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MAKING OB WORK FOR ME
What Is OB and Why Is It Important?
MAJOR TOPICS I’LL LEARN AND QUESTIONS I
SHOULD BE ABLE TO ANSWER
1.1 THE VALUE OF OB TO MY JOB AND
CAREER
MAJOR QUESTION: How can I use knowledge of
08 to enhance my job performance and career?
1.2 HUMAN AND SOCIAL CAPITAL
MAJOR QUESTION: How can human and social
capital affect my career opportunities and job
performance?
1.3 RIGHT VS. WRONG-ETHICS AND
MY PERFORMANCE
MAJOR QUESTION: Why do people fail into ethical
learn from that?
1.4 APPLYING OB TO SOLVE PROBLEMS
MAJOR QUESTION: How can I apply OB in a practical
way to increase my effectiveness?
1.5 STRUCTURE AND RIGOR IN SOLVING
PROBLEMS
MAJOR QUESTION: How could I explain to a fellow
student the practical relevance and power of 08
to help solve problems?
1.6 THE INTEGRATIVE FRAMEWORK FOR
UNDERSTANDING AND APPLYING OB
MAJOR QUESTION: How can the Integrative
Framework help me understand and apply dB
knowledge and tools—and improve my problem
solving?
— ubib
Without pethlk56°” .
YOUR FUTURE
Imagine you are about to walk in
the door and start your first full-time
job. It’s the job you’ve always
wanted. Or if you are working now,
imagine you’ve finally won the
promotion you’ve worked so hard
for, and you’re about to enter your
new office or work area on a
new floor. Both cases are full of
excitement—your professional
life has so much promise!
Now take stock of your existing
knowledge, skills, experiences, and
common sense. Even with these assets, wouldn’t you want
to give yourself an even greater advantage and transform
your knowledge and common sense into practical benefits
at your job? After all, what value are your talents if you don’t
apply them?
This is why we study OB.
KNOWLEDGE IS NOT ENOUGH
Expertise alone does not solve business problems. For
decades, businesses have attributed their successes to the
knowledge or technical expertise of their employees.
The rationale was that if workers had the knowledge and
necessary technical training, then results would automatically
follow. But over time firms have realized that knowledge and
training alone do not guarantee success. In recent years,
business experts have called this disparity the knowingdoing gap? The knowing-doing gap identifies the gap
between what people know and what they actually do. For
instance, everybody knows that treating people with respect
is a good idea, but some managers don’t always do this.
Closing such gaps is an important element of your own
success at school, work, and home. This also is a major
focus of OB and this book.
THE LIMITS OF COMMON SENSE
You may feel that common sense will go a long way
toward solving most business and career challenges. But
you’d be wrong. If common sense were all that mattered,
businesses would be more successful and all managers
would be effective, while you and other new employees
would consistently be happy and perform at your very
best. However, this certainly isn’t true of all employers
and managers, and entry-level employees are often ill
prepared and underperform.
WHERE EMPLOYERS SAY
NEW HIRES FALL SHORT
Fortune published results from a
Global Strategy Group study of
500 senior managers and executives.
Only 65 percent of these business
leaders found new employees
“somewhat prepared” for success
in business, while a significant
percentage said new employees are
“not prepared at all.” Jeffrey Holmes,
a principal at architectural firm
Woods Bagot and sponsor of the
survey, confirmed these findings and said: “Companies
need people who can synthesize information and apply
it to business problems…. There’s less room for new
hires who don’t have that ability. Technical skill is not
enough.” This preference applies to both bachelors and
masters students.2
EMPLOYERS WANT PROBLEM SOLVING
AND CRITICAL THINKING
Regardless of your area of study, arguably the greatest
benefit of your education is developing problem-solving and
critical thinking skills. The Global Strategy Group survey of
executives revealed that the most sought-after skills for
all entry-level employees were problem solving (49%),
collaboration (43%), and critical thinking (36%).3 Building your
skills in these areas is the overarching goal of this book.
