Managing across National Boundaries

Several U.S firms have chosen to lower their cost by setting up assembly plants in less developed
countries, such as Mexico , where the wage scale is lower. The firm ship parts to the assembly plant, use
cheap labor to perform assembly operation, and then ship the finished product back to market in the united
states. While this practice helps the firms remain competitive from a price standpoint, it raise some
interesting behavioral issues. For example, is it appropriate for firms to implement one model of
organizational behavior (e.g., a supportive or a collegial one) in their U.S facilities and consciously choose
another model (e.g., a custodial one) in Mexico? Another interesting dilemma arises when job in the United
States are lost as a result of these foreign assembly plants-does a firm need to revert to a custodial model
in the U.S operations when it sense that employees there fear that their job security is becoming highly
threatened?

The primary challenge for management is to identify the model it is actually using and then assess
its current effectiveness. This self-examination can be a challenge for managers, who tend to profess
publicly one model (e.g., the supportive, collegial, or system) yet practice another. (This may occur in
multinational firms; see “Managing across National Boundaries.”) In effect , a manager has two key task -
to acquire a new set of value as model evolve and to learn and apply the behavioral skills that are
consistent with those values. These tasks can be very difficult to accomplish.

Relation of model to human needs A second conclusion is that the five models discussed in this
chapter are closely related to human needs. New models have been developed to serve the different needs
that become important at the time. For example, the custodial model is directed toward the satisfaction of
employees’ security needs. It moves one step above the autocratic model, which reasonably serves
subsistence needs but does not meet needs for security. Similarly, the supportive model is an effort to meet
employees’ other needs such as affiliation and esteem, which the custodial model is unable to serve.

A number of people have assumed that emphasis on one model of organizational behavior is an
autocratic rejection of other model, but comparison suggests that each model is built upon the
accomplishment of the other. For example, adoption of a supportive approach does not mean
abandonment of custodial practice that serves necessary employee security needs. What does it means is
that custodial practice are given secondary emphasis, because employees have progress to a condition in
which newer needs dominate. In other words, the supportive model is the appropriate model to use at that
point because subsistence and security needs are already reasonable met by a suitable structure and
security system . If a misdirected modern manager should abandon these basic organizational satisfy those
needs for its people.

Increase Use of Some Models A third conclusion is that the trend toward the supportive, collegial, and
system models will probably continue. Despite rapid advance in computer and management information
system, top managers of giant, complex organizations cannot be authoritarian in the traditional sense and
also be effective. Because they cannot know all that is happening in their organization, they must learn to
depend on other center of power nearer to operating problems. They are often forced to literally redefine
the old psychological contract and embrace a newer, more participative one. In addition, many employee s
are not readily motivated toward creative and intellectual duties by the autocratic mode. Only the newer
models can offer the satisfaction of their needs for esteem, autonomy, and self – actualization.

Contingent Use of all Model A fourth conclusion is that, though one model may be most used
at any given time, some appropriate uses will remain for other models. Knowledge and skills vary among
managers. Role expectations of employees differ, depending upon cultural history. Policies and ways of life
vary among organizations. Perhaps more important, task condition are different. Some jobs may require
routine, low skilled, highly programmed work that will be mostly determined by higher authority and will
provide mostly material rewards and security (autocratic and custodial conditions). Other jobs will be
unprogrammed and intellectual, requiring teamwork and self – motivation. Employees is such jobs
generally respond best to supportive, collegial, and system approaches. Therefore, probably all five
models will continue to be used, but the more advanced models will have growing use as progress in made
and employee expectations rise.

