Organizational Behavior Efforts through Human Resource functions - Business Finance
Research Question(s): How can Organizational Behavior efforts be carried out through Human Resource functions to better understand and respond to change? HR functions include:HRM StrategyRecruitmentSelectionTraining and DevelopmentAppraisal ManagementCompensation and Total RewardsRisk ManagementChoose one (1) HR function for the article review and application sections.Article Review: Provide a review of relevant scholarly articles that answer the research question(s). Keep in mind that you may have to alter the question wording in your searches in order to identify relevant works. It is important to look for key writers/researchers in the field, and prevailing theories and hypotheses. This article review should provide a foundation to answer the research question(s), but it is not meant to be an exhaustive review of all relevant literature – if you choose to pursue this topic later in your program, you will be able to use this information as a base to continue your secondary research. A review of 2-3 articles is appropriate for this section. (approx. 2 pages)Application: Explain how this HR function can be used to carry out Organization Behavior efforts in the music business. Provide specific implementation ideas. (approx. 1.5 pages)Submission Instructions:Submit your paper as a Word document.APA formatting, proper in-text citations, and references are required for all written submissions.Review the attached rubric before submitting.You will need to submit your paper to BOTH this assignment AND Turnitin separately. Turnitin is used to check for issues of plagiarism. Find the Turnitin Submission area directly below this assignment.Reference Videohttps://www.youtube.com/watch?v=rrkrvAUbU9Y&feature=youtu.beReadings & ResourcesBolman, L.G., & Deal, T.E. (2017). Reframing Organizations. (6th ed.) San Francisco, Jossey-Bass.Chapter 6: People and OrganizationsChapter 7: Improving Human Resource ManagementChapter 8: Interpersonal and Group DynamicsChapter 17: Reframing LeadershipThese chapters blend the connection of organizational behavior and human resource management. There is a focus on the fit between human needs and organizational requirements, and how to manage the two.
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CHAPTER 1
INTRODUCTION
THE POWER OF REFRAMING
By the second decade of the twenty-first century, the German carmaker Volkswagen and the
U.S. bank Wells Fargo were among the worlds largest, most successful, and most admired
firms. Then both trashed their own brand by following the same script. Its a drama in three acts:
Act I: Set daunting standards for employees to improve performance.
Act II: Look the other way when employees cheat because they think its the only way to
meet the targets.
Act III: When the cheating leads to a media firestorm and public outrage, blame the workers
and paint top managers as blameless.
In Wells Fargos case, the bank fired more than 5,000 lower-level employees but offered an exit
bonus of $125 million to the executive who oversaw them (Sorkin, 2016).
Volkswagen CEO Martin Winterkorn was known as an eagle-eyed micromanager but pleaded
ignorance when his company admitted in 2015 that it had been cheating for years on emissions
tests of its “clean” diesels. He was quickly replaced by Matthias Müller, who claimed that he
didnt know anything about VWs cheating either. Müller also explained why VW wasnt exactly
guilty: “It was a technical problem. We had not
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the interpretation of the American law…We didnt lie. We didnt understand the question first”
(Smith and Parloff, 2016). Apparently VW was smart enough to design clever software to fudge
emissions tests but not smart enough to know that cheating might be illegal.
The smokescreen worked for years—VW sold a lot of diesels to consumers who wanted just
what Volkswagen claimed to offer, a car at the sweet spot of low emissions, high performance,
and great fuel economy. The cheating apparently began around 2008, seven years before it
became public, when Volkswagen engineers realized they could not make good on the
companys public, clean-diesel promises (Ewing, 2015). Bob Lutz, an industry insider, described
VWs management system as “a reign of terror and a culture where performance was driven by
fear and intimidation” (Lutz, 2015). VW engineers faced a tough choice. Should they tell the
truth and lose their jobs now or cheat and maybe lose their jobs later? The engineers chose
option B. The story did not end happily. In January, 2017, VW pleaded guilty to cheating on
emissions tests and agreed to pay a fine of $4.3 billion. In the same week, six VW executives
were indicted for conspiring to defraud the United States.1 In Spring of 2017, VWs legal
troubles appeared to be winding down in the United States, at a total cost of more than $20
billion, but were still ramping up in Germany, where authorities had launched criminal
investigations (Ewing, 2017).
