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Questions for Review
1-1. What is the importance of interpersonal skills in the workplace?
Answer: Understanding human behavior is critical for managerial effectiveness today. To attract
and retain high-performing employees, managers must possess interpersonal skills in order to
Learning Objective: Demonstrate the importance of interpersonal skills in the workplace
Learning Outcomes: Understanding OB helps determine manager effectiveness; Technical and
AACSB: Written and oral communication
1-2. What is the definition of organizational behavior (OB)?
Answer: Organizational behavior (OB) is a field of study that investigates the impact that
individuals, groups, and structure have on behavior within organizations for the purpose of
Learning Objectives: Define organizational behavior (OB)
Learning Outcome: Define organizational behavior
AACSB: Analytical thinking; Reflective thinking
1-3. How does systematic study contribute to our understanding of OB?
Answer: Behavior according to systematic study is not random. There are fundamental
consistencies underlying the behavior of all individuals that can be identified as well as individual
differences. The consistencies allow predictability and reasonably accurate predictions regarding
when to go with your gut.” Learning Objective: Show the value to OB of systematic study
Learning Outcome: Define organizational behavior and identify the variables associated with its
study AACSB: Analytical thinking; Reflective thinking
1-4. What are the major behavioral science disciplines that contribute to OB?
Answer: OB is a field of study that investigates the impact that individuals, groups, and structure
have on behavior within organizations. Both psychology and sociology are concerned with
behavior. Psychology is the science of behavior that studies individual behavior, whereas
Learning Objective: Identify the major behavioral science disciplines that contribute to OB
Learning Outcome: Define organizational behavior and identify the variables associated with its
study AACSB: Analytical thinking; Reflective thinking
1-5. Why are there so few absolutes in OB?
Answer: Human beings are complex and there are few universal principles that explain
organizational behavior. There are many theories about how people behave in organizations but
Learning Objective: Demonstrate why few absolutes apply to OB
Learning Outcome: Define organizational behavior and identify the variables associated with its
study AACSB: Analytical thinking; Reflective thinking
1-6. What are the challenges and opportunities for managers in using OB concepts?
Answer: This field of study offers managers specific insights and opportunities to
improve managerial and people skills. Recognizing the value of and embracing diversity
in a global marketplace can improve productivity. Learning to empower your people,
Learning Objective: Identify managers’ challenges and opportunities in applying OB concepts
Learning Outcomes: Define organizational behavior and identify the variables associated with
its study AACSB: Analytical thinking; Reflective thinking; Diverse and multicultural work
environments
1-7. What are the three levels of analysis in our OB model?
Answer: The three levels of analysis are: individual, group, and organization. The three basic
Learning Objectives: Compare the three levels of analysis in this text’s OB model
Learning Outcomes: Define organizational behavior and identify the variables associated with
its study AACSB: Analytical thinking
Experiential Exercise
Managing the OB Way
This exercise contributes to:
Learning Objectives: Demonstrate the importance of interpersonal skills in the workplace; Define
organizational behavior (OB); Show the value to OB of systematic study; Demonstrate why few absolutes
apply to OB; Identify managers’ challenges and opportunities in applying OB concepts
Learning Outcomes: Define organizational behavior and identify the variables associated with its study;
Describe the factors that influence the formation of individual attitudes and values; Apply the study of
perception and attribution to the workplace; Define diversity and describe the effects of diversity in the
workforce; Describe the nature of conflict and the negotiation process; Describe best practices for
creating and sustaining organizational cultures; Describe the components of human resource practices
AACSB: Written and oral communication; Ethical understanding and reasoning; Analytical thinking;
Diverse and multicultural work environments; Reflective thinking
Divide the class into groups of approximately four members each. Each group should consider the
following scenario:
You will assume the role of a special committee of district managers at a large pharmaceutical company.
Your committee will be meeting to discuss some problems. The process set up by the committee is as
follows:
1. Each committee member should first review the problem privately and formulate independent
ideas for what might be done.