Managerial Flexibility the preceding discussion rests on a central conclusion: managers not only
need to identify their current behavioral model but also must keep it flexible and current. There is great
danger in paradigm rigidity, when the changing nature of people and conditions demands new responses,
but managers cling to old beliefs and practices, Managers need to read, to reflect, to interact with others,
and to be receptive to challenges to their thinking from their colleagues and employees. The following
analog illustrates this progress:

Skydivers know that parachute tightly packed for long periods of time might develop undesirable
permanent folds in the fabric, which could keep it from opening properly when needed. To prevent this all
parachutes are periodically unpacked and hung in storage sheds to “get the kinks out” then they are
repacked for safe usage. Similarly, wise managers benefit from occasionally sharing their organizational
behavior models with others, thus opening them up to public security. Then, after making appropriate
revisions to their models the managers “pack them up” and put the improved paradigms back to work
again.

Every firm has an organizational behavior system. IT includes the organization’s stated or unstated
philosophy, values, vision, mission, and goals ; the quality of leadership, communication, and group
dynamic; the nature of both the formal and informal organizations; and the influence of the social
environment. These items combine to create a culture in which the personal attitudes of employees and
situational factors can produce motivation and goal achievement.

Five models of organizational behavior are the autocratic, custodial, supportive, collegial, and
system. The supportive, collegial, and system models are most consistent with contemporary employee
needs and therefore, will predictably obtain more effective results in many situations. Manager need to
examine the model they are using, determine whether it is the most appropriate one, and remain flexible in
their use of alternative and emerging models

Communication a major tool for expressing managerial models, provides the focus for chapter 3.
Then the idea of organizational behavior models is extended in chapter 4, as we discuss social system,
roles, and status. Specifically, we look at the creation and impact of organizational cultures, which help
employees sense which organizational behavior model is in use.

Advice to Future Managers

1. Remind yourself to think about organizational behavior from a system perspective, envisioning how
any one element of the system or action by yourself will likely impact other parts of the parts of the
OB system.
2. List, examine, and reevaluate your fact premises about people periodically to see if they need
updating. Then create a separate list of your value premises and share these with a colleague or
friend to see if they withstand open scrutiny.
3. Show your employee the list of assumptions that underlie Theory X and Theory Y. then ask them
for illustrations that indicate you are using either of the two paradigms. Invite them to help you
make your actions more consistent with Theory Y.
4. Examine the five models of OB every so often. Search for ways in which you could be using
features from the more advanced models (supportive, collegial, system)
5. Report to a close friend the ways in which you have actively changed your underlying OB model in
the past few years, so ready to provide specific examples.
6. Review the discussion on authenticity resolve to be more open, transparent, and ethical in your
dealings with other at work.
7. Read about spirituality and employees’ desire for the right to discuss such issues at work. Make a
decision now as to how you might handle such a request should it arise.
8. Make a conscious study of your language at work. Resolve to reduce or eliminate negative
language while increasing your focus on positive terms.
9. Make an inventory of the ways in which you (or others) exhibit micromanagement behaviors.
Explore ways to reduce such close security and control.
10. Often mangers and employees differ in their perceptions of which OB model is in use. Set aside
some time to investigate employee perceptions of the OB model that is dominant in your
workplace.
Firms and authenticity,36 Models, 28 Spirituality, 36
Concepts for autocratic model, 31 Organizational behavior Supportive model, 33
Views Collegial Model,34 System, 25 System model, 35
Custodial model, 32, 34 Paradigms, 29 Theory X, 28
Fact Premises, 26 Philosophy, 25 Theory Y, 28
Goals, 27 Positive Organizational Value Premises, 27
Micromanagement, 32 Behavior, 36 Vision, 27
Mission, 27 Social Intelligence, 36,37

