. Understanding and manipulating the decision premises are unobtrusive methods of organizational control. However, March and Simon also made the sobering observation that our decisions are limited by the number of variables our brains can handle, the time available, our reasoning powers, ( CHAPTER 2 THEORIES OF MANAGING PEOPLE ( ( and so on; they called this bounded rationality. It means that we often "satisfice" (choose a solution that is merely good enough) rather than maximize or optimize (search and consider all the available information) when we make decisions. Furthermore, they noted that routine work drives out nonroutine work, which explains why it seems so much harder to launch important new projects than it is to maintain routine tasks. For theorists of this school, managerial effectiveness consisted of a thorough understanding of decision making. Contingency Approach By the middle of the 20111 century, managers and scholars had identified many variables that were thought to be related to success, such as job specialization, managerial principles, worker attitudes and human relations, and rational decisions made by workers. In the 1960s, many scholars converged on the idea that there was no "one best way" to manage. Instead, they tried to identify which variables would be successful for particular situations. This is still one of the dominant perspectives in the field of organizational behavior and is referred to as the contingency approach; IO the gist of this approach is that effectiveness varies according to the particular situation. Good managers (and employees) analyze the situation and choose the most appropriate action. We know now that individuals, groups, cultural groups, occupational subgroups, industries, types of technology, managerial styles, organizations, and external environments can all vary enormously. As long as organizations fit their environment and as long as their various building blocks-their strategy, structure, systems, staff, style, skills, and superordinate overarching goals-fit together in a complementary fashion, very different types of organizations will still be effective. The particular building blocks in the previous sentence are known as the 7-S model, 11 which is discussed in greater detail in Chapter 21. Procter & Gamble (P&G) 12 is an example of a company that has good "fit." The company regularly appears on Fortune magazine's lists of Most Admired Global Companies, Most Admired American Companies, I 00 Best Companies to Work For, the Global Fortune I 00, and the American Fortune I 00. 13 Its management values about staffing are to (I) hire good people of high character, (2) treat them as individuals and develop their individual talents, and (3) provide a work environment that rewards individual achievement. The company is well known for its training programs and promotion from within. General managers are evaluated and rewarded for their success in terms of volume, profit, and people. P&G has developed systems (sometimes cumbersome) and skills (marketing, marketing research, and R&D) that reinforce its strategic goals. It has been very responsive to changing market conditions and demographics . Marketing strategies are customized for different ethnic groups, and it has made a major effort to integrate employees from diverse ethnic and cultural backgrounds. For example, the company has a reverse mentoring program that pairs junior female employees with a senior manager to help the mostly male higher-ups understand the issues women face. 14 P&G has also experimented with various structures to help it compete more effectively both domestically and globally. Its success is due, in large part, to its ability to keep the 7Ss in alignment and maintain the fit with its environment. Open Systems Theory According to open systems theory, which became popular due to the rapidly changing environment of the mid- I 960s, an effective manager understood the interdependence among different parts of systems and recognized that organizations are embedded within the larger environment. Open systems themy maintains that organizations and all the subdivisions within them take in resources and transform them into a service or product that is purchased or utilized by a larger system. 15 Dealing with external entities is a crucial role for many managers. In this view, organizational effectiveness is governed by three major factors: the individuals who make up the organization, the organization itself, and the environment in which the organization exists. Effective management of the interfaces between these factors-between the individual and the organization and between the organization and its environment-is central to organizational success. The relationship between the individual and the organization is often mediated or linked by a work group. Looking back on these theories of organization, one is reminded of the parable of the blind men who each touched a different part of the elephant and assumed that they understood the 37 38 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK entire animal. How is it that previous theorists only touched on one part of organizing? One answer lies in the bounded rationality of their social context: most popular theories reflect ideas whose time has come, along with the personal predispositions and biases of the theorists themselves. Another answer is the increasing popularity of the concept of "paradox" regarding the process of organizing. Previous theories emphasized only one side of the equation (change versus stability, production versus social needs, Theory X versus Theory Y, etc.) rather than the balancing act that managers actually perform between them . Competing Values Framework According to Robert Quinn, 16 four of the previously explained theories help us understand the paradoxical nature of management. "Master managers" know how to balance the competing values of the rational goal model (similar to Taylor's scientific management with extra emphasis on profit) with those of the human relations model, and the competing values of the internal process model (comparable to administrative theory) with the open systems model. Exhibit 2-1 summarizes the differences among these models . Both organizational success and managerial effectiveness are linked to the ability to balance wha t at first blush appear to be the competing values of models that face one another diagonally in Exhibit 2-2, the rational goal model with the human relations model and the internal process model with the open systems model. Many of us (including theorists) have mental maps that cause us to see these models as mutually exclusive. Yet productivity and profit cannot be achieved without attention to the human resources responsible for productivity, and growth cannot be sustained if it is not also tempered by a certain degree of stability. According to Quinn, none of these models is the one best way lo organize or manage; in fact, too much emphasis on any one model will lead lo failure . Too much of a good thing pushes the organization from wh a t he calls the positive zone into the negative zone as shown in Exhibit 2-2 . Overemphasis on productivity a nd lack of attention and sensitivity Lo human resources result in employee burnout and blind dogma-the oppressive sweatshop. In contrast, overemphasis on human resources and lack of attention to productivity result in extreme permissiveness, irrelevance, and inappropriate participation-the irresponsible country club. The other two poles are overemphasis on the external environment and change-the tumultuous anarchy-and excessive control and stability, which result in the frozen bureaucracy. 17 Rational Goal Internal Process Human Relations Open Systems Criteria of effectiveness Productivity, profit Stability, continuity Commitment, cohesion, morale Adaptability, external support Means-ends theory Clear direction leads to productive outcomes Routinization leads to stability Involvement results in commitment Continual adaptation and innovation lead to acquiring and maintaining external resources Emphasis Goal clarification, rational analysis, and action taking Defining responsibility, measurement, documentation Participation, conflict resolution, and consensus building Political adaptation, creative problem solving, innovation, change management Climate Rational economic: "the bottom line" Hierarchical Team oriented Innovative, flexible Role of manager Director and producer Monitor and coordinator Mentor and facilitator Innovator and broker EXHIBIT 2-1 Characteristics of the Four Management Models in the Competing Values Framework Adapted from R. E. Quinn, S. R. Faerman, M. P. Thompson, and M. R. McGrath , Beco111i11N a Master MwwNer: A Co111pete11cy Framework (New York: John Wiley & Sons, 1996). 10-11. Reprinted with permission of the publisher. ( CHAPTER 2 THEORIES OF MANAGING PEOPLE ( ~~~~ The Irresponsible Country Club , / / / / / I Extreme permissiveness, unproductive : Cl :u , I _./ / Premature '---,, responsiveness, "-,, disastrous ·,, experimentation ·,, •_g individualism~------- / -....._ Positive Zone The Tumultuous Anarchy "'-..~ ''··-.... I \ .. . I 1 \ Commitment, Innovation, . t / morale : adaptation, Political \ Inapp~op~1a e / _-------------._ change expediency, \ part1c1pali?n, I Human ,............-(\!> ~ .. unprincip_led \ u~prod_uct1ve; Development · ~~~,?~ • opportunism d1scuss1on . . . ,$') ·.. External Part1c1pat1on Cl~; , !t.\ support, openness, ~/ \~\ resource discussion( ; i I Negative Zone \ ' \ acquisition, y . 1 _A!'~t~y- _ _ _ _______ ( %,.\. \\ )"'} =r~~t~ __ _ • Unclear Values Indifference Information ~ · management, \ '::. \ documentation · ?<>/ ·, Procedural sterility, trivial . rigor · • Counteractive Values Hostility / / Productivi~, / ~ I 1· / Ci/ occomp 1s . ~/ ~ent, .o,;'. · o " ·· . _,- ,,,.~. ,..,o,· impact . · ~~----------~~~- ,· .. Stability, control, ·, continuity \ ..._____1____. .... Belligerence · Perpetual exertion, human exhaustion Direction, goal clarity, planning / "-._ I // Habitua~ ~-~,. . .- · --~ndiscerning ..• perpetuation, ..... ironbound ··,., tradition ·,-. The Frozen Bureaucracy '"---.. , .C' ".§ : .QJ1 ________ -------'. _________________~ 0::'.1 ···--....-....._ regulation, blind dogma ,/ I / The Oppressive Sweat Shop EXHIBIT 2-2 The Positive and Negative Zones of the Competing Values Framework Adapted from Robert E. Quinn. Beyond Rati(}/wl Mw1age111e111 (San Francisco: Jossey-Bass. 1988). 7. l IBM is an example of a company that found itself in the negative zone and later regained its balance. When Louis Gerstner took over as chairman in 1993, he identified IBM 's strengths as world-class technology, extraordinary people, and loya l customers. He identified IBM's weaknesses as excessive costs, a preoccupation with internal processes, and slowness ; 18 the company had losses of $18 billion in the previous three years. Most critics agree that IBM banked too heavily and too long on its mainframe business and market position. Thus, IBM overemphasized its internal processes at the expense of the open systems values; it should have focused more on customers and the market. Gerstner's lack of experience in the computer industry, except as a customer, turned out to be fin advantage. Since he thought like a customer, he encouraged IBM to develop data-processing solutions built around customer needs, not IBM's hardware. His mantra became "The customer first, IBM second, and the business unit third." This strategy, made possible by the depth of IBM skills and talent and the breadth of its businesses, was also a good fit with the business environment. As one analyst stated , "The trends are with IBM for the first time in 15 years. It's serviceled sales for them now, and that's appropriate because we are in a more solutions-oriented world." IBM was once again operating in the black (1998 pretax profits of $9.7 billion) and vieVv'.ed as a leader in its industry 19-IBM was back in the positive zone. Recently, IBM experienced some turbulent times, reporting disappointing revenue and profit growth. 20 However, its flexibility and adaptiveness are serving it well . The company is working to minimize or remove 39 40 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK regional bureaucracies and give local sales and marketing teams more freedom to make decisions and move quickly. It sold its PC business to Lenovo, the Chinese firm. At the same time, it is centralizing its core functions such as customer service and research into centers located around the globe. 21 These actions got IBM back on track, reporting higher profit and renewed demand for its technology services.22 All of us have theories about management, which then guide our behavior. For example, if Manager A holds the belief that people are motivated primarily by money, he will see increased salary as a solution to low productivity. He may then see his role as little more than laying out the work that needs to be done and seeing that employees are well paid for doing it. In conu·ast, if Manager B believes that people's attitudes affect their productivity, she will try to improve morale and see her managerial role as including mentoring and coaching. These examples indicate more than the ubiquitous presence of theories or models of behavior. They also show that our theories determine what we actually see in situations. Manager A may never consider the possibility that morale issues may be involved, while Manager B may overlook the role of pay equity. Thus, our mental maps determine what we perceive when we look at situations, what role we are likely to take as a result or our theories of management, and what action scripts we will follow. Look, for example, at the bottom of Exhibit 2-1 lo see the various roles that go along with each model in the competing values framework. The questions about your ideal manager in the class preparation section was assigned to help you clru·ify your personal theory about the role of effective managers . The purpose of the class activity is to identify still more of your own theories about managing and organizing. This is the first step in being able to evaluate when your theories are adequate and when you need to learn or borrow other theories that may be more appropriate to specific situations . Quinn argues that master managers are capable of utilizing competing theories, either sequentially or simultaneously, to master the paradoxes found in organizations.23 Streufert and Swezey claim that there is a correlation between reaching the executive suite and high "cognitive complexity." 24 Cognitive complexity refers to the extent to which people are multidimensional in their thinking and to the number of different relationships they can make between different dimensions or concepts. Managers with high cognitive complexity can perceive how various management theories apply to situations and can, therefore, choose those that make the most sense in a given situation. Such managers have a variety of maps in their cognitive bank. However, they must also have the behavioral flexibility to perform the various roles that follow from each theory of management. Recent research findings highlight the importance of understanding the many facets of effective management. In their book reporting the results of interviews with over eighty thousand managers, Marcus Buckingham and Curt Coffman suggest that great managers: (a) select for talent and not just for experience, intelligence, and determination; (b) when setting expectations, they define outcomes, not the steps to get to the goals; (c) when motivating someone, they focus on enhancing su·engths and not fixing weaknesses; and (d) when developing an employee, they find the right job that fits the individual, not just the next rung up the promotion ladder. 25 Another study of over 200 managers concluded that all engaged in the same activities: traditional management activities such as planning, budgeting, and decision-making; routine communication activities such as handling paperwork and passing on infonnation; human resource development activities including motivating, reinforcing, training, and developing employees; and networking activities such as socializing, dealing with outsiders, and handling organizational politics. 26 But what about managers who were more effective than other managers? How did they spend their time? Interestingly, the researchers found different answers to these questions depending on how they measured manager effectiveness. Managers who were promoted more rapidly and more often tended to spend about 48 percent of their time networking, 28 percent of their time communicating, 13 percent on u·aditional management activities, and 11 percent on human resource development. But these generally were not the highest performers! Managers whose units had high quality and quantity of performance and whose employees were satisfied and committed to the organization spent about 45 percent of their time on communication, 27 percent on ( CHAPTER 2 THEORIES OF MANAGING PEOPLE ( human resource development, 15 percent on traditional management, and 12 percent on networking. Managers who were effective on both measures (performance and promotions) comprised only about 10 percent of the research sample and had yet a different pattern of behavior. They tended to balance their time across all four activities. 27 In other words, managers who both obtained good performance results and were promoted tended to be good at all four activities. Thus, what constitutes an effective manager depends on the measure of effectiveness you use and the outcomes you want to achieve. Clearly then , to be effective, today's managers must possess the capacity to analyze complex situations accurately and Lo choose appropriate responses. For example, do the individuals you supervise (or your managers) have a Theory X or a Theory Y orientation? Does this vary according to the tasks they are performing? What's the best way Lo manage them ? Answering these questions successfully may mean introducing a different theory or going against one's natural way of doing things. Perhaps when life was less complex, it was sufficient for managers to espouse a "one best way" for managing and have a knee-jerk response to all situations. Today 's environment, however, is too turbulent for routine responses, and today 's global workforce is too diverse for just one theory of management. What managers need now is a broad behavioral repertoire and the analytical skill to know what behaviors are most appropriate for each situation . Effectiveness also requires the self-control and self-discipline Lo do something other than "what comes naturally" when one ' s natural style would not work. The key then is learning-learning as many models or theories as possible, learning what' s involved in different or changing situations, learning about different people and what makes them tick, and learning what works and what doesn ' t. ( The purpose of this exercise is to focus on the link between the environment and managerial skills and to recognize espoused theories. (Time allotted : approximately 75 minutes) STEP l . Divide into groups of five to seven participants, preferably with students you do not know. STEP 2. One of you (in each group) is about to receive the Manager of the Year Award. However, to maintain the suspense, you won't know who this lucky individual is until your instructor chooses a speaker at the end of the preparation period. Each of you should be prepared to give a live-minute acceptance speech that your entire group will help craft. The speech should come close to representing all your views, and you can also draw ideas from your class preparation assignment. The speech should include two subjects: a. A brief description of today 's global business environment. b. The qualities and skills essential to a manager's success in today 's global business world. (30 minutes) STEP 3. The instructor designates the award winners from each group who then present their speeches to the entire class. Other Students should listen for common themes about managerial success in the speeches. Write down each quality and skill mentioned by the speakers in the appropriate category in the following chart, which contains the quadrants of the competing values framework in Exhibits 2-1 and 2-2. For example, interpersonal communication would fit in the human relations model, while setting clear goals would fall into the rational goal model. Keep track (using hatch marks) of how many times each quality or skill is mentioned . We'll refer to these as competencies, a term that encompasses both qualities and skills. (Time allotted : depends on the number of student groups ; 5 minutes per group) 41 42 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK STEP 4. Discuss as a class the following questions: a. What were the common themes you heard in the speeches? b. What competencies did you place in the human relations quadrant? Open systems? Rational goal? Internal process? c. Which quadrant(s) had the most competencies? The most frequently mentioned competencies? Were there any quadrants that were not mentioned at all? What implications can we draw from this? d. Was anything mentioned that did not fit into the four quadrants? What can we learn from this? Analysis of the Speeches Write the qualities and skills that you hear in the speeches in the appropriate category and mark how many times each competency is mentioned. Human Relations Model Open Systems Model Internal Process Model Rational Goal Model Items that cannot be categorized: ~ ,§~ \\~~ n " _,,..~ :.::..,~ ~==-:>- 1. Taylor's scientific management emphasized the efficient division of labor into small, standardized jobs that were matched to the capabilities of trained workers who received wage incentives. 2. Administrative theory focused on understanding the basic tasks of management-planning, controlling, organizing, and commanding-and developed guidelines or principles for managing large organizations and bureaucracies effectively. CHAPTER 2 THEORIES OF MANAGING PEOPLE ( 3. The human relations school acknowledged the effect of the informal social system with its norms and individual attitudes and feelings on organizational functioning. This theory underlined the importance of employee morale and participation. 4. Theory X is based on the assumption that humans are inherently lazy, dislike responsibility, and prefer to be led. Theory Y is based on opposite perceptions of human nature-that humans are responsible, motivated to work hard and develop skills, and capable of selfdirection. 5 . The decision-making school described organizations as social systems based on individual decisions and contributed the idea of bounded rationality. Managers could control employee behavior by controlling the premises of decision making. 6. The contingency approach contends that there is no one best way to manage in every situation . Managers must find the appropriate method to match a given situation. 7. Successful organizations are characterized by good "fit'' among strategy, structure, systems, staff, style, skills, and superordinate goals (the 7-Ss). They must also fit their environment. 8. Open systems theory maintains that organizations and all the subdivisions within them take in resources and transform them into a service or product that is purchased or utilized by a larger system. All parts are interdependent, including the larger environment in which the organization is embedded. 9. In the competing values framework, master managers balance the paradoxes of four different models: rational goal model, internal process model, human relations model, and open systems model. Overemphasis on any one model will lead to failure. 10. The first step in managing the paradoxes of organizational effectiveness is understanding one's own theories of management. 11. Our theories or mental maps determine what we see when we look at situations and determine the roles we perform . 12. According to some researchers, great managers do the following: a. Select for talent and not just for experience, intelligence, and determination . b. When setting expectations, define outcomes, not the steps to get to the goals . c. When motivating someone, focus on strengths rather than fixing weaknesses. d. When developing an employee, find the right job that fits the individual , not just the next rung up the promotion ladder. 13. What constitutes an effective manager depends on the measure of effectiveness you use and the outcomes you want to achieve. Researchers found that all managers engage in four types of activities: (a) communication, (b) traditional management, (c) human resource development, and (d) networking . But, managers who were rapidly promoted spent a greater amount of time networking, whereas managers whose units had high quality and quantity of performance spent a greater amount of time communicating. Managers who were promoted and whose units had high performance balanced their time across all four activities. 14. Today's managers need to learn: a. How to analyze complex situations using a variety of models or theories. b. A broad repertoire of behaviors and knowledge about when to use them. c. How to adapt to rapidly changing environments. FOR EMPLOYEES l • People often look down on those whose theories are dissimilar to their own. Employees who are more expert in management thinking, however, are more likely to look for pros and cons in different theories. One way to develop yourself is to seek out and work with people who 43 44 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK have different beliefs. The payoff should be greater cognitive complexity and unders tanding of different mental maps. • It is important to identify what your theory of management is. This will affect how you perceive and react to your manager. • You also should identify your manager's theory of management. Understanding your manager's perspective on effectiveness will help you better understand his or her goals and interpret his or her actions more clearly. FOR MANAGERS • Expert managers are skilled at decoding situations and intuitively choosing the appropriate values and management theories to emphasize and to guide their actions. • They gather as many perspectives as possible about situations. Just as there is no one best way of managing, there is not only one way to see a situation. Managers who can count on others to help them "see" what 's going on and give their opinions on what could be done are fortunate. If, however, you give the impression that you don ' t like to hear a different perspective or receive advice, you won't-until it's too late to do much about it. • Expert managers take the time to figure out whether employees seem to hold theory X or theory Y assumptions and manage them accordingly. In general, however, they try to create an environment that encourages employees to take initiative and responsibility and that allows them to keep learning at work. They understand that the environment also influences these orientations. • The interdependence aspect of open systems theory means that changes in one part of the system will have repercussions elsewhere. Expert managers try to determine these consequences before making decisions and implementing changes. • Interdependence within a system also means th a t problems are often rooted in other parts of the system . Experts ta ke a systems approach when looking at problems. To develop this skill, you can ask yourself, "Have I thought about what 's taking place on the individual , group, organizational , and environmental levels with regard to this particular situation?" • Expert managers recognize that they operate within an organizational context and that different organizations value different managerial behavior. In general, however, try to balance your time across communication, traditional management, human resource development, and networking. • They also understand that management thought evolves over time as conditions change, and they make a concerted effort to stay current by reading or attending seminars. Managing today's knowledge workers requires a theory Y approach. Defining outcomes for qualified employees and giving them the latitude to decide how they accomplish goals allows them to develop their skills and also frees managers from having to supervise their every step. • Setting standards and measuring how well they are achieved provides clarity for the employee and generally leads to better performance. • Strategies for developing yourself as a manager: • Analyze yourself To better understand yourself and your mental maps, fill out assessment instruments like the one at the beginning of the chapter. Ask other people to evaluate you, since this will provide another, perhaps more accurate, perspective. If you are surprised by their evaluations, discuss any differences in perception with an honest coworker or friend. • Develop a change strategy Select a specific area for improvement and set a goal that is possible to achieve in a particular time frame. You may want to keep a journal to record your questions, lessons, and progress. It is often helpful to work with a partner who provides the social support that makes it easier to change behavior. • Learn about the skill you want to master Educate yourself by reading books or attending workshops. Identify a good role model whom you can observe or who is willing to explain how to develop this skill. Ask someone to coach you on this skill. ~- CHAPTER 2 THEORIES OF MANAGING PEOPLE ( • Practice the skill and request feedback Put yourself in situations that require the skill you want to develop so that you can get the practice you need . Ask others for feedback on what you are doing well and what still needs to be improved. FOR ORGANIZATIONAL ARCHITECTS • Organizational architects who are good al management usually make the effort to teach managers good theory and how to successfully apply theory-they value business education and ensure that employees have access to excellent training programs, and they disseminate knowledge . Rather than settling for quick fixes, they look for theories that fit their circumstances. • Expert organizational architects carefully design their reward system . What management style does it reward? Whal management behaviors are reinforced ? They analyze whether these are the appropriate ones for their organization at this point in time. • They also consider how they allocate organizational resources and ensure that they are aligned with strategic goals . They make sure resources go to the best people and units and to those with the most potential. • Finally, they pay close allention to how managers are developed. Many first-time managers are thrown into the role with little preparation or development. Instead , expert architects ensure that processes are in place to select managers for their managerial skills-not just because they excel al the jobs to be managed . As we all know, great sales representatives don't necessarily make great managers. Effective organizational designers ensure that managers have the opportunity to continue to develop and reline their skills. ( A. What is your own theory of management? You can describe it in words or draw it as a model. (Keep a copy for yourself so that you can modify it as the course proceeds. ) B. Based on your theory of management and today's environment, answer the following questions: 1. Whal blind spots could your theory lead you to have? 2. What personal values seem to underlie your theory; that is, "People, managers, or organi(what?)." zations should/should not 45 46 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK 3. What implicit assumptions, if any, are you making about human nature or human motivation? 4. What skills do you think are necessary to be a "master" manager? 5. Which of these do you already possess? 6. What skills would you like to work on during this course? 7. Write an action plan for learning these skills. How will you work on it? How will you know when your skills have improved? ( CHAPTER 2 THEORIES OF MANAGING PEOPLE ( ENDNOTES 1 C. M. Christensen and M. E. Raynor. "Why Hard-Nosed Executives Should Care about Management Theory." Harvard Business Review 81(9) (2003): 67. l.J R. Levering and M. Moskovitz. The 100 Best Companies to Work For. For/Une 151 (January 24, 2005 ): 61-90. 4 15 The original source of open systems theory came from the biologist von BertalanlTy. See L. von Bertalanffy. General Systems Theory: Fou11dmions, Develof1111en1. Af!f!lications (New York: Braziller, 1968). Subsequently. the theory was adapted for the field of management. 5 16 R. E. Quinn, Beyond Rational Management (San Francisco: Jossey-Bass. 1988). 2 Ibid.: 67. 3 Ibid.: 66-74. F. A. Taylor. The Principles of Scie111ific Management (New York : W.W. Norton. 1911). H. Fayol. General and Industrial Management . trans. C. Storrs (London: Sir Isaac Pitman, 1949). 6 M. Weber. The Theo1y of Social and Economic Organization. trans. T. Parsons (New York : Free Press, 1947). 17 Ibid . F. J. Roethlisberger and W. J. Dickson. Management and the Worker (Cambridge. MA: Harvard University Press. 1939). 18 D. Kirkpatrick. " IBM from Big Blue Dinosaur to E-Business Animal" For/l/ne 139 (April 26, 1999): 116-17: and " Blue ls the Colour," The Economist 347(8071) (June 6. 1998): 65-69. 8 19 7 D. M. McGregor. " The Human Side cf Enterprise.'' (New York : McGraw-Hill. 1960). For a contemporary view. see ''Survey: The X and Y Factors." The Economist 378(8461 ). January 21. 2006: 19. 9 J. March and H. Simon, Organizations (New York: John Wiley. 1958). For a famous example of research on contingency theory. see P. R. Lawrence and J. W. Lorsch. Organization and Environment: Managing Differentiation and Integration (Homewood. IL: Richard D. Irwin. 1969). IO ( 47 11 The 7S framework appears in R. Tanner Pascale and A.G . Athos. The Art of laf!anese Management (New York : Simon & Schuster. 1981) and in R. H. Waterman Jr.. T. J. Peters. and J. R. Phillips, ''Structure Is Not Organization." Business Horizans 23(3) ( 1980): 14-26. For a critique of the framework. see R. M. Kanter. Change Masters (New York: Simon & Schuster. 1985). 12 C. A. Bartlett and S. Ghoshal, Tra11snmional Management (Homewood. IL: Irwin. 1992). 13 http://money.cnn.com/lists/ index.html (Accessed June 25. 2006). Ibid. 20 S. Hamm. "Master Plan for A Big Blue World ." Business Week Online. www.businessweek.com/technology/content/ may2005/tc20050523_4693_tc024.htm (accessed May 23. 2005). 21 Ibid. 22 C. Forelle. " IBM 's Earning Hints at Recovery." Wall Street Journal. July 19, 2005, p. A3. 2 ·1 Quinn, Beyond Rational Management. 2.i S. Streufert and R. W. Swezey, Complexity, Managers, and Organizations (Orlando. FL: Academic Press. 1986). 25 M. Buckingham and C. Coffman . First, Break All the Rules: What the World's Greatest Managers Do Differently (New York: Simon and Schuster. 1999). 26 F. Luthans. R. M. Hodgetts. and S. A. Rosenkrantz. Real Managers (Cambridge, MA: Ballinger Publishing Company. 1988). 27 Ibid. ( INDIVIDUAL AND ORGANIZATIONAL LEARNING \)f3J ECnV l!$ By the end of this chapter, you should be able to: A. Describe the model of adult learning . B. Identify individual learning styles and their characteristics . C. Distinguish between adaptive and generative learning. D. Describe the characteristics of a learning organization. Few people quanel with the notion that companies must learn to invest in and manage knowledge if they hope to compete in an economy where, more than ever, knowledge is what we buy and sell. But how, they wonder, does one make the case for managing intellectual capital to CEOs and CFOs? And where do we start? The two questions are cousins, since the best way to build support for any management effort is to start where you'll get early results . Mind you , the forgotten key to succeeding in management is not to stop there ; quitting too soon condemns you to the hummingbird style of management, forever flitting and sipping from one blooming idea to another. But you've got to start somewhere, and here's a way to figure out where: a list of nine symptoms of a "knowledge problem," something wrong with how your company manages its brainpower. The list comes from David H. Smith, head of knowledge development for Unilever, the giant ( 1996 sales: $52 billion) maker of ice cream, soaps and detergents, frozen foods , and personal products. Smith, a witty Englishman who works in the Netherlands, has a background in both information technology and business. Nine months ago he was given the task of "helping Unilever act more intelligently"-that is, learn faster and leverage what it knows. You can reconstruct the conversation, since you've had the same one: "The solution to our problem isn't to work harder. We've got to learn to work smarter . ..." That, as Smith says, "is obviously true but also extremely trite." Besides, when your boss says, "Work smarter, Charlie," how, exactly, are you supposed to do that come Monday? 48 CHAPTER 3 ( ( l INDIVIDUAL AND ORGANIZATIONAL LEARNING Like Lyme disease, knowledge problems have symptoms that sometimes mimic other problems, more benign or even more malign. But each of the following, says Smith, is a symptom that suggests that you don ' t manage knowledge well: People aren't finding it, moving it around, keeping it refreshed and up to date , sharing it, or using it. The list is Smith's, the bells and whistles mine. • You repeat mistakes "Your best teacher is your last mistake," Ralph Nader once told me. He, of course, has made a career out of publicizing companies that display this knowledge problem . It's rampant. Negligence lawyers don't wear Gucci loafers because companies make mistakes ; they wear them because companies make the same mistake twice. The nature of icebergs being what it is, for every million-dollar lawsuit there must be tens of millions lost or wasted from repeated mistakes that are dumb but not tortious (actionable). Why does it happen? Fear, I'd guess, is the No. I reason: fear of being embarrassed, chewed out , or worse. Many people and companies are so busy trying to hide boners (from the boss, from stock analysts, from customers and competitors) that they tuck away the learning along with the evidence. You don ' t, obviously, want to encourage goofs just to learn from them. But the best way to avoid repeated errors is to study failure as assiduously as success. The history of medicine shows that you can learn as much from autopsies as you can from cures. • You duplicate work "Reinventing the wheel " is the inevitable phrase, and most companies spend so much time doing it you would think they were suppliers to Schwinn. A classic example: You inspect the goods before you ship them, and your customer inspects them again after they arrive . Worse, you do the same thing in-house. Usually the underlying cause is a knowledge problem: Customer and supplier either don't know what each expects of the other, or they don't trust each other because they haven't shared processes or results. People fail to copy success for the same reasons that they succeed in copying mistakes: They're afraid or embarrassed to ask. Sometimes the problem is in systems and structures: They don't know where to look or looking takes too much time or they have no place to store corporate memory. Sometimes the problem is what one might call an overdeveloped engineer's mind: I know Eddie already did this, but I can do it better. • You have poor customer relations If you 're not selling schlock, why does a customer get peevish? Probably for one of three reasons, all knowledge problems. First, communication at the point of sale: Either he didn ' t understand what you were selling or you didn ' t understand what she was buying. Second, service: If I get the runaround when I have a problem, chances are the people who answer your 800 number are little more than switchboard operators who don ' t know what they should. The third reason is subtler and more interesting. Knowledge work tends to be custom work, or at least customized. That changes the nature of the transaction . You don ' t sell janitorial services the same way you sell mops. Too often salespeople are in a hurry to hear "yes" so they can write up the order. (Too often their incentives encourage that practice.) Result: You talked about the sale but not the deal. • Good ideas don't transfer between departments, units, or countries This is the most common knowledge problem of all: How do we get people to share ideas rather than hoard them, to accept ideas rather than reject them? There's no easy answer. Says Hewlett-Packard 's former CEO, Lewis Platt: "Knowledge transfer is a problem that yields to ten different initiatives, not one." Here's a starter kit: Set an example: Great bosses love teaching; great teachers produce great students. Once, interviewing Allied Signal former CEO Larry Bossidy, I confessed not knowing what working capital was. Bossidy positively lit up, grabbed a sheet of paper, scooted around the table, and taught me; his pleasure in teaching turned an interview into a sharing of minds. Nudge: Nothing will get the troops to use the new database faster than a leader who asks at a staff meeting, ''I'd like to hear everyone's thoughts on Kay's posting about the situation in Germany. Bill, let's start with you: What do you think we should do?" 49 50 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Create incentives: Says Robert Buckman, CEO of specialty-chemical maker Buckman Laboratories: "The most powerful incentives you have are salaries and promotions." Buckman makes sure-and makes it known-that he hands them out based substantially on how well people share and bonvw ideas. Benchmark: Be sure Phoenix knows it has twice as much bad debt as Dayton-and reward both if they close the gap. Make it fun: When you return from a convention, which do you write up first, your expense account or your trip report? Which contains more creative thinking? Which is read more attentively? One group at Monsanto makes knowledge sharing fun by arming people with snazzy new Kodak digital cameras when they go on trips; when they get back, they show their pictures at the next staff meeting. • You're competing on price No company wants to find itself in a commodity business. What makes the difference? Why could an executive in General Electric 's lighting business-light bulbs, for Pete 's sake-tell me, in a mock-serious tone, "Cutting prices is not a core value of the General Electric Company," while some companies making computers--computers, for Pete 's sake-are forced to do just that? The answer is almost always knowledge, or the lack of it. Whatever you sell, you can get out of the price game if you and your customer ride the learning curve together. Everything you learn about a customer-from how he likes pallets stacked to what his plans are-is an opportunity to make it harder for competitors to horn in. The result: margin. • You can't compete with market leaders Sometimes the big guys win because they've got something you ain ' t got , like prime-rate loans or Super Bowl-s ized ad budgets. But don ' t blame your problems on scale until you have explored this question: What do they know that we don't know? Toyota, Wal-Mart, and Southwest Airlines are just three examples of formerly small companies that outwitted bigger competitors. • You're dependent on key individuals Remember the old Allan Sherman song? ( Oh, salesmen come and salesmen go And my best one is gone I know And if he don 't come back to me /'II have to close the facto1y ... Nothing's more dangerous than depending on a few key people. Usually this signals too little teamwork or an absence of ways to encourage star perfonners to reveal the secrets of their success. Note, though : The fault may not lie in your stars. Sometimes people have greatness thrust upon them because others are unwilling to achieve it themselves . HP's Lew Platt says, "You've got a knowledge problem when decisions are made too high in the organization." When things come to Platt's desk that shouldn ' t, he takes it as a sign that people lack knowledge that would let them think for themselves . • You're slow to launch new products or enter new markets It's obvious that being slow to market is a knowledge problem. But diagnosing its cause can be tricky; as with referred pain, the source may be far from the symptom. It could be a weak lab, a sludge-slowed commercialization process, a rigid budget bureaucracy, failure of competitor and market intelligence, or something else. • You don't know how to price for service Do you build the cost of service into your price? Sell a service contract? Bill by the hour, the day, the job? Let someone in the distribution channel handle it? Can you clearly explain why you do what you do, or are you just following industry practice? Of all the symptoms on Smith's list, this intrigues me most because the underlying knowledge problem is least self-evident. Here it is: If you don ' t know how to price for service or why to charge one way versus another, it's a sign that you don ' t fully understand what your customers do with whatever you sell them. Some customers just buy on price. More often, however, they are buying the solution to a problem. They don't want drills; they want holes. One adhesive company, Smith says, knew a way to help customers speed up assembly lines with the added benefit (for customers) of using less glue. But its sales force had no idea how to \, CHAPTER 3 ( INDIVIDUAL AND ORGANIZATIONAL LEARNING value and price this knowledge; worse, the reps were paid by the pound . If you know what customers are really paying for, you 'd know better who should pay what. Smith's list is diagnostic, not prescriptive. But each item on it is a knowledge problem with real business consequences that even a skeptical boss will want to fix. It's a start. Sou rce: Thomas A. Ste wart, "Why Dumb Things Happen to Smart Companies." For11111e 135( 12) (June 23, 1997), 159-60. Reprinted with permission of the publisher. A. Read "Why Dumb Things Happen to Smart Companies." B. Answer the following questions concerning a real learning situation that you have recently faced or are currently facing (e .g. , using a new computer program , playing an instrument, understanding the income tax laws, mastering a new management techn ique , giving a speech, playing a new sport). 1. Describe what you were (or are) trying to learn. 2. How did you go about learning to do it? What sequence of steps did you follow? 3. What was the outcome? 4. What was the best group learning experience you ever had ? What was good about it? 5. Whal was your worst group learning experience? Whal made it that way? 6. In your opinion, what conditions promote adult learning ? C. Complete and score the Learning Style Inventory that follows . l D. After reading the chapter, what cues are you going lo look for that will help you diagnose individual learning styles and organizational learning issues? 51 52 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK The Learning Style Inventory (LSI)* The Learning Style Inventory describes the way you learn and how you deal with ideas and day-to-day situations in your life. Below are 12 sentences with a choice of endings. Rank the endings for each sentence according to how well you think each one fits with how you would go about learn ing something. Try lo recall some recent situations where you had to learn something new, perhaps in your job or al school. Then, using the spaces provided, ran k a "4" for the sentence ending that describes how you learn best, down lo a "l " for the sentence ending that seems least like the way you learn . Be sure to rank all the endings for each sentence unit, using each number only once . Please do not allot the same number to two items. Example of completed sentence set: When I learn : l I am happy. 3 I am fast. 2 I am logical. 4 I am careful. Remember: 4 = mos/ like you 3 = second most like you A l. When I learn : 2. I learn best when : - - 3. When I am I like to deal with my feeling s. I listen and watch carefully. 4 . I learn by: - 5. When 6. When I am - 7. I learn best from : feeling . I am an observing person . - - 9 . I learn best when: - I rely on my observations. 10. When I am learning : - I am a reserved person. - - I get involved . - D I like to be doing things . I trust my hunches and feeling s. doing . - - I am an active person . personal relationships . I like ideas and theories . I rely on my feelings . I am an accepting person . - - watching . - - thinking . I am an intuitive person . - I am a log ical person . - a chance to try out and practice. I take my time before acting . - I feel personally involved in things. I can try things out for myself. - I rely on my ideas. I am a responsible person . - I am a rational person . - I like lo be active. I evaluate things . I am careful. - I have strong feel ings and reactions. - - - I work hard to get things done. I like to try things out. rational theories. - I like lo watch and listen . I like to analyze things, break them down into their parts. I am receptive and open-minded . - I am quiet and reserved . I like to observe. - = leas/ like you - I analyze ideas. - - I look al all sides of issues . - I learn : 12. I learn best when: I rely on logical thinking . - I am responsible about things . observation . I Ii ke to see resu Its from my work. 11. When I learn : - I like lo think about ideas. - - 8. When l c - - learning : - I am open lo new experiences. I learn : = third mos/ like you B I lend lo reason things out. learning : 2 I am practical. - Source: Reprinted fro m The Koth Leami11Ji Style ln\'e/l/ory, Ve1:,im13 ( 1999) by permi ssion of the Hay Group. 11 6 Huntington Avenue, Boston. MA 02 11 6. No part of the LS I instrument or in fo rmati on may be reprod uced or transmitted in any form or by any means. wi thout pem1ission in writing from the Hay Group. ·~ The /..ca ming Style /111•e111my is based on several tested theories of thinking and creati vity. TI1e ideas behind assimilation and accommodation origi nate in Jean Piaget's defi nition or inte lligence as the balance between the process of adapting concepts to fit the external world (accommodation) and the process or fitti ng observations of the world into existi ng concepts (assimilation ). Convergence and divergence are the two essential creative processes identified by J. P. Guilford's structure-ot~i ntellec t model. CHAPTER 3 ( INDIVIDUAL AND ORGANIZATIONAL LEARNING Scoring the LSI: Enter your scores for each sentence completion in the correct space . For example, for item # l, if you ranked the first sentence completion option ("I like to deal with my feelings") as a 4, write a 4 in the first space above l A. Next write the number you gave to 2C. Do that for the rest of your responses. Then add up the scores in each row to obtain your total for each dimension . Read The Knowledge Base for information on how to interpret your scores. + + 3C + 3B 5D + + + + + 8A 12C RO Total 12A AC Total 12D AE Total + + lOC 9C CE Total + 1 lC lOD + + 7D 6B + + 12B + 1 lB lOA 9D + llA + + 9A 8B + lOB 9B BC 7C + + 4B + + 6D + + 8D 7A + 5C + + 2D + 6A + + 7B + 5B 4D + 6C + 4C 3A + 5A + + 2B + 4A + + 2A 1B lC 3D 2C 1D + + + lA 1 lD Plot your score for each learning mode on the graph below. Then connect these points to form a kite-like figure . To compare your score with others, look at the percentile rings . For example, if you had a score of 27 on Concrete Experience (CE), your score would be higher than 60% of those who scored at this level in the validation studies of this instrument. Concrete Experience (CE) (" feeling ") 100% Active Experimentation JAE) (" Doing ") JS " " 11 40 J9 " 7 J6 Js JJ 27 40% 60% 80% "29 Jo J1" "JnsJ7'o,. 24 25 26 17 28 29 JO JI 100% J2 J3 34 35 36 37 40 46 Abstract Conceptualization (AC) ("Thinking ") l 53 EXHIBIT 3-1 The Cycle of Learning So urce: Reprinted from Tlte Kolb Leami11g Style !nve/l/orr. Version 3 (1999) by pe rmiss ion of the Hay Group. 116 Huntington Avenue. Bosto n, MA 02 t 16. No part of the LSI instrument o r information may be reproduced or tran smitted in any form or by any means. w ithout permissi o n in writin g fro m the Hay Group. Reflective Observation (RO) (" Watching ") 54 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK While your kite shape explains your relative preferences for the four modes or phases of the learning cycle, you r combined scores will explain which of the four dominant learning styles best describes you . Take your scores for the four learning modes, AC, CE, AE, and RO, listed on the previous page, and subtract as follows to get your two combination scores : D D D AC CE AC-CE D D D AE RO AE-RO Next, plot these scores on the grid below to locate your data point. The closer your data point is to the center of the grid, the more balanced your learning style . If the data point falls near any of the far corners of the grid, you tend to rely heavily on that particular learning style. You can compare your score to those of other people using the percentile marks. Please read the descriptions of these styles and their strengths in the following pages. Example: if your AC-CE score is -2 and your AE-RO score is + 12, your style falls into the Accommodating quadrant, as shown below. AC- CE Accommodating ... -3 • · - - - - - - - - -2 : -I -27 Percentiles - 15 - 14 - 13 -1 2 -11 -10 10 I I -9 -8 -7 I 14 13 I I I 1 12 20 11 10 9 8 7 -<> Accommodating 6 Diverging -5 ... AE-RO-- -3 30 -2 -1 0 I 40 28 2 1 20 19 18 17 16 15 14 13 12 1110 9 8 7 6 5 4 3 2 I 0- 1- 2-J....S-5-6 - 7--8 -1 0 - 13 -1 5 - 21 AE- RQ-- 50 -+1++H++-+-+-+-++-+--l-lf-l--+-+-+-+-._,1-i1t+-+-+-+-+-+-++++-t-1-+-1-+-++-+-1-+-1-11111H 60 9 10 II 70 12 Converging Assimilating 13 14 15 16 17 BO IB 19 20 21 22 23 90 29 100 100 90 BO 70 60 50 40 t AC-CE EXHIBIT 3-2 Learning Style Type Grid Source: Reprinted from Tile Kolb Leu m i11~ Style !11ve111ory. Version 3 ( 1999) by permission of the Hay Group, 11 6 Huntington Avenue, Boston. M A 02116. No part of the LSI instrument or information may be reproduced or transmitted in any form or by any means, without permission in writing from the Hay Group. 30 20 10 ( CHAPTER 3 ( INDIVIDUAL AND ORGANIZATIONAL LEARNING Diverging Combines learning mode of Concrete Experience and Reflective Observation People with this learning style are best al viewing concrete situations from many different points of view. Their approach lo situations is to observe rather than take action. If this is your style, you may enjoy situations that call for generating a wide range of ideas, such as brainstorming sessions. You probably have broad cultural interests and like to gather information . This imaginative ability and sensitivity to feelings is needed for effectiveness in arts, entertainment, and service careers. In formal learning situations, you may prefer working in groups to gather information, listening with an open mind, and receiving personalized feedback. --.., Assimilating Combines learning mode of Reflective Observation and Abstract Conceptualization People with this learning style are best at understanding a wide range of information and putting it into concise, logical form. If this is your learning style, you probably are less focused on people and more interested in abstract ideas and concepts. Generally, people with this learning style find it more important that a theory have logical soundness than practical value. This learning style is important for effectiveness in information and science careers . In formal learning situations, you may prefer lectures, readings, exploring analytical models, and having time to think things through. ( __ _. Converging Combines learning mode of Abstract Conceptualization and Active Experimentation People with this learning style are best at finding practical uses for ideas and theories. If this is your preferred learning style, you have the ability lo solve problems and make decisions based on finding solutions to questions or problems. You would rather deal with technical tasks and problems than with social and interpersonal issues. These learning skills are important for effectiveness in specialist and technology careers. In formal learning situations, you may prefer to experiment with new ideas, simulations, laboratory assignments, and practical applications. I ._ _I Accommodating Combines learning mode of Active Experimentation and Concrete Experience People with this learning style have the ability to learn primarily from "hands-on" experience. If this is your style, you probably enjoy carrying out plans and involving yourself in new and challenging experiences. Your tendency may be to act on "gut" feelings rather than on logical analysis. In solving problems, you may rely more heavily on people for information than on your own technical analysis. This learning style is important for effectiveness in action-oriented careers such as marketing or sales. In formal learning situations, you may prefer to work with others to get assignments done, to set goals, to do field work, and to test out different approaches lo completing a project. EXHIBIT 3-3 Learning Style Types So111re: Reprinted from 711e Kolb Leaming Style l111•e11torr. Venio11 3 ( 1999) by permission of the Hay Group. 116 Huntington Avenue. Boston. MA 02116. No pall of the LSI instrument or information may be reproduced or transmilled in any form or by any means. without permission in writing from the Hay Group . t-- - 55 56 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK ( Concrete Experience Accommodating Diverging Getting things done Leading Taking risks Initiating Being adaptable and practical Being imaginative Understanding people Recognizing problems Brainstorming Being open-minded Converging Assimilating Solving problems Making decisions Reasoning deductively Defining problems Being logical Planning Creating models Defining problems Developing theories Being patient EXHIBIT 3-4 Basic Strengths of Each Learning Style Source: Reprinted from Tile Kolb Leuming Style Inventory, Version 3 (1999) by permission of the Hay Group, 116 Huntington Avenue, Boston. MA 02116. No part of the LSI instrument or information may be reproduced or transmitted in any form or by any means, without permission in writing from the Hay Group. Do not be puffed up because of your knowledge nor overco11fide11t because you are a Learned person. Take counsel with the ignorant as well as with the wise, for the Limits of proficiency cannot be reached, and no person is ever fully skilled. Egyptian Magistrate Ptah-Hotep to his son, c. 2400 B.C. Learning became a business issue in the past two decades once companies realized its importance Lo survival. "We understand that the only competitive advantage the company of the future will have is its managers' ability to learn faster than their competitors. So the companies that succeed will be those that continually nudge their managers towards revising their views of the world ." 1 This was one of the lessons Arie de Geus, senior planner, learned from Shell's efforts to analyze long-term corporate survival. Many companies, such as Asea Brown Boveri (ABB), 3M, Ford Motor, GE, FedEx, Motorola, and Johnsonville Foods, have worked hard to transform their companies into learning organizations. A learning organization is an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. ~- CHAPTER 3 ( ( Learning organizations succeed, in part , when individuals make explicit their knowledge and contribute it to the institutional collection of mental models and lessons . The structure and culture of the organization will then determine how quickly individual learning spreads, as seen in the following analogy from nature. Titmice travel in flocks and intermingle extensively; in contrast, robins have carefully defined boundaries and work hard and belligerently al keeping other robins out of their territory. When titmice learned Lo pierce the aluminum seals of the milk bottles delivered Lo U.K . doorsteps, that knowledge quickly spread throughout the species. Although individual robins may have learned this trick, their knowledge will never be disseminated to the species as a whole because they lack the capacity for institutional learning. 2 Much like territorial managers and departments, the robins' competitive relationships and their focus on turf result in hoarding, rather than sharing, knowledge . Both companies and employees are being pressured to increase their learning capacity by the "white water" nature of today's business environment. According Lo Peter Vail, who coined this metaphor, managers in the past could paddle their canoes wherever they wanted on calm, still lakes. Now they are forced to learn to deal with a seemingly endless run of"white water," the rock-strewn , turbulent, fast-moving water in which canoeists struggle to stay afloat and unharmed. White water is exhilarating, but only if you possess the necessary skills. In a tumultuous environment in which people change jobs and even professions, no course or program of education can provide students with all the skills and knowledge they will need for the rest of their career. Our best response is to teach you how to learn so you can become a lifelong learner. The Workbook is designed Lo create a learning environment that responds to the unique needs of adult learners. First, it is based on a psychological contract of recipmcity, a basic building block of human interaction . It is well documented that relationships that are based on a mutual and equal balance of giving and getting thrive and grow; those based on unequal exchange very quickly decay. Academic learning is often conceived as a process of getting rather than giving. Teachers give and students get. Yet in adult learning both giving and getting are critical. In getting, there is the opportunity to incorporate new ideas and perspectives. In giving, there is the opportunity to integrate and apply these new perspectives and to practice their use. A second characteristic of an adult learning environment is that it is experience based. Ideally the motivation for learning comes not from the instructor's dispensation of rewards and grades but from problems and opportunities arising from the learner's own life experience. Their experience shows adults what they need to learn and also allows them to contribute Lo the learning of others. Third, the adult learning environment emphasizes personal application. Since adults' learning needs arise from their own experience, the main goal of learning is Lo apply new knowledge, skills, and attitudes to the solution of the individual's practical problems. Fourth , the learning environment is individualized and self-directed. In addition to unique experiences, each person also brings different learning goals and styles. This means that learning environments have to be flexible and attempt to meet the needs of different students. Learners, however, must also be willing to take responsibility for achieving their learning objectives and alert the group or instructor if problems arise. A final characteristic of an adult learning environment is that it integrates learning and living. There are two goals in the learning process. One is to learn the specifics of a particular subject matter. The other is to learn about one 's own strengths and weaknesses as a learner (i.e., learning how Lo learn from experience). This understanding helps in applying what has been learned and provides a framework for continued learning on the job. A l INDIVIDUAL AND ORGANIZATIONAL LEARNING MODEL OF THE LEARNING PROCESS Adults are often motivated to learn by a problem . A manager who has employees who habitually come late to work starts to chew on the problem. In addition to her individual reflections, she may consult management books or other managers who have solved this problem. Eventually, she will develop a mental model that explains her theory of tardiness : Employees come late to work because (e.g., there are no negative consequences for doing so, employees rely 57 58 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK on public transportation that is undependable, late employees are not committed to the organization, etc.). Based on this model, she will lake action to solve the problem (e.g., negative sanetions, company transportation, beginning the disciplinary process for some employees). If her interventions are successful, she will have gained knowledge about workplace tardiness. Knowledge is defined as the condition of knowing something through experience. If, on the other hand, employees still come late, this becomes another concrete experience that sets the learning cycle in motion all over again. By examining the learning process we can come closer to understanding how it is that people generate from their experience the concepts, rules, and principles that guide their behavior in new situations, and how they modify these concepts to improve their effectiveness. This process is both active and passive, both concrete and abstract. As shown in Exhibit 3-5, it can be conceived of as a four-stage cycle: ( 1) concrete experience is followed by (2) observation and reflection, which lead to (3) the formation of abstract concepts and generalizations, which lead to (4) hypotheses to be tested in future action, which in turn lead to new experiences. There are several key observations about Kolb's model of the learning process. 3 First, this learning cycle is continuously recurring. We continuously test our concepts in experience and modify them as a result of our observation of the experience. Second, the direction that learning takes is governed by one's felt needs and goals. We seek experiences that are related to our goals, interpret them in the light of our goals, and form concepts and test implications of these concepts that are relevant lo these felt needs and goals. The implication of this fact is that the process of learning is erratic and inefficient when personal objectives are not clear. Third, since the learning process is directed by individual needs and goals, learning styles become highly individual in both direction and process. For example, a mathematician may come to place great emphasis on abstract concepts, whereas a poet may value concrete experience more highly. A manager may be primarily concerned with active application of concepts, whereas a naturalist may develop exceptional observational skills. Each of us develops a learning style that has both weak and strong points. We may jump into experiences but fail to observe the lessons to be derived from these experiences; we may form concepts but fail to test their validity. In some areas, our objectives and needs may be clear guides to learning; in others, we wander aimlessly. Several factors shape learning style: personality type, early education specialization, professional career, current job role and tasks. 4 Carl Jung's description of preferred ways of dealing with the world , partly measured by the Myers-Briggs Type Indicator (MBTI), explained in Chapter 4, seem to correlate with Kolb 's learning styles. The way that students are taught or the areas in which they specialize creates a disposition to emphasize certain learning styles. Undergraduate majors in history, political science, English, psychology, and the arts tend to have a diverger learning style, while physical sciences and engineering majors tend to be convergers. Many undergraduates majoring in business and management tend to be accommodators, whereas those who specialize in economics, mathematics, sociology, and chemistry are more likely to be assimilators. The habits and approaches inculcated during career training and socialization also shape learning styles. People who work in the social services, the arts, and communications tend I Concrete experiences Testing implications of concepts in new situations Formation of abstract concepts and generalizations EXHIBIT 3-5 The Learning Process \ Observation and reflections ( CHAPTER 3 ( INDIVIDUAL AND ORGANIZATIONAL LEARNING to be divergers, while the science, information, and research professions have more members who are assimilators. Technology, economics, and environmental science professions tend to be peopled by convergers, and accommodators cluster in organizational careers (public finance, educational administration, management) and business. In the same vein, job demands and tasks also influence the development of learning styles. INTERPRETING YOUR SCORES ON THE LEARNING STYLE INVENTORY ( l The Learning Style Inventory (LSl) 5 is a simple self-description test, based on Kolb's experiential learning theory, that is designed to measure your strengths and weaknesses as a learner in the four stages of the learning process. Effective learners rely on four different learning modes: concrete experience (CE), reflective observation (RO), abstract conceptualization (AC), and active experimentation (AE) . That is , they must be able to involve themselves fully and openly, and without bias in new experiences (CE); they must be able to reflect on and observe these experiences from many perspectives (RO); they must be able to create concepts that integrate their observations into logically sound theories (AC); and they must be able to use these theories to make decisions and solve problems (AE). The LSI measures your relative emphasis on the four learning modes by asking you to rank order a series of phrases that describe these different abilities. For example, one set of four words is feeling (CE), watching (RO), thinking (AC), and doing (AE) . Combination scores indicate the extent to which you emphasize abstractness over concreteness (AC-CE) and the extent to which you emphasize active experimentation over reflection (AE-RO). One way to better understand the meaning of your scores on the LSI is to compare them with the scores of others. The Cycle of Learning, Exhibit 3-1 on page 53, gives norms on the four basic scales (CE, RO, AC, AE) for 1,933 adults ranging from 18 to 60 years of age. About twothirds of the group are men , and the group as a whole is highly educated (two-thirds have college degrees or higher). A wide range of occupations and educational backgrounds is represented, including teachers, counselors, engineers, salespersons, managers, doctors, and lawyers. The raw scores for each of the four basic scales are listed on the crossed lines of the target. By circling your raw scores on the four scales and connecting them with straight lines you can create a graphic representation of your learning style profile. The concentric circles on the target represent percentile scores for the normative group. For example, if your raw score on abstract conceptualization was 31, you scored higher on this scale than 60 percent of the people in the normative group. If your CE score was -31 , you scored higher than 80 percent of the normative group. Therefore, in comparison with the normative group, the shape of your profile indicates which of the four basic modes you tend to emphasize and which are less emphasized. No individual mode is better or worse than any other. Even a totally balanced profile is not necessarily best. The key to effective learning is being competent in each mode when it is appropriate. A high score on one mode may mean a tendency to overemphasize that aspect of the learning process at the expense of others. A low score on a mode may indicate a tendency to avoid that aspect of the learning process. The LSI does not measure your learning style with JOO percent accuracy. Rather, it is simply an indication of how you see yourself as a learner. You will need data from other sources if you wish to pinpoint your learning style more exactly (e.g., how you make decisions on the job, how others see you learn, and what kinds of problems you solve best). Be aware of stereotyping yourself and others with your LSI scores. Your scores indicate which learning modes you emphasize in general. They may change from time to time and situation to situation. Think back to the learning experience you wrote about in the class preparation. Which of the following modes best describes your approach? An orientation toward concrete experience focuses on being involved in experiences and dealing with immediate human situations in a personal way. It emphasizes the perception of feeling, focusing on the uniqueness and complexity of present reality as opposed to theories and generalizations-an intuitive, "artistic" approach as opposed to a systematic, scientific approach to problems. People with a concrete experience orientation enjoy and are good at relating to 59 60 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK others. They are often skilled intuitive decision makers and function well in unstructured situations . People with this orientation value relating to people, being involved in real situations, and an open-minded approach to life. An orientation toward reflective observation focuses on understanding the meaning of ideas and situations by carefully observing and impartially describing them. It emphasizes understanding as opposed to practical application, a concern with what is true or how things happen as opposed Lo what is practical-an emphasis on reflection as opposed to action. People with a reflective orientation enjoy thinking about the meaning of situations and ideas and are good at seeing their implications. They are good at looking at things from different perspectives and at appreciating different points of view. They like to rely on their own thoughts and feelings to form opinions. People with this orientation value patience, impartiality, and considered, thoughtful judgment. An orientation toward abstract conceptualization focuses on using logic, ideas, and concepts. It emphasizes thinking as opposed to feeling, a concern with building general theories as opposed to understanding intuitively unique, specific areas-a scientific rather than an artistic approach to problems. A person with an abstract conceptual orientation enjoys and is good at systematic planning, manipulation of abstract symbols, and quantitative analysis. People with this orientation value precision, the rigor and discipline of analyzing ideas , and the aesthetic quality of a neat, conceptual system. An orientation toward active experimentation focuses on actively influencing people and changing situations. It emphasizes practical applications as opposed Lo reflective understanding, a pragmatic concern with what works as opposed to what is absolute truth-an emphasis on doing as opposed to observing. People with an active experimentation orientation enjoy and are good at getting things accomplished. They are willing Lo take some risk to achieve their objectives. They also value having an impact and influence on the environment around them and like to see results. / ( IDENTIFYING YOUR LEARNING STYLE TYPE It is unlikely that your learning style will be described accurately by just one of the four preceding paragraphs. This is because each person's learning style is a combination of the four basic learning modes. It is, therefore, useful to describe your learning style by a single data point that combines your scores on the four basic modes. This is accomplished by using the two combination scores , AC-CE and AE-RO. These scales indicate the degree to which you emphasize abstractness over concreteness and action over reflection, respectively. The Learning Style Type Grid, Exhibit 3-2 on page 54, shows the raw scores for these two scales on the crossed lines (AC-CE on the vertical and AE-RO on the horizontal) and percentile scores based on the normative group on the sides. By marking your raw scores on the two lines and plotting their point of intersection, you can find which of the four learning style quadrants you occupy. These four quadrants, labeled accommodator, diverger, converger, and assimilator, represent the four dominant learning styles . If your AC-CE score was -6 and your AE-RO score was 15, you would fall squarely into the accommodator quadrant. An ACCE score of 5 and an AE-RO score of 8 would put you only slightly in the converger quadrant. The closer your data point is to the intersection where the lines cross, the more balanced is your learning style. If your data point is close to any of the four corners, this indicates that you rely heavily on one particular learning style. The following is a description of the characteristics of the four basic learning styles based both on research and clinical observation (see also Exhibit 3-3). Exhibit 3-4 summarizes the strengths of each learning style. The dive1ge11t learning style has the opposite strengths of the convergent style and emphasizes concrete experience and reflective observation. The greatest strength of this orientation lies in imaginative ability and awareness of meaning and values. The primary adaptive ability in this style is to view concrete situations from many perspectives and to organize many relationships into a meaningful gestalt. The emphasis in this orientation is on adaptation by observation rather I \ CHAPTER 3 ( ( INDIVIDUAL AND ORGANIZATIONAL LEARNING than by action . This style is called "diverger" because a person of this type performs better in situations that call for generation of alternative ideas and implications, such as a brainstorming idea session. Divergers are interested in people and tend to be imaginative and feeling oriented. They generally have broad cultural interests and tend to specialize in the arts. This style is characteristic of individuals from humanities and liberal arts backgrounds. Counselors, organization development specialists, and personnel managers tend to be characterized by this learning style. In assimilation, the dominant learning abilities are abstract conceptualization and reflective observation . The greatest strength of this orientation lies in inductive reasoning, in the ability to create theoretical models and in assimilating disparate observations into an integrated explanation . As in convergence, this orientation is less focused on people and more concerned with ideas and abstract concepts. Ideas, however, are judged less in this orientation by their practical value. For the assimilator, it is more important that the theory be logically sound and precise. This learning style is more characteristic of individuals in the basic sciences and mathematics rather than the applied sciences. In organizations, persons with this learning style are found most often in the research and planning departments. The convergent learning style has the opposite strengths of the di verger style . It relies primarily on the dominant learning abilities of abstract conceptualization and active experimentation. The greatest strength of this approach lies in problem solving, decision making, and the practical application of ideas. Kolb called this learning style the "converger" because a person with this style seems to do best in such situations as conventional intelligence tests where there is a single correct answer or solution to a question or problem . In this learning style, knowledge is organized in such a way that, through hypothetical-deductive reasoning, it can be focused on specific problems. Research on individuals with this style of learning shows that convergent persons are controlled in their expression of emotion. 6 They prefer dealing with technical tasks and problems rather than with social and interpersonal issues. Convergers often specialize in the physical sciences. This learning style is characteristic of many engineers and technical specialists. The accommodative learning style has the opposite strengths of assimilation, emphasizing concrete experience and active experimentation. The greatest strength of this orientation lies in doing things, in carrying out plans and tasks , and in getting involved in new experiences. The adaptive emphasis of this orientation is on opportunity seeking, risk taking, and action. This style is called "accommodation" because it is best suited for those situations in which one must adapt to changing immediate circumstances. In situations in which the theory or plans do not fit the facts, those with an accommodative style will most likely discard the plan or theory. (With the opposite learning style, assimilation, one would be more likely to disregard or reexamine the facts .) People with an accommodative orientation tend to solve problems in an intuitive trial-anderror manner, relying on other people for information rather than on their own analytical ability. Individuals with accommodative learning styles are at ease with people but are sometimes seen as impatient and " pushy." Their educational background is often in technical or practical fields such as business. In organizations, people with this learning style are found in action-oriented jobs, such as marketing, sales, or management. As you can see, all styles have their unique strengths and weaknesses so, whenever possible, it is helpful to have groups with diverse learning styles . By doing so, we can avoid the problems that occur when there is an excess or a deficiency of a particular learning style in an organization or work unit, as illustrated in Exhibit 3-6 on page 67. LEARNING STYLES AND MANAGEMENT EDUCATION l Differences in learning styles need to be addressed in management education . For example, managers who return to the university in midcareer experience something of a culture shock . Fresh from a world of time deadlines and concrete, speci fie problems that they must solve, they are suddenly immersed in a strange slow-paced world of g~neralities, where the elegant solution to problems is sought even when workable solutions are at hand . One gets rewarded 61 62 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK here for reflection and analysis rather than concrete, goal-directed action. Managers who "act before they think-if they ever think" meet the scientists who "think before they act-if they ever act." Research on learning styles has shown that managers on the whole are distinguished by very strong, active experimentation skills and very weak reflective observation skills. Business school faculty members (and professors in general) usually have the reverse profile. To bridge this gap in learning styles, the management educator must somehow respond to pragmatic demands for relevance and the application of knowledge, while encouraging the reflective examination of experience that is necessary to refine old theories and to build new ones. In encouraging reflective observation, the teacher often is seen as an interrupter of action-as a passive "ivory tower" thinker. This is, however, a critical role in the learning process. Yet if the reflective observer role is not internalized by the learners themselves, the learning process can degenerate into a value conflict between teacher and student, each maintaining that theirs is the right perspective for learning. Neither the faculty nor student perspective alone is valid. Managerial education will not be improved by eliminating theoretical analysis or relevant case problems. Improvement will come through the integration of the scholarly and practical learning styles. One approach to achieving this integration is to apply the experiential learning model directly in the classroom . This workbook provides simulations, role plays, and exercises (concrete experiences) that focus on central concepts in organizational behavior. They provide a common experiential starting point for participants and faculty to explore the relevance of behavioral concepts for their work. In traditional management education methods, the conflict between scholar and practitioner learning styles is exaggerated because the material to be taught is filtered through the learning style of faculty members in their lectures or presentation and analysis of cases. Students are "one down" in their own analysis because the data are secondhand and already biased. In the experiential learning approach, this filtering process does not take place because teacher and students alike are observers of immediate experiences that they both interpret according to their own learning style. In this approach to learning, the teachers ' role is that of facilitators of a learning process that is basically self-directed. They help students to experience in a personal and immediate way the phenomena in their field of specialization . They provide observational schemes and perspectives from which to observe these experiences. They stand ready with alternative theories and concepts as students attempt to assimilate their observations into their own conception of reality. They assist in deducing the implications of the students' concepts and in designing new "experiments" to test these implications through practical, real-world experience. LEARNING AND CULTURE Another learning style difference that must be managed in the classroom relates to cultural diversity. Cultural differences have been found in LSI results for both managers and students 7. Furthermore, in some cultures professors are perceived as experts with all the answers . They dispense their knowledge to students who are socialized not to interrupt or question but to act respectfully with teachers in or out of class. In many U.S . classrooms (but not all), students are encouraged, expected, or even forced to participate in class. Asking questions that may reflect badly on the professor's expertise, while not necessarily politi c , is not taboo in the American milieu. Students in Asian classrooms are seldom expected to speak and would never say anything to embarrass a professor in public. Experiential learning may come as a shock to students who have been socialized to have more traditional expectations about learning and classroom roles. There is no question that some people will be more comfortable, at least in the beginning, than others in an experiential course. As a group, we should seek to understand and discuss the differences in our expectations and, when possible, make allowances for them. This lays the groundwork for an effective learning organization. ( CHAPTER 3 INDIVIDUAL AND ORGANIZATIONAL LEARNING THE LEARNING ORGANIZATION ( It was Woodrow Wilson who said , " I not only use all the brains that I have but all that I can borrow." Using all the available brainpower, knowledge, and wisdom is one of the basic premises of a learning organization. Some of the essential characteristics of learning organizations are: 8 • Systematic pmblem solving . Employees are taught to solve problems using the scientific method, which focuses on data rather than assumptions and requires the use of simple statistical tools. • Experimentation . Employees are encouraged to take risks and experiment with continuous improvements to ongoing programs or to test innovative ideas using pilot or demonstration projects. The results of these experiments are shared with the rest of the organization and guide decision making. • Leaming ji-0111 past experience. Companies take time to reflect on and evaluate their successes and failures. They summarize and quickly disseminate the lessons learned. • Leaming fm111 others. Companies look outward to lind and adopt good ideas from other organizations. They visit and benchmark (study) excellent companies and learn from "best practices" and are not reluctant to implement ideas that were " not invented here" within their own company. • Transferring knowledge. Learning organizations have mechanisms for quickly sharing knowledge among their members. ( The popularity of learning organizations has given rise to numerous tools to help managers surface their assumptions and mental models, develop creative strategies for the future, resolve problems utilizing cross-functional teams (action-learning and total quality management groups), continuously improve work processes, and analyze possible scenarios for the future. 9 As with any organizational innovation , these tools do not succeed unless the other building blocks are in place, such as reward systems, management style, organizational systems, and a culture that fosters organizational learning. In the following passage, Jack Welch, former CEO of GE, describes the learning culture in his organization. 10 GE is unique in that it is ... a l'ery lwge, multi-business company with a Leaming culture that has tramformed the diversity of its businesses and its size-ji-om what is sometimes perceived as a handicap-into a tremendous competitive advantage ... At the heart of this culture is an understanding that an 01ganizatio11 's ability to leam, and translate that learning into action rapidly, is the ultimate competitive business advantage. This appetite for ideas, this lust for Leaming, was bom in the 1980s in. a simple ritual called "Work-Out." Work-Out was nothing more complicated than bringing people of all ranks and ji111ctio11s-111anagers, secretaries, engineers, line workers, sometimes customers and suppliers-together into a mom to focus 011 a problem or an opportunity, and then acting rapidly and decisively 011 the best ideas developed, regardless of their source. This simple process, and the gmwing reverence for the better idea that is spawned, is now in the cultural bloodstream of the company. It is reflected eveJJ' day in the sharing and learning that goes on constantly among GE businesses and between our businesses and other companies. This boundwyless leamin.g culture killed any view that assumed the "GE way " was the only way or even the best way .... GE is a bubbling cauldron of ideas and learning-with tens of thousands of people playing alternate roles of teacher and student. (, One might assume that universities and their classrooms would be prime examples of learning organizations. Most universities, however, focus mainly on individual learning and incremental improvements in the programs they offer students. Distance learning is an exception, an innovation wherein students learn primarily from a professor and fellow students on the Web. It is an example of a new mental model about how students learn. The founders of distance learning questioned the basic assumption that students have to be physically present in a classroom; thus, distance learning is an example of generative learning, which is explained in the following section . '- 63 64 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK ADAPTIVE AND GENERATIVE LEARNING For years Chris Argyris has studied the reasoning that underlies our actions and the relationship that exists with learning. 11 He concludes that we have two types of theories: espoused theories that we profess to believe ("Do as I say, not as I do") and theories in action that actually guide our behavior. We seldom examine the assumptions on which these theories are based. Indeed, we insulate them in defensive routines that prevent us from questioning their validity. An exa mple of a defensive routine is smoothing over the conflict that arises on a team without ever looking carefully at the reasons for the conflict, thereby perpetuating the status quo. This discovery led Argyris to describe two types of learning. Single-loop learning is like tracking the temperature on a gauge and responding to the feedback that it is too high or too low. It is now commonly referred to as adaptive learning, which is defined as a coping approach that focuses on solving pmblems and making incremental improvements using the prevailing mental model. A business example is the personal computer (PC) industry. Most companies followed the traditional practice of selling through the retail channel (computer stores such as CompUSA and retailers that sell computers) and have since focused on a coping approach-measuring what they were cuiTently doing and improving it incrementally. They did not, however, question their theories or mental models about the PC business. This is what distinguishes single- and double-loop learning. In double-loop learning, people question the assumptions that underlie their theories and ask themselves hard questions. Double-loop learning is currently known as generative learning. Generative learning consists of continuous experimentation and feedback in an ongoing anal_vsis of how organizations define and solve pmblems. 12 As a result, it is a creative response rather than a coping response. Michael Dell , founder and chairman of the Board of Directors of Dell Computer Corporation, did not have the option of using the retail channel when he started making and selling computers at age 19 in his college dorm room . Instead, he advertised in PC publications and sold custom-built computers through the mail. Customers saved money because Dell's prices did not include the middleman markup of I 0 percent to 15 percent. Dell's direct-sales model is frequently cited as one of the most successful innovations in the PC industry. The company 's mental model for doing business is based on maximum efficiency, a cash conversion cycle, meeting customers ' needs, and providing excellent service. Most PC companies would agree that these goals are important, but not all of them turn this espoused theory into a theory in action as Dell did. For example, Dell makes each machine to order and maintains only four days of inventory while IBM has 20 days and HP has 28. 13 In 2005, one in 6 computers in the world were built by Dell. 14 Dell reports that it needs only four days to get parts and build and ship a computer to a customer. 15 Its direct link to customers provides the company with extensive firsthand information on customer needs. Dell was the first to sell computers on the Web, and its Web page was geared to a global market at a time when some of its competitors had nothing more than an 800 number on their Web pages. Dell's structure is segmented by customer sets, which are further subdivided when a unit grows too large so as not to lose focus . As Morton Topfer, Dell's vice chairman, noted , "Some people still measure themselves by how many people work for them or how many dollars they generate. At Dell success means growing so fast that we take half your business away. It's a different mind-set." 16 While the company has had its share of missteps, it has been quick to learn from them and get back on track . At present, Dell is focused on regaining its after-sales customer service reputation, damaged by managing costs (outsourcing call centers abroad and hiring temporary workers) rather than quality and service. 17 Time will tell if Dell 's generative learning and mental models continue to produce performance measures that are higher than the industry averages. Organizations must be careful not to rely on "old programming," obsolete mental maps, and adaptive learning. Companies that are unlikely to survive in a rapidly changing environment not only limit themselves to adaptive learning, they may even punish generative learning. There are numerous examples of employees who leave large, unresponsive corporations to form successful, competing companies where they can put their knowledge and ideas to work. Organizational cultures that stifle creativity and innovation are some- ( CHAPTER 3 ( INDIVIDUAL AND ORGANIZATIONAL LEARNING times accused of playing the "whack the gopher game ." 18 People who stick their necks out by asking questions that threaten defensive routines or by making radical suggestions gel " whacked." Some organizations employ parallel teaming structures, which are defined as part of tlze organization that operates alongside the 11or111al bureaucracy with the purpose of illcreasing organizational learnil!g by creating and/or implementing new thoughts and behaviors. Parallel learning structures consist of " a steering commillee and a number of small groups with norms and operating procedures that promote a climate conducive to innovation , learning , and group problem solving" that is not possible within the larger bureaucracy. 19 For example , one fast-growing semiconductor company created a parallel learning structure that focused on organizational adaptation Lo a competitive and stagnant market. The parallel structure came up with solutions that the larger organization then implemented. MANAGING THE LEARNING PROCESS l To conclude, let us examine how managers and organizations can explicitly manage their learning process. We have seen that the experiential learning model is useful not only for examining the educational process but also for understanding managerial problem solving and organizational adaptation. But how can an awareness of the experiential learning model and our own individual learning style help improve individual and organizational learning? Two recommendations seem important. First, learning should be an explicit objective that is pursued as consciously and deliberately as profit or productivity. Managers and organizational member should budget time to learn from their experiences. When important meetings are held or important decisions are made , time should be set aside to critique and learn from these events. All Loo few organizations have a climate that allows for free exploration of such questions as "What have we learned from this venture?" Usually, active experimentation norms dictate " We don ' t have time ; let ' s move on." This leads to the second recommendation. The nature of the learning process is such that opposing perspectives-action and reflection , concrete involvement, and analytical detachment-are all essential for optimal learning. When one perspective comes to dominate others, learning effectiveness is reduced . From this we can conclude that the most effective learning systems are those that can tolerate differences in perspective. This point can be illustrated by the case of ai1 electronics firm that we have worked with over the years . The firm was started by a group of engineers with a unique product. For several years they had no competitors, and when some competition entered the market, they continued to dominate and do well because of their superior engineering quality. Today they are faced with stiff competition in their original product area, and, in addition, their very success has caused new problems. They are no longer a small intimate company but a large organization with plants around the world. The company has had great difficulty in responding to these changes because it still responds to problems primarily from an engineering point of view. Most of the top executives in the company are former engineers with no formal management training. Many of the specialists in marketing, finance, and personnel who have been brought in to help the organization solve its new problems feel like "second-class citizens." Their ideas just don't seem to carry much weight. What was once the organization's strength , its engineering expertise, has become to some extent its weakness. Because engineering has flourished at the expense of the development of other organizational functions such as marketing and the management of human resources, the firm is today struggling with, rather than mastering, its environment. As this example illustrates, effectively managing the learning process clearly has become a key competitive activity for managers who wish to ensure that their organization continues to flourish. 65 66 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK ( The objective of this exercise is to map and understand the individual learning styles in the classroom . (Time allotted: I hour) STEP 1. Individual self-assessment. (5 minutes) students should individually review their Learning Style Inventory (LSI) scores in the light of what they now know about learning styles and their own personal experiences in learning (e.g., their educational background, current job function, and positive and negative learning experiences). a. With this broader perspective, individuals should alter their position on the learning style type grid in Exhibit 3-2 on page 54 to reflect their current best judgment as to the learning style that best describes them. Do this by placing an X on the grid spot that best defines your learning style. You may agree with the position indicated by your LSI score. If so, place the X on lop of the point of intersection you calculated earlier with the AC-CE and AE-RO scores. Or you may feel you are really farther away from or closer to the center or even in a different quadrant. If so, move the X accordingly. STEP 2. Visual representation of class learning styles. ( 10 minutes) a. Create a learning style grid large enough for the entire class to stand on. Using masking tape for the axes, create the grid on the floor of an open area. b. Individual group members should stand on this floor grid in the position corresponding to the X position they marked in Step I. c. Look around and see how students are distributed on the grid. STEP 3. Group discussion on learning styles. (20 minutes) a. With their closest neighbors on the grid, students should form small groups of five to six people with homogeneous learning styles. b. Discuss the following questions, ensuring that all members have an opportunity to share their opinions. Please answer questions 2 and 3 based on your personal experience rather than the Workbook content. Take notes on the answers so a group representative can report your thoughts to the class as a whole. 1. Do your learning profile scores seem valid to you? How do you characterize the way in which you learn? Does your learning style profile relate to the way you went about the recent learning situation you described in the prework assignment? 2. What do you think is your greatest strength as a learner? 3. What is your greatest weakness? STEP 4. Reports to the total group. (25 minutes) A representative of each small group should briefly report to the total group: a. Where each group stood on the grid. b. The main points of each group discussion-the content of the meeting. c. Observations about the process of the group meeting. How did it feel to be in a group of individuals who had learning styles similar to yours? Was the group's learning style reflected in the way the meeting ran? Do you prefer being in a group with similar or mixed learning styles? d. What connection can you make between this exercise and the readings for today's class? CHAPTER 3 ( I INDIVIDUAL AND ORGANIZATIONAL LEARNING Accommodating Diverging When there are too many accommodators: When there are too many divergers: • Trivial improvements • Paralyzed by alternatives • Meaningless activity • Cannot make decisions When there are too few accommodators: When there are too few divergers: • Work is not completed on time • Lack of ideas • Impractical plans • Inability to recognize opportunities and problems 67 • Work is not goal-directed ( Converging Assimilating When there ore too many convergers : When there are too many ossimilotors: • Solving the wrong problems • Castles in the air • Hasty decision making • No practical applications When there are too few convergers: When there are too few assimilotors: • Lock of focus • Unable to learn from mistakes • No testing of ideas or theories • No sound basis for work • Scattered thoughts • No systematic approach EXHIBIT 3-6 What Happens When There Are Too Many or Too Few People with Each Learning Style in an Organization CREATING A DIVERSE LEARNING COMMUNITY The purpose of this activity is Lo form diverse learning groups in which you will work for the rest of the semester. (Time allotted: 45 minutes) STEP 1. Form learning groups of no more than six members. You probably already know how to work with people like you. Diversity should be the criterion for group composition because this will maximize your learning. Try to have at least one person from each of the four learning styles and people of different ages, genders, races, nationalities, occupations, and majors . Unless your instructor indicates otherwise, stand up and move around the room until you've created heterogenous groups that meet with everyone's approval. ( 10 minutes) STEP 2. In your learning group discuss your answers to the class preparation questions. (20 minutes) a. What was your best group learning experience? What was good about it? b. What was your worst group learning experience'? What made it that way? c. In your opinion, what conditions promote adult learning? d. How could we turn this classroom into a highly effective learning organization? l 68 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK STEP 3. The group chooses one or more spokespersons who report the results of the group's discussion of questions c and d. STEP 4. The class and the instructor come to a consensus on how they will develop a learning organization in the classroom. ( 15 minutes) 1. The rapid degree of change in today's business environment means that the ability of a company's managers to learn faster than their competitors is a key competitive advantage. Continuous learning is, therefore , a necessity for both individuals and organizations. 