The story at Wells Fargo was similar. For years, it had successfully billed itself as the friendly,
community bank. It ran warm and fuzzy ads around themes of working together and caring
about people. The ads did not mention that in 2010 a federal judge ruled that the bank had
cheated customers by deliberately manipulating customer transactions to increase overdraft
fees (Randall, 2010), nor that in August, 2016, the bank agreed to pay a $4.1 million penalty for
cheating student borrowers. But no amount of advertising would have helped in September,
2016, when the news broke that employees in Wells Fargo branches, under pressure from their
bosses to sell more “solutions,” had opened some two million accounts that customers didnt
want and usually didnt know about, at least not until they received an unexpected credit card in
the mail or got hit with fees on an account they didnt know they had.
None of it should have been news to Wells Fargos leadership. Back in 2005, employees began
to call the firms human resources department and ethics hotline to report that some of their
coworkers were cheating (Cowley, 2016). The bank sometimes solved that problem by firing the
whistleblowers. Take the case of a branch manager in Arizona. While covering for a colleague
at another branch, he found that employees were
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opening accounts for fake businesses. He called HR, which told him to call the ethics hotline.
Ethics asked him for specific data to support the allegations. He pulled data from the system
and reported it. A month later, he was fired for improperly looking up account information.
In 2013, the Los Angeles Times ran a story about phony accounts in some local branches.
Wells Fargos solution was not to lower the flame under the pot but to try and screw down the lid
even tighter. They kept up the intense push for cross-selling but sent employees to ethics
seminars where they were instructed not to open accounts customers didnt want. CEO John
Stumpf achieved plausible deniability by proclaiming that he didnt want “want anyone ever
offering a product to someone when they dont know what the benefit is, or the customer doesnt
understand it, or doesnt want it, or doesnt need it” (Sorkin, 2016, p. B1). But despite his public
assurances, the incentives up and down the line still rewarded sales rather than ethical
squeamishness. Many employees felt they were in a bind: theyd been told not to cheat, but that
was the best way to keep their jobs (Corkery and Cowley, 2016). Like the VW engineers, many
decided to cheat now and hope that later never came.
Maybe leaders at Volkswagen and Wells Fargo knew about the cheating and hoped it would
never come to light. Maybe they were just out of touch. Either way, they were clueless—failing
to see that their companies were headed for costly public-relations nightmares. But they are far
from alone. Cluelessness is a pervasive affliction for leaders, even the best and brightest. Often
it leads to personal and institutional disaster. But, sometimes there are second chances.
Consider Steve Jobs. He had to fail before he could succeed. Fail he did. He was fired from
Apple Computer, the company he founded, and then spent 11 years “in the wilderness”
(Schlender, 2004). During this time of reflection he discovered capacities as a leader—and
human being—that set the stage for his triumphant second act at Apple.
He failed initially for the same reason that countless managers stumble: like the executives at
VW and Wells Fargo, Jobs was operating on a limited understanding of leadership and
organizations. He was always a brilliant and charismatic product visionary. That enabled him to
take Apple from startup to major computer vendor, but didnt equip him to lead Apple to its next
phase. Being fired was painful, but Jobs later concluded that it was the best thing that ever
happened to him. “It freed me to enter one of the most creative periods of my life. Im pretty sure
none of this would have happened if I hadnt been fired from Apple. It was awful-tasting
medicine, but I guess the patient needed it.”
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During his period of self-reflection, Jobs kept busy. He focused on Pixar, a computer graphics
company he bought for $10 million, and on NeXT, a new computer company that he founded.
One succeeded and the other didnt, but he learned from both. Pixar became so successful it
made Jobs a billionaire. NeXT never made money, but it developed technology that proved vital
when Jobs was recalled from the wilderness to save Apple from a death spiral.