2. At the start of the meeting, each member should spend one minute addressing the group.
During the meeting, the committee must reach a consensus on both the best solution and supporting
rationale to each problem. How this is done is entirely up to the committee members, but you must come
up with a consensus decision and not a majority opinion achieved by voting.
Here is the problem for your committee to consider:
The company has no specific policy regarding facial hair. Tom, a pharmaceutical sales rep with a
little more than a year’s experience and an average (but declining) sales record, has grown a very long
and ragged beard that detracts significantly from his appearance. His hobby is playing bass in an
amateur bluegrass band, and he feels that a ragged beard is an important part of the act. Tom says his
beard is a personal fashion statement that has to do with his individual freedom.
There have been numerous complaints about Tom’s appearance from both doctors and pharmacists.
The manager has talked to him on many occasions about the impact his appearance could have on his
sales. Nevertheless, Tom still has the beard.
The manager is concerned about Tom’s decreasing sales as well as the professional image of the sales
force in the medical community. Tom says his sales decrease has nothing to do with his beard.
However, sales in the other territories in the district are significantly better than they were last year.
When the groups have reached their consensus decisions, the following questions will serve for class
discussion:
1-8. What do you think are the concerns for the company regarding Tom’s facial hair? Should they
care about his appearance?
1-9. What was your group’s consensus decision regarding the issue with Tom’s facial hair?
1-10. Let’s say Tom told you he thinks the beard is part of his personal religion that he is forming. Do
you think that announcement would change how you talk to Tom about the issue?
Teaching Notes
With these types of exercises, students will press for the “right answer.” Emphasize that how they reached
their decisions and awareness of other’s perspectives is key here, much more so than the final decision.
Depending on how students approach the issue, there could be many “correct” answers. Instead of simply
looking for a clear winner, students should consider the potential success of each approach.
This exercise is applicable to face-to-face classes or synchronous online classes such as BlackBoard 9.1,
WIMBA, and Second Life Virtual Classrooms. See http://www.baclass.panam.edu/imob/SecondLife for more
information.
Ethical Dilemma
There’s a Drone in Your Soup
This exercise contributes to:
Learning Objectives: Demonstrate the importance of interpersonal skills in the workplace; Define
organizational behavior (OB); Show the value to OB of systematic study; Demonstrate why few absolutes
apply to OB; Identify managers’ challenges and opportunities in applying OB concepts
Learning Outcomes: Describe the factors that influence the formation of individual attitudes and values;
Apply the study of perception and attribution to the workplace; Describe best practices for creating and
sustaining organizational cultures; Describe the components of human resource practices
AACSB: Ethical understanding and reasoning; Analytical thinking
It is the year 2020, and drones are everywhere. Alibaba quadcopters have been delivering special ginger
tea to customers in Beijing, Shanghai, and Guangzhou for years; Amazon’s octocopters finally deliver
packages in most major cities within 30 minutes without knocking down pedestrians; and college students
everywhere welcome late-night nachos from Taco Bell Tacocopters. Indoor drones are still in the
pioneering phase – backyard enthusiasts are building tiny versions, but no large-scale commercial efforts
have been put toward indoor utility drones. That’s all about to change.
You work for a multinational technology corporation on a sprawling, 25-acre headquarters campus, with
offices in 2 million sqaure feet of interior space in one large building and four additional smaller (but still
large) buildings. The official Head of Interior Spaces is your boss; you’re the leader of the Consideration
of New Things team. In a meeting with your team, your boss says, “I’ve just heard from my friend at
Right To Drones Too (R2D2) that his group has perfected their inside drone. It’s small and light but can
carry up to 10 pounds. It includes a camera, a speaker, and a recorder.”