2. A learning organization is an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. 3. Adult learning: a. Is based on reciprocity. b. Is based on experience. c. Has a problem-solving orientation. d. Is individualized and self-directed. e. Integrates learning and living. f. Needs to be applied. 4. The adult learning process is a cycle composed of the following modes: concrete experience, reflective observation, abstract conceptualization, and active experimentation. The process is both concrete and abstract, both reflective and active . 5. Individuals usually see themselves as having a predisposition or a learned facility for one of the four styles in Kolb's learning model: divergence, assimilation , convergence, and accommodation. 6. Learning communities and organizations profit from having members with different learning styles because each style has its own particular strengths. 7. Some of the essential characteristics of learning organizations are systematic problem solving, experimentation, learning from past experience, learning from others, and transfe1Ting knowledge. 8. Argyris claims we have two types of theories: espoused theories that we profess to believe and theories in action that actually guide our behavior. 9. People develop defensive routines that prevent them from questioning the validity of the assumptions underlying espoused theories and theories in action. 10. Adaptive learning (single-loop learning) has a coping orientation and focuses on solving problems or making incremental improvements in the current way of doing business. It involves refining the prevailing mental model. 11. Generative learning (double-loop learning) has a creative orientation and involves surfacing and reviewing the underlying assumptions about the prevailing mental model. Generative learning involves continuous experimentation and feedback in an ongoing analysis of how organizations define and solve problems. 12. Parallel learning structures are part of the organization that operate alongside the normal bureaucracy with the purpose of increasing organizational learning by creating and/or implementing new thoughts and behaviors. ( CHAPTER 3 INDIVIDUAL AND ORGANIZATIONAL LEARNING ( FOR EMPLOYEES ( • Many highly successful people report that they are continuous learners . Experts learn as much as they can about their job and industry. • They can develop other learning styles by carefully observing people with different styles and through the following practices. 20 • Develop di verger ski !ls by: • Being sensitive to people's feelings • Being sensitive to values • Listening with an open mind • Gathering information • Imagining the implications of ambiguous situations • Develop assimilator skills by: • Organizing information • Testing theories and ideas • Building conceptual models • Designing experiments • Analyzing quantitative data • Drawing models of speakers' message and situations • Develop converger skills by : • Coming up with different ways of doing things • Experimenting with new ideas • Choosing the best solution • Selling goals • Making decisions • Develop accommodator skills by: • Committing to goals and following through on them • Seeking out new opportunities • Practicing influence skills to get goals accomplished • Volunteering to lead teams • Gelling personally involved with people • Team leaders can help guide the group through all the phases in the learning cycle. • When learning style differences are the cause of conflict among coworkers, an appreciation of these differences can alleviate the problem. People with OB expertise are more likely to perceive style differences, rather than personality, as the source of conflict. • Experts consider whether they should adapt their communication style, based on their target audience's preferred learning style. For instance, accommodators may prefer models, bulleted action recommendations, whereas assimilators prefer models, detailed facts, and figures. FOR MANAGERS • Managers who are experts at learning are aware of their personal learning style so that they understand how they approach work issues and how they react to others who have different styles. • When training others (even if it 's only breaking in a replacement), they remember that people have a tendency to assume that everyone learns the same way they do. Since this is not true, they find out how the trainee learns best and adapt their instruction accordingly. • They ensure that people with different learning styles are valued for their strengths. If they find themseves in a situation where this is not the case, they may want to give the work team or the l 69 70 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK management group the Learning Style Inventory so that the differences can be understood in a positive manner. The LSI is often used as an opening exercise in team-building efforts. • Most project teams benefit from an understanding of the learning cycle--divergence, assimilation, convergence, and accommodation-and a somewhat orderly progression through it. This prevents the frustration that occurs when teams jump ahead or loop back too often. • In order to create a learning organization, managers should:21 • Make time to ref1ect on work events and assume the stance, "What can we learn from this?" for both themselves and their employees. • Treat failure as a natural part of the learning process, which then leads to improvement. Employees should not be afraid to experiment and fail. • Avoid allowing an elite group or single point of view to dominate organizational decision making. • Create a climate of openness and supportiveness so that employees feel enough psychological safety to raise questions and generate new ideas. • Encourage the expression of conflicting ideas and train employees in conflict resolution. • Share with employees the data on performance, quality, consumer satisfaction, and competitiveness, so they can reflect on the company situation and make informed decisions. • Use cross-functional teams to benefit from different approaches and expertise. • Create norms that encourage people to question assumptions and challenge the status quo. • Focus on systems thinking by looking for interrelationships, examining entire work processes, and looking beyond symptoms for root causes. FOR ORGANIZATIONAL ARCHITECTS • Organizational architects who are expert at managing learning create a culture that values learning and different perspectives. • They set up mechanisms that encourage reflection and learning from experiences, such as debriefings, postmortems, and lessons-learned web sites. • They foster a strategic approach to learning so the link between learning and performance is clear to employees. • Action learning teams, composed of diverse employees, emphasize the importance of learning and model how it can take place. The topic of this assignment is to think back on a previous learning experience that was significant to you. Choose an experience about which you are motivated to learn more; that is, there was something about it that you do not totally understand, that intrigues you, that made you realize that you lack certain skills, or that was problematical or significant for you. It may have been an academic or a nonformal educational experience (e.g., tennis camp, a seminar, on-the-job training program). A. Concrete Experience 1. Objectively describe the experience (who, what, when, where, how). (2 points) ( '- CHAPTER 3 INDIVIDUAL AND ORGANIZATIONAL LEARNING 2. Subjectively describe your feelings, perceptions , and thoughts that occurred during (not after) the experience. What did others seem to be feeling? (2 points) ( B. Reflective Observation 1. Looking back at the experience, what were the perspectives of the key actors (including you)? (2 points) 2. Why did the people involved (including you) behave as they did? (2 points) ( C. Abstract Conceptualization 1. Relate concepts or theories from the assigned readings or the lecture to the experience. Explain thoroughly how they apply to your experience. Please apply at least two concepts or theories and cite them correctly). (4 points) 71 72 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK D. Active Experimentation 1. What did you learn from this experience? ( 1 point) 2. What did you learn about yourself? (I point) 3. What action steps will you take to be more effective in the future? (2 points) E. Integration, Synthesis, and Writing 1. Did you integrate and synthesize the four sections? ( 1 point) 2. Was the Personal Application Assignment well written and easy to understand? (I point) 3. Was it free of spelling and grammar errors? (2 points) ( CHAPTER 3 ( 73 ENDNOTES 1 A. de Geus. " Planning as Learni ng ... At Shell. Planning Means Changing Minds. Not Making Plans." Hmvard Business Review 66(2) ( 1988) 70-75. 2 J. S. Wyles. J. G. Kunkel . and A. C. Wilson, "Birds. Behav- 10 J. F. Welch, "A Learning Company and Its Quest for Six Sigma," an executive speech reprint. presented at the General Electric Company 1997 Annual Meeting. Charlotte. North Carolina (April 23, 1997): 2-3 . ior. and Anatomical Evolution." Proceedings of the National Academy of Sciences. USA. July 1983. 11 C. Argyris. Reasoning, Leaming, and Action (San Francisco: Jossey-Bass. 1982). 3 12 D. Kolb. Experiential Learning : ExJierience as the Source of Leaming and Development (Upper Saddle River. NJ : Prentice-Hall. 1984). M. E. McGill. J. W. Slocum. Jr.. and D. Lei. " Management Practices in Learning Organizations," Organizational Dynamics 22(1) (Summer 1992): 5-17 . D. A. Kolb. R. E. Boyatzis. and C. Mainemelis. '·Experiential Learning Theory: Previous Research and New Directions ... In R. J. Sternberg and L. F. Zhang (eds.). PersJiectives 011 Cognitive, Leaming, and Thinking Styles. (NJ: Lawrence Erlbaum. 2000):228-247. 13 -1 5 ( INDIVIDUAL AND ORGANIZATIONAL LEARNING The Learning Style Inventory is copyrighted by David A. Kolb ( 1976) and distributed by Mc Ber and Co. , 137 Newbury St.. Boston. MA 02116. Further information on theory. construction. reliability. and va lidity of the inventory is reported in The Leaming S1yle lm•entory: Technical Manual, available from McBer and Co. The theory and its implications are found in Kalb's book. ExJ1erie111ial Leaming: ExJierience as the Source of Learning and DeveloJ1men1 (Upper Saddle River. NJ: Prentice-Hall. 1984). See D. C. Kayes. "Experiential Learning and its Critics: Preserving the Role of Experience in Management Learning and Education." Academy of Management Leaming and Education, /(2) (2002): 137-149 for a recent review of this theory. 6 H. Liam. Con/1¥11)' /111agi11ations (New York: Schocken Books. 1966). 7 Y. Yamazaki. "Learning Styles and Typologies of Cultural Differences: A Theoretical and Empirical Comparison." lntematio11al Journal of /111erc11ltural Relations 29 (5) (2005): 521-548. 8 D. Garvin. "Building a Learning Organization." Harvard Business Review 71 (4) (1993): 78-92. M.A. Gephart. Y. J. Marsick, M. E. Yan Buren , M. S. Spriro. and P. Senge. "Learning Organizations Come Alive." Training & De1·eloJ1me111 50 ( 12) (December. 1996): 34---46. 9 P. Senge. A. Kleiner. C. Roberts. R. Ross. and B. Smith. The Fijih Discipline Fie/dbook: S1ra1egies and Tools for Building a Learning Organization (New York: Currency. 1993); and R. M. Fulmer, P. Gibbs. and J.B. Keys. "The Second Generation Learning Organizations: New Tools for Sustaining Competitive Advantage." Organizational Dynamics 27 (2) (Autumn 1998): 6-21. A. Serwer. A . Lustgarten. and J. Mero. "Thc Education of Michael Dell." Fortune 151 (5) (March 7. 2005): 72-82: R. Y. Kasturi and M. Bell. "Case Study: Dell Online:· .loumal of /111eractive Marketing 12 (4) ( 1988): 63- 83. 1-1 Serwer. Lustganen. and Mero.'The Education of Michael Dell. 15 B. Breen, "Living in Dell Time." Fast Co111J1anr 88 (November 2004): 86-92. 16 L. M. Fisher. "Inside Dell Computer Corporation: Managing Working Capital." Strategy & Business (First Quarter. 1998): 68-75. 17 D. Kirkpatrick. "Dell in the Penalty Box" CNN.Money.Com. (September 5. 2006). http://money.cnn.com/ magazines/ fortune/fortune_archive/2006/09/ 18/8386121 /index.htm. Accessed 9/17/06. 18 This metaphor is attributed to Peter Delisi of Digital Equipment Corporation in E. H. Schein's aitic le. "How Can Organizations Learn Faster? The Challenge of Entering the Green Room," Sloan Management Reviell' 34 (2) (Winter 1993): 85-94. 19 G. R. Bushe and A. B. Rami Shani. Parcillel Leaming Structures: Increasing Innovation in Bureaucracies (Reading. MA: Addison-Wesley. 1991): 9-10. 20 Adapted from D. Kolb. "Strengthening and Developing Learning Style Skills." Hay Group. 116 Huntington Ave .. Boston. MA 02116. Not to be used without permission in writing from the Hay Group. 21 These suggestions are taken primarily from R. Tanner Pascale, Managing 011 the Edge (New York: Simon & Schuster. 1991 ): 236 -37 and the works cited in this chapter: Senge's The Fifth Discipline; McGill's et al.. "Management Practices"; Schein's "Organizations Learn Faster": and Garvin's "Building a Learning Organization ." ( DECODING HUMAN BEHAVIOR AND PERSONALITY 'CH1.J0CT!VK'.S By the end of this chapter, you should be able to: A. Describe the major influences on individual behavior in organizations. B. Discuss the Big 5 Model of personality and summarize the research on the model. C. Identify the four dimensions of the Myers-Briggs Type Indicator. D. Discuss the interactionist approaches to personality and use them to discern the roots of individual behavior. E. Diagnose the causes of a "difficult" employee's behavior and identify appropriate responses. "Oh, no. Not again! Doesn't she ever give up? I guess the 'Buzzsaw' is back at it," sighed Chris, a vice-president for finance at Northco, reading yet another memo from Peri, a manager in his department. Peri's first memo had appeared a few months earlier and lived up to her reputation of plain speaking. It was full of dire warnings that the company was about to "implode in a wave of accounting scandals." According to Peri, financial disaster was imminent, and the company was at risk of criminal prosecution. Chris thought back to Peri's last pe1forma11ce appraisal. He recalled that she was often impatient with people and could be merciless with her criticisms. One supen1isor had even noted, "When someone says something she thinks is nonsensical, Peri goes for the jugular; then late1; when she realizes she has embarrassed the person or that he might have something to contribute, Peri tries to stop the bleeding, but it's too late. He's got blood gushing down his shirtfront." 1 But Chris also remembered that Peri could be a top pe1forme1; often qualifying for exceptional bonuses and getting the job done even under extremely difficult conditions and pressures. This latest memo from the Buzzsaw was more of the same, tt'arning of catastrophe and disaster-the accounting problems had continued and even worsened. Accounting practices, at least according to Peri, looked highly questionable; losses were claimed as gains. Peri wrote, "One of the overriding principles of accounting is that if you explain the 'accounting treatment' to a man on the street, would you influence his decisions? Would he sell or buy the stock based on a thorough understanding of the facts? If so, you best present it correctly and/or change the accounting." 2 (An accounting treatment refers to how accountants decide 74 CHAPTER 4 ( ( DECODING HUMAN BEHAVIOR AND PERSONALITY to deal with a specific accou11ti11g problem.) She was certai11 that the company would be sued, suggesting, "This is horrific. The plaintiff attorneys will be celebrating. "3 Even worse, she accused the co111pa11y 's external law and accounting firms of willingly turning a blind eye to the supposedly problematic activities. Peri was planning to go to the head of Human Resources to request a meeting with the CEO to go over her memo:1 Suppose you are Chris. Take a few minutes to think about what your response to Peri might be. Would you advise her to learn how to "gel along"? Would you assume that being hypercritical is just part of her personality and advise her to calm down and focus on her "real job" ? Would you suggest that she speak with the CEO? Would you prefer that she simply drop the subject all together? Or perhaps you think she might benefit l'rom some training on conllict resolution and interpersonal skills? If, like many people, you did not encourage her to continue her protests, you may have inadvertently contributed to condoning illegal activities . Peri's story, in reality, is modeled on that of Sherron Watkins, the Enron employee who did go to the CEO with her concerns about accounting practices that were later determined to be illegal. Sherron Watkins was in fact nicknamed the " Buzzsaw," and the quotes about her are from her actual supervisor. The statements directly attributed to Peri are taken from real memos that Ms. Watkins wrote while an employee at Enron . And indeed, Arthur Andersen, the auditor of the firm, did condone unacceptable practices, was fined heavily, and ultimately, like Enron, went bankrupt. Why would some people write Peri off as a complainer or a troublemaker? One reason is that we have a tendency to assume that people cause their own behavior, and we attribute the causes of that behavior to individual characteristics, such as personality traits and motivation. In doing so, we often downplay the importance of situational factors as causes of behavior. Yet behavior, and particularly behavior in organizations, is a complex function of both individual characteristics and situational factors. Thus, in Peri's example, certainly some of her behavior could be allributed to her distinctive character-yet much of it was due to the unique nature of the situation in which she found herself as part of an organization that was clearly skirting the edges of the law. Unless managers learn lo decode employee behavior. they can make the wrong call with disastrous results. A. Complete the following personality inventory and score the results. B. Think about whether you believe your results accurately describe your personality. If so, when are you most likely to act in ways that are consistent with the results? Are there times when this does not describe you? If the results seem inaccurate, what parts do you disagree with? Why? C. Think about an experience you had working with a difficult coworker or boss. Why was that person difficult to work with? How did you handle the situation? What was the outcome? D. Read the Donor Services Department on page 673 and write up your answers to these questions. 1. What do you want to accomplish in this situation with respect to Juana? 2. 3. 4. 5. l What is causing Juana to act as she does? How do you think Joanna views Juana and the situation? Why? If you were Joanna, how would you handle the situation? What exactly would you say to Juana if you decide to confront her? E. As you read the chapter, come up with a list of cues that you will look for when decoding behavior at work. 75 76 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Five Factor Model Personality Inventory Please use the rating scale to describe how accurately each of the statements below describes you. Describe yourself honestly as you generally are now, not as you wish you were or hope to be in the future. Compare yourself to people of your sex and age. Circle the number of the response that best describes you. Response Options 1: Very Inaccurate 4 : Moderately Accurate 2 : Moderately Inaccurate 5: Very Accurate 3 : Neither Inaccurate nor Accurate 1. I am the life of the party. 2 2 3 3 2 2 3 3 5. I have a rich vocabulary. 6 . I don't talk a lot. 7. I am interested in people. 2 2 2 3 3 8. I leave my belongings around. 9. I am relaxed most of the time. 2 2 2 3 3 3 3 2 2 2 2 3 3 3 3 2 3 2 2 3 3 2 2 2 2 2 2 3 3 3 3 3 3 24. I am easily disturbed. 25 . I have excellent ideas. 2 2 3 3 26 . I have little to say. 27. I have a soft heart. 2 2 3 3 28 . I often forget to put things back in their proper place. 29. I get upset easily. 2 2 2 3 3 2. I feel little concern for others . 3. I am always prepared. 4 . I get stressed out easily. 10. 11. 12 . 13 . 14. I have difficulty understanding abstract ideas. I feel comfortable around people . I insult people. I pay attention to details. I worry about things . 15 . I have a vivid imagination . 16. I keep in the background. 17. I sympathize with others' feelings . 18. I make a mess of things . 19. 20. 21. 22 . 23 . I seldom feel blue . I am not interested in abstract ideas. I start conversations . I am not interested in other people's problems . I get chores done right away. 30. I do not have a good imagination. 31. I talk to a lot of different people at parties. 32. I am not really interested in others . 33 . I like order. 34. I change my mood a lot. 2 2 3 3 3 2 2 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 CHAPTER 4 ( DECODING HUMAN BEHAVIOR AND PERSONALITY 35 . I am quick to understand things. 2 3 4 5 36. I don't like to draw attention to myself. 2 3 4 5 37. I take time out for others. 2 3 4 5 38. I shirk my duties. 2 3 4 5 39. I have frequent mood swings. 2 3 4 5 40. I use difficult words. 2 3 4 5 41. I don't mind being the center of attention. 2 3 4 5 42 . I feel others' emotions . 2 3 4 5 43 . I follow a schedule. 2 3 4 5 44. I get irritated easily. 2 3 4 5 45. I spend time reflecting on things . 2 3 4 5 46. I am quiet around strangers . 2 3 4 5 47. I make people feel at ease. 2 3 4 5 48. I am exacting in my work. 2 3 4 5 49. I often feel blue . 2 3 4 5 50. I am full of ideas. 2 3 4 5 Scoring the survey: Add the numbers you circled for items # 1, 11, 21, 31, and 41. #1 ( #11 #21 #31 #41 = Subtotal A For items #6, 16, 26, 36, 46, subtract the number that you circled from 6. For example, if you circled 4, your score would be 2 (6 - 4 = 2). Using your newly obtained scores, add these five items. 6- #6 6- #16 6- #26 6- #36 6- #46 Subtotal B Subtotal A = +Subtotal B = Total Extroversion Add the numbers you circled for items #7, 17, 27, 37, 42, and 47. #17 #7 #27 #37 #42 #47 = Subtotal A For items #2, 12, 22, 32, subtract the number that you circled from 6. For example, if you circled 4, your score would be 2 (6 - 4 = 2). Using your newly obtained scores, add these four items. 6 -#2 6 -#12 6- #22 6- #32 Subtotal B = Subtotal A _ _ + Subtotal B _ _ = Total Agreeableness _ _ 77 78 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Add the numbers you circled for items #3, 13, 23, 33, 43, and 48 . #3 #13 #23 #33 #43 #48 = Subtotal A For items #8, 18, 28, and 38, subtract the number that you circled from 6. For example, if you circled 4, your score would be 2 (6 - 4 = 2) . Using your newly obtained scores, add these four items. 6-#8 6-#18 6-#28 6-#38 Subtotal B Subtotal A = +Subtotal B = Total Conscientiousness Add the numbers you circled for items #9 and 19. #9 # 19__ = Subtotal A For items #4, 14, 24, 29, 34, 39, 44, and 49, subtract the number that you circled from 6. For example, if you circled 4, your score would be 2 (6 - 4 = 2) . Using your newly obtained scores, add these eight items. 6-#4 6-#14 6-#24 6-#29 6-#34 6-#39 6-#44 6-#49 Subtotal B = Subtotal A _ _ + Subtotal B _ _ = Total Neuroticism (emotional stability) _ _ Add the numbers you circled for items #5, 15, 25, 35, 40, 45, and 50. #5 #15 #25 #35 #40 #45 #50 = Subtotal A For items #10, 20, 30, subtract the number that you circled from 6 . For example, if you circled 4, your score would be 2 (6 - 4 = 2). Using your newly obtained scores, add up these three items. 6-#10 6-#20 6-#30 Subtotal B = Subtotal A _ _ + Subtotal B _ _ = Total Openness to Experience _ _ Interpreting the Survey: Each factor of the Big 5 Personality Inventory (Extroversion, Agreeableness, Conscientiousness, Emotional Stability [neuroticism], and Openness to Experience) has a range of possible scores from 5-50. The higher the score, the more you perceive this characteristic as descriptive of your personality. ( CHAPTER 4 DECODING HUMAN BEHAVIOR AND PERSONALITY ( A man can be a star of the first 111agnit11de in gifts, will power and endurance, but so well balanced that he turns with the system to which he belongs without any friction or waste of energy. Another 111ay have the same great gifts, or even finer ones, but the axis does not pass precisely through the center and he squanders half his strength in eccentric movements which weaken him and disturb his surroundings. Herman Hesse, The Glass Bead Game ( Managers have to decode and understand employee behavior so they know what action to take. This is not a simple task because there are many different factors that influence behavior. Think for a moment about how you behave in a classroom. What causes you to behave that way? Of course, your own personal characteristics influence what you do. But so also do the other people in the class, the instructor, the physical configuration of the room, the norms of the school, the discipline you are studying, and the culture of which you are a part. In just the same way, an employee's behavior is influenced by a number of different factors. As we see in Exhibit 4-1, behavior is influenced by the individual, the job, the work group, the organization, and the culture. A manager uying to understand an employee's behavior needs to consider all of these. For example, at the individual level, personal characteristics such as abilities. motivation, and personality may affect behavior. The job an employee perfrnms affects how that person behaves. For example, regardless of their personalities, hospital nurses learn to be meticulous because e1rnrs are not tolerated in their job. Work-group characteristics such as norms, size, leadership, and structure also influence individual behavior. Reward systems, perfonnance appraisal procedures, resources, and other organizational practices fu11her impact how employees act. And all of these are impacted by the national, regional , and local culture to which they belong. 11rns, managers need to take into account both the nature of the person and of the situation. In this chapter, we will focus on one aspect of the individual , personality, to provide you with some tools to help you decode individual behavior. We will address the other components in Exhibit 4-1 elsewhere in the workbook. Culture Organization Individual Work Group Job l EXHIBIT 4-1 Major Influences on Individual Behavior in Organizations 79 80 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Some managers view personality as the answer to all their dilemmas. Indeed, the personality testing business is a $400-million-a-year industry-suggesting that these managers are hardly alone in their views.5 If it were possible to assess an individual's personality by asking a person to fill out a questionnaire and then predict that person's actions and thoughts with 100 percent ce11ainty, it would truly be a gold mine for managers! It would be easy to assign people to jobs, form teams, match sales representatives with customers, and effectively handle all sorts of currently thorny organizational problems. Of course, in reality, personality has proven to be much more difficult to both identify with certainty and use in organizations. By the end of this chapter, we hope that you will have an informed view of' personality and its components and understand how to apply this knowledge in organizations. Personality can be defined as an individual's relatively stable characteristic patterns of thought, emotion, and behavior, and the psychological mechanisms that support and drive those pattems. 6 Current thinking on how personality develops emphasizes both genetic and environmental origins. Heredity does seem to play a role in personality development. Parents frequently comment that their children had unique personalities from a very early age, despite their parenting efforts. Although the family setting and life circumstances play a role in shaping personality, people are not passive recipients of environmental inlluences. 7 Even children are active creators of their own personalities because they can influence others' reactions and initiate their own social interactions. Adults likewise play a role in their own development by actively choosing the organizations they join, the jobs they take, the activities they participate in, and so forth. Thus, both nature (genetic) and nurture (environmental and situational aspects such as family, culture, and geographic location) factors play important roles in personality development. Theories of personality vary in the emphasis they place on the importance of the nature of the individual and the importance of the situation or environment in determining personality and, ultimately, behavior. Trait theories, which emphasize the components of personality, tend to highlight the importance of individual characteristics in determining behavior and de-emphasize the role of the situation or environment. lnteractionist theories emphasize the importance of the characteristics of the situation as well as the nature of the individual in understanding and predicting behavior. TRAIT MODELS Traits refer to broad, relatively regular dimensions of individual behavior. 8 When we describe someone as extroverted, aggressive, confident, or conscientious, we are using personality traits to characterize that person. Trait models, or theories, assume that personality is composed of a relatively stable set of traits or dimensions. According to these theories, although all individuals have these traits, people vary in the degree to which they exhibit specific dimensions. The theories differ, however, in the traits they consider to be the core components of personality. We will consider two popular trait theories, the Big Five Model and the Myers-Briggs Type Indicator (MBTI), as well as several other personality trait theories that have traditionally been of interest to managers. Personality research has been compared to a search for the ultimate traits that define the human disposition. Trait research in the early part of the twentieth century was characterized by an ever-growing list of personality dimensions. This type of research typically involved asking people to complete questionnaires that measured various traits. The usefulness of this approach, however, was questioned when research failed to demonstrate strong linkages between traits and behavior such as job performance. 9 In the last few decades, additional research and more sophisticated analytical techniques have been used to support an emerging consensus among advocates that five factors or traits are the major structural units of personality. Called the Big Five Model, or the Five-Factor Model, this approach holds that personality is comprised of the "OCEAN" dimensions: 10 • Openness to experience: This dimension refers to the extent that people actively seek out new and varied experiences and the extent to which they are aware of their thoughts, feelings, and impulses and are able to be attentive to many of them simultaneously. 11 CHAPTER 4 DECODING HUMAN BEHAVIOR AND PERSONALITY • Conscientiousness: People who are conscientious lend lo be dependable and trustworthy ( ( and conform to social norms. 12 • Extroversion: Extroversion refers to how outgoing, sociable, and assertive people are. Extroverts may also be very active and energetic , having many interests and hobbies. 13 • Agreeableness: This dimension captures the extent to which people are likable, cooperative, and considerate. 14 • Neuroticism: Neuroticism, also called emotional stability, in the Big Five approach refers lo the tendency to experience chronic negative emotions such as worry, insecurity, self-pity, poor self-image, and mood swings. 15 Of these five dimensions, conscientiousness appears Lo have the strongest relation lo overall job performance across a wide variety ofjobs. 16 People who score high on the conscientiousness dimension also may set higher goals for themselves, have higher performance expectations for other people, have greater motivation, be more satisfied in their jobs, and have higher occupational status than people who score low on this dimension. 17 There is some evidence that neuroticism or emotional stability is negatively related to perfomiance. 18 Other personality dimensions appear to relate Lo perlormance in specific types of jobs. Extroversion may be related to performance in a sales job, where there is a high competitive and social component. Agreeableness may be related lo performance in jobs where cooperation is necessary. 19 Openness to experience has not been a predictor of job peiformance,20 allhough it may be a good selection criteria for international work. It is important to note that the effect of personality on these types of behavior is moderate rather than very strong.21 The Five-Factor Model has both its merits and its limitations. The questionnaire used to assess an individual is easy lo administer and is of relatively low cost lo be some stability in the dimensions for North Americans and Western Europeans. However, this model may not apply Lo all cultures. For example, studies of Italians show three rather than five dimensions. Research conducted in other cultures shows six , seven, and even nine dimensions. 22 Moreover, the same dimensions can have different meanings in different cullures. 23 The five-factor approach has also been criticized because it sometimes produces resulls that are not consistent across time or situations. In addition, the factors may exert only weak inlluences on behavior, which lessens the model's predictive ability. 24 ((.; ~()i. The Myers-Briggs Type Indicator (MBTI) is a personality profile partially based on psychologist Carl Jung's theory of personality. According lo Workforce Management, the MBTI is administered over 2.5 million times a year. 25 The test is available in 19 different languages 26 and is used for a variety of organizational purposes including team building, management and leadership development, career counseling, hiring decisions, and performance effectiveness training. 27 For example, Dow Chemical's Polyolefin and Elastomers unit uses the MBTI to assign employees to tasks on various stages of the product development cycle.28 The MBTI suggests that there are four important components Lo personality: • Extroversion/Introversion (E/I) This refers Lo how the individual interacts socially. Extroverts are outgoing and sociable, whereas introverts are shy and prefer to be alone. • Sensing/Intuiting (SIN) This factor measures how people prefer lo collect information. Those who score toward the sensing end of the dimension prefer Lo use their five senses to systematically obtain factual information . Intuitive individuals use instinct and subjective perception. • Thinking/Feeling (T/F) This dimension captures how people evaluate information. Thinking types prefer to rely on logic and analysis, whereas feeling types rely more on their own and other people's reactions. • Judging/Perceiving (J/P) This dimension refers lo how people like to make decisions. Individuals who score on the judging encl of the dimension are planners and like lo control the decision-making process. Perceivers are more flexible , spontaneous, and adaptive in their decision style. 81 82 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK The MBTI is scored by combining all four pairs of traits into a matrix of 16 personality types . Individuals are categorized into one of the types based on how they respond on the test. The personality type represents the individual's preferences in the four separate categories, with each category composed of two opposite poles. According to the MBTI, each personality type has its preferred way of responding to the environment and its own set of strengths and weaknesses . For example, people whose personality type is ESTJ are focused on getting things done smoothly and efficiently. As an SJ, they have a core need for seeking the good of the community, a sense of belonging, and learning from the past. Conversely, an ENTJ focuses on implementing new ideas and challenges and is concerned primarily with competence and intellectual resourcefulness. 29 Despite its popularity, there is little evidence supporting the MBTI as a valid personality measure. As such, managers are wise to be cautious in their use and interpretation of the MBTI. 30 Some researchers are attempting to construct more valid measures of the personality types by developing questionnaires that assess how people respond in different situations. For example, the Singer-Loomis Type Development Inventory asks people to indicate how they would respond in twenty different situations.3 1 Self esteem is the degree of regard people have for themselves. 32 Individuals high in self-esteem tend to be more satisfied in their jobs than those who are low in self-esteem. High self-esteem individuals also tend to be more resistant to influence. Machiavellianism takes its name from Niccolo Machiavelli, author of a sixteenth-century treatise on power. People who are high in Machiavellianism believe that the ends justify the means and that manipulation is an acceptable way to influence other people. They also tend to be emotionally distant. 33 Locus of control (see Setting the Global Stage) refers to the beliefs people have about why things happen to them. People with an internal locus of control tend to believe that they control their own fate and destiny. In contrast, people with an external locus of control tend to think that luck, chance, or other environmental factors control what happens to them .34 As we have seen, the trait approach is extremely popular in organizations. However, this perspective should be used with caution and with a clear understanding of just what the results can and cannot reliably tell managers. It is important to note that many of the relationships between personality traits and behavior are of moderate strength, at best. Moreover, most of the research studies have been correlational or observational in nature and are unable to determine whether personality causes behavior or vice versa. For example, we noted that neuroticism/emotional instability was associated with low performance. But we cannot tell if emotional instability caused low performance or if low performance caused the individual to report emotional instability. Managers should also carefully consider the legality of any personality tests that they may use. Some tests have been challenged on the basis of invasion of privacy and on discrimination of minorities. Another important point to remember is that labeling people according to their personality profile or type can result in yet another instance of the self-fulfilling prophecy discussed in Chapter I. For example, one company actually required employees to wear badges revealing how they scored on a personality test. 35 We can easily see how a manager might perceive employees differently based on their badge type and that this, in turn, might result in employees responding in ways that confirm the manager's expectations. Simply knowing a person's score ( CHAPTER 4 ( DECODING HUMAN BEHAVIOR AND PERSONALITY on a test can impact how others' perceive that individual and, in turn, how that person behaves. This highlights yet another critical issue: The nature of the situation can exert powerful influences on behavior. The interactionist models of personality discussed in the next section explicitly take this factor into account. I NTERACTIONIST MODELS Like trait models, interactionist models hypothesize that personality is an important factor in determining an individual's behavior. They go a step further, however, and argue that situational factors can powerfully shape how that individual responds. We will consider two such models, the conditional reasoning approach and the cognitive-affective processing system . The conditional reasoning approach suggests that individuals interpret what happens in their social environment based on their individual dispositions. These dispositions are a type of mental map. Individuals differ in their motives, in how they frame the world, and the assumptions that they make regarding events. In turn, these differences result in different types of behavior because people use different justification mechanisms to decide how best to adjust to their environment.36 Let's consider how two people with different dispositional motives might react. Ana is high in achievement motivation , which means she is motivated to succeed .37 She very much believes that personal factors are important causes of performance and values hard work, learning, and experience. For Ana, a challenge is something to be met with confidence and even excitement. She is predisposed, according to the conditional reasoning approach, to believe that she is personally accountable for her success or failure and that she should take initiative to overcome the challenge. In contrast, Jay is high in fear of failure. Jay might also believe that his failure is due to external factors that are outside his control (e.g., a poor manager, irresponsible coworkers, etc .). For Jay, demanding tasks are a source of stress and anxiety. Instead of an opportunity to show what he can do, Jay believes a challenge will be a sure-fire way to demonstrate just how incompetent he really is. Thus, unlike Ana, Jay's primary reaction to a challenge would be avoidance. He might even reason that those who take a more relaxed approach are less likely to show signs of burnout or fatigue . The conditional reasoning approach is a contingency model because it assumes that responses to situations depend on the personality of the individual faced with the situation. Individuals who are high in achievement motivation will react more positively to the idea of starting their own businesses than will individuals who are high in fear of failure. They will also more likely be drawn to some types of situations (e.g. , situations where they can demonstrate exceptional performance) and to avoid other types of situations (e.g ., ones where performance measurement is ambiguous) . Indeed, according to the attraction-selection-attrition framework, different individuals will be attracted to different situations or organizations, will be selected by and become successful in different organizations , and will avoid or leave various types of organizations and situations depending on their preferences. 38 As with all models, the conditional reasoning approach has both its strengths and its weaknesses. By taking into account how individuals make sense of their social environment, it underscores the importance of understanding individual motives and needs. However, it does not allow us to fully understand how the same individual might act differently in similar situations nor how dispositions change over time. Because little research has been conducted on this theory, it remains a promising direction for future development. l 83 84 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Tl':f~ (~cg nfhve-~1\ffect ~vc Pr<:JCt)sslng ~}ys'ft:~·rn ~) f: ~"Jcr$onc~i~ty The cognitive-affective processing system (CAPS) is depicted in Exhibit 4-2. 39 According to this model, the personality system is comprised of mental representations called cognitive-affective units (CAUs), which are defined as interpretations of people and situations, goals, expectancies, memories, and feelings. People differ in the content of these representations, in how accessible they are, and in how they are related to one another. These representations are affected by a rich rurny of factors, which include genetic, cultural, societal, and developmental components. As an individual experiences various situations, different representations or CAUs become activated and are expressed in different behavioral responses. In other words, individuals act according to if-then types of relations, depending on the particular CAUs activated by the situation. Because individuals have different mental if-then relations, they also have differing patterns of behavior. 40 According to the model, people will also interpret situations differently--even the same situation might be construed quite differently by people with different mental representations and different emotions. Thus, various people will pay attention to different features of the situation, interpret them both cognitively and affectively (emotionally) in different ways, and ultimately behave differently. This means that the relevant features of situations must be understood from the individual 's point of view. Different cues will activate different patterns of behavior. Consider the example of Scott and how he reacts to criticism. In one instance, Scott reacts very aggressivelyquestioning the criticizer's motives and intelligence. In another case, Scott reacts quite passively--easily accepting the criticism and even offering suggestions for how to do things differently. What's going on here? In the first instance, Scott was criticized by peers and reacted quite defensively. Thus, the if-then relationship Scott used was, "If I am criticized by my peers, I have no reason to defer to them because they have no authority over me and have no right to criticize me." In the second instance, Scott was criticized by his manager. Here, his if-then profile might have been, "If I am criticized by my manager, I should accept what she says and try to improve." Clearly, other people might have different if-then rules for the same situations, prompting different behavioral reactions and judgments of that behavior by observers. This is one reason we often hear people commenting, "I never would have acted like that in his or her place." How might this be used in organizations? The important point would be to identify features of the situations that are relevant to the employees in the organization and which trigger different Psychological features of situations If-then behavior profiles Cognifiye affective personblity system Behavioral consequences + I ----------------- - ------------------, Biological history Cognitive social learning history Genetic background Culture and society I I I I ---- Developmental influence EXHIBIT 4-2 The Cognitive-Affective Personality System Adapted from W. Mischel and Y. Shoda, "A Cognitive-Affective System Theory of Personality: Reconceptualizing Situations. Dispositions. Dynamics, and Invariance in Personality Structure," Psydwlogicul Re1•iew 102 (2) ( 1995): 246--68. ( CHAPTER 4 ( ( DECODING HUMAN BEHAVIOR AND PERSONALITY patterns of if-then relations and behavior. Of course, this means that managers must understand how their employees view the particular situation and the organization-a process that can be quite labor intensive and time consuming. Like other models of personality, this perspective has both its strengths and its weaknesses. The model is relatively comprehensive in its attempt to develop a model of personality that draws on individual , situational, and cultural influences. Although some research findings support the model, 41 much more work is needed to fully test it. Moreover, its application to organizational settings needs to be examined. The interactionist models we discussed above explicitly look at how the nature of the individual's environment might interact with the individual's personality to influence behavior. These models emphasize the complex relationship between the individual and the setting. It is important to remember that they also emphasize that it is the individual's interpretation of key features of the situation that affects their behavior and that individual interpretations may have little or nothing in common. Indeed, individuals often interpret the same situation quite differently. These models suggest that managers must pay attention to how their employees interpret key features of their environments and understand what behaviors the employees feel are justilied or appropriate in those situations. Let ' s reconsider the opening vignette and our story of Peri . Taking the interactionist approach, Chris, her manager, might first look at Peri 's interpretation of the situation as well as Peri's personality. Is Peri's prickly personality coming into play here? Is she simply overreacting to what she sees as less-than-perfect work? Or is the situation itself truly what is driving Peri's reactions? Are there problems that really need to be addressed ? Clearly, a manager would need to do some detective work to discern the underlying causes of employee behavior. In reality, most behavior will be affected by multiple factors. Expert managers pay attention Lo the critical cues in each situation. Suppose you are Peri 's manager. What cues would you pay attention to, and what action scripts would you employ? This type of analysis helps managers develop an understanding of the rich complexity of human behavior, a skill that is especially critical in dealing with "difficult" people. One advice book gives examples of how to handle 30 different categories of difficult people in the workplace!42 Hopefully, we're only plagued with a few of them. DEALING WITH "DIFFICULT" PEOPLE When asked which work activities made them most uncomfortable, 73 percent of managers said that building relationships with people they dislike was their most worrying and troublesome chore. 43 Yet we have seen that effectively managing relationships with superiors, peers, and subordinates is one of the most critical tasks that managers face. -What can you do when you are confronted with a "difficult" person? Nigel Nicholson notes that managers are tempted to "sell" their viewpoint to that person or just give up.44 Neither of these strategies is likely to be effective. Instead , he suggests trying the following steps: 1. Create a rich picture of the problem person Remember that we tend to think that people l cause their own behavior, and we tend to downplay other causes. Think about the following when trying to analyze the causes of the behavior. • The problem person What motivates this person? What drives her? What obstacles are preventing him from achieving what he wants? What would happen if those obstacles were removed? In addition, you might consider how often this behavior has occurred. Has it occurred in similar situations? 45 • Yourself What might you be doing to encourage the problem behavior? Are you unknowingly rewarding some behaviors and punishing others? Is there something that you do that sets the person on the wrong track? 85 86 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK • The situation What might be causing both you and the problem person to behave poorly? Is there something happening in the organization that might have an impact? Has the company recently gone through layoffs? Is competition increasing? Have you gotten a new boss? Was there something that triggered this behavior? 2. Reframe your goals Try to think flexibly about what you want to happen. For example, consider a situation in which an employee is dealing with a large amount of email requests from a low-priority customer group. The e mployee is becoming more and more frustrated with the workload . He wants to stop answering these email messages and insists that he can ' t handle them any more. Instead of simply demanding that the employee complete the tasks, you might think about what you really want lo accomplish. You might decide that you want the employee to have less work but also meet the needs of the customers. By framing your goals in this way, you can open up possibilities that you might have ignored. For example, perhaps there are routine questions that could be answered in a Web page with Frequently Asked Questions (FAQs). 3. Stage the encounter Schedule a face-to-face meeting to discuss the issues. Acknowledge the person 's value and then describe the problem behavior as you see it in factual terms . Avoid saying things like, "You are so rude!" Instead, you might say, "I noticed in the last staff meeting that you interrupted other people five times in the first 15 minutes of the meeting." Clearly indicate that the problem behavior cannot continue and suggest that you would like to work together to find a solution that is acceptable to both of you. Then, begin to discuss possible solutions. 4. Follow Up Set aside time to monitor and reward progress or take corrective action. ( The purpose of this exercise is to help you develop your skills in handling situations with difficult people (Time allotted: 55-70 minutes). STEP 1. Role-Play Preparation (20-25 minutes) a. Form into groups of six members (preferably your learning groups). b. Select one person to play the role of Juana and one person to play the role of Joanna in the Donor Services Department at the end of the book. The remainder of the group will act first as advisors during the preparation stage and then as observers during the role-play. Two people should volunteer to help Juana prepare for the role-play, and two others will help Joanna. c. In your subgroup, discuss your answers to the case questions that you prepared before class. Discuss how Joanna or Juana should behave in the role-play. You can assume that Joanna has asked to meet with Juana privately in her office. Be sure to read the "Guidelines for Role-Plays" for tips on conducting the role-play and using the Observer Worksheet. ( \ CHAPTER 4 DECODING HUMAN BEHAVIOR AND PERSONALITY Guidelines for Role Plays ( Participation Tips • Read the case and pay careful attention to the character's actions, feelings, and thoughts. Why does this character act, think, and feel this way? • During your preparation, imagine how the characters in the role-play might act in different circumstances . Try to plan how you would respond . • During the role-play, let the assumptions that you made about the character guide your reactions . If you are confronted with an unexpected development, simply react as you think the character might react. Use your imagination! • Avoid looking at the instructions during the role-play. Once you start, just let yourself take over the role . • If you are assigned the manager role, use the role-play as an opportunity to practice your managerial skills. Assume that the situation is real and that the characters are really experiencing the situation. • In this case, if you are the difficult person, don't "ham it up" and exaggerate your role so much that it is impossible to deal with you. • Talk loudly enough so observers can hear. Observation Tips: • Pay attention to both content (what is being discussed) and process (how the participants behave and how the role-play progresses) . • Use the observer worksheet to help guide what you pay attention to in the role-play. Observe both what the participants do and how often the participants act that way. • When the role-play is over, you may be asked to give the participants feedback. If so, try to use the following guidelines for giving constructive feedback : ( • Start by discussing what went well during the role-play. • Before giving your own ideas about how the role-play might have been better, ask the participants what they would do differently if they had the chance to "do it over." • Focus on actual behaviors and be specific rather than evaluative. For example, "You abruptly contradicted her three times" rather than "You were demeaning!" • If possible, give specific recommendations about how the role-play could have been improved. • Ask for feedback about how you gave feedback! Facilitation Tips for the Instructor Leader: • Do everything you can to make the role-play seem real and help the participants become involved . Introduce the participants by their characters' names. Describe the setting discussed in the instructions as vividly and faithfully as you can . • Remind the participants that the instructions are the starting point; they should use those as a springboard for what happens in the role-play. • Minimize distractions so that the participants and observers can focus on the role-play. Adapted from D. Johnson and F. Johnson. Joiuiug foge1!1er. (Boston : Allyn and Bacon. 2003). l 87 Observer Worksheet a. Use the scale below to evaluate Joanna and Juana's role play performance: answer the numbered questions by writing the number corresponding to your evaluation of each participant in the appropriate boxes . Write out answers to the lettered questions in the appropriate columns. Write other observations in the Comments column. 3 2 Needs work 4 5 Satisfactory To what extent did the participants: Joanna Excellent Juana 00 00 ~ ~ c z Comments 0 m 1 . Create a rich picture of the other person? ;:o (/) ~ z0 a . What motivates the person? What role does personality play? What if-then rules does the person use? zG) 0c b. What obstacles does the person face? ;:o (/) c. m r- What are the other person's real goals? "'TI z0~ 2. Acknowledge how the participant's own character contributed to the problem? a. 9 I m ;:o Did the character unknowingly reward some behaviors and punish others? Is there something that character did that set the person on the wrong track? "'O m 0"'O r- m b. Are there other ways that the character is contributing to the problem? ~ ~ 3. Acknowledge the role of the situation? a. ;:o ;:><; What might be causing both characters to behave poorly? Is there something happening in the organization that might have an impact? b . Was there something that triggered this behavior? 4 . Discuss the other person's behavior rather than focusing on personal traits or attributes? b. Answer the following questions. What went well in this interaction? What needed improvement? Did you notice anything else that seems significant? ( -------.. CHAPTER 4 ( DECODING HUMAN BEHAVIOR AND PERSONALITY STEP 2. Role-Play ( 15 minutes) a. In this step, Juana will go to Joanna's "office" and they will enact the meeting . All other group members should observe the role-play and critique it using the Observer Worksheet. STEP 3. Debriefing the Role-Play (20-30 minutes) a. What role did personality play in Joanna and Juana's analysis of each other' s behavior? What about the role of the situation? What theories of personality did each person seem to be using to make sense of the situation? b. To what extent did Joanna and Juana try to follow the guidelines for dealing with difficult people? Did they : 1. Create a rich picture of the other person? 2. Understand what the other person's real goals were? 3. Discuss the other person's behavior rather than focusing on personal traits or attributes? c. Did you observe anything that seemed to trigger a positive reaction by Juana or Joanna? d. Did you observe anything that seemed trigger a negative reaction by Juana or Joanna? How could that have been avoided? e. Was there anything else that could be improved? On Joanna's part? On Juana's part'? f. Did Joanna and Juana arrive at an agreement? Do you think they solved the problem? Why or why not? g. What else did you learn from the role-play? ( 1. An individual 's behavior is influenced by characteristics of the individual, the job, the work 2. 3. 4. 5. 6. 7. l group, the organization, and the culture. A manager trying to understand an employee 's behavior needs to consider all of these. Personality can be defined as an individual's relatively stable characteristic patterns of thought, emotion, and behavior, and the psychological mechanisms that support and drive those patterns. Both nature (genetic) and nurture (environmental and situational aspects such as family, culture , and geographic location) factors likely play important roles in personality development. Trait theories of personality emphasize the components of personality, highlight the importance of individual characteristics in determining behavior, and de-emphasize the role of the situation or environment. Interactionist theories emphasize the importance of the characteristics of the situation as well as the nature of the individual in understanding and predicting behavior. The Five-Factor Model holds that personality is comprised of the "OCEAN" dimensions : • Openness to experience actively seeking out new and varied experiences; awareness of one's thoughts, feelings , and impulses and able to be attentive to many of them simultaneously. • Conscientiousness dependable and trustworthy; conform to social norms . • Extroversion outgoing, sociable, and assertive.46 • Agreeableness likable, cooperative, and considerate. • Neuroticism (also called emotional stability) chronic negative emotions such as worry, insecurity, self-pity, poor self-image, and mood swings. The Myers-Briggs Type Indicator (MBTI) is a personality profile partially based on psychologist Carl Jung's theory of personality. The MBTI suggests that there are four important components to personality that range along the following continua: 89 90 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK • Extroversion/Introversion (E/I) how the individual interacts socially. • Sensing/Intuiting (SIN) how people prefer to collect information. • Thinking/Feeling (T/F) how people evaluate information . • Judging/Perceiving (J/P) how people like to make decisions. 8. The conditional reasoning approach suggests that individuals interpret what happens in their social environment differently based on their individual dispositions . These differences result in different types of behavior because people use different justification mechanisms to decide how best to adjust to their environment. 9. The cognitive-affective processing system (CAPS) holds that personality is comprised of mental representations called cognitive-affective units (CAUs), defined as interpretations of people and situations, goals, expectancies, memories, and feelings. People differ in the content of these representations, in how accessible they are, and in how they are related to one another. These representations are affected by genetic, cultural, societal, and developmental factors. 10. When dealing with a "difficult" person, avoid trying to "sell" your viewpoint. Instead, use the following guidelines to diagnose and manage the situation : • Create a rich picture of the problem person, yourself, and the situation. • Reframe your goals to focus on what you really want to accomplish. • Schedule and carefully manage a face-to-face meeting to acknowledge the person's value, describe the problem behavior in factual terms, and discuss possible solutions. • Follow up by selling aside time to monitor and reward progress or take corrective action. -~ FOR EMPLOYEES • Employees who are skilled at decoding behavior recognize that it is a complex phenomenon that is a function of both the person and the situation. They understand that this applies to their managers as well as their peers . • When they try to understand why a person is acting in a particular way, they remember that we often overlook causes outside the individuals that influence their behavior. They always ask themself, "What other things could be causing this behavior?" • They try to discern what if-then rules their peers and their managers are using to make sense of situations. They should be especially sensitive when people react differently in seemingly similar situations (e .g ., criticism is accepted from managers but rejected from peers). • They recognize the influences on their own behavior. They try to understand how their personality, situations, and the way they interpret situations affect how they behave. FOR MANAGERS • Expert managers create a rich picture of all their employees. They try to understand their personalities and the if-then rules they use to respond to situations. • They systematically analyze the causes of employee behavior. They remember to pay attention to other characteristics of the individual, such as abilities and motivation. They check lo be sure that the job, group, and organizational characteristics are exerting the intended consequences on behavior. • They utilize their knowledge of cultural differences lo understand behavior. ( CHAPTER 4 DECODING HUMAN BEHAVIOR AND PERSONALITY FOR ORGANIZATIONAL ARCHITECTS ( • Organizational architects who understand personality design their employee selection system wisely. • They use personality tests cautiously when assessing employees. • They set up training programs in dealing with difficult employees for employees and managers. • They also provide training programs in cultural differences to help employees decode behavior. The topic of this assignment is to think back on a personality-related experience that was significant for you. Choose an experience that intrigues you and that you want to learn more about. A. Concrete Experience 1. Objectively describe the experience (who, what, when, where, how) (2 points) ( 2. Subjectively describe your feelings, perceptions, and thoughts that occurred during (not after) the experience. What did others seem to be feeling? (2 points) B. Reflective Observation 1. Looking back at the experience, what were the perspectives of the key actors (including you)? (2 points) 2. Why did the people involved (including you) behave as they did? (2 points) l 91 92 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK C. Abstract Conceptualization 1. Relate concepts or theories from the assigned readings or the lecture to the experience. Explain thoroughly how they apply to your experience. Please apply at least two concepts or theories and cite them correctly. (4 points) D. Active Experimentation 1. What did you learn about motivation from this experience? (I point) 2. What did you learn about yourself? (I point) 3. What action steps will you take to be more effective in the future? (2 points) E. Integration, Synthesis, and Writing 1. Did you integrate and synthesize the four sections? (I point) 2. Was the Personal Application Assignment well written and easy to understand? (I point) 3. Was it free of spelling and grammar errors? (2 points) ENDNOTES 1 M. Swarz and S. Watkins, Power Failure: The Inside Stol)' of the Collapse of Enron (New York : Currency Doubleday, 2003). 2 Ibid. Ibid. and B. McLean and P. Elkind, The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron (New York: Portfolio Penguin. 2003) . 3 4 Swarz and Watkins, Power Failure: The Inside Stol)' of the Collapse of Enron . 5 A. M. Paul, The Cult of Personality (New York: The Free Press, 2004) . D. C. Funder, The Personality Puzzle (New York : Norton, 2001). 7 G. Caprara and D. Cervone, Personality: Determinants, Dynamics, and Potentials (Cambridge: Cambridge University Press, 2000) . 8 L.A. Pervin , Current Controversies and Issues in Personality, 3rd ed. (New York : Wiley, 2002). 9 R. M. Guion and R . F. Gottier, " Validity of personality measures in personnel selection," Personnel Psychology 18 ( 1965): 135-64. IO 0 . John, "The Big Five Factor Taxonomy: Dimensions of Personality in the Natural Language and in Questionnaires," 6 CHAPTER 4 ( in L.A. Pervin, ed .. Handbook of Perso11ali1y TheOl:v and Research (New York: Guilford. 1990): 66--100. 11 R. R. McCrae and P. T. Costa, "Conceptions and Correlates of Openness to Experience:· in R. Hogan. J. Johnson. and S. Briggs. (eds.), Handbook of Personali1y Psychology (San Diego: Academic Press, 1997): 826-848. w Barrick. Mitchell. and Stewart, "Situational and Motivational Influences on Trait-Behavior Relationships." D. Watson and L. Clark. "Extravcrsion and Its Positive Emotional Core," in R. Hogan, J. Johnson , and S. Briggs. (eds.). Handbook of Personali1y Psychology (San Diego: Academic Press. 1997): 767-794. 22 l3 14 W. Graziano and N. Eisenberg, "Agreeableness: A Dimension of Personality." in R. Hogan. J. Johnson. and S. Briggs. (eds.). Handbook of Perso11ali1y Psychology (San Diego: Academic Press. 1997): 795-825. 15 D. Wiebe and T. Smith. "Personality and Health: Progress and Problems in Psychosomatics." in R. Hogan. J. Johnson. and S. Briggs. (eds.). Handbook of Personality Psychology (San Diego: Academic Press.1997): 892-918: L. Morey, "Personality Diagnosis and Personality Disorders." in R. Hogan. J. Johnson. and S. Briggs, (eels.). Handbook of Personali1y Psvchology (San Diego: Academic Press.1997): 919-947. 16 M. R. Barrick. M. K. Mount. and T. A. Judge. "The FFM Personality Dimensions and Job Performance: Meta-analysis of Meta-analyses." l111ernmional Journal of SeleClion and Assess111ent 9 (200 I): 9-30. 17 M. R. Barrick and M. K. Mount, 'The Big Five Personality Dimensions and Job Performance: A Meta-Analysis." Personnel Psychology. 44 ( 1991 ): 1-26; BaITick. Mount. and Judge. "The FFM Personality Dimensions and Job Performance: Meta-analysis of meta-analyses"; T. A. Judge. C. A. Higins. C. J. Thoresen. and M. R. Barrick, "The Big Five Personality Traits. General Mental Ability. and Career Success Across the Life Span." Personnel Psychology 53 ( 1999): 621-652: L.A. Witt, L.A. Burke. M. R. Barrick. and M. K. Mount. "The Interactive Effects of Conscientiousness and Agreeableness on Job Performance," .Journal of Applied Psychology 87 (2002): 164-169; L. D. Goodstein and R. I. Lanyon. "Applications of Personality Assessment to the Workplace: A Review," Journal of Business and Psychology 13 ( 1999): 291-322: G. M. Hurtz and J. J. Donovan. "Personality and Job Performance: The Big Five Revisited," Journal of Applied Psychology 85, (2000): 869-879; T.A. Judge and R. Iles. "Relationship of Personality to Performance Motivation: A Meta-Analytic Review," Journal of Applied Psychology 87. (2002): 797-807; M. R. Barrick, T. R. Mitchell, and G. L. Stewart. "Situational and Motivational Influences on Trait-Behavior Relationships." in M. R. Barrick and A. M. Ryan (eds.), Personalily and Work: Reconsidering 1he Role of Personality in Organizmions (San Francisco: Jossey-Bass. 2003): 60-82: J. W. Johnson, "Toward a Better Understanding of the Relationship Between Personality and Individual Job Performance," in Barrick and Ryan. (eds.). Personality and Work: Reconsidering the Role of Personality in Organizations: 83-120. is Barrick. Mount. and Judge. "The FFM Personality Dimensions and Job Performance: Meta-analysis of meta-Analyses." 93 19 Ibid.; M. R. Barrick. G. L. Stewart. and M. Piotrowski , "Personality and Joh Performance: Test of the Mediating Effects of Motivation Among Sales Representatives." Journal of Applied Psychology 87 (2002): 43-51: Barrick. Mitchell. and Stewart, "Situational and Motivational lnlluences on Trait-Behavior Relationships." 12 J. Hogan and D. Ones, "Conscientiousness and Integrity at Work." in Hogan. Johnson. and Briggs. (eds.). Handbook of Personalitv Ps.1-dwlogy: 849-872. ( DECODING HUMAN BEHAVIOR AND PERSONALITY 21 Pervin. Curren/ Contmversies and Issues in Personali1y. Caprara and Cervone. Personality: Deter111in{1111s, Dynwnics, and Po1entials. 23 Pervin, Curre111 Controversies and Issues i11 Personal in•. Caprara and Cervone, Personali1y: Determinants, Dyna111ics. and Potentials; Pervin. Curren/ Controversies and Issues in Personality. 24 25 D. P. Shuitt. "At 60, Myers-Briggs Is Still Sorting Out and Identifying People's Types," Workforce Manage111e111 82 (December, 2003): 82-85. 26 C. Bell. "What Type Are You?: If You Feel That Your Job Isn't For You. Taking The Myers-Briggs Test May Hold Some Of The Answers," The Guardian (December 8. 2003): 5. 27 J. Michael. "Using The Myers-Briggs Type Indicator As A Tool For Leadership Development? Apply With Caution," Journal of Leadership and Organizational S111dies 10 (2003): 68-81. 2 8 A. Overholt, '"A Nice Personality." Fast Co11111w1y 83 (April. 2004): 20. 29 The Myers and Briggs Foundation, www.mycrsbriggs.org. (accessed July 31 , 2005). :io Michael , "Using The Myers-Briggs Type Indicator As A Tool For Leadership Development? Apply With Caution." 31 R. C. Arnau, D. H. Rosen, and B. Thompson. "Reliability and validity of scores from the Singer-Loomis Type Deployment Inventory," Joumal of Analy1ical Psychology 45 (3) (July 2000): 409-426. This test is available from Moving Boundaries. Inc. , Gresham, OR. 32 J. Brockner. Self-Es1ee111 ton Books, 1998). a/ Work (Lexington. MA: Lexing- ·13 R. Christie and F. L. Geis. S111dies in Machiavel/ianis111 (New York: Academic Press. 1970). 3-1 J.B. Rotter, "Generalized Expectancies for Internal Versus External Locus of Control." Psychological Monographs 80 (609) ( 1966): whole issue. :i 5 T. A. Stewart, "Escape from the Cult of Personality Tests." For1une 137 (March 16. 1998): 80. 36 L. R. James and M. D. Mazerolle, Personality in Work Organizmions (Thousand Oaks, CA: Sage, 2002). 37 D. C. McClelland. H11111an Moti\'{/tion (Glenview, IL: Scott. Foresman, 1985). 38 James and Mazerolle, Personality in Work Organizmions. W.R. Mischel. "Toward an Integrative Science of the Person," Annual Review of Psychology 55 (2004): 1-22. 39 40 W. R. Mischel and Y. Shocla. "A Cognitive-Affective System Theory of Personality: Reconceptualizing Situations. Dispositions. Dynamics, and Invariance in Personality Structure," Psychological Review 102 (2) ( 1995) : 246-268; W.R . Mischel and Y. Shoda. "Reconciling Processing Dynamics 94 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK and Personality Dispositions," Annual Review of Psychology. 49 ( 1998): 229-258; Y. Shoda, W. R. Mischel. and J.C. Wright, "Intuitive Interactionism in Person Perception: Effects of Situation-Behavior Relations on Dispositional Judgments," Journal of Personality and Social Psyclwlogy, 56 (1989): 41-43; Y. Shoda, W. R. Mischel, and J. C. Wright. "The Role of Situational Demands and Cognitive Competencies in Behavior Organization and Personality Coherence," Joumal of Personality and Social Psychology 65 (1993): 1023-1035. 41 D. Cervone. "The Architecture of Personality," Psychological Review 111 (2004): 183-204. 42 M. Solomon. Working with Difficul1 People (Englewood Cliffs, NJ: Prentice Hall, 1990). 43 I. Sager, "Up Front," Business Week 3840 (July 7. 2003): 14. 44 N. Nicholson. "How to Motivate Your Problem People," Harvard Business Review 81 (2003): 56-65. 45 R. M. Bramson, Coping With Difficult People (Garden City, NJ: Anchor Doubleday. 1981 ). ( ( INDIVIDUAL AND ORGANIZATIONAL MOTIVATION OIUECTT JES By the end of this chapter, you should be able to: A. Explain and to apply the basic theories of motivation. B. Explain how managers and organizations can foster and reward employee motivation. C. Identify the characteristics of enriched, motivating jobs. D. Describe five methods ( l of job redesign. E. Understand what demotivates employees. Sixteen years ago, Fernando Velez was a shy 18-year-old farm worker earning $4.25 an hour milking cows in central California. He didn't speak English, had no health insurance, no bank account-no real future . He was a citizen of the United States but felt like a foreigner. Then, in 1989, Velez was hired for an entry-level position at Ruiz Foods, the nation's largest manufacturer of frozen Mexican food products. He had no idea that he would soon learn how to become a more productive American. Velez began taking educational courses offered at Ruiz Foods that taught him how to speak and read English and gave him other personal and professional tools that many people take for granted . Today, Velez is a packaging supervisor at Ruiz, overseeing 150 employees. He earns a respectable living. He's also earned something even more valuable-self-respect. "I used to be intimidated because I couldn't speak English. When you don't speak English in this country, your opportunities are limited," says Velez, who also met his wife at Ruiz Foods. "The company provided me with one-on-one instruction for about four months. Those four months opened the door for me to learn what the United States truly had to offer me. Sometimes I think about it and I'm amazed at how far I've come." Nurturing and educating employees is more than an after-hours benefit at Ruiz Foods. It's a practice that is at the very heart of the company-and has a very real impact on its success. In short, taking extraordinary steps to help employees makes good business sense, says Fred Ruiz, chair and co-founder of Ruiz Foods. 95 96 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK "Over the years, we 've created a trust between the company and the people," says the 62year-old Ruiz, whose 1,900-member workforce is nearly 90 percent Hispanic. They trust usthat we're going to take care of them, we're going to provide them with good benefits and a good environment. And we trust that they're going to make good products, that they're going to work very hard and protect our company. "I learned a long time ago that in order to be successful, you have to rely on the power of people," he continues. "We solve all of our problems through our people. And we achieve all of our success through our people." At Ruiz Foods, which recently celebrated its 40th year in business, employees are called " team members." Hundreds of them have been given the opportunity to improve their professional and personal lives by attending classes at the company's headquarters in Dinuba, California. The on-site education center functions in a typical classroom setting, with paid instructors. It is free to all employees and offered at various times throughout the day to accommodate staggered work shifts. The classes provide a twofold function : • Helping employees function in the day-to-day world outside work, by teaching them English, how to count money, how to make change, how to open a checking account, etc. The company also hosts health fairs to educate employees on proper nutrition and on how to decrease the risk of diabetes and other diseases. • Giving employees necessary professional tools to climb the company ladder, including classes on leadership, communication, and computer training to operate the numerous machines in the plant. "The amount of pride and self-esteem that this creates for our team members is unbelievable," says Ruiz. Making the most of every opportunity made the unlikely 40-year Ruiz family journey possible. It began when Fred and his father, Louis, used a tiny electric mixer, a cooking pot, a small chest freezer, and authentic Mexican recipes from Fred's mother, Rosie, and started selling frozen enchiladas and burritos to retail outlets through central California. Ruiz Foods has taken giant strides in recent years . The company's 350,000-square-foot plant in Dinuba has around-the-clock work shifts to produce 151 million chimichangas and 293 million taquitos per year. The company is building another facility in Texas and was the #2-ranked Hispanicowned manufacturing firm in the United States and was selected for the Small Business Administration 's Hall of Fame. Ruiz Foods sells more than 180 frozen-food products under the El Monterey brand throughout the United States and Canada. Incredibly, all of the ir products are still hand-rolled . A tour of the plant reveals not only a well-oiled machine at work but also a family-like atmosphere. The Ruiz family insists on an honest day 's work, but they also give a lot in return. Two years ago, the company created a housing program called Una Casa Para Mi Familia ("A House for My Family"), which helps employees and their families learn the process of buying a home. Two years ago, the company came up with the Birthday Club. Eight times per month-each and every monthcompany vice presidents can be found greeting employees and lending an attentive ear anytime from 4 A.M. to midnight, depending on which work shift is celebrating. They commemorate team member birthdays with gifts, cake, and, of course, food. During this time, employees are encouraged to give positive or negative feedback about their work experience. "It allows us to shake hands with each and every team member throughout the year. We try to communicate the company values . But if people feel like we 're not operating according to these values, we have an open-door policy." The company has more than 300 employees who have been with the team for more than I 0 years-many have remained for more than 30 years. Nearly I 0 percent of the workforce is made up of second-generation employees. "Every time that we have brought in a new piece of equipment that is going to eliminate jobs, we tell them that they should never be threatened by progress," Fred says. "We have to be more productive or else we'll lose our competitive edge. But at the same time, we've never fired anybody because of automation." ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION ( It's all part of the family environment that father and son spent years cultivating. "You 've got all these people who work very hard for you," says Fred. "We've got everybody here, so why not take advantage of that by teaching them how to write a check, or how to borrow money, or reading or writing or English. It's a no-brainer. That's my job as the head of a company. How can I improve the lives of our team members'!" Even seasoned employees, such as production supervisor Rosa Alexander, continue to receive off-the-job training. "We continue to take leadership courses on improving our communication skills, how to deal with difficult people , team building, and how to communicate with coworkers," says Alexander, who began her career at Ruiz 24 years ago as an entry-level packer. She now oversees a 200-person crew. "If you really want to put forth the effort, the company is more than willing to go the extra mile for you. They show me the same respect today as they did years ago. You are never treated like just another number around here." Source: This at1icle was excerpted and adapted with permission from M. E. Stroder. "The Winning Recipe" . The Cosico C(}/111ec1i1111. ( (July 2005): 20-22. My boss has a couple of habits that drive me crazy. Ifs/he would just change them this would be a great place to work. Oh, that I could be the boss for one day and he be the subordinate . I know what I'd do in a flash. Don't get me wrong, I like working here. It's just a couple of those habits. Do you ever wish that you could be the "boss for a day"? Do you long for the genie to come out of the bottle or for the good fairy to grant you three wishes? Your first wish would be to change your boss, your second to modify the way he behaves at times. You have that wish. It 's called behavior modification-the power to change (modify) the way your boss behaves. And the technique is simple if you will merely utilize the five, easy to follow, steps of positive reinforcement: • • • • • Understand the purposes of positive reinforcement. State the undesired behavior. State the desired behavior. Create an opportunity for the desired behavior. Give verbal praise. UNDERSTAND THE PURPOSES OF POSITIVE REINFORCEMENT Just because you are the subordinate and he is the boss does not necessarily mean that you are forever under the whims and helpless control of your boss 's every habit. It merely means that your "tool bag" is smaller than his and at times you have Lo be very skillful in using the few tools that you have available. Perhaps the most powerful tool in your bag is positive reinforcement. One reason to utilize positive reinforcement is to change an undesirable behavior to a desirable behavior. Once the boss begins exhibiting the desired behavior, then positive reinforcement is utilized to maintain the behavior. STATE THE UNDESIRED BEHAVIOR At this step you want to clearly understand exactly what behavior to change. This is accomplished by specifically stating the undesired behavior that you want your boss to change. Two examples will help illustrate the process. l • You: (to yourselt) Your boss comes to you several times each day and checks your work. • You: Your boss frequently asks you to do things at the last minute, not giving you enough time to do the work properly. 97 98 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Resist the temptation to dwell on this step. To linger will change the whole tone of this skill from "positive" to "negative." The key to successfully utilizing this procedure lies in accomplishing this step in the shortest amount of time. Merely state it and quickly move to the next step. ( STATE THE DESIRED BEHAVIOR Specifically state the desired behavior that you want your boss to show. • You: (to yourself) You would like your boss to check your work once each day at the designated time. • You: You want your boss to give you things enough ahead of time to do them right, or allow you to get others to help. These become your goals. When your boss demonstrates this behavior, you'll know that you have succeeded. The good fairy actually can grant wishes, or perhaps you're the good fairy. CREATE AN OPPORTUNITY FOR THE DESIRED BEHAVIOR This can be accomplished in two ways. Either create an opportunity where your boss will show the desired behavior, or wait for it to occur naturally and then reinforce it. In order to create the opportunity, your boss must first be aware of the particular behavior that is bothering you. This can only be achieved by you diplomatically explaining both the undesired behavior and the desired behavior. In stating the undesirable behavior you must be careful to talk strictly about the behavior and refrain from discussing his personality. By talking about the observed behavior, you increase the likelihood that he can discuss it without becoming emotionally involved. If you choose to attack his personality, then you naturally will instigate a battle which can easily escalate to a war. Second, you need to let the boss know how this makes you feel. Without the insight to your inner feelings , he is unable to share or understand the impact that this has on you. Let's return to the two examples presented earlier: • You: I wanted to chat with you about a minor thing that at times bothers me. Frequently during the day you check me and my work. Checking my work (notice we 're talking about a behavior and not his personality - so important), and I know it's probably a silly FEELING of mine (giving him an "out" that you will cleverly take away from him in a minute), makes me FEEL as though I'm not capable of doing my job, to both our satisfactions, without some outside monitoring (behavior - not personality). • You: I'm glad we have this chance to talk because there's something I need to share with you. Frequt:ntly, I'm asked to do things without enough lead time to do them properly. This makes me feel inadequate because when they don't get done or don ' t get done properly, I feel that this reflects on my ability, and in turn I feel incompetent. Now we can return to creating an opportunity where your boss will show the desired behavior or waiting for the opportunity to occur naturally. Examples will clarify how this can be accomplished. • You: Perhaps you could try checking me once a day for a couple of days to see how that works. or • You could wait for an opportunity when you know circumstances will allow your boss to be able to check you only at the end of the day. This could be when he is tied up on a project, in a day long meeting, or out of the office for most of the day. I \ '- CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION ( • You: It would help me greatly if you could give me more lead time. or • When you anticipate a rush job, as is often the case, you can go to your boss and get the rush job early. or • You can wait for a Lime when your boss just happens to give you enough time on a rush job. or, if that never happens • You can select a Lime when he gives you a liLLle more time than he normally gives you but it still is not enough Lime. (Here you are having Lo select a behavior, while not totally the desired behavior, that tends towards the desired behavior. This is the most difficult behavior to reinforce, but that 's jumping ahead of ourselves.) You ' ve got the idea. Somehow, some way, you arrange for the desired behavior to occur. HURRAY! Your problems are forever solved . You knew the good fairy would cause you to live happily ever after .. . WRONG .. . We've left out the most important step, positive reinforcement-that super glue that will forever bind his new found behavior to the bag of tools that he readily uses. GIVE VERBAL PRAISE ( When the desired behavior is shown, give positive reinforcement-give it immediately after the desired behavior is shown-give it every Lime the desired behavior is shown in order to change the behavior and have it become second nature Lo him. Once he has internalized his newfound behavior (note that HE has done all this, and that's fine, you're big enough Lo let him think that he did it), you merely need Lo sporadically give positive reinforcement Lo him in order to maintain it. He'll probably take credit for it again . To give positive reinforcement you do three things: • State the desired behavior. • Indicate why you like the desired behavior - that is, tell him how it makes you FEEL. • Give verbal praise. The first two of these can be illustrated together. • You: Today you checked my work just once. I think it's working great. I feel that you trust my ability to do the work and that in turn gives me greater confidence. A side benefit that I didn't realize is that I have more time because I don't spend as much Lime with you and I'm not wasting time wondering when you'll be coming by. This in turn allows me Lo accomplish still more. I'm sure that you also appreciate having some extra Lime . • You: You've been consciously giving me some additional lead time. I'm beLLer able Lo complete the work and have it ready for you when you need it. I appreciate that and it makes me feel good to know that you value my needs. Lastly, you merely give verbal praise. Again, with the three examples, all you need Lo say is • You: Thanks a lot. Giving positive reinforcement can do wonders when it comes to modifying your boss's behavior! Source: This anicle was excerpted from .. Giving positive reinforcement to your boss : how to change your boss", by J. T. l Knippen. and T. B. Green in Mwwge1111'11/ /)evefup111e111 Ret•iew IO(l) (1997: 103-105) (c) MCB University Press http ://www.emeraldinsight.com/mdr.htm " Republished with permission. Emerald Group Publi shing Limited." 99 100 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK ( A. B. C. D. Read "A Winning Recipe" and "How to Change Your Boss." Fill out and score the Job Survey below. Answer the questions at the end of the Donor Services Department on page 676. Be prepared to take on the role of both Sam and Elena in the Motivation Counseling Session Role Play on page 114. E. As you read the chapter, prepare a list of the motivation cues that relate to the Donor Services Department. Job Survey Here are some statements about your job. How much do you agree with each? My Job Strongly Disagree Disagree Slightly Slightly Disagree Undecided Agree Agree Strongly Agree l . provides much variety 2 3 4 5 6 7 2 . permits me to be left on my own to do my own work 2 3 4 5 6 7 3. is arranged so that I often have the opportunity to see jobs or projects through to completion 2 3 4 5 6 7 4 . provides feedback on how well I am doing as I am working 2 3 4 5 6 7 5. is relatively significant in our organization 2 3 4 5 6 7 6 . gives me considerable opportunity for indepen· dence and freedom in how I do my work 2 3 4 5 6 7 7 . gives me the opportunity to do a number of different things 2 3 4 5 6 7 8 . provides me an opportunity to find out how well I am doing 2 3 4 5 6 7 9. is very significant or important in the broader scheme of things 2 3 4 5 6 7 l 0 . provides an opportunity for independent thought and action 2 3 4 5 6 7 l l . provides me with a great deal of variety at work 2 3 4 5 6 7 CHAPTER 5 My Job (" Strongly Disagree Disagree 101 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION Slightly Slightly Disagree Undecided Agree Agree Strongly Agree 12. is arranged so that I have the opportunity to complete the work I start 2 3 4 5 6 7 13 . provides me with the feeling that I know whether I am performing well or poorly 2 3 4 5 6 7 14. is arranged so that I have the chance to do a job from the beginning to end (i.e., a chance to do the whole job) 2 3 4 5 6 7 15 . is one where a lot of other people can be affected by how well the work gets done 2 3 4 5 6 7 Scoring: Skill variety questions 1,7, 11 Autonomy questions 2,6, l 0 Task identity questions 3, 12, 14 questions 5,9, 15 Feedback about results questions 4,8, 13 Task significance ( ( l Concern over productivity levels raises the question of how well companies can compete in both the domestic and global marketplace. One of the key factors that affects productivity is motivation, which is defined as the psychological forces that determine the direction of people's behavio1; their level of effort, and level of persisten ce. 1 Motivation has always been an issue of concern for managers; it has long been recognized as one of the basic managerial functions. There persist, however, some commonsense notions about motivation that are misleading and just plain wrong. First among these notions is the idea that there are persons who are not motivated . This is incorrect. Every living human being is motivated. What managers really mean when they say that a worker is not motivated is that the worker is not motivated Lo do what the manager wants the worker to do. The same "lazy" employee who just goes through the motions at work may stay up all night laboring with great intensity on a sports car or devote many hours outside of the job to charity work. Although it is true that some people are more energetic than others, the most important factor Lo consider is how this energy is directed-toward what goals and objectives. The primary task for managing motivation, therefore, is channeling and directing human energy toward the activities, tasks, and objectives that further the organization's mission. A second erroneous idea about motivation is that managers "motivate" workers and that motivation is something you do to someone else. Motivation is an internal state that directs individuals toward certain goals and objectives. Managers cannot directly influence this internal state; they can only create expectations on the part of employees that their motives will be satisfied by doing the organization's work and then provide the rewards that satisfy the employee's needs. 102 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK This distinction may appear subtle, but it is important because failure to understand it often leads managers to attempt to use motivation to manipulate employees. Manipulation is a very inefficient way of managing motivation because it requires that you as a manager maintain control of the carrot and stick. As a result, you must spend time scheming about how you will motivate those whom you supervise on a day-to-day basis. A more effective way of managing motivation is through understanding. If you understand the needs and objectives of your subordinates and even your peers, you can work with them to develop an equitable psychological contract that recognizes their particular desires and creates conditions where these motives can be satisfied in the work setting. The same is true of your own motivation. By becoming more aware of your own motives and desires, you can better organize your work and life activities to achieve satisfaction and productivity. The sources of motivation are both intrinsic and extrinsic. 2 Intrinsic behavior is performed for its own sake. The work itself is pleasurable, and we see examples of this in people who love the work they do. It is common to hear people say, 'Tm always surprised I get paid for doing something I enjoy so much!" This is a cue that they are intrinsically motivated . In contrast, extrinsic behavior is performed because of the consequences it brings-material or social rewards or even the avoidance of punishment. Salary, or the social prestige of the large house and luxury car it allows a person to buy, rather than the actual job, are examples of extrinsic rewards that motivate behavior. When a person does not seem to enjoy influencing and leading others, this can be a cue that their interest in a managerial position may come from extrinsic sources. Of course, people can be motivated for both intrinsic and extrinsic reasons. For example, a highly paid CEO may be very motivated by doing the job itself and also be motivated by the amount of pay and other extrinsic rewards she receives. A helpful heuristic based on research findings is that Performance= Ability x Motivation. We all know brilliant individuals who struggle to get out of bed in the morning or who begin projects but cannot bring them to closure. By contrast, we have also seen people who work very diligently, but that does not fully compensate for their lack of innate talent. The most reliable predictor of job performance and career success is cognitive ability. 3 This means that intelligence should be a major criterion when we select job candidates. Nevertheless, determining candidates' motivation level is also crucial. Conscientiousness, a stable personality trait, is sometimes used to operationalize motivation. For example, a study of early career success in MBA graduates found that those who were both smarter and worked harder than their peers were more successful in their initial job search and earned higher salaries with more rapid pay raises and more promotions. 4 This may seem obvious, but not all hiring decisions hone in on these elements. Other factors may also contribute to career success-for example, researchers are currently looking more closely at the role of emotional intelligence, even in jobs that do not seem to require "people skills" . To solve performance problems, we have to be able to discern whether we are dealing with a deficiency in ability or motivation or demotivators in the organizational context, because the resulting action scripts are very different. We will discuss ways to enhance ability in detail in Chapter 20, Performance Management and Appraisal. Our understanding of human motivation is crucial because it explains why people behave as they do . It tells us why two people with the same job, the same pay, the same tenure in the same organization put in very different levels of effort. Knowledge about motivation has increased substantially over the past decades. Simplistic theories arguing that people work primarily for money or primarily for social gratification have been replaced with more complex theories of human nature. Even so, no single theory is adequate to explain human motivation, which is often the result of a complex set of needs and factors. Effective managers have an understanding of the various theories in this chapter and rely upon those that are most helpful in a given situation. The analogy that best describes how experts approach motivation is a mental rolodex of theories and mental models that they sort through until they find a match that explains the situation facing them. When people ask our help in decoding why an individual does not appear to be motivated to do their job, we generally take a close look at four areas: the person-job-reward fit, job design, the role of the leader, and the role of organizational policies and rewards. ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION THE PERSON-JOB-REWARD FIT An art institute could not figure out why they had such high turnover among the clerks who processed course registrations. Interviews with current and former employees revealed minor, typical complaints, but we were struck by the recurring comment that what they really liked was art. When asked what drew them to the job, they answered that they wanted Lo be around art and to be connected with the institute, an organization they greatly admired. They had accepted the job hoping that it would transition into something more interesting , which was not possible given their skills and the organization's needs. When that did not happen and non-stop data entry and clerical work sucked the life out of their artistic souls, they quit. The most important cue in all the interview data was their love of art. Fixing minor problems or even redesigning their jobs to be more satisfying would not correct this basic lack of person-job fit. The recommended action script was simple-stop hiring people whose needs would never be met by this job and develop a hiring profile more suited to the actual task, in other words, people who enjoy clerical work. A key step in understanding motivation problems is to identify the factors unique to an individual that energize, direct, sustain, and stop behavior. Co/lfe/lf theories focus 011 the specific internal needs that motivate people. Failure to understand the.se needs may mean that individuals unwittingly seek jobs that leave them profoundly unmotivated. Or managers may promote employees into jobs where they fail or become very dissatisfied. Content theories include Maslow 's hierarchy of needs and McClelland's need theo1y. The tenets of some theories (that of Maslow and Herzberg) have been disproved by subsequent research 5 or do not apply in all cultures. 6 Therefore, we will summarize the most useful, reliable contributions of content theories. ( l Maslow identified the following needs. 7 Physiological needs rerer to the basic needs like food, water, and shelter that are necessary for survival. Organizations satisfy this need by providing salaries and wages so employees can live adequately. Security needs are defined as the need for security, stability, and protection from physical or emotional hmm. Organizations satisfy this need by providing pension and health care plans, career paths within the organization, and a safe work environment. Social belonging needs reflect the human need for social interaction , friendship, affection, and love. Organizations can fulfill this need by permitting interaction with colleagues, work team structures, social and sports facilities, and parties. Self-esteem is the need to reel good about oneself and to be respected, appreciated, and recognized by others. Organizations can satisfy this need by providing feedback and recognition for high performance and accomplishments, seeking and respecting employee input, making employees visible to others (customers, board members, industry) and promoting them. Selractualization refers to the need people have to realize their rull potential. The military recruitment poster, " Be all that you can be" captures the idea or self-actualization. Organizations fulfill this need when they allow employees to use their skills and talents fully at work. Entrepreneurs who left large organizations to work for themselves so they could use more of their talents are good examples of people who are motivated by a strong need f(x self-actualization. Maslow's theory is typically called the ''Hierarchy of Needs" because it stated that the needs are arranged in a hierarchy (starting with physiological and progressing through security, social, self-esteem, and self':.actualization), and that lower order needs must be satisfied before higher level needs can be addressed. Although research on the theory has failed to suppport the existence of a need hierarchy, Maslow's theory can be useful in helping managers understand different types of human needs. Not everyone has the same needs, nor are these needs given equal importance in different cultures.8 For example, the security need is more important than self-actualization in Greece and Japan. Social needs are more important in collectivist African countries than the self':.esteem and selt':.actualization needs that are more figural in an individualistic culture like the United States. Social needs m·e also more important in the Scandinavian countries where quality of life is generally more highly valued than career success. In a study of eight different countries, however, self-actualization was more important and security was less important to highly educated people than to their less educated 103 104 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK colleagues.9 In lesser-developed countries, where more people live at the subsistence level , physiological and security needs are very important. When working with people from another culture, managers should be acutely aware that needs and their relative importance may differ. Psychologists, most notably David McClelland, have made a great deal of progress over the past 40 years in scientifically measuring and defining human motives. 