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Chapter Eight: Managing Employee Behavior
Chapter Synopsis
This chapter focuses on managing employee misbehavior by taking an active position. It means that
managers must act, solve, and correct problems.
The discussion begins by identifying common forms of misbehavior, such as fraud and bribery, the
repercussions of such behavior, and possible management interventions. Following this is a more
Learning Objectives
After completing this chapter, students should be able to:
1. Explain why the management of employee behavior is an important responsibility that
managers must address.
2. Describe some of the outcomes of misbehavior in terms of property, politics, performance,
interpersonal relations, and intrapersonal relations.
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Key Terms
sexual harassment—Unwelcome advances, requests for sexual favors, and other types of verbal,
psychological or physical abuses.
aggression—In the work setting, this is behavior that brings harm to others with whom the aggressor
works or has worked.
fraud—An intentional act of deceiving or misrepresenting to induce another individual or group to
give up something of value.
cyberslacking—The use of the Internet during office or work hours for personal reasons.
sabotage—An extreme form of workplace violence instituted to disrupt, destroy, or damage
equipment, data, or a work area.
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Lecture Outline
The Chapter outline is organized to correspond with the PowerPoint slides.
The chapter title slide may be used as a background to introduce the class.
Learning objectives
Review the chapter learning objectives. These will be reviewed on the last slide of the pack.
refer to in this chapter as managing employee misbehavior (MEM). This chapter recognizes that the majority of employee
behavior is positive and directed toward the accomplishment of meaningful goals. However, occasionally managers need to
deal with MEM in an organized, systematic manner.
EXHIBIT 8.1 Examples of Misbehavior at Work
Exhibit 8.1 lists misbehaviors in an organizational setting. The list is only a partial presentation of misbehavior that needs
management intervention. The popular press contains many stories and analyses of violent acts in the workplace, financial
fraud, and malfeasance, or lawsuits filed and settled involving sexual harassment, identity theft, or discrimination.
The Study of Misbehavior (MEM)
Although the majority of management researchers have largely ignored misbehavior in organizations, other disciplines have
studied it for years. Studies of the impact of an occupational structure on criminal workplace behavior, embezzlement,
the actor (criminal).
Types of Organizational Crime
Coleman also differentiated between occupational crime, or crimes to benefit the criminal conducted without organizational
support, and organizational crime, which is conducted with the support of an organization.
Exhibit 8.2 A Model of Organizational Misbehavior
Exhibit 8.2 displays four types of antecedents to misbehavior—individual, job, group, and organizational. The selection of
characteristics displayed is based on available studies, frameworks, and discussions previously established on each of the
Factors in Organizational Misbehavior
This slide provides in larger text key components of figure 8.2
The four types of antecedents to misbehavior—individual, job, group, and organizational. The selection of characteristics
displayed is based on available studies, frameworks, and discussions previously established on each of the factors
Mediators
Outcomes
The examples of misbehaviors (outcomes) presented in Exhibit 8.2 are some of the more researched, reported, and analyzed
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misbehaviors, but more examples exist. Five specific categories that are discussed in the literature are interpersonal,
intrapersonal, performance, property, and political.
Costs
The potential costs of employee misbehavior to individuals, groups, organizations and other societal groups can be
substantial
Management Interventions
Management interventions are the actions taken by managers (representing the organization) to prevent, control, or respond
to harmful misbehavior. Exhibit 8.2 displays three specific points for management intervention—A, B, and C. At point A,
management can carefully screen and refuse to hire “risky” individuals. Management can also intervene at other antecedent
organizations use mentor programs to provide a role model of proper (normative) attitudes and behavior and communicate
through mentor–mentee discussions the consequences of misbehaving (instrumental).
The intention of an intervention at C shifts from prevention to deterrence. The manager works to reduce the possibility of the
intention to misbehave.
Sexual Harassment (1 of 2)
Sexual harassment is an important topic and has been the subject of a considerable amount of research in recent years. More
than 70 percent of female employees report they have been the objects of sexually harassing behaviors while working. Sexual
harassment is a form of aggression as well as unethical behavior. Broadly defined, this misbehavior is characterized by
unwelcome advances, requests for sexual favors, and other types of verbal, psychological, or physical abuses.
From a legal perspective, there are several types of sexual harassment, including:
1. Quid pro quo. This form of sexual harassment occurs when an employee’s compliance with requests for sexual favors are
related behavior is illegal.