His experiences at NeXT and Pixar provided two vital lessons. One was the importance of
aligning an organization with its strategy and mission. He understood more clearly that he
needed a great company to build great products. Lesson two was about people. Jobs had
always understood the importance of talent, but now he had a better appreciation for the
importance of relationships and teamwork.
Jobss basic character did not change during his wilderness years. The Steve Jobs who
returned to Apple in 1997 was much like the human paradox fired 12 years earlier—demanding
and charismatic, charming and infuriating, erratic and focused, opinionated and curious. The
difference was in how he interpreted what was going on around him and how he led. To his
long-time gifts as a magician and warrior, he had added newfound capacities as an
organizational architect and team builder.
Shortly after his return, he radically simplified Apples product line, built a loyal and talented
leadership team, and turned his old company into a hit-making machine as reliable as Pixar.
The iMac, iPod, iPhone, and iPad made Jobs the worlds most admired chief executive, and
Apple passed ExxonMobil to become the worlds most valuable company. His success in
building an organization and a leadership team was validated as Apples business results
continued to impress after his death in October 2011. Like many other executives, Steve Jobs
seemed to have it all until he lost it—but most never get it back.
Martin Winterkorn had seemed to be on track to make Volkswagen the worlds biggest car
company, and Wells Fargo CEO John Stumpf was one of Americas most admired bankers. But
both became so cocooned in imperfect worldviews that they misread their circumstances and
couldnt see other options. Thats what it means to be clueless. You dont know whats going on,
but you think you do, and you dont see better choices. So you do more of what you know, even
though its not working. You hope in vain that steady on course will get you where you want to
go.
How do leaders become clueless? That is what we explore next. Then we introduce reframing—
the conceptual core of the book and our basic prescription for sizing things up. Reframing
requires an ability to think about situations from more than one angle, which lets you develop
alternative diagnoses and strategies. We introduce four distinct frames—
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structural, human resource, political, and symbolic—each logical and powerful in capturing a
detailed snapshot. Together, they help to paint a more comprehensive picture of whats going on
and what to do.
Virtues and Drawbacks of Organized Activity
There was little need for professional managers when individuals mostly managed their own
affairs, drawing goods and services from family farms and small local businesses. Since the
dawn of the industrial revolution some 200 years ago, explosive technological and social
changes have produced a world that is far more interconnected, frantic, and complicated.
Humans struggle to avoid drowning in complexity that continually threatens to pull them in over
their heads (Kegan, 1998). Forms of management and organization effective a few years ago
are now obsolete. Sérieyx (1993) calls it the organizational big bang: “The information
revolution, the globalization of economies, the proliferation of events that undermine all our
certainties, the collapse of the grand ideologies, the arrival of the CNN society which transforms
us into an immense, planetary village—all these shocks have overturned the rules of the game
and suddenly turned yesterdays organizations into antiques” (pp. 14–15).
Benner and Tushman (2015) argue that the twenty-first century is making managers challenges
ever more vexing:
The paradoxical challenges facing organizations have become more numerous and
strategic (Besharov & Smith, 2014; Smith & Lewis, 2011). Beyond the innovation
challenges of exploration and exploitation, organizations are now challenged to be local
and global (e.g., Marquis & Battilana, 2009), doing well and doing good (e.g., Battilana &
Lee, 2014; Margolis & Walsh, 2003), social and commercial (e.g., Battilana & Dorado,
2010), artistic or scientific and profitable (e.g., Glynn, 2000), high commitment and high
performance (e.g., Beer & Eisenstadt, 2009), and profitable and sustainable (e.g., Eccles,
Ioannou, & Serafeim, 2014; Henderson, Gulati, & Tushman, 2015; Jay, 2013). These
contradictions are more prevalent, persistent, and consequential. Further, these
contradictions can be sustained and managed, but not resolved (Smith, 2014).