10 McClelland began by looking not at behavior but at the way people think and feel. He used the Thematic Apperception Test (TAT), which asks subjects to write stories in response to pictures; the thoughts in these stories are content-analyzed to reveal categories of dominant themes. McClelland and his colleagues found evidence of three human motives: need for affiliation, need for power, and need for achievement. Most people have a degree of each of these motives in their thoughts but seldom in the same strength. McClelland states that these motives are learned from our parents and culture. He discovered different motive patterns for different cultures. For example, the power motive is very pronounced in Latin America where power and control are dominant cultural themes. Because of its projective nature , the TAT test has been used successfully with people from different cultures. Nevertheless, Hofstede notes that the word achievement is not readily translated into all languages , and the need to achieve requires a certain tolerance of risk and concern with career success that is not found equally in all cultures. 11 The need for power (n-Power) is defined as the need to influence and lead others and be in control of one's environment. A high need for power is very common among middle- and upperlevel managers because, by definition, their job is to influence people and organizations. A strong need for power can be satisfied by working in professions and positions that allow people to influence and lead others, such as management, politics, police work, the military, and the law. There are two faces of the power need . The positive face is socialized power, which is influence used for the good of others. People driven by a need for socialized power seek a management position or political office to make their organizations better so that others will benefit. The negative face is personalized power, an unsocialized concern for personal dominance. People with the need for personalized power have less inhibition or self-control, and they exercise power impulsively. According to McClelland and Burnham 's research, subjects with a high need for personalized power were often more rude, drank to excess, engaged in casual sexual exploitation (scoring), and collected prestige symbols like expensive cars. 12 Dictators and people who establish work fiefdoms are usually motivated by personalized power. An international health institute had a matrix structure in which employees had two bosses-one in their functional area and a project boss. The head of the community outreach department was driven by a need for personalized power. He established a fiefdom and engendered a strong sense of loyalty in his team members, but their loyalty was to him rather than the organization. As a result, the project bosses and team members complained frequently that the entire community outreach department was uncooperative. Thus, the matrix structure did not work until he retired and was replaced. The need for affiliation is the desire for friendly and close inte17Jersonal relationships. People high in n-Affiliation prefer cooperative situations to competitive situations, and they seek relation ships involving a high degree of mutual understanding. As with the power motive, there are two faces of this need. The positive face, affiliative interest, is a concern for interpersonal relationships but not at the expense of goal-oriented behavior. People motivated by affiliative interest value good relationships and work at maintaining them, but their concern with relationships does not prevent them from giving negative feedback or making tough decisions. The negative face of n-Affiliation is affiliative assurance, a concern with obtaining assurance about the security and strength of one's relations/zips and avoiding rejection. According to Boyatzis, 13 managers with a strong need for affiliative assurance look for proof that others are committed to them and avoid issues and conflicts that might threaten the stability of the relationship. They seek approval from others and devote more energy to maintaining relationships than to achieving work goals. They worry about being disliked. Although a high need for affiliation does not correlate with job performance and is found more often in supervisors than high-level leaders, people with a need for affiliative interest make ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION ( ( a valuable contribution by creating a friendly, cooperative atmosphere at work. High n-Affiliation managers spend more time communicating with others than do managers high in either n-Power or n-Achievement 14 and are good al creating the networks that are crucial for success in many organizations. 15 The need for achievement is a need to acco111plish goals. excel, and strive continually to do things better. Persons high in n-Achievement want Lo take personal responsibility for their success or failure, like to take calculated (moderate) risks, prefer situations in which they get immediate, concrete feedback on how well they are doing, and have a single-minded focu s on accomplishing a task . Their sense of personal responsibility may keep them from delegating authority unless they value developing a nd empowering subordinates. Executives high in n-Achievement tend to have fewer meetings than other executives and prefer to work alone, despite the fact tha t many organizational problems would be better solved by collaborative effort. 16 Many entrepreneurs and small business owners are high in n-Achievement. What pattern of needs is found in effective managers? Research results show that a manager needs a reasonably high n-Power to function as a leade r. 17 Although many of today's managers seem uncomfortable talking about power, their job consists of influencing other people to get the work done . The most effective managers in McClelland and Burnham 's research scored high on the need for power and self-control and low in the need for affiliation; they called thi s gro up institutional managers because of their concern for the organization. 18 Their direct reports exhibited more team spirit, responsibility, and clarity on organizational goals than employees with bosses who scored high in n-Affiliation or n-Achieveme nt. The institutional managers also had greater maturity and used a democratic coaching style; rather than create dependence in their followers, they empowered them . Both these factors helped prevent them from using power for personal aggrandizement or manipulation. The institutional managers were also less defensive about their ideas and more willing to take advice from ex perts, more willing to self-sacrifice for the good of the organization, had a longer-range view, demonstrated a strong concern for justice and equity, and accumulated fewer material possessions . 19 In AT&T's longitudinal, 20-year study of managers, people with a high need for power and a low need for affiliation were promo ted to a higher level than managers with other profiles .20 In small or decentralized companies, however, success depends more on a high need for achievement than a high need for power. The nature of such companies with their focus on constant improvement and cost-efficient growth is a better fit for people with a high need for ac hievement.21 However, a high need for both power and achievement has been found in effective lowand middle-level managers.22 A manager's effectiveness depends not only on his or her need for power but also on the other values he or she brings tot.he job. John Andrew 's classic study of two Mexican companies is striking in this regard .23 Both companies had presidents who scored high in n-Power, but one firm was stagnating whereas the other was growing rapidly. The manager of the growing company, although high in n-Power, was also high in n-Achievement and was dedicated to letting others in the organization satisfy their own needs for ac hievement by introducing improvements and making decisions on their own . The stagnant company, although well capitalized and enjoying a favorable market, was constantly in turmoil and experienced a high rate of turnover, particularly among its executives. In this company, the president's high n-Power, coupled with highly authoritarian values, led him to make all the decisions himsel f, leaving no room for individual responsibility on the part of hi s personnel. A comparison of motivation scores of upper-l eve l managers of the two companies showed that the dynamic company's managers were significantly higher in n-Achievement than were those of the stagnant company, who tended to be more concerned with power and compliance than with individual responsibility and decision making. People can be motivated by a variety of these needs, and the salience of particular needs can vary. Alderfer argued that satisfied needs do not motivate behavior, although he s tipulated that changing conditions may turn a previously satisfied need into a rnotivator. 24 For example, individuals' security needs may have been met earlier in their career, freeing them to focus on other needs until downsizing and proposed changes in pens ion and health care plans made security needs figural once again. Content theories show us that people have very different mental maps when it comes to motivation. Not everyone is motivated by the same needs, and certainly they are 105 106 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK not motivated by the same needs we are. As a result, they behave di fferently and will respond differently to work outcomes and rewards. Rewards that fulfill innate human needs are more likely to motivate behavior. However, their efficacy also varies over time. Currently, some employees feel so overworked that they prefer time off to a raise. When employees at Bronson Healthcare Group in Kalamazoo, Michigan told management their lives were too busy (85 percent of its employees are female) , management listened and adopted a concierge service. The service helps with errands like dry cleaning pick-ups, car servicing, travel plans, and shopping. Thus, this particular job reward is carefully designed to fit their needs . Southwest Airlines has a profit-sharing plan that invests a certain percentage of the firm 's profits in company stock for employees. As a result, several employees with 18 or 20 years of service became millionaires. Joe DESIGN Although individuals come to organizations with previously learned motive patterns and unique needs, this is only part of the motivation puzzle. The intrinsic motivation of employees is very important, but job motivation is also affected by the environment in which workers find themselves, and, in particular, the way in which their jobs are designed . c:h (~ ! "() <:f () f is i·i c~ Based on what we know about motivation, alienation, and worker/commitment, job situations that motivate people and lead to job satisfaction have the following characteristics: 1. Skill variety-The degree to which a job requires a range of personal competencies and abilities in carrying out the work. 2. Task identity-The degree to which a job requires completion of a "whole" and identifiable piece of work, that is, doing a good job from beg inning to end with a visible outcome. 3. Task significance-The degree to which the job is perceived by the employee as having a substantial impact on the lives of other people, whether those people are within or outside of the organization. 4. Autonomy-The degree to which the job provides freedom, independence, and discretion to the employee in scheduling the tasks and in determining the procedure to be used in carrying out the task. 5. Job feedback-The degree to which carrying out the job-related tasks provides the individual with direct and clear information about the effectiveness of his or her performance.25 Skill variety, task identity, and task significance are geared toward increasing the sense of meaningfulness that is threatened whenever jobs are divided into small, repetitive segments. Granting employees autonomy over their jobs encourages them to feel responsible (powerful and in control) for the outcome of their work. It also reduces legalistic approaches to work, for example, "That's not my job" or "If they 're gonna give me a robot's job to do, I'm gonna do it like a robot! Anyway, it just lowers my production record to get up and point out someone else's error." 26 Job feedback allows employees to receive immediate feedback from the work itself, not from a supervisor. This relates to one of the conditions McClelland found to be most favorable for people with high needs for achievement-immediate concrete feedback that allows them to adjust their performance to meet their personal and/or organizational goals. Jobs that involve dealing with others and have friendship opportunities are ways of encouraging social belonging and combating social isolation. Jobs with these characteristics are termed "enriched." In their Job Characteristics Enrichment Model , which appears in Exhibit 5-1, Hackman and Oldham 27 show that the positive outcomes of job enrichment characteristics are high internal work motivation, high-quality work performance, high satisfaction with the work, and low absenteeism and turnover. However, these outcomes occur at maximum level only when all three of the critical psychological states are experienced: (I) experienced meaningfulness of the work, (2) experienced responsibility for the work outcomes, and (3) knowledge of the actual results of the work. Hackman and Oldham also note that there are three types of individual differences that must be taken into consideration ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION ( Core job characteristics Skill variety Task identity ~ Critical psychological states Personal and work outcomes Experienced meaningfulness of the work High internal work motivation High-quality work performance Task significance Autonomy Job feedback ~ Experienced responsibility for outcomes of the work ~ Knowledge of the actual results of the work High satisfaction with the work Low absenteeism and turnover Individual differences • • • ( l Knowledge and skill Growth-need strength Satisfaction with contextual factors EXHIBIT 5-1 Job Characteristics Enrichment Model Source: J. R. Hackman and G. R. Oldham, WORK REDESIGN© 1980. p. 90. Reprinted with permission of Pearson Education. Inc .. Upper Saddle River, New Jersey. when planning job redesign projects. The first is the knowledge and skill of the employee-is the employee capable of performing an enriched job? The second is growth-need strength, which refers to the individual 's personal need for learning, self-development, and challenge. People with low growth needs may well prefer repetitive jobs to enriched ones. The final individual difference is satisfaction with contextual factors . Job redesign efforts are unlikely to be successful if employees are dissatisfied with other conditions at work . Ensuring that the work situation is one that employees find motivating and involving is a major, ongoing task of managers. Because of the close relationship between well-designed jobs and productivity, it is an area that managers and organizations cannot afford to overlook. It is possible to design jobs that are more congruent with human needs and motivation. The major ways of doing so are briefly described later. Job rotation programs move people from one job to another periodically to decrease their boredom and allow them to learn different skills. Job enlargement policies increase the number of tasks performed by an individual. In an assembly-line example, a worker would perhaps install an entire door panel rather than securing only one tiny part of the door. Herzberg called the addition of interrelated tasks ''horizontal job loading ." 28 Job enlargement can meet employees' motivational needs because it allows more ownership over a product or process and decreases monotony. It also provides an opportunity for workers to feel more competent, as they may get to use more of their skills. Being responsible for a larger task may increase the meaningfulness of the job in the worker's eyes. However, remember the comment of one critic, "You combine seven boring jobs and what do you get?" Job enrichment methods attempt to change the nature of the job by broadening responsibilities, giving more autonomy for decision making, creating client systems and direct feedback 107 108 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK systems, and generally enlarging the scope of jobs. Herzberg called this type of job design "vertical job loading" because it also includes tasks formerly performed by someone at a higher level-planning and control functions. 29 For example, a sales support clerk who formerly handled only one piece of the paperwork for the entire sales staff is now given responsibility for all paperwork in one district. He is encouraged to deal directly with the sales staff and quickly becomes an important resource for them. He also has discretionary control over the scheduling of his work and the responsibility for making sure he has made no errors. A feedback system is established so he can gauge both the quality and quantity of his output. Both contact with the sales staff and the monitoring of his work were formerly performed by his supervisor. What is motivating about job enrichment? It resolves the problems of meaninglessness, powerlessness, and isolation factors that cause worker alienation 30 rather than commitment. Job enrichment not only has the same motivational advantages as job enlargement, but the effects of job enrichment are stronger, and enrichment has the added benefit of granting workers autonomy. Autonomy allows people to utilize even more skills and to exercise their creativity and capacity to learn and develop. Research on work redesign programs indicates that they do reduce absenteeism and turnover; however, there are mixed results on productivity. Some job enrichment efforts result in much higher productivity, while others do not. 31 Sociotechnical system interventions attempt lo match the necessary technology of the job with the social needs of the employees. Their goal is to produce a lit or integration of these two components. It's noteworthy that the basic unit of work design here is usually the group rather than the individual. Job rotation, enlargement, and emichment focus on individual rather than group needs. 32 The most common example of sociotechnical systems are autonomous work teams. Such teams are totally responsible for assigning the work, determining the work schedule, work process, quality control procedures, reward structure, and so on . One of the most famous examples of autonomous work teams was found in the Volvo plant in Uddevalla, Sweden.33 Instead of using an assembly line, the cars remained stationary while teams of 8 to IO workers assembled three entire cars a day. This job design reduced tedium because the workers did a variety of jobs that required expanded skills. Furthermore, the workers experienced both greater task identity and control over their work. The team approach at Uddevalla resulted in increased quality and satisfaction, but productivity and absenteeism were still a problem. 34 The teams required 50 labor hours to build a car, twice the hours needed at Volvo's Belgium plant. The Japanese can build a car in less than 20 hours . To cut costs, Volvo shut down the Uddevalla plant and their Kalmar plant, which also used autonomous work teams. Many car manufacturers are utilizing some form of work teams, but they vary in terms of how many tasks they are responsible for and how much autonomy is granted to the teams. Sociotechnical systems have the advantages of all the previous design systems plus the added benefit of group membership. Interdependent work teams anchor people firmly within a social system, thus avoiding isolation. Furthermore, groups often are more creative and productive than are individuals when it comes to complex decisions and tasks. Self-managed work teams, highlighted in Chapter 10, share many similarities with sociotechnical systems. Both emphasize skill variety, task identity, task significance, autonomy, job feedback, and the social belonging that comes from group membership. In sociotechnical systems, however, more attention is specifically concentrated on balancing technical and human systems. Self-managed work teams decide how they will accomplish the goals for which they are responsible and allocate the necessary tasks. They are responsible for planning, scheduling, organizing, directing, controlling, and evaluating their own work process, which is usually an entire process or product. Some teams select and evaluate their own members. None of the work redesign programs described in this section should be seen as a quick fix for organizations. The initial result may be a decrease in productivity until employees have mastered the new system and worked their way up the learning curve. Some programs never do succeed, but the reasons for failure may have more to do with the way they were implemented than with the merits of the program. Good redesign and implementation can pay off in higher employee motivation . For this reason , managers should carefully consider whether jobs are designed as well as they could be. ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION THE ROLE OF LEADERSHIP IN FOSTERING ( MOTIVATION Managers and, to some degree, team leaders can affect how employees perceive their environment. They shape and direct motivation by establishing expectations and rewards that tap into employee motives and further the organization's goals. The manager's task is to make sure that there is a fit and a direct link-between employee needs and rewards, between performance and rewards, and between employees and jobs. The better the tit, the higher the employee motivation. For this reason , when there are motivation problems, we look closely at what managers and leaders are saying and doing. Leaders and managers must understand how employees are motivated and be sure that their words and actions support employee motivation. Employees make conscious choices about their behavior at work . They calculate whether a certain level of effort will result in a particular goal : they determine whether the reward is worth the effort, and they also compare whether their efforts and rewards are comparable to those of other people. These decisions, which are based on employees ' perception of the environment and previous experiences, affect their behavior and level of productivity. These assumptions underlie the second category of motivation theories, pmcess theories which attempt to describe how personal factors and envimnmental fa ctors interact and influence each other to produce certain kinds of behal'io1: In other words, these theories provide leaders and managers with understandings of how employees are motivated. Examples of these theories are goal-setting theory, equity theory, expectancy theory, and reinforcement theory. ( One of the easiest and most effective ways to spur motivation is through goal setting. Coal Setting invol~es setting a clear objective and ensuring that eve1y participant is aware of what is expected jivm him or he1; if this objective is to be achieved. Groups that set goals have higher average performance than those that do not. Why does simply setting target goals increase motivation and performance? Goals provide direction and a sense of how much effort is needed to be successful. They also promote the development of a strategy to achieve the goals, mobilize effort, focus attention, and encourage persistence. 35 There are several important lessons to be learned from the research on goal setting: (I) specific goals increase performance, (2) compared to easy goals, difficult goals that are accepted by employees result in higher performance, (3) feedback leads to higher performance than nonfeedback, and (4) people are more committed to goals that are made public and that they themselves set. 36 Goals should be challenging but feasible , and when projects are lengthy, they should have intermediate goals and celebrations. These actions encourage the need for achievement. The equity that people perceive in their situation also influences motivation . According to equity theo1y, employees evaluate what they receive jimn a job (outputs such as pay, bonuses, job security, promotions, recognition, etc.) in relation to what they contribute (inputs such as time. skills, creativity, effort, etc.). They compare their own input-output ratio with (I) relevant others, (2) system policies and precedents , and/or (3) criteria related to the "self," such as previous jobs or family commitments. When inequity exists and they are either overrewarded or underrewarded, people will attempt to correct this situation . Those who are overrewarded may increase production or the quality of their work, but they are also likely to simply find ways to justify the overreward to themselves and thus restore a sense of equity. 37 For example, they may adjust their perceptions of how much effort they really put in to the job, thinking, for example, "Wow, now that I think about it, I did work really hard and I really do deserve more pay than my coworker." Those who are underrewarded may also try a variety of methods to restore equity. They may ask for a pay raise or an· increase in other rewards, decrease 109 110 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK production or quality, increase absenteeism, and perhaps even resign. When compensation systems are perceived as equitable, employees report greater levels of job satisfaction, organizational commitment, and trust in their supervisors. Perceptions are not always accurate, either on the part of employees or management. For this reason, they should be periodically discussed and subjected to a "reality check." Equality in workplace rewards, which means that everyone receives the same compensation , does not foster high motivation. If there are no negative consequences for low performance, some will not be motivated to work harder. Simultaneously, high performers who receive nothing more for their extra effort may eventually become demotivated, unless they are motivated by other factors, such as intrinsic needs, a strong sense of professionalism, or by the organizational mission. Expectancy theory, shown in Exhibit 5-2, assumes that motivation is a function of three linkages: (I) the effort-performance expectation that if a person makes an effort, it will result in good performance, (2) the performance-outcome expectation that good performance will result in a particular outcome or reward, and (3) the valence (value) of the reward to the person.38 Ability also influences how much effort is necessary, since good performance is more difficult for people with less ability. For example, a student with good study habits may need to study only I 0 hours for a test, while a student without the ability to extract and focus on key points may need to put in twice the hours . If a student believes that studying IO hours for a test will make it possible for her to do extre mely well on an exam, she will be more motivated to study than if she has no previous experience with hard work paying off in the classroom. Her professor's exams cannot be so difficult that she thinks her effort won ' t pay off. Our student must also believe that her good performance on an exam will be fairly graded and will yield an A outcome. If her professor has a reputation for being a biased, careless grader, our student will not put forth much effort because the payoff is uncertain. Finally, she has to think an A is a good thing, a reward that's worth her effort. If all these linkages are in place, she will be motivated . Note how much the professor's actions in this example affected the student 's decisions about how much effort to make and her subsequent behavior. Managerial actions have the same power to motivate or demotivate. To motivate effort, managers have to ensure that feasible performance goals and standards are clearly communicated and that employees have the ability to accomplish them . Managers have to pay attention to employee performance, recognizing whether they are doing well or poorly, and then reward good performance on time with something the employee values. For rewards to be motivating, managers must link them clearly, perhaps publicly, with good performance. Employees will differ in their preference for extrinsic or intrinsic rewards ; some want bonuses, for example, while others prefer more autonomy and interesting work. Ability Effort Motivation is a function of: Effort·to-Performance expectancies Performance-to.Outcome expectancies Perceived valence of the outcomes EXHIBIT 5-2 Expectancy Theory Source: Adapted from D. A. Nadler and E. E. Lawler III , "Motivation: A Diagnostic Approach," Perspectives 011 Behavior i11 Ori:w1iwtio11s, (New York: McGraw-Hill. 1977). CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION ( l Our discussion of rewards in expectancy theory leads us to another theory that fosters motivation and influences performance. By mindfully linking performance with outcomes, or failing to do so, managers shape and reinforce employee behavior. Employees can also shape behavior as we say in the "How to Change Your Boss" vignette. Reinforcement theory ignores internal motives and focuses instead on learned behavior. B. F. Skinner developed operant conditioning, the idea that people continue behavior that is rewarded and suppress behavior that does not lead to desired consequences. 39 Thus, managers have to understand the effects of their behavior and policies on employees and how they are perceived, so they do not inadvertently reinforce the wrong behaviors. For example , highly productive employees are sometimes "rewarded" only by being assigned extra work that less responsible employees are not completing. Unless they are rewarded for the extra work, the productive employee may perceive this as working more for the same salary (i.e., a punishment), while irresponsible employees are "rewarded" by having less work to do and more free time to fool around at work. As a result, managers sometimes lose their high performers due to burnout or equity complaints. The main tenets of reinforcement the01y are that managers should reinforce desired behavior and discourage undesirable behavior by negative reinforcement, extinction or punishment. 40 The first step is to define what good performance looks like and clarify what behavior should be reinforced. Organizations don ' t always think this through logically. Steve Kerr's famous article about "The Folly of Rewarding A While Hoping for B" lists several examples of rewarding the wrong behavior, such as businesses that hope for long-term growth but reward quarterly earnings or businesses that hope for high quality but reward shipping on schedule, regardless of defects. 41 Another common folly is hoping for teamwork but rewarding individual effort in a manner that fosters competition rather than collaboration. As the theory goes, if a behavior persists, it is somehow being rewarded . The trick for managers is to figure out where the reward is coming from and determine whether their own behavior is a contributing factor. An entrepreneur complained that he was overworked and wanted his employees to take on more responsibility and decisions. He insisted that he had effectively delegated work to them, but interviews with his staff revealed that he couldn't keep his fingers out of the pie. When they made decisions for their own departments, he overruled them abruptly and publicly, which was embarrassing. This was a negative reinforcer-desired behavior results in punishment. Continuing to refer decisions to him had a better pay-off. When asked what he got out of this setup, he realized that being the "all-knowing patriarch" was the reward that kept him from changing. He figured out a more constructive way to share his knowledge without disempowering his employees and started praising them for making decisions. Positive reinforcement involves giving people positive outcomes when they pe1for111 the desired behavio1; such as a bonus when their team finishes a product launch on time . Outcomes can consist of praise, pay, promotion, an attractive project assignment, and so on, whatever the individual views as desirable. Outcomes should occur in a timely, consistent manner to emphasize the link between the behavior and the positive result. It is better to create a positive environment and reward positive behavior than to focus primarily on punishing or disciplining negative behavior. Kouzes and Posner suggest that leaders "find people who are doing things right" and praise them. 42 Praise, however, can never be phony, and managers cannot simply ignore serious negative employee behavior without losing the respect of good employees or causing equity complaints. When managers wonder why employees exhibit chronic negative or dysfunctional behavior, sometimes the answer is simply "because they can ." There are no negative consequences to stop them. Office bullies can satisfy their need for power at no cost, as long as the boss does not confront them or discipline them. If employees are habitually late with their work but never suffer for this, they will continue. Unfortunately, it is often coworkers who pay the price, as they scramble to rearrange their own work schedule to accommodate a colleague's tardiness. To be effective, managers may have to punish negative behaviors that impede performance. Punishment is defined as administering an undesired or negative consequence in response to undesired behavior. Organizations substitute the word "discipline" for "punishment." Discipline can take 111 112 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK the form of a reprimand, warning letter, suspension, pay cut, demotion, termination, loss of a hoped-for assignment and so forth. Punishment or discipline should take place shortly after the behavior occurs so the link is clear. It should be handled privately with tact and without emotion. Whenever possible, punishment or discipline should be couched as the natural consequences of the person's negative behavior. The chapter on performance management and appraisal discusses how to confront employees on performance problems. Extinction occurs when the reinforcer for an undesired behavior is removed. A manager who was promoted from within realized that he could not continue to have all of the same types of social interaction with his buddies at work. Some of their conversation topics (gossip, ruminations about what senior management was thinking) were no longer appropriate for him, and yet he did not want to lose their friendship or act like he was too good for them . He maintained the friendships, but learned to walk away when certain topics came up; eventually his buddies realized which topics were off-limits because those topics were not rewarded by his attention and participation. So how do leaders' words and actions affect motivation? All of the following action scripts that foster motivation are drawn directly from the motivation theories discussed in the previous sections. • Creating the right vision Leaders set a vision that is inspiring and motivating • Ensuring the employees are placed in the right jobs They ensure that employees are placed in jobs that fit their unique needs and skills. • Setting challenging goals Managers and leaders can establish high standards, which they themselves model. They can set clear goals and performance expectations, which are rewarded as promised. • Monitoring and rewarding performance Effective leaders track, recognize, reward, and celebrate progress toward organizational goals, ensuring that the organization's reward system is effective and fair. And, they can reward good performance and punish inadequate performance. • Proactively managing low performers When employees are not performing, expert leaders proactively deal with low performance-they don't ignore it and hope it gets better on its own. If low performance is caused by a lack of skill, they provide training for the employee. If the reward system is reinforcing the wrong behavior, they change the reward structure. But if these types of interventions are unsuccessful, they also work to reassign chronic low performers who cannot be salvaged lo a better fitting job or ultimately fire them, sending a message to the rest of the organization that mediocrity is not tolerated. • Creating a culture that values employees and performance Effective motivators show genuine concern about employees' personal development, investing in that development through training and coaching. They enact the self-fulfilling prophecy to think positively about their workers and peers and expect the best from them. They also create an organizational culture that values good performance and customer service. Along the way, they can develop supportive, respectful relationships with employees so there is less likelihood of disappointing the other party. HOW DO YOU REWARD YOUR TOP PERFORMERS? SO ... WHY WOULD I USE ONLY ANYONE THE FINEST TRY TO MOTIVATIONEXCEL? AL POSTERS. ~ ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION ( In addition to creating the right environment for motivation, leaders and managers also have to avoid doing the wrong things; there are many ways to demotivate employees. Common demotivators are: politics and favoritism, unclear expectations, unproductive meetings, hypocrisy (saying one thing and doing another), constant excessive change, withholding information, excessive criticism, and low-quality standards that prevent employees from taking pride in their work. 43 Employees have a long memory for the thoughtless words and actions of bad bosses, which may explain the popularity of the Dilbert comic strip, whose totty-headed manager both demotivates and infuriates employees. Obstacles are also demotivators, because they make good performance more difticult, if not impossible, and lead some employees to give up. Red tape, departmental wrangling that prevents employees from accomplishing their goals, and work overload that prevents employees from doing excellent work are typical obstacles. The job of managers, supervisors, and team leaders is to remove obstacles. Novice managers are more likely to forget that this is one of their key tasks. They demotivate workers unconsciously without understanding the negative consequences of their words or actions. To summarize, leaders and managers play an important role in fostering an atmosphere that either encourages or discourages motivation. But, broader organizational factors also have to be taken into consideration. THE ROLE OF THE ORGANIZATION IN FOSTERING MOTIVATION ( l There are many aspects of organizations that influence motivation, such as their vision, mission statement, culture, policies, and HR practices , so a systems approach to motivation is useful. Firms that are known for having highly motivated employees, such as Chick-Fil-A, Southwest Airlines, AptarGroup, Inc., and Lincoln Electric have a strong organizational culture with a team spirit, job stability, and growth opportunities, in addition to a carefully thought out compensation and reward systems. Employees have different needs and those needs can change over the course of their career. Therefore, many employers offer cafeteria benefits so workers can choose those that best suit their needs. Some employers are reducing long-term fixed pay and increasing variable performance based pay to give themselves more flexibility and to motivate workers . Because some employees have less trust in long-term payoffs for their efforts, they prefer shortterm incentives, which are more successful for ensuring high productivity, morale, and retention.44 Employee stock options and gain-sharing are options that allow employees to benefit when the organization as a whole performs well. In gain-sharing, the organization establishes a base period of performance. When performance gains occur, a formula is used to share the financial gains with all employees. Gain-sharing focuses attention on cost savings , continuous improvement, and higher performance from everyone, including managers. Compensation is a complex issue. Some studies indicate that providing extrinsic rewards actually Lakes the intrinsic pleasure out of performing a task. 45 Money is very motivating to some people, but not to everyone. Nol all rewards have to be extrinsic. In a survey of 1,800 American workers, the following items were ranked more highly than pay as major motivators for employees: recognition of the importance of personal and family time, organizational direction, opportunities for personal growth, ability to challenge the way things are done, satisfaction from everyday work, and employee participation in planning organizational change. 46 Some of these are similar to the motivators Herzberg identified in his earlier research: the work itself, achievement, challenge, responsibility, advancement, growth, and recognition. 47 Companies cannot compete without motivated employees. CEO Howard Schultz attributes Starbucks' growth and success to sharing company profits in the form of stock options (Bean Stock) and health insurance benefits for both full- and part-time workers. To Schultz's knowledge, no other company provides benefits like these, but the payoff for Starbucks is low turnover and high productivity. " If people relate to the company they work for, if they will form an emotional tie to it, and buy into its dreams, they will pour their hearts into making it better." 48 Costco also provides better-than-average wages and benefits in its industry and presents an interesting counterpoint to its closest rival Sam 's Club, which is owned by Wal-Mart. The average hourly pay for Costco's 113,000 employees is US $17, 42 percent higher than Sam's Club. 113 114 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Even though Wall Street analysts advise CEO Jim Sinegal to be less generous, he insists that Costco's policies are not altruistic but just good business; the results are very low rates of both turnover and employee theft. Furthermore, Costco shoppers, who tend to be more affluent than Sam's Club customers, appreciate that low prices are not the result of skimping on employees. Sinegal devotes the same intense energy to retaining both his customers and his employees. "Besides higher pay, Costco contributes generously to its workers' 401(k) plans, starting with 3 percent of salary the second year and rising to 9 percent after 25 years. Its insurance plans absorb most dental expenses, and part-time workers are eligible for health insurance after just six months on the job, compared with two years at Wal-Mart. Eighty-five percent of Costco's workers have health insurance, compared with less than half at Wal-Mart and Target. Costco also has not shut out unions, as some of its rivals have." 49 In summary, managers and organizations cannot influence employee motivation unless they understand what motivates individual employees. Apparently this is easier said than done ; studies repeatedly show that when workers and supervisors rank job factors in order of their importance to workers, their answers do not concur. In one study of ten job factors , the workers' first , second, and third ranked items-appreciation for their work, being in on things, and sympathetic help on personal problems-were ranked eighth, ninth, and tenth by their supervisors! The supervisors mistakenly assumed that good wages, job security, and promotional growth were most important to the workers. 50 We often hold mistaken assumptions about what motivates others, which is why it 's important to hone our skills at decoding human behavior. The purpose of this activity is to provide you with an opportunity to recognize motivation problems related to theories we have studied and to counsel an employee on motivation issues. (Time allotted: 95 minutes) STEP 1. Group Applications of Theory (20 minutes) a. Divide into groups of live to six (your learning groups) . Each group will be assigned one of the following theories to discuss with respect to the Donor Services Department, on page 673. 1. Maslow's Hierarchy of Needs 2. McClelland's Need Theory 3. Job Characteristics Model 4. Goal-Setting Theory 5. Equity Theory 6. Expectancy Theory 7. Reinforcement Theory b. As a group, answer the following two questions regarding your assigned theory and be prepared to present your answers to the rest of the class in a 2-minute presentation. 1. What problems occur in the case that can be explained by this theory? 2. What recommendations should be made based on this theory? STEP 2. Group Presentations (20 minutes) Each group gives a two-minute presentation. STEP 3. Motivation Counseling Session Role Play (20 minutes) a. Form trios and select one person to play the role of Sam, one to be Elena and the other to be the observer. Sam has told Elena he wants to meet with her to discuss her job performance because she seems less motivated now than she did in her ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION old job. In the next I 0 minutes, Sam and Elena should plan separately what they both want to accomplish during this session , based on the information in the case. During this period the observer can coach Sam and/or Elena on their goals and strategies for the meeting . Discuss what Sam will attempt to accomplish in the interview and how he will go about it. "Sam" should focus on the motivational factors affecting Elena and what would make her job more motivating. " Elena" should also prepare Lo speak with Sam, by thinking about (I) what motivates and demotivates her in her present job; and (2) how she would like Lo change her boss and shape his behavior (refer to the second vignette). b. Conduct the role-play during the next ten minutes. The observer should note (I) how well Sam does at drawing out and understanding Elena's views and (2) how successful Elena is al trying to change Sam's behavior. ( STEP 4. Plenary Role Play Debriefing ( 15 minutes) 1. 2. 3. 4. 5. STEP 5. How well did "Sam" understand "Elena's" views and her situation in the office'? Whal are the factors that play a role in her performance? How successful was Elena at attempting to change Sam's behavior? Did you find a solution? Whal have you learned about counseling employees on motivation issues? Plenary Case Discussion (20 minutes) 1. What was Joanna Reed 's diagnosis of the situation in the donor services department? 2. Whal should she recommend to Sam Wilson? 3. Describe the managerial styles of Sam, Jose, and Elena. What is the impact of their styles? 4. How can motivation be improved in the department? 5. What are the cultural factors that influence this case? ( \ THE MOTIVATED CLASSROOM The preced ing chapter contained a class activity devoted to transforming your class into a learning organization. To make that a reality, we also need to think about the role motivation plays in a learning organization. The purpose of this exercise is to apply the lessons of motivation theory and practice to this course by devising a motivation program. (Time allotted : 55-75). STEP 1. Divide into groups of live to six (your learning groups). Each group will be assigned al least one (depending on the number of groups) of the following topics to discuss and apply. (20-30 minutes) a. Maslow's Hierarchy of Needs b. McClelland's Need Theory c. Job Characteristics Model d. Goal-Setting Theory e. Equity Theory f. Expectancy Theory g. Reinforcement Theory Please answer these questions: 1. How does this theory or concept relate to the classroom and the learning organi- l zation we want to create? 2. Are there any practices that companies are successfully using to create a motivated workforce that you think we should borrow? 3. Based on the discussion so far, brainstorm some ways to motivate yourself and your classmates. Decide on your Lop recommendation. Use these criteria to help you decide: Remember that the instructor should not be the sole source of motivation and make sure your recommendation is feasible and easy to implement. 115 116 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK STEP 2. A representative from each group briefly explains how the group's theory applies to the classroom and presents the group's recommendation. (20 minutes) STEP 3. The class and the professor decide which recommendation(s) they want to adopt. ( 15 minutes) ./' 1. Motivation refers to the psychological forces that determine the direction of people's behavior, their level of effort, and level of persistence. 2. Motivation is not something that is "done" to other people. It is an internal state that directs individuals toward certain goals. 3. The manager's job is to understand and channel the motivation employees already possess and direct it toward tasks that further the organization's objectives. 4. The sources of motivation are either intrinsic (e.g. , the work itself) or extrinsic (e.g ., external consequences like material or social rewards, avoidance of punishment). 5. Individuals are motivated by different needs, such as Maslow's physiological, security, affiliation, self-esteem, and self-actualization needs. 6. McClelland 's theory of motivation focuses on three needs that are learned from one's culture and family: affiliation, achievement, and power. Almost everyone has these needs in varying degrees. Job performance is affected by people's motive patterns as well as by the values that individual s hold. 7. There are two faces , positive and negative, ton-Power (socialized and personalized) and nAffiliation (interest and assurance). 8. According to McClelland, high achievers: a. Like to set their own goals. b. Tend to avoid either extremely difficult or extremely easy goals. c. Prefer tasks that provide immediate feedback on their performance. 9. Jobs that are motivating have the following characteristics : a. Skill variety b. Task identity c. Task significance d. Autonomy e. Job feedback 10. Job redesign efforts have been found to improve both satisfaction and productivity in some cases. However, job enrichment programs are also contingent on the individual worker's (I) knowledge and skill; (2) need for growth, self-development, and challenge; and (3) satisfaction with contextual factors . 11. Methods of job redesign and motivating employees are: a. Job rotation-switching different jobs. b. Job enlargement-horizontal job loading, which combines related tasks. c. Job enrichment-vertical job loading, which increases job scope by including planning and control functions formerly held by supervisors. It also includes client contact and direct output feedback. d. Sociotechnical systems-integration of the needs of both people and technology. The basic work unit is usually the group rather than the individual. Autonomous work teams are an example. e. Self-managed work teams decide how they will accomplish the goals for which they are responsible and allocate the necessary tasks. They are responsible for planning, scheduling, organizing, directing, controlling, and evaluating their own work process, which is usually an entire process or product. ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION ( 12. According to research on goal setting, higher performance results when goals are spe- 13. 14. 15. 16. 17. ( cific, difficult (but accepted by employees) , and when employees receive feedback on their progress . Publicly stated goals are more likely to be accomplished than private ones . Equity theory maintains that employee motivation is affected by the perceived fairness of what people contribute and receive. Expectancy theory assumes that motivation is a function of three linkages: (I) the effortperformance expectation that if a person makes an effort, it will result in good performance, (2) the performance-outcome expectation that good performance will result in a particular outcome or reward, and (3) the valence (value) of the reward to the person. According to reinforcement theory, people learn to use behaviors that are rewarded and to suppress behavior that does not lead to desired consequences. Positive reinforcement, punishment or discipline, and extinction are used to shape employee behavior. Managers can create an environment that rosters motivation by setting clear performance standards and ensuring there are fits between employee needs and jobs and between employee needs and rewards, and by ensuring that good performance is rewarded fairly. While money is a highly valued reward for some people, other rewards are more important to other employees. For example, Herzberg identified these intrinsic factors as motivators : the work itself, achievement, challenge, responsibility, advancement, growth , and recognition. FOR EMPLOYEES • Employees who are expert at self motivation view every work experience as an opportunity to learn more about their needs and figure out what type of work they find most motivating. In this respect, even "bad" jobs hold valuable lessons. • They also take responsibility for becoming aware of what motivates them-take assessment tests, ask for feedback from people with good judgment who know them well, watch how they (and others) spend their time and what they enjoy doing. One of the characteristics of successful people is that they love what they do and do not perceive it as "work." Instruments like the Strong Campbell Personal Interest Inventory, available at many university counseling centers, are helpful for identifying the professions of people with similar interests. • They seek out or create jobs and work settings that they find motivating. Rather than taking the first job that is offered , they make sure it is a good fit for them. • They respond proactively to demotivation . If they have a demotivating boss or work environment, rather than working less and harming their work reputation, they either try to improve the situation, look for another job, or do a good job in spite of the demotivating boss. Being a professional means adhering to high standards of performance, regardless or the rewards or lack of rewards that come from the environment or one 's superior. In some situations, this may be as good as it gets (other than the paycheck) (and others). FOR MANAGERS l • Managers who are skilled motivators look for evidence of fit or lack of fit between employee needs and jobs and their rewards. They work hard to place people in jobs they find rewarding . • Experts know that figuring out what motivates employees is not always a simple matter of asking them. Learning about employees' nonwork activities, observing what they do with discretionary time at work, and determining what type of work or projects they enjoy are indirect 117 118 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK • • • • • methods of gauging their motive patterns. Employee surveys can provide information about satisfaction with jobs and rewards. The yearly performance appraisal provides a good opportunity to check whether the manager's assumptions about what motivates an employee are accurate. There is a close relationship between understanding what motivates your workers and negotiating and renegotiating an effective psychological contract with them. Whenever they contemplate changes in the organization, skilled motivators consider employee needs and how they will be impacted. For example, a secretary with a very boring job that is redeemed only by a central location that allows her to satisfy a high need for affiliation will not be excited about a new workstation in an isolated location. The easiest ways to avoid making errors of this sort are to understand what makes the job challenging or at least palatable for each employee and to discuss possible changes with employees before they are made. Experts take pains to create an inspiring shared vision for their team, work unit, or department. Even if the job is miles away from the executive suite, all units can profit from being reminded about how their work will achieve the vision, and what progress has been made. They ask employees what is going on when the organization is at its best and encourage them to make this a daily reality. Expert motivators understand that they set the stage of motivation by creating an environment that helps employees achieve great performance by: • Communicating high expectations for employees or team members and thinking positively about workers and peers so that they live up to expectations, in keeping with the selfful filling prophecy. • Setting challenging but attainable goals. • Establishing clear work objectives and standards of good performance. • Providing appropriate feedback to encourage achievement among employees. • Providing feedback on an ongoing basis rather than waiting until projects are completed. • Removing demotivators that frustrate employees and sap their energy and morale . • Devoting time and effort to recognizing employee contributions as well as praising employees sincerely whenever doing something right. • Linking rewards to performance and behaviors that promote the organization's goals. • Ensuring that rewards are equitably distributed; people who produce more should receive greater rewards. • Using a variety of rewards that individual employees find valuable or motivating. Rewards can also be chosen with the participation of employees. • Analyzing whether the right behaviors are rewarded and whether there are negative consequences for negative behaviors, and when negative behaviors persist, figuring out what is rewarding them. Skilled motivators confront low performers to discover whether the problem is inability or unwillingness to do the job correctly. If the problem is inability, they provide coaching or training. If the problem is unwillingness, they explain the consequences of their performance on the work and the organization; describe what will happen if their performance does not improve; make sure the employees understand clearly what is expected of them; create an action plan with a timeline by which their performance must improve; and monitor their progress carefully. FOR ORGANIZATIONAL ARCHITECTS • Expert organizational architects recognize that organizational design and organizational policies can powerfully affect employee motivation . They take special care to align the organizational reward systems, job design processes, employee selection procedures, and performance appraisal policies with the organizational mission. They periodically check to make sure the alignment is correct and appropriate. ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION ( The topic or this assignment is to think back on a motivation experience that was significant for you . Choose an experience that intrigues you and that you want to learn more about. A. Concrete Experience 1. Objectively describe the experience (who, what, when, where, how) (2 points) 2. Subjectively describe your feelings, perceptions, and thoughts that occurred during (not after) the experience. What did others seem to be feeling? (2 points) B. Reflective Observation 1. Looking back at the experience, what were the perspectives of the key actors (including you)? (2 points) 2. Why did the people involved (including you) behave as they did? (2 points) l 119 120 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK C. Abstract Conceptualization 1. Relate concepts or theories from the assigned readings or the lecture to the experience. Explain thoroughly how they apply to your experience. Please apply at least two concepts or theories and cite them correctly. (4 points) D. Active Experimentation 1. What did you learn about motivation from this experience? (I point) 2. What did you learn about yourself? (I point) 3. What action steps will you take to be more effective in the future? (2 points) E. Integration, Synthesis, and Writing 1. Did you integrate and synthesize the four sections? (I point) 2. Was the Personal Application Assignment well written and easy to understand? (I point) 3. Was it free of spelling and grammar errors? (2 points) ( CHAPTER 5 INDIVIDUAL AND ORGANIZATIONAL MOTIVATION 121 ENDNOTES ( 1 R. Kanfer, " Motivation Theory and Industrial and Organization al Psychology, ,. in M. D. Dunnette and L. M. Hough. eds., Handbook of lnd11strial and 01~f?anizational Psychology, 2nd Ed., vol. I (Palo Alto, CA: Consulting Psychologists Press. ( 1990): 75-170. 2 F. Herzberg, B. Mausner. and B. Snyderman, The Mo1ivation to Work (New York: John Wiley, 1959). 3 R. J. House. A. Howard and G. Walker "The Prediction of Managerial Success: A Competitive Test of the Person-situation Debate," Academy of Management Best PaJiers Proceedings ( 1991 ): 215-219 ; J.E. Hunter, "Cognitive Ability. Cognitive Aptitudes. Job Knowledge, and Job Performance." Jo11mal ofVocmional Behavior 29 (1986): 340-362; L. S. Gottfreson. "Societal Consequences of the g Factor in Employment, ./011mal of Vocational Behavior 29 ( 1986): 379-410; G. F. Dreher, and R. D. Bretz, "Cognitive Ability and Career and Career Attainment: Moderating Effects of Early Career Success.,. Jou ma/ of Afifilied Psychology 76(3) ( 1991 ): 392-397: F. L. Schmidt. D. S. Ones. and J.E. Hunter, "Personnel Selection." Amwal Review of Psychology, 43 ( 1992): 627-670. O ' Reilly and J. Chatman. " Working Smarter and Harder: A Longitudinal Study of Managerial Success," Ad111inis1ratiFe Science Q11arterly 39(4) ( 1994): 603-627. l.J K. Noujaim, "Some Motivational Determinants of Effort Allocation," Ph.D. Thesis. Sloan School of Management, MIT ( 1968). 15 G . A. Yuki, Leadershifl in Organizmions (Upper Saddle River. NJ: Prentice Hall, 2002): Noujaim, " Some Motivational Determinants of Effort Allocation." 16 Noujaim. ''Some Motivational Determinants of Effort Allocation." 17 H. A. Wainer and I. M. Rubin, "Motivation of Research and Development Entrepreneurs: Determinants of Company Success," Jou ma/ of Afifilied Psychology 53(3) ( 1969): 178-184. 18 McClelland and Burnha m. "Power Is the Great Motivator." 19 McClelland and Burnham, "Power Is the Great Motivator.'' 20 A. Howard and D. Bray. Managerial Lives in Transi1ion: Advancing Age and Changing Times (New York: Guilford. 1988). 21 D. C. McClelland. Retrospective Commentary Lo "Power ls the Great Motivator." In S. Kerr (ed.). Ultimale Rewards (Cambridge. MA: Harvard Business Review Books. 1997): 81. .JC. N. A. Adler. lntemational Dimensions of Organiza1ional Behavior (Cincinnati, OH : South-Western, 200 I); G. Hofstede. " Motivation. Leadership and Organization: Do American Theories Apply Abroad?" Organiza1ional Dynamics 9( I) ( 1980): 42-63 . 22 A. M. Harrell and M. J . Stahl. "A Behavioral Decision Theory Approach for Measuring McClelland ' s Trichotomy of Needs,'' Jo11mal of Afifilied Psychology 66 (April 1981 ): 242-47: M. J. Stahl and A. M. Harrell , "Evolution and Validation of a Behavioral Theory Measurement Approach to Achievement, Power. and Affiliation,'' Jou ma/ of Afiplied Psychology 67 (6) (December 1982) : 744-51: and M. J. Stahl. "Achievement. Power, and Managerial Motivation : Selecting Ma nagerial Talent with the Job Choice Exercise.'' Personnel Psychology 36(4) (Winter 1983): 775-89. 7 23 5 ( Kanfer, "Motivation Theory and Industrial and Organizational Psychology. 6 A. Maslow, Mo1iva1ion and Personality (New York: Harper & Row. 1970). 8 Adler, ln1emmional Dimensions of Organizational Behavior; H.J. Reitz, 'The Relative Importance of Five Categories of Needs among Industrial Workers in Eight Countries; · Academy of Management P1vceedings ( 1975): 270-273. 9 Reitz. ibid. IO D. C. McClelland. The Achieving Society (Princeton. NJ: D. Van Nostrand. 1961) and Human Motivation (Glenview. IL: Scott, Foresman, 1985). 11 Hofstede, "Motivation , Leadership and Organization : Do American Theories Apply Abroad?" 12 D. C. McClelland and D. H. Burnham, " Power Is the Great Motivator," Harvard Business Review 81(1) (January 2003) : 117-126. l 13 R. E. Boyatzis, "The Need for Close Relationships and the Manager's Job," The Organizational Behavior Reader (Englewood Cliffs. NJ: Prentice Hall . 1991):118-124. J. D. Andrews, 'The Achievement Motive in Two Types of Organizations," Jo11mal of Personali1y and Social Psychology 6 (I 96 7): 163-68. 24 C. P. Alderfer. "A Critique of Salancik and Pfeffer's Examination of Need-Satisfaction Theories," Adminis1ra1ii•e Science Q11ar1erly 22 ( 1977): 658-672. 25 This list is composed of factors identified by J. R. Hackman and G. Oldham. Work Redesign (Reading, MA: AddisonWesley. 1980): 77-80. 26 B. Garson, "Luddites in Lordstown," Harpers . (June 1972): 235. 27 J. R. Hackman and G. R. Oldham. "Development of the Job Diagnostic Survey," Jo11ma/ of Applied Psychology 60 ( 1975): 159-70. 28 F. Herzberg. "One More Time: How Do You Motivate Employees?" Harvard B11si11ess Review 81( I) (J anuaryFebruary 2003). 29 Ibid. 122 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK 30 M. Seeman. "On the Meaning of Alienation," American Sociological Review 24 ( 1959), 783-91; and "Alienation Studies," Annual Review of Sociology 1 ( 1975): 91-123; and R. Blauner, Alienation and Freedom: The Factory Worker and His Industry (Chicago: University of Chicago Press, 1964). 31 R. W. Griffin. "Effects of Work Redesign on Employee Perceptions, Attitudes, and Behaviors: A Long-term Investigation," Academy of Management Journal 34 (June 1991 ): 425-35. 32 An entire issue of the Journal of Applied Behavioral Science 22 (3) ( 1986), edited by W. Pasmore and W. Barko, is devoted to sociotechnical systems and includes information about autonomous work teams. 40 F. Luthans and R. Kreitner, Organizational Behavior Modification and Beyond: An Operant and Social Learning Approach (Glenview, IL: Scott, Foresman, 1985). For excellent compilations of the research on this theory, see F. Andrasik, "Organizational Behavior Modification on Business Settings: A Methodological and Content Review," Journal of Organizational Behavior Management, 10( 1) ( 1989): 59-77; and G. A. Merwi, Jr., J. A. Thomason, and E. E. Sanford, "A Methodology and Content Review of Organizational Behavior Management in the Private Sector: 1978-1986," Journal of Organizational Behavior Management, 10( 1) ( 1989): 39-57. 41 S. Kerr, "The Folly of Rewarding A While Hoping for B," Academy of Managemellf Executive 9 ( 1) ( 1995): 7-14; and the Organizational Behavior Reader. 33 J. Kapstein, "Volvo's Radical New Plant: The Death of the Assembly Line?" Business Week, (August 28, 1989): 92-93. 42 34 43 S. Prokesch, "Edges Fray on Volvo's Brave New Humanistic World," New York Times, (July 7, 1991 ): CS. 35 E. A. Locke, and G. P. Latham, A Theory of Goal Setting and Task Pe1formance (Upper Saddle River, NJ: Prentice Hall, 1990); and P. C. Early, G. B. Northcraft, C. Lee, and T. R. Lituchy, "Impact of Process and Outcome Feedback on the Relation of Goal Setting to Task Performance," Academy of Management Journal 33( I) ( 1990): 87-105. 36 M. E. Tubbs, "Commitment as a Moderator of the GoalPerformance Relation: A Case for Clearer Construct Definition," Journal ofApplied Psychology 78( 1) ( 1993): 86-97. 37 J. S. Adams, "Inequity in Social Exchanges," in L. Berkowitz (ed.), Advances in Experimental Social Psychology (New York: Academic Press, 1965): l 6-23. 38 V. H. Vroom, Work and Motivation (New York: Wiley, 1964). Please see the Nadler and Lawler aiticle in the Organizational Behavior Reader on expectancy theory. 39 B. F. Skinner. Contingencies of Reinforcemellf. New York: Appleton-Century-Crofts, ( 1969). J. Kouzes & B. Posner. The Challenge of Leadership (San Francisco: Jossey-Bass, 2002). D. Spitzer, ''The Seven Deadly Demotivators," Management Review 84 ( 11) (November 1995): 56-61 and SuperMotivation (New York: Amacom. 1995). 44 B. Tulgan. "Trends Point to a Dramatic Generational Shift in the Future Workforce," Wiley Periodicals (2004): 23-31. 45 A. Kohn, "Why Incentive Plans Cannot Work," Harvard Business Review 71(5) (September-October 1993): 54-63. 46 D. S. Campbell, "Firms Try to Adjust for Worker's New Career Expectations," Knight-Ridder/Tribune Business News. (October 6, 1998). 47 F. Herzberg. B. Mausner, and B. Snyderman, The Motivation to Work (New York: John Wiley. 1959). 48 L. Harman, "Starbucks' Schultz Reveals How Firm Keeps Perking," San Diego Business Joumal 18(39): (September 29, I 997): 4. 49 S. Greenhouse. "How Costco Became the Anti-Wal -Mart" The New York Times, (July I 7, 2005): BU: I, column 2. 50 A. L. LeDuc Jr.. "Motivation of Programmers," DATA BASE ll(4)(1980) : 4-12. ( /' ( VALUES AND WORKPLACE ETHICS c;,u,3;; c::rrJ ;;; By the end of this chapter, you should be able to : A. Describe how organizations foster unethical behavior. B. Explain how organizations can promote ethical behavior. C. Define ethics and values. D. Better articulate your own values. E. Distinguish between ethical and nonethical values. ( F. Explain and recognize the stages of moral reasoning . G . Describe five different ethical models. H. Explain corporate social responsibility and its benefits. ~::.'. l [ .., In 1994 Ray Anderson, 61-year-old founder of a commercial carpet company called Interface Inc., had an epiphany. It came during a period of soul searching that was triggered when his company slipped from the number 1 slot. An employee gave Anderson the "Ecology of Commerce," a book by Paul Hawken who believes that the Earth 's living systems are in decline, the industrial system is the largest culprit in this decline, and therefore, businesses should take the lead in promoting sustainability. 1 Companies need to control the creation of harmful waste rather than focus solely on waste disposal. After reading about rapidly depleting natural resources and toxins that accumulate in the human body and pass on to the next generation , Anderson thought of his own grandchildren and wept. He realized that his company was guilty of consuming a disproportionate amount of hydrocarbons as well as producing harmful toxins. 2 Anderson developed a new mission for Interface----<.:reate zero pollution with zero oil consumption while simultaneously advancing the interests of everyone involved in the company's endeavors (investors, employees, and customers). Interface calls this goal "climbing Mt. Sustainability," achieving zero footprint-leaving no impact on the environment-by 2020. With the help of environmental consultants and The Natural Step format, his employees examined their work processes and designed less wasteful ways of producing carpet. For example, Interface originated the idea of installing carpet tiles under a "perpetual lease" program: for a monthly 123 124 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK rental fee Interface removes deteriorated individual tiles and recycles them into new carpet. This is less wasteful than the general industry practices of replacing an entire carpet that is only worn in heavy traffic areas and failing to recycle old carpet. Interface also considers its employees a part of nature. In an industry noted for poor working conditions, Interface's mill is relatively quiet, odor-free, and sunny.3 As a result of Interface's new environmental mission, the company has saved $262 million in costs for eliminating waste. 4 Furthermore, many other businesses want to buy carpet from a "green" (environmentally concerned) vendor, so Interface's market share increased. 5 However, Interface has not been profitable since 2000, which Anderson attributes to external factors like the dot.com bust, 9/ 11, and a 40 percent decline in office furnishing purchases. 6 While critics are beginning to wonder if the firm 's heavy focus on sustainability has harmed the firm financially, Anderson, now chairman of the board, insists that this focus was the reason Interface survived the economic downturn . In addition to increased cost savings, Interface's sustainability program led to improved, creative products, highly motivated employees, and customer goodwill that no amount of advertising could produce.7 In the last I0 years, Interface has reduced its global greenhouse gas emissions by 52 percent, reclaimed 66 million pounds of carpel that would otherwise have ended up in a landfill, and has some plants that rely completely on renewable energy sources like wind and solar power. As a result, both Anderson and Interface have won numerous awards. Anderson has become one of the leading U.S. proponents of The Natural Step, a not-forprofit environmental education organization founded by Dr. Karl-Henrik Robert. Robert, a Swedish pediatric oncologist, was motivated by an anomaly he observed in his work with children suffering from cancer. The parents of these children frequently vowed to do anything they could to save their children, including sacrificing their own lives. Yet Sweden as a whole was fairly complacent about taking steps to eradicate the environmental causes of cancer. As Robert noted "After a time of pulling drowning bodies out of a river, the intelligent person wants lo go upstream to see if he can't prevent them falling in in the first place." Robert began a process of dialogue and consensus building about sustainability with scientists; fifty scientists, after numerous iterations, agreed on four basic, non-negotiable system conditions for sustainability. Due to his extraordinary networking skills, Robert succeeded in sending a booklet and an audiotape on these Natural Step principles to every household and school in Sweden. 8 Sustainability is defined as meeting the needs of present generations without compromising the ability of future generations to meet their own needs. The moral basis for sustainability is the ethical position that destroying the future capacity of the Earth to support life is wrong. The Natural Step program promotes sustainability because it encourages people in organizations to consider the following four system conditions whenever they make decisions. ( 1. Substances from the Earth 's crust must not systematically increase in the ecosphere. This means that fossil fuels, metals and other minerals must not be extracted at a faster pace than their slow redeposit and reintegration into the Earth's crust. This requires a radically reduced dependence on mined minerals and fossil fuels. Businesses must ask themselves this question: "Which materials that are mined from the Earth 's surface do we use (e.g., metals, fuels) and can we use less?" 2. Substances produced by society must not systematically increase in the ecosphere. Nature cannot withstand a systematic buildup of substances produced by humans, which means that substances must not be produced at a faster pace than they can be broken down and integrated into the cycles of nature or deposited into the Earth's crust. The question for business is: "Which unnatural substances does our organization depend on (e.g., plastics, chemical compounds) and can we use less?" 3. The physical basis for productivity and diversity of nature must not be systematically diminished. Nature cannot withstand a systematic deterioration of its capacity for renewal. In other words , societies cannot harvest or manipulate ecosystems in such a way that ( " CHAPTER 6 VALUES AND WORKPLACE ETHICS ( productive capacity and biodiversity systematically diminish . This requires that all people critically examine how they harvest renewable resources and adjust consumption and land use practices to be well within the regenerative capacities of the planet's ecosystems. The question for businesses is: "Does our organization depend on activities that encroach on productive parts of nature (e.g ., over-fishing) and can we decrease these activities?" 4. For the three previous conditions to be met, there must be fair and efficient use of resources with respect to meeting human needs. Satisfying basic human needs must take precedence over the provision of luxuries, and there should be a just resource distribution . This will result in the social stability and cooperation required to make the changes that will eventually ensure sustainability. The question for businesses is: " Is our organization economically dependent on using an unnecessarily large amount of resources in relation to added human value (e .g., cutting down forests inhabited by indigenous people whose way of life is thereby threatened) and can we lessen this dependence?" The Natural Step has gained widespread popularity in Swedish municipalities and multinationals such as IKEA, Electrolux , OK Petroleum, and Scandi Hotels. The program has also spread to.other countries. In the United Stales, The Natural Step has worked with Bank of America, Home Depot, McDonalds, Nike , and Starbucks among other organizations.9 According to early adopters of The Natural Step, the program has helped companies to achieve the following beneli ts: 10 • Reduce operating costs. • Stay ahead of regulatory frameworks and protect long-term investments. • Enhance the organization's standing among stakeholder groups including customers, suppliers, and employees. • Incorporate environmental concern into the culture of the workplace. • Spark creativity among employees, especially those in product and process design. • Differentiate their products and services and build brand image. Ray Anderson and Interface became more successful as a result of incorporating The Natural Step system conditions, but it 's not simply a question of profit for Anderson. His introduction to the importance of sustainability came "as a spear in the chest for me , and I determined almost in an instant to change my company. Sometimes it seems very rapid; other times it 's slow-but it began, frankly, in the heart, not in the mind . And I suspect that that's where the next industrial revolution has to begin-in the hearts or people-to do the right thing." I I Source : Adapted from J. S. Osland. B. H. Drake and H. Feldman. "The Stewardship of Natural and Human Resources ." In C. J. Dempsey and R. A. Butkus (eds .) All Nature Is Groa11i11g (Collegeville. MN: Liturgical Press, 1999): 168-192; P. As mus. "I 00 Best Corporate Citizens for 2005" Business E1/1ic.I' 011/i11e (Spring 2005) Accessed I 0/15/2005 . h11p://www.business-elhics.com/whals_new/ I OObest.html. A. Read "Ray Anderson and The Natural Step." B. Fill out the Rokeach Values Survey on the following page and score it. 12 C. Read "WEYCO's Ban On Employee Smoking" and answer the case questions that follow. D. Fill out the Corporate Integrity Checkup. E. While reading the chapter, make a list of cues that you will look for when dealing with val- l ues and ethics in the workplace. 125 126 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Rokeach Values Survey ( Please rate each of the values on these two pages in terms of their importance to you by circling the appropriate number (1 = of lesser importance, 7 = of greater importance). Think about each value in terms of its importance to you, as a guiding principle in your life. Is it of greater importance to you, or of lesser importance, or somewhere in between? As you work, consider each value in relation to all the other values listed on each page. Work slowly and think carefully about the importance you assign to all the values listed below. When you're done, follow the scoring and plotting instructions that appear below and at the end of the survey. Terminal Values Of Lesser Importance A comfortable life An exciting life A sense of accomplishment A world al peace A world of beauty Equality Family security Freedom Happiness Inner harmony Mature love National security Pleasure Salvation Self-respect Social recognition True friendship Wisdom P Total p 53 Of Greater Importance Weight 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 X 5= X 4= X4 = 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 x 5= X 3= x 5= X ]= X l= X 4= X 5= X 4= x 5= X 5= X3= X 5= x 3= X 4= X 5= = P score 5 T S Total+ 18 = p 5 Total Total S score (Terminal Values) Scoring Instructions for Terminal Values 1. For all items, multiply the number you circled by the weighted value that appears under the heading "Weight." Write the total in the blank to the right. 2. Sum the numbers in the first column and write the total at the bottom where it says "PTotal." Next, divide this total by 53. Your new score should be a value between 1 and 7 . This is your P score. P stands for Personal Values. 3. Sum the numbers in the second column and write the total al the bottom where it says "S Total." Next, divide this total by 18. Your new score should be a value between 1 and 7. This is your 5 score. 5 stands for Social Values. 4. Subtract 5 from P lo find your Terminal Values Score. A positive sum indicates a "personal" orientation, while a negative sum indicates a "social" orientation. CHAPTER 6 ( Of Lesser Importance Instrumental Values 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Ambitious Broadminded Capable Cheerful Clean Courageous Forgiving Helpful Honest Imaginative Independent Intellectual Logical Loving Obedient Polite Responsible 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 VALUES AND WORKPLACE ETHICS Of Greater Importance 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Weight x5= X 2= x5= X4= x3= X2= x5= X5= X2= X 5= x5= x 5= X 5= x 5= x l = X3= X 4= c Total ( P Total c + 36 = _ _ _ Pscore M S Total + M Total 30 = _ __ S score (Instrumental Values} Scoring Instructions for Instrumental Values 1. For all items, multiply the number you circled by the weighted value that appears under the heading "Weight." Write the total in the blank to the right. 2. Sum the numbers in the first column and write the total at the bottom where it says "CTotal." Next, divide this total by 36. Your new score should be a value between l and 7. This is your C score. C stands for Competence Values. 3. Sum the numbers in the second column and write the total at the bottom where it says "M Total." Next, divide this total by 30. Your new score should be a value between l and 7 . This is your M score. M stands for Moral Values. 4. Subtract M from C to find your Instrumental Values Score. A positive sum indicates a "competence" orientation, while a negative sum indicates a "moral" orientation. Plot your Terminal Values Score on the horizontal axis and your Instrumental Values Score on the vertical axis of 6-1 on page 137. Mark the point of intersection between the two scores. WEYCO'S BAN ON EMPLOYEE 5MOKING 13 Located in Okemos, Michigan, WEY CO is a small company, founded in 1979, that specializes in managing employee benefit plans . It administers self-funded vision, dental, medical, and shortterm disability plans. It also serves as an agent for other benefit plans. The company strives to be ''the premiere benefit and healthcare information management organization ." Here is WEYCO's company creed and vision: 14 • We recognize we must work together to thrive. • We understand another's point of view. 127 128 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK • We treat others as we would want to be treated, with courtesy, respect and dignity. • We acknowledge and respond to fellow workers' requests with regard to each other's time and priorities. • We are responsible for our own positive attitude. • We treat problems as learning opportunities while working together toward resolution. • We provide an atmosphere for open, honest and objective communication without fear. • We strive for individual excellence that enables others to perform their jobs. • We encourage initiative, new ideas and decisive problem solving. • We acknowledge the equal importance of all fellow workers. ( WEYCO has made a serious commitment to improving the health of its own employees. Their voluntary wellness program includes weight management, nutrition counseling, diabetic counseling, visits with a personal trainer that can result in a $110 bonus/month if fitness goals are met, and even a scale in front of vending machines that contain healthy foods. 15 WEY CO also has medical advisors on staff who provide health counseling to employees. But, as CEO Howard Weyers notes, "Our involuntary programs are more controversial." WEYCO stopped hiring smokers in 2003 when they discovered there was no law in Michigan that prevented them from screening out tobacco users in the same way that firms regularly screen out drug users through testing. According to the ACLU, there are over 6000 employers who do not hire smokers. 16 Other firms, like U-Haul International, charge smokers $130 more annually for their health insurance. 17 WEYCO banned tobacco from company property and set up voluntary testing and classes and programs aimed at smoking cessation. In early 2004, Weyers assessed a $50 smoking fee for each employee who smoked. However, the company waived the fee for employees who passed a nicotine test or signed up for a smoking cessation class. WEYCO also provided a smoking counselor. 18 For those who continued smoking, WEYCO's policy was that employees would be suspended for 30 days without pay if they tested positive in a random test for tobacco use or were discovered to be using tobacco. The suspended employees would then be tested on return and would be subject to multiple random tests after that. If they failed a second test they would be dismissed. CEO Howard Weyers adopted a no smoking policy on January I, 2005, that stated that employees could not smoke anywhere, not even at home. To ensure their compliance with the policy, employees were forced to take a test to prove they had quit. One employee quit before the policy was implemented and four more were fired for refusing to take the test. An estimated 18-20 of the company's 200 employees had been smokers and as many as a dozen quit. 19 Weyers is 70 years old, a former college football coach who exercises five times a week. He states there are no religious reasons behind his decision . Weyers defended the no smoking ban in the following press release. [Why Business Should Get Serious about Smoking, Howard Weyers, February 7, 2005 (http://www.weyco.com).] "Rather than face the dangerous realities of smoking, critics ofWEYCO's tobaccojree policy rush to the so-called "slippe1y slope" argument, imagining all kinds of dire consequences for workers. But the fact is.federal and state laws prohibit employers from discriminating on the basis of age, sex, race, weight, national origin, and other attributes - and smoking is not a civil right. It's just a poor personal choice. Moreove1; for other lifestyle issues, WEYCO provides positive assistance - such as wellness counseling and subsidies for health club membership - in which participation is voluntary. So, let's get real. Employment is not a right, either. Businesses can hire whomever they wish based on desirable skills and characteristics, so long as the selection factors are lawful. Some call this a violation of privacy, pointing to the principle that "what you do in your own home is your own business." But they forget the pw1 about "so long as it doesn 't harm anyone else." Nor is health insurance a right, but it's darned expensive. Businesses generally need not provide it, and many don't, thanks to years of double-digit cost increases-and a big reason for those is self-destructive behavior by a small percentage of employees. The CDC reports that smoking costs $75 billion a year in excess medical bills and $82 billion in lost \, CHAPTER 6 VALUES AND WORKPLACE ETHICS ( productivity. In Michigan alone, tobacco kills 16,000 people a11nually-111ore than alcohol, AIDS, car crashes, illegal drugs, murders, and s11icides combined. Businesses ha ve the right to protect themselves jimn the horrendous damage smokers inflict upon themsel ves and others-except in states with "smokers ' rights laws, " mostly passed in the early 1990s with tobacco i11dust1y backing. Furthermore, standard company incentives to q11it tobacco haven't worked. WEYCO 's mission is to help businesses impmve employee healrh and cut costs with i11nm•ative benejir plans. WEYCO decided to take the lead by phasing in a tobacco-ji"ee employee policy 01•er 15 months, with company-paid s111oki11g-cessatio11 assista11ce. Ir's not about what people do at home. It's about the acceptance of perso11al responsibility by people we choose to employ. WEYCO is proud of its position 011 tobacco and wellness. For eve1y smoker who quits because of ir, many others-family members, ji·iends, co-workers-will be tha11kjitl the person has chose11 a healthier lifestyle. It's not just about saving money. It's about saving lives." According to Weyers, although some employees were initially negative about the policy: "We believe we have overcome any negativity. Our employees completely understood that employees had 15 months Lo decide what was most important, their job al WEY CO or the use of tobacco. Our employees understand that unhealthy lifestyle decisions made by other employees will affect their paychecks via higher deductibles, co-pays and contributions to the plan." 20 Weyers specified the payoff for the no-smoking policy. Such steps may sou11d draconian, but they get results. By making employees respo11sible for rheir own health, a11d by establishing support programs for them, we have both lowered and stabilized our health care costs. Our insurance costs per employee-including medical and dental care, and prescription and vision coverage-average $300 per 111011rh compared with rhe state average of $500. Our health care costs hm•e remained level for 27 months in a row. 21 ( Cara Stiffler, one of the four WEY CO employees who was fired for failing Lo take the test for tobacco use, stated, "I don't believe any employer should be able Lo come in and tell you what you can do in your own home ." 22 Another employee who quit, Anita Epolito, slated, "You feel like you have no rights. You ' re all alone . It 's the most helpless feeling you can imagine . ... I never, ever from day one conceded to go with his policy because I knew that it had nothing to do with smoking. It had Lo do with my privacy in my own home." 23 In contrast, Christine Boyd felt , "I had to choose between whether I wanted to keep my job and whether I wanted to keep smoking. To me it was a no-brainer." She quit smoking.24 HEALTH AND CIGARETTE SMOKING "Cigaretle smoking has been identified as the most important source of preventable morbidity and premature mortality worldwide. Smoking is responsible for approximately one in live deaths in the United States. From I 995 to I 999, smoking killed over 440,000 people in the United States each year. This includes an estimated 264,087 male and I 78,3 I I female deaths ,annually. Among adults, most smoking allributable deaths were from lung cancer ( 124,8 I 3), coronary hea11 disease (8 I ,976) and chronic airway obstruction (64,735)." 25 Smoking can also significantly contribute to other cancers such as cancer of the esophagus, larynx, kidney, pancreas and cervix. 26 Estimates vary but the peer reviewed literature on the medical costs of smoking put it at 6-8 percent of annual personal health care expenditures in the United States, although this fails to take into consideration the physical and emotional toll imposed on the victims of smoking and their loved ones.27 SMOKING CESSATION Of smokers who had reported smoking at least I 00 cigaretles during their lifetime, only 42 percent reported abstaining from cigarettes during the previous year, and of this group, males reportedly abstained more often than females. 28 It is very difficult to quit smoking since smoking is 129 130 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK habit forming (becoming associated with certain events and feelings) and nicotine (a product of tobacco) is a highly addictive substance that affects the brain. 29 When one tries to abstain from smoking, physical and emotional withdrawals arise such as irritability, weight gain, anxiety, sleeping problems, and fatigue. These physical and emotional withdrawals often prompt relapses within the first few weeks or months . It may take smokers up to three cessation attempts before they finally succeed and stop smoking. Research shows mixed results on the relapse rates for ex-smokers. According to a study in Nicotine & Tobacco Research, the relapse rate for smokers within the first year of trying lo quit smoking ranged between 60 percent and 90 percent. 3 For smokers who had abstained for at least two years, the relapse rate dropped significantly to 2-4 percent, and smokers who had abstained from smoking for I 0 years or more had less than a I percent relapse rate. In contrast, the National Cancer Institute found that smokers who were able to cease from smoking for three months or longer did not usually relapse. 31 Recent research by the National Institute on Drug Abuse (NIDA) discovered a genetically determined enzyme that might contribute to nicotine addiction. In the NIDA study, of the "426 smokers who participated in a IO-week smoking cessation program, those with a gene form that decreases activity of an enzyme that metabolizes nicotine, reported greater craving and were less likely to achieve abstinence during treatment than those with the gene form that increases the enzyme's activity." 32 This research suggests that genetics may make it more difficult for some smokers to quit than others, thereby contributing to higher relapse rates. There are examples of patients in the advanced stages of lung disease in smoking cessation programs who, despite the severity of their illness and the threat of imminent death, fail to quit smoking. 33 Clearly for some individuals, smoking cessation is extremely difficult. ° POLITICAL OPPOSITION Some lawyers and the ACLU contend that WEYCO's termination of smokers goes too far and will not hold up in court. The Michigan legislature is considering joining 2 I other states that passed legislation that prohibits employers from firing smokers. Michigan State Senator Virg Bernero introduced the bill because, "This is America. Your personal time should be your own." 34 WEYCO takes the position that this law would be a step backward for the businesses of Michigan.35 Please answer the following questions about this case and express your personal opinion. There are no "correct" answers. Provide careful and thorough explanations to support your opinions. 1. What are the views of the key stakeholders in this case? 2. What are the ethical issues to consider when deciding to fire tobacco users? 3. Is it appropriate for employers to impose restrictions on individual freedoms? ( CHAPTER 6 VALUES AND WORKPLACE ETHICS 131 4. ls WEY CO doing the right thing? What reasons support your opinion? ( 5. Would you want to work al WEYCO? Why? Corporate Integrity Checkup Rate your current company {or Former employer) against the following 25 best practices in ethics management. If you have never held a job, evaluate any type of organization to which you belong or have had the opportunity to observe closely. ( Code of Ethics 1. Our company has an up-to-date code of ethics {or "code of conduct") that describes typical dilemmas in our industry, and defines ethical work practices . 2. Our company's ethics policies have been developed in consultation with employees and other stakeholders . 3. All employees undergo training in how to implement our code of ethics. 4. Our company has published a set of values that reflect the expectation of ethical work practices. 5 . Our stated values recognize the importance of external stakeholders. Dialogue 6. Questions of ethics are openly discussed in our company. 7. Our people have a safe source of guidance (i.e . other than their boss!) if they have a question about ethics or law. 8. Our people have recourse to a confidential third party (such as an Ombuds office) if they perceive any wrongdoing by their peers or superiors . 9. Our strategic planning process includes a discussion of personal and corporate values . 10. The company's impact on a wide range of external stakeholders is considered as part of our strategic planning process. l Yes Not Sure No 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Yes Not Sure No 0 0 0 0 0 0 0 0 0 0 0 0 0 0 D PART l 132 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Leadership & Empowerment 11. Our company's commitment to ethics is reflected in specific actions, and not just rhetoric . 12. Our managers demonstrate their understand ing that ethical integrity trumps other business demands. 13 . There are clear consequences for those who do not adhere to our stated ethics policies . 14. Our people are encouraged to accurately portray the lim itations as well as the benefits and features of our products/services . Yes Not Sure No D D D D D D D D D D 0 D 0 0 D Yes Not Sure No D 0 0 0 D D 0 0 D 0 0 D 0 0 D Yes Not Sure No 0 0 D D 0 D D 0 D D 0 D D 0 D 15. Our managers (or other staff) are authorized to withdraw a product/service if it is found to be hazardous to public health or safety, or conflicts with our code of ethics . Human Resources 16. People in our company are well equipped to recognize and resolve ethical issues in our business . 17. Ethical integrity is a critical factor when hiring and promoting people. 18. Formal opportunities are provided for our people to review ethical issues with their peers, such as in orientation and training programs or facilitated meetings. 19. Managers and executives receive extensive train ing in ethics as part of our leadership development program. 20. Our managers are evaluated on their commitment to ethics, as well as other aspects of performance . Systems 21. Our incentive system (pay and career advancement) does not provide rewards for unethical behavior. [Take a moment to think about this one!] 22 . Our incentive system does not penalize ethical behavior, even if it costs us time, money or potential business . [Another tricky question!] 23 . Our company systematically verifies the accuracy of claims made to customers about our products/services. 24. Our key suppliers are systematically monitored for product quality, product safety, and humane work practices . 25 . Our Board of Directors has approved mechanisms to ensure compliance with our code, and a schedule to revise the code on an ongoing basis . Add up your points in the "Yes" column __ • If you scored: 15 to 25 Well done! You're healthier than many other corporations. But of course there's always room for improvement managing ethics . 0 to 15 Pretty good score! But as you can see, you could be a lot healthier when it comes to managing business eth ics . Less than 0 It looks like you enjoy living dangerously! Get help soon . Source: Thi s survey is repri nted with permi ss ion of Larry Colero, a consultant who helps organi zations develop corporate ethics programs. Available at http://www.crossroadsprograms.com/corporate.html. Accessed 9/30/06. ( CHAPTER 6 VALUES AND WORKPLACE ETHICS / ( As a purely pragmatic matte1; a society cannot survive, let alone thrive, influential and pervasive institutions from all notions of morality. if it exempts its most Lynn Shwp Payne, Harvard Business School Interface is an example of a company that "does well by doing good ," guided by strong core values and an inspiring vision. Some people have a mistaken perception that firms that act ethically have lower profits. 36 This may be the case in the short term, but companies that engage in unethical practices make themselves vulnerable to lawsuits, boycotts, governmental restrictions and regulations, and loss of reputation-all of which endanger profits . There is growing evidence that good corporate citizenship correlates with higher financial performance. Companies that look beyond maximizing wealth and profits and are driven by values and a sense of purpose outperform companies that focus only on short-term gain.37 Ethical practices pay off in the long run, as trusting relationships with employees, stockholders, and well-satisfied customers are the basis of business success . Hartley contends that: The interests ofafinn are best se1ved by scrupulous attention to the public illferest and by seeking a trusting relationship with the various publics with which a finn is involved. In the process, society also is best se1ved. Such a tmsting relations/zip suggests concern for customer satisfaction and fair dealings. The objective is loyalty and repeat business, a durable and mutually beneficial relationship, which is contrary to the philosophy of short-term pmfit maximization, co1porate self-interest, and coercive practices with employees and dependent suppliers. 311 There are many ethical businesspeople who prosper in large part because of their integrity. In recent years, we have seen an increase in companies that define themselves as socially responsible companies in their mission statement. For example, Levi Strauss voluntarily set up Global Sourcing Guidelines to carefully select contractors in overseas factories and ensure that their products are not made in sweatshops by children .39 Organizations like Anita Roddick's Body Shop and Ben and Jerry's Ice Cream donate part of their profits to "good works," such as human rights groups, community development projects, environmental groups, and peace programs. Richard Branson, CEO of Virgin Group, donated all profits from his airline and train businesses to research and development on renewable energy initiatives. These companies are well known for their value systems and for having a larger purpose than making money. They seek profits but maximizing shareholder wealth is not their only concern . Like the visionary premier companies that prosper over long periods of time and are widely admired (but are not necessarily socially responsible) that Collins and Porras reported on in Built to Last, they have a strong sense of mission based on a shared set of core values. ContlW)' to business school doctrine, "maximizing shareholder wealth" or "profit maximization " has not been the dominant driving force or primwy objective through the histo1y of visionary companies. Visionary companies pursue a cluster of objectives, of which making money is only one-and not necessarily the primwy one. Yes, they seek profits, but they 're guided by a core ideology. values and a sense ofpwpose beyond just making 111011ey. Yet, paradoxically, the i•isionary companies make more money than the more purely profit-driving co111parison companies. 