Discussion
Question
1. Interview some managers to identify their visions for their organizations. What are those visions?
Where did they come from? How successfully have they been communicated to the employees,
and how successfully have they been embraced by the employees?
2. Both philosophy and vision are somewhat hazy concepts. How can they be made clear to
employee? Why are philosophy and vision included as early elements in the organizational
behavior system? Give an example of an organizational vision that you have read about or heard
of.
3. What benefits do you see from allowing and encouraging spirituality at work? What are the risk of
doing so?
4. Consider an Organization where you now work (or where you have worked). What model
(paradigm) of organizational behavior does (did) your supervisor follow? Is (was) it the same as top
management’s model?
5. Discuss similarities and differences among the five models of organizational behavior.
6. What model of organizational behavior would be most appropriate in each of the following
situations? (assume that you must use the kinds of employees and supervisors currently available
in your local labor market)
 Long distance telephone operators in a very large office
 Accountants with a small certified professional accounting firm
 Food servers in a local restaurant of a prominent fast-food chain
 Salesclerks in a large discount department store.
7. Discuss why the supportive, collegial, and system models of organizational behavior are especially
appropriate for use in the more affluent nations.
8. Interviewer a supervisor or manager to identify the model of organizational behavior that person
believes in. Explain why you think that the supervisor’s or manager’s behavior would or would not
reflect those beliefs.
9. Examine the trends in the model of organizational behavior as they have developed over a period
of time. Why have the trends moved in a positive direction?
10. Assume that a friend of yours contends that “the system model is obviously ‘best’ to use with all
employees, or it wouldn’t have been placed on the right side of the figure.” How would you
response?
How well do you exhibit facilitator skills?

Read the following statements carefully. Circle the number on the response scale that most closely
reflects the degree to which each statement accurately describe you. Add up your total points and prepare
a brief action plan for self – improvement. Be ready to report your score for tabulation across entire group.

Good description Poor description

1. I know how to support

Employee Commitment
to short and long Term
goals. 10 9 8 7 6 5 4 3 2 1
2. I could coach individual
And groups in
Appropriate skills and
Behaviors. 10 9 8 7 6 5 4 3 2 1
3. I feel comfortable modeling
And fostering self
Esteem. 10 9 8 7 6 5 4 3 2 1
4. I am likely to show genuine
Concern and empathy
For people. 10 9 8 7 6 5 4 3 2 1
5. I would feel comfortable
Offering timely and
Acceptable feedback
To other. 10 9 8 7 6 5 4 3 2 1
6. I am dedicated to
Influencing people to learn
Continuously and to share
That learning with other. 10 9 8 7 6 5 4 3 2 1
7. I would help individuals
Identify and confront issues
In ethical ways. 10 9 8 7 6 5 4 3 2 1
8. I feel comfortable
Expressing caring and
Compassion to people. 10 9 8 7 6 5 4 3 2 1
9. I believe in encouraging
Feel comfortable with change
And uncertainly. 10 9 8 7 6 5 4 3 2 1
10. I would work hard to build
 Cohesive, productive
Work team. 10 9 8 7 6 5 4 3 2 1

Scoring and Interpretation

Add up your total points for the 10 questions. Record that number here, and report it when it is
requested._________ Finally. Insert your total score into the “ Assess and improve your own
Organizational behavior Skills” chart in the appendix.

 If you scored between 81-100 points, you appear to have a solid capability for
demonstrating facilitative skills.
 If you scored between 61 and 80 points, you should take a close look at the items with
lower self-assessment scored and explore ways to improve those items.
 If you scored under 60 points, you should be aware that a weaker skill level regarding
several items could be detrimental to your future success as manager. We encourage you
to review the entire chapter and watch for relevant material in subsequent chapters and
other sources.

Now identify your three lowest scored, and write the question numbers here:________,
_______,______. Write a brief paragraph, detailing to yourself an action plan how you
might sharpen each of those skills.

The New Plant Manager

Toby butterfield worked his way upward in the Montclair Company until he became assistant plant
manager in the Illinois plan. Finally, his opportunity for a promotion came. The Houston plant was having
difficulty meeting its budget and production quotas, so he was promoted to plant manager and transferred
to the Houston plant with instructions to “straighten it out”

Butterfield was ambitious and somewhat power-oriented he believed that the best way to solve
problem was to take control, make decisions, and use his authority to carry out his decisions. After
preliminary study, he issued order for each department to cut its budget 6 percent. A week later he
instructed all departments to increase production 10 percent by the following month. He required several
new reports and kept a close watch on operations. At the end of the second month he dismissed three
supervisors who had failed to meet their production quotas. Five other supervisors resigned. Butterfield
insisted that all rules and budget should be followed, and he allowed no exceptions.