FOR YOU WHAT’S AHEAD IN THIS CHAPTER
You’ll learn how OB can drive your job and career
success. We’ll explain why it’s important that you and
your employers invest in building both your human
and social capital. We’ll also explore how ethics are
integral to long-term individual and organizational
success and we’ll introduce a problem-solving
framework you can use in a wide variety of situations
at school, work, and life more generally. But what really
powers this book is our Integrative Framework for
Understanding and Applying OB, which we introduce
mid-chapter. This framework will help you organize
and apply OB concepts and tools as you learn them.
1.1
THE VALUE OF OB TO MY JOB AND CAREER
MAJOR QUESTION
How can I use knowledge of OB to enhance
my job performance and career?
THE BIGGER PICTURE
•
Are you uncertain about the value of organizational behavior (OB) and how it fits into your
curriculum, or even into your professional life? Use that uncertainty to judge how well this
section makes the case for the value of OB. You’ll see how OB knowledge and tools can
enhance your personal job performance and career success. Look for the differences between
what it takes to get hired versus promoted, and the importance of building your human and
social capital. All of these topics affect your future.
The term organizational behavior (08) describes an interdisciplinary field dedicated to understanding and managing people at work. This includes self-management.
OB draws on research and practice from many disciplines to deal with how people
behave at work, including:
•
•
•
•
•
Anthropology
Economics
Ethics
Management
Organizational Theory
• Political Science
• Psychology
• Sociology
• Statistics
• Vocational Counseling
As you can see, OB is very much an applied discipline that draws from many
sources; its value depends on its usefulness to your job and career. In that spirit, we
wrote this book to make the material as applied and useful for you as possible.
Let’s begin by looking at how OB compares to your other courses and explain
the contingency perspective, which is the fundamental premise of contemporary OB.
How OB Fits into My Curriculum and Future Success
Consider how OB fits in with other courses in your curriculum. Organizational behavior is an academic designation focused on understanding and managing people at
work. This includes managing yourself, as well as others, up, down, and sideways.
But unlike jobs associated with functional disciplines (like accounting, marketing,
and finance), you will not get a job in OB.
So then, what is the benefit to learning about and applying OB? The answer is
that the effective application of OB is critical for your success in all fields and across
disciplines. As you’ll learn, technical knowledge associated with any given job is
important, but what makes the difference is your ability to influence, get along with,
and manage others. People skills! Applying OB knowledge and tools gives you job
opportunities, sets you apart from your peers and competition, and contributes to
your success. And an important part of your success is your ability to know which
tools to use and under what circumstances. This is described as a contingency approach to managing people and is the foundation of contemporary OB.
4
PART 1 Individual Behavior
A Contingency Perspective—The Contemporary Foundation of OB A contingency approach calls for using OB concepts and tools as situationally appropriate,
instead of trying to rely on “one best way.” This means there is no single best way to
manage people, teams, and organizations. The best or most effective course of action
instead depends on the situation. A particular management practice that worked today
may not work tomorrow. What worked with one employee may not work with another.
This is why the contingency approach is so central to OB. It is both pragmatic
and demanding. Pragmatically, the user of the approach is not looking for any single approved or canned response but the one that will work most appropriately.
Demanding, because the user of the approach must often work to find that appropriate solution. We will expand on the contingency approach later in this chapter.
Harvard’s Clayton Christensen puts it like this: “Many of the widely accepted
principles of good management are only situationally appropriate.”` In other words,
don’t use a hammer unless the job involves nails. You’ll learn in Chapter 13, for instance, that there is no single best style of leadership. In this way, OB differs from
many of your other courses in that answers are not always black and white, right or
wrong, but instead the best answer (behavior) depends on the situation. The explicit
consideration of the situation or environmental factors is fundamental to OB and is
emphasized later in the chapter and throughout the book.
Accordingly, to be effective you need to do what is appropriate given the situation, rather than adhering to hard-and-fast rules. Organizational behavior specialists, and many effective managers, embrace the contingency approach because it
helps them consider the many factors that influence behavior and performance
within and among individuals, groups, and organizations. Whether you are a manager or employee, you need to consider many potential factors that can influence
your performance and the performance of the people you may manage or affect.
You also need to be aware of your own preferences or typical responses, and question them so as to do what the situation requires, rather than default to personal
habit or organizational custom. Taking a broader, contingent perspective like this
is a fundamental key to your success in the short and long term.