40 l When the profit motive is untempered by ethical values, white collar crime and corporate scandal result. Tyco executives' misuse of company funds , Boeing's irregular procurement of government contracts, Halliburton 's overcharges, and Health South's Medicare fraud are prime examples of unethical behavior in the workplace. The extent of the accounting fraud at WorldCom!, Enron, Qwest, and Adelphia in the United States prompted a good deal of discussion about an ethical decline, soul-searching, and tighte r regulation. In Singapore, a greedy British financial trader in his late 20s was jailed for fraud and forgery, bringing about the collapse of Barings 133 134 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Bank, Britain's oldest merchant bank. The Italian dairy and grocery company, Parmalat, and the Dutch retailer, Ahold, two of Europe 's largest and most global firms , were both guilty of fraudulent accounting practices. The Swiss-based F. Hoffman-LaRoche and the German-based BASF A.G. were heavily fined for fixing prices in the vitamin market they dominate. Accounting scandals occurred at Kanebo Pharmaceuticals and Seibu Railway in Japan and at business conglomerate SK Group in South Korea. China is grappling with corruption in state-owned banks as well as intellectual property theft (failure to respect patents and copyright laws or pay for using what other firms or individuals have created) and piracy (making imitations of brand name goods). 41 Given the growing number of business scandals, it is no surprise that one study found that only 58 percent of U.S. employees view their senior leaders as people of high integrity.42 There are significant costs of unethical behavior to firms: • • • • • • • • • • • • ( Losses in revenue due to customer defections and lost sales Revenue loss due to product recall and withdrawal Operational expenses to correct past errors Higher funding costs imposed by lenders and investors Decreased ability to borrow money Lower share price as shareholders opt to invest in more trustworthy firms Legal expenses Consulting expenses related to investigating allegations Fines, penalties, damages, and settlement costs Increased marketing and PR expenses to counteract the negative publicity of scandal Higher turnover due to employee defections Higher recruiting costs due to the firm's damaged reputation Furthermore, when the business sector does not police itself, governments and international regulating bodies are more likely to intervene with laws and regulations that impact all companies, guilty and innocent alike. For example, the 2002 Sarbanes Oxley act, which requires more extensive accounting reports and transparency from all firms, was a direct result of corporate indiscretions at Enron and WorldCom and Arthur Andersen's failure to report them. Arthur Andersen, a top accounting firm , imploded after blurring the boundary between its consulting and auditing arms and losing the public's trust when it failed to report the transgressions of clients like Enron and WorldCom. The fear of losing consulting dollars made Andersen and other firms less rigorous in their auditing responsibilities . Andersen was found guilty of shredding two tons of Enron-related documents. Although the Supreme Court later overturned this decision and criticized the judicial instructions given to the jury, the ruling came too late to help approximately 28,000 Arthur Andersen employees who lost their jobs and felt their own reputations were unfairly tainted by the actions of unethical colleagues. Ironically, Arthur Andersen's ethics consultants helped other firms set up ethics programs, but the company itself refused to establish one. 43 Not only firms but also shareholders, employees, and taxpayers pay a price for corporate malfeasance. Employees have lost their jobs and pensions, shareholders have lost their income and savings, and taxpayers pay more when government has to police the business sector more carefully and occasionally pick up the tab for wrong-doing, as U.S . taxpayers did with the Savings and Loan scandal bailout which cost billions of dollars.44 Business scandals in developed countries result in less stock market participation due to lack of trust. 45 The increased corporate misconduct of recent years has focused more attention on corporate governance, and some boards of directors have begun to take their governance role more seriously. In theory, boards of directors are responsible for ensuring that the organizations comply with laws and ethical codes. In reality, many boards are only now beginning to live up to this responsibility, by providing more oversight and insisting that firms have ethics programs. The U.S. government provides incentives to firms that develop comprehensive ethics programs; for example, fines for breaking certain laws can be reduced by up to 95 percent and board members are not held personally liable for the firm's unethical actions when comprehensive ethics programs are in place. 46 A growing number of firms have ethics officers, who are responsible for \. CHAPTER 6 VALUES AND WORKPLACE ETHICS ( ( developing ethics programs and ensuring that the company in is compliance with legal requirements. Whether attention to ethics is just for show (called window dressing or, in the case of environmental initiatives, "green-washing") or a serious effort to respect the spirit of the law varies widely from organization to organization. The higher up ethics officers are found in the organizational chart, the greater likelihood that ethics is a serious concern. At UPS, Baxter International , and Raytheon, for instance, ethics officers report directly Lo corporate officers or directors,47 which increases their visibility and influence. Both business and governments are lobbied by a growing number of non-governmental organizations (NGOs) and activists whose mission is to promote more socially responsible corporate behavior. The "CNN effect," rapid international media co1•erage of co1porate transgressions, can result in global boycotts organized by NGOs via the Internet. When governments fail to take action against unethical corporate practices , NGOs take on that role. Although not all NGOs or activists are motivated by purely altruistic motives, they enjoy a higher level of trust that they are operating "in society's best interests" among a survey of people in 47 countries; 59 percent reported a lot or some trust in NGOs compared to 39 percent who trusted global corporations and 42 percent who trusted large national companies. 48 Other surveys indicate that a minority of U.S. Americans currently believe that business strikes a fair balance between profit and the public interest. 49 The recent proliferation of business scandals led business educators to question their own role in influencing the thinking of business practitioners.50 According to Mitroff and Swanson, "Two of the most prominent theories in business education-transaction cost analysis and agency theory-assume that humans are ruthless, motivated solely by greed, opportunism, and selfishness. These theories complement a strain of Neoclassical Economics, which infects curriculum with the message that business decisions are 'value free."' 51 If we teach that all humans are solely motivated by opportunism and selfishness, this can become a self-fulfilling prophecy. Instead, professors are encouraged to focus more attention on the consequences of business decisions on all stakeholders-employees, suppliers, customers, family, and the society as a wholeand to acknowledge that there is more Lo business than profit maximization . Ethics refers to "standards of conduct that indicate how one should behave based 011 moral duties and virtues arising from principles about right and wrong."52 The very nature of busi ness means that managers may be confronted with numerous ethical questions without the benefit of a professional code of ethics, like many other professions have. Companies confront internal issues such as employee safety, discrimination and sexual harassment, theft of company property, and irregular accounting practices in an environment where the financial stakes are very high. In addition, companies have struggled with a host of external ethical dilemmas such as balancing profit with environmental protection and consumer safety and doing business in cultures where bribes are commonplace. While there are many highly ethical business people, there are unethical people in all types of organizations for whom money and power Lake precedence over all else. The key question is whether they are perceived as heroes or villains. 53 This is determined by societal values and by the ethical climate and norms created by each organization . In one U.S . study, 92 percent of the managers agreed that the ethical tone of their firm is determined by the behavior of those in charge, and one-third felt their bosses engage in unethical behaviors and are less concerned with ethics than they are.54 Some companies place employees in positions that force them to choose between their careers and their personal sense of ethics. Factors that lead to questionable business practices are: 1. Overemphasis on both individual and firm performance; 2. Mission statements, evaluation systems, and organizational cultures that focus on profit as l the organization's sole objective; 3. Intense competition among firms, departments, and individuals; 4. Management concern for the letter of the law rather than the spirit; 5. Ambiguous policies that employees interpret as "window dressing" for outsiders rather than clear expectations for ethical behavior; 135 136 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK 6. Inadequate controls so that managers get away with violating standards, allowing them to pursue greater sales and profits for personal benefit; 7. Expediency and indifference to the customers ' best interest; 8. Management's failure lo comprehend the public's ethical concerns; 9. Custom and local practice says "let the buyer beware;" 10. A "groupthink" mentality that fosters group decisions that individual members would not support. 55 Companies that want to encourage ethical behavior need to (I) communicate their expectations that employees will behave ethically and define what that means; (2) hire top executives who set an example of moral behavior; (3) reward ethical behavior and punish unethical behavior; (4) teach employees the basic tools of ethical decision making; and (5) encourage the discussion of ethical issues.5 6 Ethical mistakes are responsible for ending careers more quickly and more definitively than any other errors in judgment or accounting. 57 Nevertheless, one of the factors that inhibits the discussion of ethics in the workforce is a reluctance on the part of managers to discuss the moral aspects of their decision making, even when they are acting for moral reasons. 58 Managers give several reasons for avoiding moral talk. First, people do not like to appear judgmental or intrusive, or lay themselves open to countercharges of wrongdoing. As a result, they often avoid confronting others who are not behaving ethically. Second, moral talk threatens efficiency when it simply muddies the waters and distracts attention from problem solving. Managers worry that it may be self-serving, simplistic, inflexible, or inexact. Finally, some managers fear that the esoteric and idealistic nature of moral talk is not in keeping with the image they want to convey, and they are leery about exposing their lack of training in ethics. Therefore, we find a norm in many businesses to justify decisions on the basis of organizational interests, practicality, and sound economic sense, even when moral considerations play an important role. Although managers struggle individually with ethical problems, in many firms, they seldom discuss them in groups of managers, which gives rise to the term "the moral muteness" of managers. 59 One purpose of this chapter is to provide you with a rudimentary understanding of ethical terms and principles so you can take part in ethical discussions . VALUES Both individuals and organizations have codes of ethics that are rooted in their values . One of the first steps in teaching ethics is to help people identify and articulate their own values. Values are core beliefs or desires that guide or motivate attitudes and actions. Whereas the study of ethics is concerned with how a moral person should behave, values concern the various beliefs and altitudes that determine how a person actually behaves. People, however, do not always act in accordance with their espoused values . For example, you may devote very little time to enacting some of the values you checked off in the Rokeach survey in the class preparation, even though you believe they are important. Our values are shaped early in life; we learn them from our parents, friends, teachers, church, and the culture that surrounds us. As adults, we often seek environments that are compatible with our values. For example, values help determine what companies we are attracted to and how long we stay with them. They also affect how motivated we are al work; people who share the same values as the organization are more committed to the organization than those who do not. 60 Shared systems of values between two entities is called value congruence. Many business people, however, work in organizations whose values differ from their own, an example of value incongruence. Employees may also choose to work in environments that match their ethical preferences. The betler the ethical fit, the more likely employees are to continue with the organization and be committed to it. 61 Whenever people make decisions or talk about what constitutes appropriate behavior at work, we can observe the impact of values, or even conflicts between different values. For example, when companies consider whether to employ temporary or permanent CHAPTER 6 VALUES AND WORKPLACE ETHICS ( employees, which values are more important-saving money for the company or providing benefits and job security to employees? Within our personal value system, some values are more important than others . The exercise in the Class Preparation allows you to see which of the most common values, based on U.S . research, have the greatest significance for you. (In the following chapter on career development, you can see the link between values and career planning in the Class Preparation exercise.) Rokeach, 62 who developed the list of values that you rated, believes that people possess a relatively small number of values that they hold to varying degrees. He classified these key values into two types. Terminal values are desirable end states of existence or the goals that a person would like to achieve during his or her lifetime . Terminal values can be subdivided further into two categories : personal values (a comfortable life, freedom, happiness , salvation) and social values (world peace, equality, national security). Instrumental values are preferable modes of behal'ior or the means to achieving one's terminct! l'(t/ues. There are two types of instrumental values: moral values and competence values. ( Moral values (cheerful , courageous, helpful , honest) tend to have an interpersonal focus; when they are violated, we feel pangs of conscience or guilt. Competence values (ambitious, capable, intellectual, responsible) have a personal focus. When they are violated, we feel ashamed of our personal inadequacy rather than guilty about wrongdoing. Rokeach looked for a relationship between terminal and instrumental values and found that all combinations are possible, as shown in Exhibit 6-1 where you plotted your scores from the Rokeach Value survey. The personal-competence value orientation is most commonly preferred by managers. The personal-moral and social-moral value orientations are the least common for managers and a majority of U. S. Americans.63 When we compare individual values of managers with those of the population at large, we find that "sense of accomplishment," "self-respect," "a comfortable life," and " independence" are more highly valued by managers. 64 Building on Rokeach's work, Schwartz and Bilsky created a universal psychological structure of human values that applies to people from all cultures. Their theory presents seven types of values that motivate behavior: 65 • Prosocial-Active protection or enhancement of the welfare of others. • Restrictive c01iformity-Restraint of actions and impulses likely to harm others and to violate sanctioned norms. Terminal Values (P - S) Social Volues Personal Values Competence Values Instrumental Values (C minus M ) Moral Values Preference for Personal-Competence Values +7 +6 +5 +4 +3 +2 +1 Preference for Personal-Moral Values EXHIBIT 6-1 Personal Values Orientation Typology Refer 10 !he Rokeach Values Survey thal you compleled earlier. +7 +6 +5 +4 +3 +2 +1 0 0 -1 -1 -2 -3 -4 -5 -6 -7 Preference for Social-Competence Volues -2 -3 -4 -5 -6 -7 Preference for Social-Moral Values 137 138 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK • Enjoyment-Pleasure, sensuous and emotional gratification. • Achievemem-Personal success through demonstrated competence. • Maturity -Appreciation, understanding, and acceptance of oneself, others, and the surrounding world. • Self-direction-Independent thought and action--<:hoosing, creating, exploring. • Security-Safety, harmony and stability of society, of groups with whom one identifies, of relationships, and of self. These values have hold varying degrees of importance in different cultures. ETHICAL VERSUS NONETHICAL VALUES When ethical issues arise, we have to distinguish between ethical and nonethical values. Ethical values directly relate to beliefs concerning what is right and proper (as opposed to what is simply con-ect or effective) or that motivate a sense of moral duty. Core ethical values that transcend cultural, ethnic, and socioeconomic differences in the United States are (I) trustworthiness ; (2) respect; (3) responsibility; (4) justice and fairness ; (5) caring; and (6) civic virtue and citizenship. 66 The effort to identify these values is part of a trend toward character building as a remedy for the breakdown in societal values that is taking place in many countries. It is difficult for adults to act ethically if they have not been inculcated with ethical values when they were growing up. Nonethical valu es deal with things we like, desire, or find personally important. Examples of nonethical values are money, fame, status, happiness , fulfillment, pleasure, personal freedom, and being liked. They are ethically neutral. One of the guides to ethical decision making is that ethical values should always take precedence over nonethical values . MORAL REASONING Values alone do not determine our actions. Our behavior is also influenced by our moral reasoning, organizational culture, culture, the influence of significant others, the type of harm that could result from a decision involving ethics, and who might be harmed. 67 The first factor, moral reasoning, is the process by which we transform our values and beliefs into action . This reasoning affects the way managers make decisions. 68 Kohlberg conducted a longitudinal study of the moral reasoning reported by male subjects at various ages. 69 He identified three different levels of moral development which we will call selfcentered, conformity, and principled. Kohlberg uses different labels here (preconventional, conventional, and postconventional),70 but we think it is easier for you to remember titles that describe the major characteristic of each level. The progression through these levels can be summarized as moving from (I) a self-centered conception of right and wrong to (2) an understanding of the importance of conformity and social accord and finally to (3) universal principles of justice and rights. As shown in Exhibit 6-2, each level has two stages, the second of which is more advanced. 71 This level of moral reasoning has a personal focus and an emphasis on consequences. It is usually found among children who see moral issues in the black and white terms of "good and bad" and "right and wrong ." Actions are judged either by their consequences (punishment, reward, exchange of favors) or in terms of the physical power of those who lay down the rules. I ( CHAPTER 6 ( VALUES AND WORKPLACE ETHICS What is Considered to be Right Stage Level One-Self-Centered (Preconventional) Stage One-Obedience and Punishment Orientation Sticking to rules to avoid physical punishment. Obedience for its own sake. Stage Two-Instrumental Purpose and Exchange Following rules only when it is in one's immediate interest. Right is an equal exchange, a fair deal. Level Two-Conformity (Conventional) Stage Three-Interpersonal Accord, Conformity, Mutual Expectations Stereotypical "good" behavior. Living up to what is expected by peers and people close to you. Stage Four-Social Accord and System Maintenance Fulfilling duties and obligations of social system. Upholding laws except in extreme cases where they conflict with fixed social duties. Contributing to the society, group. Level Three-Principled (Postconventional) Stage Five-Social Contract, Individual Rights Being aware that people hold a variety of values; that rules are relative to the group. Upholding rules because they are the social contract. Upholding nonrelative values and rights regardless of majority opinion . Stage Six-Universal Ethical Principles Following self-chosen ethical principles of justice and rights. When laws violate principles, act in accord with principles. ( EXHIBIT 6-2 Three Levels of Moral Development According to Kohlberg Sowre: Linda K. Trevino. "A Cultural Pt!rspective on Changing and Developing Organizational Ethics." in Re.m11d1 in Orgt111i~Llli01wl Change and De1·e/op111el//. W. A. Pasmore and R. W. Woodman (eds. ) (Greenwich, CT: JAi Press. 1990): 198. This level is divided into two stages: Stage 1: The Obedience and Punishment Orientation. The physical consequences of an action determine its goodness or bad ness. An avoidance of punishment and unquestioning deference to power are valued but not because the individual believes in the importance of a moral order supported by punishment and authority. Stage 2: Instrwnellta{Purpose and Exchange ( lnstru111enta/ Relativist Orientation). Interest in satisfying one's own needs is the most important consideration. Elements of fairness, reciprocity, and equal sharing are present, but they are always interpreted in a physical or pragmatic way. For example , reciprocity is a matter of "you scratch my back, and I'll scratch yours" rather than loyalty, gratitude, or justice. l At this level, there is a group focus and an emphasis on social harmony. People are concerned with meeting the expectations of their family, group, or nation. They have moved beyond a preoccupation with consequences to focus on conformity and loyalty to the social order. They support, justify, and identify with the existing social order or with the people or group(s) involved in it. Like the self-centered individuals, this group also sees rules and laws as outside themselves, but they obey them because they have accepted them . At this level, we find the following two stages. 139 140 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Stage 3: lnte1personal Accord, Conformity, and Mutual Expectations (The "Good Boy-Nice Girl" Orientation). Good behavior is defined as behavior that pleases or helps others and is approved by them. Conformity to stereotypical images of what is "natural" behavior (i.e. , behavior that is characteristic of the majority of people) is a common guide. People are concerned with maintaining mutually trusting relationships with people. The Golden Rule, "Do unto others as you would have others do unto you," is common at this stage of moral reasoning. Judging behavior by its intention, for example, "she meant well ," is also found for the first time at this stage. Stage 4: Social Accord and System Maintenance (The Law and Order Orientation). At stage 4, the individual takes the perspective of a member of society. The individual perceives the social system as a consistent set of codes and procedures (legal, religious, societal) that applies impartially to all members in a society. There is an emphasis upon "doing one's duty" and showing respect for authority and maintaining the social order for its own sake. At this level , individuals have a more universal focus that emphasizes internalized ethical standards, rights, or duties . Individuals at this level examine society's rules and laws and then develop their own set of internal principles. These internalized principles take precedence over rules and laws. Stage 5: Social Contract and Individual Rights (The Social Contract Legalistic Orientation). At this stage, the individual realizes that there is an arbitrary element lo rules and the law. Right is relative and perceived as a matter of personal values and opinion. For the sake of agreement, the individual agrees to procedural rules such as respect for contracts and the rights of others, majority will, and the general good . Stage 6: The Universal Ethical Principles Orientation. Right is defined by decisions of conscience, in accord with self-chosen ethical principles that are logically comprehensive, universal , and consistent. These principles are abstract and ethical, such as justice, the reciprocity and equality of human rights, and respect for the dignity of human beings. The research of Kohlberg and others concluded that: 72 1. People's reasoning tends to reflect one dominant stage, although they may occasionally be either one stage lower or higher than the dominant stage. 2. Most adults in Western urban societies reason at stages 3, 4, and 5. Stage 4 reasoning is the most common. Development can stop at any stage. Many prison inmates never get beyond stage 2 reasoning. 3. People develop moral maturity gradually, moving from step to step; they do not skip stages. 4. Development is not governed by age. Some young people reason at a higher stage than their elders. While cognitive development (which normally occurs during adolescence) is a necessary condition for abstract reasoning, it does not guarantee moral maturity. 5. Empathy, the capacity to feel what others are feeling, is also a necessary but not sufficient condition for moral development. 6. Managers whose values are categorized as social-moral in Exhibit 6-1 demonstrated a higher level of moral reasoning. 73 7. Ethical decision making and intended ethical behavior generally increase as individuals utilize higher stages of moral reasoning.74 The major criticisms of Kohlberg's theory follow : 1. The highest stages of reasoning are based on abstract principles of justice rather than social considerations. Since women are more socialized than men to make care-based judgments (how will the people involved be affected?), Gilligan argued that Kohlberg's test was biased against women .75 Originally, Kohlberg only studied men, a common practice before researchers came to appreciate gender differences, but he later incorporated women in his ( CHAPTER 6 VALUES AND WORKPLACE ETHICS ( samples. The controversy is not settled, although there is evidence that women and men do not reason differently when confronted with real-life dilemmas. 76 2. Since Kohl berg 's test consists of hypothetical dilemmas , the results might be different when people confront real-life ethical dilemmas. In Argyris 's terms, their test answers might reflect their espoused theories rather than their theories-in-use. 77 In fact, research on real! i fe di lemmas showed that people reason al various stages , depending on the speci fie dilemma involved. 78 This contradicts Kohlberg's belief that people reason consistently at the highest possible level unless they are transitioning to a higher stage. 3. The theory is culturally biased. The roots of the model are Western European and North American, and the higher stages of the scale reflect individualism rather than an understanding of the demands and obligations owed to others in collectivist cultures. The Chinese, for example, do not seek universal norms for all situations; they balance respect for the individual with the individual's subordination to society and the stale. 79 Although Kohl berg's theory of moral development has been the target of various criticisms, it has been refined and clarified in response and is still the most widely accepted model of moral development. Both personal values and moral reasoning affect the way people make decisions . ETHICAL FRAMEWORKS In addition to moral reasoning, another set of tools that helps with ethical decision are various models of ethics, most of which come to us from the study of philosophy. These are the most helpful frameworks for guiding business decisions that involve ethics. 80 ( l 1. Utilitarianism In utilitarian ethics, a moral act produces the greatest good for the greatest number of people. Therefore, the good of the group takes precedence over consideration for individuals. Actions, plans, and policies are judged by their consequences, not necessarily how they were achieved. This approach is quite common in business decisions. For example, when managers maximize profit, or opt for cfficiem:y and productivity, they can argue that they are obtaining the greatest good for the greatest number. A disadvantage of this approach is that the rights of minority groups can be easily overlooked and the means used to produce the greatest good may not be viewed as ethical by everyone. The utilitarian orientation is often used with environmental issues. 2. Individual Rights Principle Unlike utilitarian ethics, this principle emphasizes personal entitlements in the form of the legal and human rights of individuals. Examples are a person's right to privacy, free speech, and due process. For example, if a person has the right to be paid for an eight-hour day, he or she is also obligated to contribute a "fair day 's work" for a "fair day's pay." Business contracts reflect this approach, which is commonly used with occupational health and safety problems. A negative consequence of rights-based ethics is that it engenders a self-centered, legalistic focus on what is due the individual. Another difficulty with this approach is that the rights of different groups may be in conflict. 3. Justice Principle In this approach, people are guided by fairness, equity, and impartiality when treating both individuals and groups. Fairness is the criterion for distributing the benefits and burdens of society, the administration of rules and regulations, and sanctions. This approach is appropriate for issues such as employment discrimination. 4. Caring Principle The focus in this approach is the well-being of another person . An ethical person is aware of the needs and feelings of others and takes the initiative to respond to that need. The criteria used to judge behavior is, "Who will be harmed and what will happen to existing relationships?"8 1 5. Environmentalism While the preceding approaches concern person-person or personsociety relationships, the environmental ethic extends the boundary to include the personland relationship. A greater understanding of the interdependent relationship between humankind and the continuing sustainability of the earth has resulted in a growing acceptance of an environmental ethic. 82 The basis for sustainability is the belief that people have 141 142 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK an obligation and a duty to act as stewards who protect the earth and its resources and keep them intact for future generations. Many businesses have "gone green" due to global warming, their leaders' personal values, government regulations, or their agreement with some strategy gurus that environmentalism is a strategic competitive advantage. ( ETHICAL DECISION MAKING How can managers ensure that they are taking an ethical approach to decision making? Nash devised 12 questions for examining the ethics of a business decision. 83 1. Have you defined the problem accurately? What are the factual implications of the situation rather than a biased perspective that reflects your loyalties? 2. How would you define the problem if you stood on the other side of the fence? 3. How did this situation occur in the first place? What is the historical background of events leading up to this situation? 4. To whom and to what do you give your loyalty a<> a person and as a member of the corporation? 5. What do you want to accomplish in making this decision? 6. How does this intention compare with the probable results? 7. Whom could your decision or action injure? 8. Can you discuss the problem with the affected parties before you make your decision? 9. Are you confident that your position will be as valid over a long period of time as it seems now? 10. Could you disclose without qualms your decision or action to your boss, your CEO, the board of directors, your family, and society as a whole? 11. What would this decision symbolize for others if they interpret it correctly? What could it symbolize if the decision is misinterpreted by others? 12. Under what conditions would you allow exceptions to your stand? INTERNATIONAL ETHICS The difficulty of making ethical decisions is exacerbated in international business due to different value systems and practices. Bribery, which is frowned upon (if still practiced) in many cultures, is a daily way of life in others. While bribes and kick-backs to win contracts at home and abroad are illegal for U.S . businesses, such practices were actually a valid tax deduction in some countries, such as Germany and Australia until a few years ago. 84 Nevertheless, ethical behavior is viewed as a competitive advantage in global business because it builds trust. 85 Although bribing is an ancient custom, there is a growing movement to curb this practice. At the urging of the United States, the industrialized nations signed a treaty in 1997 that banned bribes and made bribes by businesses to foreign officials a crime. The World Bank, the OECD (Organization for Economic Cooperation and Development), and the International Monetary Fund are attacking various forms of coITupt practices that prevent countries from digging themselves out of poverty and joining the global economy. A common definition of corruption is the abuse ofpublic powerfor private gain. Transparency International 86 publishes an annual list of the perceived corruption among public officials and politicians in various countries. This ranking is detennined by expert surveys of businesspeople and analysts. Of the 159 countries evaluated for the 2005 Corruption Perceptions Index, seventy countries reportedly have high levels of corruption because they scored less than 5 on a I-IO point scale where IO indicates a coITuption-free clean score. Exhibit 6-3 indicates the least corrupt countries, such as Iceland, which has the highest score at 9.7 out of IO, and the most corrupt countries, such as Bangladesh and Chad, each with a score of 1.7. The chairman of Transparency International, Peter Eigen, states that "Corruption is a major cause of poverty as well as a barrier to overcoming it." 87 Most European countries, Singapore, Hong Kong, Australia, Canada, the United States, Japan and Chile, rank in the top 23 positions with scores of 7 or higher. The United States, for example, is number 17 with a score of 7.6 while Japan ranks number 21 with a score of 7.3. China is ranked at number 78 with a score of3.2, and India is ranked at number 88 with a score of2.9. (, CHAPTER 6 VALUES AND WORKPLACE ETHICS ( Country Ranking l 2 3 4 5 6 7 8 9 Highest Ranked Countries (least corrupt) Iceland Finland New Zealand Denmark Singapore Sweden Switzerland Norway Australia 2005 CPI Score (1-10) 9.7 9.6 9.6 9.5 9.4 9.2 9.1 8.9 8.8 Country Ranking Lowest Ranked Countries (most corrupt) 2005 CPI Score (1-10) 152 152 152 152 155 155 155 158 158 Angola Cote d'Ivoire Equatorial Guinea Nigeria Haiti Myanmar Turkmenistan Bangladesh Chad 2 1.9 1.9 1.9 1.8 1.8 1.8 1.7 1.7 EXHIBIT 6-3 Corruption Perceptions Index 2005-Highest and Lowest Ranking Countries l 143 The degree of corruption in a country is determined primarily by cultural values .88 In high power distance cultures, corruption is more likely since subordinates are less likely to question authority ; society is less sympathetic to whistle-blowing, which is perceived as disloyalty or as challenging authority, and superiors are more likely Lo retaliate and use their power to punish whistle-blowing .89 Achievement cultures (or masculinity, as Hofstede terms it) correlate with higher corruption because individuals are encouraged to be successful, ambitious and competitive, which often seems to justify cutting ethical corners.9° Corruption is less likely when economic activity is moderately regulated; having no regulations is ineffective, but an overabundance of regulations leads to bribery since following all the rules is perceived as too difficult and timeconsuming. Corruption is also less likely in countries with socio-political stability and a tradition of abiding by well-established law and order. 91 But, because corruption is a complex social phenomenon, it is difficult to eradicate with laws alone. One of the common dilemmas in international business is whether or not to subscribe lo cultural relativism. Does one accept the values of the local culture (when in Rome, do as the Romans) or continue to observe or even impose one's own values? Do you promote women and minorities in international subsidiaries where there is little or no concern for diversity issues? Do you sell the pesticide that has been banned in the United States as a hazardous product to a lesser-developed country that has no environmental or consumer safety laws? Many of these issues and their legal ramifications are extremely complex . It's important lo identify the cultural values, historical precedents, and legal requirements that are involved . It's also helpful to consull with various people from the other culture Lo make sure you understand the foreign viewpoint. The ethics and values the owners of Kingston Technology Corporation brought with them from Taiwan and Shanghai have resulted in spectacular growth. Based in Los Angeles, John Tu and David Sun sell add-on memory modules for personal computers. In a cullhroat business, they treat their employees, suppliers, and customers like family. They pay their employees, twothirds of whom are ethnic minorities, higher than average salaries and have promised them one lo two years of salary if the business fails. They do multimillion-dollar deals with a handshake . They don't pressure suppliers on price, but they do pay them ahead of schedule if possible and never cancel orders. Their philosophy of making customers, workers, and suppliers happy has translated into one of the highest revenue per employee figures anywhere.9 2 Several codes of conduct for global business have been developed by international organizations, such as the European corporate code of conduct, global Sullivan Principles, OECD Guidelines for Multinational Enlerprises-2000, and the Caux RoundTable Principles for Business. The principles identified by this last group are (I) be responsible for stakeholders as well as shareholders; (2) contribute Lo the economic and social development of the world community; (3) behave ethically in accordance with the spirit of the law; (4) respect international and domestic rules ; (5) support multilateral trade systems; (6) respect the environment; and (7) avoid illicit operations (bribery, money laundering, corruption). 93 144 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK CORPORATE SOCIAL RESPONSIBILITY In recent years, companies have come to realize the importance of intangible assets, such as company values, human and intellectual capital, reputation and brand equity.94 Companies that demonstrate good corporate citizenship (an intangible asset) are likely to have a competitive advantage in business and in their ability to attract and retain employees, 95 particularly Gen Y employees who are reportedly more idealistic than some previous generations. A meta-analysis that looked at the aggregated results of 10 studies found that corporate social responsibility does pay off financially for firms due to the positive impact on the firms' reputations. 96 Corporate social responsibility (CSR) is broadly defined as a company's commitment and contribution to the quality of life of employees, their/amities and the local community and society overall to support sustainable economic development.97 Business has long been involved in philanthropic causes, but current CSR efforts also encompass cause-related marketing, minority support programs, socially responsible employment and manufacturing practices, and environmental practices. Furthermore, many firms have begun to pressure their business partners, particularly overseas suppliers, to adhere to more universal workplace standards. The Web sites of more than 80 percent of Fortune 500 companies contain a section on their CSR activities, which seems to indicate that business leaders perceive CSR as both an ethical/ideological and an economic imperative. 98 Although CSR programs seem to be proliferating, not everyone believes that business should use shareholder wealth for any purpose other than business. For example, economist Milton Friedman and others believe that corporations' only obligation is to shareholders and that the public good is the responsility of government which is better equipped for this role. 99 These critics also argue that the money spent on CSR is better devoted to other priorities like research and development. There is growing demand for more accountability and transparency in business, along with greater corporate social responsibility. The 1999 Millennial Poll of 25,000 people from 23 countries found that ( 1) people all around the world base their opinion of firms on their corporate citizenship; (2) 20 percent rewarded or punished firms (e.g., buying, investing or boycotting) for their social performance and would consider doing so again in the future; and (3) 66 percent want companies to go beyond a focus on profit to contribute to broader societal goals. 100 Sixty percent of global managers of various nationalities reported that CSR activities results in enhanced reputations and goodwill that facilitates relations and opportunities in local communities. IOI According to a 2004 survey, 82 percent of U.S. firms reported that corporate citizenship is beneficial to the bottom line, and 74 percent indicated that the public has a right to expect corporate citizenship. 102 Changing expectations about corporate responsibility has led to a shift from the shareholder to a stakeholder model in some firms with the result that communities and other groups affected by corporate decisions were brought into a dialogue. 103 Starbuck's efforts to pay higher prices to coffee growers, Hewlett Packard's attempts to alleviate poverty by bridging the digital divide between the haves and the have-nots in the United States and lesser-developed countries, and Chiquita Banana's environmental improvements for plantation workers and neighbors re11ect a stakeholder approach. 104 In the ranking of the 100 Best Corporate Citizens for 2005, published in Business Ethics Magazine, the number one firm is Cummins, the Indiana-based engine maker. To make this list, companies perform at a high standard and service a variety of stakeholders with excellence and integrity. Cummins won because it tripled earnings at the same time it greatly reduced airemissions. Cummins employees have employee ownership and profit sharing. The firm publishes a sustainability report and funds schools in China and India, biodiversity in Mexico, and architecture in its local community. 105 ( The purpose of this exercise is to provide an opportunity to discuss an ethical dilemma and identify different types of moral reasoning and value considerations (Time allotted: 60 minutes). \,_ CHAPTER 6 VALUES AND WORKPLACE ETHICS ( STEP l . In your learning group , discuss your answers to the case questions that you completed in the Class Preparation. STEP 2. If possible, come to a group consensus on whether WEYCO is doing the right or wrong thing with their smoking ban. What values can you identify in this discussion? STEP 3. Using Exhibit 6-2 , what stage of moral development is reflected in the reasoning behind your group decision? What stage of reasoning is reflected in your individual decision in the class preparation ? What stages of reasoning do Howard Weyer's statements reflect? (Steps 1-3-30 minutes) STEP 4. General Debriefing Questions. (30 minutes) 1. What are the views of the key stakeholders in this case? 2. What are the ethical issues to consider when deciding to fire tobacco users? 3. Is it appropriate for employers to impose restrictions on individual freedom s? 4. What values were evident in your group discussion? Was anyone thinking of different values when you made your individual decision prior to class? Which values took precedence-ethical or nonethical? 5. Diel your group come to a consensus on whether WEYCO is doing the right or wrong thing? II' so, what is your group decision? Describe the level of moral reasoning on which it was based . 6. What ethical framework is WEYCO using to support their anti-smoking banutilitarianism, individual rights principle, justice principle, caring principle, or environmental ism '? 7. Would you want to work at WEYCO? Why? ETHICS IN ( EVERYDAY WORKLIFE The purpose of this exercise is to compare our views on workplace ethics . (Time allotted: 30 minutes) STEP l . Please fill out the following survey. 106 (5 minutes) How ethical are these behaviors? I = very unethical ethical 2 = unethical 3 = neither ethical or unethical 4 =ethical 5 = very _ _ Accepting gifts/favors in exchange for preferential treatment _ _ Giving gifts/favors in exchange for preferential treatment _ _ Divulging confidential information _ _ Calling in sick to take a day off _ _ Taking the organization's products without permission _ _ Using the organization's materials and supplies for personal use without permission (e.g., using company stationary, envelopes, sneaking food) _ _ Using the organization's services for personal use without permission (e.g., sending personal mail, asking the computer staff to fix your home computer at the office) _ _ Doing personal business on work time without permission (e.g., surfing the web, playing computer games, making personal phone calls) _ _ Taking extra personal time (additional breaks, long lunches) _ _ Blaming innocent co-workers for errors they did not make _ _ Claiming credit for someone else's work _ _ Not reporting other's violations of organizational policies _ _ Concealing your errors l _ _ Total (sum your response) _ _ Average (divide your total score by 13) 145 146 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK STEP 2. Discuss your answers with your learning group. (15 minutes) a. Compare your scores in your learning group. Which items had the grea test consens us? b. Which items showed the most disagreement? Discuss why you disagree on these items. What factors could explain why you perceive these behaviors differently? Approach this discussion like a scientist who is trying to understand, rather than simply judge, human behavior. c. Were there any items that were difficult to rate due to the possibility of extenuating circumstances that you would want to consider? STEP 3. In the plenary group, discuss the following question . (I 0 minutes) a. If you were the owner of the company, would you answer differently ? b. What did you learn about personal ethics from this discussion? ~ ~~1l ':"; :'l<_" ~t~ g f ~".: ~~) 1. Ethics refers to standards of conduct that indicate how one should behave based on moral duties and virtues arising from principles about right and wrong. 2. Ethical practices pay off in the long run, as trusting relationships and well-satisfied customers are the basis of repeat business. 3. Companies create an environment in which unethical practices are more likely when they focus solely on profit and intense competition; when top management gives lip service only to ethical behavior and fails to establish clear policies and adequate controls; and when they are insensitive to the customer's best interests and public concerns about ethics. 4. Companies that want to encourage moral behavior (I) communicate their expectations that employees will behave ethically and define what that means; (2) hire top executives who set a good example; (3) reward ethical behavior and punish unethical behavior; (4) teach employees the basic tools of ethical decision making ; and (5) encourage the discussion of ethical issues. 5. Values are core beliefs or desires that guide or motivate attitudes and actions. 6. Rokeach developed a list of the most common American values, which people hold to varying degrees. 7. Terminal values are desirable end states of existence or the goals people want to accomplish in their lifetime. Terminal values are either personal or social. 8. Instrumental values are preferable modes of behavior or the means to achieving one ' s terminal values. There are two types: moral and competence. 9. Schwartz and Bilsky created a universal psychological structure of human values that applies to people from all cultures, which consists of seven motivational types of values: prosocial, restrictive conformity, enjoyment, achievement, maturity, self-direction, and security. 10. Ethical values directly relate to beliefs concerning what is right and proper and motivate a sense of moral duty (trustworthiness, respect, responsibility, justice and fairness, caring, and civic virtue). Nonethical values are things we like, desire, or find important. Ethical values should always take precedence over nonethical values. 11. Kohlberg's theory of moral development consists of three levels: self-centered, conformity, and principled. Individuals move through these stages from a self-centered conception of right and wrong to an understanding of social contracts and internalized principles of justice and rights. 12. The five ethical models are utilitarian, rights and duties, justice, caring, and environmental ethics. 13. The difficulty of making ethical decisions is intensified in international business due to different value systems and business practices. ( CHAPTER 6 VALUES AND WORKPLACE ETHICS ( FOR EMPLOYEES ( • "Experts" at ethics know their personal values and can readily articulate them. They have spent time figuring out what is 'most important in life to them. • They can also decode what values seem to be guiding the behavior of others, which helps them discuss ethical dilemmas . • When they have a choice, "experts" choose to work for an organization whose values are compatible with their own . They work at identifying the real values , not just the espoused values, that are manifested by prospective employers and colleagues in their actions, interviews, and written materials. • When faced with ethical dilemmas, they know who would be the best people to go to for consultation and advice. Knowing who to go to is largely determined by political considerations as well as the integrity, discretion, and wisdom of the advisors. Novices are often less likely to seek help or less likely to consult the right advisors. • They try to settle ethical issues internally first before going outside the company. • When there is wrong-doing, "expert" employees analyze the source of the problem and know what actions are most likely to halt the behavior in a particular situation. If their first allempt doesn't succeed, they exert more pressure, take more formal action, go higher up _lhe organizational hierarchy, or even resort to public whistle-blowing as the situation demands. They understand that there is an escalating progression of actions that they can employ, which is not formulaic but reflects their understanding of what will work with different people at different times. Novices are more likely to see themselves as having fewer options, for example, being stuck between a rock and a hard place-"either I go along with this or I'll be fired" or "If I speak up, I'll be fired." • "Expert" employees see themselves as embedded in a network-they understand that their actions not only reflect on themselves personally but on their work unit and the company as a whole . They are able to identify everyone who might be impacted by unethical behavior on their part and how they would be affected. They can play out the consequences of their behavior. • Whistle-blowing is legitimate when ( 1) it would benefit the public interest; (2) the revelation is of major importance and very specific; (3) the facts have been checked and rechecked for accuracy; (4) all other avenues within the organization have been exhausted; and (5) the whistle blower is above reproach and has no personal advantage to gain by revealing the information. 107 FOR MANAGERS • The top management of an organization sets the moral tone of the company. If they consistently behave in an ethical manner and set clear expectations that their subordinates should behave ethically, it is less likely that violations will occur. Some of the standards of moral behavior that are commonly expected of employees are (I) keeping one 's promises, (2) not harming others, (3) helping others in need, (4) respecting others and not treating them merely as means to your own ends, and (5) not using company resources for one's own purposes . • Expert managers encourage and promote the discussion of ethical dilemmas. Employees should not be punished for questioning a decision on moral grounds. However, ethics discussions become more difficult and polarized when people take the "moral high road" and criticize those who do not share their values. Experts work at identifying and understanding the different perspectives on an issue and then discuss the consequences of alternative actions that might be taken . • Managers who are skilled at ethics help employees and co-workers see the broader picture, generate and evaluate various alternatives, and keep working the problem until they arrive at a creative option when there is no simple solution to ethical dilemmas. • They learn how to coach others through ethical mind fields in a way that provides clear moral standards in a nonjudgmental fashion . 147 148 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK • Expert managers understand the symbolic nature of their actions and the message they send lo the rest of the organization about the importance of ethical behavior. They see themselves as accountable to shareholders, owners, and society. • They use systems thinking to analyze how ethical problems evolved and to foresee the longterm consequences of unethical behavior. • When making decisions, they can identify all the different stakeholders that need to be considered and how they might be affected by the decision . • Expert managers are skilled at generating various alternative strategies for resolving ethical dilemmas and can foresee and evaluate the consequences of each. unethical behavior. • Expert managers have a finely tuned radar for recognizing questionable behavior and use the Ethics Warning System when they make a decision: ios • Golden Rule-Are you treating others as you would want to be treated? • Publicity -Would you be comfortable if your reasoning and decision were to be publicized (i.e., how would it look on the front page of tomorrow's papers)? • Kid on your shoulder-Would you be comfortable if your children were observing you? Is your behavior an example of ethical behavior? • When involved in global business, expert managers can read the cues in the local culture context and learn how to avoid bribery requests. They also develop relationships with decisionmakers and people at the top of the organization in both relationship and hierarchical cultures to avoid having to bribe people lower in the organizational hierarchy to take their requests or messages up through the internal communication channels. 109 FOR ORGANIZATIONAL ARCHITECTs1 10 • Expert organizational architects know that organizations begin with a mission statement that defines the values and beliefs of the organization and a vision that spells out their responsibilities to stakeholders. The next step is an up-to-date code of conduct with specific and measurable standards for which employees are held accountable in performance reviews. The code of conduct focuses on ethical dilemmas that are typical in the industry and clearly defines ethical work practices. All employees are trained in implementing the code of ethics. • To help their organization promotes ethical behavior, expert designers work to ensure that the following practices are put in place: • Citizenship and ethical conduct are criteria in the performance evaluation process. Employees are not given incentives for unethical behavior, nor are they penalized for ethical behavior. • The company communicates and enforces clear consequences for those who do not behave ethically. • Employees have someone other than their boss, a confidential third party, whom they can go to with ethical questions and concerns about unethical actions. • The organization has a published set of values that includes the expectation of ethical work behavior and recognizes the importance of stakeholders. These values are not just rhetoric and public relations but are reflected in the organizational culture and norms of each work unit. • Because one's values are fairly well set by adulthood and difficult to change, ethical workplaces focus on developing selection and hiring practices that weed out candidates with questionable ethics. Ethical behavior and integrity are also important factors in determining who gets promoted. • Corporate strategic planning includes a discussion of personal and corporate values as well as the impact of decisions on a broad range of external stakeholders. • Ethics are considered in supplier contracts, and supplies are monitored for product safety, quality, and labor practices. • Experts understand that firms send a strong message to their employees and benefit from striving toward and attaining the standards for inclusion in lists of well-respected companies, such as "I 00 Best Corporate Citizens." • They develop a CSR program, they also begin with their mission, responsibilities to key stakeholders, standards of conduct, and metrics to measure their progress. 111 ( CHAPTER 6 VALUES AND WORKPLACE ETHICS ( ( '· • They know that a viable CSR strategy usually requires open dialogue and constructive partnerships with government at various levels, non-governmental organizations (NGOs) including activist groups, and local communities. • When designing social and environmental programs , experts establishing successful CSR programs listen to the wishes or local communities and respect the beliefs (e.g., cultural , ethnic, or community beliefs) they may encounter. Since programs that work in one setting may not succeed elsewhere, local input and guidance are essential. Despite allowances for local variation, good CSR programs still maintain consistent global standards and policies. • They obtain feedback from relevant stakeholders on how well they are meeting their social responsibility goals, as Royal Dutch/Shell does with its 'Tell Shell" Web site. 112 • They can develop social metrics to measure the organizational impact on society and the environment , 113 benchmark with others to learn best practices, and invite outsiders in Lo evaluate their ethics programs. • Experts consider joining global organizations that promote CSR, such as Social Accountability International's Corporate Involvement Program , the Ethical Trading Initiative, and the United Nations' Global Compact. Think back over the last few years and try to recall a specific event or situation at school, work, or home when you were confronted with an ethical dilemma or a difficult situation that called for a socially responsible action. Some examples might be taking something that did not belong to you, observing someone else's dishonest behavior, or having to decide between looking out for yourself and possibly harming another person . 1. In writing, describe the situation in some detail. How did this situation occur? Who else was there besides yourself? What were they doing? What were you doing? If you were on the receiving end of an unethical act, how were you treated? What were the issues involved? 2. How would you describe the main issues if you were on the other side or the fence? 3. What were the conflicts or dilemmas for you in this situation? 4. Why were they conflicts? 5. What did you do? l 149 150 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK 6. Why did you do it? What were your intentions? Were there extenuating circumstances that affected your decision? ( 7. What were the results of your actions? 8. At the time of the situation, did you think you did the right thing? 9. Now, looking back, what if anything would you do differently? 10. What conclusions or lessons can you draw from this reflection? ENDNOTES 1 P. Hawken, The Ecology of Commerce: A Declaration of Sustainability (New York: HarperBusiness, 1993). 2 T. Petzinger, "Business Achieves Greatest Efficiencies When at Its Greenest," Wall Street Joumal. (July 11, 1997): BI . 3 Ibid. instructions for scoring this version of the Rokeach Value Survey were developed by James Weber. "Managerial Value Oiientations: A Typology and Assessment,'' /111emational Journal of Value Based Management 3(2) ( 1990): 37-54, and adapted by Bruce Drake. 4 13 This case was written by Asbjom Osland and Pamela Wells. San Jose State University, 2005, and is excerpted here with permission of the authors. 5 R. C. Anderson, R. C., Speech, Shared Air Summit, Toronto, Canada (June 20, 2005). 14 Information about the company, including the creed, was retrieved from http://www.wE.com/web. Accessed 6/3/05. 6 15 H. Bradbury and J. A. Clair, "Promoting Sustainable Organizations with Sweden's Natural Step," Academy of Management Execwive 13(4) ( 1999): 63-74. ethics.com/whats_new/I OObest.html. Accessed I0/ 15/2005. Commentary by John Stossel, retrieved from http:// abcnews.go.com/ 2020/GiveMeABreak/ story?id= 650390&page= I. Accessed 6/6/05. 7 16 P. Asmus. " 100 Best Corporate Citizens for 2005," Business Ethics Online (Spring, 2005) http://www.businessAnderson. Speech, Shared Air Summit. 8 Bradbury and Clair, "Promoting Sustainable Organizations with Sweden's Natural Step." 9 http://www.naturalstep.org/aboul/clients.php. Accessed I0/8/05. IO The Nafllral Step: From Consensus to Sustainable Developmellf (Sausalito, CA: The Natural Step. 1997). 11 http://www.workindex.com/ editorial/hre/hre0201-03.asp. Accessed 613105. 17 http://www.workrights.org/issue_l ifestyle/ld_legislative_brief.html. Accessed 613105. 18 J. W. Peters, "Company's Smoking Ban Means Off-Hours. Too." New York Ttmes (February 8. 2005): C.5. 19 "WEYCO fires 4 employees for refusing smoking test." Bradbury and Clair, "Promoting Sustainable Organizations with Sweden's Natural Step": 72. Associated Press State & Local Wire (January 24, 2005). 12 20 The authors would like to thank Bruce Drake. James Weber, and Asbjom Osland for their contributions to this chapter. The Personal e-mail communication from Anne Lichliter, Executive Assistallf to Howard Weyers, dated 615105. CHAPTER 6 VALUES AND WORKPLACE ETHICS ( 21 H. Weyers, "HBR Case Commentary- Should Sid's weight be a factor in Bill's decision?" Ha1v£1rd Business Review 83(5) (May 2005): 38. K. B. Hoffman (Associated Press). "Kick the habit---or get kicked off the job; Firm's policy fuels privacy concerns." Chicago Tribune, (February 9. 2005): 22. 22 23 Peters. "Company's Smoking Ban Means Off-Hours. Too." 24 Ibid.: C.5. B. Toftler, Final Acco11111ing (New York: Broadway Books, 2003). 43 R. Elaydi. "A Meso Approach to Understanding Ethical Behavior." Paper presented at the Academy of International Business conference. Quebec. Canada, 2005. 44 45 46 K. E. Warner. T. A. Hodgson, and C. E. Crurnll, "Medical costs of smoking in the United States: estimates, their validity. and their implications." Tobacco Co111ivl 8 ( 1999): 290-300. National Household Survey on Drng Abuse, http://www.oas.samhsa.gov/2k2/tobquit.htm. Accessed 6/5/05. 28 National Institute on Drug Abuse Research Report Series. http://www. nida. nih.gov/researc hreports/n ico ti ne/n icoti ne. html. Accessed 6/5/05 29 1 .0 http://www.cfah.org/nbns/newsrelease/relapse2-27-02.cfm. Accessed 6/7/05. 3 I Household Survey on Drug Abuse. http://www.oas.samhsa.gov/2k2/tobquit.htm. Accessed 6/5/05. http://www.nida.nih.gov/NIDA_notes/NNVol l 8N3/ Genetic/html. Accessed 6/5/05. 32 l Walker Information (personal communication October 27, 2005). This organization tracks ethics data. 42 Retrieved from the National Cancer Institute: http://cis.nci.nih.gov/fact/l 0_19/htm on June 5, 2005. 27 ( and corporate scandals, see: http://www.ex.ac.uk/RDavies/ruian/scandals/classic.html. 25 American Lung Association, http://slati.lungusa.org/ default.asp. Accessed 6/3/05. 26 W. A. Mojica. et al. Smoking-cessation interventions by type of provider: A Meta-analysis. American Joumal of Prevenlive Medicine 26(5) (2004): 391-400. 34 T. Martin. Michigan Senate Bill Would Protect Workers Who Smoke On Own Time. Dl'l1vi1 Free Press. (April 13, 2005). 35 Personal e-mail communication from Anne Lichliter. Executive Assistant to Howard Weyers. June 5. 2005. 36 R. F. Hmtley. Business E1hics: Violmions of the P11blic Tr11st (New York: John Wiley & Sons. 1993). This book describes ethics scandals and how companies handled them. 37 J.C. Collins and J. I. Porras. B11ilt to i..Lls1 (New York: HarperCollins, 1994). .18 R. F. Hartley. Business E1hics: Violmions of the Public Trusl: I and 323. 39 R. D. Haas. "Ethics-A Global Business Challenge," Vila! Speeches oflhe Day (1994): 506-509. 4 0 Collins and Po1Tas. Bui/I lo Last: 8. 41 C. Johnson, "Ahold Settles SEC Fraud Charges" The Washington Post (Thursday, October 14, 2005): E03; G. Edmondson and L. Cohn, "How Parmalat Went Sour" B11sinessWeek Online (January 12. 2004). http://www.businessweek.com/ magazine/content/04_02/b3865053_mz054.htm. Accessed IO/l 1/05. B. Bremner and D. Robens, "Wanted: A Big Broom for China's Banks" Business Week Online (May 9, 2005). http://www.businessweek.com/magazine/content/05_ l 9/b3932074.htm. Accessed 10/11/05. "SK Group Owner Jailed on Fraud, Illegal Accounting Charges." B11siness Times (Singapore) (June 13, 2003). For a Web site on classic financial 3.1 151 "America's Ague." The Economist 377 (October 15. 2005): 75-76. A. Wheat. "Keeping an Eye on Corporate America." Fortune 146(11)(November25. 2002): 44-46. 47 Wheat. "Keeping an Eye on Corporate America." Environics and the Gallup Organization. " Voice of the People Survey'' (2002). 48 P.A. Argenti. Corporate Com1111111ica1ion. 3rd Ed. (New York: McGraw-Hill . 2003). 49 S. Ghoshal , "Business Schools Share the Blame for Enron:· Financial 7i111es (July 17. 2003): 19. 50 51 I. I. Mi troff and D. L. Swanson. "An Open Letter to the Deans and the Faculties of American Business Schools: A Call to Action." Academy of Managemenl News 35 (2004 ): 7. 52 M. Josephson, Making Ethical Decisions (Marina Del Rey, CA: The Josephson Institute of Ethics, 1993 ): 4. M. Josephson. Ethical Obligations and Opportunities in Business: E1hical Decision Making in the Trenches (Marina Del Rey, CA: Josephson Institute of Ethics, 1990). 53 54 B. Z. Posner and W. Schmidt. "Values and the Ameiican Manager: An Update Updated:' California Management Review 34(3) (Spiing 1992): 80-94. 55 Hmtley. B11siness E1hics: Violations of the P11blic Trust: 5; and G. F. Cavanagh. American B11siness Values (Englewood Cliffs. NJ : Prentice Hall. 1984): 159. 56 M. J. Baasten and B. H. Drake, "Ethical Leadership." Social Sciences Perspeclives Joumal (March 1990). R. C. Solomon. Ethics £1nd Free Ente171rise in the Global 1990s (Lanham, MD: Littlefield Adams, 1993). 57 58 F. B. Bird and J. A. Waters. '"The Moral Muteness of Managers." California Ma11ageme111 Review 32( I) (Fall 1989): 73-88. 59 Bird and Waters, "The Moral Muteness of Managers." R. E. Boyatzis and F. R. Skelly, '"The Impact of Changing Values on Organizational Life," The Organi;;ational Behavior Reader (Upper Saddle River. NJ: Prentice Hall, 1995). 60 R. L. Sims. and E.G. Kroeck, "The Influence of Ethical Fit on Employee Satisfaction, Commitment and Turnover... Joumal of Business Ethics 13 (1994): 939-947. 61 M. Rokeach, The Nature of Values (New York: The Free Press, 1973). 62 J. Weber. "Exploring the Relationship Between Personal Values and Moral Reasoning," Human Re/a/ions 46(4) ( 1993): 435-463 and "Managerial Value Orientations: A Typology and Assessment," //l/ernational Journal of Value Based 63 152 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Management 3(2) ( 1990): 37-54; and G. F. Cavanagh, American Business Values. "Collectivism in Moral Development," Psychological Review 80(3) ( 1997): 967-976. D. A. Clare and D. G. Sanford, "Mapping Personal Value Space: A Study of Managers in Four Organizations," Human Relations 32 ( 1979): 659-666. 65 S. H. Schwartz and W. Bilsky, ''Toward a Theory of the Universal Content and Strncture of Values: Extensions and CrossCultural Replications" Journal of Personality and Social Psyc/10/ogy 58(5) ( 1990): 878-891 . 80 See 64 66 These core ethical values were developed by a diverse group of 30 national leaders. M. Josephson, Making Ethical Decisions: 9. 67 J. Weber, "Exploring the Relationship Between Personal Values and Moral Development." Human Relations 46(4) ( 1993): 459. 68 L. K. Trevino and S. A. Youngblood, "Bad Apples in Bad Barrels: A Causal Analysis of Ethical Decision-Making Behavior," Journal ofApplied Psychology 75 ( 1990): 378-385. 69 L. Kohl berg. "Stages of Moral Development as a Basis for Moral Education," in C. M. Beck. B. S. Crittenden, and E. V. Sullivan (eds.), Moral Education: Interdisciplinm)' App1vaches (New York: Newman Press, 1971 ); and A. Colby and L. Kohl berg. The Measurement of Moral Judgmellf, Vol. I: Theoretical Foundations and Research Validations (Cambridge, MA: University Press, 1987). 70 These titles are taken from D. A. Whelton and K. S. Cameron, Developing Managerial Skills (New York: HarperCollins, 1991 ): 60. 71 The more desc1i ptive stage names are taken from L. K. Trevino, "A Cultural Perspective on Changing and Developing Organizational Ethics," in Research in Organizational Change and Development, W. A. Pasmore and R. W. Woodman (eds.) (Greenwich, CT: JAi Press, 1990): 195-230. 72 L. Kohlberg, Essays in Moral Development, Vol. I: The Philosophy of Moral Developme/l/ (New York: Harper & Row, 1981 ): and R. Duska and M. Whalen, Moral Development (New York: Paulist Press, 1975). J. Weber. "Exploring the Relationship Between Personal Values and Moral Development," Human Relations 46 (4) ( 1993): 454. 73 74 Ibid.: 441. 75 C. Gilligan, In a Dijfere/l/ Voice (Cambridge, MA: Harvard University Press, 1982); C. Gilligan, and J. Attanucci, ''Two Moral Orientations: Gender Differences and Similarities," Merrill-Pa/mer Quarterly 34( 1988): 223-237. 76 G. R. Wark, and D. L. Krebs, "Gender and Dilemma Differences in Real-Life Moral Judgment," Developmental Psychology 32(2) ( 1996): 220-231. 77 C. Argyris, Overcoming Organizational Defenses: Facilitating Organizational Leaming (Boston: Allyn and Bacon, 1990). R. S. Snell, "Complementing Kohlberg: Mapping the Ethical Reasoning Used by Managers for Their Own Dilemma Cases," Human Relations 49( I) (1996): 23-50. 78 79 S. K. Lau and H. C. Kuan, The Ethos of the Hong Kong Chinese (Hong Kong: Chinese University Press, 1988) and C. C. Ji, Cavanagh, American Business Values: 139-145 and G. F. Cavanagh, D. J. Moberg. and M. Velasquez, ''The Ethics of Organizational Politics," Academy of Management Review 6(3) (1981): 363-74 and "Making Business Ethics Practical," Business Ethics Quarterly 5(3) (1995): 399-318. 81 C. Gilligan, In a Different Voice. 82 G. Dutton, ''The Green Bottom Line," Management Review 87(9) ( 1998): 59-64; C. Merchant, "Environmental Ethics and Political Conflict," Environmental Ethics 12(1) (1990): 45-68; A. Miller, Gaia Connections (Savage, MD: Rowman and Littlefield, 1991 ); R. A. Buchholz, Principles of Environmental Management: The Greening of Business (Upper Saddle River, NJ: Prentice Hall, 1998). 83 Adapted from L. L. Nash, "Ethics Without the Sermon," Harvard Business Review 59 (November-December 1981 ): 79-90. 84 M. Milliet-Einbinder, "Writing Off Tax Deductibility," OECD Obse1wr, (Aptil 2000): 38-40. 85 P. Buller and G. McEvoy, "Creating and Sustaining Ethical Capability in the Multi-national Corporation." Journal of World Business 34(4) (1999): 326--343. 86 Transparency International , (http://www.transparency.org/). Accessed 7I I/06. Transparency International Corruption Perceptions Index 2005. 87 http://wwI.transparency.org/cpi/2005/cpi2005_infocus.html. Accessed IO/ 19/05. 88 B. Husted, "Wealth, Culture, and Corrnption," Journal of lntemational Business Studies 30(2) ( 1999): 339-360; H. Park, "Determinants of Corrnption," The Multinational Business Review 11(2) (Fall 2003): 29-48. 89 D. V. Cohen and K. Nelson. "Multinational Ethics Programs: Cases in Corporate Practice." In Hoffman, Kamm, Fredetick, & Petry Jr. (eds.), Emerging Global Business Ethics (Westport. CT: Quornm, 1994). 90 H. Park, "Determinants of Corrnption," The Multinational Business Review 11(2) (Fall 2003): 29-48. 91 Park, "Determinants of Co1ruption." 92 "Doing the Right Thing," The Economist 335(7915) ( 1995): 64. "Caux Round Table Ptinciples for Business." http://www.cauxroundtable.org/documents/Ptinciplespercent20fo rpercent20Business.PDF. Accessed I0/ 15/05. 94 L. Low and P. C. Kalafut, Invisible Advantage: How Intangibles Are Driving Business Pe1formance (Cambtidge, MA: Perseus Publishing, 2002). 95 N. Lockwood, "Corporate Social Responsibility: HR's Leadership Role." SHRM 2004 Research Quarterly (2004): 4. 96 M. Orlitsky, F. L. Schmidt, and S. L. Rynes, "Corporate Social and Financial Performance: A Meta-Analysis," Organization Studies 24(3) (2003): 403-411. 97 World Business Council for Sustainable Development, 93 Co1porate Social Responsibility: Making Good Business Sense ( CHAPTER 6 VALUES AND WORKPLACE ETHICS ( (Conches-Geneva, Switzerland: World Business Council for Sustainable Development. 2000). 98 N. C. Smith. "Corporate Social Responsibility: Whether or How?" California Manage111e111Review45(4) (Summer 2003): 52-76; K. B. Murray and C. M. Vogel, "Using a Hierarchy or Effects Approach to Gauge the Effectiveness of CSR to Generate Goodwill Towards the Firm: Financial versus Nontinancial Impacts" Jo11mal of Business Research 38 (1997): 141-159. For guidance on maximizing the benefits or social and strategic initiatives in collaborative social initiatives. see J. A. Pearce. II and J. Doh. "The High Impact of Collaborative Social Initiatives." MIT Sloan Ma11age111e11t Revieiv 46(3) (2005): 30--39. 99 "The Good Company.'' The Eco110111ist 374 (8410) (January 22. 2005): p3-s4; B. Frow. "The Debate Over Doing Good." B11sinessWeek. 3947 (August 15. 2005): 76-78. 100 Environics International Ltd .. The P1ince of Wales Business Leaders and the Conlerence Board. Mille1111i11111 Poll 011 Co1710rate Social Responsibility. Executive B1iefing. Toronto, Canada: (1999). IOI S. A. Muirhead. C. J. Bennett, R. E. Berenbeim. A. Kao. and D. J. Vidal, Co171orate Citi::.enship in the New Centlll)': Accountability, Transparenc.\; and Global Stakeholder Engagement (New York: The Conference Board, Inc .. 2002). ( 102 The Center for Corporate Citizenship at Boston College and the U.S. Chamber of Commerce Center for Corporate Citizenship. The State of Co17wmte Citizenship in the U.S. : A Viewfivm Inside 2003-2004 ·· (Chestnut Hill . MA: The Center for Corporate Citizenship at Boston College and the U.S. Chamber of Commerce Center for Corporate Citizenship, 2004). im For interesting case studies describing how well-known firms have strnggled to develop their own brand of corporate social 153 responsibility and for an extensive list of resources, see J. Hollender and S. Fenichell 's What Mauers Most: Holl' a S111all Giv11p of Pioneers ls Teaching Social Responsibility to Big Business, and Why Big Business Is Listening (New York: Basic Books. 2004). 104 Hollender and Fenichell. What Mauers Most. I05 P. Asmus. "I 00 Best Corporate Citizens for 2005." Business Ethics Online. (Spring. 2005), http://www.businessethics.com/whats_new/ IOObest.html. Accessed I0/ 15/2005. 106 These questions were adapted from T. Jackson. "Cultural Values and Management Ethics: A JO-Nation Study." Hu111an Relations 54( I0) (October. 200 I): 1287-1288. 1 01 S. Bok, "Whistleblowing and Professional Responsibilities." in D. Callahan and S. Bok (eds.). Ethics Teaching in Higher Education (New York: Plenum Press. 1980): 277-295. I08 Josephson. Making Ethical Decisions: 40. 109 J. McNett and M. S1<1ndergaard, "Making Ethical Decisions." in H. Lane. M. Maznevski, M. Mendenhall , and J. McNett (eds.), The Handbook of Global Manage111e111 (Malden, MA: Blackwell, 2003): 152-169. 11 0 Many of these expert practices come from the "Corporate Integrity Checkup." which reflects best practices in ethics management. http://www.crossroadsprograms.com/ coporate.html . Accessed I 0/ 15/05. 111 Some of this information about CSR programs was adapted from Co171orc11e Social Responsibility: Making Good Business Sense by the World Business Council for Sustainable Development. January 2000, www.wbcsd.org. 112 P. H. Mirvis, "Transformation at Shell: Commerce and Citizenship." Business and Society Reviell' 105( I) (2000): 63-84. 113 M. Kaptein and J Wempe. The Balcmced Company: A Theorv of Co171orate !111egrity (Oxford: Oxford University Press, 2002). ( PERSONAL GROWTH AND WORK STRESS ()F;U tiCY!V&'.5 By the end of this chapter, you should be able to: A. Describe the characteristics of adult development. B. Explain Levinson's concept of life structures. C. Recognize career anchors and their significance. D. Describe the functions that mentors perform. E. Identify trends in career management and planning. F. Explain the transactional model of career stress. G. Assess your current life-career situation and develop a plan for the future. ' CO SzJ E Workloads never set out to hurt anybody. But doesn't it seem like over the past couple of years, someone named "Mr. Overload" muscled his way into all of our workplaces, sat down in our chairs, and took over our lives? Both the increased speed and complexity of work these days is leaving everyone from the executive suite to the factory floor throbbing from a massive migraine just trying to get all their work done. Why this has happened, and why no one seems to be talking about it intelligently, let alone doing something constructive about it-is even more puzzling. WHAT'S CAUSING OVERWORK AND WHY Is IT A PROBLEM? You guessed it. Most employees don'tjust sign up to get overworked because they enjoy it. Economic, technological , and business factors such as downsizing, the skills shortage, and low unemployment have forced those American workers who were left sitting in the hot seat to give 150 percent (or more) just Lo stay on top of their workloads. Now, U.S. business leaders have come to expect and rely on this accelerated pace. What were once considered crises-mode workloads have now become business as usual. After all, the more people get done, the more our 154 CHAPTER 7 PERSONAL GROWTH AND WORK STRESS ( ( companies profit , right? True, the United States certainly is enjoying economic nirvana, but at what price? Collective burnout? or course, burnout isn ' t new, but what is new is the way in which job overload---causing burnout-has elbowed its way into most of our work lives, sometimes without our even realizing it 's a problem . Take Jennifer Johnson , for instance. Johnson , who' s now the principal strategist for Johnson & Co . in Santa Cruz , California, is a classic example of a fast tracker who was headed for burnout but jumped off the train before she crashed . "I was a corporate warrior for about 15 years," says Johnson. "When I first left college , I immediately began working 80-hour weeks in my first job at Novell in Provo, Utah." As a 22-year-old editor, she turned the company's inhouse newsletter into an international consumer magazine that Novell sold three years later to The McGraw-Hill Companies for $10 million. She recalls nights when she 'd stay at the office until 2 A.M ., and was back in the office by 8 o'clock the next morning. "I realized it was the duespaying time of my life, and I actually thrived on the fast pace," Johnson admits. After she took a job in advertising at another firm, got married, and had kids, the pace became dizzying. She vividly remembers her breaking point 19 months ago when life and work clashed in the extreme. "My husband Scott, who headed the marketing function for one of 3Com's international-business units, was returning from a trip to Japan. The plan was for me to hand off the kids to him at the airport, and then I was going to catch a plane for the East Coast." It turns out her husband 's plane was 20 minutes late . The moment he arrived, she threw the kids to him and sprinted to her own plane, luggage in tow. In flight and exhausted, Johnson found herself writing a resignation letter. "I was laughing out loud as I wrote it because it was so obviously what I needed to do," she says. Johnson then started her own company-a virtual marketing organization that teams 17 contractors, mostly women , from across the country. Many of them were as desperate to bal a nce their lives as she was. "I saw a lot of women who were forced to make the choice of either working or taking care of their families because their companies wouldn ' t be flexible ," says Johnson . 'Tm now seeing a world in which employees, after being downsized and rightsized, are turning the tables and they're my-sizing their jobs.'' Workers who feel trapped in jobs in which they're powerless to do something about it tend to burn out faster. Ironically, those employees who are in fast-track careers are often the first ones to crash and burn, according to Beverly Potter, a workplace consultant and author of 0Fercoming Job Burnout: How to Renew Enthusiasm for Work (Ronin Publishing, 1998). Although Johnson admits that when she was a 22-year-old she actually liked being what she calls a "fast burner," it wore her out after a while. Right before she left Novell the second time (she returned there after the ad agency job), she asked to be able to telecommute two days a week. "It really surprised me that they were unwilling to let me do that, even though they're a technology company," says Johnson. She found during her second maternity leave that she often got a lot more done working at home than when she was in the office-and having to contend with meetings, interruptions and mountains of extraneous information . " If HR and business line managers could start thinking outside the box about what really needs to get done, I think it would help relieve a lot of people 's workloads." If we can call it the bright side, all this overtime is helping push the recent surge in American workers ' productivity. After growing at a brisk 2.9 percent annual rate in the 1960s and early 1970s, productivity slowed to a miniscule I percent from 1974 through 1995. Since then, it has been growing at around a 2 percent rate. That growth has led some economists to speculate that the economy has embarked on a new era of productivity growth, driven by computers and other high-tech innovations. With the influx of technology, such as cellular phones and the Internet, workers are wired to the office 24 hours a day and are expected to achieve mind-boggling workloads . The Associated Press reported last May that the average business manager receives 190 messages per day. Hundreds are quitting Corporate America daily because they ' re tired of the empty promises about companies helping them "balance their lives." The HR questions are : Have jobs grown too big for most workers? And what are companies really doing about it? 155 156 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK REENGINEERING JOBS TO FIT EMPLOYEES One of the running jokes at Redmond, Washington-based Microsoft Corp. is you can work any 18 hours a day you want. Although it ' s well known that Microsoft employees reap hefty rewards for their intense productivity in terms of compensation, benefits, stock options, and the like, making overwork the corporate requirement can have its drawbacks. Many companies recognize the problem , and many think they've already solved it. But they should take another look at their solutions. According to Terry Alan Beehr, professor of psychology at Central Michigan University in Mount Pleasant, Michigan, and an authority on organizational psychology, job stress is too often treated with medication or counseling rather than by making changes in the workplace and in workloads. Companies need to take stock of where they're really at with their workloads and how those workloads piled up to where they are today. "This is a time when work needs to be trimmed just as firmly as the workforce has been trimmed," says William Bridges, consultant and author. He explains that companies have cut people out of the workforce (downsized) with razor-sharp accuracy, but haven't trimmed the workloads of the people who've remained with the same vigor. As a consultant, he has noticed there's a great deal of unnecessary work being done in U.S. companies. "Justifying work is very important," Bridges adds. It's a matter of figuring out what work is necessary and what isn't. It's essentially reengineering workloads. "I know that reengineering has a bad name," says Bridges, "but we need to take a close look at what we're making workers do." However, unlike reengineering, he says this is something workers themselves have to be very involved in. For example, the HR leaders at Merck & Co., the giant pharmaceutical company based in Whitehouse Station, New Jersey, realized after hearing workers' complaints about overwork, inadequate training, schedule changes, poor new-hire screening, and lack of communication, among other things, that they needed to respond-quickly. In a major work redesign effort, Merck's management team assigned employees to teams that were devoted to solving these problems. Work was analyzed, dissected, and reorganized so that workers felt like they had more control over their workloads and schedules. "We focused on the things that are really important to our customers," says Michelle Peterson, senior director of work/life flexibility, who oversaw the effort. In one area of the company, payroll employees weren't happy with the large amount of overtime they had to put in. During a series of meetings, team leaders realized that most of their work was more critical earlier in the week than toward the end of the week. Solutions included reducing peoples' commute time by allowing them to work at home more often and giving them compressed work weeks. They provided technology so payroll workers could input data at home. Solutions to the most ditlicult problems were implemented within three months, and turnover slowed from 45 percent to 32 percent, and is still dropping. In addition, overtime costs and absenteeism plummeted. And for the employees, overtime and commute time were slashed. HR managers should also be willing to suggest that managers outsource tasks that are unnecessary, or could be done more effectively by a third party. "Who should do the work?" is the question every manager should ask about every bit of work. "And you may find some of the work could go outside, and you readjust what's left so it isn't so overwhelming," says Bridges. Dell Computer Corp.'s direct-to-customer business model, for example, takes outsourcing to a new level. The firm doesn ' t just outsource a few tasks; it actually turns over three-quarters of its work to non-employees, particularly field service and manufacturing. Focus ON WHAT'S MOST IMPORTANT According to an article in the Salt Lake Observer in October 1998 called "The Zen of Managing Transition," one expert reminds us that you get what you focus on. These days, in a 24-hour-a-day, global marketplace that moves faster than the speed of e-mail, it's important for HR managers to help their firms' management groups figure out what's most important to get done. CHAPTER 7 PERSONAL GROWTH AND WORK STRESS ( For example, this strategy has been a big focus at San Franci sco-based AirTouch Communications Inc . this year. Tracey Borst, who heads the firm's HR team, says although she hears rumblings about overwork from time Lo time , the "noise level " about it hasn ' t gollen in the way lately. To nip the problem in the bud , the senior management team has been trying to get beller al prioritizing work throughout the company by letting employees know which company goals are most important. "Even if we had all the money in the world, we still wouldn 'L have enough people and would have Lo let some things fall by the wayside," says Borst. 'There 's a limited number of resources Lo maintain customers and Lo create new products, so you have Lo focus on what's most important and create a balance." Still, even with all the tweaking of processes and technological advances, why is it that companies are scrupulous about maintaining their inert equipment, but don't pay as much allention Lo giving their human assets workload tune-ups? Machines regularly get oiled, cleaned, and tuned. But when it comes to workers, we just expect they ' ll handle ever-increasing amounts of work without regard to regular check-ups. When you come right down Lo it, perhaps we can't prevent "Mr. Overload" from coming to our offices altogether. But we can learn to work with him more consciously and intelligently. There are some new tools and ideas HR professionals can use to alleviate the work overload problem. Recognizing the problem exists and that it can be destructive is a good first step. Source: Excerpted from Jennifer Koch. "Overload: What 's Causing It and How to Solve It." Work Force 78 (January 1999): 30-37. ( A. Read "Overload: What's Causing IL and How Lo Solve It." B. How would you rate your current workload and stress level? C. Whal strategies have you developed for coping with stress? Are they working? D. Complete the Life Goal Inventory. E. After reading the chapter, what cues and pallerns will you look for with respect to personal growth, career development, and work stress? LIFE GOAL INVENTORY I. The purpose of the Life Goal Inventory is Lo give you an outline for looking at your life goals in a more systematic way. Your concern here should be Lo describe as fully as possible your aims and goals in all areas of your life . Consider goals that are important Lo you, whether they are relatively easy or difficult Lo allain. Be honest with yourself. Having fun and taking life easy are just as legitimate life goals as being president. You will have a chance to rate the relative importance of your goals later. Now you should try Lo just discover all the things that are important to you. To help make your inventory complete, we have listed general goal areas on the following pages. They are: • Career satisfaction • Status and respect • Personal relationships • Leisure satisfactions • Learning and education • Spiritual growth and religion • Material rewards and possessions l These categories are only a general guide; feel free to change or redefine them in the way that best suits your own life. The unlabeled "Open" Section is for those goals that do not seem to fit into the other categories. 157 158 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK First fill in your own goals in the various sections of this inventory, making any redefinitions of the goal areas you feel necessary. Ignore for the time being the three columns on the righthand side of each page. Directions for filling out these columns are on page 162. Career Satisfaction c General Description: Your goals for your future job or career, including specific positions you want to hold . Q) ~..9 c: 0-0 Q) ...... Individual Redefinition: o~ 0.... ' ·-E :r: - Eo c: .....J ·5 ' :t: -0 <( Q) ....... ~ 0 ·-' Q) :r: <J>- 0 -£~- ·- 3: 0 0 -u(.'.) ·- ;:;:::: c: L.. Q) z0 L.. 0 <JI _c::: Q) o-~ uo- UJ Specific Goals 1. 2. 3. Status and Respect General Description: To what groups do you want to belong? What are your goals in these groups? To what extent do you want to be respected by others? From whom do you want respect? c Q) Q) u c: 0.....J 0-0 Q) ...... o~ 0.... Individual Redefinition: ' -E·:r: - Eo c: .....J ·5 ' :t: -0 <( <J>- 0 UJ Specific Goals 1. 2. 3. Q) ....... ~ 0 ·-' Q) :r: -z -=~ ·- 0 0 3: 0 -u(.'.) .... ~ ....... L.. <I> c: ...c: 0 <JI Q) o-~ uo- CHAPTER 7 PERSONAL GROWTH AND WORK STRESS Personal Relationships ( General Description: Goals in your relationships with your significant other, colleagues, parents, friends, and people in general. Individual Redefinition: ca.> ~ _s c 0-0 .._ a.> Eo c --1 ·5 ' :t: \J <( a.> o~ ....... ~ E ·-I a.>I ,,,_ CL , 0 ·-' 0 ....c .,,_ --=o o ~ 0 ti 0 z ... ·- ...... 0 =a.>.,, C_c Q.l 0 .._ >=uo- Ll.J Specific Goals 1. 2. 3. ( Leisure Satisfactions .._ General Description: Goals for your leisure time and pleasure activities-hobbies, sports, vacations, and interests you want to develop . Individual Redefinition: c a.>o u --1 c 0 \J .._ a.> o~ CL , E ·-I - a.> Eo c --1 ·5 .._ \J' .._ a.> <(~ ....... 0 ·-' a.>I ,,,_ 0 Ll.J Specific Goals 1. 2. 3. l ....c .,,_ --=o o ~oz ti 0 ... ·- ...... 0 =a.>.,, C_c <I.> 0 .._ >=uo- 159 160 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Learning and Education General Description: What would you like to learn more about? What skills do you want to develop? What formal education goals do you have? Individual Redefinition: - ( c ec _g 0-0 - Q) o~ a.. ' E·-I Q) Eo c -I ·5 ' :t: -0 <{ '-+- Q) ~ 0 ·-' «> I en0 -=~·- 0 0 ~ t; ..:..:: '-+- oz 0 .... .... 0 Q) en c ....c Q) o-ruo- UJ Specific Goals 1. 2. 3. Spiritual Growth and Religion General Description: Goals for peace of mind, your search for meaning, your relation to the larger universe, religious service, and devotional life. Individual Redefinition: c ec _g 0-0 Q) Eo c -I ·5 ' :t: -0 Q) <{ a.. ' E·I '-+- - o~ 1. 2. 3. ~ 0 ·-' «> I en0 UJ Specific Goals Q) _.s::::. en_ - =o o ~oz t; 0 .... ..:..:: .... 0 '-+- Q) c ....c en Q) o-r- uo- CHAPTER 7 PERSONAL GROWTH AND WORK STRESS Material Rewards and Possessions / ( cCl> General Description: What income level are you aiming for-upper class, middle class, voluntary simplicity?* What possessions do you want? a-a ..... Cl> Individual Redefinition: 0... B _g c a~ ' -E·:r: - Eo c --I ·5 ..... -a' ..... Cl> <(~ ...... 0 ·-' :r: .,,_ a Cl> -£~- ·- a o 3.: oz u 0 . ._ ·- ..._ 0 q:: Cl> c _c "' Cl> o ..... >°'" uo- UJ Specific Goals 1. 2. 3. ( * Voluntary simplicity, both an inner and outer condition, is gaining popularity in the United States. It means deliberately organizing one's life around a purpose and avoiding exterior distraction and clutter, such as possessions, that are irrelevant ta one's chief purpose in life. Some people who practice voluntary simplicity set a goal of earning only enough income to support a pared-down lifestyle, which allows them to work less than 40 hours a week .. They then take the freed-up time and devote it to whatever purpose they have chosen for themselves. Open-Other Goals cCl> Description: B _g c a-aCl> ..... a~ 0... ' -E·:r: - Eo c --I ·5 ' :t: -a <( ...... ~ 0 ·-' Cl> :r: .,,_ a UJ Specific Goals 1. 2. 3. l Cl> ."'!::a" 'o- _c 3.: oz u0 . ._ ·- ..._ 0 q:: c Cl> _c "' Cl> o ..... >°'" uo- 161 162 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Directions for Rating Goals 2. Goof importance: Now that you hove completed the inventory, go back and rate the importance of each goal according to the following scheme: Hi (High) Compared with my other goals, this goal is very important. Med (Medium} This goal is moderately important. Lo (Low) A lot of other goals are more important than this one . 3. Ease of goof attainment: According to the following scheme, rate each goal on the probability that you will reach and/or maintain the satisfaction derived from it. Hi (High) Compared with my other goals, I could easily reach and maintain this goal. Med (Medium} I could reach and maintain this goal with moderate difficulty. Lo (Low) It would be very difficult to reach this goal. Goal priorities: Select the goals from the inventory that seem most important to you at th is time. Do not choose more than eight. Rank order them in terms of their importance. (l = High, 8 = Low) 1. 2. 3. 4. 5. 6. 7. 8. 4. Anticipating conflicts: One of the major deterrents to goal accomplishment is the existence of conflict among goals. People who ignore the potential conflicts between job and family, for instance, may end up abandoning goals because of the "either/or" nature of many decisions. Or years later they may come to regret sacrificing family needs for the sake of career demands or vice versa. In the order you prioritized in the preceding step, list your goals on both axes of the CrossImpact Matrix on the following page. Write your first goal where it says "Goal I" on both axes, your second goal where it says "Goal 2," and so forth. Next, estimate the potential impact of the vertical goal statements you've written along the side of the chart on the horizontal goal statements you've written along the top. Please use the following symbols: (+) for a helpful impact ("working on goal I will help me with goal 3") (-) for a hindering impact ("working on goal 2 will make it more difficult to accomplish goal 5") (0) for no impact of any kind ( CHAPTER 7 PERSONAL GROWTH AND WORK STRESS THE CROSS• IM PACT MATRIX ( I \ -' <( 0 1x (_I) GOAL 1 GOAL2 N <"? '<l" l{) -0 -' <( -' <( -' -' <( -' <( "-'<( 0 0 0 0 0 (_I) (!) <( (_I) 0 (!) (_I) co -' <( 0 (!) (_I) IX GOAL3 GOAL4 GOAL5 GOAL6 ( GOAL? GOALS x I x x IX x List conflicts in order of importance: 1. 2. 3. 4. 5. Note: The Personal Application Assignment for this chapter is a continuation of this exercise. Taking responsihility for personal growth and career development is an important shared responsibility among employees, managers, and organizations. Theories of adult development provide insight into our personal experience and help us to understand the developmental phases and challenges facing our colleagues at work. Theorists generally agree on the following characteristics of adult development. 1 x 163 164 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK 1. Personality development occurs throughout the life cycle as a succession of fairly predictable phases. 2. Each stage is characterized by a cycle of intensity and quiescence. In the latter, people achieve a state of quasi-stationary equilibrium that is eventually disrupted, initiating intense coping efforts and activity that often result in life changes. This is followed by another period of equilibrium and quiescence. 3. The disequilibrium of each stage is caused by a focal conflict or dilemma, which is created by internal forces, environmental demands, or both. 4. People cope with these focal conflict or dilemmas ei ther positively through growth or negatively through defensiveness and regression. 5. Personal growth results from mastering the developmental tasks required to resolve the focal dilemma, satisfying both personal needs and social responsibilities. Exhibit 7-1 portrays the stages three different researchers have identified. Gould 2 concentrates on the inner subjective experiences of individuals forming each period; his view asserts that we grow .up with a mythical idea of adulthood and that, as we age, we need to let go of the myth and accept ourselves and the reality of our lives. Age 16 18 20 22 24 26 28 30 32 Roger Gould Escape from parental dominance Gail Sheehy Provisional adulthood Aspiring builders of future What am I doing and why? Getting into the adult world First adulthood A sense of urgency to make it Transition period 36 38 Settling down and becoming one's own person 40 46 48 50 52 54 Leaving the family Substitute friends for family 34 42 44 Daniel Levinson On terms with self as a stable personality Mellowing of friendships-valuing of emotions Second adulthood Age of mastery Midlife transition 56 58 Restabilization and entering into middle age 60 62 64 Another transition 66 Age of Integrity 68 70 72 74 76 78 80 82 84 86 EXHIBIT 7-1 Models of Adult Development Source: Dr. Eric Neilsen, Case Western Reserve University, Cleveland, Ohio. ( CHAPTER 7 PERSONAL GROWTH AND WORK STRESS ( ( Sheehy 's stages reflect the current trends of taking longer to grow up and become fullfledged adults and longer to grow old. In the provisional adulthood of the "tryout twenties," the central task is to choose a life course . In first adulthood the rocus on proving oneself and surviving gives way to mastery and a search for meaning in the first part of second adulthood . The final years of life are devoted to integrating the different parts of one 's life. 3 Levinson developed his theory of adult development from biographical interviews with 40 men; he later expanded his research to include women .4 One of the gender differences Levinson found was that young men more easily formed a dream about what they would become than did young women. Another difference was that men were more likely to have a family and a career simultaneously if they so desired. In contrast, the women in the study made an either/or choice about family and career and had fewer cultural role models to guide them . Levinson 's data was gathered two decades ago. Changing gender expectations about women 's role and the increased number of women in the workplace may mean that young women today no longer feel the choice between family and career is quite so stark. Other factors may influence whether or not women decide to have children. There are more cultural models of business women juggling career and family up through middle management, although that is less true for women of color and women in senior level positions.5 Other differences have been found between male and female development. 6 Male development focuses on independence, self-sul'ficiency, and an emphasis on work and career. In contrast, female development emphasizes interdependence and a struggle to combine relationships and accomplishments. Generally speaking, development for men signifies increased autonomy and separation from others so that they can concentrate fully on their work. Whereas men gain their primary identity from their work, women are more likely to define themselves in relation toothers, so they focus more on attachments than separation. Levinson and his colleagues 7 concluded that both men and women face a recurring developmental task at different stages of their lives. They must establish a "life structure," which refers to the pattern or design of a person 's life, which is appropriate for each era of life. Life structures last approximately six to eight years and constitute periods of stability. However, life structures become obsolete because no single structure could contain all aspects of the self or respond to the demands of d ifferent eras . For example, a man or woman who has been staying at home taking care of small children may no longer find this life fulfilling when the children become older and more independent. At this point, he or she may decide to return to work or develop an artistic side that was not possible given the previous child care demands . When a life structure no longer fits, people undergo a transition period that lasts four to five years . During this period, they reexamine their lives and eventually decide upon a new direction or life structure. The most widely recognized transition period is the midlife crisis when people age 38 to 45 reevaluate what they hm'e accomplished in comparison with their ambitions and decide where they would like to place greater priority in the coming years. Transition periods are characterized by self- l centeredness, introspection, and ambivalence about intimate relationships; during the periods of stability, people are more other-centered and dedicated to investing time and energy to key social relationships. 