Butterfield’s efforts produced remarkable results. Productivity quickly exceeded standard by 7

percent, and within five months the plant was within the budget, his record was so outstanding that he was
promoted to the new York home office near the end of his second year. Within a month after he left,
productivity in the Houston plant collapsed to 15 percent below standard and the budget again was in
trouble.
Questions

1. Discuss the model of organizational behavior butterfield and the kind of organizational climate he
created.
2. Discuss why productivity dropped when butterfield left the Houston plant.
3. If you were butterfield’s new York manager, what would you tell him about his approach ? might he
respond?

Experiential The rapid corporation

Exercise the rapid corporation is refrigeration service organization in a large city. It has about 70
Employees, mostly refrigeration service representatives. For may years the company’s
Policies have been dominated by its president and principal owner. Otto Blumberg, who
Take pride in being a “self made man”
Recently Otto and his office manager attended on organizational behavior seminar
in which the value of a written corporate philosophy for employees was discussed. Both
men agreed to draft one and compare their efforts.
1. Divide the class into three type of groups. One set of group should draft statement for
the rapid corporation based on the autocratic model: the second set should create
comparable statement of philosophy using the supportive model as a basis; the third
set should use the system model.
2. Ask representative of each group (autocratic, supportive and system) to read their
statement to the class. Discuss their major difference. Have the class debate the
usefulness of philosophy statement for guiding the organizational behavior system in a
firm of this type.

Generating an insight is a new clear perception of a phenomenon, or an acquired ability to “see”

OB insights clearly something that you were unaware of previously. It is sometimes simply referred to
As an “ah ha! Moment,” in which you have minirevelation or reach straightforward
Conclusion about a topic or issue.
Insights need not necessarily be dramatic, for what is an insight to one person
Maybe less important to another. The critical feature of insight is that they are relevant
And memorable for you. They should represent new knowledge. New frameworks, or new
Ways of viewing things that you want to retain and remember over time.
Insight then are different from the information that you find in the “advice for future
Managers” boxes within the text. That advice is prescriptive and action – oriented, it
Indicates a recommended course of action.
A useful way to think of OB insight is to assume that you are the only person who
Has read the current chapter. You have been given the assignment to highlight, in your
Own words, the major concept (but not just summarize the whole chapter.) that might
Stand out for a naïve audience who was never heard of the topic before. What 10 sight
Would you share with them.?

1. (example) it is helpful to make a holistic view organization as a system of interdependent parts.

2. ___________________________________________________________________________
3. ___________________________________________________________________________
4. ___________________________________________________________________________
5. ___________________________________________________________________________
6. ___________________________________________________________________________
7. ___________________________________________________________________________
8. ___________________________________________________________________________
9. ___________________________________________________________________________
10. ___________________________________________________________________________
Chapter three

Managing
Communications

The best strategy for communication may be this: preparation to be misunderstood. And
don’t insist that your meaning is the right one. Sometimes what your listeners hear is more
interesting that what you’ve actually said.
Don moyer’1

Great decisions begin with really great people and simple statements; I don’t know.
Jim collins2

Chapter Objectives
 The two – way communication process
 Barriers to communication
 Factors leading to effective communication
 Downward and upward communications problems
 The roles of questioning and listening
 The impact of electronics communications
 Organizational grapevines and rumors

Member of a hospital’s board of director were listening to an appeal to spend substantial

capital funds to upgrade a CT scanner. “but why do we need all of these extra features?”
asked one board member. “because” explained a physician, “it will allow us to reexamine the
CT scans for a patient from a different set of perspectives after he or she Is gone .” but why
would you care to analyze the scans after a patient is dead?” innocently asked another board
member (who happened to be a funeral director.). only after widespread laughter did the
physician realize that his use of the word “gone” had two different meaning among his
audience – departed from the health care facilities versus departed from this world.