The following Example box illustrates how Google has applied the contingency
approach and changed some of its benefits to more precisely meet employees’ preferences for work–life balance and parenthood.
EXAMPLE
Google Search: “How Can We Keep Talented Employees?”
While Google’s talent is constantly being poached by its competitors, some employees simply quit, especially women.
The company noticed that many women were leaving, or, more precisely, not returning after maternity leave. Some
women of course choose to stay home after childbirth. However, Google realized that such employees were leaving at
twice the average rate of all employees. It then explored the possibility that its policies might play a role.
THE INDUSTRY STANDARD Generally, the tech industry, Silicon Valley in particular, offers 12 weeks of paid time off
for maternity leave and seven weeks for employees outside of California.
NEW PLAN Google’s response was to offer five months of full pay and full benefits! Better still, new mothers can split
the time and take some before the birth, some after, and some later still when the child is older.
NEW PLAN PLUS Seven weeks of “new-parent” leave is now offered to all of its employees around the world. This
enables new mothers and fathers the opportunity to manage their time and new joy/baby.5 Other companies expand
these practices further still. Alston & Bird, an Atlanta-based law firm, provides employees $10,000 and 90 days of paid
leave toward adoptions. Infertility issues are also covered by their health plan.’
YOUR THOUGHTS?
1.
If you alone could make policies at Google (or where you work), what would you do to keep valuable employees?
2.
How could you apply the contingency approach to make these and other policies more effective?
3.
What else would you do?
Making OB W rk for Me
CHAPTER 1
5
Uncommon Sense At first glance the contingency perspective may look like sim-
ple common sense. But it’s different. It attempts to overcome the limits of common
sense by not settling for traditional options if another solution may be more practical
and effective. Similarly, understanding the Integrative Framework and 3-Stop Problem Solving Approach you’ll learn about later provides more insight than common
sense alone. The goal of OB is to give you more than common sense and instead enhance your understanding of situations at work and guide your behaviors.
Moreover, common sense has three main weaknesses that you need to consider
and avoid.
• Overreliance on hindsight. Common sense excels in well-known scenarios with
predictable outcomes. But much of modern business involves uncertainty and
adapting to change. In other words, common sense is especially weak in responding to the unknown or unexpected. And because it focuses on the past,
common sense lacks vision for the future.
• Lack of rigor. If we are comfortable with our commonsense response, we may not
apply the effort required to find the real problem when considering possible causes.
This will likely result in not choosing the optimal course of action or solution. If
you lack rigor, then you are unlikely to measure the right predictors and outcomes
when solving problems.
• Lack of objectivity. Common sense can be overly subjective and lack a basis in
science. In such cases we are not always able to explain our reasoning to others,
let alone apply it to new situations.
In BusinessNew.sDaily, Microsoft researcher Duncan Watts says we love common sense because we prefer narrative. “You have a story that sounds right and
there’s nothing to contradict it.” Watts contrasts a more effective approach, as outlined in his book Everything Is Obvious Once You Know the Answer: How Common
Sense Fails Us. He advocates using a scientific approach. “The difference is we test
the stories and modify them when they don’t work,” he says. “Storytelling is a useful
starting point. The real question is what we do next.”‘
One way that OB moves beyond the limitations of common sense is by its systematic and science-based approach to understanding people and how they behave at
work. OB therefore can make you more attractive to potential employers and more
effective once employed. Let’s explore this idea in more detail, beginning with the
importance of possessing and developing both hard and soft skills.
Employers Want Both Hard and Soft Skills
Most of us know the difference between hard and soft skills.
• Hard skills are the technical expertise and knowledge to do a particular task
or job function, such as financial analysis, accounting, or operations.
• Soft skills relate to our human interactions and include both interpersonal
skills and personal attributes.