8 The developmental challenge and dilemma facing people in their twenties (22 to 28) is to remain open enough to explore the world and stay committed enough to make something of themselves. Some people keep all their options open and make few commitments, whereas others marry young or invest in a serious career effort. Whatever options people build into their early adult life structure, they are likely to question these early decisions when they reach the age of 30 and have enough years of adult experience to reassess their dreams. Similar transitions occur around ages 40 and 50. During these transitions people make changes in their lives and try to build a life structure that is more attuned to the person they have become; they seek to create a Ii fe that allows them to place more priority on areas that are central to them, which they may have had to shortchange in their earlier life structure. There is some evidence that people who do not resolve these issues during one transition will eventually be forced to confront them in a later transition. 165 166 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Whether or not these life transitions turn into full-blown crises depends on the individuals and their circumstances. For some people it's more a matter of reform than revolution . A crisis occurs when individuals find their current life structure intolerable but are not yet able to create a new one. How can managers help people through this process? 1. By expecting the phenomenon and seeing it as a normal stage of healthy adult development rather than a sign of instability. 2. By practicing active listening 9 or perhaps referring the individual to a professional counselor. 3. By being as flexible as possible regarding the changes the employee feels he or she needs to make. CAREER ISSUES In addition to a basic understanding of adult development, managers should also understand the key findings of career development research, which are presented in the following sections. Douglas Hall identifies six different stages, beginning with exploration (a period in which the individual is open to a wide range of experiences); moving through establishment, mastery, and maintenance (periods directed at developing skills and achieving proficiency); and ending with disengagement (moving out of the field and reducing psychological involvement or transitioning into a different field) phases. 10 The tasks that must be accomplished in each stage vary tremendously. Yet, underlying all of them is the idea of what Hall terms the protean career. The term "protean" is taken from the Greek God Proteus, who changed shape and form at will. Hall uses this term to underscore the new reality of the protean career that individuals must assume ji1ll responsibility for their continued career development, often must reinvent themselves in the course of their caree1; and must be capable of learning how to learn throughout their lives. In the beginning of one's career, the major psychological issue is figuring out a career direction that meets one's needs and interests. Schein developed one of the most helpful models for diagnosing career interests, which he termed career anchors. As Schein defines them, "Certain motivational, attitudinal, and value syndromes formed early in the lives of individuals apparently function to guide and constrain their entire careers." 11 When people stray too far from these key interests, they serve as an anchor that pulls people back to their original interest. Different types of career anchors are: (I) technical/functional competence, (2) managerial competence, (3) security and stability, (4) creativity/entrepreneurship, (5) autonomy and independence, (6) service, (7) pure challenge, and (8) lifestyle. These anchors, along with the characteristics of people with these anchors and their typical career paths, appear in Exhibit 7-2. Career patterns can vary tremendously. Recent research has identified four different categories of career paths. 12 They differ in the direction and frequency of movement within and across jobs and fields over time. • Linear careers In linear careers, people progress through a series of jobs that increase in authority and responsibility. Individuals may stay with one company or may move through a series of companies as they advance up the organizational hierarchy. • Steady-state or expert careers This type of career reflects a commitment to a field or specialty. Individuals focus on developing and refining their knowledge, technical proficiency, and skills within that field. They often view themselves as experts. ( CHAPTER 7 PERSONAL GROWTH AND WORK STRESS ( 167 Career Anchor Characteristics Typical Careers Paths 1. Technical/functional competence • Excited by work itself • Willing to forgo promotions • Dislikes management and corporate politics • Research-oriented position • Functional department management job • Specialized consulting and project management 2. Managerial competence • Likes to analyze and solve knotty business problems • Likes to influence and harness people to work together • Enjoys the exercise of power • Vice-presidencies • Plant management and sales management • Large, prestigious firms 3. Security and stability • Motivated by job security and long-term career with one firm • Dislikes travel and relocation • Tends to be conformist and compliant to the organization • Government jobs • Small family-owned business • Large government-regulated industries 4. Creativity/ entrepreneurship • Enjoys launching own business • Restless; moves from project to project • Prefers small and up-and-coming firms to well-established ones • Entrepreneurial ventures • General management consulting 5. Autonomy and independence • Desires freedom from organizational constraints • Wants to be on own and set own pace • Avoids large businesses and governmental agencies • Academia • Writing and publishing • Small business proprietorships 6. Service • Enjoys work that manifests own values • Having an impact, not money, is central • Expect management to share own values • • • • 7. Pure Challenge • Wants to prove self • Seeks ever greater challenges • Enjoys competition and winning • Strategy/management consultants • Naval aviators 8. Lifestyle • Integrates needs of individual, family and career • Desires flexibility (part-time work, sabbaticals, maternity/paternity leaves, etc.) • Common with dual career families • Consultants • Socially progressive companies Consultants Financial analysts Non-profit organizations Socially responsible firms EXHIBIT 7-2 Career Anchors Source: Adapled from !he work of Edgar H. Schein, Career Dy11w11ics (Reading, MA: Addison-Wesley, 1978); " Individuals and Careers." in Jay W. Lorsch (ed.). Hu11dbook of 01;~a11iw1io11al Behavior (Upper Saddle River. NJ: Pren lice Hall, 1987): 155-171; and adapled by !he au1hors and R. Dunham and J. Pierce. Mwwge111e111 (Glenview, IL: Scott. Foresman, t989): 857. • Spiral careers In spiral careers, individuals move across disciplines, moving from one field to a related one. The new field builds on skills developed in earlier fields but also fosters the development of new knowledge and skills. • Transitory careers Transitory careers involve frequent job changes. Disciplines or fields may be unrelated, with each job different from the one before it. Exhibit 7-3 presents key features of the four career patterns. Managers should pay attention to the type of careers their employees are pursuing and adapt learning and development opportunities to fit those patterns. For example, employees who prefer spiral careers want to expand their knowledge of various fields. Thus, rotating these employees across jobs would be a useful strategy. In 168 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Career Patterns Linear Stea dy-s ta te Spiral Transitory Direction of movement Upward Little movement Lateral Lateral Duration of stay Variable Life 7-10 years 3-5 years Central motives Power and achievement Expertise and security Personal growth and creativity Variety and independence EXHIBIT 7-3 Central Features of Four Career Patterns Source: Adapted from J. Brousseau, M. Driver, K. Eneroth, and R. Larson. "Career Pandemonium: Realigning Organizations and Individuals," Academy ofMa11u~e111e111 Executive 10 ( 1996): 52-66. contrast, individuals who want steady-state careers respond to opportunities that allow them to develop deeper knowledge and expertise in their chosen field. One of the most challenging aspects of modern life is balancing the demands of dual careers and raising a family. Just over half of U.S . families are dual-career couples, and in 2003 a quarter of the women in these families earned more than their husbands. 13 Although two salaries result in higher income, stress can be a common feature of many dual-career marriages when couples run up against relocation issues, child-rearing responsibilities, and demanding jobs that leave little time to take care of the home front. Working wives who still carry the major burden of household tasks experience a great deal of stress. Couples generally adopt one of the following strategies to manage dual careers. 14 1. Limiting the impact of family on work Parents can delay having children or subcontract the child-rearing to day care centers or domestic help. 2. Taking turns Spouses trade off career opportunities and child care at different times. 3. Participating in joint ventures Both spouses have the same career or different careers in the same organization. 4. Choosing independent careers Both partners pursue their careers as fully as possible and learn to cope with long separations or commuter marriages. 5. Subordinating one career to the other One partner may leave the workforce or accept a job that is less demanding so that the other partner can optimize his or her career opportunities. All of these strategies have advantages and disadvantages. The disadvantages have to do with who pays the cost-the children, the marriage, or the partner who is sacrificing so that the other can maximize career opportunities, and so forth. If couples can agree on a strategy and align the rest of their lives accordingly, some of the stresses found in dual-career marriages are more manageable. A mentor is a senior person within the organization who assumes responsibility for a junior person. Mentors help socialize newcomers or junior members. Mentoring relationships occur either naturally or as part of a company program to develop junior employees. AT&T Bell Laboratories assigns mentors to women and minority hires and "technical mentors" to help new employees master their jobs. Research has shown that having a mentor was one of the characteristics that differentiated female executives who made it to the top from those who did not. 15 A study of both men and women found that those who were extensively mentored received more promotions, were more highly paid, and reported higher job satisfaction than those who received little mentoring. 16 ( CHAPTER 7 PERSONAL GROWTH AND WORK STRESS ( What is it that mentors do for their proteges? Kram identified two functions : career and psychosocial functions. 17 Career functions consist of: 1. Sponsorship Actively nominating a junior manager for promotions and desirable positions. 2. Exposure and Visibility Matching the junior manager with senior executives who can provide opportunities and giving the junior person chances to demonstrate his or her ability (e.g., letting the junior person make imponant presentations that are attended by key executives). 3. Coaching Giving practical advice on how to accomplish objectives and achieve recognition. 4. Protection Shielding a junior manager from potentially harmful situations or senior managers. 5. Challenging Assignments Helping a junior ma nager develop necessary competencies through challenging job assignments and feedback . The psychosocial functions are : 1. Role Modeling Giving a junior manager a pattern of values and behavior to imitate. (This is the most common of the psychosocial functions.) 2. Acceptance and Confirmation Providing mutual support and encouragement. 3. Counseling Helping a junior manager work out personal problems, thus enhancing his or her self-image. 4. Friendship Engaging in mutually satisfying social interaction. Some firms have also implemented reverse mentoring in which young women and minorities mentor senior managers to provide them with a better understanding of diversity issues. ( l There have been numerous changes in the area of career planning . In career management the necessity of tying strategic planning to human resource management has gained greater acceptance , along with the expectation that managers should be trained to provide career counseling to employees. 18 Leaner management hierarchies and the populous baby boom cohort have made assessment of management potential and succession management more appealing. Flatter organizations have also focused altention on the need for nontraditional career paths that provide alternatives to promotion , such as lateral or rotational moves, dualcareer ladders, downward moves , and early retirement. There is more emphasis on self-directed careers as a response to downsizing. The burden lies on employees to learn skills that are in demand to maintain their employability and reputational capital. Midcareer choice points seem to be occurring earlier due to the bulge of baby boomers in managerial jobs and the need for balance in dual-career families. Today's employees are more likely to question and reject transfers and even promotions. Opting for self-initiated career plateauing (a cap to upward 1110/Jility) due to family considerations or Jack of desire to assume the burdens of greater management responsibility is becoming more common, although it is still seen as disloyal or un-American in some companies. Partly because of the glass ceiling that limits both women and minorities from reaching senior positions, more and more women are forsaking the corporate career path to become entrepreneurs . Freedom and nexibility are other reasons women give for starting a business. Womenowned U.S . businesses increased 42 percent from 6.4 million in 1992 to 9.1 million in 1999. 19 Between 1997 and 2004, the estimated growth rate in the number of women-owned firms was nearly twice that of all firms .20 There is currently a growing emphasis in the United States on spirituality and finding meaning at work. 21 According to John Renesch, editor and publisher of the New Leaders Business Press, "There is a core need within individuals to bring their entire selves to the workplace , not 169 170 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK to turn off their heart and soul when they go to work ." 22 "New Age" leaders like Tom Chappell of Tom's of Maine have designed companies "with soul" that respond to this need. Because people can expect to have numerous jobs during their work life, numerous employers, and more than one career, they will face far more career decisions than their parents or grandparents. To make good decisions, self-awareness and an understanding of adult development in general are both helpful. The turbulent nature of today's careers also affects how we see ourselves. In earlier times, personal identity was maintained in a relatively stable environment of known expectations. Once on a life path, personal choice was primarily a process of affirming expectations. People obtained a college degree or M.B.A., gained experience, and worked their way up the organization. They were " managers" who also derived part of their identity from their employer ('Tm an IBMer"). In today's "future shock" world, environmental complexity and change have denied us the easy route to personal identity. Now, more than ever, identity is forged through personal choices. The challenge is to make the "right" choices and manage our careers wisely. Goal setting is a critical aspect of personal growth and career development. The ability to conceptualize life goals and to imagine future alternatives for living can free us from the inertia of the past by providing future targets that serve as guides for planning and decision making. Research results from several areas-management, psychotherapy, and attitude change-all confirm the importance of goal setting for personal growth and achievement of one 's goals.23 The increased likelihood of change resulting from the setting and articulating of goals is illustrated, for example, by Kay, French, and Myer, who found that improvement needs among managers were accomplished only about one-fourth of the time when they were not translated into goals in performance appraisal interviews. When these needs we re transformed into clearly stated goals, the likelihood of accomplishment increased to about twothirds. 24 It is not enough just to think about how you would like to change. It is necessary to translate those visions into concrete goals. In recent years, reengineering, downsizing , and increased competition have been responsible for increased career-related stress. Obsolescence, midcareer transitions, job loss or threat of job loss, diminished upward mobility, forced early retirem ent, dual-career pressures, 25 increased workloads for the survivors in downsized companies, and lack of balance between work and nonwork are all sources of stress. The World Health Organization estimates the global price tag for job stress at more than $200 billion in absenteeism, tardiness, worker's compensation, and health care. 26 A survey of the European Union member states found that the cost of stress at work was estimated to be 3-4 percent of gross domestic product (GDP).27 By contrast, recent research suggests that positive "affect" or feelings can be very beneficial. Positive affect has been associated with cognitive flexibility, innovation, problem solving, creativity, and open-mindedness. 28 Stress is defined as the nonspecific response of an organism to demands that tax or exceed its resources. There are three stages in the stress response: alarm, resistance, and finally, exhaustion.29 Stress is positive when it motivates us to work harder and negative when the stress level exceeds our coping abilities. In the latter instance, stress interferes with our ability to perform at work and can result in illness. The transactional model of career stress is portrayed in Exhibit 7-4.30 We begin with a stressor situation, which can be either external, such as a new job or job loss, or internal, like a midcareer transition resulting from a shift in personal values. Stressors take the form ofdemands, constraints, or opportunities. A stressor does not result in a stress reaction unless it is first perceived as a stressor. What is stressful to one person may be merely challenging to another because people have different cognitions about stressor situations. Cognitions are "the individual's perceptions that the situation poses uncertainty about obtaining outcomes, and the perceived importance of those outcomes." 31 Thus, stress will be greater if people perceive that they ( CHAPTER 7 PERSONAL GROWTH AND WORK STRESS ( I Stressor Situation (e.g., new job, job loss, mid-career adjustment) Social Support Direct Action • Coping Duration Individual Characteristics t Cognitive Reappraisal l~-----•- Cognitions ----------1~ • Uncertainty • Important Outcomes Stress Reactions • Physiological, Emotional, Behavioral •Immediate, Long-range Symptom-Management _ _ _ _ _ _ _ _) EXHIBIT 7-4 Transactional Model of Career Stress ( l Source : Janina C. Latack. "Work. Stress and Careers: A Preventative Approach to Maintaining Organizational Health." in M. B. Arthur. D. T. Hall , and B. S. Lawrence (eds.) Handbook o( Career 7//eory (New York: Cambridge University Press. 1989): 255 . have a lot at stake. For example, it is one thing to lose a job that you really enjoy with no other prospects in sight and no money in the bank. It is quite another to lose a job you dislike intensely when you have a sizable trust fund to fall back on. The next category in the model is stress reactions, which ca11 be physiological (e.g., pulse rate, blood pressure), emotional (e.g., anxiety, irritability), or behavioral (e.g .. loss of sleep, weight gain). There are both immediate (e.g., job dissatisfaction) and long-term stress reactions (e .g., illness or job change). Copi11g is the means by which individuals and organizations manage extemal or intemal demands that tax or exceed the individual 's resources. Coping strategies focus on (I) changing the situation (direct action), (2) changing the way we think about the situation (cognitive reappraisal), or (3) focusing on the stress reaction (symptom management). Not all coping mechanisms that focus on symptom management are positive. For example, drinking alcohol and overeating are harmful whereas meditation and exercise are positive. It is more effective to reduce or eliminate the source of stress (the stressor situation) than to treat its symptoms through stress management. 32 Coping mechanisms are an attempt to establish some degree of control over the situation and prevent a stress reaction . Social support is another factor that can prevent stress. It is defined as receivi11g information that tells people they are lo11ed, respected, valued, and part of a network of mutual obligations. 33 People who receive social support from their supervisors, coworkers, families, or friends are somewhat buffered from the effects of stress. The duration of the stressor situation also plays a role in this model. The longer the stressful situation lasts, the more likely that health problems will result. It is interesting that "daily hassles" may actually cause more stress than critical life events, such as divorce or the death of a loved one. 34 Stress is additive, which means that a seemingly innocuous stressor may be "the 171 172 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK straw that breaks the camel's back" if the person has already been exposed to too many other stressors. Thus, the same stressful work event may impact individuals in different ways. Finally individual characteristics also affect the stress process . For example, people who exhibit Type A behavior who are also quick to anger, mistrustful, and suspicious of other people are more likely candidates for stress-related heart disease than both Type A personalities who are not hostile and people with Type B behavior. 35 The characteristics of Type A behavior are an obsession with achieving more and more in less and less time, inability to cope with leisure time, doing two or more things at once, impatience with the time it takes to make things happen, constant movement, and rapid walking and eating. Many workaholics exhibit this behavior, but only when accompanied by a hostile attitude is it harmful to the individual 's health . Type B behavior is characterized by the absence of time urgency and impatience, no felt need to display or discuss achievements , and playing for fun and relaxation without an accompanying sense of guilt. People with external locus of control, who believe that their lives are controlled by outside forces , also perceive situations to be more stressful than people who believe they control their own destiny. The latter condition is referred to as internal locus of control.36 When people have control over their tasks at work, they also feel less stress. 37 There is very little research on cultural and ethnic differences with regard to work stress. We do know, however, that minorities in nontraditional careers experience their own particular brand of work stress. Having to prove their competence by working harder than others, dealing with racism and discrimination, and being observed more closely are sources of stress for African Americans. 38 Companies should be aware of the cost of excessive work stress, not only for minorities , but for all employees-decreased job satisfaction and performance, and increased absenteeism, alcohol and drug abuse, and illness. Overwork is a potential source of stress as well as a detriment to personal satisfaction and family and community life, according to social critics.39 The overall statistics on average work hours are somewhat misleading since more individuals are working either long or short weeks. Many of those working long weeks (who tend to more skilled and highly educated) would like to reduce their hours, whereas some employees working short weeks would prefer a regular 40hour week with full benefits. The percentage of employees working at least 50 hours a week has increased to 25 percent of men and 10 percent of women. In one study, 45 to 50 percent of all workers (and 80 percent of those working over 50 hours a week) reported that they would like to have more free time; 25 percent of them would be willing to take a pay cut to work fewer hours. Other research reports that 44 percent of employees report that they are overworked often or very often. 40 Why haven't U.S. businesses responded and reduced work overloads? Many companies would rather overwork some employees and underwork others than pay costly benefits for more full-time employees. This practice may be beneficial to owners and stockholders in the short run ; if we consider, however, the costs to a broader set of stakeholders-individual workers, their families , and their communities-the picture is less positive. Overworked people need time to nurture and maintain their families and relationships, to volunteer in their communities, and to replenish their energies and avoid burnout. 41 Finding a balance between work and nonwork is a personal challenge for many employees and an important HR issue for many organizations. Some suggestions for managing this balance follow. • Design the organization and jobs to support employee growth and achievement One study found that employees who had jobs that provided them more opportunities to continue to learn, supportive supervisors, flexible work policies for managing job and personal lives, and input into the decision making process feel less overworked- even when they had demanding jobs and put in long hours at work. 42 CHAPTER 7 PERSONAL GROWTH AND WORK STRESS • Develop policies that support both work and personal life interests Research from the ( Families and Work Institute suggests that "employees who are dual- or family-centric versus work-centric are healthiest and most successful at work and at home. Having a life outside of work doesn ' t detract from work success-rather it appears to enhance it." 43 Thus, work and non work activities appear to complement and support one another. Paying attention to the balance contributes to both individual and organizational effectiveness. • Recognize that the nature of work and careers have changed Technology has made it possible for employees to work while at home and on vacation and has made employees accessible to their employers even when they are in remote locations . This, too, has contributed to the sense of overwork that many employees report. Organizations need to think about the timing and pacing of work. For example, some companies have instituted work sabbaticals where employees take several months of paid time off to rejuvenate themselves. Intel employees can take a two-month sabbatical every seven years.44 The accounting firm Deloitte and Toucl1e has developed a Personal Pursuits initiative. The program allows Deloitte employees to take up to five years off unpaid, then return to the same or a new job. Deloitte will pay for any training, licenses, or professional association memberships the employees need to maintain. Employees also meet monthly with mentors who keep them apprised of office developments .4 5 In cultures that believe in fate and destiny (e.g., Arab countries and Latin America), people tend to be Jess proactive about planning their careers because "what will be will be." Cultures that believe people are the master of their own fate (such as Canada) place more emphasis on career planning. The disadvantage of the belief that humans control their destiny is that people blame themselves when they fail to achieve their career goals and ignore the role of luck. When economies undergo major restructuring, the careers of many people are disrupted through no fault of their own. ( 173 17 4 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK MY LIFE LINE ( CHAPTER 7 PERSONAL GROWTH AND WORK STRESS ( SELF-ASSESSMENT AND LIFE PLANNING (Time allotted: 90 minutes) STEP l . Form trios for life planning. (5 minutes) These groups will act as sou nding boards and coaches in the life planning ac tivities that follow. STEP 2. Life line exercise. (20 minutes) (a) Individually, trio members should draw a line in the box on the preceding page to describe their view of their whole life from beg inning to end. Draw a line that corresponds to your own concept of your life line . Your life line can be any shape and can go in any direction. It could be a road, a river, a thread, a path, a graph line, or anything else you can imagine. Another way to think of it is as a route across a map with labels for the significant points of interest. Place a mark on this line to show where you are right now. (b) Next, interpret your life line for your trio and discuss the feelings and thoughts you had in drawing the line and in placing your mark. Notice that each life line has three distinct portions: your past, the place you are now (the X), and the portion of the line that represents your view of your future life and career path. These three portions represent the three basic perspectives for se lfassessment and career planning. ( The past consists of your unique experiences, acquired skills, and personal history. With regard to career planning, these aspects of the past are important. • The past has happened ; we cannot change it. • Our past has a place in our current lives; we need to accept it and use it creatively but not be inhibited by it. • The past, creatively used , yields insight about our unfulfilled potential. • The past creates expectations for ourselves and can influence or limit the goals we set for the future. The present refers to the here-and-now or your life with all its joys and frustrations and your current priorities as they are embodied in your daily life situation and the way you spend your time. These aspects of the present play a role in career planning. • Individuals can consciously plan their lives by assessing themselves, their environments, and their resources in the present. l 175 176 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK • You can choose where you would like to go on the basis of what satisfies you now. • We need symmetry and wholeness in our lives. Often we make choices in the present that lead to a lopsided future (e.g., being too career oriented at the expense of a private life of fun, friends, and family) . • Each person has a reservoir of undeveloped potential in the present that suggests directions for future development. Tht: Fu~·ur-e The future refers to your fantasies, dreams, goals, hopes, and fears, as well as specific commitments and responsibilities you have undertaken. • In large part, we can create our own future. • Our future becomes self-determined to a great degree through the choices we make in the present. • We can try to create the future by the process of: I Self-assessment Feedback Evaluation ~ \ Goal Setting ActionJ By using the combination of these three perspectives on your life, it is possible to develop a more fulfilling life plan. By taking all three perspectives into account, a kind of triangulation occurs that identifies common themes from your past, your present, and your future. THE FUTURE goals, dreams, commitments, and responsibilities ~ ~ THE PAST THE PRESENT experiences, skills, and achievements current satisfactions/frustrations. present life situation, and time commitments ( CHAPTER 7 PERSONAL GROWTH AND WORK STRESS The next three exercises for your trio ask you to work together to assess yourselves from the present, past and future perspectives. STEP 3. Who am I now? (20 minutes) • • • Write I 0 separate short statements that answer the question, "Who am I?" Then rank these statements according to their importance to you . Discuss your answers and rankings with others in your trio. Who Am I? Rank Order 1. lam 2. lam 3. lam 4. lam s. lam 6. lam 7. lam 8. lam 9. lam 10. lam ( STEP 4. Past experience inventory. (30 minutes) Complete the following questions and discuss them in your trio . Approximate Dates 1. Who have been the most influential people in your life, and in what way have they been influential? 2. What were the critical incidents (events) that made you who you are? 3. What have been the major interests in your past? l 177 178 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK 4. What were your significant work experiences? 5. What were the most significant decisions in your life? 6. What role hove family, societal, and gender expectations ployed in your life? 7. Where do you feel fully olive, excited, turned on? Under what conditions does this occur? 8. Where do you feel dull, routine, turned off? What conditions produce that? 9. What ore you really good at? What strengths do you hove to build on? 10. What do you do poorly? What do you need to develop or correct? 11. What do you wont to stop doing or do much less of? 12. What do you wont to start doing or do much more of? 13. What do you wont to learn or develop in yourself? ( CHAPTER 7 PERSONAL GROWTH AND WORK STRESS STEP 5. My future goals. (20 minutes) ( a. Share your Life Goal Inventory, which you completed as part of the class preparation, with each other. Your work on the previous exercises may suggest changes to you . If so, make them. t ;;_: ( \~ 1. Adult development occurs in a succession of fairly predictable phases characterized by equilibrium and disequilibrium. The disequilibrium results from new psychological issues that arise from new internal forces and/or external demands or pressures. Once these issues are settled, people pass through a quiescent period of stability and equilibrium . 2. According to Levinson, the developmental task for adults is to establish a life structure-the pattern or design of a person's life-that is appropriate for each stage of their lives. These structures last approximately seven years. 3. People go through both stable and transitional periods. During the latter, individuals reevaluate and recreate their life structures. Transitions occur about the ages of 30, 40, and 50. If they are very turbulent, they are called crises, like the midlife crisis. 4. Career anchors are motivational , attitudinal , and value syndromes formed early in life that function to guide and constrain people's careers. 5. The different career anchors are (a) technical/functional competence, (b) managerial competence, (c) security and stability, (d) creativity/entrepreneurship, (e) autonomy and independence, (I) service, (g) pure challenge, and (h ) lifestyle. 6. Four patterns of careers are : (a) linear, (b) steady-state, (c) spiral , and (d) transitory. 7. The five strategies for managing dual careers are (a) limiting the impact of family on work, (b) taking turns, (c) participating in joint ventures. (d) choosing independent careers, and (e) subordinating one career to the other. 8. A mentor is a senior person within the organization who assumes responsibility for a junior person. 9. People who were extensively mentored received more promotions, were more highly paid, and reported higher job satisfaction than those who received little mentoring. Mentoring is especially helpful for women and minorities. 10. The career functions of mentoring are ( 1) sponsorship, (b) exposure and visibility, (c) coaching, (d) protection, and (e) challenging assignments . 11. The psychosocial functions of mentoring are (a) role modeling, (b) acceptance and confirmation, (c) counseling, and (d) friendship. 12. People who set clearly stated career goals are more likely to achieve them. 13. Stress is defined as the nonspecific response of an organism to demands that tax or exceed its resources . 14. The transactional model of career stress consists of stressor situations, cognitions, and stress reactions. Social support and coping can prevent stress reactions . The stress process is also affected by the duration of the stressor and individual characteristics. 15. There are three types of coping mechanisms: direct action, cognitive reappraisal, and symptom management. 16. People who receive social support from their supervisors, coworkers, families, or friends are somewhat buffered from the effects of stress. 17. Individual characteristics that are related to greater susceptibility to stress are hostile Type A behavior and external locus of control. 18. The cost of excessive work stress is decreased job satisfaction and performance, increased absenteeism, alcohol and drug abuse, and illness. 179 180 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK ( FOR EMPLOYEES • Career experts recognize that personal growth or change is not a steady progression but rather a series of fits and starts. • They adopt a "protean" career strategy. This means that employees must be responsible for their own career development, create their own learning opportunities, and stay attuned to opportunities that allow them to refine existing skills and develop new ones. • They seek out mentors, both inside and outside their organization. • They make time to reflect on their career. One way to manage your career wisely is to identify your career pattern and analyze whether it is appropriate for your needs. • Experts at managing stress use good time management skills. • They proactively manage their stress by paying attention to how they balance work and nonwork experiences. • When change is looming on the horizon or hits their organization or industry, effective employees try to adapt quickly rather than getting stuck bemoaning the loss of " the way things were." They learn new skills and position themselves to weather inevitable changes. • They are not a stress "carrier" who generates stress in others by being disorganized, putting employees in double binds, making impossible demands, and so forth . FOR MANAGERS • Managers who sincerely try to help employees reach their career goals are usually rewarded with loyalty and commitment. • Managers with career management expertise recognize that employees have unique career goals and life situations. Too often managers who are single-mindedly pursuing a suite at the top find it difficult to value employees who are content to remain where they are or who have chosen a different career path. As long as employees perform their jobs well, lack of driving ambition should not be held against them. • Experts take into consideration the different career stages of their employees. For example, a young "fast tracker" who may have many of the other skills needed for a managerial job may still be too involved in establishing his or her own career to mentor subordinates adequately. The best mentors are most likely to be found in the 40-to-60 age group because this coincides with a stage of adult development in which guiding the younger generation assumes greater importance. • They help employees find a work/life balance, which they model. Managers who drive their employees so hard that it is impossible for them .to have a personal life usually have a higher degree of turnover. • They give workaholics a careful look. Sometimes working long hours is not a habit to admire but an indication of inefficient work habits and lack of social life outside of work. If this is the case, workaholics' need to socialize on the job may actually prevent other employees from getting their work done. • Work schedules that change constantly do not allow employees to create a life outside of work. This is generally not healthy for an extended period. Most people need a balanced life to keep a perspective on problems and find a measure of contentment. • Experts understand that some kinds of stress at work cause people to resign while other types help retain employees. Examples of "bad stress" include office politics, red tape, and stalled careers. "Good stress" includes the challenges that accompany increased job responsibility, high-quality assignments, and time pressure when employees have the skills to cope with these conditions. When employees perceive that stressful situations will result in money, new skills, or promotion, they are more likely to have a better attitude toward them and stay on the job.46 ( \___ CHAPTER 7 PERSONAL GROWTH AND WORK STRESS FOR ORGANIZATIONAL ARCHITECTS ( ( • Organizations that evaluate their managers on their ability to develop employees will generally see more positive results in this area. IL 's not enough to state that career development is important; measuring and rewarding it provides a clearer message that career development is valued. • Managers are more likely to provide effective counseling to employees if they themselves also receive it from their superiors. It should be modeled for them. • Expert organizational architects take a pluralistic approach to career development for employees. Employees will differ in what they view as success and how they believe their careers should progress. Responding flexibly to those needs helps retain talented employees and leads to better performance from them. • Organizational architects that take a proactive response to managing stress can reduce absenteeism , turnover, and health care costs. Training programs can give employees coping skills for dealing with stress and help educate people to realize that work and nonwork balance will often result in better, not worse, performance. HR managers can develop policies that allow employees to responsibly pursue their work and nonwork goals. • They recognize that downsizing rarely results in less work that needs to be done. Instead , it usually results in fewer people having lo do the same amount of work. When organizations are forced to reduce staff, managers should create a "Stop Doing" list with the help of employees to eliminate nonessential work and prevent overload. Eisenhower once said, "A plan is nothing; planning is everything." In career planning, too, the plan itself is not as valuable as the act of planning. Plans must give way to outside contingencies. But the process of planning-taking stock, devising objectives and possible means of reaching a goal, and then checking to see how one is faring and coming up with a new plan if necessary-is extremely valuable. This assignment is the Goal Achievement Plan and Achievement Progress Record . It is designed lo help you create a plan for attaining a goal you select to work on in the immediate future. The steps in the plan are based on the factors that research has shown to be characteristic of successful goal achievers. Following these steps should help you improve your ability to achieve your goals. A. From the Life Goal Inventory that you completed in the class preparation , pick the goal you most want to work on in the next six months . In choosing this goal you should consider the following issues. (See the ratings you made of goals.) 1. Importance of the goal 2. Ease of attainment 3. Whether the goal is in conflict with other goals 181 182 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK B. The overall goal you choose to work on may include two or three of the goals you listed in the inventory. The main thing is lo be clear about the future state you are striving for. To do this, complete the following Goal Definition form . ( GOAL DEFINITION 1. Stale as specifically as possible what goal you want to achieve in the next six months. Now, think about your goal in terms of the following questions. 2. How important is it that you achieve your goal? 3. What conflicts are there with other goals? How will you manage the conflicts? 4. How will you feel when you attain this goal ? (Try to imagine yourself with the goal achieved. What are your feelings?) 5. How will you feel if you do not allain this goal? (Try lo imagine again. What are your feelings?) 6. What do you think about your chances of succeeding? What will happen if you do succeed? 7. What will happen if you fail? C. Now that you have defined your goal, the next step is to plan how to achieve it. There are two issues to be examined: the personal shortcomings and external obstacles that may prevent yohu from 1:eaching yhour goal. . R . Ob d Pl . A . f stac 1es an anmng ct1on orm are T e quest10ns on t e accompanying emovrng designed to help you accomplish this. \ .. CHAPTER 7 PERSONAL GROWTH AND WORK STRESS REMOVING OBSTACLES AND PLANNING ACTION ( What personal shortcomings might keep me from achieving my goal? 1. 2. 3. 4. What external obstacles might keep me from achieving my goal? 1. 2. 3. 4. What can I do to eliminate or lessen the effect of any of these obstacles or shortcomings? (Note that you need not eliminate the obstacle entirely. Anything you can do to lessen the force of the obstacle will start you moving toward your goal.) Shortcoming/ Obstacle What I Can Do about It What specific things can I do that will move me toward my goal? 1. 2. 3. 4. 5. Circle the one that you are going to emphasize the most. 183 184 PART 1 UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK Who Can Help Me Achieve My Goals? What Will I Ask of Them? 1. 2. 3. 4. PROGRESS REPORT Now that you have made your plan, the next task is to put it into effect. Figure out what steps you must take to reach your goal and how you will measure your progress. Plan out what you need to do each week and how long it will take to meet your goal. You may want to choose a partner who will help you monitor your progress. You can agree on a contract that stipulates how often you will check in with each other and what kind of help you want from your partner. ( CHAPTER 7 PERSONAL GROWTH AND WORK STRESS ( 185 ENDNOTES \ 1 D. M. Wolfe and D. A. Kolb. "Career Development. Personal Growth. and Experiential Learning," The Organi::.ational Behavior Reader (Englewood Cliffs. NJ: Prentice Hall. 1991): 147. 2 R. L. Gould. Trcmsformations (New York: Simon and Schuster. 1979). 3 G. Sheehy. New Passages (New York : Ballantine 1995); and Understanding Men's Passages (New York: Ballantine. 1999). "'D. J. Levinson. "A Conception of Adult Development." American Psyclwlogist 41 (January 1986): 3-l 3. 5 R. J. Burke and D. L. Nelson (Eds.) Advancing Women's Careers (Oxford: Blackwell. 2002). 6 This section is taken from J. V. Gallos. "Exploring Women's Development: Implications for Career Theory, Practice and Research." in M. Arthur. D. T. Hall. and B. S. Lawrence (eds.). Handbook of Career Theo1)' (Cambridge: Cambridge University Press. 1989): 110-32. 7 D. J. Levinson. in collaboration with C. N. Darrow. E. B. Klein. M. H. Levinson. and M. Braxton, Seasons of a Man's Life (New York: Ballantine. 1978). and Levinson . "A Conception of Adult Development." 8 ( D.C. Feldman , "Career Stages and Life Stages: A CareerDevelopment Perspective," The 1987 Annual: Developing Human Resources (LaJolla, CA: University Associates. 1987): 231. 9 For more details on active listening. see Chapter 8, Interpersonal Communication. and Rogers and Farson's article entitled "Active Listening" in the Reader. D. T. Hall. "Brand You: Building Your Protean Career." In A. R. Cohen (ed .). The Portable MBA in Management (New York: Wiley. 2002) : 214-239. IO 11 E. Schein. Career Dynamics: Matching l11dil'id11al and Organi::.ational Needs (Reading. MA : Addison-Wesley. 1978): 133. and " Individuals and Career." in J. W. Lorsch (ed.). Handbook of Orgcmizational Behavior (Upper Saddle River. NJ: Prentice Hall. 1987): 155-71. 12 J. Brousseau. M. Oliver. K. Eneroth. and R. Larson. "Career Pandemonium: Realigning Organizations and Individuals.'' Academy of Management Erecwive JO ( 1996): 52-66. 13 U.S. Bureau of Labor Statistics. "Employment Characteristics of Families Summary." http://www.bls.gov/news.release/famee.nrO.htm. Accessed July 3. 2006: U.S. Bureau of Labor Statistics, "Wives Who Earn More than Their Husbands: · http://www.bls.gov/opub/ted/2005/jun/wk3/art04.htm. Accessed July 3. 2006. l I-I E. H. Schein, Career Dynamics: Matching Individual and Organizational Needs: and L. Bailyn, "Involvement and Accommodation in Technical Careers: An Inquiry into the Relation to Work at Mid-Career," in J. Van Maanen (ed.). Organizational Careers: Some New Perspectives (New York: John Wiley, 1977): I 09-132. 15 A. M. Morrison. R. P. White. E. Van Velsor, and the Center for Creative Leadership, Breaking the Glass Ceiling: Can Women Reach the Top of America's Largest Co11Jorations? (Reading, MA: Addison-Wesley, 1987). 16 G. Dreher and R. A. Ash, "A Comparative Study of Mentoring among Men and Women in Managerial. Professional. and Technical Positions." Journal of Applied Psychology 75(5) (October 1990): 539-46. 17 K. E. Kram. Memoring at Work: Developmenwl Relationships in Organizational Life (Glenview. IL: Scott. Foresman. 1985): 22-39. See also S. Donaldson. E. A . Ensher. and E. J. Grant-Vallone, " Longitudinal Examination of Mentoring Relationships on Organizational Commitment and Citizenship Behavior," Journal Of Career Development 26(4) (2000): 233-248: E. A. Ensher, E. J. Grant-Vallone. and W. D. Marelich. " Effects of Perceived Attitudinal and Demographic Similarity on Proteges' Support and Sa1isfaction Gained From Their Mentoring Relationships.'' Journal of Applied Social Psychology 32 (2002): 1-26. l8 M. B. Arthur, D. T. Hall, and B. S. Lawrence. Handbook of Career The01 )' (New York: Cambridge University Press, 1989): and D. T. Hall. Career Development in 01~~anizations (San Francisco : Jossey-Bass, 1986). 19 "Work Week." Wall Street Journal. (June 8. 1999), A-1. ° 2 Center for Women's Business Research, "Top Facts About Women-owned Businesses," http://www.nfwbo.org/ topfacts.html. Accessed 7/10/06. 21 J. Conger, Spirit at Work: Discovering the Spirituality in Leadership (San Francisco: Jossey Bass. 1994). 22 G. Ritkin. "Finding Meaning at Work," Strategy & Business 1(4) (Fourth Quarter 1996): 15-17. 23 D. A. Kolb and R. E. Boyatzis, "Goal-Setting and SelfDirected Behavior Change," Human Relations 23(5) ( 1970): 439-457. 24 E. Kay. J. R. P. French, Jr.. and H. H. Meyer. A Study of the Pe1formance Appraisal Interview (Management Development and Employee Relations Services. General Electric Co .. New York. 1962). 25 C. Latack. " Work. Stress and Careers: A Preventative Approach to Maintaining Organizational Health." in M. Arthur, 186 PART l UNDERSTANDING YOURSELF AND OTHER PEOPLE AT WORK D. T. Hall, and B. S. Lawrence (eds.), Handbook of Career TheOI)' (Cambridge: Cambridge University Press, 1989): 252. 26 B. L. Seaward, "Job Stress Takes a Global Toll ," Safety & Health 151 ( 1) ( 1995): 64--66. 27 World Health Organization. "Mental Health and Working Life," Briefing prepared for the WHO European Ministerial Conference on Mental Health (Hel sinki, Finland, January 12-15, 2005). 36 K. R. Parks. "Locus of Control , Cognitive Appraisal and Coping in Stressful Episodes," loumal of Personality and Social Psychology 46 ( 1984): 655-68. 37 T. A. Beehr, Psyclwlogical Stress in the Workplace (London: Routledge, 1995 ). 38 D. C. Ganster, "Executive Job Demands: Suggestions from a Stress and Decision-Making Perspective," Academy of Ma11ageme11t Review 30(3) (2005): 492-502. D. L. Ford. "Job-Related Stress of the Minority Professional: An Exploratory Analysis and Suggestions for Future Research," in T. A. Beehr and R. S. Bhagat (eds.), Human Stress and Cognition in Organizations (New York: Wiley, 1985): 287-323; C. McManus. B. Terry, D. Hicks, T. Rolle, and L. White, "Cumulative Experiences of Racism in African Americans: A Clear and Present Danger" Association for Psychological Science Convention (May 25-28, 2006). 29 H. Selye, The Stress of Life (New York: McGraw-Hill , 39 28 1956); and "The Stress Concept: Past, Present, and Future," in C. L. Cooper (ed.), Stress Research: Issues for the 80 's (New York : Wiley, 1983). 30 J.C. Latack, "Work, Stress and Careers: A Preventative Approach to Maintaining Organizational Health," in M.B. Arthur, D. T. Hall, and B. S. Lawrence (eds.) Handbook of Career Theory (Cambridge, UK: Cambridge University Press, 1989): 252-274. 3I Latack, Work, Stress and Careers : 254. 32 C. L. Cooper, and S. Cartwright, " Healthy Mind ; Healthy Organization-A Proactive Approach to Occupational Stress," Human Relations 47(4) ( 1994): 455-472. 33 S. Cobb, "Social Support as a Moderator of Life Stress," Psychosomatic Medicine 38 ( 1976): 300--314. J. Jacobs and K. Gerson, "Individuals or Overworked Families: Explaining Trends in Work, Leisure, and Family Time," Work and Occupation" 28( I) (200I ): 40-63. E. Galinsky, J. Bond. S. Kim. L. Backon, E. Brownfield, and K. Sakai, Overwo1* in America: When the Way We Work Becomes Too Much (New York: Families and Work Institute, 200.5). 40 41 J. S. Osland. B. H. Drake and H. Feldman, "The Stewardship of Natural and Human Resources," in C. J. Dempsey and R. A. Butkus (eds.), All Nature ls Groaning (Collegeville, MN: Liturgical Press, 1999): 168-192. 42 Galinsky. Bond, Kim. Backon, Brownfield, and Sakai, Overwork i11 America. See also S. Leka. A. Griffiths , and T. Cox , Work Organization and Stress (World Health Organization, Protecting Workers ' Health Series, No. 3, 2003) . 43 Galinsky, Bond. Kim, Backon, Brownfield, and Sakai, Ove rwork in America: I 0. 44 34 C. Larson, "Time Out," US News & World Report (February 28, 2005) http://www.usnews.com/usnews/biztech/articles/ 050228/28eesabb.htm. Accessed 9/28/06. 35 45 C. Larson. "Time Out." 46 "Good Stress, Bad Stress," HR Focus 76 (April 1999): 4. R. S. Lazarns and A. DeLongis, "Psychological Stress and Coping in Aging." American Psychologist 38 ( 1983): 245-254. R.Williams. The Trnsti11g Heart: Great News about T)•pe A Behavior (New York: Times Books. 1989). ( ( CREATING EFFECTIVE WORK GROUPS In Part 2, we will focus on developing the key skills needed by effective managers and employees. Interpersonal Communication Perception and Attribution ( -1 Group Dynamics and Work Teams <:i il Problem Solving Managing Creativity Conflict and Negotiation Managing Diversity l 187 (5) ( INTERPERSONAL COMMUNICATION CHJ,.JI;<:T iV E 5 By the end of this chapter, you should be able to: A. Understand the transactional model of communication. B. List common sources of distortion in communication. C. Identify gender differences in communication. D. Identify cultural differences in communication . E. Describe and identify the five response styles. F. Explain how to create a climate that encourages nondefensive communication. G . Recognize assertive communication and utilize I-statements. H. Improve your active listening skills. J{'·. r When I first entered the workplace, I suffered the smugness shared by many young people who have had success in college. I could write well under the pressure of deadlines and felt comfortable speaking in public. I was quick to learn new skills and could solve technical problems that baffled more experienced colleagues. I had lots of energy, loved to work hard, and enjoyed succeeding at complex tasks. I was an up-and-coming star. However, despite what I thought were my superior workplace skills, no one seemed to want to work with me. During meetings, my ideas were ignored. I was passed over for a promotion with the vague explanation that I needed to work on my interpersonal skills. Although my technical skills were beyond reproach , I never seemed to progress in my career. My explanation: I wouldn't "suck-up" to the boss ; I told the truth , particularly about the failings of my coworkers; and I intimidated other people with my intelligence and proficiency . So I started the slow evolution into one of those bitter, sarcastic people I now see too often in the workplaces I visit. You probably know at least one. 188 CHAPTER 8 ( INTERPERSONAL COMMUNICATION I am one of the lucky ones. Because of the early intervention of several compassionate supervisors, I learned that the reason that I was not doing well had nothing to do with the jealousies or inadequacies of others. To paraphrase one of my mentors, 'The problem is not that you are so smart, Pat; the problem is that you are a jerk." ("Jerk" translates into "oblivious and/or unconcerned about how one 's poor interpersonal skills impact others.") Smart people are sometimes susceptible to "Jerkitude," because, if they are task oriented and have been rewarded only for measured success with computers, budgets, and other inanimate objects, they might ignore or even disparage the "soft" skills, such as negotiation , conflict management, and delegation. But, even if you are currently successful at building productive relationships, a change in your personal or professional situation can also change your behavior for the worse. Here are some warning signs and prevention tips regarding three kinds of communication mistakes I have seen and heard in workplaces all over the United States, including universities, federal laboratories, high-tech companies, and research departments. Unfortunately, I am almost always there because the "jerk" factor is out of control, despite the fact that the majority of employees and administrators have postgraduate education and many years of experience. Being smart is not enough to protect you from these mistakes. KEEPING IN THE BEST PERFORMANCE STATE ( The first key to maintaining and improving excellent communication is to take your physical and emotional health seriously. How you feel, which is impacted by everything from the ugly situation with your daughter to the effects of the antibiotics you took for a gum infection, can impact your ability to assess accurately and respond effectively to situations in the workplace . You might not feel that your technical work has suffered, but did you slam that perfect budget report on the desk instead of handing it to the accountant with a smile? At a radio station, one of the news anchors was coping with her mother, who was dying of cancer. Her way of dealing with the lack of control in her personal life was to become a raging perfectionist at work. When she realized what was happening, she asked a friend to give her a scorecard at the end of each day, particularly regarding her behavior during meetings with her producers and engineers. It took only two such scorecards for the news anchor to realize that she was not doing anyone a favor by staying on the job. She arranged a leave of absence, stayed with her family until her mother passed away, and then returned to work. Of course, not everyone works for an instillltion where the policies allow for leeway during personal crises. And not everyone is fortunate to have honest and friendly coworkers. However, my experience is that you are deluding yourself if you think that willing away the effects of sadness, pain , and pharmaceuticals will ensure your workplace behavior is impeccable. THE WRONG PROFESSIONAL ATTITUDE Sometimes the cause of a smart person's behavior has nothing to do with a denial of the effects of stress. Sometimes an ineffective communication style is the result of years of conditioning, where the smart person is led to believe that being smart is the only measure of success, usually because he or she was rewarded for succeeding at taking tests or advancing through a hierarchical workplace, such as a university or large corporation . The smart person , in this case, thinks that all rank, authority, influence, and privilege in the workplace should be measured by "smart." • " I have the most degrees, so I get to make the decisions for the group." • "Only people who graduated from my prestigious college or its equivalent should be allowed into our program." • "Hello, my name is Pat, and here is my IQ, as verified by a high-IQ organization. And what is your IQ? Oh, yes, and your name?" l My favorite story about ignoring rank comes from a pathologi st, who ran a large laboratory. When a tissue sample defied diagnosis, he would recruit an ad hoc panel to comment on the 189 190 PART 2 CREATING EFFECTIVE WORK GROUPS problem. He always included young and relatively inexperienced lab technicians in the process. He had discovered that their fresh viewpoints were key to successfully analyzing the slides and specimens. This was true despite the fact that he, as a board-certified doctor with decades of experience and a wall full of degrees and awards, was supposed to have all of the answers. "I am here to save lives, not to try to prove that I am the smartest person in the room," he said. How do you prevent yourself from becoming sucked into a meaningless caste system where you begin to believe your own press releases? Two useful techniques fall under the heading of "career development." First, get a life outside of work. (Some of your colleagues might suggest that you get a life, period, but we will ignore their sarcasm.) Volunteer activities, particularly ones not related to your field , are a great way to get a perspective on the relative importance of your title in the big scheme of things. Second, seek out activities where you are going to meet people from different backgrounds. It can be disconcerting and refreshing to be around individuals who don' t know what your credentials are, and don't care. You then have a way of judging your ability to influence other people outside of the familiar terrain of your business or profession, where they are reacting to your past successes, reputation, and so on, as much as to your actual skills as a communicator. THE CLUELESS FACTOR The most difficult flaw to self-diagnose and self-correct in the smart person is the conviction that one's failings are actually virtues. Here is a list of typical "smart" flaws that are easy to rationalize: • "I don't talk too much. I simply have more to say." • "I do not use sarcastic humor to hurt people. If my wit causes someone pain, perhaps it is deserved." • "I do not indulge in chit-chat because it is a waste of time, not because I am not interested in other people." • "The only reason I am asking that the rules be suspended for me is because I am more deserving." Some of the smart people I have been asked to consult with about influencing their workplace behavior over the years are truly bulletproof. They use their intelligence to construct selfreferential belief systems that are impenetrable. • "Any criticism of my behavior is proof of the inferiority of the people doing the criticizing." • "I believe I am perfect, and because I am perfect, my opinion of myself must be correct." An attack on such a belief system is futile. Instead, I suggest a simple model of communication that can sometimes compel the person to change behavior in order to keep the belief system intact. For example, the head of a government library was convinced that his behavior was beyond reproach. Trust me-it wasn't. The specific behavior that his colleagues complained about was his inability to delegate. I could not budge him off the idea that he was the only person who could do the job perfectly. However, I asked him if he was willing to take on the role of teacher, implying that he, of course, would do it perfectly. I suggested that one of the best ways to teach people was to let them create their own processes to get to the goal, which, as a learning exercise for them , he would create with them. Then, I said, he could demonstrate his expertise as a teacher by getting out of their way and stop micromanaging. The library head did not become a changed man; he did do a decent job of stepping back and letting others do some of the work without interference. The trick is to appeal to the better nature of the smart person and suggest that because he or she can do anything well, this new behavior is another way to prove their competence to the world. ( CHAPTER 8 INTERPERSONAL COMMUNICATION BUT ... ( But what if you are the clueless person reading this article, scoffing at yet another "touchy-feely" approach to workplace productivity? The following exercise is sometimes enlightening. First, write a list of the behaviors that people in your workplace do that bother you . Then take the list to employees, colleagues, supervisors, and customers, and ask them if you do any of these behaviors. And when. And how often. Hopefully, you will have chosen Lo have enough lruthtellers in your life and will be able to elicit some valuable feedback about your own behavior. And, perhaps, if you are really smart, you will be able to do something with the information . Source: Excerpted from P. Wagner. "Communication Mistakes Only Really Smart People Make," Records Ma11age111e111 Quarterly 3 1(3) (July 1997): 13-17. Used with permission. A. Read "Communication Mistakes Only Really Smart People Make." B. Fill out the Communication Climate Inventory that follows. C. Please answer these questions : 1. Is your own communication style defensive or supportive? ( 2. What communication skills would you like to learn or improve? 3. How do you plan on going about it? How can your learning group help you do this? D. While reading the chapter, make a list of cues to consider with regard to communication. 191 192 PART 2 CREATING EFFECTIVE WORK GROUPS Communication Climate Inventory The following statements relate to how your supervisor and you communicate on the ;ob. If you have never worked, evaluate the communication you have observed in another context (e.g ., a coach, parent}. There are no right or wrong answers. Respond honestly to the statement, using the following scale: Q) Q) I... Q) Q) m 0 I... 1=Strongly Agree 2=Agree 3=Uncertain 4=Disagree 5=Strongly Disagree °'My supervisor criticizes my work without allowing me to give any explanations . My supervisor allows me as much creativity as possible in my job. My supervisor always judges the actions of his or her subordinates. My supervisor allows flexibility on the job. My supervisor criticizes my work in the presence of others . My supervisor is willing to try new ideas and to accept other points of view. My supervisor believes that he or she must control how I do my work . My supervisor understands the problems that I encounter in my job. My supervisor is always trying to change other people's attitudes and behaviors to suit his or her own . 10. My supervisor respects my feelings and values. 11. My supervisor always needs to be in charge of the situation . 12. My supervisor listens to my problems with interest. 13. My supervisor tries to manipulate subordinates to get what he or she wants or to make himself or herself look good. 14. My supervisor does not try to make me feel inferior. 15. I have to be careful when talking to my supervisor so that I will not be misinterpreted. 16. My supervisor participates in meetings with employees without projecting his or her higher status or power. 17. I seldom say what really is on my mind because ii might be twisted and distorted by my supervisor. 18 . My supervisor treats me with respect. 19. My supervisor seldom becomes involved in employee conflicts . 20. My supervisor does not have hidden motives in dealing with me. 21. My supervisor is not interested in employee problems . 22 . I feel that I can be honest and straightforward with my supervisor. 23 . My supervisor rarely offers moral support during a personal crisis. 24. I feel that I can express my opinions and ideas honestly to my supervisor. 25 . My supervisor tries to make me feel inadequate. 26. My supervisor defines problems so that they can be understood but does not insist that his or her subordinates agree. 27. My supervisor makes it clear that he or she is in charge . 28 . I feel free to talk to my supervisor. 29. My supervisor believes that if a job is to be done right, he or she must oversee it or do it. 30 . My supervisor defines problems and makes his or her subordinates aware of them . 31. My supervisor cannot admit that he or she makes mistakes. 32. My supervisor tries to describe situations fairly without labeling them as good or bad. 33 . My supervisor is dogmatic; it is useless for me to voice an opposing point of view. 34. My supervisor presents his or her feelings and perceptions without implying that a similar response is expected from me. 35 . My supervisor thinks that he or she is always right. 36 . My supervisor attempts to explain situations clearly and without personal bias. c ..2 >- Q) Q) ,_ m i5 >- 0I... I... u !./) <( :::> i5 °'V5 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 1 1 1 1 2 2 2 2 3 3 3 3 4 4 4 4 5 5 5 5 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 1 2 3 4 5 1 1 1 1 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 1 1 1 1 l 2 2 2 2 2 3 3 3 3 3 4 4 4 4 4 5 5 5 5 5 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 c 1. 2. 3. 4. 5. 6. 7. 8. 9. <ll YI l 1 l 1 l Q) Q) m I... Q) c 0 I/) c 0I... Source: J. I. Castigan, and M. A. Schmeidler, The 1984 A111111u/: Deve/opinK Hu111u11 Resources, J. W. PFeiffer and L. D. Goodstein (eds.): 115-116. Copyright © 1984 by Pfeiffer & Company, San Diego, California. Used with permission . ( CHAPTER 8 INTERPERSONAL COMMUNICATION COMMUNICATION CLIMATE INVENTORY ( SCORING AND INTERPRETATION SHEET Place the numbers that you assigned Lo each item statement in the proper blanks beneath each category in both Parts I and II . Now add them together to determine a subtotal for each climate category. Transfer these numbers to the correct blank in the "Subtotals for Defensive Scores" list on this page and in the "Subtotals for Supportive Scores" list on the next page and add your scores. Place an X on the graph at the bottom of the boxes to indicate your scores. Part I: Defensive Scores Evaluation Neutrality 1 Question 19 Question 3 Question 21 Question 5 Question 23 Subtotal Subtotal Question Control Superiority Question 7 Question 25 Question 9 Question 27 Question 11 Question 29 Subtotal Subtotal ( Certainty Strategy Question 13 Question 31 Question 15 Question 33 Question 17 _ _ __ Question 35 _ _ __ Subtotal _ _ __ Subtotal _ _ __ Subtotals for Defensive Scores Evaluation _ _ __ Control _ _ __ Strategy _ _ __ Neutrality _ _ __ Superiority _ _ __ Certainty _ _ __ Total _ _ __ 18 25 30 35 I I I I Defensive l 40 45 50 55 60 65 70 I I I I I I I Defensive to Neutral 75 Neutral to Supportive 80 I 85 90 I I Supportive 193 194 PART 2 CREATING EFFECTIVE WORK GROUPS Part II: Supportive Scores ( Spontaneity Provisional ism Question 2 _ _ __ Question 20 _ _ __ Question 4 _ _ __ Question 22 _ _ __ Question 6 _ _ __ Question 24 _ _ __ Subtotal _ _ __ Subtotal _ _ __ Problem Orientation Empathy Question 8 _ _ __ Question 26 _ _ __ o____ Question 1 Question 28 _ _ __ Question 12 _ _ __ Question 30 _ _ __ Subtotal _ _ __ Subtotal _ _ __ Description Equality Question 14 _ _ __ Question 32 _ _ __ Question 16 _ _ __ Question 34 _ _ __ Question 18 _ _ __ Question 36 _ _ __ Subtotal _ _ __ Subtotal - - - - Subtotals for Supportive Scores Provisional ism _ _ __ Empathy _ _ __ Equality _ _ __ Spontaneity _ _ __ Problem Orientation _ _ __ Description _ _ __ Total _ _ __ 18 25 30 I I Supportive 35 40 45 50 55 60 65 70 75 80 I I I I I I I I I Supportive to Neutral Neutral to Defensive 85 90 I I Defensive Note : See Jock Gibb's article on "Defensive Communication" in Journal of Communication 11 (3) ( 1961 ): 141-148 or in The Reader for on explanation of the framework underlying this instrument. You can have brilliant ideas, but if you can't get them across, your brains won't get you anywhere. ... I hadn't yet learned what I know now-that the ability to communicate is eve1ything. Lee /acocca, former CEO of Cluysler Communication is an essential skill at all levels of business. Poor written communication carries a high price tag for organizations. 1 Coleco lost $35 million in 1983 in just one quarter when frustrated customers returned its products because their instruction manuals were incomprehensible. CHAPTER 8 ( INTERPERSONAL COMMUNICATION After discovering that military officers took as much as 23 percent less time lo read clearly written documents, researchers concluded that the Navy could save over $26.5 million in wasted person-hours by writing more simply and plainly. Clear writing is especially crucial in e-mails, which have become the dominant form of communication in many organizations. Our purpose in this chapter, however, is to focus on interpersonal rather than written communication. Communication sk ills are the most important competency for entry-level job candidates, according to the managers who hire them. 2 Al the M.B.A. level where technical proficiency is assumed, the top three characteristics recruiters look for in a job candidate are strong communication and interpersonal skills, proven ability lo perform, and cultural fit with the company. 3 As an experienced executive recruiter noted , 'There are lots of brilliant people who can't relate with others-we replace that kind of person every day.'"1 Mintzberg's ground-breaking study oh the nature of managerial work identified communication as the most frequent and important of managerial activities. 5 He described the manager's work as essentially that of communication. Mintzberg claimed that many managers spend 80 percent of their time in verbal communication. 6 And even when managers are not trying to communicate, their actions (or lack thereof) are taken as messages. It's impossible to not communicate; rather the question for man agers is, "Am I communicating effectively what I want to convey?" The definition of co111111unication is the process by which information is exchanged between communicators with the goal of achieving 11111tual 1111derstanding. To better understand this complex process of interpersonal communication, let's examine the basic model of communication that follows . THE COMMUNICATION MODEL ( The Greeks believed that the god Mercury plucked ideas from the brain of the speaker, impaled the ideas on the end of a spear, and plunged them into the listener's brain. Today, communication is viewed as a transactional process. The model shown in Exhibit 8-1 has two communicators who participate equally and sometimes simultaneously in the communication process.7 While Person A sends a message, Person B listens and responds, verbally or nonverbally, sending a message of his or her own. Thus, as Social Systems Communicator A's Field of Experience c .Q -~_= +t Time2 0 u l EXHIBIT 8-1 Transactional Model of Communication So11rce: J. T. Wood. Co1111111111icU1io11 i11 011r Lives (New York: Wadswu11h. 1997) : 21. Reprinted with permission. 195 196 PART 2 CREATING EFFECTIVE WORK GROUPS Person A speaks, he or she is also "listening" and receiving a message from Person B. This is called a transactional model because it acknowledges that our responses to speakers ' messages lead them to modify what they say next. Furthermore, the different time periods reflect the changing nature of communication over time, depending on what transpires between people. For example, we might communicate in a formal manner with a new boss (Time 1), more informally if we become good friends with the boss (Time 2) , and even more formally and infrequently if we have a serious argument or falling out (Time 3,,). Communication occurs within social syste ms, and each communicator has a personal context, a field of experience (e.g. , family, religious associations, friends). Our individual backgrounds and personality cause us to encode and decode messages in a unique fashion. This makes mutual understanding more challenging and explains why the two communicators must find a shared field of experience (e.g., shared town, culture, organization, views). Then in Time 11 in Exhibit 8-1 represents the infinite number of interactions that could occur between Communicators A and B. Both the personal and shared fields of experience can change over time. The model also includes noise, which is defined as anything that inte1feres with the intended communication. There are three types of noise that prevent effective listening: (I) environmental (e.g., hot rooms, lawnmowers, etc.), (2) physiological (e.g., headaches or hunger pangs) , and (3) emotional (e.g., worry, fear, anxiety). We can see how emotional states create noise in the following example: The employee who arrives late for an 8:30 A.M . meeting because of a domestic skirmish is unlikely to capture all the messages coming his or her way. A rational mechanical view of the process of communication Could be depicted in the following manner: Person A Person B Person A says something to Person B who hears and understands what A said. If this were so simple, we would never experience what has been labeled the "arc of distortion," 8 which is shown below. The arc of disto11ion is the difference between what the sender intended to communicate and what the receiver actually understood. Person A communicates something to Person B that was not intended; Person B reacts to this unintended communication, which confuses or even frustrates Person A. For example, a general manager spends little time at work with an experienced department head, who interprets this lack of attention as lack of interest and respect. When confronted about spending more time with some department heads than others, the general manager explained that he spent more time with employees whose work he did not trust. In this instance, the general manager's behavior communicated a lack of interest, rather than trust and recognition of a job well done. All behavior communicates a message even when it is not verbal. In the broadest sense, therefore, when we study the concept of interpersonal communication, we are dealing with interpersonal relationships. Communication is the process vehicle through which relationships form , are managed, and, occasionally, dissolve. Relationships are only one of several barriers to communication that are described in the following section. Arc of Distortion A sender What A intends to communicate B receiver ( CHAPTER 8 INTERPERSONAL COMMUNICATION BARRIERS TO COMMUNICATION ( The potential for distortion in the communication process is great, and there are numerous causes of distortion that function as barriers to mutual understanding. Poor Relationships. Communications must be understood within the context of the interpersonal relationship. If two people have been involved in an ongoing, bitter argument over a business decision, it will be more difficult for them to hear the other's messages without di stortion. We communicate in a different, more effective manner with people who are supportive than with people who are not. Poor relationships and poor communication go hand in hand when trust is lacking. Covey explains this in terms of an Emotional Bank Account that exists for each relationship.9 We make deposits and build up a reserve when we are kind, courteous, honest, and dependable in our interactions with the other person. Thi s results in a high level of trust that allows the other person to overlook our communication errors and give us the benefit of the doubt when interpreting what we mean. However, when we treat the other person in ways that indicate a lack of consideration (e.g., discourtesy, ignoring them, being arbitrary, etc.), our Emotional Bank Account with them becomes overdrawn. The level of trust is so low that each word must be chosen with great care so that the other person does not misinterpret the meaning and assume the worst. In reality, most people say many things that were better left unsaid or were better stated in a different manner. In the context of good relationships, such communications are tolerated and forgiven, and mutual understanding is much more likely to be achieved. ( l Lack of Clarity. The way Person A encodes the message may not accurately reflect the message he or she wants to transmit. " No, that's not what I meant," frequently accompanies communication attempts. Failure lo consider how one's audience will perceive the message can result in unclear messages. Ambiguous language causes confusion, and jargon (technical language and acronyms as well as recog ni zed words with specialized meanings) is incomprehensibl e to outsiders and newcomers . Poor communicators mistakenly assume that their meaning is obvious to others. Individual Differences in Encoding and Decoding. The way Person A encodes messages and the way Person B decodes them is strongly related to their individual field of experience. Both encoding and decoding are heavily influenced by personal factors such as education, personality, socioeconomic level, family and child rearing, work history, culture, personal experience, and organizational role. This is one of the reasons that meaning lies in people, not in words. An "allnighter" means staying up all night to finish a paper or study for an exam to a college student; but to people over fifty, it can mean sleeping through the whole night without waking. A feminist decodes a male boss's reference to "you girls" differently than a more traditional older woman. The recently hired low-level employee interprets a memo from the company president differently than a vice president with years of knowledge about the players and organizational history. The most effective communicators are "receiver oriented" because they gear their messages to the receiver. They ask themselves, "If I were the receiver, how would this message strike me ? How would I interpret it?" Gender influences how we encode communication. According to research, JO women as a group are more concerned with connecting to others and maintaining the relationship with the person to whom they are speaking. Women focus on seeking and giving confirmation and support, and they are more likely to aim for consensus (cooperation). Men tend to be more concerned with status and trying lo achieve or maintain the upper hand in a conversation (dominance). When groups argue, women are more likely to ask questions and agree with others and less likely to challenge the views of others and frame their arguments. 11 These are style differences that reflect gender role stereotypes and how men and women are socialized. Although gender alone does not influence how messages are decoded or interpreted, it can certainly influence how messages are sent and encoded. 12 197 198 PART 2 CREATING EFFECTIVE WORK GROUPS For example, gender affects the way we transmit messages and converse. Communication experts usually interpret gender differences in conversation as a reflection of power differences between men and women. For example, men and people with higher status speak more than women and people of lower status, invalidating a common stereotype that women are always more talkative than men. In formal meetings, me n gain and keep "the floor" for more time, regardless of their status. Men are more likely to interrupt others who are talking, and women are interrupted more often than men. Women in powerful positions, however, sometimes interrupt others. Men are more likely to control the topic and redefine what women say ("What you mean is .. ."). Other characteristics of female communication are attributed to their lower power status. For example, women are more likely than men to soften their statements by the use of qualifiers such as "maybe, perhaps, sort of, I guess, kind of." When men use qualifiers, they are perceived as warm and polite; when women use qualifiers, they are perceived as weak and less assertive. Women are also more likely to use disclaimers that weaken their position ("I'm not really sure about this , but ... " "This probably doesn't mean anything, but ... "). Because women are socialized to be more polite than males, they tend to phrase orders more politely ("Please finish the report" as opposed to "Get that report done"). Women are also more likely to frame orders as questions ("Can you meet me at my office?" rather than "Come to my office"). Compared to men, women use more intensifiers, adverbs that exaggerate the strength of an expression ("I am so-0-0-0 hungry," "It was a very, very productive meeting"). As a result, female speech is sometimes perceived as overemotional in the workplace. 13 Perception. It is a fact of communication that people pay selective attention to the communication that comes their way and only hear some of the message. They may hear what they wish to hear or only hear messages that reinforce their own beliefs. Furthermore, people are likely to interpret messages they hear subjectively rather than objectively. Social perception is the name for this phenomenon, which will be explained in greater depth in the following chapter. Perception is another reason why meaning lies in people, not words. Perception is also culturally determined. Culture. Differences in cultural backgrounds that can be another barrier to achieving a shared experience and mutual understanding. The ability to speak another language fluently does not guarantee that one understands all the nuances involved in a particular context. Words can have different meanings in different languages, and some concepts are nonexistent. There is no word for "late" in the Navaho language since their time is not measured by the clock. 14 A Spanish proverb observes that " Mm1a11a is often the busiest day of the week." To a Spanish speaker, maiiana is an imprecise term meaning ''in the future" or "soon." This explains the confusion or frustration this causes for people from countries who define "tomorrow" as a precise term indicating the next 24 hours. Style differences also prevent people from accurately perceiving, analyzing, and decoding cross-cultural communication. People in collectivist cultures are more likely to encounter situations in which there is a preference for silence and high context, indirect, and self-effacing (modest) communication. The emphasis in collectivist cultures is to save face and not stand out (e.g., "The nail that sticks up is hammered down"). In contrast, individualists are more likely to encounter situations in which there is a preference for talkativeness, lowcontext, direct, and self-enhancing (bragging) communication. 15 High-context versus low-context cultures vary in the extent to which they use language itself to communicate the message . 16 Low-context communication, found in individualistic cultures such as Germany, Switzerland, and the United States, relies on explicit verbal messages to convey intention or meaning. E-mail messages are the ultimate example of low-context communication because the message consists only of words, devoid of any context. By contrast, in highcontext communication, found in collectivist cultures in Asia and Latin America, most of the inform ation is either contained in the physical context or internalized in the person. Very little information lies in the coded or explicit part of the message. Therefore, in high-context communication, the onus lies on listeners to "read" meaning into the message based on their understanding of the historical context, social norms, roles, situational and relational context. ( CHAPTER 8 ( INTERPERSONAL COMMUNICATION In low-context communication, the onus lies on the sender to craft and transmit a clear, explicit message that is easily decoded. Silence is perceived and used differently according to cultural norms. A comparative study of 16 countries found that Finns had the highest preference for silence and succinct communication.17 Silence plays an important role in high-context cultures in Southeast Asia, such as China, Japan, and Korea, where silence can indicate respect for someone with a higher status and careful consideration of the speaker's words. For traditional Chinese, silence is used as a social control, such as indicating their displeasure and disapproval of their children 's behavior. 18 Silence in Japan implies harmony rather than lack of understanding, disagreement, or having nothing to say, which members of more talkative cultures may wrongly assume. In multicultural teams, members of highly verbal communication cultures who do not perceive that silence conveys meaning tend to fill in pauses and silence; by doing so, they do not allow enough room for people with a more succinct style to interact. Direct versus indirect communication refers to the extent to which language and tone of voice reveals or hides the speaker's intent. Speakers using a direct style specify their intentions in a forthright manner, whereas speakers using the indirect style hide their meaning in nuances in their verbal statements. For example, if a Japanese neighbor compliments your piano playing, she may really be telling you to close your windows or not play when she is trying to sleep. To say that directly, however, would be impolite and involve a loss of face. The indirect style is generally found in Eastern and Middle Eastern cultures and most of Latin America, whereas the direct style is more common in Western cultures. A comparison of Hebrew, Canadian French, Argentinean Spanish, Australian English, and German speakers ranked them from most direct to least direct. The Argentinean Spanish speakers were the most direct, followed by the Hebrew speakers. The French Canadians and Germans were moderately direct, while the Australian English speakers were least direct of this group. 19 In multinational teams, it is not uncommon fix different nationalities to need time to adjust to vm·ying levels of direct and indirect speech. For example, Japanese members might be disconcerted if Israeli members of bluntly say, "You're wrong" or "Not true" in a business meeting. 20 In all cultures, there are specific contexts in which both direct and indirect styles are utilized . For example , people in the United States tend to be very direct. However, they are less so when communicating to people of higher status. The following dialogue was transcribed and excerpted from the black box tape of the Air Florida plane that crashed in the Potomac River just after taking off from Washington, DC's National Airport in January 1982. The pilot failed to use the engine anti-icing system during takeoff or to de-ice the plane a second time while waiting in line to take off in a winter storm. The ice that had accumulated on the engine pressure probes caused incorrect readings on the Engine Pressure Ratio gauge, leading the pilot to assume there was more takeoff thrust than there actually was. 21 The copilot was more experienced than the pilot when it came to flying in icy weather and was diplomatically trying to warn the pilot. 22 Copilot: Look how the ice is just hanging on his , ah , back, back there, see that? See all those icicles on the back there and everything? Pilot: Yeah. [The copilot also expressed concern about the long waiting time since de-icing.] Copilot: Boy, this is a, this is a losing battle here on trying to de-ice those things; it [gives] you a false feeling of security, that's all that does. [Just before they took off, the copilot expressed another concern-about abnormal instrument readings-but again, he didn ' t press the matter when it wasn't picked up by the pilot.] Copilot: That don't seem right, does it? [3-second pause] Ah, that's not right. WellPilot: Yes it is, there 's 80. Copilot: Now, I don't think that's right. [7-second pause] Ah, maybe it is. 199 200 PART 2 CREATING EFFECTIVE WORK GROUPS A few minutes later, the plane crashed, killing all but five people on board. A linguist who analyzes black box tapes from airplane accidents like this found that the ambiguous indirect style employed by copilots and navigators with pilots caused accidents. Subsequently, copilots were trained to be more assertive in their communication to pilots. The self-enhancement versus self-effacement style varies in terms of how one refers to one's effort or performance. The self-enhancement verbal style emphasizes the importance of boasting about or drawing attention to one's accomplishments and abilities. The self-effacement verbal style, on the other hand, emphasizes the importance of humbling oneself via verbal restraints, hesitations, modest talk, and the use of self-deprecation concerning one's effort or performance. Failures to establish shared meanings occur when people from self-enhancing cultures do not perceive the accomplishments and real worth of people from self-effacing cultures. Furthermore, employees from self-effacing cultures may find "selling themselves" to be hired or gain promotions in self-enhancing cultures very difficult. For example, a Chinese engineer working in a rural area in the United States was unhappy about being repeatedly overlooked for a promotion. An American coworker coached him, saying "Just tell the boss why you're the best person for the job and brag about all the good things you've done." The Chinese engineer couldn't bring himself to do this and opted instead to get a job at Intel, a firm that was relatively more crossculturally sensitive and relatively accustomed to working with Asians. Negative perceptions can also occur when the boastful mode of self-enhancers is not well received in self-effacing cultures . Collectivist (Asian) cultures are generally self-effacing while Arab and African-American cultures are generally self-enhancing. 23 Misinte1pretatio11 of Nonverbal Communication. Nonverbal communications convey important messages and are produced more automatically than words. They include body movements and gestures, facial expressions and facial gazing, tone of voice and the emphasis of certain words . Generally speaking, our nonverbal signals relate to the reeling level of the content we communicate. Even when words are used, more meaning is taken from nonverbal signals. Mehrabian and Weiner found that words account for only 7 percent of the meaning we make out of communications; 55 percent of the meaning comes from facial expressions and posture, while 38 percent comes from vocal intonations and intlection. 24 This means that managers who continue doing paperwork while their employees are trying to talk to them are severely handicapping the communication process. According to some researchers, as much as 70 percent of communication between people in the same language group is nonverbal. 25 Furthermore, it is possible that people rely even more heavily on nonverbal messages in cross-cultural communications. However, the same nonverbal behavior can have very different meanings across cultures, and the same meaning is conveyed by different nonverbal cues in different cultures. For example, in Samoa people sit down to show respect, whereas in many cultures they stand up. Showing the sole of one 's shoe in a Muslim society is a sign of great disrespect. Some common hand gestures in North America -repeatedly crooking the index finger with the palm up to beckon another person to come or the tip of the index finger to the tip of the thumb to signal "A-OK"- are obscene gestures in some cultures. Defensiveness. Defensiveness is one of the most common barriers to good communication. Once people become defensive, they have difficulty hearing or interpreting messages accurately-they are too caught up in protecting or justifying themselves. Defensiveness in communication is usually caused by the sender's poor communication skills or by the receiver's low self-concept. Carl Rogers, the famous psychologist, found that defensive communication in therapy sessions could be avoided by being descriptive rather than evaluative and by assuming an egalitarian rather than a superior stance.26 Gibb contributed four more ways to avoid provoking defensive communication: (I) assuming a problem-solving orientation rather than trying to control the situation and telling others what to do, (2) being spontaneous (authentic) rather than strategic (calculating), (3) showing empathy (feeling what others feel) rather than neu- CHAPTER 8 INTERPERSONAL COMMUNICATION ( trality (unfeeling), and (4) being provisional (open-minded) rather than certain (closeminded).27 An example of being certain rather than provisional is the manager who tears into employees when an error has been made before he or she has ascertained the facts of the situation. It's hard to repair the supervisor-employee relationship when this occurs because it signifies a lack of trust and respect ror the employee and an unwillingness to give employees the benefit of the doubt. The Communication Climate Inventory you filled out as part of the class preparation measures the behaviors that create defensive and nondefensive climates. Lack of Feedback and Clarification. Because the communication process is fraught with potential for distortion, the feedback aspect of communication is crucial. In this case, feedback refers to Person B's attempts to ensure that the message he or she decoded is what the sender really meant to convey. Asking for clarification and paraphrasing the sender's words ("Let me see if l have understood you correctly. Do you mean . . . ?" ) are feedback methods . Senders also can check to see if their message got across. Managers often ask employees to paraphrase instructions to see if they are clear. The purpose of communication is mutual understanding. Unless we check with people, we may mistakenly assume that communication occurred when it did not. Poor Listening Skills. The normal result of an allempt Lo communicate is a partial misunderstanding because of the uniqueness of senders and receivers and the absence of a shared field of understanding. Clarifying the message and active listening are ways to avoid communication failures. When communication does break down, people often waste time and energy trying to determine who is al fault, which provokes a defensive reaction that rurther inhibits mutual understanding. However, if we accept misunderstandings as a basic reality of communication, we can stop looking for blame and start seeking better ways to communicate. A more effective response to breakdowns is, " How can we arrive at a level of mutual understanding that will allow us to accomplish our objectives?" and " How can we prevent a breakdown like this from happening again?" ( RESPONDING STYLES Our responses to communications set the stage for subsequent communication and impact our relationship with the speaker. Most of our response styles (80 percent, according to some experts) fall into five categories: 1. Evaluative " What a great report!" "That idea will never work." An evaluative response indicates that the listener has made a judgment of the relative goodness, appropriateness, effectiveness, or rightness of the speaker's statement or problem. Such responses reflect either a positive or negative assessment. With this type of response, the listener implies what the sender should do. 2. Interpretive " You're just saying that because you lost the account." The interpretive response indicates that the listener's intent is to teach, lo tell the sender what his or her statement or problem really means, and how the sender really feels about the situation. With this type of response, the listener implies what the sender should think. 3. Supportive "Don't worry, it' II work out." A supportive response indicates that the listener's intent is to reassure, to pacify, and to reduce the sender's intensity of feeling. The listener in some way implies that the sender need not feel as he or she does. 4. Probing "Why do you think you're going to be fired?" A probing response is a response that indicates that the listener's intent is to seek further information, provoke further discussion along a certain line, and question the sender. With this response, a listener implies that the sender needs to develop or discuss a point further. 5. Understanding "So, you think your job's on the line and you 're pretty upset about it?" An understanding response indicates that the listener's intent is only to ask the sender whether the listener correctly understands what the sender is saying, how the sender feels about the problem , and how the sender sees the problem . With this response , the listener implies nothing but concern that the sender's message is accurately received . 201 202 PART 2 CREATING EFFECTIVE WORK GROUPS Our natural tendency as listeners is to evaluate and judge what others say to us . The most common responses are evaluative, even though they are not always the most effective type of response to employ. Groups seeking creative solutions or resolution to a conflict are two examples of situations in which evaluative responses are clearly counterproductive. These response styles communicate not only words but a message about the relationship between the two communicators. With the first four response styles, the responders put themselves in a one-up position in relation to the speaker. When we evaluate others, we assume the one-up position of a judge. The same is true when we interpret what others have said (as if we know best) or try to pacify them (as if they were children who shouldn't feel as they do), and even to some degree when we probe (as if they have not thought everything through) . In contrast, the understanding response communicates that listeners have positioned themselves on the same level as the speaker, an egal itarian approach . This is the type of response that is used in active listening, which is explained later in the chapter. None of the responses described are appropriate for all situations. No response style can be said to be innately good or bad, but there are times when a certain type of response would be more appropriate or effective than another. A good communicator is aware of the type of response that is called for in each situation . ASSERTIVENESS Communication that is perceived as overly aggressive can provoke a defensive reaction. An assertive style, neither too aggressive nor too passive, is most likely to produce the desired results when we need to stand up for ourselves, express honest feelings, or exercise our rights. Assertiveness is the ability to communicate clearly and directly what you need or want from another person in a way that does not deny or infringe upon the other's rights. New supervisors often have difficulty finding the right balance in the nonassertive-assertiveaggressive continuum. Exhibit 8-2 provides a helpful description of the differences among these three styles. One characteristic of an assertive style is the use of I-statements, which are described in the following paragraph. An I-statement is a feedback format designed to produce dialogue rather than defensiveness. I-statements have three components: (I) a specific and non blaming description of the behavior exhibited by the other person, (2) the concrete effects of that behavior, and (3) the speaker's feelings about the behavior. Note that in the following examples of I-statements, they begin with "When you ... " Behavior Effects Feelings When you come late to our project meetings, we have to use valuable time bringing you up-to-date, and others end up doing your share of the work, and I resent that. When you interrupt me, I lose my train of thought and don't get to make my point, and that makes me angry. I-statements differ from you-statements, such as "You are lazy and irresponsible," "You never pull your weight around here," or "You're rude and inconsiderate." More often than not, you-statements provoke a defensive response and an argument. I-statements are more likely to encourage an open dialogue because they are descriptive rather than evaluative, and they focus on communicating the speaker's feelings and needs to the other person. In some cases, simply becoming aware of the effects of one's behavior and the feelings it provokes is enough to make people change negative behaviors. ( CHAPTER 8 INTERPERSONAL COMMUNICATION 203 Non assertive (No Influence) Assertive (Positive Influence) Aggressive (Negative Influence) Verbal Apologetic words. Veiled meanings. Hedging; failure to come to the point. Rambling; disconnected. At a loss for words. Failure to say what you really mean. Qualifying statements with "I mean," "you know." Statement of wants. Honest statement of feelings. Objective works. Direct statements, which say what you mean. "I-statements." "Loaded" words. Accusations. Descriptive, subjective terms. Imperious, superior words. "You" statements that blame or label. Nonverbal General demeanor Actions instead of words, hoping someone will guess what you want. Looking as if you don't mean what you say. Attentive listening behavior. Generally assured manner, communicating caring and strength. Exaggerated show of strength. Flippant, sarcastic style. Air of superiority. Voice Weak, hesitant, soft, sometimes wavering . Firm, warm, well modulated, relaxed. Tensed, shrill, loud, shaky; cold, "deadly quiet," demanding; superior, authoritarian. Eyes Averted, downcast, teary, pleading. Open, frank, direct. Eye contact, but not staring. Expressionless, narrowed, cold, staring; not really "seeing" others. Stance and posture Leaning for support, stooped, excessive head nodding . Well balanced, straight on, erect, relaxed. Hands on hips, feet apart. Stiff, rigid. Rude, imperious. Hands Fidgety, fluttery, clammy. Relaxed motions. Clenched. Abrupt gestures, fingerpointing, fist pounding. ( ( EXHIBIT 8-2 A Comparison of Nonassertive, Assertive, and Aggressive Communication Source: Ma.Hering Asseniveuess Skills: !'ml'er aud lu/l11euce lit Work. ID 1983 Elaina Zuker. Published by AM ACOM . a divi s ion or the American Manage ment Association . All rights reser\'ed . Reprinted with permission or the publisher. LATIN AMERICAN COMMUNICATION PATTERNS Each culture has specific, learned communication patterns that must be deciphered for real understanding to occur. Unfortunately, we often make incorrect interpretations and negative attributions about cultural differences in communication. Although there are country differences in communication within Latin America, the following list summarizes the general characteristics of Latin American and Latino patterns of communication. 