Sexual harassment (2 of 2)
Sexual harassment occurs because of power differences, lust, and reasons that are not entirely understood. It occurs across
gender lines and across sexual orientations. It is not only misbehavior but is also illegal. Sexual harassment is a form of
discrimination, but in addition, harassed employees can file claims for battery and defamation. According to the U.S. Equal
Employment Opportunity Commission, there were 11,364 charges of sexual harassment filed in 2011 that resulted in
companies paying out $52.3 million.
Recognizing Sexual Harassment Behaviors
How can a manager recognize a behavior as sexual harassment? There are a few tests for focusing on and categorizing
victim were present? Would you as an observer want the behavior or allow the actions to be done to your daughter?
The Public Forum Test. Is this a behavior you would like to see in the newspaper or hear about in a radio broadcast or on a
television news program?
Dual Treatment. Is this done to other people, of both sexes, frequently? These are general rules to help managers assess the
behaviors of others, as well as their own behaviors. Considering the responses to these kinds of questions can help a manager
govern his or her own behavior and decide how and when to intervene.
Aggression and Violence (1 of 2)
The word aggression is used to describe many forms of behavior. Concisely put, aggression at work is the effort of an
individual to bring harm to others with whom the person has worked or currently works at an organization (i.e., current or
past). The attempt to bring harm is intentional and includes psychological as well as physical injury. There are over 2 million
workplace physical assaults annually.
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Aggression and Violence (2 of 2)
According to the Occupational Safety and Health Administration (OSHA), workers who do the following activities are at an
increased risk of being victims of workplace violence: exchange money, make deliveries, work alone, work late nights or
work in settings/homes with extensive contact with the public. High-risk occupations include: visiting nurses, psychiatric
evaluators, phone and cable TV installers, retail workers, and taxi drivers.
Types of Workplace Aggression
A review of the organization science literature suggests that aggression has only recently been considered worthy of study.
Buss has categorized aggression along physical, verbal, active, passive, direct, and indirect dimensions.
Individual Differences and Violent Tendencies
In the research attempting to find a link between individual differences and aggression, some of the individual differences
anxiety. For example, studies report that males are more aggressive than females and score higher on attitude toward revenge
than females. Other studies on workplace violence, physical or emotional, report it can occur between colleagues, customers,
and management. It includes, but is not limited to, threats, bomb scares, obscene phone calls or e-mail messages, sexual and
verbal harassment, beatings, and shootings.
Bullying (1 of 3)
The notion of workplace bullying is being discussed and studied more frequently; however, still only a limited number of
studies focus on bullying as misbehavior. Bullying is defined as repeated actions that are directed toward another worker,
which are unwanted, which may be done deliberately or unconsciously, but clearly cause humiliation and distress, and create
an unpleasant work setting. The behaviors of a bully are intended to be hostile actions or are considered by the victim to be
hostile.
Bullying (2 of 3)
emotional reactions from the victim, a tendency to blame the victim, no effort to resolve the conflict, and an attempt to gain
control through conflict.
Bullying (3 of 3)
Organizational research on workplace bullying generally falls into two types: studies of the characteristics of victims and
bullies; and studies that focus on the social context in which bullying occurs. Researchers have found that many victims
perceive envy as the reason for the hostility directed at them; they also have inadequate coping skills, are introverted, and
have low self-esteem. Other researchers have found that overachievers are bullied more frequently than average performers.
Bullies have been known to possess high levels of aggression, but the research to develop a bully profile is sketchy,
incomplete, and inconclusive. Researchers have begun to consider the role of the social context and organizational structure
of the workplace to see how they influence bullying behavior.
Incivility
Workplace incivility involves acting rudely, discourteously, or in a demeaning manner toward others. It is on the low end of
conduct themselves in a civil way. It is also important for employees to treat customers or external individuals interacting
with an organization with respect. Being civil or polite with regard to others in an organization constitutes what is called
organizational citizenship behavior (OCB).
Examples of Incivility
Incivility includes condescending remarks, being disruptive in meetings, ignoring others, insulting another person, being
abrupt, giving negative eye contact, not answering when asked a question, refusing to say “thank you” or “please,”
interrupting others when speaking, and sending “flaming” e-mails.
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Incivility is Costly
When incivility is prevalent or becomes a part of the work culture, the effects can be costly. Conflict emerges, which detracts
from productivity. According to recent research, employees who are the recipients of uncivil behavior experience the
following:
•Increased job stress and dissatisfaction.
Preventing Incivility
To combat incivility problems, a growing number of firms are using training and education programs to involve participants
in practicing civility and proper etiquette.
Fraud (1 of 2)
Fraud is defined as the intentional act of deceiving or misrepresenting to induce another individual or group to give up
something of value. Managers and non-managers have been indicted and convicted of fraud.