Employers are increasingly aware of the importance of soft skills. “People rise in
organizations because of their hard skills and fall due to a dearth of soft skills.”8
Maybe that’s why firms tend to weight soft skills so heavily when hiring for top positions. Recruiters rate interpersonal skills, cultural fit with the company, and leadership attributes as the top three selection criteria for MBA graduates.`
Experts agree: Anyone can take a course in C++, but it’s not going to land you the
job
The most sought-after skill-sets for recruiters are becoming less and less
about proficiency in specific [technical or job skills] and more about how you think …
and work within the context of the team. Learning [the technical details or skills of a
job] is the easy part. Having the mindset to apply it „ . [and social/psychological
dexterity] are the critical skills.1°
6
PART 1 Individual Behavior
TABLE 11
FOUR SKILLS MOST DESIRED BY EMPLOYERS
SKILL
1. Critical
thinking
DESCRIPTION
Using logic and reasoning to identify the
Z strengths and weaknesses of alternative
p■I solutions, conclusions, or approaches to
= problems.
2. Problem
solving
3. Judgment
and decision
making
4. Active
listening
THIS BOOK
Z
•
Fundamental to this book and woven
throughout. We designed features and
exercises to help you think critically and apply
your OB knowledge and tools.
Identifying complex problems and reviewing
related information to develop and evaluate
options and implement solutions.
Our problem-solving approach is used
throughout the book. We repeatedly ask you
to apply your knowledge for solving problems
at school, work, and life.
Considering the relative costs and benefits
of potential actions to choose the most
appropriate ones.
Integral to problem solving and success. We
integrate judgment and decision making in all
problem-solving content and devote an entire
chapter to these soft skills.
Giving full attention to what other people are
saying; taking time to understand the points
being made; asking questions as appropriate
and not interrupting.
Key success factor at work. We address this
directly in the chapters on influencing others
and leadership.
SOURCE: Adapted from M. Casserly, The 10 Skills That Will Get You Hired in 2013,” Forbes, December 12, 2012, http://wwwforbes.com/sitesimeghancasserly/ 2012/1210/the-10-skillsthat-will-get-you-a-job-in-2013/; and M. Robles, “Executive Perception of the Top 10 Skills Needed in Today’s Workplace,” Business Communication Ouartery, 2012, 453-65.
The above quote comes from a study by CareerBuilder on the most desired skills
for the top 10 jobs in 2013. Table 1.1 shows the top four such skills, along with a
brief explanation of how they are directly addressed in this book.
What do you notice about the top four items? Which are hard skills? None! Instead,
all are soft skills, the skills you need to interact with, influence, and perform with others.
Soft skills are not job specific. They are portable skills, more or less relevant in
every job, at every level, and throughout your career.” All of these and many more
soft skills represent OB topics covered in this book, whether in the personal or interpersonal domain:
Personal attributes
Interpersonal skills
(build goodwill and trust;
demonstrate integrity)
• Attitudes (Chapter 2)
• Personality (Chapter 3)
• Teamwork (Chapter 8)
• Leadership (Chapter 13)
(foster respectful interactions)
• Active listening (Chapters 12 and 13)
• Positive attitudes (Chapters 2 and 7)
• Effective communication (Chapter 9)
How OB Fits into My Career
Hard skills are of course important, as they give you credibility. For instance,
accountants need to understand debits and credits; finance people, net present value;
and both need to understand cash flows. However, to be competitive and give employers what they want, you need to develop your soft skills as well. In fact, certain
kinds of soft skills increase in importance over one’s career and help set you apart
from your competition.”- To highlight this point, think about the criteria used for
hiring workers versus promoting them.
• What It Takes to Get Hired. Regardless of where you are in your career today, ask
yourself: What criteria were used to hire you for your first job? What factors did
your hiring manager consider? (If your first job is still ahead of you, what factors
do you imagine are most important?) Most of you will identify things like education, grades, interpersonal skills, and experience. In short, for most jobs you are
Ma king OB W rk for Me
CHAPTER 1
7
An understanding of OB can give you extremely
valuable knowledge and tools to help “sell”
yourself during job interviews. Applying this OB
knowledge can also enhance your chances for
promotions.
selected for your technical skills, your ability to do the given job. Firms
may assume you. possess particular competencies needed to meet basic
job responsibilities based on your education (say an accounting degree
if you’re going to be an auditor or a finance degree if you’re going to be
an analyst).
• What It Takes to Get Promoted. Now ask yourself, what criteria are
being used for promotions? Of course, often performance in the current job will be a primary consideration. However, …
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