28 • Emphasis on politeness and warm interpersonal relationships • Use of indirect language in most countries to maintain harmonious social relations • Use of affective style (process oriented and receiver focused), which avoids putting people in uncomfortable situations and relies more on nonverbal and intuitive meaning • Use of the elaborate style, which involves a relatively high quantity of talk, great detail , repetition , and colorful language • Value given to eloquence and expressive use of language • Communication is high context, which means people convey more meaning through gestures, nonverbal communication, and reading between the lines and are less explicit than North Americans and Northern Europeans • Frequent use of gestures • Close proximity between people in face-to-face encounters • Frequent touching, which is done in specific ways for specific occasions and relationships 204 PART 2 CREATING EFFECTIVE WORK GROUPS • Preference given to personal, face-to-face communication over impersonal methods • Respect may be shown to teachers by breaking eye contact and lowering the eyes Based on this list, it is easy to see why people from this region may perceive the speech patterns of North Americans as too direct, too blunt, and too plain. COMMUNICATION VIA ELECTRONIC MEDIA More and more work communication takes place, not face-to-face, but via e-mail, teleconferencing, conference calls, and computer-mediated communication. The average U.S. employee devotes more than l 3/4 hours to e-mail daily. 29 Over half of the 1,200 managers in another study spent at least two hours on e-mail at work ; plus 30 percent of them spent yet another hour on work-related e-mail at home.30 Some individuals and firms have learned the hard way that anything written on e-mail can come back to haunt to them; e-mail does not disappear when it is deleted and can be subpoenaed in lawsuits. In an ethics and e-mail scandal, Merrill Lynch was fined $100 million when its analysts belittled stocks in e-mails that they were publicly promoting to customers.31 Communication channels are described as either rich or lean. Rich communication, such as face-to-face communication, involves multiple channels-verbal, visual, nonverbal, and emotional. lean communication involves limited channels-language alone, with the possible addition of "emoticons" (e.g.,@). For this reason, e-mail messages are more likely to be misinterpreted because there are fewer cues to observe. Intended or unintended insults in e-mails, called flaming, are more likely when people feel less constrained about being rude online than they would face-to-face .32 Certain channels are more appropriate for some work processes than others. For example, studies of student project teams found that e-mail was effective in generating ideas, brainstorming, planning, and scheduling. 33 It was less effective when teams had to make decisions and choices, resolve conflicts and motivation problems, and execute at a high level of performance. Although experienced employees are more skilled at working virtually, some situations still require rich channels. Face-to-face meetings are better than e-mail for establishing relationships and trust. Once people have formed relationships, e-mail is an effective channel for maintaining them, but it is not appropriate for situations that require active listening. ACTIVE LISTENING When executives are asked to rank the communication skills they find most critical to their success on the job, they consistently place listening at the top of the list. 34 Executives spend 45 to 65 percent of their day listening, and this skill is related to higher performance, increased job satisfaction, and improved interpersonal relationships.35 There are several filters that affect listening such as attitudes, biases, values, previous experiences, organizational roles (e.g., paying closer attention to what superiors say than to subordinates), poor listening skills, and lack of fluency in another language. These filters are minimized in active listening because people do not sit quietly like a bump on a log simply waiting for the other person to finish speaking. Instead, the listener takes personal responsibility to ensure that the messages sent are accurately received. If any distortions are uncovered, they are clarified before proceeding with the conversation. Humans have a physiological excuse for being less than excellent listeners. The rate of speech is I 00 to 150 words per minute, whereas our brains are capable of thinking at a rate of 400 to 500 words per minute. People often use this slack time to daydream, to judge what the sender is saying, or to prepare what they want to say next. In contrast, active listeners use this slack time to concentrate fully on the sender's message. Active listening involves a greater level of attending to the speaker. The skills of active listening are demanding, but they can be learned using the guidelines in the paragraphs that follow. 36 Some of the behaviors suggested may seem awkward and forced at first, but with practice they will feel more natural. It is difficult to respond with patience, understanding, and empathy when the other person is expressing ideas that strike you as illogical, selfdeceiving, or even morally wrong. However, the behaviors suggested will , if practiced faithfully, CHAPTER 8 ( INTERPERSONAL COMMUNICATION generate attitudes of tolerance and understanding that will make empathy and nonevaluative acceptance of the other person come more easily. Active listening includes a variety of verbal and nonverbal behaviors that communicate to the speaker that he or she is heard and understood, that the feelings that underlie the words are appreciated and accepted, that regardless of what the individual says or thinks or feels, he or she is accepted as a person by the listener. The object is to communicate that whatever the qualities of the ideas, events, attitudes, and values of the person who is talking, the listener does not evaluate the person or his or her ideas or feelings . The listener accepts the person for what he or she is without making judgments of right or wrong, good or bad, logical or illogical. When we paraphrase the content, we put what the speaker has said in our own words and repeat it to the speaker to test whether we have understood correctly. The content includes both the thoughts and feelings manifesteu by the speaker. These phrases are used in paraphrasing. As I understand it, what you 're saying is ... Do you mean that . . . ? So yourfeeling is that ... If I try to summarize what you've said .. . ( The key to paraphrasing is listening intently to what the other party is saying. If we spend the time when the other is talking thinking of what we are going to say next, or making mental evaluations and critical comments , we are likely not to hear enough of it to paraphrase it accurately. The emphasis at this level is comprehending the stated or manifest content, that which is explicitly communicated verbally and/or nonverbally. The more indirect the content, the more important are the next two active listening skills. This requires going a bit beyond the manifest content of what the other is saying and indicating to the speaker your appreciation of where the content is leading . It may take the form of building on or extending the ideas of the speaker, using such phrases as I guess if you did that, you'd then be in a position to ... So that might lead to a situation in which ... Would that mean that ... ? Are you suggesting that we 1night .. . ? Would that help with the problem of ... ? It is important in reflecting the implications to leave the speaker in control of the discussion. When this technique is used to change the direction of the speaker's thinking or to show how much more clever the listener is by suggesting ideas the speaker has not thought of, it ceases to build trust and becomes a kind of skillful one-upmanship. When , however, this technique is genuinely used to help the speaker, it communicates very strongly that the listener has really heard and understood the drift of his or her thinking. '/ ~ nc··.. : .} This technique goes still farther beyonu the overt feelings content of what is said and brings into the open some of the underlying feelings, attitudes, beliefs , or values that may be influencing the speaker to talk in this way. One tries to empathize, to put oneself in the place of the speaker, to 205 206 PART 2 CREATING EFFECTIVE WORK GROUPS experience how it must feel to be in his or her situation. Then the listener tentatively expresses the feelings , using such phrases as How does that make you feel? If that happened to me, I'd be upset. Are you? Times when I've been in that sort of situation, I've really felt I could use some help. It sounds like you 're proud of achieving that. Is that right? It looks like you feel ve1y strongly about this. In reflecting the underlying feelings, delicacy is required so as not to overexpose the speaker or press him to admit to more than he would like to reveal. It is also important to avoid suggesting to the speaker that the feeling you reflect back is what she ought to feel in such a situation. This would tend to make the speaker feel evaluated, when what you are trying to do is to communicate acceptance of the underlying feelings. Often acceptance is communicated more by the manner and Lone of the listener than by the words used. When listeners haven ' t heard or understood enough yet to follow up with indications of understanding, empathy, and acceptance, they can communicate interest in hearing more. Phrases such as the following are useful. Tell me a bit more about that. Help me understand .. . What happened then? This differs from the probing response style described earlier because these questions arc motivated solely by a desire to clearly understand what the speaker is trying to communicate. Specific requests for information may constitute a unilateral demand for openness on the part of the speaker. To maintain balance, questions should not be used exclusively but should be followed after a bit by rephrasing or reflecting . Generally, open-ended questions create a more supportive, trusting climate than do pointed questions fired in machine gun-like fashion . Active listening is often communicated as much by one 's posture and nonverbal movements as it is by what one says. Nonverbal listening responses may vary from one culture to another. In the United States, these responses communicate interest and understanding: consistent eye contact, open body posture, leaning toward the speaker, head nodding, and receptive signals such as "umhum." African Americans use less eye contact than whites.37 In some cultures, lower status individuals make less eye contact. When implemented in a climate of genuine concern and acceptance, the active listening skills described in this section help both parties understand as fully as possible the thoughts and the feelings in an interpersonal exchange. If, however, the listener is not being authentic-is not genuinely curious and caring-active listening will be perceived as just another technique to manipulate people . .f. The purpose of this exercise is to provide you with an opportunity to practice and receive feedback on your active listening skills. You will also have a chance to observe others and give them feedback on their active listening. (Time allotted: 45 minutes) ( CHAPTER 8 STEP l . ( INTERPERSONAL COMMUNICATION Form groups of four and prepare for the role plays. In this exercise , everyone should have an opportunity to perform each role: expresser, active listener (or consultant), and observer. (5 minutes) a. An expresser gets a chance to enhance his or her ability to express thoughts and feelings in a congruent, clear manner. b. An active listener paraphrases what the expresser states and practices all the components of active listening. It is critical that active listeners resist the temptation to give advice or try to solve the problem for the expresser. c. The two observers watch the interactions silently, use the observer sheet on page 210, and provide feedback afterward. Participants can either choose a current topic that is controversial or one of the scenarios described on the following pages. Controversial Topics. As a class, brainstorm a list of controversial topics to be written on the board. The first Expresser and Active Listener pair quickly choose a topic from the list. Expressers will give their opinion on the topic while the Active Listeners listen, without giving their own opinion or debating the issue. The interaction should last about 5 minutes until the Expresser feels the Active Listener really understands his or her position . Meanwhile, the observers watch. Then the Expresser and Active Listener switch roles, while the observers continue watching . After this second interchange , the observers give their feedback. Then the two observers quickly choose a topic and repeat the sequence described above. ( Scenarios. Two people volunteer to be the first Expresser and Consultant pair, and the Expresser quickly chooses a scenario Lo use. For each scenario there will be (I) a stagesetting statement, (2) a scripted set of words to start the interaction, and (3) a suggested set of feeling states. The scenarios range from easy to hard as determined by the range and intensity of feelings associated with the scenario. Here's an example. 1. Setting the stage You are speaking with an outside consultant, brought in by your boss. The consultant has just delivered a copy of his or her final report. 2. Script I want to know why I wasn't consulted on that report! You were researching my territory and the decision will impact my people. 3. Suggested feeling states Bothered, insulted, left out, angry. The roles needed in this scenario would be: Consultant The Active Listener • • l ~ The Expresser The Expresser should pick a scenario that seems real to you (i.e. , you have been or could imagine yourself actually being in that situation) and involves some suggested feeling states you would like to practice expressing that will stretch you but not immobilize you. ·'You" (the Expresser) would communicate the first line as scripted, for example, "I want to know why ... " In so doing, you would try lo express some or all of the suggested feeling states (insulted , left out, etc.). The "Consultant" would practice 207 208 PART 2 CREATING EFFECTIVE WORK GROUPS • the active listening skills described in The Knowledge Base. "Observers" would watch the interaction carefully and critique it using the Observer Sheet. As the "Consultant" (in the scenario) actively listens, "you" would carry on and add to the conversation in a manner consistent with the thoughts and feelings reflected in the original scripted opening. Refrain from giving your opinion or gratuitous advice. Carry on the communication at least five minutes. Although this is meant to be a play-acting situation, it is also intended to be a serious opportunity to develop your interpersonal communication skills as both expressers and active listeners. STEP 2. Role plays (10 lo 15 minutes each round) Each role play should consist of: a. 5 lo 8 minutes conducting the role-play scenario. b. 8 Lo I 0 minutes of feedback discussion initiated by the observers and then expanded by the expresser and the active listener. During the feedback discussion, people should try to link insights gained from playing the different roles. For example, as an expresser, I may find out that I am more likely to give off mixed or confusing messages around high-intensity negative feelings than anything else. As the active listener, I may find that I am less likely to hear and pick up on high-intensity positive feelings. 1. Setting the stage You are speaking with an outside consultant, brought in by your boss. The consultant has just delivered a copy of his or her final report. Script I want to know why I wasn't consulted on that report! You were researching my territory and the decision will impact my people. Suggested feeling states Bothered, insulted, left out, angry. 2. Setting the stage You and a colleague are talking in your office. You arc about to tell your colleague about an interaction you had with Ana, corporate vice president. Script After the meeting, I was walking down the hall, and Ana stopped me and said, "You did a really great job on that account!" (smiling) I thought so, too! Suggested feeling states Proud, happy, contented, a sense of accomplishment. 3. Setting the stage You are reporting to the boss on the status of your group. You know that in the boss 's opinion the group just has not been pulling its weight. Script We finally had a breakthrough in that contract. After all the hours I spent researching the market, I finally got an idea that the client liked (longish sigh). For a while, I thought that the group would lose another one. Suggested feeling states Relieved, good, accomplished, productive, uncertain, scared. 4. Setting the stage You are a secretary whose boss feels that you have more promise and can utilize your talents better and move ahead. You are about lo speak to your boss. Script Last week, you mentioned that I could read those articles and compose an annotated bibliography. I know that you want to make my job more interesting. Maybe you even think that I'm bored. But, really, I just don't want to be challenged any more. I guess that I like things as they are. Suggested feeling states Embarrassed, scared, resentful, frustrated. 5. Setting the stage You have just been offered a middle-management position of considerable prestige. You are talking to your boss about it. Script Frankly, I'm just not sure whether or not to accept the promotion. I should be overjoyed with the opportunity. It's a chance to influence some policy. Most people around here don't understand why I haven't left already. But parts of the job I have are very exciting. Marketing is always a challenge. So I just don't know. CHAPTER 8 INTERPERSONAL COMMUNICATION Suggested feeling states Ambivalent, uncertain , frustrated, unfulfilled, afraid of success and/or failure . ( 6. Setting the stage You are the first and only female member of your audit team. You had hoped the marked increase in travel would not be a problem because you love the work and do it very well. You are talking to your boss. Script I know I said I would have no problem with the travel aspects of the job. I thought I would enjoy it. But I find that two to three weeks is too long. I'm not really happy when I'm traveling, and my husband and children are complaining. Suggested feeling states Dissatisfied, concerned , uncomfortable, worried , nervous. 7. Setting the stage You have just had an interaction with the division head, Ms . Sanchez, who is your boss 's boss. You are now telling your boss about it. Script What was I going to say to her anyway ? Ms . Sanchez-the division head!-pats me on the back and tells me how concerned she is for my image. I knew this place was pretty straight, but that's the most ridiculous thing that I ever heard-that I can't have my own painting in my office. Why does everything here have to be designer perfect? Suggested feeling states Adamant , determined , angry, resistant, feeling pressured to fit into a mold. 8. Setting the stage You and your boss have a lot of trouble agreeing on how things should be done and on priorities. Here we go again! Script No! This is not a smoke screen for something else! Look, I really don't understand why I have to analyze the reports that way. I want to do an excellent job and I will. However, I'd like a little latitude in bringing some of my ideas into action. Suggested feeling states Annoyed, confused, frustrated, unchallenged. 9. Setting the stage Given the problems you and your spouse have been having, it has been amazing to you that you ' ve been able to function at all. Your boss has just called you in and read you the riot act. Script Don't you think that I know that my work has been poor? Holy smokes , nobody is cooperating around here. I just. .. look . . . so I haven't been too pleasant. But I'm doing the best I can under the circumstances. Suggested feeling states Exasperated, strung out, as if the " bottom has dropped out," tense, as if you have to keep up a front. 10. Setting the stage Your longtime friend and colleague, Abdel, has come to chat about his future career plans and long-term growth with the company. Your own career has been very much on your mind for months, so you almost interrupt Abdel in midstream . Script Abdel , you sound like I did about 15 years ago. I'm 50 years old. I'm one of, maybe, a hundred middle managers. I've been working my tail off to become a CEO. Nothing was more important to me than my career. Yeah, I'm good , but my wife and kids-they ' re strangers to me-and I'm not going to become a CEO. Look at the years I wasted working for a goal I ' ll never reach . Suggested feeling states Regret, frustration, bitterness. STEP 3. Class Discussion ( 15 minutes) Answer the following questions : a. b. c. d. What was it like to practice active listening? What did you learn about yourself and others by doing this exercise? When should you use active listening? When would it be a mistake to use active listening? 209 210 PART 2 CREATING EFFECTIVE WORK GROUPS OBSERVER SHEET Your role is an important one. You should silently observe the interaction and note specific exampies of effective and ineffective communication as you see them. These data will be important in the feedback discussion . Active Listening Behaviors Examples Where It Was Effectively Used by the Active Listener ( Places Where It Could Have Been Used But Wasn't and/or Was Used Ineffectively* l . Being nonevaluative 2. Paraphrasing the content 3. Reflecting possible implications 4. Reflecting the underlying feelings 5 . Inviting further contributions 6 . Using nonverbal listening responses * The observations you note in this column will give you the chance to provide feedback to both the listener and to the expresser: ( l) thoughts and feelings you heard expressed that the listener did not hear or pick up on and (2) mixed messages you observed being expressed (incongruence between words and nonverbal communication). (_ CHAPTER 8 INTERPERSONAL COMMUNICATION ( 1. Communication is a major portion of a manager 's job and an essential skill for anyone working in business. 2. Communica tion is the process by which information is exchanged between communicators with the goal of achieving mutual understanding. 3. The transactional model of communication consists of two communicators who participate equally from their own personal context or field of experience. To communicate, they must find a shared field of experience. Over time, the nature of their communication may change as well as their fields of experience. Noise can interfere with their intended communication. 4. The arc of distortion is the difference between what the sender intended to communicate and what the receiver understood the message to be. 5. There is much potential for distortion in the communication process. Therefore, it's best to assume that any communication can also involve a partial misunderstanding. Active listening, requesting clarification, and checking meaning with feedback are ways to ensure that the message received is the intended message . 6. Potential barriers to communication include: poor relationships, lack of clarity, individual differences in encoding and decoding, gender differences, perception, culture, misinterpretation of nonverbal communication, defensiveness, lack of feedback and clarification, and poor listening skills. 7. Meaning lies in people, not in words. 8. The most effective communicators are receiver-oriented because they take the perspective of the receivers and customize messages for them. 9. Men and women communicate in different ways, primarily because of societal socialization and status. 10. Common style differences in intercultural communication are : high-context versus lowcontext, direct versus indirect, and self-enhancement versus self-effacement. Cultures also use and interpret silence and nonverbal gestures in different ways. 11. More meaning is taken from ( 1) facial expressions and posture and (2) vocal intonation and intlection than from words themselves. 12. Defensiveness is a common barrier to communication because the energy devoted to defending oneself prevents attention to the message. 13. A nondefensive climate is created when people are descriptive, egalitarian , focused on problem solving, spontaneous, empathic, and provisional. 14. Five common response styles are: evaluative , interpretive, supportive, probing, and understanding. Evaluative responses are most common. These styles also contain a message about the relationship between the [wo parties. Only the understanding response reflects an egalitarian stance rather than a one-up position . 15. Assertiveness is the ability to communicate clearly and directly what you need or want from another person in a way that does not deny or infringe upon the other's rights. 16. I-statements (behavior, effects, feelings) are an effective way to provide feedback to others. 17. Communication channels can be rich (multiple channels) or lean (limited channels). 18. The components of active listening are: a. Being nonevaluative b. Paraphrasing the content c. Reflecting implications d. Reflecting underlying feelings e. Inviting further contributions f. Using nonverbal listening responses 211 212 PART 2 CREATING EFFECTIVE WORK GROUPS FOR EMPLOYEES • Expert communicators can distinguish between their thoughts and their feelings. They manage their emotion so that feelings do not unintentionally seep into the discussion and negatively influence communication. An example of a novice communicator would be the team member whose feelings have been hurt by a thoughtless remark who then vociferously attacks the group plan-not because he really thinks it's a bad plan, but because he is experiencing an emotional hijack. • Effective communicators pay close attention to nonverbal clues when others communicate and make sure their own nonverbal communication conveys what they intend. To be congruent and consistent, both the verbal and nonverbal signals they send accurately reflect their thoughts and/or feelings. • They understand that self-concept serves as a filter through which we see all communication . People with low self-concepts present the greatest communication challenge because they can become defensive with little or no provocation. The specific content of the message is less important than what you are communicating to them about your relationship with them ; if it's anything Jess than fully supportive, they become defensive. • Expert communicators seamlessly move in and out of active listening and can quickly identify when it should be used. Conflict situations, personal problems, customer complaints, performance appraisals, instruction-giving are all situations that benefit from active listening. It's difficult to maintain anger when the listener is making a concerted effort to understand both your point and your feelings . • They learn to decipher and acknowledge the differences when communicating with people from a different culture, region, or gender without evaluating them. • Experts can readily adapt their own communication style to match styles from different cultures or subcultures, which is called code-switching. • Novices are more likely to misconstrue or overinterperet ambiguous e-mail messages. 38 • Expert communicators use the appropriate channel for the message they need lo convey. For example, they do not address sensitive issues on e-mail. • In particular, they do not engage in arguments over e-mail. Such conflicts tend to escalate, and it is easy to misinterpret what has been written . Unlike face-to-face arguments, e-mail allows no opportunities to rephrase, soften one's statements, or change one's mind. • Expert communicators understand that it is difficult to make amends for mistakes once words have been uttered and e-mail messages have been sent. Therefore, they think very carefully before talking and revise their e-mails repeatedly until they say exactly what they mean. • They do not send unnecessary, unimportant e-mails that waste time, nor do they copy everyone on e-mails that only need to go to one person. FOR MANAGERS • Managers who are effective communicators do the following: • Give other people confirmation or validation by acknowledging their presence and indicating acceptance of them and their ideas. • Do not exclude others or resort to in-group talk. • Avoid talking about themselves too much, do not "monologue," and try to listen as much as they talk. • Avoid both excessive criticism and undeserved praise in favor of honest appraisals given in a gentle manner. • Use language that neither offends nor demeans other people. 39 • Expert managers take for granted that communication is a flawed process and try to eliminate as many pitfalls as possible. They paraphrase for employees the problems or requests that they receive (i .e., "Let me see if I've understood the problem correctly"). CHAPTER 8 ( INTERPERSONAL COMMUNICATION • To give instructions that get followed, effective leaders explain to followers their intent and do not overload them with too much detail. If leaders always use the same format, shown below, followers can more readily grasp what the leader wants and ask enough questions to figure out what they should do if the situation unexpectedly but probably inevitably changes. Karl Weick recommends using this format: 40 • Here 's what I think we face • Here 's what I think we should do • Here's why • Here 's what we should keep our eye on • Now, talk to me • Before they communicate at work, experts ask themselves the following questions: What do I want to accomplish as a result of this communication? Based on my knowledge of the receiver(s), how should I word this message and how should I transmit it? Am I the best person to communicate this message or does someone else have greater credibility or a better relationship with them? Will there be any likely resistance to the message that I need to take into consideration? • Communication is a learned behavior, which means that people usually send messages that maximize rewards and minimize punishment. Managers who are expert at communication do not "kill the messenger" no matter how unpleasant the news. They know that bad news can be crucial to the organization's survival because it represents an opportunity to change course . • Some managers deplore the power of the grapevine, the informal communication network, but all organizations have grapevines. Expert communicators use the grapev ine for their own purposes, such as floating trial balloons to see how people reac t. The power of the grapevine can be decreased by more open sharing of information through formal channels. In a bureaucracy, information is often synonymous with power. Providing greater access to information means that employees will devote less energy to hoarding it or ferreting it out. • Managers who are expert communicators make a concerted effort to seek information from employees at all levels. For senior managers, it is not always enough to talk only with the layer of people immediately beneath them because this group may have a vested interest in presenting only positive information or self-serving interpretations of situations. This is why the concept of " managing by walking around'' is so important. • Expert managers communicate enough so that others feel like they are in the loop and understand what their leaders are doing. FOR ORGANIZATIONAL ARCHITECTS I "'-· • Because communication is such an important skill, skilled organizational designers and architects use it as a selection criterion in the hiring process. This not only saves money on training but helps to cut down on miscommunication errors. • Even though new hires may bring good communication skills with them , different forms of communication training are needed for different levels of employees. Intercultural communication training, for example, is in greater demand as a result of the increasing numbers of multinational teams and global business ventures. • Organizational architects concerned about good communication take steps to remove filters that keep communication from spreading up or down the hierarchy or across functional boundaries. They have mechanisms by which employees can communicate freely to top management (e.g. , suggestion boxes, open door policies, e-mail access to the boss, informal meetings with the boss, etc.). • Some organizational designers set communication norms (such as Intel's constructive confrontation , which is described in Chapter 13) that they believe will enhance their success and develop protocols for how they want employees to communicate. For example, GE encourages its employee to be blunt and brusque, especially in superior/subordinate communications to promote questioning assumptions, critical analysis of decisions, and accurate, candid communication. 41 213 214 PART 2 CREATING EFFECTIVE WORK GROUPS ( At the beginning of this chapter, you filled out an inventory in which you evaluated the type of communication climate your supervisor established. That question was based on Gibb's characteristics of defensive communication. This assignment is to gain insight into the type of communication climate you create. Choose one of the following ways to begin this assignment. 1. If you supervise employees, ask three of them to fill out a copy of the same questionnaire anonymously. If you're surprised at the results, discuss them and ask for clarification or examples from someone in your organization who you know will give you good, honest feedback. Take into consideration that your employees may be uncertain (or even terrified) about how you will accept feedback on your communication habits. Make sure they don't have to pay a price for their honesty. 2. Have a discussion on a controversial topic with someone (preferably someone with strong views that are different from your own so you can test out the skills you practiced in this chapter). Try to create a supportive climate according to Gibb's framework . Afterward, evaluate the conversation. If it's possible, get the other person's evaluation of the conversation. After you've completed (I) or (2), write up the experience in the usual format. A. Concrete Experience 1. Objectively describe the experience (who, what, when, where, how). (2 points) 2. Subjectively describe your feelings , perceptions, and thoughts that occurred during (not after) the experience. What did others seem to be feeling? (2 points) B. Reflective Observation 1. Looking back at the experience, what were the perspectives of the key actors (including you)? (2 points) 2. Why did the people involved (including you) behave as they did? (2 points) CHAPTER 8 ( INTERPERSONAL COMMUNICATION C. Abstract Conceptualization 1. Relate concepts or theories from the assigned readings or the lecture to the experience. Explain thoroughly how they apply to your experience. Please apply at least two concepts or theories and cite them correctly. (4 points) D. Active Experimentation 1. What did you learn about communication from this experience? (I point) 2. What did you learn about yourself? (I point) ( 3. What action steps will you take to be more effective in the future? (2 points) E. Integration, Synthesis, and Writing 1. Did you integrate and synthesize the four sections? (I point) 2. Was the Personal Application Assignment well written and easy to understand? (I point) 3. Was it free of spelling and grammar errors? (2 points) l 215 216 PART 2 CREATING EFFECTIVE WORK GROUPS ENDNOTES 1 These examples come from S. Crainer and D. Dearlove, "Making Yourself Understood,'' Across the Board 41(3) (May/June 2004): 26. 2 J. D. Maes, T. G. Weldy, and M. L. Icenogle. "A Managerial Perspective: Oral Communication Competency Is Most Important for Business Students in the Workplace," The Journal of Business Communication 34( I) ( 1997): 67-8 I. "What Corporate Recruiters Say,'' Graduate Management Admission Council Survey (2004). http://www.mba.com/ mba/ AssessCareersAndTheM BA/The Val ueo ftheM BA/The MBAlnTheMarketplace/WhatCorporateRecruitersSay.htm. Accessed 11/2/05; K. R. Kane, "MBA: A Recruiter's-Eye View," Business Horizons 36 ( 1993): 65-68. 3 4 K. Sandholz. "Do You Have What It Takes?," Managing Your Career (Fall 1987): I 0. 5 H. Mintzberg. The Nature of Managerial Work (New York: Harper & Row, 1973). 6 Ibid: 171. 1 J. T. Wood, Communication in Our Lives (New York: Wadsworth. 1997). 8 H. Baumgartel, W. N. Bennis, and N. R. De (eds.), Readings in Group Development for Managers and Trainers (New York: Asia Publishing House. 1967): 151-156. 9 S. R. Covey, The 7 Habits of Higlily Ejfectii•e People (New York: Simon and Schuster, 1989): I 88-202. 10 D. N. Maltz and R. A. Barker, "A Cultural Approach to Male-Female Miscommunication," in J. J. Gumperz (ed.), Language and Social Identity (Cambridge: Cambridge University Press. 1982): 196-216; D. Tannen, You Just Don't Understand: Women and Men in Conversation (New York: Ballantine. 1990) and Talking from 9 to 5 (New York: William Morrow, 1994); R. A. Meyers. D. E. Brashers, L. Winston. and L. Grob , "Sex Differences and Group Argument: A Theoretical Framework and Empirical Investigation," Communication Studies 48 (I 997): 19-41. 11 Meyers, Brashers. Winston, and Grob, "Sex Differences and Group Argument." 12 R. Edwards and M. A. Hamilton, "You Need to Understand My Gender Role: An Empirical Test ofTannen 's Model of Gender and Communication," Sex Roles 50 (7/8) (April 2004): 491-504. 13 The findings in this paragraph are reported in L. P. Arliss, Gender Communication (Upper Saddle River, NJ: Prentice Hall, 1991); J.C. Pearson, "Language Usage of Women and Men, " in J. Stewart's Bridges Not Walls (New York: Random House. 1986): 283-300; and D. Borisoff and L. Merrill, The Power to Communicate: Gender Differences as Barriers (Prospect Heights, IL: Waveland Press. 1992). 14 E. Hall, The Silent Language (New York: Doubleday and Co .. 1959). ( 15 S. Ting-Toomey, Communicating Across Cultures (New York: The Guilford Press, 1999): 103. This section on cultural communication styles is drawn from Ting-Toomey's work. 16 The high- and low-context communication style was first identified by E.T. Hall, Beyond Culture (New York: Doubleday, 1976); See also S. Ting-Toomey. Communicating Across Cultures: 272. 17 L. Zander. "Communication and Country Clusters," l111ernational Swdies of Management & Organization 35( I) {Spring, 2005): 83-103. IS S. Ting-Toomey, 'Talk as a Cultural Resource in the Chinese American Speech Community." Communication 9 ( 1980): 193-203. 19 S. Blum-Kulka and J. House, "Cross-Cultural and Situational Variation in Requesting Behavior," in S. Blum-Kulka, J. House, and G. Kasper (eds.). Cross-Cultural Pragmatics: Requests and Apologies (Norwood, NJ: Ablex. 1989): 123-154. 20 S. Blum-Kulka, "Interpreting and Performing Speech Acts in a Second Language: A Cross-Cultural Study of Hebrew and English," in N. Wolfson and J. Elliot (eds.). Tesol and Sociolinguistic Research (Rowley, MA: Newbury House, 1983): 36-55. 21 "January 13, 1982 Washington, DC, Air Florida, Flight 90. Boeing B-737-222, N62AF," http:www.planecrashinfo.com/ cvr820 I 13.htm. Accessed I 0/31105. 22 This research on politeness among flight crews, attributed to linguist Charlotte Linde, was cited in D. Tannen. "The Power of Talk: Who Gets Heard and Why" Harvard Business Review 73(5) (September-October, 1995): 138-148. 23 S. Ting-Toomey, Communicating across Cultures (New York: The Guilford Press, 1999). 24 A. Mehrabian and M. Weiner, "Decoding of Inconsistent Communications," Journal of Personality and Social Psychology 6 ( 1967): I 09-114. 25 Based on P. Noller, Nonverbal Communication and Marital Interaction (Oxford: Pergamon, 1984). See also "Why So Much ls Beyond Words," Time (July 13, 1981): 74. 26 C. R. Rogers and R. E. Farson, Active Listening (Chicago: Industrial Relations Center, University of Chicago, 1975). 27 J. Gibb, "Defensive Communication,'' Journal of Communication I I (3) (1961): 141-148 or The Organizational Behavior Reader. 28 R. D. Albert, "A Framework and Model for Understanding Latin American and Latino/Hispanic Cultural Patterns," in D. Landis and R. Bagat (eds.), Handbook of lntercultural Train- ( CHAPTER 8 INTERPERSONAL COMMUNICATION ing (Thousand Oaks. CA: Sage. 1996): 327-348; and W. Gudykunst, and S. Ting-Toomey. C11l111re and Interpersonal Com111w1ication (Newbury Park. CA: Sage, 1988); J. A. De Vito. The lnte111erso1wl Com111w1ication Book (New York: Harper & Row. 1989): 197. 29 Crainer and Dearlove. "Making Yourself Understood": 24. °Crainer and Dearlove. "Making Yourself Understood." 35 217 Ibid. 36 For an in-depth look at active listening. see D. Stone, B. Pauon. and S. Heen. Difficult Conversations: How to Discuss What Mailers Most (New York: Viking. 1999). 37 G. Henderson. Our Souls to Keep: Black/White Relations in America (Yarmouth. ME: Intercultural Press. 1999). 3 23-27. 38 D. A. Morand. "Po liteness and the Clash of Imeraction Orders in Cross-Cultural Communication ," Thunderbird International Business Review 45(5) (2003): 521-540. 32 39 31 Crainer and Dearlove. "Making Yourself Understood." S. Robbins. "Contexts of Uninhibited Online Behavior: Flaming in Social Newsgroups on Usenet." Journal of the American Society for !nformatio11 Science 49 ( 12) ( 1998): I 135-1 141; L. Sproull and S. Kiesler. Connections: New Ways of Working in Networked Organizations (Cambridge. MA: MIT Press, 1992). 33 E. V. Wilson. "Email Winners and Losers." Communications of the ACM 45( I 0) (October 2002): 121-126. 34 J. Brownell. "Preparing Students for Multicultural Environments: Listening as a Key Management Competency." Journal of Management Education 16 ( 1992): S 1-93. ( l De Vito, The lnte111ersonal Communication Book: 179. -IO G. Klein, "Why Won't They Follow Simple Directions?" Across the Board 37(2) (2000): 14-19. 41 N. Tichy and S. Sherman , Control Your Destiny or Someone Else Will (New York: HarperCollins. 1994). ( PERCEPTION AND ATTRIBUTION e:'.'T !VES By the end of this chapter, you should be able to: A Define perception and explain the perceptual process. B. Identify the sources of misinterpretation in cross-cultural interactions. C. Understand both the benefits and the drawbacks of the perceptual process. D. Recognize common perceptual errors. E. Describe the Johari window. F. Explain attribution theory. G. Understand the relevance of perception and attribution for managers. John Godfrey Saxe It was six men of Indostan To learning much inclined, Who went to see the Elephant (Though all of them were blind), That each by observation Might satisfy his mind. The first approached the Elephant, And happening to fall Against his broad and sturdy side, At once began to bawl: "God bless me! but the Elephant Is very like a WALL!" The second, feeling of the tusk, Cried, "Ho! what have we here So very round and smooth and sharp? To me 'tis mighty clear This wonder of an Elephant Is very like a SPEAR." 218 CHAPTER 9 / ( PERCEPTION AND ATIRIBUTION The third approached the animal, And happening to take The squirming trunk within his hands, Thus holdly up and spake: " I see ," quoth he, "the Elephant Is very like a SNAKE!" The fourth reached out an eager hand, And felt about the knee "What most this wondrous heast is like Is mighty plain,'' quoth he: "'Tis clear enough the Elephant Is very like a TREE!" The fifth, who chanced to touch the ear, Said : "E' en the blindest man Can tell what this resemhles most ; Deny the fact who can , This marvel of an Elephant Is very like a FAN!" The sixth no sooner had begun Ahout the beast to grope, Than seizing on the swinging tail That fell within his scope, "I see," quoth he, "the Elephant Is very like a ROPE!" ( And so these men of Indostan Disputed loud and long, Each in his own opinion Exceeding stiff and strong, Though each was partly in the right, And all were in the wrong! A. Read "The Blind Men and the Elephant." B. Think about an experience you ' ve had or a situation you've observed when differing perceptions were the source of prohlems or misunderstanding. For example, have others ever falsely stereotyped you or have you ever had a mistaken impression ahout another person that was proved wrong? 1. Descrihe the situation. 2. What were the differing perceptions of the principal actors involved in this situation? l 219 220 PART 2 CREATING EFFECTIVE WORK GROUPS 3. What was the impact of differing perceptions? ( 4. Were the differing perceptions ever discussed and resolved? If so, how did that come about? Who made that happen and how did they do it? 5. While did you learn about perceptions from this experience? C. While reading the chapter, make a list of the cues you should keep in mind regarding perception and attribution. If somebody tells you that you have ears like a donkey, pay no attention. But you, buy yourself a saddle. if two people tell Sholom Aleichem In every chapter so far, we learned about various kinds of individual differences and mental maps. Yet another way in which people differ is the way we perceive the world. No individuals perceive stimuli in the exact same fashion. It is tempting to assume that human behavior is a response to an objective reality but, as the comedienne Lily Tomlin noted, "Reality is nothing more than a collective hunch." The same stimuli may be present in our environment, but how we process and interpret the stimuli is affected by individual differences. For example, if you talk with a rabid Republican and a fanatical Democrat the day after a U.S. presidential debate, it may be difficult to believe they both watched the same debate. Each claims his or her candidate "won" and the other candidate was a disaster. The same is often true of diehard fans of different sports teams talking about yesterday's game and why one team won. At work, we might see two managers with completely different impressions of an employee's performance; one manager wants to promote the employee, whereas the other recommends firing. How do we end up with such diverse and even contradictory impressions? Chalk it up primarily to individual differences in perception. Perception is the process by which we select, organize, and evaluate the stimuli in our environment to make it meaningful for ourselves. It serves as a filter or gatekeeper so that we are not overwhelmed by all the stimuli that bombard us. The three stages of the perceptual process are explained below. Selection. A key aspect of the perceptual process is selective attention, which is defined as the process offiltering the information our senses receive. We simply do not see or hear everything that goes on around us. For example, when you live in another country and have reached a moderate level of fluency in a foreign language, you occasionally stumble on a new word that you have never heard before. Once you master the word, you realize to your chagrin that it is in fact a very common word-you just weren't "hearing" or attending to it before. Both internal and external factors determine what sensory impressions we pay attention to. Internal factors that affect perception are motives, values, interests, attitudes, past experiences, and expectations. For example, hungry people are more attuned to references to food than people not curTently motivated by the hunger need. Hungry people may even "hear" the word candy when the CHAPTER 9 ( ( \ PERCEPTION AND ATIRIBUTION speaker says caddy because we often hear what we want to hear. People attend to only the stimuli that interest them or support what they are looking for, which explains the term selective attention. Studies of both low-level supervisors and middle-management executives revealed that these individuals perceived only those aspects of a situation that related to the goals and activities of their own departments. 1 Information that conflicts with what we believe is often ignored or distorted to conform to our preconceptions and expectations. Selective attention explains why two people can attend the same meeting or event and have contradictory stories about what occurred. The fervent political supporters mentioned in the opening paragraph heard and saw only what they wanted to hear (great points made by their candidate, indications of strong leadership potential, etc.) and blocked out the strengths of the opposing candidate. In this way, their preconceived attitudes about the debate affected their perception and interpretation of the actual event. The external factors that influence perception are characteristics of the target we perceive. Our attention is drawn by motion , intensity, size, novelty, and salience. We notice things that are moving, the way a bull notices the cape waved by the bull lighter. Fire alarms grab our attention because the siren is loud, piercing (intensity), and rare (novel) in most neighborhoods. Salience is the extent to which a given object or event stands out ji-0111 the others around it. The salient object or event is the " figure" that dominates what we see; the rest is "ground" or background in Gestalt psychology terms. What do you see in the picture in Exhibit 9-1? What is figural to some people is merely background to others. Furthermore, our perceptions tend to remain constant; once a perceived object is fixed in our minds, it is difficult to reinterpret the stimuli. Organization. The second stage in the perceptual process is the organization of the stimuli that has been selected to make it simpler. Our thought processes automatically structure stimuli into patterns that make sense to us. Patterns of antithesis (opposites) and cause-and-effect relationships ("If ... then") are two examples of common thought processes. It is easier to see cause-andeffect relationships in the physical world than it is with social interactions and human behavior. Nevertheless, we organize stimuli in the same patterns. For example, if an organization is successful , people in the United Stales tend to attribute this success to the leader whether or not the leader really had an impact. 2 According to social cognition theory, we organize stimuli into schemas.3 Schemas are mental maps of different concepts, events, or types of stimuli that contain both the attributes of the concept and the relationship among the attributes. Like geographical maps, schemas are representations of reality but not reality itself. Everyone's maps are different. l EXHIBIT 9-1 Source: Circle Limit IV by M. C. Escher. © 1999 Cordon Art-Baarn-Holland. All Rights Reserved. 221 222 PART 2 CREATING EFFECTIVE WORK GROUPS For example, each of us has a schema about "leadership" that includes the traits that we think describe a good leader. We tend to see these traits as a package deal ; if someone has a few of these traits , we assume they also possess the other traits. Our leader schema might include attributes such as trustworthy, directive, courageous, enthusiastic, and valuedriven . If we see a leader who is trustworthy and directive, we may mistakenly assume he or she is also courageous, enthusiastic, and value-driven. Once schemas have been established, they affect how we handle future information because they determine what we attend to and what we remember. We are Jess likely to notice and remember free-floating stimuli than stimuli that fit into existing schemas. Evaluation. The final stage in the perceptual process is evaluation or inference. We interpret stimuli in a subjective rather than objective fashion . Our conclusions are biased by our individual atlitudes, needs, experiences, expectations, goals, values, and physical condition at the time. Not only do interpretations differ from person to person, but the same person can have diverse perceptions of the same stimuli at different points in time. When large organizations are involved in major change efforts, it is easy to see examples of differential interpretations of the same stimuli in the diverse reactions to announcements about upcoming innovations. No mailer how carefully such announcements are worded, employees reach vastly different conclusions, and harmful rumors are commonplace. People who are frightened about the changes are more likely to make negative inferences about the announcements than people who are looking forward to what they see as a much-needed improvement. SOCIAL IDENTITY Although no two people perceive the world exactly the same, social groups and cultures have shared perception. "Other things being equal, the higher the degree of similarity of perception among individuals, the easier communication among them is likely to be, and the more communication among them is likely to occur." 4 We communicate more with people we perceive to be like us. This group identification also determines how we perceive the world because we learn to see things as they do and to pay attention to the stimuli they view as important. Thus, social identity and perception are closely related . Social identity theory is based on the belief that people tend (I) to perceive themselves and others in terms of social categories rather than as individuals (social categorization); (2) to assess the relative worth of groups as well as individuals by comparing them (social comparison); and (3) to perceive a11d respond to the world not as detached observers but i11 terms of their identity, which depends on the social groups to which they belong (social identijication).5 Sharing a social identity means that people perceive themselves as similar along important dimensions (such as similar disposition, similar attitudes) 6 and define themselves in terms of the groups in which they are members. For example, people may define themselves by their ethnic group, religion, political party, fraternity or sorority, favorite sports team, and so on. They see their own group as more homogeneous and in a more favorable light than it really is. The more we perceive others as similar to us, the more likely we are to trust them as well as cooperate and exchange information with them. 7 However, the downside of this phenomenon is that when humans categorize others into groups, they tend to perceive other social groups as inferior. 8 This can lead to stereotyping. STEREOTYPING A common danger that may result from our perception of people who are somehow different from us is stereotyping. Stereotyping occurs whe11 we attribute behavior or attitudes to a person on the basis of the group to which the person belongs. Much of the cynicism in organizations is expressed in terms of stereotypes about other groups, such as "Top management cannot be trusted," or "You'll never get those employees to participate and work harder." Furthermore, research in social cognition shows that people have an implicit bias against social categories, particularly racial minorities, despite their claims that they are not prejudiced. In other words, ( l CHAPTER 9 PERCEPTION AND ATIRIBUTION ( ( even when people sincerely believe that they are not racially biased, research studies find evidence that they are . For example, one researcher created a video game with pictures of individuals who were either holding a gun or other objects that were not dangerous. Subjects had to decide under time pressure whether to react to the presence of a gun and "shoot" the individual in the video game. When the individual was black, subjects were more likely to assume that he had a gun, even when he did not. Subjects also were more likely to mistakenly perceive that whites were unarmed, even when they were actually holding guns . This bias, which may be exacerbated by media coverage, was found in both blacks and whites. 9 Although implicit bias is diflicult to eradicate completely, workplace efforts on managing diversity should cause people to challenge the incorrect stereotypes they hold about different groups in the workforce and be aware when biases from stereotypes might influence decisions. A fairly common stereotype in many countries is that older workers contribute less than younger workers. This stereotype is reflected in European laws that encourage early retirement and in the lack of legal protection from discrimination in many countries. In reality, U.S . studies show that older workers are less likely to be absent, have half the accident rate of younger employees, and report higher job satisfaction. 10 Researchers have found no evidence that older U .S. workers are less productive than younger workers. 11 They use information technology more slowly but make fewer errors, according to research . 12 Although "conceptual innovators" are frame-breakers who do their best work when they are young (like physicists who dream of developing a major theory in their twenties), another group of "experimental innovators" are most creative when they are older and can rely on decades of experience and trial and error. 13 The decreased cognitive functioning that accompanies some geriatric diseases has been prevented by modern medicine. Older successful managers are actually experts at solving illdefined problems using rules of thumb that "can't be put down on paper." What psychologist Colonia-Willner calls ''practical intelligence" (like knowing how to deal with difficult bosses) seems to be expert intuition based on years of accumulated knowledge and judgment. She found no age-related difference in practical intelligence in the 200 bankers she tested, which led her to conclude that this is not something that people lose as they age. 14 Thus, when businesses opt to get rid of all managers over a certain age, they not only dismantle the institutional memory, but they are also dispensing with a great deal of wisdom and intellectual capital. According to research, stereotypes are based on relatively little information, resistant to change even in light of new information, and rarely accurately applied to specific individuals. 15 For this reason, stereotyping is often viewed negatively as a source or excuse for social injustice. Nevertheless, the process of stereotyping is "a neutral, subconscious cognitive process that increases the efficiency of interpreting environmental information." 16 Stereotypes can be helpful if they are used effectively. According to Adler, helpful stereotypes are consciously held, descriptive rather than evaluative, accurate, and viewed as a "first best guess" about a group or person, which means they are subject to modification once we have firsthand experience with people. 17 The drawbacks to perception are that it prevents us from taking in everything we should, makes our interpretations open to question, and promotes stereotypes. However, perception is an extremely useful process. It helps us to make sense of a world full of stimuli in three ways: first, by limiting the amount of information that enters our mind to prevent overload ; second, by selecting what input we will attend to; and, third, by organizing and classifying the input we receive so we do not waste valuable time trying to make sense of behavior and situations that are in fact similar. IMPACT OF PERCEPTION IN THE WORKPLACE l As W. I. Thomas stated, situations that are perceived to be real are real in their consequences. Managers and employees must deal with misperceptions, no matter how ridiculous they seem at times. We cannot ignore misperceptions with the comforting thought that they are untrue. For example, if employees perceive that their employer does not respect them or care about their welfare , there may well be tangible consequences in the form of high absenteeism, low 223 224 PART 2 CREATING EFFECTIVE WORK GROUPS productivity, and turnover. Recent research showed that hospital employees who perceived their employer as unfair took more sick days. Men who felt that decision making at work was arbitrary and did not take their views into consideration were 41 percent more likely to take sick days than men who did not have this perception. 18 The determination of employee job performance is vulnerable to subjective perceptions that have surprisingly little to do with how people do their job. For example, two economists discovered that paychecks are correlated with beauty, particularly for men, which one scholar calls "the hunk differential." 19 People whose looks are above average are paid approximately 5 percent more than people whose appearance is average, and people with below-average looks receive 9 percent less than the average wage. 20 One of the economists, Daniel Hamermesh, decided to choose a profession where attractiveness should have no conceivable impact on productivitycollege professors. With a student researcher, he looked at teaching evaluations for 463 courses taught by 94 faculty members at University of Texas-Austin. Six students rated the professors' photos on a beauty scale; their scores correlated strongly so they had a similar view of which profs were attractive and which were not. The highly attractive professors had average teaching evaluations of 4.5 on a five-point scale, whereas the least attractive had evaluations that averaged 3.5 . Non-tenure-track faculty had higher evaluations than tenure track faculty, presumably because they are hired only for their teaching rather than both teaching and research. Minority instructors had lower evaluations than majority members, non-native English speakers had lower evaluations than native speakers, and females had lower evaluations than males. (No reasons were given for these differences, but we have to wonder whether stereotypes played a role in student perceptions.) However, good looks were more important in producing high teaching evaluations for men than women; men were more likely to get high evaluations if they were hunks and low evaluations if they were unattractive than women. Because this research deals only with perceptions about teaching performance rather than an objective comparison of teaching abilities by a panel of objective judges, it is hard to say whether good looks are the cause of a perceptual bias in students or whether attractive profs actually do a better job in the classroom. This is something for you to think about the next time you fill out evaluations! ( PERCEPTUAL DISTORTIONS Stereotyping is not the only perceptual distortion that influences how people are treated in the workplace. Another distortion, the "halo effect," occurs when our evaluation of others is dominated by only one of their traits. For example, a U.S. Army study showed that officers who were liked were evaluated as being more intelligent than those who were disliked. 21 The halo effect does not always work to an employee's advantage. A perceived negative trait such as sloppiness can prevent a boss from seeing the other positive characteristics an employee may have. Two more perceptual distortions are also rooted in a limited consideration of the information . The primacy effect means one's perception is dominated by the first impression of another person. The initial impression of the person is never adjusted in light of more information about him or her. In contrast, when one's perception is overly dominated by the most recent interactions with a person, this is called the recency effect. If an employee makes a major error the week before his performance appraisal interview and his boss focuses primarily on this mistake and pays less attention to all the employee's other accomplishments during the year, the boss is biased by the recency effect. Central tendency is a perceptual distortion that occurs when a person avoids extreme judgments and rates everything as average. We see this when managers rate all their employees as "3s" on a five-point scale, in spite of the fact that some employees really deserve a "5" or a" I." Contrast effects are present when our evaluations are affected by comparisons with other people we have recently encountered who are either better or worse in terms of this characteristic. For example, if a student has two of her university's best professors in the same semester, she may rate her other professors (who in reality are good professors) as only average or poor because she is comparing them with the excellent professors. (.,__ CHAPTER 9 PERCEPTION AND ATIRIBUTION ( Another type of perceptual distortion is pmjection, the tendency to attribute one's personal attitudes orfeelings to another person, thereby relieving one 's own sense of guilt orfailure. Projection is a defense mechanism that protects people from confronting their own feelings . It is most common in people who have little insight into their own personalities.22 Some multinational corporations (MNCs) have been reluctant to transfer female executives abroad on the grounds that a woman could not he effective in a traditional, male-dominated culture. Sometimes, however, the MNC management is simply projecting upon the foreign culture its own feelings and prejudices about female managers. In reality, research has shown that female U.S. expatriates have been successful all over the world .23 The final source of perceptual distortion is known as the perceptual defense . These defenses act as a screen or filte1; blocking out that which we do not want to see and letting thmugh that which we wish to see. 24 The closer we get to schemas concerning our self-perceptions (selfimage) and our relationships with important others, the more likely we are to call on these defensive screens.2-5 These defenses help to create self-fulfilling or circular perceptual processes like the ones shown in the following examples. 1. As a woman , I believe that men prefer women who are passive and unassertive. 2. Since I would like to develop meaningful relationships with men , I behave in a passive and unassertive manner. 3. I tend to develop relationships with men who expect women to be passive and unassertive. 4. I am confirmed in my belief that men prefer women who are passive and unassertive. or or 3. I do not approach and/or am not approached hy men who expect a woman to he active and assertive. 4. I do not have the opportunity to develop my own assertiveness . 1. As a manager, I believe that subordinates are basically lazy and dislike work . 2. I assume, therefore, that to get the most out of subordinates I must watch over their every move . 3. I behave in a strict manner, del egating little responsibility, and demanding that everything be cleared through me first. 4. My subordinates react to this parent-like stance by acting like rebellious teenagers. I have to lean on them all the time, or they'll never do what I tell them. 5. Consequently, my original belief is confirmed; subordinates are basically lazy and dislike work. The underlying pattern in these processes is one of ( 1) assumption or belief, (2) leading to behavior that is congruent with the assumption, followed by (3) observation of consequences, which, to the extent that selective perception is occurring, leads to (4) confirmation of the original assumption or belief. Testing the validity or desirability of this conceptual pattern is difficult for several reasons. One important reason is that normal social interaction is basically conservative-social norms operate to preserve existing interaction patterns and perceptions. Sociologist Erving Goffman26 has described the tendency of people to preserve the ''face" that others present to them. When people act "out of character," social pressures are mobilized to force them back into their role. In social situations, we tend to act in such a way that we maintain our own self-image and the self-image we see others presenting. We resist telling someone that they have egg on their chin because we assume that this is not part of the image they want to present and we do not want them to "lose face" and be emhainssed. This conservative interaction norm tends to decrease the accuracy of interpersonal perception by relinquishing opportunities to test the accuracy of our perceptions of ourselves and others. The norm dictates that we cannot frankly tell others our impressions of them if these impressions differ from the face they are presenting. It also acts as 225 226 PART 2 CREATING EFFECTIVE WORK GROUPS an obstacle to our testing with others whether or not we are projecting the kind of self-image we think we are. "Do you see me the way I see myself?" When people present themselves as leaders, it is hard to tell them you do not feel like following . Thus, we are denied information about others' true thoughts and feelings by the face we present. THE JOHARI WINDOW A theoretical conceptualization of this process is depicted in the matrix, in Exhibit 9-2. The Johari Window is an information pmcessing model that consists of four regions determined by whether information about oneself is known or unknown to oneself and others. 27 When a person's arena is very small, communication is greatly hindered. The more we know ourselves and allow others to know us, the greater the potential for effective communication. There are two ways to increase our arena-self-disclosure and feedback from others. Self-disclosure means sharing information about oneself, which moves information from the fa<;:ade to the arena. Feedback from others about information in our blindspot also moves information into the arena. Trust and psychological safety are prerequisites for both self-disclosure and feedback . We instinctively hold back personal information from people we do not trust, and it is too risky to give feedback to people who might react defensively or angrily. When we share a social identity with others and see them as one of "us," our arena is larger. Our arena is smaller and our fru;:ade is larger when communicating with people with whom we do not identify.28 One of the basic competencies of effective managers is self-awareness. This requires an ability to both seek feedback from others and to disclose one's own feelings and thoughts. Self-awareness is also important with regard to our perceptual biases. If we understand in what situations we are likely to be biased and listen to feedback from others that we appear biased, we can avoid perceptual distortions. For example, a high-level manager was informed that an employee was guilty of sexually harassing a subordinate. Because the manager herself had been falsely accused of harassment at one time, she was biased toward thinking that the employee, a good friend, also was innocent. Unfortunately, she did not listen when other subordinates suggested she might be letting her own experience and her friendship cloud her judgment, and the guilty employee was never held accountable. Known to Self Not Known to Self Known to others Arena Blindspot Not known to others Fac;:ade Unknown Arena This cell includes information that I and others know about me-mutually shared perceptions. In other words, people see me the way I see myself (e.g., I feel confident, and people see me as confident). Fac;:ade This cell contains information that I know about myself but hide from others (e.g., I feel insecure, but I strive to project the image of a very secure person). In other words, people see a "false me," and I must always be on guard to prevent them from seeing the "real me." Blindspot This cell consists of information or characteristics that people perceive in me but that I do not see in myself (e.g., others see that my anxiety reduces my effectiveness, but I do not see-or will not admit to myself-that I am anxious). In other words, people know certain things about me that they may not tell me (like the old deodorant commercial, "Even your best friends won't tell you."). Unknown This cell is made up of information and characteristics that neither I nor others see in myself. Psychoanalysis might be necessary to unearth this type of information . EXHIBIT 9-2 The Johari Window ( CHAPTER 9 PERCEPTION AND ATIRIBUTION CULTURAL INFLUENCE ON PERCEPTION ( We know what we perceive; we don't know what we don't perceive. Since there is no way that we can know what we don't perceive, we assume that we perceive "correctly" -even if we don't. Marshall Singer Nowhere is it more obvious that different groups see and interpret the world in different ways than when we deal with people from different cultures or ethnic groups. For example, a West African tribe lives in round houses and, as a result, does not perceive perpendicular lines . The way that Africans do favors to gain allies conveys meaningful cues that are not even perceived, much less correctly interpreted by most non-Africans. Perceptual patterns are both learned and culturally determined. 29 They are also a barrier to effective crosscultural communication when we fail to pay attention to cues that are important to another culture or when we misinterpret the behavior of a person from another culture. Asians and Westerners think and perceive in different patterns. Asians are more likely to "describe something in terms of what it is not," like the space that is not the figure. 30 Japanese subjects made 60 percent more references to objects they saw in the background of a fish tank (e .g. , rocks , plants, small animals) than did U.S. subjects. There was no difference in their reports on the figure, the fish. 31 Adler has identified three sources of misinterpretation in cross-cultural interaction: 32 ( 1. Subconscious cultural blinders We use our own cultural assumptions to interpret the events and behavior of a foreign culture. 2. Lack of cultural awareness We are unaware of our cultural values and norms and the way that other cultures perceive us. Without understanding our own culture, we cannot adapt our behavior so that it is perceived more accurately by others. 3. Projected similarity We assume that people from other cultures are more similar to us than they really are or that situations are similar when they are not. This is based on the ethnocentric view that there is only one way to be-like me. 0.1.E. MODEL The D.I.E. model was developed to teach more accurate perceptions and attributions in crosscultural interactions. 33 It stands for description, interpretation, and evaluation. Description refers to what you see-only observed fact. Interpretation refers to inferences, or what you think about what you see. Evaluation refers to judgments, what you feel about what you think. Evaluation can be positive or negative. For example, two team members, a Russian and an Israeli, are arguing in a team meeting. A Japanese woman observing this interaction could apply this model in the following fashion. Description: Ivan and Isaac are arguing vigorously and loudly about how the project report should be organized. lnte1pretatio11: I think that these two coworkers are very stubborn and might come to blows. Evaluation: Violent arguments like this among teammates make me uncomfortable. This is inappropriate behavior, which I don't want any part of. In fact, Ivan and Isaac come from cultures characterized by the attached argument style. In the attached style, if an issue is important, it's worth getting excited about and worked up. In the detached argument style, found in Japan, if an issue is important, it should not be tainted by personal bias. In reality, this disagreement should help clarify what needs to be done on the report and result in a higher-quality product. The Japanese woman's interpretation is inaccurate because of her subconscious cultural blinders. Her evaluation, which is negative in this case, may prevent her fr6m participating in an important discussion. Thus, reliance on description, rather than interpretation or evaluation, is more likely to promote effective intercultural interactions. 227 228 PART 2 CREATING EFFECTIVE WORK GROUPS ATTRIBUTION The most pertinent aspect of perception in terms of organizational behavior is social perception-how we perceive and judge other people. Our behavioral responses to others are based on our inferences about their behavior. According to attribution theory, when people observe behavi01; they attempt to determine whether it is internally or externally caused. 34 For example, if a team member does not pull his weight on a project, other members may attribute his behavior to internal reasons that are under his control, such as "he's in-esponsible and lazy." Or they may attribute it to external reasons , such as "he has too much other work to do a good job on this project." These attributions then determine the way peers a nd managers behave toward the person. If the employee is deemed irresponsible, his manager might take disciplinary measures or try coaching behavior. If the external cause is accepted, his manager might reorganize his work assignments, send him to time management courses, or negotiate with his other project leaders for more release time . As shown in Exhibit 9-3, we use three types of information to help us make causal judgments about others: 1. Consensus refers to the extent to which others behave in the same manner. 2. Consistency is the extent to which the person acts in the same manner at other times . 3. Distinctiveness is the extent to which this person behaves in the same manner in other contexts. Let' s take the example of a human resources (HR) manager who is trying to figure out whether an employee complaint about his boss's managerial style is valid. The HR manager will consider whether other employees also have complained about this particular manager (consensus). She also will consider whether the employee has complained about this same boss on previous occasions (consistency) and whether the employee has a habit of complaining about all his bosses or just the current one (distinctiveness) . If no one else has complained about the boss, and the employee's evaluation of the boss has been inconsistent (sometimes positive, sometimes negative), and if the employee is a habitual whiner, the HR manager will probably conclude that the problem lies within the employee (internal attribution) rather than the manager (external attribution). If other employees also have complained about the boss , the employee's complaints about this boss have been consistent over time, and the employee never complained about previous bosses , the HR manager is more likely to conclude that it is time to take steps to help the boss improve his style. There are biases that distort our attributions about success and failure. The Chinese usually attribute personal success to luck and failures to personal failings.35 In contrast, when Americans succeed, they attribute it to personal, internal factors (e.g., hard work, intelligence, initiative). However, when Americans fail they are more likely to blame it on external factors (such as tough competition, poor leadership, interdepartmental problems). This is called the self-se1ving bias, the tendency Consensus Consistency Do others behave similarly? Did the person act this way before? Distinctiveness Does the person behave this way in other contexts? D Causal Judgment Internal Causation Behavior explained by internal factors EXHIBIT 9-3 Attribution Theory External Causation or Behavior explained by external factors ( CHAPTER 9 PERCEPTION AND AITRIBUTION ( for people to attribute their successes to internal.factors while blaming external factors for their.failures. When some managers evaluate their employees, they are less generous and attribute low performance to the subordinates ' personal failings rather than external factors . For example, rather than attributing low sales figures to being understaffed, a manager may attribute it to lack of motivation among the sales staff. This form of perceptual distortion is called.fimdame11tal attribution enVI; the tendency to underestimate the influence ofextemalfactors and overestimate the influence of intemal factors when making judgments about the behavior of others. 36 Given these natural tendencies, managers should make an extra effort to ensure that their attributions about employees are accurate. Katherine Whitehorn, a British writer, showed her understanding of human nature when she proposed the following conjugation of "iJTegular verbs." I am Ji rm. You are obstinate. He is a pig-headed fool. Perception plays a major role in communication and decision making in the workplace, particularly in the areas of hiring and firing, performance appraisals, promotions, and work assignments. Effective managers acknowledge that their own perceptions may be uniquely biased and work hard at gathering and understanding the perceptions of other people so there is a greater chance of approximating "reality." It is as difficult for humans to understand the impact of their own perceptual schema as it is for a fish to understand the concept of water. Yet our perceptual maps and the fish's water are equally important for survival. Without a conceptual system to simplify and order our experiences, we would become overwhelmed by stimuli . However, failure to recognize that our perceptions are to some extent our own creation can leave us closed , defensive, and unable to profit from new experiences. In the following Personal Application Assignment, an engineer analyzes his reactions to the perception chapter and struggles to understand his own way of perceiving others. ( STUDENT PERSONAL APPLICATION ASSIGNMENT Again it seems I am going to write a paper about myself rather than the suggested topic . Whenever I reflect on the subject matter we study, I can directly relate it to myself. I have always considered myself "free of hangups"; however, there are many things I do that I do not completely understand. Previously I have never taken the time to question myself, but now, being forced to think about a concept, I can see how I have been influenced by that concept and can attempt to explain , but not alwaysjustity, the way I tee! toward many things. Well, here goes! I am the perfect example of a person blinded by his own perception of the world . Not all of the time, mind you, but mainly in one case-the case being when I become "snowed" by a girl. I'll begin by relating my current project in this area-at least I think the project is current, although I'm not sure as of this moment because of a possible misperception on my part. Being alone in a new city, I engaged in the well-known game of mixer this autumn in the hope of meeting someone interesting. I accomplished my goal without any difficulties, and here is where my problem began-I committed my unpardonable sin of becoming snowed . I do not have many difficulties with first perceptions. I think I am pretty objective and usually make good judgments. First impressions are almost solely objective! As long as I do not become emotionally involved, that is, as long as there is no filter between what I see and how I perceive what I have seen, I am quite able to understand what is communicated. However, once I am personally involved with the reason behind the attempted communication, my vision of what is actually happening is, I believe, distorted. This weekend, for example, I did not take Mary (a fictitious name) out because of our last date and a phone call I made after the date. Even though I wanted to take her out, I didn't. Consequently, I have been asking myself all weekend what motivated me not to ask her out; and I do not have a specific answer-but I know it stems from how I perceived how she !eels. However, 229 230 PART 2 CREATING EFFECTIVE WORK GROUPS maybe that's not how she really feels, and I do not let myself comprehend that there may be a difference between these two versions of the same feelings. I guess I feel that my logical reasoning of what a particular look or remark means is the correct idea. I completely leave out the possibility that everyone does not (thankfully) think about everything the same way I do. Zalkind and Costello, in their article on perception, give five reasons why a person misperceives.37 These are: 1. You are influenced by cues below your own threshold (i .e., the cues you don ' t know you perceived). 2. You respond to irrelevant cues to arrive at a judgment. 3. You are influenced by emotional factors (i .e., what is liked is perceived as correct). 4. You weigh perceptual evidence heavily if it comes from a respectable source. 5. You are not able to identify all factors (i.e., not realizing how much weight is given to a single item). I feel I am guilty, if one can be "guilty," of most of the mentioned means of misperception . However, I feel that rather than imposing a perceptual defense on myself, I project a perceptual offense, and this greatly compounds my misperception. Rather than looking for favorable acts of communication and not allowing unfavorable perceptions, I am forever (when I become emotionally involved with a girl) on the lookout for any signs of displeasure. And at the slightest hint, my mind begins to work on such questions as "What if that means ... ?" For example, to the question, "Did you have a good time?" I got the reply, " Yeah, I guess so." I did not perceive this as a positive statement. My perce ptual offense was quickly in play and I have since been analyzing that statement. I don't know Mary well enough to say what anything she says really means, but because I was afraid the reply meant "I had a bad time," that is what I have convinced myself that she meant (although nothing else that was said even hinted at that idea; and to the friend who doubled with me, the opposite was obviously true). I didn ' t ask her out this weekend for reasons mainly based on this one perception of how she feels about dating me. Looking back on my action , I see I have committed three of the Zalkind-Costello misperception errors. • I may have responded to an irrelevant cue-her remark probably just came out and didn ' t really have any deep meaning behind it. • I was influenced by a (negative) emotional factor-I was so worried that she was not enjoying herself, and the impact this would have on my emotional happiness, that my perception might have been distorted. • I did not realize how heavily I weighted this single cue. Being apprehensive of how she felt, I ended up analyzing every little remark she made. I did not take time to think that my ways of comprehending a perception may be inaccuratethe thought never seemed to enter my mind. Our class handout on perception states, "These defenses act like a screen or filter ... blocking out that which we don't want to see and letting through that which we wish to see." I, however, feel that I block out that which I want to see and let in that which I don ' t want to see. This is a definite problem, but one that I never thought of before. And to compound matters, the perceptions I let in are my own personal version of what is perceived and may be the opposite of what is being communicated. I do not have this problem until I begin to like a girl. Trained as an engineer, I think I am able to cope with objective matters; but when I try to understand another person, I seem to fail-especially when my perceptions pass through an emotional filter. To take a statement out of context, Zalkind and Costello say, "A little learning encourages the perceiver to respond with increased sensitivity to individual differences without making it possible for him to gauge the real meaning of what he has seen." Well, I have had only a little learning about perception, and their statement applies to me perfectly. I try to play psychologist without knowing the first thing about what I am looking for. This is a habit I have gotten myself addicted to, and one CHAPTER 9 PERCEPTION AND ATTRIBUTION ( I will have to break down in order to have a belier understanding of the people around me. Right now the unknown (i .e., the human unknown-what people are thinking) confronts me and I am frustrated by it. In response lo this frustration, I set up a perceptual defense (I guess my perceptual offense is nothing but a type of perceptual defense-there is an old football theory that the best offense is a good defense), which only adds to my frustration . Thus, lo move from the unknown lo perceptual understanding, I must first realize that I am reacting defensively lo what is being communicated lo me. It seems I am now coming back lo a familiar theme in all the topics we have covered so far. Zalkind and Costello say, "The person who accepts himself is more likely to be able to see favorable aspects of other people." I feel this is especially true of myself. If I slop and realize that my date is probably thinking of the same things that I am (at the initial stages of human relations, most of the time is spent in the unconscious, hidden, and blind areas of perception), then I may prevent my perceptual defense from operating at its current level. If I continually look at weak points and never strong points, and do not realize that I am doing this, I am not really aware of myself and, therefore, not aware of how others perceive me. I feel I can improve myself in a number of ways. First, I must accept my own feelings and not wony or analyze them. As is stated in chapter I 0 of the workbook, "Each of us has both his tender and tough emotions." Second, I should stop analyzing logically-it 's hard for me to accept the fact that all of my world is not logical. Third, I should experiment more in the giving and receiving of perceptual feedback. I spend too much time analyzing a date's behavior and not enough time giving her feedback, thus blocking the understanding between us. Finally, the tou11h area of improvement, and the factor that this paper has led me to explore, is increasing my own awareness and understanding of the causes of emotion. I hope I can put these steps into action and then build on them. I \ The following exercise is designed to help you develop perceptual skills that will be useful in the workplace . . ~:. The purpose of this exercise is to understand the role of perception in personnel issues (Time allotted: 70 minutes) . STEP l . Each class member will be assigned a role by your instructor, who will also assign you to groups composed of 4-6 other students who have been assigned the same role ( 10 minutes). Selection Committee: STEP 2. l Gerilyn, Senior Loan Officer Page 235 Mel, VP, Loans Page 236 Maria, HR Manager Page 237 Jason , Client Relations Supervisor Page 238 Charlie, Senior Manager, Auditing Page 239 Anne, Branch Manager Page 240 Observer Page 241 In your same-role group, read the role-play instructions for your character on the page indicated above. Do not read the instructions for any other role. Next read about The Situation, which follows, and discuss these questions: Do you think Lou should be a finalist for this job? Why? Each member should devise a list of reasons supporting their opinion. (20 minutes) 231 232 PART 2 CREATING EFFECTIVE WORK GROUPS Metro Bank has just acquired a smaller local bank, and the primary strategic goal is to merge the banks effectively without losing any customers or valuable employees. Most of the employees of the acquired bank are angry and afraid that they may lose their jobs. One of their bank managers quit so there is a new opening for a branch manager. Here is the job description followed by a list of general selection criteria for branch managers: Branch managers have direct responsibility for managing and developing branch staff, supp01ting sales goals, and actively pa1ticipating in the selling and delive1y of al/financial se1vices. They must maintain and develop business relationships in the community. They repo11 directly to the Regional Sales Manager and must ensure high quality customer se1vice, which includes opening accounts, p1vviding customers with information, and resolving banking problems. Jn staffing emergencies, they have to help the staff with day-to-day branch operations. They also ensure that the branch meets all regulato1y compliance standards, develop the branch marketing plan, develop and execute the business development plan, manage sales efforts to meet sales goals, develop and execute customer service initiatives, including the resolutio11 of customer complaints. Selection Criteria for Branch Managers 1 . Knowledge of sales, branch banking, and consumer lending 2 . Strong business development skills 3. Excellent analytic skills 4. Strong written and verbal communication skills 5 . Ability to oversee and administer human resource issues 6 . Outstanding selling skills 7 . Ability to build community relations 8 . Strong interpersonal skills Lou Welch has worked for I 0 years at Metro Bank, beginning as a teller during college. Lou was later promoted to credit analyst and client relations supervisor. Lou has been working as a senior loan officer for the last year. There is an opening for a branch manager, and Lou wants the job. Below you will find a summary of Lou 's previous performance appraisals. The bank uses a 1-5 scale, where I = unacceptable, 2 = poor, 3 = fair, 4 = good, and 5 = outstanding. 2003 2004 2005 2006 Dependability 3 4 4 4 Initiative 4 4 5 5 Achieves work goals 4 4 5 5 Teamwork 2 3 3 3 Customer service 3 4 4 4 Leadership 3 4 4 4 Overall rating 3 4 4 4 ( CHAPTER 9 PERCEPTION AND ATIRIBUTION STEP 3. You will be assigned to a selection committee by your instructor, perhaps by counting off to form groups of six so that each committee has the same roster as the list shown in Step 1. Make a name tent (or tear out your role-play instruction sheet and fold it) so others can sec your name. ( If there are not enough participants to form equal groups of six, the person taking Anne's role can also speak for the missing person after reading his or her role instructions. (For example, "_ _ _ is not here but sent me an e-mail with his or her opinion, which is _______ ." ) If there are a few too many participants, they can be observers (5 minutes). STEP 4. Your task as a selection committee is to determine whether or not Lou should be one of the finalists to be considered for a management position . As branch manager, Anne will facilitate the meeting. Your committee has 20 minutes to make a decision about Lou. Mark your decision and list your reasons in the box below (20 minutes). Decision: __ Select Lou as a finalist __ Don't select Lou as a finalist Reasons ( 5. STEP 5. Plenary Debriefing (20 minutes) a. What was the impact of discussing Lou's application with other participants assigned lo the same role before the selection committee meeting? b. What was your committee's decision'? Why? c. Did you observe any perceptual distortions in other committee members? In yourself? If so, what were they'? d. As a result of the selection commillee 's discussion, did you change your impression of Lou and whether Lou should be a linalist'? e. How did your committee handle the members ' individual perceptions of Lou? Did you share all the information you had about Lou with one another'? f. What did you learn about social identity and perceptions from this exercise? 233 ( ( ,,-----... ~ H33IAAO NVO'l HOIN3S NA'1IH3~ n I )> Lou was hired the same year as you, so you have a long history. Lou is fairly conscientious when it comes to personal work goals. However, Lou really dropped the ball and let down the team on a big project you both worked on four years ago. You were the one who had to do Lou 's part of this project, which meant you had to work several nights and weekends. Because of this experience, it's hard for you to see Lou as management material. You don't think Lou should be promoted because being a branch manager means leading the team and developing good relationships with everyone, although Lou does have pretty good financial analysis skills. You didn't apply for the branch manager job yourself because you and your family are moving out of state and you are resigning in three months . ~ m ;:o '° -0 m ;:o n m ~ 0 z )> z 0 ~ ;:o i55 c- i 0 z N ~ CJ1 N ~ °' ~ ~ N (") ;;o m ~ z (;) m ,, ,, m (") --i < m ~ ;;o ?\ SNVO'l 'iN3GIS3Hd 3JIA (;) 0c -0 Ul '13W You work at headquarters and are the boss of Lou 's functional area. Lou's direct boss is Anne. You haven ' t supervised Lou's work directly, but you think Lou is a real up-and-coming star. Because you both play tennis, you have spent some time with Lou outside of work hours. You 've become fairly good friends because you seem to have a lot in common. You go to the same church and belong to the same political party. Lou is always very polite and complimentary to you, frequently telling you what a good job you have done since taking over your position. Based on your experience with Lou, you think Lou should be promoted. ,..--- ----.._, ( ,,----..... ~ HH 'H:El~VNVW VIHVW n I Over the years, you have received some complaints about Lou from coworkers who find Lou difficult at times. A secretary once came to your office in tears claiming that Lou was abrasive and harsh. You suspect that Lou might be one of those people who is good at ingratiating themselves with senior management but has little respect for lower-level employees like secretaries and the custodial staff. Lou comes from an upper-middle-class background and doesn't seem to understand what it's like for the less privileged employees or customers. Because your own family was working class, it makes you angry when the hourly workers are not given respect. You think Lou lacks the interpersonal skills to be a branch manager because Lou does not get along well with either coworkers or even customers who are different. You do remember that Lou does well at individual assignments. }> ~ m ;;o -.0 -0 m ;;o n m ~ 0 z }> z0 ~ ~ CP c- l 0 z N (,,.> -..J N CJ,) 00 ":;J ~ "' n :;o m ~ zG) m "TI "TI m Cl < m ~ lIOSIAll3dilS SNOILV'13ll LN31'1J NOSVf You have a great deal of loyalty for Lou, who trained you when you were first hired. When you made a big mistake during your first year, Lou never told on you. Lou recommended you for your cun-ent job. After I 0 years, you think Lou deserves to be a branch manager, and you know that Lou will be very disappointed if this promotion doesn't come through. You also think that Lou's financial analysis skills and knowledge of the lending process are ten-ific. ,------ ------. :;o 7' G) :;o 0 c " (/) ( ' ,,---..... \ ~NllIGilV 'H3~VNVW HOIN3S 31'1HVH3 (") You realize that some of the data in Lou 's performance tile is not as favorable as it could be. But you imagine Lou has probably grown up during 10 years at the bank and rubbed off any rough edges that were observed in the past. Heck, you had a few rough edges yourself when you were young and look at how well you 've done! Although you have heard rumblings that Lou is sometimes abrasive, you believe that Lou has great knowledge of how the branch works, especially in the financial area. I )> ~ m ;;:o °'° "'tl m ;;:o (") m ~ 0 z )> z0 ~ ;;:o 05 c-I 0 z N (.,> '° N 0 """" ~ ~ N n :;:o m ~ zG) m ,, ,, H~DVNVW HJNVHR ~NNV m n ---i < m ~ :;:o 7' G) 0 c ~ You have been the branch manager where Lou works for the last month. You don't really have a clear picture of this employee. Lou often stops by your office to chat and is very complimentary. You are hoping that other members of the committee will be able to tell you more about Lou's background and record than you've read in the personnel file. It's your job to wade through the different perceptions of Lou, get at the truth, and come up with a good decision based on valid reasons. Remember that you can't discuss Lou's personality but can only focus on Lou's work record. If a member from your selection committee is missing, please read that person's role instructions and bring his or her opinion into the meeting so that view is not overlooked. r .---..-._ CHAPTER 9 PERCEPTION AND ATIRIBUTION ( Unobtrusively observe the group discussion, considering the following questions: 1. To what extent did the group focus on the selection criteria? 2. Which members of the group had the most influence on the group decision? Why? 3. Did you observe any perceptual distortions? If so, what were they? ( 4. To what extent did the members share information with each other? 5. What worked well? What could have been improved? 241 242 PART 2 CREATING EFFECTIVE WORK GROUPS 1. Perception is the process by which we select, organize, and evaluate the stimuli in our environment to make it meaningful for ourselves. 2. Selective attention means that people perceive only some of the stimuli that is actually present. 3. Both internal factors (motives, values, interests, attitudes, past experiences, and expectations) and external factors (motion, intensity, size, novelty, and salience) affect what we perceive. 4. Perceived stimuli is organized into patterns, such as opposites, cause-and-effect relationships, and schemas. 5. Schemas are cognitive frameworks that represent organized knowledge about a given concept, event, or type of stimulus. Once established, they determine what stimuli we attend lo and remember. 6. People evaluate and interpret the stimuli they perceive in a subjective fashion. 7. Social identity theory is based on the belief that people tend ( 1) to perceive themselves and others in terms of social categories rather than as individuals (social categorization); (2) to assess the relative worth of groups as well as individuals by comparing them (social comparison); and (3) to perceive and respond to the world not as detached observers but in terms of their identity, which depends on the social groups to which they belong (social identification). 8. Stereotyping occurs when we attribute behavior or attitudes to a person on the basis of the group or category to which the person belongs. 9. The drawbacks to perception are that it prevents us from taking in everything we should, makes our interpretations open lo question, and promotes stereotypes. 10. On the positive side, the process of perception limits, selects, and organizes stimuli that would otherwise overwhelm us. 11. There are numerous perceptual distortions to avoid: stereotyping, the halo effect, primacy and recency effects, central tendency, contrast effects, projection, and self-fulfilling perceptual defenses. 