Your team expresses surprise; no one even knew an inside utility drone was under development, and
governments worldwide are still haggling over regulations for drones. Your boss goes on enthusiastically,
“I’ve seen the little drones, and I think you’ll be impressed – not only can they scoot across the quad, but
they can fetch things off tables, grab me a latte, attend meetings for me, check over your shoulders to see
what you’re working on….anything! They’re really accurate, agile, and super quiet, so you’ll barely
know they’re around. My friend wants us to have the first 100 drones here for free, and he’s willing to
send them over tomorrow! I fugure we can hand them out randomly, although of course we’ll each have
one.”
Your boss sits back, smiling and expecting applause. You glance at your team members and are relieved
to see doubt and hesitation on their faces.
“Sounds, uh, great,” you reply. “But how about the team takes the afternoon to set the ground rules?”
Questions
1-11. How might the R2D2 drones influence employee behavior? Do you think they will cause people
to act more or less ethically? Why?
Answer: Responses to this question will vary by student. Some will suggest that because the
drones imply that “someone’s always watching you,” employees may be less tempted to
1-12. Who should get the drones initially? How can you justify your decision ethically? What restrictions for
use should these people be given, and how do you think employees, both those who get drones and those
who don’t, will react to this change?
Answer: The answer to this question will depend heavily on the student’s ethics and perspective.
Students should recognize that a key issue in the situation is the inability to completely predict
1-13. How will your organization deal with sabotage or misuse of drones? The value of an R2D2 drone
is $2,500.
Answer: Again, the answer to this question depends on each student’s perspective. Most students
1-14. Many organizations already use electronic monitoring of employees, including sifting through
website usage and e-mail correspondence, often without the employee’s direct knowledge. In
what ways might drone monitoring be better or worse for employees than covert electronic
monitoring of Web or e-mail activity?
Answer: This question will probably generate considerable class discussion. Some students will
believe that as bad as covert scrutiny of e-mail and Internet usage is, the use of drones would be
more invasive and ethically wrong. Students taking this perspective are likely to also point out
Case Incident 1
Apple Goes Global
This exercise contributes to:
Learning Objectives: Define organizational behavior (OB); Identify the major behavioral science
disciplines that contribute to OB; Identify mangers’ challenges and opportunities in applying OB
concepts
Learning Outcomes: Define organizational behavior and identify the variables associated with its study;
Describe the factors that influence the formation of individual attitudes and values; Apply the study of
perception and attribution to the workplace; Define diversity and describe the effects of diversity in the
workforce; Describe the nature of conflict and the negotiation process; Describe best practices for
creating and sustaining organizational cultures; Describe the components of human resource practices
AACSB: Written and oral communication; Analytical thinking; Reflective thinking; Diverse and
multicultural work environments
It wasn’t long ago that products from Apple, perhaps the most recognizable name in electronics
manufacturing around the world, were made entirely in America. This is not so anymore. Now, almost all
of the approximately 70 million iPhones, 30 million iPads, and 59 million other Apple products sold
yearly are manufactured overseas. This change represents more than 20,000 jobs directly lost by U.S.
workers, not to mention more than 700,000 other jobs and business given to foreign companies in Asia,
Europe, and elsewhere. The loss is not temporary. As the late Steven P. Jobs, Apple’s iconic co-founder,
told President Obama, “Those jobs aren’t coming back.”
At first glance, the transfer of jobs from one workforce to another would seem to hinge on a difference in
wages, but Apple shows this is an oversimplification. In fact, paying U.S. wages would add only $65 to
each iPhone’s expense, while Apple’s profits average hundreds of dollars per phone. Rather, and of more
concern, Apple’s leaders believe the intrinsic characteristics of the labor force available to them in China
—which they identify as flexibility, diligence, and industrial skills—are superior to those of the U.S. labor
force. Apple executives tell stories of shorter lead times and faster manufacturing processes in China that
are becoming the stuff of company legend. “The speed and flexibility is breathtaking,” one executive said.
“There’s no American plant that can match that.” Another said, “We shouldn’t be criticized for using
Chinese workers. The U.S. has stopped producing people with the skills we need.”