Fraud (2 of 2)
A study of over 12,000 employees found that 90 percent engaged at some time in workplace misbehaviors such as gold–
bricking, sick time abuses, and fraud. Surprisingly, about 33 percent of the employees actually stole money or merchandise
Substance Abuse (1 of 2)
Substance abuse among workers represents billions of dollars in organizational financial loss. Research in the U.S. workplace
suggests that alcohol use directly impacts approximately million people; and illicit drug use at work affects an estimated
million individuals.
Illicit drug use costs over $193 billion annually because of lost productivity, premature and preventable health problems,
increased workers’ compensation claims, and behavioral problems.
Substance Abuse (2 of 2)
Some researchers have investigated the work context in alleviating the substance abuse problem. Is there a set of job-related
stressors that contribute to substance abuse on and off the job? The results of investigating whether alcohol, marijuana, and
Cyberslacking (1 of 2)
The Internet has provided a technology feature that has enabled many employees to slack off their regular work. Employees
have used the Internet for prohibited nonwork usage. Surfing the Internet for personal reasons is apparently widespread.
The use of the Internet for personal reasons is cyberslacking. This costs organizations in lost time and energy being devoted
to non-organization matters. Personal cyberslacking can also burden an organization’s computer network. Employees who
access pornography sites in offices may also contribute inordinately to sexual harassment behaviors
Cyberslacking has increased, and so has workplace surveillance of employees. Many U.S. organizations now practice
electronic monitoring of employees on the job. E-mail, computer files, and interactions with customers are popular areas of
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monitoring. Electronic monitoring allows managers to review everything said, written, or read. Organizations have used
electronic monitoring information to fire employees who mix personal and organizational business. A recent survey
sponsored by the American Management Association and the ePolicy Institute reported that more than one-quarter of
employers have fired employees for the misuse of e-mail, and about one-third have fired employees for misusing the Internet.
Sabotage
A potentially costly form of misbehavior is sabotage that involves damaging or destroying an organization’s or colleague’s
equipment, workspace, or data. Sabotage is a tangible expression of aggression or violence. Increasingly, co-workers are
purposefully erasing databases and destroying other items.
Sabotage Targets
Sabotage at its extreme is a form of violence. It has been described as misbehavior that includes a bit of revenge. The person
resorting to sabotage is attempting to disrupt, destroy, or dismiss the organization. Three types of sabotage targets exist:
people, equipment, and operations. In sabotaging people, the objective is to destroy the person’s career, progress, reputation,
or work area. The sabotage of equipment or operations involves physically destroying something. The use of sabotage is
usually the method of choice of people who are bored and not challenged, believe that some-thing in their work history was
very unfair to them, or want to gain an advantage over a colleague.
Theft
Theft is defined as the unauthorized taking, consuming, or transfer of money or goods owned by the organization. This
definition of theft should indicate that stealing is not limited to tangible property. Data, information, and intellectual property
can and are stolen.
EXHIBIT 8.3 Personal Use of Social Media at Work
Examples of use of social media use are provided in the exhibit.
Students may wish to discuss when using social media would be misbehavior (theft) and when it would be acceptable.
EXHIBIT 8.4 Facts about Employees Who Steal from Their Companies
Incidents of employee fraud cause on average a loss of $150,000 with 23 percent causing losses of over $1 million.
Privacy In The Workplace (1 of 3)
Privacy in the workplace is an important issue facing managers and employees. The managerial perspective on privacy
includes the right to do drug testing, electronic workplace searches, surveillance by tape recording or video, and monitoring
off-duty conduct.
Privacy In The Workplace (2 of 3)
Privacy rights for public employees are found in the U.S. Constitution and are generally broader than the privacy rights of
employees in the private sector. Privacy rights stem from different parts of the Bill of Rights. The First Amendment protects
an employee’s freedom of speech and association. The Fourth Amendment prohibits unreasonable searches and seizures. The
Fifth Amendment ensures against self-incrimination, and the Fourteenth Amendment guarantees due process and equal
protection. Various state constitutions also include a right to privacy.
the right to routinely inspect e-mail messages of employees. The Fourth Amendment of the Constitution protects written
communications from unreasonable searches and seizures. E-mail has the same immediacy as a telephone conversation, yet it
has the permanence of a written document since these messages can be saved. These qualities have led the courts to regard e–
mail as not being entitled to the same Fourth Amendment protection as telephone calls and written documents.