12. The Johari window consists of four quadrants: the arena, blindspol, fa~ade, and unknown. It is an information processing model that distinguishes among information about oneself that is either known or unknown to the self or the other in a social interaction. Good communication is most likely to occur when both parties are operating from their arena. 13. Three sources of misinterpretation in cross-cultural interactions are ( 1) subconscious cultural blinders; (2) lack of cultural self-awareness; and (3) projected similarity. 14. The D.I.E. model teaches people to distinguish among description, interpretation, and evaluation of cultural behavior. Description is the safest response because interpretation and evaluation are likely to result in misattributions or negative evaluations. 15. Attribution theory contends that when people observe others' behavior, they attempt to determine whether it is internally or externally caused. We look for information about consensus, consistency, and distinctiveness to decide on causation. 16. The self-serving bias occurs when people attribute their success to personal qualities while blaming their failure on external factors . 17. Fundamental attribution error is the tendency to overestimate the influence of personal factors and underestimate the influence of external factors when judging others' behavior. ( CHAPTER 9 PERCEPTION AND ATIRIBUTION ( FOR EMPLOYEES • Employees who are expert at perception are self aware and recognize their own biases. They are able to put their biases aside in an effort to be more objective. • Experts are able to take the perspective of other people so they can imagine the types of perception that others hold. • They are also able to empathize with others , which allows them to understand the internal and external factors that inlluence other people's behavior. • When people give them reedback, they understand that the other's view of them may be distorted by personal perceptions. Therefore , they check out feedback with more than one person to discover whether it is accurate. • Experts make an extra effort to clarify communication to and from others to ensure that perceptions are not acting as a barrier to understanding. • People who have a greater degree of self-understanding are less likely to view the world in black-and-white terms and to make extreme judgments about others. 38 • Experts understand that their own characteristics affect the characteristics they are likely to see in others. Traits that are important to us are the ones we look for in others. The truism that we see in others that which we most dislike in ourselves applies to perception . People who are self-critical are more likely to criticize others. FOR MANAGERS ( • Managers who are expert at understanding the role perception plays in the workplace understand that no one 's perceptions are ever totally accurate or exactly the same. Therefore, they are humble and willing to accept the possibility that their perceptions are mistaken. They don't waste time arguing about what different people really saw or heard; they ta ke a provisional approach that allows for different perceptions: Not : But: Not: But: "I know I' m right ; I heard him with my own ears!" "I thought he said that, but perhaps I'm mistaken ." 'Tm positive the staff decided to approve my budget just as it is ." "Well, if we have different perceptions about the outcome of the decision, we'd better check it out with the rest of the staff. We both may have heard only what we wanted to hear." • Expert managers can distinguish between questionable perceptions that they need to verify with others and with solid , intuitive perceptions based on years of expertise. • They make every effort to be fair when evaluating employees and put aside personal biases. • They can readily recognize and warn against the different types of perceptual distortion they observe in others and themselves. • They know that they must deal with misperceptions as seriously as if they were true. They take steps to prevent misperceptions by putting themselves in others ' shoes and communicating clearly. • Expert managers know how much self-disclosure is necessary to form relationships. Selfdisclosure is like a bell-shaped curve. Too much disclosure scares people off and makes them nervous . Too little disclosure doesn't give others enough information about the person to form a relationship and they may fill in the gaps with their own projections. • Expert managers don't make attributions about cultural behavior they don't fully understand. Instead they keep an open mind and seek explanations from cultural experts . l 243 244 PART 2 CREATING EFFECTIVE WORK GROUPS FOR ORGANIZATIONAL ARCHITECTS • Expert organizational architects provide diversity and performance appraisal training so employees can recognize the dangers of stereotyping others. • They provide training so that employees who make hiring, performance evaluation, and promotion decisions are trained to recognize the perceptual distortions that can influence these decisions. • They make efforts to remove hiring and promotion barriers for minorities that reflect bias. • Experts design training programs on cultural differences in the workplace to prevent misinterpretations about behavior. • To guard against against perceptual distortions, they develop performance appraisal systems that rely on facts and the judgments of multiple raters . The topic of this assignment is to write about an experience that involved perception or attribution. Choose an experience that was significant Lo you and one about which you are motivated to learn more. A. Concrete Experience 1. Objectively describe the experience (who, what, when, where, how). (2 points) 2. Subjectively describe your feelings, perceptions, and thoughts that occurred during (not after) the experience. What did others seem to be feeling? (2 points) B. Reflective Observation 1. Looking back at the experience, what were the perspectives of the key actors (including you)? (2 points) ( CHAPTER 9 PERCEPTION AND ATTRIBUTION 2. Why did the people involved (including you) behave as they did? (2 points) ,/ ( C. Abstract Conceptualization 1. Relate concepts or theories from the assigned readings or the lecture to the experience . Explain thoroughly how they apply to your experience. Please apply at least two concepts or theories and cite them correctly. (4 points) D. Active Experimentation 1. What did you learn about perception or attribution from this experience? ( 1 point) 2. What did you learn about yourself? ( 1 point) ( 3. What action steps will you take to be more effective in the future? (2 points) E. Integration , Synthesis, and Writing 1. Did you integrate and synthesize the four sections? ( 1 point) 2. Was the Personal Application Assignment well written and easy to understand? ( 1 point) 3. Was it free of spelling and grammar errors? (2 points) l 245 246 PART 2 CREATING EFFECTIVE WORK GROUPS ENDNOTES 1 D. Dearborn and H. Simon, "Selective Perception: A Note on the Departmental Identification of Executives," Socio111et1y 21 ( 1958): 142; and A. Kofman, "Selective Perception Among First Line Supervisors," Personnel Administrator 26 (September 1963). 2 J. R. Meindl and S. B. Ehrlich, "The Romance of Leadership and the Evaluation of Organizational Performance," Academy of Management Joumal 30 ( 1987): 91-109. 3 S. T. Fiske and S. E. Taylor, Social Cognition (Reading, MA: Addison-Wesley, 1984). 4 M. R. Singer, Perception and Identity in l111ercultural Communication (Yarmouth, ME: Intercultural Press: 1998): 99. 5 S. A. Haslam, D. V. Knippenberg, M. J. Platow, and N. Ellemers (eds.), Social Identify at Work: Developing Theo1yfor Organizational Practice (New York: Psychology Press, 2003): 6. 6 N. R. Buchan, R. T. A. Croson, and R. M. Dawes. "Swift Neighbors and Persistent Strangers: A Cross-Cultural Investigation of Trust and Reciprocity in Social Exchange," American Jou/'llal Of Sociology 108 (2002): 168-206. 7 R. Cross, R. Rice. and A. Parker. "Information Seeking in Social Context: Structural Influences and Receipt Of Informational Benefits." IEEE Transactions on Systems, Man and Cybernetics-Part C: Applications and Reviews 31 (200 I): 438-448; D. J. McAllister. "Affect- and Cognition-Based Trust as Foundations for Interpersonal Cooperation in Organizations," Academy of Management Journal 38 ( 1995): 24-59; G. R. Jones and J. M. George. "The Experience of and Evolution of Trust: Implications for Cooperation and Teamwork," Academy of Management Review 23 ( 1998): 531-546. 8 J.C. Turner. M.A. Hogg, P. J. Oakes, S. D. Reicher, and M. Wetherell , Rediscovering the Social Group: A Self-Categorization Theory (Oxford: Blackwell, 1987); S. Haslam, P. Oakes, K. Reynolds, and J. Turner, "Social Identity Salience and the Emergence of Stereotype Consensus." Personality and Social Psychology Bulletin 25 ( 1999): 809-818. 9 J. Correll. B. Park, C. M. Judd, and B. Wittenbrink, "The Police Officer's Dilemma: Using Ethnicity to Disambiguate Potentially Threatening Individuals," Journal of Personality and Social Psychology 83(6) (2002):1314-1329. 10 W. Keichel Ill, "How to Manage Older Workers," Fortune 122( 12) (November 15, 1990): 183-186. 11 G. M. McEvoy and W. F. Cascio, "Cumulative Evidence of Relationship between Employee Age and Job Performance," Joumal ofApplied Psychology 74( I) (February 1989): 11-17. 12 P. Coy, "Old. Smart. Productive." Business Week 3939 (June 27, 2005): 83. l3 D. W. Galenson Old Masters and Young Geniuses. (Princeton, NJ : Princeton University Press, 2006). 14 Coy, "Old. Smart. Productive": 82. 15 D. Christensen and R. Rosenthal, "Gender and Nonverbal Decoding Skill as Determinants of Interpersonal Expectancy Effects." Jou/'llal of Personality and Social Psychology 42 ( 1982): 75-87 ; and C. McCauley, C. L. Stitt. and M. Segal, "Stereotyping: From Prejudice to Prediction," Psychological Bulletin 29 ( 1980): 195-208. l6 L. Falkenberg, " Improving the Accuracy of Stereotypes Within the Workplace," Jou ma! of Management 16( I) ( 1990): I08. 17 N. J. Adler, lntemational Dimensions of Organizatio11al Behavio1: (Cincinnati, OH: South-Western. 2002). 18 K. B. Christensen, M. L. Nielsen, R. Rugulies. L. SmithHansen, T. S. Kristensen, "Workplace Levels of Psychosocial Factors as Prospective Predictors of Registered Sickness Absence," Journal of Occupational and Environmemal Medicine 47(9) (September 2005): 933-940. l 9 H. Varian. "The Hunk Differential." New York Times (August 28, 2003). http://www.sims.berkeley.edu/ -hall pcople/hal/NYTimes/2003-08-28.html. Accessed 7/3/06. 20 Ibid. 21 S.S. Zalkind and T. Costello, "Perception : Implications for Administration," Administrative Science Quarterly 7 (September 1962): 218-235. 22 Ibid.: 226. 23 N. Adler and D. N. lzraeli, Women in Managemellf Worldwide (Armonk, NY: M. E. Sharpe, 1988); and M. Jelinek and N. Adler, "Women: World Class Managers for Global Competition," Academy of Management Execwive 2( I) (1988): 11-19. 24 M. Haire and W. F. Grunes, "Perceptual Defenses: Processes Protecting an Organized Perception of Another Personality," Human Relations 3 ( 1950): 403-412; and M. Rokeach. The Open and Closed Mind (New York: Basic Books, 1960). 25 For two excellent collections of material relevant to this point. see W. G. Bennis et al.. !11terperso11al Dynamics, rev. ed. (Homewood, IL: Dorsey Press, 1968), and R. Wylie, The Self Concept (Lincoln : University of Nebraska Press, 1965). 26 E. Goffman. "On Face Work: An Analysis of Ritual Elements in Social Interaction," Psychiat1y 18 ( 1955): 213-231. 27 J. Luft, "The Johari Window," Human Relations and Training News (January 1961): 6-7. 28 M. R. Singer, Perception and Identity in lntercultural Communication (Yarmouth, ME: lntercultural Press, 1998). 29 Adler, International Dimensions of Organizational Behavio1: 30 I. Varner and L. Beamer, illtercultural Communication in the Global Workplace (New York: McGraw-Hill, 2004): 34. 31 R. Nisbett, The Geography ofT/wught (New York: Free Press, 2004). 32 Ibid.: 78-84. 33 M. Bennett, J. Bennett. and C. Stiller. "The D.I.E. Model." http://www.intercultural.org/pd!i'dic.pdf. Accessed I 0/31/05 . 34 H. H. Kelley. "Attribution in Social Interaction," in E. E. Jones et al. (eds.), Attribution: Perceiving the Causes of Behavior (Morristown, NJ: General Learning Press, I 972). 35 L. Pye, Chinese Negotiating Style (Cambridge, MA: Oelgeschlager, Gunn, & Hain, 1982). 36 L. Ross, "The Intuitive Psychologist and His Shortcomings," in L. Berkowitz (ed.), Advances in E.xperimellfal Social Psychology IO (Orlando, FL: Academic Press. 1977): 174-220; and A. G. Miller and T. Lawson, "The Effect of an Informational Option on the Fundamental Attiibution Error," Personality and Social Psychology Bulletin 15 (June 1989): 194-204. 37 Zalkind and Costello, "Perception." 38 E. Weingarten, "A Study of Selective Perception in Clinical Judgment," Joumal of Personality 17 ( 1949): 369-400. ( / ( GROUP DYNAMICS AND WORK TEAMS S By the end of this chapter, you should be able to: A. List the benefits and liabilities of teams . B. Identify what requirements must be in place to set the stage for successful work teams. C. Describe two models of group development. D. Distinguish between group content and group process. E. E~plain and diagnose group process behaviors that either help or hinder group ettectiveness. F. Describe and recognize task and maintenance behaviors. 01 · There are teams and there are hot teams. On hot teams work is engaging-and when the day ends, people look forward to tomorrow. On hot teams everyone gets more done without some supervisor breathing down the team's collective neck. What's more, hot teams trust their leaders and therefore they adapt quickly to new directions, improvising solutions on the spot and expending the extra effort necessary to follow through under changing conditions. Not every management initiative or company project requires a hot team. Hot teams are vital when your big objectives have a high level of "task interdependency." Task interdependency measures just how much the actions of any single associate influence the success of another's and the team's overall results. When people can do their jobs with their heads down-giving assignments their best effort but with Jillie concern about the effect of their decisions or behavior on others-and the group can still at:hieve its big objective, task interdependency is low and hot teams are not crucial. On the other hand, when the individual's willingness to look beyond selfinterest and t:ommunicate, coordinate, and cooperate with others t:an make or break the team's sut:cess, task interdependency is high and hot teams are critical. It's a hot team 's need for each member to recognize the effect of individual decisions and behavior on others and to adapt for the good of the group's objet:tives that makes leading them a bigger challenge than managing an ordinary work group. The challenge arises because bewming a hot team is a choice work groups make based on how they feel. Those feelings are the result of how each associate relates from day to day. 247 248 PART 2 CREATING EFFECTIVE WORK GROUPS When relationships are poor, people are uninterested in the impact of their decisions and work style on others and unwilling to expend any extra effort to pull together as a team. Team members tend to be rigid, insensitive, and self-centered. However, when relationships are good, team members tend to be empathetic, flexible, and generous with each other-when there's a rift, a hot team will resolve it quickly. They take the initiative and look out for each other with an eye on the big picture. Organizations fail to follow through on half of all management initiatives-and hot teams are an incredibly effective way to improve that terrible statistic. Tom Kelley, general manager of IDEO, an internationally respected and innovative design company, learned exactly what to do to turn ordinary work groups into hot teams. A PROTOTYPE FOR CREATING HOT TEAMS "Our learning [about hot teams] came from being in the trenches," Kelley, who is also the author of The Art of /1111ovatio11, told me. "That kind of ' Hey that worked . .. . Boy that was stupid . . . . Yikes, let's never do that again' knowledge you only get when you 're busy doing. Most experts go from the general to the specific. Our understanding comes from the other direction . We didn't systematically toy with the variables. We just built a prototype. If something worked, we noticed it and stuck with it." IDEO's simple prototype for creating hot teams started with the things that Kelley learned (through trial and error) you must remove from your environment to cultivate great relationshipswhat I've labeled the don ' ts of hot teams. Here are two of the most important: • Don't let your group become rule-bound . • Don ' t be mean. Don't Let Your Group Become Rule-Bound Becoming rule-bound is a common and unintended outcome of a useful business practice called process. Process is all about standardizing tasks-highlighting inefficiencies and inconsistencies to reduce defects and increase reliability and repeatability. Process also helps create boundaries in the workplace so everyone can work together more easily. But most companies take the discipline of process too far and get rule-bound. For example, a software firm needed a "process" for distributing office furniture. A committee met and decided. "Administrative assistants should not be given chairs with arms." Now Laura, an admin, was seven months' pregnant. She needed a chair with arms to sit comfortably. So her team swapped a chair (with arms) from an empty desk and gave it to her. The operations manager heard about the swap. That night she took that chair back to the empty desk. The next day Laura's team brought the chair back. Again, when everyone was gone, the ops manager took the chair away. But this time she followed up with a company memo: "Policy states, Admins don't get chairs with arms." This sort of thing happens all too frequently. Some rule-bound enforcer creates a process police state that represses any urge to become a hot team. Kelley says it isn' t only over-the-top, uptight enforcement that kills hot teams. Every impulse to create a rule must be carefully scrutinized. Don't Be Mean Facing tough competition , demands for higher returns, and intense time pressures, many executives feel they have no choice but to take a hard line. "We need to become lean and mean," they'll announce. They are half right. Lean is a business necessity. But mean does more harm than good. For example, the new CEO of a faltering enterprise insisted his 150 top executives get together every month on a conference call and report their results. During that call, he would single out anyone who'd missed budget to answer tough questions. "He'd ask you why in front of everyone," a former executive said. When one executive said he believed anxiety and unrest in his business unit was affecting performance, the new CEO said, "This is a test of leadership. You show me an organization that's wringing its hands, listening to rumors, anxious about the future, and I will show you leadership CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS ( that behaves the same way. People imitate their leaders. I can ' t believe this worry is fact-based . I believe their worry is ignorance-based. And if that's the case, it 's your fault." This kind of humiliation and manipulation usually produces bad outcomes. First , when executives are treated like "hand wringers" for saying something the boss doesn't want to hear, they learn to keep quiet and let problems turn into disasters. Second, most managers would do almost anything to avoid having to say in front of 150 of their peers, " I screwed up." Doing "almost anything" often gets companies in hot water. And that 's exactly what happened. Fifteen months after he was hailed for his tough mindedness and sense of urgency, the company stumbled badly both ethically and linancially and the stock price fell 71 percent. The CEO was asked to go away. Mean managers believe they are enforcing accountability. But, there's a fine line between enough and too much accountability. Cross it and a leader becomes a bully who attacks people instead of problems, ignores the effect of feelings, and causes people down the line to look for payback. Avoiding the don'ts won ' t produce a hot team all by itself, though . There are also things you must do. Four Do's for Hot Teams • • • • Like your people. Listen to them . Make work engaging . Let them decide. Like Your People ( Mark Kuroczko created a hot team simply by liking his people. Kuroczko was in charge of a small department responsible for writing technical manuals and spec sheets for a big banking organization. But instead of hiring people with communications degrees and years in the financial business, Kuroczko hired painters, musicians, novelists, and even a sculptor-creative types that he liked to be around . Because he liked them , Kuroczko was especially protective." I saw my job as manager to create a game preserve for creative beasts," he said. " I wanted to protect our little group of fun people, doing fun projects safe from the corporate types and bureaucratic interference." In return they showed Kuroczko something he never would have anticipated. One day an executive VP who couldn't get the help he needed from the bank 's main marketing communications department called Kuroczko and asked if he could take charge and do a critical four color brochure and some associated client proposals. Kuroczko said sure. When his team got hold of the project they were unbelievably responsive and inventive. "We gave him a faster turnaround and an easier interface," he remembered. "Since we knew the products and services from the technical side and we were creative al heart, we were able to write a better proposal and brochure. And the people reporting to that executive felt like we actually enjoyed helping them, which we did." Any manager who has dealt with creative types knows the difficulty of getting them to fol low through fast. Kuroczko found the answer. Show creative people you like them and they'll move heaven and earth for you (another demonstration of hot teamwork) . Listen to Them l Dave La Pouple managed a team of twenty for Clear Channel Communicatic;rns. He has discovered listening to associates is the key to making his team hot. "I've started giving everyone on my subteam, the six people of the twenty that are my direct reports, a weekly one-on-one. That oneon-one allows me to really listen to each person. "I've got one person with me eighteen months. She came in so unsure of herself. She's had some bad bosses and bad situations. But just by listening every week and saying, 'You can do it,' I am reinforcing her belief in herself. It 's made her a different person altogether. Listening works." Listening increases trust, makes expectations clearer, relaxes the barriers between people, and increases self esteem. 249 250 PART 2 CREATING EFFECTIVE WORK GROUPS Make Work Engaging A Stanford professor studied IDEO and found that IDEO employees are more engaged than employees at the average company. That's no accident, according to Kelley. "Creating a hot team is about mind set," he said. One of Kelley's favorite tactics is to create roles for everybody on the team to increase their sense of being "chosen." Look 1u-ound your team to get a sense of the different roles people play, Kelley advised. He suggests that teams assign someone to be the Visionary, the Skeptic, the Technologist, and the Sympathizer, among other characters. Roles, Kelley believes, let people feel special. Roles also let you use people for their strengths while avoiding (and protecting them from) their weaknesses. Let Them Decide One of Kelley 's other practices is to let people define their own work pace their own way, within budgets, never allocating space or creating rules controlling who does and doesn't get a chair with arms. He saw the great effects this "let them decide" mind set can have at one of the IDEO offices. Kelley was in a weekly meeting with one of his teams when the head of that team said, "We've got a problem . We need to add some people, but we're out of room. Any ideas?" Kelley bit his tongue to let the team decide . One guy spoke up. "Everything is on wheels here. If each person gave up one foot of space, by the end of the row we 'd have room for one person." There were two rows of eight cubicles, and so both sides trimmed back one foot apiece so they could accommodate two additional people. Everybody agreed this was the way to solve the problem. What impressed Kelley was that everyone willingly gave up a little of their personal space to solve a business problem. "Did everyone get squeezed a little?" Kelley asked. "Yes. But did anyone complain or let that get them down? No!" Giving employees the power to make decisions on their own is the opposite of being rule bound and hierarchical. And it has the wonderful side effect of making people behave more considerately and generously. HOT TEAMS-IMPRACTICAL OR PRACTICAL? "Morale is an expression of a work group's emotional health," organizational psychologist Harry Levinson wrote in his publication The Levinson Letter. "High morale groups (what we call hot teams) are built by managing in such a way that people 's psychological needs [as well as their physical needs] are met." A concerned executive wrote to Levinson with a familiar argument, "Yes, all that [about morale] is great, but our managers have to work under heavy pressure to get results." The executive explained to Levinson that perhaps in the future, his company's managers would have the time to cultivate such an ideal environment, where leaders met the psychological needs of their people in order to create hot teams. "But today," he told Dr. Levinson, "we can't afford the luxury of such idealism." I believe that executive was both right and wrong . Good business demands practicality. Every team is under the gun, every manager under pressure. Any patience for wasted time , money, or efforts is gone. But that manager was wrong to assume that the activities that turn average workgroups into hot teams are impractical or idealistic. Let me illustrate why I disagree with his assumptions with the following puzzle: Bob and Doug are lumbe1jacks in the Pacific Northwest. They both swing their ax at the exact same rate. Bob works nonstop from seven in the morning until three thirty in the afternoon, except for a 30 minute lunch break. Doug works the same schedule, but he takes an additional 10 minute break from swinging his ax every hour. That means Doug spends less time cutting trees (6 hours and 40 minutes a week less) than Bob. And yet, at the end of each week, Doug consistently cuts down more trees than Bob. Why? Doug spends those I 0 minutes every hour doing something very practical: he's sharpening his ax. Hot teams are not a luxury. When your work group's willingness to look beyond their self interests and communicate, coordinate, and cooperate with others can make or break achieving the big objectives, hot teams are what Doug's sharper ax is to cutting down more treesextremely practical. Source: L. Haughton, "Creating Hot Teams," Leader to Leader. 38 (2005): 7-12. ( CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS ( A. Read "Creating Hot Teams." B. Answer and score the Team Assessment Survey. C. Answer the following questions . 1. Focus on an effective group to which you belong (or belonged). a. List the norms (unwritten rules of conduct) of this group. b. How do you think the group developed these norms? 2. Now think about a poorly functioning group to which you belong(ed). a. List its norms. b. How do you think they developed'? ( 3. How would you go about changing the norms in a poorly functioning group? 4. What are the norms in your learning group or class? How do they hinder or promote learning'? D. While reading The Knowledge Base, think about the cues that you will look for in teams lo indicate whether they are managed well and functioning effectively. l 251 252 PART 2 CREATING EFFECTIVE WORK GROUPS Team Assessment Survey Think about a team on which you are currently a member (or your latest team) and rate the extent to which these problems exist. Circle the number which best reflects conditions on this team (I= "Low Evidence'', 5 = "High Evidence." Team Problems Low Evidence Some Evidence High Evidence l. Unclear goals 1 2 3 4 5 2. Low commitment to goals 1 2 3 4 5 3 . Unproductive meetings 1 2 3 4 5 4. Decisions not implemented 1 2 3 4 5 5. Lack of trust among members 1 2 3 4 5 6. Unequal work distribution 1 2 3 4 5 7. Communication problems 1 2 3 4 5 8. Lack of respect among members 1 2 3 4 5 9. Lack of innovation and creativity 1 2 3 4 5 10. Apathy or lack of involvement 1 2 3 4 5 11. No progress checks 1 2 3 4 5 12. Poor attendance 1 2 3 4 5 13. Conflict or hostility 1 2 3 4 5 14. Unclear task assignments 1 2 3 4 5 15. Lack of collaboration 1 2 3 4 5 Add up the points for each item to find your total score _ _ _ __ What does your score mean? 15-30 = Your team is in good shape; congratulations! 31-53 =Some bumps but probably still a functional team 54-75 =Time to apply what you learn in this chapter or bring in a consultant and do some serious team building . Suurce: Adapted from W. G. Dyer. Team Buildi1111: Issu es and Alrematives (Reading, MA: Addison-Wesley, 1987): 42-43; and D. Jaques, "Teaching Small Groups," BMJ 326 (2003): 492-494. To build a great company, you must focus just as hard on your people as you do on customers, partners, communities and stakeholders. You must have talented individuals working together as a team, who share a commitment to common values and a collective determination to execute one vision. 1 Michael Dell, Fo11nde1; Dell Computers Teamwork has become so commonplace in global business that teamwork skills are one of the top ten qualities sought by recruiters. The move toward teamwork is one of the most significant trends in business. Most U.S. companies utilize work teams and this number is expected to grow. 2 One impetus for incorporating teams into organizational structures ( CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS (~ comes from the need for speed and flexibility. Other reasons include increases in the complexity, uncertainty, and scale of tasks that must be accomplished in organizations. As the opening vignette illustrates, teams that work well-that are "hot" -can be extremely effective. They often can make decisions faster and more accurately and can handle larger tasks than can individuals. The use of teams to make a decision can also result in greater understanding of the decision and commitment to that decision. But, even though there is currently a tendency to see work groups as a panacea, they are not appropriate for every organization nor are they appropriate for every project or decision . The use of teams can result in increased costs (as more people are devoted to a Lask), slower decision making, decreased accuracy, and hurt feelings and damaged relationships if not managed properly. 3 Indeed , groups can often make more extreme decisions than individuals-sometimes making more risky and sometimes more cautious decisions .4 The key for managers , then, is to find ways to enhance the benefits and minimize the liabilities of teamwork. But first, we need to clarify what we mean by team effectiveness. WHAT Is TEAM EFFECTIVENESS? Although it is tempting to define group performance solely in terms of its production or efficiency, team effectiveness is a much richer concept that encompasses the following group, social, and individual componenls. 5 ( 1. Output The productive output of the team (i .e., its product, service, or decision) meets or exceeds the standards of quantity, quality, and timeliness of the team 's clients-the people who receive, review, and/or use the output. 2. Social Processes The social processes the team uses in carrying out the work enhance members' capability of working together interdependently in the future . 3. Learning The group experience contributes positively to the learning and personal wellbeing of individual team members. There are four questions that managers should ask themselves when working with teams. • • • • Is a team How can How can How can appropriate for this decision or task? I most effectively manage the team context? I most effectively manage the team members? I most effectively manage the team task and process? These factors are discussed in the following sections. l Not all decisions or projects should be assigned to a work group. Groups are more likely to be effective when conditions are right. For example, groups are more likely to perform better when the task, the members, and the organization meet certain conditions. 6 When tasks are uncertain, complex, large in scale or scope, or require inputs from multiple sources, groups are likely to be an effective way to accomplish those tasks. Other conditions also contribute to the use of teams as an effective method of solving problems. Members must have the requisite interaction and task skills and be willing and able to devote the necessary effort to accomplish the group task. In addition, managers should trust that team members will solve the problem in ways that meet organizational goals and not just team or personal goals . Finally, teams must be provided with the resources (e.g ., technology, time, information) and must be given sufficient responsibility and authority to accomplish their tasks. In order to succeed, teams require a common purpose and specific goals.7 It is also helpful to ensure that teams have a sense of group efficacy-a feeling that the team has the capability to 253 254 PART 2 CREATING EFFECTIVE WORK GROUPS successfully accomplish its task and a shared mental model, which refers to members' shared, organized understanding and mental representio11 of task-related and team-related knowledge. 8 Shared mental models seem to contribute to team performance and effectiveness when the team task requires interdependence. ( It is particularly critical that teams recognize that they are embedded in an organizational context. That context needs to be actively designed and managed to ensure optimal team performance. A supportive organizational context that recognizes and welcomes teamwork; provides necessary resources such as information, technology, and raw materials; provides the administrative and human resource infrastructure (performance appraisals, rewards, performance management); and legitimizes team work through top management support is a significant factor in ensuring team success. However, teams must also proactively manage their context. Often, team managers and members focus inward on the team process and fail to recognize that their external activities can be just as important as their internal ones. In fact, teams who proactively manage their external relationships tend to be more productive than those who do not. Exhibit IO-I describes important external activities that teams should undertake.9 Team skills. Team members need to have the appropriate mix of necessary technical, social, and team management skills to accomplish their tasks. Recent research found that team members should be proficient in the following skills: IO • Collaborative problem solving-ability to structure the team interaction to achieve the appropriate amount of participation • Conflict resolution-skill in handling cognitive conflict (conflict about ideas) and reducing emotional conflict (conflict about personalities, emotions, etc.) • Communication-ability to enhance open communication and use active listening techniques • Goal setting and performance management-skills in establishing goals and monitoring and coaching performance • Planning and coordination-skill in coordinating tasks, establishing roles, balancing workloads across members Motivation. In individualistic societies, such as the United States, working in groups does not always come as naturally as it does in more collectivist societies in which people feel a stronger sense of group loyalty. Phrases, such as "A camel is a horse put together by a committee, "reflect reservations about group efforts. And in fact, U.S . Americans sometimes contribute less effort to Role Activity Ambassador Manage upward relationships; market the team; lobby for resources; manage the team reputation Scout Gather information in the organization, market, and industry; manage lateral and downward searches Task Coordinator Manage lateral connections among functions and interdependencies with other organizational units; coordinate deadlines and nudge other units to fulfill commitments; get feedback on how the team is meeting expectations EXHIBIT 10-1 External Team Roles and Activities Adapted from D. Ancona, H. Bresman, K. Kaeufer, "The Comparative Advantage of X-teams," MIT Sloan Mwwge111e111 Review, 43 (2002): 33-39. \ CHAPTER l 0 ( GROUP DYNAMICS AND WORK TEAMS group projects than when they work alone. This is known as social loafing. This phenomenon was not observed in a comparison study with Chinese groups, presumably because this behavior is less likely in a collectivist society. 11 Nor do we lind this behavior in " hot" U.S. groups and teams described in the opening vignette. Regardless of the cultural context, social loafing is not inevitable. It can be reduced by making sure that each team member's contribution is identifiable (e.g ., communicating sales figures, profit margins, etc.) . Designing tasks so that they are intrinsically involving, attractive, or engaging also tends to minimize social loafing as members become motivated to perform their tasks. Finally, assigning responsibility and making that responsibility public tends to reduce social loafing. In fact, when teams set their own goals, they are less likely to experience social loafing. In addition, teams with a social identity tend to have less social loafing. Social identity refers to the perception of members as a "group," rather than as a set of unique i11divid11als, a11d a shared (usually positive) image of the group. 12 Establishing the proper level and type of rewards for accomplishments is critical for team motivation. One central issue is how to balance individual and team rewards. Many of us have had personal experience with group members who try to grab the credit or who do not carry their fair share or the work. Sometimes, managers react by simply allocating rewards on an individual basis. On the other hand, it is important to reinforce team performance and reward the group as a whole. Research suggests that both types of rewards are appropriate at different stages in the group's work. For example, when the stage of the group's task involves individual contributions (e.g., generating ideas), individual rewards should be given. In contrast, when the task requires a group output, rewarding the group as a team makes sense. Failing to establish the right balance can have disastrous results. 13 It is important to acknowledge cultural differences in rewarding teams and individuals. 14 Collectivist and individualistic cultures may differ in the value placed on each. Team-based rewards are generally more appropriate in collectivist cultures. The Japanese saying, "the nail that sticks up gets hammered down," indicates the cultural value placed on group rather than individual achievement. Many cultures have similar sayings. As a result, individuals in collectivist cultures are less likely to be motivated by incentives that cause them to stand out from their peers. For instance, rewarding the top sales team, rather than the top salesperson , is more effective in collectivist cultures. At times, pressure from external groups that focus on individual achievement can harm col lectivist team norms. For example, when New Zealander Sir Edmund Hillary 's team climbed Mt. Everest for the first time in 1953, the whole team agreed not to speak about which individual reached the summit first. The important thing, they decided, was that the team reach the summit, and to do so, they had to travel in single file. No individual could possibly have made it without the team . Then the journalists and nationalists in the United Kingdom and Nepal got into the act. The Nepalese feted Tenzing Norkay, the Sherpa who guided the group, parading him in a seat of honor atop the royal carriage. The rest of the team rode inside that carriage, not visible to the crowd . A U.K. newspaper was incensed at such behavior, insisting that Tenzing was only a servant/guide and that Hillary, the real leader, was the first to set foot on Everest's summit. 15 The ensuing bickering damaged the friendship between the two men. Composition and Diversity. Getting the right mix of team members is a critical component in assembling effective teams. In general, research shows that heterogeneous groups with a reasonable mix of task and interpersonal skills perform more effectively than more homogeneous groups. The trick is to establish the right level-too much heterogeneity and the group often becomes involved in unending conflict; too little and the group risks conformity and lack of innovation. Research on demographic diversity (e.g. , race, age, gender differences) likewise shows the importance of developing heterogeneous groups. In general, the key seems to be incorporating the input of diverse, multiple perspectives and ensuring that group values and goals are shared. Groups who successfully do this perform more effectively and are more innovative than groups who do not. 16 255 256 PART 2 CREATING EFFECTIVE WORK GROUPS Groups are not static. As they change and evolve over time, the key issues and concerns of members also change. Managers need to understand how groups develop and how to manage the group interaction and task processes at each stage. GROUP DEVELOPMENT In spite of years of experience in various sorts of groups-families, clubs, sports teams, work teams-we don't always take the time to carefully observe what was going on in the group or reflect on why the members were behaving as they did . 17 One of the factors that affects behavior is the group's developmental age. We act differently in a brand-new group than we do in a group that has been functioning for several years. Therefore, it is helpful to have an understanding of how groups typically develop, even though not all groups are exactly alike. Most groups evolve through stages. Effective team leaders help the group successfully weather each stage in which members confront specific issues that influence their behavior. The most well-known model of group development follows . 18 • Forming In this stage, members focus on accepting each other and learning more about the group and its purpose. This is a period of uncertainty, self-consciousness, and superficiality. Effective group leaders help orient members, clarify the purpose of the group, and work on establishing trusting relationships. By the end of this stage, members feel like they belong to the group. • Storming Members confront the issues of how much individuality they must relinquish to belong to the group and who will control the group. Tension, criticism, and confrontation are typical of this stage. The group becomes polarized, subdivides into cliques, and challenges the leader and others. Effective leadership involves helping the group focus on a common vision, modeling constructive conflict management , and legitimizing expressions of individuality that do not hinder productivity. Skilled leaders ensure that the group is a safe place for all members. They also reassure members that storming is a normal stage in a group's development, which paves the way for later productivity (unless the group becomes stuck in destructive conflict). • Norming Members develop shared expectations about group roles and norms . This stage is characterized by collaboration, commitment, increased cohesion , and identification with the group. Effective leaders continue to help set norms, provide positive feedback on the group's progress, and prevent groupthink. Groupthink is the tendency for members of a highly cohesive group facing a collective threat to seek consensus so strongly that they fail to explore alternative courses of action. 19 • Performing At this point, the group focuses its energy on achieving its goals and being productive. There is increased cohesion, acceptance of individual differences, and mutual support during this stage. Skilled leaders help the group run itself at this point, foster the development of group traditions, and encourage the group to evaluate its effectiveness. • Adjourning Temporary groups disband and focus less on perfo1mance and more on closure. In this stage, members struggle with holding on (nostalgia) and letting go (looking ahead to the future). Effective leaders encourage the group to reflect on, learn from, and celebrate its achievements. Another way to understand group development is the punctuated equilibrium model (see Exhibit 10-2). According to this model , the productivity of some groups can be described as periods of inertia or equilibrium that are punctuated by a transitional period of radical change that occurs at the midpoint of the group's calendar life.20 1. In the first meeting, the group sets its direction and does not reexamine it until the transition. 2. This is followed by Phase/, a period of inertia and equilibrium. 3. When the group has used up half its allotted time, a transition occurs that includes a burst of activity and a search for new ideas and perspectives. The group redefines its direction at this point. ( CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS ( MIDPOINT TRANSITION Burst of Activity High PHASE II Inertia and Equilibrium Group Redefines Direction Group Productivity FIRST MEETING COMPLETION Accelerated Activity Focus on Closure and External Expectations LAST MEETING Group Searches for New Ideas and Perspectives PHASE I Inertia and Equilibrium Group Sets Direction Low Midpoint Beginning End Group's Allotted Time Frame EXHIBIT 10-2 The Punctuated Equilibrium Model of Group Development Source: Based on C. G . Gersick. "Time and transition in Work Teams: Toward a New Model of Group Development," 1kade111y o(Mwwge111ew ( Jo11r11U! 31( I) (March 1988): 9-41 and "Marking Time: Predictable Transitions in Task Groups." Academy of"Ma11age111e111 Jo11mal 32(2) (June 1989): 274-309. 4. A second phase of inertia and equilibrium , Phase 2, follows the transition . 5. Accelerated activity Lakes place during the group 's last meeting in the completion phase. Regardless of how long groups have to accomplish their task , some of them do not "get serious" until half of their time has been used up . CONTENT AND PROCESS l In any group there are at least two classes of issues operating at any given point. One is the reason for the group's existence in the first place (e .g., Lo solve a particular problem). When we observe what a group is talking about, with regard to work that must be done, we are focusing on group content. When we try to observe how the group is functioning, we are talking about a second and equally important set of issues, group process. 21 There are two types of group process: task process and maintenance process. Task process fo cuses on how groups accomplish their work, in.eluding setting agendas, figuring out time frames, generating ideas, choosing techniques for making decisions and solving problems, and testing agreeme11t. Maintenan ce process concerns how gmups function with regard to meeting group members ' psychological and relationship needs . It includes issues such as leadership, membership, norms, communication, influence, conflict management, and dealing with difficult members and dysfunctional behaviors. Effective group members pay attention to both group content and process, so they can intervene when necessary in an appropriate manner. In some ways, the appointment of a chairperson or facilitator recognizes that groups do not always "stay on track." While appointing a leader is often useful, there are two potential problems with this approach. First, seldom do the group 25 7 25 8 PART 2 CREATING EFFECTIVE WORK GROUPS members spend any time discussing why they are "offtrack." More often the chairperson will say something like "We're getting off the main track, let's get back to it!" and that's all that happens. It is extremely important to realize that if people are having difficulty staying on track, there are reasons for the behavior and simply saying "Let's get back to it" does nothing to eliminate the basic causes. Worse than that, this kind of behavior ("Let's quit wasting time and get to the task") may further accelerate the underlying reasons for lack of involvement and make the situation worse. Second, there is no inherent reason that only one person in a group should have the responsibility for worrying about how the group is progressing. Everyone can and should share this responsibility. To delegate this function or role to just one individual is often a highly inefficient utilization of resources . People can learn to be skilled participant-observers in groups. In effective groups, anyone who feels that something is not right can and should raise the issue for the total group to examine. Anyone who observes a need for a particular kind of task or maintenance behavior can help the group. In a well-functioning group (working on something other than a routine programmable task), an observer looking in from the outside might not be able to pick out the formal leadership. The "leadership function" passes around according to the group's need at a particular point. It is important, in other words, to distinguish between leaders as persons and leadership as a function. For example, summarizing or gatekeeping (controlling the flow of information to the group) at the appropriate moment is performing an important act of leadership. To see the need and fail to respond can be viewed as a failure to fulfill one's membership responsibilities. Although work groups spend most of their time on content, a failure to address process issues usually prevents a group from reaching its maximum potential and accomplishing its task in a timely manner. It is often argued that "We don ' t have the time to worry about people 's feelings or to discuss how the group is working." Sometimes this is perfectly true, and under severe task pressure a different kind of process is necessary and legitimate. People can accept this, however, if they know from past experience that this situation is temporary. More often, however, lack of time is used as a defense mechanism to avoid the discussion completely. Furthermore, if a group is continually under severe time pressure, some time ought to be spent examining the effectiveness of the group's planning procedures. A group that ignores individual members ' needs and its own process may well find that it meets several times to make the same set of decisions. This happens because the effectiveness of many decisions is based on two factors-logical soundness and the level of psychological commitment among the members to the decision made. These two dimensions are not independent; in fact, some people who are uncommitted (often because of process issues) may withhold, on a logical basis, information necessary to make the soundest decision . In any event, the best decision (on a task or logical level) forged at the expense of individual commitment is not a very good decision at all. Effective facilitators are concerned with both productivity and commitment. The following sections focus on process issues that help us understand how groups function .22 COMMUNICATION AND DECISION MAKING One of the most easily observed aspects of group process is the pattern of communication: 1. Who talks? For how long? How often? 2. At whom do people look when they talk? a. Individuals, possibly potential supporters b. The group c. Nobody 3. Who talks after whom, or who interrupts whom? 4. What style of communication is used (assertions, questions, tone of voice, gestures, etc.)? ( CHAPTER 10 ( GROUP DYNAMICS AND WORK TEAMS These cues signal important group dynamics, such as who leads whom and who influences whom. Group decisions are notoriously hard to undo. When someone says , "Well, we decided to do it, didn ' t we?" any budding opposition is quickly immobilized. We can undo the decision only if we reconstruct and understand how we made it and test whether this method was appropriate or not. Here are some typical decision making methods we see in groups. 23 1. The plop: "l think we should appoint a chairperson." .. . Silence. 2. The self-authorized agenda: "'I think we should introduce ourselves. My name is Jane Allen ... " 3. The handclasp: Person A: "I wonder if it would be helpful to introduce ourselves?" Person B: "I think it would; my name is Pete Jones." 4. The minority decision : " Does anyone object?" or "We all agree, don ' t we?" Agreement or consensus may not be present, but it's difficult for others to object sometimes. 5. Majority-minority voting: "Let's vote and whoever has the most votes wins." 6. Polling : "Let 's see where everyone stands. What do you think?" 7. Consensus seeking: Genuine exploration to test for opposition and to determine whether the opposition feels strongly enough to refuse to implement the decision. It's not necessarily unanimity but essential agreement by all. Consensus does not involve pseudo-"listening" ("Let's hear Joe out") and then doing what you were going to do in the first place ("Okay, now that everyone has had a chance to talk, let's go ahead with the original decision") . Group decisions can be facilitated by altering the decision making procedures used by the team. In general, the idea is to lengthen what is termed the "solution evaluation" phase (in which the group generates and evaluates ideas and alternatives). Some methods for accomplishing that goal are listed below. 24 • Structured discussion principles Establish guidelines that emphasize analysis , solicitation of solutions, protection of individuals from destructive criticism, keeping the discussion problem-centered, and listing all solutions before evaluating them. • Second solution Require the team to generate at least two solutions. This has the advantage of forcing the team to evaluate at least two alternatives, which in turn enhances performance quality. This technique is particularly useful when teams are reluctant to implement more elaborate decision making procedures. • Procedures for generating and protecting alternative viewpoints Ask group members to assume the perspective of other stakeholders or constituencies (e .g., pretend you are a member of the marketing group; how will the marketing group react to this proposal?). Use the "twocolumn method" for all alternatives. For each alternative , members must identity genuine advantages and disadvantages (akin to drawing a line down a piece of paper and listing the pros and cons on each side of the line) . The group can also appoint a devil's advocate (a person assigned to specifically point out problems with the group decision and plw1s). It is important that this process generate authentic, rather than contrived , dissent. Sometimes groups generate "straw" arguments that appear to question the decision but actually are easy to refute. Rotating the devil 's advocate role among members is typically a useful procedure as well. GROUP COHESION Croup cohesion is the degree to which members are motivated to stay in the group. 25 Cohesiveness is a double-edged sword for managers because it can either enhance or impede group performance. Cohesive groups tend to be better at achieving their goals than are noncohesive groups. 26 Thus, cohesive groups that have the goal of increased productivity will be more productive . The converse is also true : cohesive groups that have goals that favor low performance indeed will perform more poorly. l 259 260 PART 2 CREATING EFFECTIVE WORK GROUPS Managers who want to increase group cohesiveness have a number of tools at their disposal. Group cohesion can be increased by: • Small size Smaller groups tend to be more cohesive than larger ones. • Success Groups who experience success have higher levels of cohesiveness than those who experience failure. • Common threat Providing groups with a common, shared threat or a common enemy is also a way to increase cohesion. However, the group must be perceived by its members as capable of responding effectively to that threat or enemy. Cohesion actually will decrease if the group is viewed as ineffective. • Exclusivity Groups that are more difficult to join or who have higher perceived prestige tend to be more cohesive. • Perceived similarity among members Groups that emphasize member similarities have higher levels of cohesion than those that emphasize member differences . Similarities include values, attitudes, shared experiences, educational background, and so forth. • Competition Competition with other groups or outsiders can increase cohesion-as long as the group has no interdependence with its competitors. For example, if two teams in one organization need to work together to accomplish a project, competition should not be encouraged because it may foster sabotage and other actions that decrease performance.27 TASK, MAINTENANCE, AND SELF-ORIENTED BEHAVIOR Behavior in the group can be viewed in terms of what its purpose or function seems to be. When a member says something, is the intent primarily to get the group goal accomplished (task) or to improve or patch up some relationship among members (maintenance), or is the behavior primarily meeting a personal need or goal without regard to the group's problems (self-oriented)? As the group grows and members' needs become integrated with group goals, there will be less self-oriented behavior and more task or maintenance behavior. Types of behavior relevant to the group's fulfillment of its task are the following: 28 1. Initiating For any group to function, some person(s) must be willing to take initiative. These can be seemingly trivial statements such as "Let's build an agenda" or "It's time we moved on to the next item," but without them, little task-related activity would occur in a group. People would either sit in silence or side conversations would develop. 2. Seeking information or opinions The clear and efficient flow of information, facts, and opinions is essential to any task accomplishment. "What do you know about this situation?" and "What solution do you recommend" are examples of seeking information from others in the group. Because decisions should be based on full information, information-seeking statements not only help the seeker but the entire group. 3. Giving information or opinions In response to the seeking behavior described in #2 or at their own initiative, group members can offer both information and their opinions to aid the group. Examples of giving-type statements are - "I have some information that may be relevant" or "My own opinion in this matter is ... " 4. Clarifying and elaborating Many useful inputs into group work get lost if this task-related behavior is missing. "Let me give an example that will clarify the point just made" and "Let me elaborate and build on that idea" are examples of positive behaviors in this regard. They communicate a listening and collaborative stance. 5. Summarizing At various points during a group's work, it is very helpful if someone takes a moment to summarize the group's discussion. This gives the entire group an opportunity to pause for a moment, step back, see how far they have come, where they are, and how much further they must go to complete their work. 6. Consensus testing Many times a group's work must result in a consensus decision. At various points in the meeting, the statement "Have we made a decision on that point?" can be very helpful. Even if the group is not yet ready to commit itself to a decision, it serves to ( CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS r~ o< •(') f•·tou"t' P< ' "'" " ""R •& ~ h~UP..,.Nf ·• 1•111 ti 1 ,.,,,...,, s, .. _. 111c ©1973 by Chicago Tribune NY News Synd, Inc. World Rights Reserved So111a: Reprinted by permission or the Chicago Tribune-New York News Syndicate. remind everyone that a decision needs to be made and, as such, adds positive work tension into the group and clarifies how much consensus building remains to be done. 7. Reality testing Groups can take off on a tangent that is very useful when creativity is desired. However, there are times when it is important to analyze ideas critically and see whether they will hold up when compared to facts or reality. This helps the group get back on track. 8. Orienting Another way of getting a group hack on track is through orienting behavior that helps the group to define its position with respect to goals and identify points of departurefrom agreed-upon directions. When questions are raised about the direction the group is pursuing, everyone is reminded of the group goal and has an opportunity to reevaluate and/or recommit to meeting it. The following behaviors are necessary to keep a group in good working order. These group maintenance roles help create a climate that permits maximum use of member resources : 1. Gatekeeping Gatekeeping, directing the flow of conversation like a traffic cop, is an essen- 2. 3. 4. 5. l tial maintenance function in a group. Without it, information gets lost, multiple conversations develop, and less assertive people get cut off and drop out of the meeting. "Let's give Joe a chance to finish his thought" and "If people would talk one at a time, I'd find it easier to listen and add to our discussion" are examples of gatekeeping behavior. Encouraging Encouraging also ensures that all the potentially relevant information the group needs is shared, listened to, and considered . ''I know you haven't had a chance to work it through in your mind, but keep thinking out loud and we'll try to help." "Before we close this off, Mary, do you have anything to add'?" Harmonizing and compromising These two functions are very important but tricky because their overuse or inappropriate use can serve to reduce a group's effectiveness. If smoothing over issues (harmonizing) and each party 's giving in a bit (compromise) serve to mask important underlying issues, creative solutions to problems will be fewer in number and commitment to decisions taken will he reduced . Standard setting and testing This category of behavior acts as a kind of overall maintenance function. Its focus is how well the group 's needs for task-oriented behavior and maintenance-oriented behaviors are being met. All groups will reach a point where "something is going wrong" or "something doesn ' t feel right." At such points, effective groups stop the music, test their own process, and set new standards where they are required. "Is the way we're tackling the problem working for everyone'?" Using humor The use of humor to put people at ease and reduce tension is an important maintenance function . However, the inappropriate use of humor can prevent groups from reaching their goals quickly and stop them from tackling uncomfortable issues that need to be resolved . For a group to be effective, both task-oriented behavior and maintenance-oriented behavior are needed. 261 262 PART 2 CREATING EFFECTIVE WORK GROUPS EMOTIONAL ISSUES: CAUSES OF SELF-ORIENTED EMOTIONAL BEHAVIOR The group process described so far deals with the work-facilitating functions of task and maintenance. But there are many active forces in groups that disturb work, which represent a kind of emotional underground or undercurrent in the stream of group life. These underlying emotional issues produce a variety of self-oriented behaviors that interfere with or are destructive to effective group functioning .29 They cannot be ignored or wished away. Rather, they must be recognized, their causes must be understood, and as the group develops, conditions must be created that permit these same emotional energies to be channeled in the direction of group effort. What are these issues or basic causes? 1. The problem of identity: Who am I here? How am I to present myself to others? What role should I play in the group? 2. The problem of control and power: Who has the power in the situation? How much power, control, and influence do I have in the situation? How much do I need? 3. The problem of goals: Which of my needs and goals can this group fulfill? Can any of my needs be met here? To which of the group's goals can I attach myself? 4. The problem of acceptance and intimacy: Am I accepted by the others? Do I accept them? Do they like me? Do I like them? How close to others do I want to become? Self-oriented behaviors tend to be more prevalent in a group at certain points in the group's life. In a new group, one can expect to see many examples of self-oriented behaviors. Members are unfamiliar with one another and a certain amount of"feeling out" is to be expected. Sometimes this takes place in after-hours social situations-"Why don't we get together after work for a drink?" Self-oriented behaviors can also be observed when a newcomer joins an already established group. It is not unlike the dynamics that develop when a new sibling arrives in a family. Everyone else may be sincerely happy with the newcomer ("We really need her resources"); nonetheless, this is now a "new" group. The old equilibrium has been changed and a new one must take its place. The potential destructiveness of self-oriented behaviors is highest just when the group most needs to be effective-when it is under stress. Groups, like individuals, sometimes regress to previous stages of development in times of stress. Effective leaders try to predict difficult transitions or events and minimize their effect. Ford's global teams refer to stressful periods and cultural tension points as "bumps" (e.g., when team members transfer in or out and when the team moves from planning to implementation). Types of emotional behavior that result from tension and from the attempt to resolve underlying problems follow. 1. Tender emotions: love, sympathy, desire to help, need for affiliation with others a. Supporting and helping others b. Depending on others c. Pairing up or affiliating with others 2. Tough emotions: anger, hostility, self-assertiveness a. Fighting with others b. Punishing others c. Controlling others d. Counterdependency 3. Denial of all emotion a. Withdrawing from others b. Falling back on logic or reason Individuals have different styles of reducing tension and expressing emotion. Three "pure types" have been identified: 1. The "friendly helper" orientation: acceptance of tender emotions, denial of tough emotions-"Let's not fight, let's help each other'', --can give and receive affection but cannot tolerate hostility and fighting . ( CHAPTER 10 ( GROUP DYNAMICS AND WORK TEAMS 263 2. The "tough battler" orientation: acceptance of tough emotions and denial of lender emotions-"Lel's fight it out"---can deal with hostility but not with love, support, and affiliation. 3. The "logical thinker" orientation: denial of all emotion-"Lel's reason this thing out"---cannot deal with tender or tough emotions; hence, shuts eyes and ears to much going on around him or her. BUT ••• Friendly helpers will achieve their world of warmth and intimacy 011ly by allowing conflicts and differences to be raised and resolved. They find that they can become close with people 011ly if they can accept what is dissimilar as well as what is similar in their behavior. Tough battlers will achieve their world of toughness and conflict only if they can create a climate of warmth and trust in which these will be allowed lo develop. Logical thinkers will achieve their world of understanding and logic only if they can accept that their feelings and the feelings of others (both tough and tender) are also facts and contribute importantly toward our ability to understand interpersonal situations. Exhibit 10-3 portrays the different orientation and characteristics of each type. These three, as described, are clearly pure types; the average person has some elements of each. Whal differentiates people is their predisposition toward a particular type. 2. Tough Battler l . Friendly Helper 3. Logical Thinker Best of All Possible Worlds A world of mutual love, affection, tenderness, sympathy A world of conflict, fighting, power, assertiveness A world of understanding, logic, systems, knowledge Task-Maintenance Behavior Demonstrated ( Harmonizing Compromising Gatekeeping by concern Encouraging Expressing warmth Initiating Coordinating Pressing for results Pressing for consensus Exploring differences Gatekeeping by command Gathering information Clarifying ideas and words Systematizing Procedures Evaluating the logic of proposals Constructs Used in Evaluating Others Who is warm and who is hostile? Who helps and who hurts others? Who is nice and who is not? Who is strong and who is weak? Who is winning and who is losing? Who is bright and who is stupid? Who is accurate and who is inaccurate? Who thinks clearly and who is fuzzy? Methods of Influence Appeasing Appealing to pity Giving orders Offering challenges Threatening Appealing to rules and regulations Appealing to logic Referring to "facts" and overwhelming knowledge Personal Threats That he or she will not be loved That he or she will be overwhelmed by feelings of hostility That he or she will lose his or her ability to fight (power) That he or she will become "soft" and "sentimental" EXHIBIT l 0-3 Orientation of the "Pure Types" That his or her world is not ordered That he or she will be overwhelmed by love or hate 264 PART 2 CREATING EFFECTIVE WORK GROUPS We can learn to use emotional resources more appropriately by: 1. Accepting our own feelings and acknowledging that each of us has both tender and tough emotions. 2. Understanding group behavior at the feeling level as well as at the logical level, as feelings are also part of the group's reality. 3. Increasing our awareness through observation and analysi s of the causes of emotions. By learning to recognize which events in the here-and-now trigger emotions, we can ga in better control of ourselves in a given situation and behave more appropriately. 4. Experimenting with expressing emotion differently and asking for feedback. Within some companies, managers (and particularly males) are expected to be tough, hard, and aggressive. Any sign of "tender emotions" (warmth, affection) may be perceived as a sign of weakness. However, feelings do not go away simply because we ignore them, and there is no question that emotions can affect group decisions. Given the opportunity to experiment with and get feedback on our emotional behavior (and a climate that supports such behavior), we can become more aware of when it is appropriate to be tough, tender, or neither.3° GROUP NORMS Another issue that must be addressed with respect to group process is group norms. A norm is an unwritten, often implicit rule that defines what attitudes and behaviors characterize a "good" group member versus a "bad" group member or what constitutes acceptable behavio1; attitudes, and feelings. Norms are the group's shared beliefs about appropriate behavior, attitudes, and perceptions concerning matters that are important to the group. All groups create norms as they develop and mature. In and of themselves, norms are neither good nor bad. The important point is whether or not the norms that exist support the group's work or act to reduce effectiveness. In this way, group norms control the behavior of members and make group life more predictable. Let's take a real-world example. The president of a multimillion-dollar multinational corporation wanted to make a major change in the way he and his three vice presidents functioned . The general pattern of behavior was such that each vice president would argue for decisions that would benefit his or her particular department. Turf battles and tunnel vision were standard fare during group meetings. It was the president 's desire to create what he called the "Office of the Presidency." When he and the vice presidents met, he wanted everyone to look at the issues before them from an executive perspective. In other words, he wanted everyone to focus on the corporation as a whole, looking al decisions through the "eyes" of a president. Clearly a host of group norms would have to change dramatically. Historically, no meeting ever began until the president arrived. After all, it was "his meeting." If the new philosophy was to be taken seriously, the "Office of the Presidency" had to function irrespective of who-as an individual-was present or absent. One Monday morning the three vice presidents arrived for their normally scheduled meeting. But one "small" problem had arisen: a devastating weekend snowstorm caused the president to be stranded 1,000 miles away. Still , several critical topics were on the agenda. After considerable anxious grasping for solutions (conference calls, private jets, and even prayer) and much nervous laughter, they bit the bullet. The "Office of the Presidency" was called lo order. An old norm had been changed. The pinch point occurred Tuesday morning at 8:00 A.M. , only now it was the president who felt the anxiety. To his credit, he asked to be informed as Lo the decisions taken by the Office of the Presidency in his absence. Any other behavior on his part, such as reopening decisions he personally did not like, would have violated and made a game of the new normative expectations. Fortunately, this president was aware of the importance of norms. Too many groups operate under the norm: "In this group, no one ever dares to question or suggest that we examine our norms ." As a result, there is an absence of standard setting and test- ( CHAPTER 10 ( GROUP DYNAMICS AND WORK TEAMS 265 ing and an implied punishment for anyone who engages in such behavior. Such a "Catch-22" norm is unlikely to facilitate the development of an effectively functioning group. CONCRETE EXPERIENCE AND REFLECTIVE OBSERVATION Just as norms may vary from group to group, they also may vary from culture to culture. The following vignette relates the "concrete experience" of one expatriate professor who taught overseas in Latin America. INTERNATIONAL EXAMPLE OF GROUP NORMS ( l I sat back in my chair, glancing around the handsome room with its graduation photographs of faculty members in full academic regalia, including some remarkably fetching scarlet robes and exotic headgear from a Spanish university. Finding it difficult to break an unconscious habit of punctuality, I have spent many moments alone in this room , waiting for colleagues to arrive . As a result, I learned to bring along small projects to occupy my time while waiting for those who live by a different internal clock. By now, other faculty members, all males except for myself, are dribbling in, responding to the external summons 01· a telephone call from on high, the Rector's (president 's) secretary. They enter with a lot of good-natured greetings and jokes and , as always, it is a pleasure to see them. In today's meeting, the dean is trying to get faculty support and compliance with policies and procedures that will improve academic standards and quality. As usual, I am intrigued by the norms in these meetings. Even though there are only I 0 people present, the dean jots down the names of the professors who wish to speak in the order in which they signal him. This order is respected in the beginning but becomes more dilticult to maintain when people want to respond immediately to the comments. At this point they are reminded by the dean or others that there are several people ahead of them in the queue. Occasionally, a senior faculty member is allowed to break in and make his comments without being reprimanded for being out of order. The result of the group's self-imposed structure is often a disjointed conversation with lots of looping back to previous points. There seems to be an unspoken expectation that everyone should speak at some point in the meeting, whether or not they are contributing a different opinion. The dean fields and reacts to each comment or question, immediately judging its worth. I am always surprised that one person, rather than the group, is granted the power to dispose of ideas that could possibly be developed and honed by more group discussion. If the communication pattern were graphed, it would show that a large majority of the comments are directed to and returned from a central hub, the dean. A much smaller percentage of the interactions occur laterally among the participants. Since I agree with the policies and am already complying with the rules, my most fervent wish is to have the meeting end quickly so I can "return to work." I sense no similar urgency on the part of my colleag ues; they are "at work." I decide to take advantage of the situation to clarify a practice I have never fully understood. I ask if students might not do better on future tests if their exams were returned to them. My suggestion is rapidly shot down with comments like, "This is the way it's always been done" and .. Students would take advantage of the policy you are suggesting." Except for another expatriate, no one appears to find any merit in my suggestion and the discussion quickly moves on . When the meeting ends, I head for yet another one with my departmental colleagues. I am immediately struck by the difference in atmosphere between the two meetings . Perhaps because we share many of the same values and because we have put in many hours and miles together, I feel more at ease, more listened to, and much more able to be myself in the second meeting. This group also has more experience working with women , so gender is not an issue. We are like a self-managed group in many ways. We begin a free-wheeling discussion in which everyone chimes in on a single topic until closure is reached , and then we move on to another point. We are tackling a topic that we chose ourselves-determining our regional strategy. Comments are directed to the entire group and everyone, including brand-new employees, apparently feels free to respond with his or her opinions, and even feelings . The group has a coordinator but not a formal leader. The coordinator helps keep the group on track at times but does not make the decisions . After vigorous discussion with clear differences of opinion, the group makes consensus decisions. It never occurs to me that I am a minority or an outsider in this meeting, even though I do not always agree with what my colleagues do or say. I don't find myself glancing at my watch in this meeting, and when we leave to return to our individual offices, I have a smile on my face . When I reflect on this situation, I see numerous cultural differences between myself, an American, and the other faculty members who are primarily Latin American . Although not all individuals or organizations fit these 266 PART 2 CREATING EFFECTIVE WORK GROUPS stereotypes, the following cultural differences are generally acknowledged and appear to influence the norms in the first meeting. A major difference is a polychronic versus monochronic orientation. People in monochronic cultures tend to be punctual and do one thing at a time in a linear fashion. In polychronic cultures, people pay attention lo several things al once; punctuality is less important than finishing other activities. In this example the monochronic American arrives on Lime and is disconcerted when one topic is not discussed until it is completed. The polychronic Latins arrive when it is convenient and easily track the various topics being discussed at once. For them, speaking out in the meeting may serve to maintain relationships and promote a sense of collegiality; in contrast, the norm that everyone should speak runs counter to a U.S. value of not wasting time. Other differences are that Latins tend to respect tradition and resist policy changes while many Americans value change, sometimes for its own sake. Decision making is more centralized and leadership is generally more authoritarian in Latin America, which explains why people grant the dean the right to pass judgment on suggestions. In comparison, Americans tend to be more participative and egalitarian. The take-a-number-to-speak norm is not found in all Latin groups; it may be somewhat unique to the dominant organizational culture. Hierarchical power is much less important in the departmental meeting. In general, however, there is a greater emphasis on control and rules in Latin cultures, accompanied by attempts to get around these rules. People with high status or connections are more successful at evading rules, which explains why senior faculty are not always obliged to respect the queue. In U.S. universities, senior faculty are also p1ivileged. Whal varies from school to school and country to country is the particular form that privilege lakes. In both meetings, there are norms that promote friendly relations and an institutional concern for excellence. Beyond these similarities, the two meetings are characterized by very different norms even though the cultural composition is fairly similar in both groups. Cultural differences are less significant in the departmental group than in the more formal faculty meeting. The smaller group is part of a cultural subgroup with values that are closer to my own and norms that I have helped create. As a result, only in the second group do I feel like a full-fledged member. Source: Adapted from J. Osland, " International Diversity: An Essay on Expatriates and Advanced Acculturation," in Diversity u11d Differences i11 Orgu11iwtio11: 1\11 Agenda jiir Answers u11d Questions. R. Sims & R. Dennehy (eds.)(Westport. Connecticut : Quorum.1993): I 07-121. TEAMBUILDING It is foolhardy to assume that simply because a group of people assembles to perform a task, it will somehow automatically know how to work together effectively.3 1 And yet many organizations make this assumption . Let's compare a football team with the typical management team. The football team spends untold hours practicing teamwork in preparation for the 60 minutes each week that its members' performance as a team really counts. In contrast, most management teams do not spend even 60 minutes per week practicing teamwork in spite of the fact that for 40 or more hours every week their behavior as a team really counts. For this reason, in recent years both management groups and work teams have undergone team-building training .32 Most team-building efforts encourage members to: 1. Establish their goals and priorities (What should we be working on?); 2. Define the roles that need to be performed (Who is going to do what?) ; 3. Examine and determine the procedures the team uses or should use (How are we going to do the work and make decisions?); and 4 . Examine the team 's interpersonal relationships and norms (How are we going to treat one another?). 33 Common complaints about personality problems in teams often have their root in the failure to clarify goals, roles, and procedures, so the order in which teams tackle these issues is important. TYPES OF TEAMS IN ORGANIZATIONS Self-managed teams. Downsizing strategies have eliminated supervisors and middle managers and delegated many of their functions to self-managed or self-directed teams. When they function well , such teams allow their members to make a greater contribution at work and constitute a significant competitive advantage for the organization. ( I CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS ( Self-managed work teams have the following characteristics. The teams determine how they will accomplish the goals they must achieve and how they will allocate the necessary tasks. Usually they are responsible for an entire product or process. The work teams take responsibility for planning, scheduling, organizing, directing, controlling, and evaluating their own work process. Some teams also select their own members and evaluate members ' performance. Leadership varies in these teams-some have no formal leader, others elect a leader, while still others have a formal leader assigned by management. Research shows that self-managed teams were rated as more effective in terms of productivity, costs, customer service, quality, and safety than traditionally managed teams. 34 Other company benefits are reduced absenteeism, lower turnover, and increased employee motivation. In terms of employee benefits, members of self-managed teams reported greater growth satisfaction, social satisfaction, and trust than did the members of traditionally managed groups.35 Virtual teams. As society and the global economy become more complex and as technology continues to advance, more and more of organizational life will revolve around a team or group structure. The "information explosion" will guarantee that no one person can expect to have all the facts necessary to make many decisions. "Temporary systems" in which a group of people join for a short-term task and then disperse to form new and different task groups to tackle other proble111s have become more prevalent. Virtual teams, in which members are geographically dispersed and seldom work face-to-face, have become more common. Virtual teams are defined as teams that work across space, time, and organizational boundaries with links strengthened by webs of communicatioll technologies." 36 Their popularity has necessitated a new term to distinguish virtual teams from conventional teams. which are now often referred to as-collocated teams. Some suggestions for effectively managing virtual teams follow : ( • Begin with a face-to-face meeting to foster the development of trust among team members • Clarify team goals and team roles that are not in conflict with commitments lo other work units • Designate a strong senior sponsor who protects the team and secures resources • Carefully implement efficient communication and collaboration processes that prevent misunderstandings and conflict escalation • Create experiences of interdependence within the team in order to compensate for feelings of disconnectedness, for instance via goal setting, task design, or team-based incentives • Share measurement systems and metrics across sites-the more comprehensive, the more useful • Align incentive systems across subunits and recognize team level efforts • Create knowledge management systems such as a team intranet, archives, index, and templates • Develop appropriate "kick-off' workshops and a team training concepts to prepare and support the teams for the specific challenges of virtual teamwork. 37 Multicultural and multinational teams. Another consequence of our global economy is the development of teams that consist of members from multiple cultures. Multicultural teams have representatives jiwn various ethnic groups but share a common nationality. Multinational teams (also transnational teams or global teams) are a collection of individuals, small in 11wnbe1; with representatives jivm more than one national background amollg them, who are inte1dependellt and mutually accountable for accomplishing a set of objectives, and who recognize themselves as a team. 38 These teams present special challenges as they tend to involve greater difficulty in creating a team identity, dealing with communication barriers communication styles, and computer-mediated communication, trol issues, managing cultural diversity and conflict, adjusting and handling geographic distances and dispersion. Although some suggestions for managing these types of teams include: 39 l that include language, different managing coordination and conto different interpersonal styles, much more research is needed , • Clearly define the team charter outlining the scope of the project, the expected deliverables, and the timeline 267 268 PART 2 CREATING EFFECTIVE WORK GROUPS • • • • • • • • • • • Overcome communication barriers by investing in language and cross-cultural training Agree on norms of behavior Adopt data-driven decisions Develop alternatives to enrich the debate (e.g., dialectical thinking and devil's advocates) Rotate meeting locations Cultivate a culture of trust Schedule face-to-face meetings to build a solid foundation and perform periodic team maintenance Rotate team leadership Link rewards to team performance Build social capital in the organization by helping managers build social networks outside their units Rotate personnel to different countries. Teams play an important role in organizational life today, and every indication points toward their increased importance in the future. 40 Teams work best when they share common methods of problem solving, decision making, and conflict management-topics that are addressed in subsequent chapters. SS The purpose of this exercise is to provide an opportunity to experience and study group dynamics and discuss effective teams. 41 (Time alloted: 90 minutes) STEP 1. Divide the class into an even number of groups of 8 to 10 people by counting off. The instructor will ask for a volunteer coder from each group and ask them to go outside the classroom to read their instructions on page 267. Students should then sit with their group in the location their instructor indicates (all the Ones together, the Twos together, etc.). The groups will then be paired (the Ones paired with the Twos, the Threes paired with the Fours, etc., depending on how many groups there are in the class). The paired groups will sit in two concentric rings of chairs, forming a tight inner circle (the odd-numbered groups) surrounded by an outer circle (the even-numbered groups) sitting directly behind people in the inner circle. Both groups face inward . When the coders return, they will sit outside the outer circle at opposite points so each coder has a clear view of a different part of the inner circle. STEP 2. Each group will have one turn in the inner circle and one turn in the outer circle in each of four rounds ; they will spend four minutes in the inner circle and four minutes in the outer circle (or whatever time periods your instructor chooses) in each round, as shown in the Activity Schedule on the next page. The team tasks you will perform when seated in the inner circle and the individual tasks you are to carry out when seated in the outer circle are described below. Inner Circle Tasks: In each round , when your team is sitting in the inner circle, your assignment is to a. Be the most effective group you can; and b. Create a list of the I 0 characteristics of effective groups and rank-order them. You are allowed to work on this assignment (a & b) only when your group is seated in the inner circle. At this time, you should act as if the other group is not present. ( CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS Outer Circle Tasks: ( In each round when your team is sitting in the outer circle, your individual role assignment is Lo act as observers and potential consultants Lo the other group. c. Carefully observe how the other group functions and write down your observations on the bottom of the Role Observation Sheet on page 272. Try to identify what they are doing that either impedes or facilitates their accomplishment of their two tasks. d. Use the Role Observation Sheet Lo keep track of the group roles carried out by the person who is sitting in the inner circle directly in front of you. (That same person should be observing you when you are working in the inner circle.) Do not talk witlz the other 111e111bers of your group while you are in the outer circle because it will distract the other group. To start, the Ones, for example, seated in the inner circle will have four minutes to work on a & b; the Twos will act as observers. When the four minutes are up and time is called; the Ones will immediately switch seats with the Twos and observe them at work for four minutes. Please switch seats quickly because the clock starts running for the following group as soon as time is called. The paired groups may b01rnw ideas from each other, but the goal is for each group to develop its own product. To summarize, your team has two roles: "doers'' when you are seated in the inner circle and "observers" when you are seated in the outer circle. Time Group Location Round 1 Group #1 Inner Circle Assignment a. Be the most effective group you can be b. Create and rank a list of the 10 characteristics of effective groups 0-4 min. ( Group #2 Outer Circle c. Observe and take notes on group process of other group d. Keep track of group roles performed by the 12erson seated in front of :LOU 4-8 min . Group #2 Inner Circle a . Be the most effective group you can be b. Create and rank a list of the 10 characteristics of effective groups Group #1 Outer Circle c. Observe and take notes on group process of other team d . Keep track of group roles performed by the person sitting in front of you Round 2 Repeat same process as Round 1 8-12 min. 12-16 min . Repeat same process as Round 1 Round 3 16-20 min. 20-24 min. l Consultation Period 24-29 min. Group #1 Group #2 Outer Circle Inner Circle Individuals consult with the person sitting directly in front/behind on the group process and roles they observed when seated in the outer circle continues on next page 269 270 PART 2 CREATING EFFECTIVE WORK GROUPS Round 4 Group #1 Inner Circle 33-37 min . Group #2 Outer Circle 38-60 min . New heterogeneous teams & Coder group Assigned locations 60-80 min. Plenary 80-90 min. Original groups Repeat same process as Round 1 ( 29-33 min. Discuss assigned group process topic and prepare presentation Team presentations and General Debriefing Questions Assigned locations Coders give feedback to their assigned group STEP 3. After the third round, members of the group in the inner circle will turn around to face the members of the other group who are seated directly behind them . Both people should act as consultants to one another and the other group. Tell the other person what you saw occuITing in his or her group and give some advice about how the other group could function more effectively. Then show the person what group roles s/he has been carrying out according to your Role Observation Sheet. The idea is for everyone to listen carefully to someone who has observed his or her group and lake back suggestions for group and self improvement. Thus, members of both groups have the opportunity to both give and receive advice during a five-minute period . Then complete the final round of the exercise. STEP 4. Each group submits its list of the characteristics of eftective groups to the instructor and remains seated. STEP 5. At this point, the coders will join together to prepare their feedback and discuss their observations. Everyone else counts off by four to form new heterogeneous teams. Each team will discuss a different aspect of group process that has a major impact on the life of any group or team . Our goal is to figure out what behaviors either hindered or helped group effectiveness during this exercise and become experts on one aspect of group process. a. Team One's task (all the number Ones) is to explore the concept of "goals" as they have influenced the life of the developing groups. You should look at goals from the perspective of those that were imposed on the group by the instructor, and those that evolved as the real group goals, which may or may not have anything to do with those established by the instructor. Did you see any individual goals that differed from the general goals of the group? Please develop specific examples of how individual and group goals influenced the life of the groups and helped determine their success. How can groups handle the problem of disparate goals? b. Team Two's task (all the Twos) is to look carefully at the "membership" criteria that prevailed in the groups. Membership in this case is equivalent to what behaviors were acceptable or not acceptable in terms of gaining entry to the group. During this exercise, some individuals gained greater membership than others CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS ( ( because of their behavior. What kinds of behavior or circumstances made some people less than "full" members? Why ? The group must understand not only what these criteria were but also how they influenced the feelings, motivation, and morale of the group itself. Please give examples of each of the criteria that you develop and examples of how they influenced the life of the groups. What can a group do to make everyone feel like a full member? c. Team Three's task (all the Threes) is to take an in-depth look at the behavioral norms, the implicit or explicit "rules of the game," that influenced the life of each group. How did the groups handle conflict and stress, make decisions, listen, generate ideas, allow certain language to prevail , and so on? Be sure that with every norm that you identify you note specific examples and make comparisons among the groups when it is obvious that some of the norms differed radically. What can groups do to ensure that they develop norms that help rather than hinder group effectiveness? d. Team Four's task (all the Fours) is to explore the kinds of leadership that developed in the groups-who had it, who took it, to whom it was given, and who if anyone was able to establish and maintain a real presence of leadership? What different kinds of behaviors did leaders demonstrate? What behaviors resulted in either resistance or a loss of leadership? Decision making is of specific importance here-how were decisions made, who made them, and how did this inl1uence the group? The names of individuals are not important but specific behaviors are because we can then begin to understand how the life of each group was influenced. If you observed different types of leadership, what were the pros and cons of each leadership style? What can a group do to promote the type of leadership that is most effective for that group? You will all have 20 minutes to develop an understanding of your particular concept and prepare a 2-3-minute presentation. STEP 6. Each of the four teams presents its findings and examples. STEP 7. General Debriefing Questions a. Did your group act out all the characteristics on your list? Why or why not? b. How would you describe the relationships between the paired groups? Did you see any evidence of competition? If so, what triggered the competition? Did the groups learn from watching each other? Why or why not? c. What was the result of the consultation period? Why did this result(s) occur? d. What did you learn about the way you behave in groups? STEP 8. Students should reform into their original group so the coders can present their communication feedback to the group they observed. What are the implications of the communication pattern that emerged? What are the consequences of talking a lot in a new group and talking very little? ( 10 minutes) ROLE OBSERVATION SHEET Purpose: Learn to recognize specific group roles by watching a team member in action during the Inner-Outer Exercise. When you are sitting in the outer circle, put a hatch mark in the "Frequency Observed" column each time your assigned person (the one sitting directly in front of you) in the inner circle performs the following roles. l 271 272 PART 2 CREATING EFFECTIVE WORK GROUPS Group Task Roles Frequency Observed l. INITIATING-Proposes, suggests, recommends 2. SEEKING INFORMATION/OPINIONS-Asks for information, viewpoints, suggestions 3. GIVING INFORMATION/OPINIONS-Offers information, viewpoints, suggestions 4 . CLARIFYING/ELABORATING-Clarifies and elaborates ideas 5 . SUMMARIZING-Sums up group's progress 6 . CONSENSUS TESTING-Checks for agreement 7 . REALITY TESTING-Asks whether ideas will work or fit the facts 8. ORIENTING-Gets group on track, signals departure from goals Group Maintenance Roles Frequency Observed 1. GATEKEEPING-Directs flow of conversation, promotes participation 2. ENCOURAGING-Expresses warmth, friendliness, encourages, acknowledges 3. HARMONIZER-Mediates disagreements, reconciles differences 4. STANDARD SETIING AND TESTING-Suggests standards for way group operates; checks for satisfaction 5 . USING HUMOR-reduces tension Also observe the group process of the other team as a whole. Is everyone participating? How are decisions made? Do they seem to enjoy working together? How are they accomplishing the task? Be prepared to coach your assigned person on how to improve his or her team's performance. Your observations of their group process: Your advice for that team: CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS CODER INSTRUCTIONS ( Your task is to unobtrusively chart the communication that takes place in your group, using the Coder Chari on the following page. Please don't Lalk or distract the group in any way and don't tell them what you are doing. 1. In the Coder Chart, write down the names of the people in your group in the same order they are seated, both horizontally and vertically, before Round I begins. 2. Whenever your group is seated in the inner circle in Rounds 1-4, please code their communication as best you can . You won't catch everything, but it should be a good sample of what occurred. When your group is in the outer circle and during the consultation period, you can reflect on what you observed. 3. When a person speaks to another group member, please code who is speaking to whom and how often by putting a mark in the box that intersects the speaker's name on the side with the target of the communication, whose name is listed along the top. If it is a statement, write down a hatch mark. If it is a question , write down a question mark. ( The way to tell to whom a remark or question is addressed is to watch the eyes of the speaker. If the speaker is clearly making an effort to make eye contact with the whole group while talking (scanning) or is not looking al anyone when speaking, count the target as the "group" as a whole (the first column). Otherwise, count it as a communication directed at the person whom the speaker is looking al when he or she finished talking. That person is usually the one we are trying lo influence or looking to for support. So even if the person has looked at other people while talking, code the communication in the box of the last person the speaker looked al. 4. Write down any observations you have about the way the group is communicating or functioning on the bottom of the Coder Chart. Does anyone seem left out of the discussion and, if so, why? Is there a dominant person or subgroup that is controlling the communication? Is anyone exhibiting Lask behavior? Is anyone exhibiting group task or maintenance behaviors? 5. After Round 4, add up the marks vertically and horizontally and prepare your feedback for the group. Stick to observable facts rather than interpreting the data you gathered and remember to deliver the feedback in a nonevaluative fashion so that no one becomes defensive.You can practice this feedback with the other coders while the heterogeneous groups are preparing their presentations. 273 Coder Chart-Who Speaks to Whom? N -...] .j:>.. Target 1 Speaker 2 3 4 5 6 7 8 9 10 Total Group :y; ~ t-..) () ;;o m 1 ~ z C> 2 m "'Tl "'Tl m () --i 3 < m 4 ;;o 7' ~ C> 0c 5 ""1:1 (/) 6 7 8 9 10 Total Code: Statements Observations : f ~ Questions !????I ------.. CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS ( ( \ l 1. To set the stage for successful work teams, organizations require supportive top management, an organizational climate and policies that promote teamwork, teams with a common purpose and specific goals, and supervisors and team members who have the necessary skills to make teams function . Teams need resources, authority and responsability and benefit from group efficacy and shard mental models. 2. To use teams effectively, managers should first determine if a team is the best way to make a decision. Managers also should be concerned with managing the team context, members, task , and process. 