Because Apple is one of the most imitated companies in the world, this perception of an overseas
advantage might suggest that the U.S. workforce needs to be better led, better trained, more effectively
managed, and more motivated to be proactive and flexible. If U.S. (and Western European) workers are
less motivated and less adaptable, it’s hard to imagine that does not spell trouble for the future of the
American workforce. Perhaps, though, Apple’s switch from “100% Made in the U.S.A.” to “10% Made in
the U.S.A.” represents the natural growth pattern of a company going global. At this point, the iPhone is
largely designed in the United States (where Apple has 43,000 employees), parts are made in South
Korea, Taiwan, Singapore, Malaysia, Japan, Europe and elsewhere, and products are assembled in China.
The future of at least 247 suppliers worldwide depends on Apple’s approximately $30.1 billion in orders
per quarter. And we can’t forget that Apple posted $16.1 billion in revenue from the first quarter of 2014,
perhaps in part because its manufacturing in China builds support for the brand there.
As makers of some of the most cutting-edge, revered products in the electronics marketplace, perhaps
Apple serves not as a failure of one country to hold onto a company completely, but as one of the best
examples of global ingenuity.
Sources: B. X. Chen, “IPhone Sales in China Bolster Apple Earnings,” The New York
Times (January27, 2015), http://www.nytimes.com/2015 /
01/28/technology/apple-quarterly-earnings.html?_r=0; C. Duhigg and K. Bradsher,
“How U.S. Lost Out on iPhone Work,” The New York Times, January 22, 2013, A1,
A22–A23; H. Gao, “How the Apple Confrontation Divides China,” The Atlantic (April
8, 2013), www.theatlantic.com/
china/archive/2013/04/how-the-apple-confrontation-divides-china/274764/; and A.
Satariano, “Apple Slowdown Threatens $30 Billion Global Supplier Web,” Bloomberg,
www.bloomberg.com/news/2013-04-18/apple-slowdown-threatens-30-billion-global-s
upplierweb-
tech.html.
Questions
1-15. What are the pros and cons for local and overseas labor forces of Apple’s going global? What are the
potential political implications for country relationships?
Answer: Apple’s decision to manufacture its products in China using inputs sourced from
multiple countries is beneficial for the overseas labor force where new jobs are created and
1-16. Do you think Apple is justified in drawing the observations and conclusions expressed in the case? Why
or why not? Do you think it is good or harmful to the company that its executives have voiced these
opinions?
Answer: This item can be assigned as a Discussion Question in MyManagementLab. Student
1-17.How could managers use increased worker flexibility and diligence to increase the competitiveness of
their manufacturing sites? What would you recommend?
Answer: Again, this answer depends greatly on the individual student’s perspective. Some things
that might be mentioned could include additional training, better communication, greater
Case Incident 2
Big Data for Dummies
This exercise contributes to:
Learning Objectives: Define organizational behavior (OB); Show the value to OB of systematic study;
Demonstrate the importance of interpersonal skills in the workplace; Identify managers’ challenges and
opportunities in applying OB concepts; Demonstrate why few absolutes apply to OB
Learning Outcomes: Define organizational behavior and identify the variables associated with its study;
Describe the factors that influence the formation of individual attitudes and values; Describe the
components of human resource practices
AACSB: Analytic thinking; Reflective thinking
Do you need big data? Maybe the question is better phrased as: Can you afford not to use big data? The
age of big data is here, and to ignore its benefits is to run the risk of missed opportunities.
Organizations using big data are quickly reaping rewards, as a survey of 2,022 managers worldwide
indicated recently. In fact, 71 percent of respondents agreed that organizations using big data will gain a
“huge competitive advantage.” These managers also saw the need for big data: 58 percent responded that
they never, rarely, or only sometimes have enough data to make key business decisions. Furthermore,
they’ve witnessed the benefits: 67 percent agreed that big data has helped their organization to innovate.
So why did only 28 percent find that their access to useful data significantly increased in a year?