The courts have reaffirmed that employers can read e-mails sent over their computer systems even if employees are
uninformed of the policies
Organizational Threshold
A controversial question is whether employees give up all civil liberties once they cross into the organization. Are there any
workplace rights, and shouldn’t privacy be a top one? This question is more than a philosophical issue. There is a reciprocal
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aspect to privacy rights. The relationship between the employee and employer is reciprocal. An employer expects employees
not to share proprietary secrets, yet unless the employer respects employee privacy, the reciprocal relationship is broken or
damaged.
In Review, Did We…
Instructors may wish to use the chapter learning objectives to facilitate a review of the chapter’s major topics.
Summary of Key Points
• Misbehavior in organizations is exhibited in many different forms. In general, the
management of employee misbehavior (MEM) is the responsibility of managers in a formal
sense. The groups to which misbehaving employees belong also have an informal role to play
correcting or sanctioning misbehavior of colleagues.
• Management has a number of choices to intervene and correct or stop misbehavior. Included
in the manager’s choice set are interventions at the hiring point (before entry), to impact
normative or instrument behaviors, and to bring about deterrence.
• The possible misbehaviors confronted by managers and nonmanagers range from
cyberslacking to sexual harassment to violence. If permitted to go unchecked, these
misbehaviors result in lost productivity, higher costs, and lower morale.
Review and Discussion Questions
1. A scholar commented, “Workplace aggression is wasteful in terms of human and financial
resources.” What is meant by this statement?
Ans: Workplace aggression has many negative financial consequences, such as reduced productivity,
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2. What role can frustration, stress, and emotional disturbance play in the increase in
incivility in organizations?
Ans: Incivility is on the rise both in and out of the workplace. Although no single cause has been
pinpointed, some of the more common reasons for incivility include downsizing, envy, greed,
3. Some claim that white-collar crime is not as bad or harmful as non-managerial theft or
sabotage of property. Do you agree? Why or why not?
Ans: Student answers will vary, depending on their viewpoint. Any form or type of crime is harmful
4. When an employee is frustrated with a supervisor or colleague, do you think it is acceptable
for this employee to “vent” his/her frustrations on a social media site like Facebook?
5. There are three specific points or phases at which management has the opportunity to head
off workplace violence. What are the points, and what actions can management take?
Ans:
Point A is the pre-employment phase—management can screen and refuse to hire “risky”
6. Can a person be required to take medical tests to be considered for a new role or job? What
restrictions, if any, are placed on us of the test data?
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Ans: Organizations can utilize testing (e.g. medical, drug, psychological, or lie detector) if the test is
designed to predict a person’s ability to perform, is relatively noninvasive, and the results are
7. As a manager, why would you be interested in learning how to deal with episodes of
employee misbehavior?
Ans: Student answers will vary, but should mention some of the primary impacts of misbehavior,
8. To what degree can employee and managerial misbehavior be prevented in organizations?
What steps would you take as a leader to curtail this negative behavior??
Ans: Student answers will vary, depending on their opinion. Sample answer: Most misbehavior at
centers on fraud and embezzlement. The motivating factors seem to be greed, financial obligations,
9. What legal protections does an employee have against the employer’s use of electronic
surveillance?
Ans: Privacy rights stem from different parts of the Bill of Rights. The First Amendment protects an
employee’s freedom of speech and association. The Fourth Amendment prohibits unreasonable
10. Is there a possibility that in the near future organizations will have at their disposal tests
that can, with precision, identify job candidates with a high propensity to misbehave? Explain.
Ans: The text does not delve deeply into this issue, so student answers will be based largely on
opinion. Some may feel that current forms of testing, such as drug screening and lie detector tests,
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CASE 8.1: The (Mis)Behavior of Succesful CEOs Leads to Their Departures
1. To what degree do you believe the behaviors of the featured CEOs constituted
“misbehavior” and that the reactions of the boards were correct?
Students will present varying opinions regarding the behavior of those in the case. While it should be
noted that none of the individuals were found to have committed sexual harassment, some students
may note that the featured behavior within the work context may lead to such charges. Some
students may also note that adultery is outside of their personal ethical codes. Two of the individuals
2. If you were on a board of directors, what factors would you consider in the selection of a
CEO to limit the potential of this type of misbehavior?
While students should point out that an organization can never be certain of the future behavior of its
3. All three of the CEOs in the case were given large severance packages. what message does
this send to future CEOs of these companies? if you were on the board of directors would you
endorse such severance packages? what is the cost of not granting a competitive severance
package?
Students may indicate that they believe the severance packages effectively rewarded the behavior in
question and should not have been granted. Some students may continue stating that the granting of
these severance packages diminished the general perception of the firm beyond the specific behavior