The demands on managers wisdom, imagination and agility have never been greater, and the
impact of organizations on peoples well-being and happiness has never been more
consequential. The proliferation of complex organizations has made most human activities
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more formalized than they once were. We grow up in families and then start our own. We work
for business, government, or nonprofits. We learn in schools and universities. We worship in
churches, mosques, and synagogues. We play sports in teams, franchises, and leagues. We
join clubs and associations. Many of us will grow old and die in hospitals or nursing homes. We
build these enterprises because of what they can do for us. They offer goods, entertainment,
social services, health care, and almost everything else that we use or consume.
All too often, however, we experience a darker side of these enterprises. Organizations can
frustrate and exploit people. Too often, products are flawed, families are dysfunctional, students
fail to learn, patients get worse, and policies backfire. Work often has so little meaning that jobs
offer nothing beyond a paycheck. If we believe mission statements and public pronouncements,
almost every organization these days aims to nurture its employees and delight its customers.
But many miss the mark. Schools are blamed for “mis-educating,” universities are said to close
more minds than they open, and government is criticized for corruption, red tape, and rigidity.
The private sector has its own problems. Manufacturers recall faulty cars or inflammable
cellphones. Producers of food and pharmaceuticals make people sick with tainted products.
Software companies deliver bugs and “vaporware.” Industrial accidents dump chemicals, oil,
toxic gas, and radioactive materials into the air and water. Too often, corporate greed,
incompetence, and insensitivity create havoc for communities and individuals. The bottom line:
We seem hard-pressed to manage organizations so that their virtues exceed their vices. The
big question: Why?
Managements Track Record
Year after year, the best and brightest managers maneuver or meander their way to the apex of
enterprises great and small. Then they do really dumb things. How do bright people turn out so
dim? One theory is that theyre too smart for their own good. Feinberg and Tarrant (1995) label it
the “self-destructive intelligence syndrome.” They argue that smart people act stupid because of
personality flaws—things like pride, arrogance, and an unconscious desire to fail. Its true that
psychological flaws have been apparent in brilliant, self-destructive individuals such as Adolf
Hitler, Richard Nixon, and Bill Clinton. But on the whole, the best and brightest have no more
psychological problems than everyone else. The primary source of cluelessness is not
personality or IQ but a failure to make sense of complex situations. If we misread a situation,
well do the wrong thing. But if we dont know were seeing things inaccurately, we wont
understand why were not getting the results we want. So we insist were right even when were
off track.
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Vaughan (1995), in trying to unravel the causes of the 1986 disaster that destroyed the
Challenger space shuttle and its crew, underscored how hard it is for people to surrender their
entrenched conceptions of reality:
They puzzle over contradictory evidence, but usually succeed in pushing it aside—until
they come across a piece of evidence too fascinating to ignore, too clear to misperceive,
too painful to deny, which makes vivid still other signals they do not want to see, forcing
them to alter and surrender the world-view they have so meticulously constructed (p. 235).
So when we dont know what to do, we do more of what we know. We construct our own
psychic prisons and then lock ourselves in and throw away the key. This helps explain a number
of unsettling reports from the managerial front lines:
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Hogan, Curphy, and Hogan (1994) estimate that the skills of one half to three quarters of
American managers are inadequate for the demands of their jobs. Gallup (2015) puts the
number even higher, estimating that more than 80 percent of American managers lack the
talent they need. But most probably dont realize it: Kruger and Dunning (1999) found that
the less competent people are, the more they overestimate their performance, partly
because they dont know good performance when they see it.
About half of the high-profile senior executives that companies hire fail within two years,
according to a 2006 study (Burns and Kiley, 2007).
The annual value of corporate mergers has grown more than a hundredfold since 1980, yet
evidence suggests that 70 to 90 percent “are unsuccessful in producing any business benefit
as regards shareholder value” (KPMG, 2000; Christensen, Alton, Rising, and Waldeck,
2011). Mergers typically benefit shareholders of the acquired firm but hurt almost everyone
else—customers, employees, and, ironically, the buyers who initiated the deal (King et a ...
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