According to Amy Braverman, a principal statistician who analyzes NASA’s spacecraft data, the problem
is in interpreting the new kinds and volumes of data we are able to collect. “This opportunistic data
collection is leading to entirely new kinds of data that aren’t well suited to
the existing statistical and data-mining methodologies,” she said. IT and business leaders agree: in a
recent survey, “determining how to get value” was identified as the number 1 challenge of big data.
With strong need combating the high hurdle for usability, how should a company get started using big
data? The quick answer seems to be to hire talent. But not just anyone will do. Here are some points to
ponder when hiring data professionals:
1. Look for candidates with a strong educational background in analytics/statistics. You want
someone who knows more than you do about handling copious amounts of data.
2. The ideal candidates will have specific experience in your industry or a related industry. “When
you have all those Ph.D.s in a room, magic doesn’t necessarily happen because they may not have
the business capability,” said Andy Rusnak, a senior executive at Ernst & Young.
3. Search for potential candidates from industry leader organizations that are more advanced in big
data.
4. Communication skills are a must. Look for a candidate “who can translate Ph.D. to English,” says
SAP Chief Data Scientist David Ginsberg. He adds, “Those are the hardest people to find.”
5. Find candidates with a proven record of finding useful information from a mess of data, including
data from questionable sources. You want someone who is analytical and discerning.
6. Look for people who can think in 8- to 10-week periods, not just long term. Most data projects
have a short-term focus.
7. Test candidates’ expertise on real problems. Netflix’s Director of Algorithms asks candidates,
“You have this data that comes from our users. How can you use it to solve this particular
problem?”
Sources: M. Taes, “If I Could Have More Data…,” The Wall Street Journal, March 24,
2014, R5; S. Thurm, “It’s a Whole New Data Game,” The Wall Street Journal,
February 10, 2015, R6; and J. Willhite, “Getting Started in ‘Big Data’,” The Wall
Street Journal, February 4, 2014, B7.
Questions
1-18. Let’s say you work in a metropolitan city for a large department store chain and your manager
puts you in charge of a team to find out whether keeping the store open an hour longer each day
would increase profits. What data might be available to your decision-making process? What data
would be important to your decision?
Answer: Relevant internally-generated variables would include number of customers in the store
prior to closing, sales levels prior to closing, and so on. Data along these lines is probably readily
1-19. What kinds of data might we want in OB applications?
Answer: This item can be assigned as a Discussion Question in MyManagementLab. Student
1-20. As Braverman notes, one problem with big data is making sense of the information. How might a
better understanding of psychology help you sift through all this data?
Answer: Numbers only tell part of the story. In order to understand data
fully, it is necessary to understand the mindset of the customer or employee.
My Management Lab
Go to mymanagementlab.com for Auto-graded writing questions as well as the following
Assisted-graded writing questions:
1-21. Now that you’ve read the chapter and Case Incident 1, if you were an Apple manager whose
employees were losing their jobs to overseas workers, what would you advise your teams to do in
order to find re-employment in their professions? What types of training—basic, technical,
interpersonal, problem-solving—would you recommend?
1-22. In relation to Case Incident 2, why do you think it is important to have educated, experienced
statisticians on any team that is using big data for decision making? What might be the
consequences of hiring someone with less experience?
1-23. MyManagementLab only—comprehensive writing assignment for this chapter.
Instructor’s Choice
Companies Dealing with OB Issues
This exercise contributes to:
Learning Objectives: Define organizational behavior (OB); Identify the major behavioral science
disciplines that contribute to OB; Show the value to OB of systematic study; Demonstrate why few
absolutes apply to OB; Identify mangers’ challenges and opportunities in applying OB concepts
Learning Outcomes: Define organizational behavior and identify the variables associated with its study;
Describe the factors that influence the formation of individual attitudes and values; Apply the study of
perception and attribution to the workplace; Define diversity and describe the effects of diversity in the
workforce; Describe the nature of conflict and the negotiation process; Describe best practices for
creating and sustaining organizational cultures; Describe the components of human resource practices
AACSB: Written and oral communication; Ethical understanding and reasoning; Analytical thinking;
Information technology; Diverse and multicultural work environments; Reflective thinking
The assignment is to find an organization that is facing two or more of the four challenges discussed in
the chapter. It is recommended that students use one of the recognized search engines to conduct research.