3. Managing the team context involves securing resources, managing the team's reputation, and coordinating with other organizational units. 4. Managing team members requires ensuring that members have the appropriate mix of skills, abilities, and other attributes. 5. The five-stage model of group development consists of forming, storming, norming, performing, and adjourning. 6. The punctuated equilibrium model describes group productivity as periods of inertia or equilibrium that are punctuated by a transitional period of radical change that occurs at the midpoint of the group 's calendar life. Productivity accelerates again right before the group 's time is completed. 7. In any group, there are two types of issues operating at any given time : content and process. Content issues refer to the task, "what" the group is working on. Process issues refer to "how" the group is functioning. 8. Task process focuses on how groups accomplish their work, including setting agendas, figuring out time frames, generating ideas, choosing techniques for making decisions and solving problems, and testing agreement. 9. Maintenance process concerns how groups function with regard to meeting group members' psychological and relationship needs. It includes issues such as leadership, membership, norms, communication, influence, conflict management, and dealing with difficult members and dysfunctional behaviors. 10. By observing communication patterns and decision-making procedures, we can understand better how a group functions. 11. Maintenance behaviors are geared toward creating a good climate for work and good relationships that permit maximum use of member resources. They are gatekeeping, encouraging, harmonizing and compromising , standard setting and testing, and using humor. 12. Task behaviors contribute to accomplishing the group task or goal. They consist of initiating, seeking or giving information or opinions, clarifying and elaborating, summarizing, consensus testing, and orienting. 13. Groups need both maintenance and task behaviors to be effective. Groups that emphasize content and ignore their process are just as likely to fail as groups that emphasize process at the cost of task. 14. Groups can adopt procedures such as structured discussion principles, second solutions, and procedures for generating multiple perspectives to help them be more effective. 15. Self-oriented emotional behavior interferes with effective group functioning. Issues of identity, inclusion , power, acceptance, intimacy, and goal agreement occur and reoccur at various points in a group's development. 16. The "pure types" that represent the three different styles of reducing tension and expressing emotion are: a. The '" friendly helper" (tender emotions) b. The " tough battler" (tough emotions) c. The "logical thinker" (denial of all emotions) 275 276 PART 2 CREATING EFFECTIVE WORK GROUPS 17. However, each of these types can only create the type of climate in which they feel most comfortable by incorporating some of the perspectives of the other two types and accepting their dissimilarities. 18. We can learn to use our emotional resources better by: a. Accepting our personal feelings. b. Trying to understand the feelings that occur in a group. c. Trying to identify what causes our emotions to be triggered in a group. d. Experimenting with expressing emotion differently and asking for feedback. 19. Group norms are unwritten, often implicit, rules that define the attitudes and behaviors that characterize good and bad group members. All groups have norms. By making them explicit, a group can determine whether its norms help or hinder its effectiveness. 20. Ideally, all members of a group should be participant-observers so everyone can contribute to keeping the group on track and bringing up the need to discuss process issues that may be hindering the group. Group leadership should be performed by more than just the designated leader. 21. Groups that ignore their process often take longer to resolve content issues because process problems prevent commitment and full sharing of information. 22. It takes practice and effort to transform a group into an effective team. 23. Self-managed work teams are not appropriate in all situations, but they can be more effective and satisfying than traditionally managed teams. 24. Virtual teams consist of members who are not colocated. Multicultural teams consist of member who have different ethnic backgrounds but share the same national culture. Multinational teams consist of member who have different nationalities. Each type of team presents its own unique challenges that must be carefully managed. FOR EMPLOYEES • Employees who are expert team members understand that team effectiveness is everyone's responsibility. Whether or not they are the designated leader, they ensure that the team stays on track, manages its processes effectively, and performs well. • They have developed the necessary team process skills as well as their technical skills. Both are crucial for being a successful group member. • They exercise self discipline and do not disrupt the group or pursue distracting personal agendas. • They pay attention to group norms and work to set positive norms. When group norms are not useful, they speak up and initiate a discussion about whether they should be changed. • They try to influence the team to adopt an effective decision making process and ensure that the team adequately listens to multiple perspectives. Teams are more effective when this is done. FOR MANAGERS • Expert managers pay careful attention to the factors that contribute to team effectiveness. In particular, they focus on the following characteristics: • Common agreement on high expectations for the team • A commitment to common goals • Assumed responsibility for work that must be done • Honest and open communication • Common access to information • A climate of trust • A general feeling that one can influence what happens ( CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS ( • • • • • • ( • Support for decisions that are made • A win-win approach to conflict management • A focus on process as well as results Expert team managers know that groups of employees can have either a positive or negative impact on productivity and the work environment, depending on the norms and stances they have taken. They build cohesion and set positive norms. Expert managers recognize that informal leaders of employee work groups are important communication links for getting input, sending out trial balloons, and disseminating information about upcoming plans or events. Asking a work group to help establish norms can be very effective. It can be done by asking group members: • What would be effective behaviors at work? • How should we treat each other at work? • How should we make decisions? • How should we communicate? • Do we have any norms that are keeping us from being effective? To avoid the problem of social loafing on a team , experts reward the team on the basis or its results and on the basis of individual contribution to those results. They also make contributions identifiable and design tasks that are intrinsically engaging . Managing the group context is a key activity of expert managers . They focus outward as well as inward . Expert managers are truly pros at running meetings. They recognize that meetings can be useful when group input into plans or decisions is important. But, they are also careful to avoid unnecessary meetings. When conducting group meetings, they: • Prepare an agenda that is distributed beforehand so participants have time to prepare for the meeting • Put difficult topics in the middle of the agenda • Go over the agenda at the beginning of the meeting and clarify what the group wants to accomplish in the meeting • Assign roles: scribe (note taker), timekeeper, secondary facilitator if needed. They rotate the responsibility for chairing the meeting, giving everyone an opportunity to develop leadership skills and see, at the same time, how difficult it is to run a good meeting. • Set ground rules with a new group about how the group will work and make decisions, involving the group in the process as much as possible • Start and end on time-some groups set time parameters for each issue on the agenda • Guide but do not dominate the discussion • Encourage participation and listen carefully to all members • Encourage the open discussion of ideas and differences while discouraging personal attacks and insults • Summarize, at the end of the meeting, what was accomplished and prepare a responsibility chart that describes what needs to be done before the next meeting by whom and by when • Circulate the meeting summary within 48 hours of the meeting FOR ORGANIZATIONAL ARCHITECTS l • Organizational architects who know how to use teams well set the stage by designing a supportive organizational context. Their selection criteria, rewards, performance appraisal, technology, information access , and other procedures are congruent with how teams are used . • They provide the training necessary for the various types of teams they employ. • Their top management is committed to teamwork and works to remove obstacles that keep teams from succeeding. • Organizational architects understand that virtual teams perform better if they have an initital face-to-face meeting that allows them to build trust. 277 278 PART 2 CREATING EFFECTIVE WORK GROUPS ( The fa ce-to-face group working on a problem is the meeting ground of individual personality and society. It is in the group that personality is modified and socialized; and it is through the workings of groups that society is changed and adapted to its times. Herbert Thelen The topic of this assignment is to think back on a group experience that was significant for you. Choose an experience that intrigues you and about which you want to learn more. (You m ay wish to write about one of the exercises your learning group did in this course.) A. Concrete Experience 1. Objectively describe the experience (who, what, when, where, how). (2 points) 2. Subjectively describe your feelings , perceptions, and thoughts that occun-ed during (not after) the experience. What did others seem to be feeling? (2 points) B. Reflective Observation 1. Looking back at the experience, what were the perspectives of the key actors (including you)? (2 points) 2. Why did the people involved (including you) behave as they did? (2 points) C. Abstract Conceptualization 1. Relate concepts or theories from the assigned readings or the lecture to the experience. Explain thoroughly how they apply lo your experience. Please apply at least two concepts or theories and cite them correctly. (4 points) CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS D. ( 279 Active Experimentation 1. Whal did you learn about groups or teams from this experience? (I point) 2. What did you learn about yourself? (I point) 3. Whal action steps will you take to be more effective in the future? (2 points) E. Integration, Synthesis, and Writing 1. Did you integrate and synthesize the four sections? (I point) 2. Was the Personal Application Assignment well written and easy to understand? (I point) 3. Was it free of spelling and grammar errors? (2 points) ( ENDNOTES 1 M. Dell , ··Building Dell ." Global Agenda (January 2005): 155. 2 l "Teams ," Trainilig (October 1996): 64. See also J. R. Hollenbeck , D. S. DeRue. and R. Guzzo, " Bridging the Gap Between 1/0 Research and HR Practice: Improving Team Composition, Team Training. and Team Task Design." Human Resource Managemen/ , 43 (2004. Winter): 353-366. 3 N. R. F. Maier. "Assets and Liabilities in Group Problem Solving: The Need for An Integrative Function." Psychological Review 74(4) ( 1967): 239-249. -IM. E. Turner (Ed.). Groups al Work: Theo1:i• and Research (Mahwah, NJ: Erlbaum, 2001 ); J. A. F. Stoner. "Risky and Cautious Shifts in Group Decisions: The Influence of Widely Held Values; · Journal of Experimenwl Social Psrchology 4 ( 1968): 442-459. 280 PART 2 CREATING EFFECTIVE WORK GROUPS 5 J. R. Hackman and R. Wageman, "A Theory of Team Coaching." Academy of Managem ent Review, 30 (2005): 269-287; and J. R. Hackman, "The Design of Work Team," in J. W. Lorsch (Ed.), Handbook of Organizational Behavior (Englewood Cliffs. NJ : Prentice Hall, 1987): 315-342. For a recent review of the team literature, sec S. W. J. Kozlowski and D.R. Ilgen. "Enhancing the Effectiveness of Work Groups and Teams," Psychological Science in the Public Interest (in press). 6 Sec L. Thompson, Making the Team: A Guide for Managers (Upper Saddle River, NJ : Prentice Hall , 2004), and S. W. Kozlowski and D. R. Ilgcn, "Enhancing the Effectiveness of Work Groups and Teams. 7 J. R. Katzenback and D. K. Smith, The Wisdom of Teams (Cambridge, MA: Harvard Business School Press. 1992). 8 S. M. Gully, K. A. lncalcatcrra, A. Joshi , and J. M. Beaubien, "A Meta-Analysis of Team Efficacy, Potency, and Performance: Interdependence and Level of Analysis as Moderators of Observed Relationships," Journal ofApplied Psyc/10/ogy 87 (2002): 819-832; A. Bandura, "Social Cognitive Theory: An Agentic Perspective," Annual Review of Psychology 52 (2001):1-27; R. Klimoski and S. Mohammed, "Team Mental Model: Construct or Metaphor," loumal of Managemelll 20 ( 1994): 407-437 ; S. W. J. Kozlowski and D. R. Ilgen, "Enhancing the Effectiveness of Work Groups and Teams;" J. E. Mathieu. T. S. Heffner, G. F. Goodwin, J. A. CannonBowers. and E. Salas, "Scaling the Quality of Teammates' Mental Models: Equifinality and Normative Comparisons," Journal of Organizational Behavior 26 (2005): 37-56. 9 D. Gl adstein. "Groups in Context: A Model of Task Group Performance," Administrative Science Quarterly 29 ( 1984): 499-518; D. Ancona and D. Caldwell, " Bridging the Boundary: External Activity and Performance in Organizational Teams," Administrative Science Quarterly, 37 ( 1992): 634-635 ; D. Ancona, H. Bresman. and K. Kaeufer, ''The Comparative Advantage of X-Teams," MIT Sloan Ma11age111e111 Review 43 (2002): 33-39. ID M. A. West. Effective Teamwork: Practical Lessons fivm Organizational Research (Oxford, England: Blackwell, 2004) ; Thompson. Making the Team: A Guide for Managers ; M. Stevens and M. Campion, ''The Knowledge, Skill, and Ability Requirements for Teamwork,'' Joumal of Management 20 ( 1994): 503-530. 11 P. C. Earley, "Social Loafing and Collectivism: A Comparison of the United States and the People's Republic of China," Administrative Science Quarterly 34 (December 1989): 565-581 . 12 See S. J. Karau and K. D. Williams, " Understanding Individual Motivation in Groups: The Collective Effort Model ," in M. E. Turner (Ed.) , Givups at Work: Th eory and Research (Mahwah, NJ: Erlbaum, 2001 ); B. Latane, "The Psychology of Social Impact," American Psychologist 36 ( 1981 ): 343-356; S. Harkins and K. Szymanski, Social Loafing and Social Facilitation: Old Wine in New Bou/es (Beverly Hills, CA: Sage. 1987); N. Ellemers, D. de Gilder, and S. A. Haslam. " Motivating Individuals and Groups at Work: A Social Identity Perspective on Leadership and Group Performance;' Academy of Management Review 29(3) (2004 ): 459-478. 13 J. R. Hollenbeck, D. S. DeRue, and R. Guzzo, " Bridging the Gap Between 1/0 Research and HR Practice: Improving Team Composition, Team Training, and Team Task Design," Human Resource Managem ent 43 (2004. Winter): 353-366. 14 For more information on cultural differences in teams. see B. L. Kirkman and D. N. Den Hartog, "Performance Management in Global Teams," in H. W. Lane, M. L. Maznevski, J. E. Mendenhall, and J. McNett (eds.), Handbook of Global Manag ement: A Guide to Managing Complexity (Malden. MA: Blackwell, 2004): 250-272 and The Organizational Behavior Reader, 2007 . 15 J. Lipman-Blumen and H. J. Leavitt, Hot Givups (New York: Oxford, 1999): 25. 16 West. Effective Teamwork: Practical Lessonsfivm Organizational Research. D. R. Ilgcn, J. R. Hollenbeck, J. Johnson, and D. Jundt, ''Teams in Organizations: From Input-Process-Output to IMOI Models," Annual Review of Psychology 56 (2005): 517-543: D. A. Hanison, K. Price, J. Gavin, and A. Florey, ''Time, Teams. and Task Perfonnancc: Changing Effects of Surface and Deep-Level Diversity on Group Functioning," Academy of Management Joumal 45 (2002): 1029-1045. 17 The literature on group dynamics has grown to enormous proportions. See J. R. Hackman (Ed.), G1vups that Work (and Those that Don 'I) (San Francisco: Jossey-B ass. 1990); K. Fisher, Leading Self-Directed Work Teams (New York : McGraw-Hill, 1993); A. Zander, Groups at Work (San Francisco: Jossey-Bass. 1977) and Making Groups Effective (San Francisco: Jossey-Bass. 1982); and Turner, Groups at Work: Theory and Research , 2001 . 18 B. W. Tuckman and M. C. Jensen, "Stages of Small Group Development Revisited," Group and Organizational Studies 2 (4) (December 1977): 419-427; J. D. Rothwell, In Mixed Company: Small Group Communication (Fort Worth , TX: Harcourt Brace Jovanovich, 1992); and M. F. Maples, "Group Development: Extending Tuckman 's Theory," loumal for Specialists in Group Work 13( 1) ( 1988): 7-23. 19 Groupthink is not as pervasive as the popular literature might lead us to believe. One form of groupthink tends to occur when highly cohesive groups face a collective threat that questions the group identity. See M. E. Turner and A. R. Pratkanis. "A Social Identity Maintenance Theory of Groupthink," Orga11izatio11al Behavior and Human Decision Pivcesses 73 ( 1998): 210-235. For a review. sec M. E. Turner and A. R. Pratkanis, ''TwentyFive Years of Groupthink Research: Lessons from the Evolution of a Theory." Organizational Behavior and Human Decision Processes 73 ( 1998): 105-115. 20 C. G. Gersick, "Time and Transition in Work Teams: Toward a New Model of Group Development," Academy of Management Journal 31 (I) (March 1988): 9-41 ; and C. G. Gcrsick, "Marking Time: Predictable Transitions in Task Groups," Academy of Managem ent Journal 32 (2) (June 1989): 274-309. CHAPTER 10 GROUP DYNAMICS AND WORK TEAMS 21 ( For a discussion of the differences between content and process issues, see E. H. Schein, Process Consu/ra1ion: /Js Role in Organi;:,a1ional Del'elop111en1 (Reading, MA: Addison-Wesley, 1988) and Process Consu/ra1ion Re1·isi1ed: Building the Helping Relmionship (Reading. MA: Addison-Wesley. 1998). 22 Much of the following material has appeared in a variety of places and is a standard input into many training programs such as those conducted by the National Training Laboratory. This pa11icular material was abridged with permission of the author from " What to Observe in Groups." from Reading Book for Re/a/ion Training, C.R. Mill and L. C. Porter (Eds.). (Arlington, VA: NTL Institute. 1982), 28-30: and B. E. Collins and H. Guestzkow, A Social Psychology of Group Processes for Decision Making (New York: John Wiley, 1964). 23 This typology was developed by R. R. Blake. 24 M. E. Turner and A. R. Pratkanis. "A Social Identity Maintenance Theory of Groupthink." Organiz.aliona/ Behm•ior and Human Decision Processes, 73 ( 1998): 210-235: M. E. Turne r and A. R. Pratkanis, " Mitigating Groupthink by Stimulating Constructive Conflict." in C. De Dreu and E. Yan de Vliert (Eds.). Using Conflicl In OrganizaJions (London and Thousand Oaks. CA: Sage. 1997): 38-52. 25 D. Cartwright and A. Zander, Group Dynamics: Research and Theory (Evanston. IL: Row. Peterson. 1953 ). 26 ( S. E. Seashore, Group Cohesiveness in !he Industrial Work Group (Ann Arbor: University of Michigan. 1954): M. E. Shaw, Group Dynamics (3rd ed.). (New York: McGraw-Hill. 1981 ): M. E. Shaw and L. M. Shaw. "Some Effects of Sociometric Grouping upon Learning in a Second Grade Classroom." Journal of Social Psychology 57 ( 1962): 453-458. 27 Shaw, Group Dynamics; West. Ejfeclive Teamwork: Prac1ical Lessonsfrom Organizational Research (Oxford. England: Blackwell. 2004): Thompson, Making the Team: A Guide for Managers. K. D. Benne and P. Sheats. "Functional Roles of Group Members," Journal of Social Issues 2 ( 1948): 42-47: and E. H. Schein, Pmcess Consultation and Process Consultation Revisi1ed. 28 29 This section is based on Schein' s Process Consu/1a1ion. For another view of emotional behavior in groups, see W. C. Schutz, " Interpersonal Underworld." Ha1wll'd Business Review, 36(4) (July-August 1958): 123-125. and W.W. Liddell and J. W. Slocum. Jr.. "The Effects of Individual Role Compatibility upon Group Performance: An Extension of Schutz's FIRO Theory," Academy of Manage111en1 Journal 19 (1976): 413-426. 30 One such process for learning how to work more effectively in groups is called broadly ''laboratory training." For a full discussion of this and related educational techniques. see E. H. Schein and W. G . Bennis, Personal and Organizational 281 Change Through Group Methods: The Laborato1:v Approach (New York: John Wiley, 1965). JI Ibid. -' 2 For good descriptions of team building. see W. G . Dyer. Team Building: Proven Stra1egiesfor /111prm'ing Team Performance (41h ed.) (San Francisco: Jossey-Bass 2007); and R. Fry, I. Rubin, and M . Plavnik, ''Dynamics of Groups that Execute or Manage Policy:· in R. Payne and C. Coope r (Eds.). Groups al Work (New York: John Wiley. 1981 ). 41-57. 33 R. Beckhard, "Optimizing Team-Building Efforts," Journal of Con1e111porary Business 1(3) (Summer 1972): 23-32. 34 C. C. Manz. and C. P. Neck, "Teamthink: Beyond the Groupthink Syndrome in Self-Managing Work Teams." Journal of Managerial Psychology, 10( 1) ( 1995): 7-16. S. G . Cohen and G. E. Ledford. Jr.. 'The Effectiveness of Self Managing Teams in Service and Support Functions: A Field Experiment," paper presented at the Academy of Management annual meeting, San Francisco, August 1990. See R. A. Guzzo. and M. W. Dickson, 'Teams in Organi zations: Recent Research on Performance and Effectiveness." Annual Review of Psychology 47 ( 1996): 307-339. For a discussion of team empowerment and group effectiveness. see J. Mathieu. L. Gibson. and T. Ruddy, "Empowerment and Team Effectiveness: An Empirical Test of an Integrated Model ," Journal of Applied Psychology 91 (2006): 97-208. 35 J. Lipnack and J. Stamps. Vir11wl Teams (New York: John Wiley & Sons. 1997): 7. 36 -' 7 G. Hertel. S. Geister and U. Koradt. "Managing Virtual Teams: A Review of Current Empirical Research,'' Human Resource Managemenl Review I 5( I) (March 2005): 69-95; S. Furst. M. Reeves, B. Rosen, and R. Blackburn , "Managing the Life Cycle of Virtual Teams," Academy of Management Exec111ive. 18(2) (2004): 6-20; C. Gibson. ' 'Yirtuality and Collaboration in Teams," in J. Osland. D. Kolb. I. Rubin. and M. Turner (Eds.). The OrganizaJional Behavior Reader (Upper Saddle River. NJ: Prentice Hall. 2007). 38 C. P. Earley and C. B. Gibson. M11/1ina1ional Work Teams: A New Perspec1ive (Mahwah. NJ : Lawrence Erlbaum Associates. 2002). 39 V. Govindarajan and A. K. Gupta, " Building an Effective Global Business Team ," MIT Sloan Managem e111 Review, 42(4) (2001) : 63-72. See Lipman-Blumen and Leavitt, Hot Groups, for an explanation and description of exciting. successful teams. 40 Adapted from R. W. Napier and M. K. Gershenleld, Making Gmups Work: A Guide for Group Leaders (Boston: Houghton Mifflin , 1983), 114-120. Reprinted with permission. 41 ( PROBLEM SOLVING fi CTl\f£S By the end of this chapter, you should be able to: A Explain the four stages of problem solving. B. Describe the red/green modes of problem solving. C. Identify the different roles a facilitator or manager plays during the problem solving process. D. Learn how to facilitate a problem-solving meeting. E. Explain Six Sigma and Appreciative Inquiry. F!Y T'\ [('J 'T ? IDEAS WAITING TO HAPPEN While some people claim that the route to innovation is indescribable, we believe there's often a simple, recurrent structure to creative thinking. Most original ideas aren't completely original, but instead are the result of two basic things: problems in search of solutions and solutions in search of problems. Both approaches have their advantages. If this seems odd, think of television game shows. Who Wants to Be a Millionaire looks for the right answer, while Jeopardy! starts with the answer and looks for the right question. Once a problem has been identified, how do you go about finding a solution? Watching your customers is a fine place to start. Rather than invent a new solution from scratch, you can take the imperfect, often Rube Goldberg* solutions that people have already found and improve on them. But consumer watching has its limits. While the unexpected reaction of consumers often signals that something is wrong with a product, there are many problems customers cannot solve on their own. This is because real-world consumers have limited resources. So an alternative tool is to ask how an unconstrained consumer would solve the problem. We call this approach "What would Croesus** do?" as a shorthand for imagining solutions where price is no object. These may lead you to a solution that is affordable. In his day, Howard Hughes had a Croesus-like flair for spending money to find solutions to problems. Imagine that it's 1966 and that you're Hughes. You sometimes have a hankering to watch old Bogart films. Unfortunately, the VCR has yet to be invented. What do you do? Hughes bought a Las Vegas television station and used it as his private VCR. Whenever he wanted, he'd call up the station's general manager and tell him what movie to put on that night. We understand that the station played a lot of Casablanca and The Maltese Falcon. *Rube Goldberg was a famous cartoonist known for drawing tremendously complex devices that perform simple tasks in convoluted ways. *''King Croesus ruled over Lydia in Western Asia Minor (now Turkey) from 56010 546 BC. The expression "as rich as Croesus" was based on his legendary wealth. The Lydians were the first people 10 mint coins. 282 CHAPTER 11 ( PROBLEM SOLVING In this spirit, our "What would Croesus do?" approach begins by imagining a customized and very expensive solution. We don't begin with a view that the solution has to be practical. Instead , we ask: Are there any solutions at all? Problem: Having to wait on hold at a customer service number Donald Trump or Bill Gates wouldn't spend much time on hold . They would have an assistant stay on the line and buzz them when the call goes through. Mere mortals can't afford personal assistants. Is there any way ordinary folks could emulate this "personal assistant" strategy? Well, yes. Instead of waiting on hold to speak with an airline customer representative, why not have the airline call you back? With caller ID, you wouldn't even have to enter your number. Waiting on hold is not only a pain for the caller but also expensive for the company if it's paying for a toll -free line . Huge sums are being spent right now on technology to move telephone support centers to low-wage countries. We invite airlines and other corporations to think about applying a little technology to the problem of making your customers less irate. ( Problem: Cash management for the household Your checking account earns next to no interest, yet you may be paying 6 percent on your mortgage. Why don't you just take all your cash and prepay your mortgage? That way you would effectively earn an extra 6 percent on your money. Unfortunately, this proposal is impractical. You need to have some cash to pay bills and cover emergencies. If you put all of your money into your mortgage, you couldn't get it back when you needed it. A modern Croesus-or any sizable corporation-could solve the liquidity problem by employing an assistant to do sophisticated cash management, using money market funds and a standby credit line. Ordinary folk can get the same result only by spending an inordinate amount of time shuffling balances back and forth. But what if the bank were willing to help out? What if the bank set up a combined mortgage/checking account that charges the homeowner only for the net indebtedness? A person with a $200,000 mortgage and a $10,000 checking balance would be charged mortgage interest only on $190,000. If you are a retail banker, your first instinct is to reject the idea. Your profitability hangs on having a certain number of customers with idle cash balances. Why give the homeowner an easy means to shrink checking balances or to prepay high-rate mortgages? But think about all the time customers squander right now trying to manage their cash. Wouldn ' t it be possible to price the combo account in such a way that the bank is as prolitable as before but the customer is still happy because he has been spared a lot of paperwork? In 1997, Richard Branson 's Virgin teamed up with AMP and the Royal Bank of Scotland to offer the Virgin One account, which nets cash balances against mortgage debt. Your salary is electronically deposited into this account. Any checks you write or credit card charges you incur are taken out of the account, thereby increasing your outstanding mortgage. By late 200 I, Virgin One had 70,000 customers. Today it's a very successful mortgage product in England. This creative idea was worth money. The Royal Bank of Scotland bought out Virgin and AM P's combined 50 percent share for $150 million in July 200 I. The combo account has come at long last to these shores. Wells Fargo launched a similar product in October 2002 and claims that it is its most successful product launch. Sometimes it isn't helpful to start the problem-solving process by identifying a problem. The solution has to come first. Only after we ' ve discovered a better way do we realize in retrospect that there was a problem to he solved. Take an existing solution and find a new application . Solution: Round-the-clock rental start times Avis rents cars 24 hours a day, starting any time of the day (or night). What 's the new application-that is, what other rentals should be flexible with the starting time? Anyone who's landed in Europe on an overnight flight can answer this question: hotel rooms. You arrive at 7:00 a.m . and want to shower and change, but it's six hours until check-in time. Hotels would have to make an effort to provide this convenience. Coordinating room cleanings should be more challenging. And reservations would have to include a check-in time to 283 284 PART 2 CREATING EFFECTIVE WORK GROUPS ensure that a room would be available. But if Avis can program its computers to handle the problem , surely Sheraton can, too. Some airport hotels have begun offering this service. We think that some city center hotels should follow suit, perhaps dedicating one floor for this service. Solution: Inflation-indexed bonds The U.S. Treasury protects you from unanticipated inflation by offering TIPS, or Treasury Inflation-Protected Securities. What else could be indexed? Municipal bonds. This has been done only a handful of times. They would be immensely attractive to investors who worry about both inflation and taxes. Right now investors in TIPS still face the risk of uncertain taxes on their returns because federal tax is due on both the real return (now about 2 percent) and the inflation kicker. If inflation hits 8 percent and the bonds start paying I 0 percent, your aftertax, net-of-inflation return will be in the neighborhood of negative 1.5 percent. A state offering an indexed return could probably offer a real return not much more than I percent to 2 percent and still get a lot of takers. Solution: Battery-operated spinners The Spin Pop, introduced in 1993, was one of the most successful new interactive candy launches ever. More than 85 million of these motorized lollipop holders have been sold worldwide. Hold your tongue steady and spin the candy against it. Now, what other question does the Spin Pop answer? After roaming the aisles of Wal-Mart, the Spin Pop creators found the right question: how to drive down the price of the electric toothbrush. Spin Pop gave birth to SpinBrush. In a little under four years John Osher and others turned a $1.5 million investment into a $475 million payout when Procter & Gamble bought them out. Sometimes flipping things around provides a useful solution to a different problem. What we call symmetry takes an existing solution in a given context and turns it around to get a new perspective. Inflation-indexed bonds are a great idea. Turn this around. Would it also work to borrow at an inflation-indexed rate? This flip leads us to the inflation-indexed mortgage. Each year your payments go up with the rate of inflation. In countries with high inflation, such loans are standard. Even with low inflation, such as the 2 percent in the United States, these loans would allow people to borrow up to 50 percent more or to start off with payments that are a third less. Young families could suddenly afford to buy a lot bigger house. For the most part, people find an answer that works and don't get in the habit of looking for an even better solution. Or we think there is some natural way of doing things and stop looking for alternatives . Take the ketchup bottle. Did you ever store one upside down in order to make it flow faster? How long did it take for Hunt's and H.J . Heinz to figure out they could turn the label upside down? According to Heinz's Casey Keller, the change was no small matter: "We believe this is probably the biggest idea in ketchup since the invention of the plastic squeeze bottle." In the old days Heinz used Carly Simon's "Anticipation" in its marketing. The updated campaign is "No wait. No mess. No anticipation." Ketchup is not the only product to take advantage of this insight: Toothpaste, shampoo and even sour cream are now available upside down. Coming up with a great idea is only the beginning of the battle. If you really want to change your company or the world, you need to sell the idea and you need others to buy in. In pitching an idea, try to make it familiar. It's hard enough for listeners to absorb a radically new idea. Don ' t make them also absorb a new context. Colgate has applied this rule brilliantly with its new Simply White tooth-whitening gel. The home-use tooth whitener is an unfamiliar product. Yet the Colgate product evokes a strong deja vu-its packaging bears a powerful resemblance to that for Wite-Out, the familiar typo corrector. Got a good idea? Don't get carried away with secrecy. If you can't make money on it yourself, share it The open-source movement in software development shows that a dispersed community of code writers can succeed in developing interlocking products that are free to the world. We propose an open-source movement for everyday ingenuity. If you generate valuable ideas, even ones that seem to speak for themselves, you are likely to be in demand to help put them into practice. Being known as an idea person tends to pay big rewards in our society. Instead of hoarding ideas · in hopes of a killer payoff, put the ideas out there and see what happens. l, CHAPTER 11 ( PROBLEM SOLVING Join us in cyberspace at http://www. why not.net. Add your ideas, come for inspiration and come to react to other people's ideas. We'll write about the best s ubmissions in our FORBES column. We ' ll also challenge industry leaders to respond to your ideas: Why haven ' t they already put these ideas into practice, or why won't they? So11rce: The preceding is adapted from Why Not ! How ro Use Ei·e1:rday /11ge1111iry /0 Soh'e Pmb/e111s Big and S111all. by Barry Nalebuff and Ian Ayres. Reprinted by permission of Harvard Business School Press. Copyright 2003 by Barry Nalcbuff and Ian Ayres. All Rights Reserved. Cre111irir.1·A1Wor/.: Nell'sfefler. Junuary 2004. A. Read "Why Not ?" and the following "Cardiotronics, Inc ." case . B. While reading the chapter, make a list or cues that you should look for with regard to problem solving. C. Role-Play Preparation. Make a plan to conduct tomorrow's meeting of Assembly team D as if you were Marion Andrews. Write in the space below your planned introduction to begin the meeting. What can you say to get it off to a good start and ensure a productive problemsolving session? Then develop a list of questions that Marion can use to facilitate and lead the Cardiotronics team throug h each stage of Kolb 's problem-solving model described in the chapter. What kinds of questions would facilitate good problem solving during the visioning stage , the priority-se tting stage , and so on ? For exampl e, in the visioning s tage , Marion could ask : "What would be the ideal situation here?" ( What will you say to the team to get this meeting off to a good start? Your Introduction for the Cardiotronics Assembly Team D Meeting: Write your facilitation ques tions for each stage below : l 1. Visioning/Exploration 2. Priority Setting 3. Information Gathering 4. Problem Definition 285 286 PART 2 CREATING EFFECTIVE WORK GROUPS 5. Idea Getting ( 6. Decision Making 7. Participation 8. Planning CARDIOTRONICS, INC. Cardiotronics, Inc., was started 17 years ago in a small New Hampshire town by two biomedical engineers whose goal was to produce a quality cardiac monitor (a device that continuously displays the wave pattern of the heart's function) . The company originally produced customized monitors on a small scale. After five years, the owners had perfected a quality monitor that was significantly less expensive than custom monitors, and they decided to mass produce it. The company currently has just over 200 employees. It remains nonunionized, but the labor union in this old New England milltown has from time to time made efforts to win a union election. For the past 11 years, the company has enjoyed a strong competitive edge and has gained a reputation for a quality product and prompt service. Recently, however, the company 's top-management team has been informed that a similar monitor, reputed to be of equal or better quality than Cardiotronics', will soon be introduced into the U.S . market by a large Japanese electronics firm. Monitor Assembly Process The cardiac monitors (excluding cables) are produced in four stages. In the first stage, circuit boards are produced largely by a machine process. During the second stage, the circuit boards are placed by hand on a motherboard and are connected to one another. The final step in stage 2 is the attachment of the motherboard to the base panel. In the third stage, the casing is mounted by hand onto the base panel and external hardware and cables are placed. In the final stage, the monitors are tested for a week before shipping. The Second-Stage Assembly Task Four assembly teams are responsible for the second stage of monitor assembly, the manual assembly and the wiring of the motherboard. Each team consists of five workers operating in a U-shaped area. The motherboard is started at station I. Each worker adds his or her circuit, connects it to the others, and passes it to the next worker. The assembly process requires some manual dexterity but is relatively easy to do. Each job on the line is of equal difficulty as determined by a recent industrial engineering study. The assembly arrangement for one of these teams, Team D, is as follows. CHAPTER 11 PROBLEM SOLVING Assembly Team D ( Fram Stage l ____.. Lee Smith In #1 _..Chris Jones #2 _... -. Pat Crane #3 To Stage 3 ~Adrian James ~ Terry From ~ Out #5 #4 The following are the recently announced assembly team average daily production figures for the last month: • • • • Team A =40 Team B = 32 Team C = 43 Team D = 35 boards boards boards boards Your Problem as Marion Andrews, Supervisor of Team D You are the new supervisor of Team D . You have been in the position for a month, having recently been promoted from the quality control section where you worked for five years. During your second week, you received a memo stating that all second-stage Learns have to meet their minimum daily production rates . You passed on this information to the Learn in a brief meeting but had to leave for a week of supervisory training shortly thereafter. After returning from the training program, you note that the daily production has increased to 36, but your team is still 4 units below the daily minimum rate of 40 units. In looking into the problem you note the following: ( • Work accumulates at Pat Crane's station #3 where there are typically several motherboards waiting. Pat is 58 years old and has been with the company for 13 years. The supervisors of the other production teams do not consider Pat acceptable for transfer. • Only one monitor from your Learn has been rejected in the past month by quality control , a belier quality record than the other teams have. • Your team 's assembly and test equipment is relatively new and in good working order. Team D 's assembly line will be closed for 30 minutes tomorrow, and you have decided to call a meeting for Team D. How will you conduct this meeting'? Use the guidelines in the Class Preparation to think through what you will say. No problem can be solved fi'om the same level of consciousness that created it. Albert Einstein For many scholars who study organizations and management, the central characteristic of organizations is that they are problem-solving systems whose success is measured by how efficiently they solve the routine problems associated with accomplishing their primary mission-be it manufacturing automobiles or selling insurance-and how effectively they respond to the emergent problems and opportunities associated with survival and growth in a changing world. Kilmann 's view is representative of this perspective: One might even defi11e the essence of management as problem defining and problem solving, whether the problems are well structured, ill structured, technical, human, or even environmental. Managers of organizations would then be viewed as problem managers, regwdless of the types of products and sen;ices they help their organizations provide. It should be noted that managers have often been considered as generic decision makers rather than as problem solvers or problem mw1agers. Perhaps decision making is more akin to solving well-structured problems where the nature of the problem is so obvious that one can already begin the process of deciding among clear-cut alternatives. Howe\'e1; decisions ca1111ot be made e.ff'ecti1•ely if the problem is not yet defined and if it is not at all clear what the alternatives are. can, or should be. 1 287 288 PART 2 CREATING EFFECTIVE WORK GROUPS In this view, the core task of management is problem solving. Views on problem solving, however, have expanded due to two major changes. First, more organizations are looking not at problems but at opportunities and what they do best. The discussion on Appreciative Inquiry is an example of this trend . Second, problem solving has been delegated in many organizations to employees, starting with employee involvement groups and total quality management to Six Sigma and project teams. Problem-solving techniques are now taught at all levels in companies that have a continuous improvement orientation. In addition to profiting from their ideas, involving employees in problem solving empowers them, gains their commitment to solutions, and develops their management skills. General Electric 's Work-Out program is a prime example of an organization-wide effort at involving employees in problem solving. Large companies have many competitive advantages due to their size. Unless they take special measures, however, they can also become inefficient, resistant-to-change bureaucracies characterized by rigid functional silos. GE addressed this danger with Work-Out, a program designed to cut through bureaucracy and across boundaries to solve problems fast with the help of people at all levels of the company. First, a large group of employees address a concern, a "target opportunity,'' identified by employees or senior management. Next, cross-functional and cross-level teams come up with recommendations. Finally, the teams present the recommendations to senior management who discusses the recommendations with them and, on the spot, accepts or rejects them. (This is similar to the action learning that takes place in the "Women and Global Leadership at Bestfoods" case, at the end of this book.) Work-Out has saved GE over $100 million. 2 Although it was designed to counter the disadvantages of a large bureaucracy, Work-Out has also been used successfully in small firms. Groups are used in solving complex problems when no one person has all the necessary information, skills, and diverse perspectives. Other people contribute new dreams, new ideas, information, and help in getting things done. As such, problem solving is not just a mental puzzle but also a social process that requires communication, perception, creativity, conflict management, and group and facilitation skills. Employees at all levels are more likely to be committed to implementing the solutions to problems if they have participated in the problem solving process. Therefore, the decision about who is invited to problem solving groups is critical. As a general rule, those who are likely to be critical in the implementation stage of a solution should be members of the problem solving team, along with those who have the most knowledge about the situation and the most power to change it. A MODEL OF PROBLEM SOLVING Some of the frequent mistakes people make in problem solving are failing to see the potential opportunities in problems, leaping too quickly to discussing potential solutions before completely analyzing the problem, and not focusing enough on implementation issues. The Kolb model of problem solving as a dialectical process 3 shown in Exhibit 11-1 is designed to prevent these mistakes. This structured approach to problem solving is designed to facilitate a thorough consideration of complex problems. This is a normative model, which means that it shows how a process is done ideally. Not surprisingly, the model is based on Kolb's theory of experiential learning found in Chapter 3. It consists of four analytical stages that coITespond to the four stages of the experiential learning cycle: Stage I, situation analysis, corresponds to concrete experience; Stage 2, problem analysis, to reflective observation ; Stage 3, solution analysis, to abstract conceptualization; and Stage 4, implementation analysis, to active experimentation . These four stages form a nested sequence of activities in that each stage requires the solution of a particular analytical task to frame the succeeding stage properly. The major focus of each stage is captured in these questions : Situation Analysis: What's the Most Important Problem? Problem Analysis: What Are the Causes of the Problem? Solution Analysis: What's the Best Solution? Implementation Analysis: How Do We Implement the Solution? The stages will be described in depth after we introduce another key element of the model, the dialectics of problem solving. ( CHAPTER 11 PROBLEM ANALYSIS SITUATION ANALYSIS ( VISIONING/ EXPLORATION INFORMATION GATHERING PROBLEM SOLVING SOLUTION ANALYSIS IMPLEMENTATION ANALYSIS IDEA GETIING PARTICIPATION Expansion: Green Mode Mind Set Contraction: Red Mode Mind Set PROBLEM DEFINITION PRIORITY SETTING Leader DECISION MAKING Inventor Detective PLANNING Coordinator Problem-solver Role EXHIBIT l 1-1 Kolb's Model of Problem Solving as a Dialectic Process ( l THE DIALECTICS OF PROBLEM SOLVING The process of problem solving does not proceed in a logical, linear fashion from beginning to encl . Instead, it is characterized by wavelike expansions and contractions alternatively moving outwardly to gather and consider alternatives, information, and ideas and inwardly to focus, evaluate, and decide. These expansions and contractions have been variously labeled as doubting/believing, green light/red light, and divergence/convergence. Elbow's 4 description of "doubting" and "believing" games is one way lo conceptualize the two different mind-sets required for problem solving. The first rule of the believing game is that people refrain from doubting or evaluating and instead focus on possibilities and how an idea could work. In contrast, the doubting game focuses on a reductive, structured, "objective" rationality. People with this orientation are constantly asking, "What's wrong with this?" As a result, they poke holes in ideas and arguments, torpedo assumptions, and probe in an analytical manner. Thus, problem solving is not the result of a single mental function such as logical thinking . Effective problem solving involves the integration of dialectically opposed mental orientationsthese are often referred to as reel- and green-mode mind-sets . The green-mode mind-set facilitates creative imagination , sensitivity to the immediate situation, and empathy with other people. The green-mode mind-set encompasses the expansion phases of problem solving-visioning/exploration, information gathering, idea getting, and participation. The red-mode mind-set, by contrast, facilitates analysis, criticism, logical thinking, and active coping with the external environment. The red-mode mind-set is, therefore, most appropriate for the contraction phases of problem solving-priority setting in situation analysis, problem definition in problem analysis, decision making in solution analysis, and planning in implementation analysis. Effectiveness in problem solving is enhanced by approaching the expansion/contraction phases of each problem-solving stage in the appropriate mind-set. For problem solvers to accomplish this matching of mind-set and problem-solving task, they must first become aware of when they are in the reel or green mode of consciousness and then learn to shift from one mode to the other. With some practice, this can be accomplished quite easily; practice in identifying and separating the two mind-sets usually has the effect of increasing the 289 290 PART 2 CREATING EFFECTIVE WORK GROUPS intensity of both modes. Managing the problem-solving process with groups of people (equir:es the creation of a climate that stimulates and reinforces the appropriate mind-set in participants as they move through each of the stages described in the following section. The problem-solving process is further guided by four roles that focus the dialectic interplay of red and green mind-sets on the relevant stage of the problem-solving process. In situation analysis, the problem solver adopts the role of a leader, focused on identifying goals and values in the situation in the green mode and setting priorities in the red mode. In problem analysis, the role is that of a detective, focused on gathering information in the green mode and building and evaluating models in the red mode. In solution analysis, the role is that of an inventor, generating ideas in the green mode and testing their feasibility in the red mode. In implementation analysis, the problem solver adopts the coordinator role, developing participation in the green mode and planning in the red mode. Conscious attention to these roles serves to focus attention on the priorities of each stage and signals the transition from one stage to another. We describe the stages of the problem solving model in more detail in the next sections. As you read through the discussion, think about how each of the roles comes into play during the various stages. ( In the situation analysis stage, our task is to examine the immediate situational context to determine the right problem to tackle. While problem-solving activity is often initiated by urgent symptomatic pressures, urgency alone is not a sufficient criterion for choosing which problems to address. As every manager knows, the press of urgent problems can easily divert attention from more important but less pressing long-term problems and opportunities. In reality, urgent problems are often the result of long-term unstructured problems that have never been addressed. For example, the continued urgent need to replace data entry clerks in a bank may result from the failure to address problems of low worker morale and lack of career opportunities within the organization . In this example, hiring to fill clerk vacancies is a structured problem, while low morale and the lack of a career ladder are unstructured problems. Structured problems are repetitive and routine, and definite procedures are developed for dealing with them. Unstructured problems are novel and not covered by ready-made procedures because they occur infrequently or are very complex. Situation analysis requires exploration to identify the problem that takes precedence by criteria of both urgency and importance. This is what is meant by the popular saying, "Managers do things right; leaders do the right thing." Problem finding is equally as important as problem solving. As Kaplan described it, "The manager gives form to a problem in the way a potter sees and then shapes the possibilities in a lump of clay. The difference is that managers practice their craft using an intangible medium: information." 5 For organizations in rapidly changing environments, aggressive opportunity seeking is essential to maintain stability and growth. Careful situation analysis is, therefore, most critical in those cases in which long-term adaptation to a changing environment takes precedence over expedient action . Visioning/exploration The visioning/exploration stage of the situation analysis is concerned with envisioning what is possible. When people discuss problems, they devote time to talking about how they would like the situation to be. For example, the technique of visioning involves asking people to close their eyes and imagine their ideal organization or program. This reflects the green mode (whereas the exploration of current realities represents the red mode). The process of articulating desired goal states is called visioning. A common error at this substage is to simply accept a problem as given, without considering the opportunities it may hold. For example, a hospital was scheduled to undergo its accreditation review process, which demands a good deal of time and effort. Rather than view this solely as a burdensome bureaucratic requirement, the administration chose to see it as an opportunity to improve both service and efficiency. Framing the situation as an opportunity rather than a burden changed the problems they chose to tackle. (, CHAPTER 11 ( ( PROBLEM SOLVING To be successful , the visioning process must overcome barriers that exist in some organizational settings. Foremost among these barriers is the organizational press to be realistic . Wishing, wanting, and visioning must be explored independently of reality for them to develop fully. Charles Lindblom 6 noted some time ago that it is easier to find agreement on a course of action than it is to get agreement on the goals for the action . Goals are a reflection of our values, and the discussion of values accentuates human individuality and emotional commitment with a resulting increase in conflicting viewpoints. In the dialectic view, such conflict is essential for the discovery of truth. Many managers, however, shy away from conflict because it is unpleasant and they do not know how to use disagreement constructively. A related barrier to visioning is the threat of isolation that comes from holding values or opinions that are different from those of the majority. This barrier gives rise to conformity and groupthink in problem finding .7 A worker, for example, may suppress his or her genuine values for achievement and excellence so as not to violate group norms of mediocrity. For this reason an effective visioning process requires an environment that gives security and support for individuality. The result of visioning is a menu of problems and opportunities. The group may choose one that satisfies the decision criteria of both urgency and importance. Priority Setting The contrasting pole to visioning in the situation analysis dialectic is priority setting. As with any dialectic, visioning and priority setting mutually enhance one another-visioning gives direction and energy to priority setting and priority setting gives substance and reality to visioning. Every managerial decision reflects values; choosing one problem as a priority reveals the values of the decision makers. Priority setting has three specific tasks: ( 1) to explore the current situation for those features that facilitate or hinder goal achievement, (2) to test the feasibility of changing those features, and (3) to articulate reality-based goal statements that give substance to values and allow them to be realized. Priority setting is not a rational, analytic process of reflective planning. It is an active, intuitive process of trial-and-error exploration of what is going on in the situation. It involves "knocking on doors," listening to people, trying things out, and taking risks. Taken as a whole, the central issue in situation analysis is leadership, and the basic social role of the problem solver is that of a leader whose responsibility is to guide the attention of the organization to those problems and opportunities whose solution will be of maximum benefit to the long-run effectiveness of the organization. Someone once said that the key to successful leadership is to find out which way people are going and then run out in front of them . There is an element of truth in this, for the successful leader in situation analysis identifies the values and goals involved and then holds up those that are most important as priorities for action. The priority that is chosen should be phrased in very specific terms as a goal that can measured, for example, ''Reduce cycle time for grant-proposal process by 20 percent within six weeks." In many instances, this stage identifies the gap between the ideal state and the current reality, the creative tension 8 that motivates people to take action . Once a problem or a target opportunity has been chosen , the group can move on to the next stage in the process. PROBLEM ANALYSIS-INFORMATION GATHERING AND PROBLEM DEFINITION The task of problem analysis is to understand and define the problem thoroughly. Common errors at this stage are defining the problem in terms of its solution or confusing symptoms with the problem's root cause. For example, the statement that ''Our problem is not having enough meetings" probably indicates that one or both of these errors have been made (or maybe just insanity). A careful analysis of the problem may indicate that more of meetings is just one of several alternate solutions and lack of meetings is a symptom of a larger problem (e.g., overwork, a staff that does not get along). Without an accurate problem definition, the right solution cannot be identified. l IHformation Gathering In the expansion mode of problem analysis, the group makes an effort to gather all the necessary information surrounding the chosen problem. This is a receptive, openminded phase in which information associated with the problem is sought and accepted. 291 292 PART 2 CREATING EFFECTIVE WORK GROUPS Depending on the type of problem that has been chosen, this phase can involve a wide range of activities: talking with people familiar with the problem, running statistics, looking at policies and procedures, or brainstorming with groups about things that get in the way of progress. Information-gathering has both a cognitive and interpersonal component. Cognitively, it is important to avoid biases and preconceptions about the nature of the problem and its causes in favor of letting the data "speak for itself." Interpersonally, information gathering requires skills in developing trusting relationships so that others do not hold back or modify information to say "what the boss wants to hear" or lo avoid reprisals. In many organizations, these two components negatively interact with one another to produce a climate that makes it difficult to gather accurate information. Mistrust and threat cause workers lo withhold information, and this sometimes forces management to rely on its own preconceived notions about the nature of problems. In this sub-stage, facts have to be separated from opinion, so that the eventual solution will be data-driven and based on solid ground rather than assumptions. Problem Definition In the contraction mode of problem analysis, the task is to define the problem based on the information gathered. Problem definition is basically a process of building a model portraying how the problem works-factors that cause the problem, factors that increase or decrease the strength of the problem, connections and relationships among elements, and symptoms of the problem. Complex problems usually need to be drawn visually so that everyone can follow the relationships. The resulting model of the problem separates out relevant and irrelevant information about the problem. Because it contains the factors and perhaps criteria that need to be managed to solve the problem, this problem definition guides the next stage, solution analysis. A task force at a community housing agency was trying to figure out why some of its grant proposals were not being funded. Some employees blamed the new grant writer. However, after interviewing everyone involved, including the funding agencies, the task force determined that the poor quality of certain grant proposals was due primarily to lastminule information from some programs. As a result, the grant writer did not have enough time to double check facts and intentions or to proofread all grants carefully before they were sent off. The task force then set off to gather more information to learn why some program heads did not respect the proposal deadlines. Apparently, the agency director had not communicated the financial importance of the grants to all program heads, so the grant writer's requests were viewed as less important than serving clients. These middle managers were never reprimanded for failing to collaborate with the grant writer. Finally, the grant writer was a new employee in a new position, whom these particular program heads perceived as having little power and influence. This model of the factors in the grant funding problem tells us what has to be included in the solutions chosen in the next stage. The problem solver in the problem analysis stage takes on the role of detective-gathering clues and information about how the "crime" was committed, organizing these clues into a scenario of "who done it," and using that scenario to gather more information to prove or disprove the original hunch. The output of the problem analysis phase is a model of the problem validated through the interplay of information gathering and problem definition. Only when the problem has been thoroughly analyzed and defined is the group ready lo begin thinking about solutions in the next stage. SOLUTION ANALYSIS-IDEA GETTING AND DECISION MAKING Solution analysis is achieved through the interplay between getting ideas about how the problem can be solved and decision making about the feasibility of the ideas generated. A common error in this stage is failing to separate the two stages of generating and evaluating ideas. Idea Getting The expansive first phase of solution analysis focuses on creative imagination. Brainstorming is the most common technique used to produce an unstructured free-association of ideas. Brainstorming is the generation of as wide a range of potential solutions as possible CHAPTER 11 PROBLEM SOLVING in an atmosphere that isji"eeji·om criticism and evaluation. The ban on evaluation is important ( to stimulate participation and creativity. Comments like these impede brainstorming: "That won't work." "That's too radical." "We've never done it that way before." "That's not practical." Common errors in this substage are assuming that there is only one right answer, getting "stuck" or attached to the first solution that arises and failing to consider other solutions (somewhat like the primacy effect in perceptual distortions), and being so anxious to finish that you sell le for a solution that doesn ' t really work. A desire to take action and to reduce the uncertainty in a situation drives some people to leapfrog the other problem solving stages and discuss solutions well before they really understand the problem . This same factor may drive some people to hurry through the idea getting stage to converge on a best solution before they should. History and business alike are littered with examples of poorly thought out solutions to problems. For example, Gruenenthal Chemie 's decision to market the drug thalidomide that caused numerous birth defects, Enron's decision to allow risky accounting practices that resulted in the company ' s bankruptcy, and NASA' s decision to launch the space shuttle Challenger that ultimately exploded are all instances of extremely poor solutions that had disastrous consequences. 9 Decision Making The second substage, the contracting phase, focuses-on sorting through the ideas generated in brainstorming and evaluating them systematically against the criteria that an effective solution must meet. The primary criterion of an effective solution is whether it solves the problem and produces the desired result. An efficient solution produces no harmful side effects. 10 Inexperienced problem solvers come up with recommendations that have little impact, are too expensive , or are too difficult to ever implement. Therefore, another way to evaluate solutions is to use the Payoff Matrix shown in Exhibit 11-2. GE uses this tool to help employees think about and categorize solutions in terms of their potential impact and achievability. 11 If group members become competitive and fight over the best solution , they can list the criteria a good solution has to meet and evaluate each solution against those criteria. In the solution phase, the problem solver takes the role of inventor, creatively searching for ideas and then carefully evaluating them against feasibility criteria. When the best solution has been chosen, the group can move on to implementation in the next stage. IMPLEMENTATION ANALYSIS-PARTICIPATION AND PLANNING The final stage concerns the actions that must be taken to ensure that the solution is successfully implemented. This involves getting the appropriate people involved and coming up with a good plan. Three common errors in this stage are failing to gain the commitment of the people needed to implement the plan, failing to assign clear responsibility for each task, and failing to follow up and monitor the implementation process. Implementation analysis is accomplished through the interplay of planning and the process of carrying out plans . Participation Since implementation of solutions in organizational settings is most often done by or with other people, the critical expansion task is participation, enlisting the appropriate Easy To Implement Low Payoff Big Payoff l EXHIBIT 1 1-2 Payoff Matrix Tough To Implement 293 294 PART 2 CREATING EFFECTIVE WORK GROUPS involvement of those actors in the situation who are essential to carrying out the problem solution . Three subtasks are involved here: ( 1. The anticipation of the consequences that will result from implementing the solution and the involvement of those who will experience these consequences in developing ways to deal with them . 2. The identification of those key individuals who by virtue of their expertise and/or motivation are best qualified to carry out the various tasks in the implementation process. 3. If the key individuals have not been involved in the problem-solving process to this point, it may be necessary to see if they agree with the group's outputs or have different ideas about the problem choice, definition , and proposed solution. Receptivity and openness is also required in this substage, but here it is directed toward the concerns and ideas of people who will be involved in planning the implementation process. Planning The planning phase of implementation analysis is an analytical process involving the definition of tasks to be accomplished in implementing the solution, the assignment of responsibility to qualified individuals, the setting of deadlines and planning for follow-up monitoring, and the evaluation of the implementation process. If the problem and its solution are very complex, planning may be quite complicated using network planning methods such as PERT (Program Evaluation Review Technique) or CPM (Critical Path Method). Often, however, a simple chart listing key tasks, responsible individuals, and time deadlines is sufficient for planning and monitoring implementation. When groups develop plans for implementation and identify the potential consequences of implementing these plans, they may find that it is useful to use an iterative process. For example, they can scout potential issues that may arise in implementation, develop a rough plan, share it with those involved in the situation to get reactions, and then modify the plan. Another dialectic process relates to the "who's" and the "what's." Managers appear to have distinct stylistic preferences about how they deal with this issue. Some prefer to define the "what's" first-the plan and tasks to be accomplished-and then assign these tasks to individuals to carry them out. Others begin with the "who's," seeking to identify qualified and interested individuals and then developing plans with them . While the best approach probably varies with the situation and task, beginning with the "who's" has the advantages of giving priority to often scarce human resources and maximizing participation and delegation. In synthesizing these dialectics, the problem solver in implementation analysis adopts the role of coordinator, working to accomplish tasks with other people. The outcome of this stage is a coherent plan for the implementation and a followup evaluation. Most experienced managers tend naturally to follow a problem-solving sequence that is close to that described in the four-phase model of situation analysis, problem analysis, solution analysis, and implementation analysis. There are, however, significant differences in the amounts of energy devoted to each of these phases, which sometimes inhibit effective problem solving. Perhaps the most significant of these is the tendency to spend too little time defining the problem at hand before generating possible solutions. This tendency to be solution oriented often results in the treatment of symptoms rather than causes of the problem, and time is wasted working on solutions before relevant information is known. If this process is typical of an organization's problem solving, a crisis fire-fighting atmosphere develops where symptom-oriented solutions fail to resolve basic problems that recur over and over. This further reduces the time available for thoughtful situation and problem analysis. Effective problem solving requires balanced attention to each phase of the problemsolving process and equal emphasis on the expansion/green-mode and contraction/red-mode mind-sets. We learned in Chapter 3, "Individual and Organizational Learning," that individual learning styles emphasize different aspects of the experiential learning cycle. There is a strong correlation between people's learning styles and the way they approach problem solving. In the next section, we describe additional approaches to problem solving that have been used in organizations. ( \ CHAPTER 11 PROBLEM SOLVING DIFFERENT APPROACHES TO PROBLEMS ( AND OPPORTUNITIES Since not all problems or situations are exactly the same, different approaches to problem solving have been developed. Some problems are simply a matter of repairing something that has ceased to function correctly, particularly technical problems . This involves determining the cause and taking corrective measures. Other problems revolve around the need to improve the way something is working, so problem solving efforts focus on the constraints and modifications that are required. Finally, some situations require the creation of something new. In this instance, looking at causes and past functioning may he completely unnecessary since the focus is to develop something that is completely different. Two of the most highly developed and distinct approaches to problem solving, Six Sigma and Appreciative Inquiry, are explained below. Six Sigma, the next generation of the total quality movement (TQM), was initially developed at Motorola in the 1980s. Motorola was inspired by Japanese success in producing high-quality products. Decades earlier, the Japanese were known not for quality but for shoddy merchandise. In one of the most famous problem solving successes in business, Japanese products became synonymous with quality after they adopted Deming's principles of total quality management and kaizen, a commitment to continuous improvement and encouraged employees to contribute their ideas for improving products. Since the Japanese focused primarily on improving the quality of products, American firms such as Motorola, Allied Signal , and Texas Instruments thought they could compete with Japan if they focused on both products and work processes, and thus turned to Six Sigma. 12 Many companies have claimed that Six Sigma is responsible for millions or billions in cost savings or gains. GE reportedly saved $8 billion in one three-year period alone. Six Sigma squads from GE have expanded their internal focus to help their customers find inefficiencies and waste that will result in savings. 13 ( • • • • Customer issues and opportunities. Business strategy. Goals and objectives. Priorities . Prioritized by management team . Structured approach to project selection Assign project to belt and sponsor. Sponsor inspects progress . Results are captured and sustained. DMAIC is the project management framework Define > Measure ~~~~/~·~~~----""""- Sponsor inspects deliverables and checkpoints for each phase Low l Effort Medium Define project purpose and scope. Measure current performance. Analyze causes and confirm with data . Improve by removing variation and nonvalue added activities. Control gains by standardizing . High EXHIBIT 11-3 Lean Six Sigma Processes at Xerox Source: Reprinted with permission from A. Fornari and G. Maszle. "Lean Six Sigma Leads Xerox ," Six Sigma Fon1111 lv/agazi11e (August. 2004): 12. 295 296 PART 2 CREATING EFFECTIVE WORK GROUPS Sigma is a statistics term for a measure of variation from an expected outcome, in this case, a high quality product. A sigma of six refers to a near-perfect rate or only 3.4 defects per million parts. The basic formula for getting to SIX SIGMA is DMAIC: • • • • • Define the requirements of a process or product to meet customer wishes Measure performance Analyze what's causing defects Improve the process to reduce them Control the process to maintain improvements. Xerox has slightly modified the basic DMAIC formula for their own needs, as shown in Exhibit 11-3. Like TQM, Six Sigma also relies heavily on statistical tools; it's been called "TQM on Steroids." 14 While TQM involved many, if not all employees in teams that chose their own improvement projects, Six Sigma relies primarily on employee experts with extensive Six Sigma training (green belts and black belts) who work with teams on projects chosen by management. Improved quality and savings are the benefits of a Six Sigma program that is effectively implemented. However, these strengths can be a double-edged sword if the focus on numbers leaves out other considerations. Circuit City's Six Sigma program produced a recommendation for variable staffing, which meant hiring part-time workers who receive no benefits. A department manager noted, "With Six Sigma, we're not supposed to look at the people any more, just meet the numbers. The pressure for the numbers is incredible." 15 Appreciative inquiry (Al) is an intervention used in organization development (efforts taken to make organizations and the people within them more effective), which differs radically from the traditional problem solving approach to organizational issues. Rather than focusing on problems, appreciative inquiry focuses on what the organization is like at its best. Appreciative i11q11ily is defined as the study and exploration of what gives life to human systems when they function at their best. This approach, developed by David Cooperrider, is based on the theory that questions and dialogue about what is positive in the organization results in the energy needed for transformation. In contrast, a problem-oriented focus generates negative emotions and perhaps feelings of helplessness, such as "This will never get any better." AI reflects the changing mindset that is found in the trend toward positive psychology, whose mission is to study human strengths and virtues rather than illness, deficiencies, or problems. 16 Appreciative inquiry consists of the 4D cycle, which is applied to a topic that is strategically important to the organization: 17 1. Discover: Appreciate "what is" 2. Dream: Imagine what could be 3. Design: Determine what should be 4. Destiny: Create what will be AI takes various forms; one example is an AI summit lasting two to four days, which takes hundreds of employees and organizational stakeholders through the 4D cycle. One of the basic principles of AI is that positive questions lead to positive change. "Appreciative inquiry asks questions such as: If your organization wants to enhance morale, what will you study-the causes of low morale, or the causes of high morale and enthusiasm?" As Whitney and Troslen-Bloom state, clearly, no amount of knowledge about low morale will sufficiently equip an organization to understand and create high morale. Imagine, on the other hand, an organization filled with inquiry and dialogue on the topic of"Whistle While You Work" or "Purposeful Work." 18 This practice amplifies the organization's "positive core," which refers to its "wisdom, knowledge, successful strategies, positive attitudes and affect, best practices, skills, resources, and capabilities." 19 There are many case studies of successful AI programs in businesses, nonprofits, and the military. ( CHAPTER 11 ( For any company-wide approach such as Work-Out, Six Sigma, and Appreciative Inquiry to be successful, the implementation of the program has to be skillfully done with the strong support of top management, the necessary resources, and often a change in the organizational culture. Firms usually hire consultants to ensure that such programs are successful. CULTURAL DIFFERENCES IN ( PROBLEM SOLVING PROBLEM SOLVING Cultural differences can be seen in the way problems are defined and solved in different counLries .20 Fatalistic cultures with external locus of control (e.g ., Thailand , Indonesia, and Malaysia) are more likely to accept situations as they are; therefore , they may be slower to identify and resolve problems. In Western cultures characterized by internal locus of control , where people are responsible for their own destiny, children are taught to solve problems in school. 21 Employees are rewarded for being troubleshooters or penalized for causing or failing to solve problems. U.S. managers take a problem-solving approach to most situations and often perceive problems as an opportunity to make improvements. Fixing problems is part of the U.S . orientation toward action . That same predisposition, however, sometimes results in pragmatic solutions that have not been thoroughly analyzed. In collectivist cultures, the responsibility for solving the problem is more likely to fall on the group. In low-context cultures , problems are viewed as a Lime-consuming nuisance and are externalized, like the "bugs" that have to be knocked out before a software product launch . In process-oriented cultures such as Japan, however, problems are viewed as a normal part of the situation, not something that is external or even a nuisance . Thus, problems are defined differently. In collectivist cultures, problems are not the responsibility of the individual, and working together on the problem has the same value as solving the problem . This explains in part why quality circles were such a welcome import in Japan .22 As we have seen, part of the problem solving process includes gathering information; however, not all cultures collect, interpret, or even value business information in the same way. In high-context cultures, information is viewed in relation Lo a specific context whereas low-context cultures view information as objective and independent of the person who collected it. 23 The alternative solutions developed in problem solving are also affected by cultural orientations toward time. Cultures that are oriented toward the past (England, Italy) tend to look for historical patterns and lessons. Future-oriented cultures, such as Australia, are more likely to generate new alternatives because they are less bound to the past. PART I. ASSEMBLY TEAM 0 MEETING The purpose of this role play activity is to allow you to practice problem-solving skills. (Time allotted: 60-70 minutes) STEP l. l Divide the class into groups of six. In this role-pl ay, each learning group will be Assembly Team D , with individuals in your group assuming the role of Marion Andrews, Lee Smith, and so on . (In groups of five, combine the Lee Smith role with that of Chris Jones; that is , "Chris can speak for his or her friend Lee who is sick today.") Groups larger than six should have observers. Observers should take notes on the group's problem-solving process during the role-play using the Cardiotronics Case Review form on page 299.) 297 298 PART 2 CREATING EFFECTIVE WORK GROUPS Lee Smith Chris Jones page 301 302 Pat Crane Terry Fram 303 304 Adrian James 305 Tear out the page describing your role and make a "name tent." LEE SMITH role instructions on back STEP 2. Group members should choose roles. One person should play Marion Andrews and prepare to conduct the meeting. Role descriptions for the other team members are on the pages cited. (5 minutes) STEP 3. Marion begins the role play by calling the meeting to order and tackling the problem. (20-30 minutes). Instructions for Team D Workers Instructions for Marion Andrews Place your name tent in front of you after you have read the role description and prepare to be the person described. The assembly line just closed and the five workers from Assembly Team D have gathered in your office. As supervisor of Team D, you have 30 minutes to conduct the problemsolving meeting and find a solution to the problem described in the Cardiotronics Case before everyone goes back to work . Four Tips on Role-Playing (Also see the tips presented in Chapter 4): • Be yourself as much as you can. • Imagine yourself in that person 's life. • Don't "ham it up." • Talk loudly enough for the observers to hear. STEP 4. Each team should write their solution and the reasons for this decision in the box below. (5 minutes). In our group we decided on this solutiuon : Based on these reasons : CHAPTER 11 PROBLEM SOLVING STEP 5. The group should prepare a group review of its problem-solving process by completing the Cardiolronics Case Review below ( 10 minutes). If you finish before the other groups, give Marion reedback on whats/he did that was effective or ineffective in the meeting STEP 6. Plenary discussion . (20 minutes) ( 299 Each group should share the solution it decided on and describe the highlights of the problem-solving process. Consider the following questions: a. What differences were there in the problem-solving process followed in each group? b. Were these differences related to the adequacy of the solutions arrived al (e.g., firing or removing Pat is not a particularly good solution because work would only pile up at Terry 's position; realizing this requires green-mode information getting so that Terry feels free to share his or her role information)? c. What common obstacles to effective group problem solving came up? How were these dealt with by Marion Andrews? By other Team D members'? d. How creative was your group's solution'? Why'? e. Compare the Sample Facilitation Statements and Questions for Problem Solving al the end of the chapter to what you came up with in the Class Preparation and what Marion said in the role play. Any similarities? CARDIOTRONICS CASE REVIEW Cardiotronics Case Review ( Describe what took place in each stage of the problemsolving process. What did you discuss or conclude in each stage? Comparison averages with business executives* Visioning/Exploration What opportunities did you discuss? What values were surfaced? 5 .2% Priority Setting What was the most important problem? 6.2% Information Gathering What information did you gather? 7.7% Problem Definition What were the causes, symptoms, connections in the problem? 5.2% Idea Getting What ideas did you brainstorm? 43.0% Decision Making Which solution was the best idea? 12.9% Participation What other people need to be involved in planning the implementation? How should they be involved? 6.2% Planning What is your implementation plan? 14.0% *Averages for 60 managers in l 0 groups ( l /2 female; l /2 male) l Approximate percentage of total problem-solving time spent in this activity ( ( ~ \ HiIWS 33ri 1 No1ivis (") I )> -0 -i m ;;'C You find you can easily do more work, but you have to slow down because Pat gets behind . So as not to make Pat feel badly, you hold back. You don't want to get Pat into trouble . Right now, the job lacks challenge and is boring. -0 0o:> m s: r- (/l 0 < z Cl t.." 0 ...... (,,> 0 N :;; ~ IV {") ;;o m ~ z C> m "'Tl "'Tl S3NOf SIHH3 ZNOIIVIS m Q < m ~ ;;o 7'\ C> ;;o 0 c ""'C (/') You and Lee work closely together, and you are usually waiting for the board from Lee. Waiting for the board is more prevalent in the latter part of the day than in the beginning. To keep busy, you often help out Pat who can't keep up. However, you are careful not to let the supervisor catch you helping Pat because Pat might be let go. Pat is a bit old for the pace set and feels the strain. For you , the job is easy, and you feel the whole job is slowed down too much because of Pat. "Why couldn ' t Pat be given less to do?" you ask yourself. ,,---- ( ,.-----..., ----'\ 3NVHJIVd f NOIIVIS (') :r: }> ~ m ;;o You work hard, but you just aren't as fast as the others. You know you are holding things up, but no matter how you try, you get behind. The faster you try to go, the more difficult it is to make correct connections. You feel quality is important, and you don't want to make mistakes. You are very proud of your reputation for making very few errors . The rest of the workers are fine people and have more energy than you do at your age. ""O 0 o:> r- m 3: 0 z< G) t.;> 0 t.;> (JJ 0 ""'- ~ ~ t-..) n ;:o m ~ z Cl m ,, ,, m li\IVHA AHH3L t NOILVLS n --{ < m ~ ;:o 7' Cl 0 c ""O C/l You are able to keep up with the pace, but on your last assembly job, you were pressed. Fortunately, Pat is slightly slower than you are, and this keeps that pressure off you. You are determined that Pat will not be moved off the job. Somebody has to protect people from speed-up tactics . / - ------... ( ,----...__ \ S:flWVf NVIHGV S NOIIVIS () I )> :::i m You get bored doing the same circuit operations over and over. On some jobs you get variety by working fast for a while and then slowly. On this job you can't work fast because the boards aren ' t fed to you fast enough . Why can't the supervisor see that Pat is a problem and needs to be moved out of the group? It gets you down to keep doing exactly the same thing over and over in slow motion. You are considering getting a job someplace where they can keep a worker busy. Al Cl 0o:> r- m $': (./) 0 < zGJ c,,.i 0 U1 ( CHAPTER 11 ( ( PROBLEM SOLVING 1. Organizations can be viewed as problem-solving systems whose success depends on how well they perform the problem solving process. 2. Historically, managers alone were responsible for problem solving, but today employees at all levels have been trained Lo take part in team efforts to solve problems. 3. Kalb's problem-solving model consists of four stages: a. Situation analysis b. Problem analysis c. Solution analysis d. Implementation analysis 4. Problem solving is not a logical , linear process. Instead, it is characterized by wavelike expansions and contractions alternately moving outwardly to gather and consider alternatives, information, and ideas and inwardly to focus, evaluate, and decide. 5. Each stage in the problem-solving model possesses two substages that reflect the two dialectics of problem solving: Lhe expansion/green mode and Lhe contraction/reel mode. Effective problem solving requires balanced attention to each phase of the problem-solving process and equal emphasis on the expansion/green and contraction/red mode mind-sets. 6. The role of the facilitator or manager in problem solving is different for each stage and can be characterized as: a. Leader b. Detective c. Inventor d. Coordinator 7. Different types of problems or situations require different problem-solving approaches. 8. Six Sigma is a problem-solving approach that utilizes statistical methods to remove obstacles and create processes that lead to high-quality products and processes . DMAIC, the basic Six Sigma formula, stands for define the requirements of a process or product to meet customer wishes, measure performance , analyze what's causing defects , improve the process to reduce them, and control the process to maintain improvements. 9. Instead of focusing on problems, appreciative inquiry (AI) is the study and exploration of what gives life to human systems when they function at their best. The 4D cycle consists of: discover, dream , design , and destiny. 10. Cultures vary in the way they define problems, gather information , and solve problems. Cultural differences that influence problem solving are: locus of control, individualism versus collectivism, high- or low-context, and orientations toward time. FOR EMPLOYEES l • Expert problem solvers can lead a group through a structured problem-solving approach, while paying attention to both content and process issues. • They do not define the problem in terms of a solution. Instead they seek the source of the symptoms and then choose the most appropriate solution. • During the early stages of problem solving, they keep the group from discussing solutions prematurely. • They understand that problem solving is characterized by uncertainty and are willing to tolerate that uncertainty until the best solution is determined . • They understand that feelings and perceptual biases influence the problem-solving process as do the mental ruts that prevent us from generating creative solutions. When necessary, they discuss the situation with neutral outsiders or objective insiders to get different perspectives. 307 308 PART 2 CREATING EFFECTIVE WORK GROUPS • Experts take a systems view of problems and consider all the system links, both to define the problem and to ensure that implementation obstacles don't arise. FOR MANAGERS • Managers who are expert problem solvers are open to using new solutions, rather than relying too much on an action that was successful in the past. They employ a wide repertoire of creative solutions in response to the unique aspects of each problem they face. • They are careful to invite people to meetings who are diverse (functions, learning styles, ethnic background) in ways that lead to creative ideas and then ensure that their disparate skills are both valued and utilized. • Expert managers, as well as team leaders, prepare carefully for problem solving meetings by following these steps: • Clear, planned agenda • Only the necessary people are invited to the meeting • Clear ground rules • Clear, stated goals for the meeting and high expectations for meeting them (e.g ., is their function advisory, information sharing, decision making?) • Assigned roles (chairperson, recorder, etc.) • Procedures in place for making decisions (voting or by consensus) • Group follows an orderly problem-solving sequence • Effective time management • Balanced discussion by members so the conversation is not dominated by high-status or aggressive members • Conflict is managed effectively • Expert managers are highly skilled at gaining commitment to problem solutions or to opportunities by showing employees how this will benefit the organization or link to their personal goals and talents. • They understand that executing a solution requires a great deal of energy and follow-up and keep evaluating whether solutions need to be tweaked. • They know that solutions often have unanticipated consequences and try to predict and avoid consequences that simply result in another problem. • They recognize that employee teams are fully capable of solving problems and facilitate their efforts by providing whatever training, information, or support they require. FOR ORGANIZATIONAL ARCHITECTS • Expert organizational architects and designers understand that organizational cultures may reinforce an approach to problems that can be either beneficial (proactively seeking opportunities and solutions) or hrumful (ignoring problems or only relying on a small group of ineffective problem solvers). They realize that developing norms about the importance of surfacing and solving problems quickly and effectively should be designed into the organizational culture. • Organizational designers train all employees in one method of problem solving to help save time and keep people on the same page. However, they are sure to periodically check to see that the method is effective and is not stifling creativity. • They also develop procedures for communicating successful solutions to problems (a form of organizational learning) so that other employees benefit from the knowledge that's been acquired. • Experts use action learning projects to bring together a carefully chosen team to work on a key organizational problem. In addition to solving problems, action learning projects also expose employees to competent people outside their normal networks and develop their management and leadership skills. ( CHAPTER 11 PROBLEM SOLVING ( In this assignment, you will write about an experience involving problem management. Choose an experience about which you want to learn more . A. Concrete Experience 1. Objectively describe the experience (who, what, when, where, how). (2 points) 2. Subjectively describe your feelings , perceptions, and thoughts that occurred during (not after) the experience. What did others seem to be feeling? (2 points) B. Reflective Observation 1. Looking back at the experience, what were the perspectives of the key actors (including you)? (2 points) ( 2. Why did the people involved (including you) behave as they did? (2 points) C. Abstract Conceptualization 1. Relate concepts or theories from the assigned readings or the lecture to the experience. Explain thoroughly how they apply to your experience. Please apply at least two concepts or theories and cite them correctly. (4 points) D. Active Experimentation 1. What did you learn about problem solving or creativity from this experience? (I point) l 309 310 PART 2 CREATING EFFECTIVE WORK GROUPS 2. What did you learn about yourself? (I point) 3. What action steps will you take to be more effective in the future? (2 points) E. Integration, Synthesis, and Writing 1. Did you integrate and synthesize the four sections? (I point) 2. Was the Personal Application Assignment well written and easy to understand ? (I point) 3. Was it free of spelling and grammar errors? (2 points) ENDNOTES 1 R. Kilmann, " Proble m Management: A Behavioral Science Approach,'" in G. Zaltman (ed.) Management Principles for NonPivjit Agencies and Organizations (New York: Ame1ican Management Association, 1979): 214-15. 2 D. Ulrich. S. Kerr, and R. Ashkenas, GE Work-Out (New York: McG raw-Hill , 2002). 3 The problem-solving model described here was developed by David Kolb in collaboration with Richard Baker and Juliann Spoth. 4 P. Elbow. Writing Withow Teachers (New York: Oxford University Press. 1973). 5 R. Kaplan, "Creativity in the Everyday Business of Managing," Issues and Obse1vations (Greensboro, NC: Center for Creative Leadership, 1983), and D. Kolb, I. Rubin, and J. S. Osland, The Organizational Behavior Reader ((Englewood Cliffs, NJ: Prentice-Hall, 1991 ). 6 C. Lindblom, "The Science of Muddling Through," Public Administration Review 2 ( 1959): 78-88. 7 I. L. Janis, "Group Think," Psychology Today (November 1971 ); Kolb, Rubin and Osland, The Organizational Behavior Reader ( 1990). 8 R. Fritz, The Path of Least Resistance (New York: Ballantine, 1989). 9 B. Raven and J. Z. Rubin, Social Psychology: People in Givups (New York: Wiley, 1976); M. Swarz and S. Watkins, "Power Failure: "The Inside Story of the Collapse of Enron," (New York: Currency Doubleday, 2003); G . Moorhead, R. Ference, and C. Neck, "Group Decision Fiascoes Continue: Space Shuttle Challenger and a Revised Groupthink Framework." Human Relations 44 ( 1991 ): 539-550. For a list of other fiascos and methods for preventing them , see M. E. Turner, A. R. Pratkanis, and T. Samuels, "Circumventing groupthink by identity metamorphosis: Examining Intel's departure from the DRAM industry." in A. Haslam, D. van Knippenberg, M. Platow, and N. Ellemers (eds.). Social Identity at Work: Developing Theory for Organizational Practice. (Philadelphia. PA: Psychology Press. 2002): 117-136. IO C. Barnard. The Functions of the Executive (Cambridge, MA: Harvard University Press. 1938). 11 Ulrich, Kerr, and Ashkenas, GE Work-Out: 34-35. 12 R. Slater. The GE Way Fieldbook (New York: McGraw-Hill, 2000); M. Arndt, "Quality Isn 't Just for Widgets," Business Week 3792, (July 22, 2002): 72. l3 Arndt, "Quality Isn ' t Just for Widgets." 14 A. Gluckman, "Quality In, Workers Out? Companies Adopt Six Sigma," Real World Micro (Boston, MA: Dollars and Sense. 2002): 45-46. 15 Ibid: 46. 16 M. Seligman, and Csikszentmihalyi, " Positive psychology: An introduction,'" American Psychologist 56( I), (200 I): 5-14. 17 D. Whitney and A. Trosten-Bloom, The Power of Appreciative b1quii)1 (San Francisco: Berrett-Koe hler, 2003) 18 Ibid: 137. 19 D. Whitney and A. Trosten-Bloom, The Power of Appreciative lnqui1)>: 67. 20 N. J. Adler, //l/emational Dimensions of Organizational Behavior (Cincinnati. OH: South-Western College, 2002). 21 I. Varner and L. Beamer, lntercu//l/ral Communication in the Global Workplace (New York: McGraw-Hill, 2005): 258. 22 Ibid. 23 Varner and Beamer, lntercultura/ Co111111unicatio11 in the Global Workplace. ( ..-----.._ ( ~ Sample Facilitation Statements and Questions for Problem Solving Situation Analysis Problem Analysis Solution Analysis Implementation Analysis Visioning,:'.'.Ex12loration Information Gathering Idea Getting Participation Let's not discuss solutions until we thoroughly understand the problem. Let's try to put our biases aside and take an objective look at the situation . What do we know so far? How could we make this change? Who would be affected by the implementation of this solution? What do you think about the situation? How do you feel about it? What opportunities do you see in this situation? What do you hope is the outcome? What do we need to know before we can really define the problem? Let's brainstorm possible solutions to the problem, but let's not evaluate them until all the ideas have been heard . Whose commitment is needed to successfully implement this solution? Who has the most at stake or the most energy to get this accomplished? Who else should we talk to? What's preventing us from reaching the desired state? How can we involve them in planning the implementation? Is there something else we should be looking at first? What's working well? What do we want to change? What values are involved in this situation? Priority Setting Problem Definition Decision Making Planning What's the most important problem that, if resolved, would cause other things to fall into place? Why? Do we have enough information to put together a model of the problem? Are we ready to evaluate these suggestions? What tasks need to be done to implement this solution and when? By whom? What do others in the organization and external stakeholders think about this? Can we draw a model of the problem? Do we all agree that this is the most important problem or opportunity? What are the symptoms of the problem and the results? What factors caused the problem? What other factors influence these relationships? Have we identified and verified the key cause? What criteria should our solution meet? Do these solutions get at all the causes in our problem definition? Which solution would have the biggest payoff and be the easiest to implement? Which of these solutions meets all the criteria? Are there any unintended consequences that might result from this solution? What deadlines are we facing? What constraints? What potential implementation problems might arise? What should be our contingency plan? How will we monitor the progress of the implementation? (") I )> ~ m ;;o -0 0 c::> r- m ~ 0 < z Cl (,;> ...... ...... 9) ,./~ \tv/' ( MANAGING CREATIVITY By the end of this chapter, you should be able to: A List the five categories of characteristics that distinguish creative people from noncreative people. B. Explain the personality traits of creative people. C. Explain how the four cognitive creativity skills are promoted by creativity techniques. D. Explain the organizational conditions that enhance or kill creativity. E. Describe the steps in the creative process and "flow." A small electric utility company located in a mountainous region of the Pacific Northwest was plagued by a problem it could not solve. Spring and fall ice storms coated the power lines with ice that was so heavy it often snapped the lines and cut off power to customers. Removing the ice, however, was a dangerous job for linemen who had to scale icy towers and poles to shake the wires with a long pole. A consultant brought together a diverse group of employees from different backgrounds to brainstorm a solution. There were linemen, accountants, secretaries, mailroom clerks, and supervisors in the group. Several hours of brainstorming did not produce anything useful. During a break, the consultant overheard one lineman telling another that he really hated de-icing the lines. The last time out, a bear had chased him! When the group reconvened, the consultant related this tale in an effort to prod the group's thinking. A participant wondered if they could train bears to climb the poles; the bears' weight would shake the poles enough to knock off the ice. Once the group stopped laughing, someone suggested the group get back on task. But another lineman commented that the trick would be getting the bears to climb the poles sequentially so no poles would be overlooked. Someone else suggested they could get the bears to climb each pole by putting a honey pot at the top as a reward. The group came up with several drawbacks to this idea. What would keep the bears from eating the honey in good weather rather than waiting for ice storms? What would keep raccoons or other animals from eating the honey? What if the bears eventually got tired of honey? The tension level rose as conflict developed between two subgroups-the people who wanted to continue pursuing the bear-and-honey-pot idea and others who thought it was a deadend and wanted to move on to more practical ideas. A cynical lineman recommended using the executive helicopter that transported company VIPs around to put honey pots on top of each pole after an ice storm. The mention of helicopters brought a secretary into the discussion for the first 312 CHAPTER 12 MANAGING CREATIVITY ( time . As a former nurse's aide in Vietnam, she remembered that the helicopters bringing in wounded soldiers had a tremendous down wash. Would helicopter down wash be strong enough , she asked, to knock off the ice? Bingo! That turned out to be the magic solution. The company, however, never would have hit on this idea if it had not put together a diverse group capable of tolerating ambiguity, conflict, and seemingly off-the-wall, impractical ideas-all essential elements for group creativity. Source : Adapted from R. T. Pascale, "Intentiona