Remind students that they may have to read between the lines to discover the effects and response to
challenges. One example that can be used to start the discussion is to go to the Nike website
(www.nike.com) and review the company’s statements about having their products manufactured
offshore. For the past several years, Nike has come under increasing criticism for its manufacturing
practices in Vietnam. Have students see how the company explains its current practices and relationships
with foreign contractors.
Exploring OB Topics on the Web
This exercise contributes to:
Learning Objectives: Demonstrate the importance of interpersonal skills in the workplace; Show the
value to OB of systematic study; Demonstrate why few absolutes apply to OB; Identify mangers’
challenges and opportunities in applying OB concepts
Learning Outcomes: Define organizational behavior and identify the variables associated with its study;
Describe the factors that influence the formation of individual attitudes and values; Apply the study of
perception and attribution to the workplace; Define diversity and describe the effects of diversity in the
workforce; Describe the nature of conflict and the negotiation process; Describe best practices for
creating and sustaining organizational cultures; Describe the components of human resource practices
AACSB: Written and oral communication; Ethical understanding and reasoning; Analytical thinking;
Information technology; Diverse and multicultural work environments; Reflective thinking
Using the Internet to locate information can be a useful tool to the student (or manager) interested in
exploring topics in OB. For this first exercise, go to www.searchenginewatch.com to learn more about what
search engines and metacrawlers do and how they differ. Once you are on the Search Engine Watch home
page, click on Search Engine Listings, then on Major Search Engines. This page presents an overview of
the major engines and how best to use them. Do not forget to look at other topics on this website that are
interesting to you.
Now perform a search on “Organizational Behavior” using three different search engines. Do the results
differ or are they the same? If they differ, why do you think they are different? Write a paragraph or two
answering these questions based on what you learned from researching search engines. Also, include
another paragraph providing examples and/or reasons of when you would choose one search engine over
another.
1. The text tells us that OB replaces intuition with systematic study. Where do scholars prepare for a
career researching OB topics? Additionally, what if you decide at some point to pursue graduate study
in OB? Where would you go? Perform a search to identify two to three graduate programs in OB and
print out the home page with the descriptions of these programs and bring them to class. Note that
different schools have programs in different departments and disciplines, which shows the diversity of
thinking about OB in these programs. If you need ideas as to where to start, try:
a. Harvard: http://www.hbs.edu/units/ob/index.html
b. Official website of the Organizational Behavior Division of the Academy of Management:
http://www.obweb.org/
If time allows, discuss as a class the information you found on the general areas of study and the
types of courses required in graduate work in OB.
2. One of the challenges facing managers is the fact that organizations are no longer constrained by
national borders.
a. Go to the SHRM homepage (www.shrm.org) and identify OB topics that relate to globalization.
b. Choose one of the topics and, on a separate paper, write three questions you have on the topic.
Click on the topics or links on the SHRM homepage and try to find the answers. If you find what
3. Many organizations look for ways to promote diversity through family-friendly policies. Look for
three companies that are incorporating family-friendly policies into their HRM strategy. On a separate
paper, answer the following questions:
a. Who are the companies? (Be sure to list their websites, too.)
b. What are their policies?
c. How do these policies attract and keep people?
4. Find an organization that directly addresses the cost of absenteeism or turnover on its website. What,
if anything, is that organization doing to reduce those costs? What did your search tell you in terms of
some websites to get you started, but do not hesitate to perform your own search:
a. www.shrm.org
b. http://www.jointventure.org
c. http://eafinc.org
