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Transcript
CHAPTER TWO MANAGERS, ENTREPRENEURS, AND
ORGANIZATIONAL CULTURE
OVERVIEW OF CHAPTER
This chapter focuses upon managers and entrepreneurs as feeling, thinking human beings. It
opens with a discussion of the similarities and differences between managers and
entrepreneurs. This is followed by a description of the enduring personal characteristics that
often exert influence upon a manager’s actions and outlook. The chapter closes with a
discussion of organizational culture and the role managers and entrepreneurs play in creating
it.
LEARNING OBJECTIVES
1. Distinguish between entrepreneurship and management.
2. Describe the various personality traits that affect how managers and entrepreneurs think,
feel, and behave.
3. Understand the personal characteristics of entrepreneurs.
4. Explain what values, attitudes, moods, and emotions are and describe their impact on
managerial action.
5. Define organizational culture and explain the role managers and entrepreneurs play in
creating it.
MANAGEMENT SNAPSHOT: PROMOTING EMOTIONAL COMPETENCIES AT
AMERICAN EXPRESS
Managers at American Express could not understand why more than 60% of clients whose
portfolios suggested that they needed life insurance were declining coverage. The company
assembled a special team to determine how to help their clients understand the merits of life
insurance. What they learned was startling. Potential customers were reluctant to purchase life
insurance because of emotional, not financial, issues.
To address this problem, management undertook an experiment in which some of the
company’s employees received emotional competency training, which taught them to better
understand and interpret their own as well as clients’ feelings. Results were so impressive that
American Express began to mandate that all new financial advisors receive eight hours of
emotional competency training.
Questions:
1. How did training in emotional intelligence help American Express improve its efficiency
and effectiveness?
By helping financial advisors to empathize with their clients and see things from the
client’s perspective, the company’s ability to meet their customers’ needs was
dramatically improved.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
2. Why might other companies, such as Motorola, be interested in emotional competency
training?
The ability to understand and effectively respond to the needs of potential and current
customers is critical in today’s business competitive environment. Improved emotional
competency can contribute significantly to this important organizational goal.
LECTURE OUTLINE
I.
The Difference Between Entrepreneurs and Managers

Managers are responsible for overseeing the use of human and other resources to
achieve organizational goals effectively and efficiently.

Entrepreneurs identify opportunities and take responsibility for mobilizing the
resources necessary to produce new and improved goods and services. Entrepreneurs
assume a great deal of risk. In spite of the risk involved, 38 percent of men and 50
percent of women in today’s workforce want to be entrepreneurs.
Management in Action: Entrepreneurship at Maden Technologies
As a soldier in the U.S. army during the Vietnam War, Omar Maden worked on command and
control communications technology for artillery and missiles. Because of his strong technical
competencies, Maden remained in the Army at the close of the war, became an Army
information technology expert, and rose up the ranks to become a major.
Upon retiring from the Army, Maden used his personal savings and a home equity loan to
launch Maden Technologies, an IT consulting firm. The Army became one of his most
important clients. After successfully completing several major projects for them, Maden
Technologies became one of the Pentagon’s largest research and development contractors.
As it has grown, Mr. Maden has been careful to maintain his company’s entrepreneurial
thrust. He is in the process of repositioning his company as a technology service provider to
the entire industry and is confident that his company will soon be able to offer enterprise
management solutions that are on par with those offered by industry leaders, thus realizing the
American Dream.
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Jones, Essentials of Contemporary Management
Chapter Two Managers, Entrepreneurs, and Organizational Culture
Entrepreneurship within an Organization

Intrapreneurs are managers who identify opportunities for product or service
improvements within the organization at which they are employed and take
responsibility for managing its development process.

When intrapreneurs become dissatisfied because their superiors will not support or
fund their new product ideas or development efforts, they sometimes leave their
organizations to become entrepreneurs.

Sometimes the entrepreneur who initially starts a business will not have the
management skills required to successfully grow the business. While some quickly
hire expert managers to help them, others do not, and the business suffers as a result.

Differences in the personality, values, attitudes, moods, and emotions help to explain
why some people are best suited for management, and others for entrepreneurship.
II.
ENDURING CHARACTERISTICS: PERSONALITY TRAITS
Personality traits are particular tendencies to feel, think, and act in certain ways. These
individual traits are used to describe the general personality of an individual. It is important to
understand a manager’s personality because it influences his or her behavior and approach to
management.
The Big Five is a group of five general traits that contribute to the composition of an
individual’s personality. These five traits are extraversion, negative affectivity,
agreeableness, conscientiousness, and openness to experience. Each should be evaluated
along a continuum.

Extraversion is the tendency to experience positive emotions and moods expressed by
affectionate, outgoing, and friendly demeanor. This personality type works well in
groups, teamwork, or situations where social skills are needed. Those low on this
factor can be highly effective if excessive social interaction is not required.

Negative Affectivity is the tendency to experience negative emotions and moods, feel
distressed, and be critical of others. Managers high on this trait may often feel angry
and dissatisfied and complain about their own and others’ lack of progress. Those who
are low on negative affectivity do not tend to experience many negative emotions and
are less pessimistic and critical of themselves and others.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture

Agreeableness is the tendency to get along well with others. Managers high on this
continuum are likeable, tend to be affectionate, and care about other people. Those
who are low may be somewhat distrustful of others, unsympathetic, uncooperative and
even at times antagonistic.

Conscientiousness is the tendency to be careful, scrupulous, and persevering.
Managers who are high on this factor are organized and self-disciplined while those
who are low may seem to lack self-direction and self-discipline.

Openness to experience is the tendency to be original, have broad interests, be open to
a wide range of stimuli, be daring, and take risks. Those high on this continuum tend
to be entrepreneurs while those low on the scale tend to be more conservative in their
planning and decisions making.
Other Personality Traits that Affect Managerial Behavior
The locus of control trait captures an individual’s beliefs concerning the amount of control
they have over what happens to and around them.

People with an internal locus of control believe that they are responsible for their own
fate and see their own actions and behaviors as being important and decisive
determinants of future outcomes.

People with an external locus of control believe that outside forces are responsible for
what happens to and around them and that their own actions don’t make much of a
difference.

To be effective, managers must have an internal locus of control.
Self-Esteem is the degree to which individuals feel good about themselves and their
capabilities.
28

High self esteem is desirable for managers because it facilities their setting and
keeping high standards for themselves and gives them the confidence they need to
succeed.

People with low self-esteem are unsure about their capabilities and question their
ability to succeed. Research suggests that people tend to choose activities and goals
that are consistent with their levels of self-esteem.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
Needs for Achievement, affiliation and power have been extensively researched by
psychologist David McClelland.

The need for achievement is the extent to which an individual has a strong desire to
perform challenging tasks well and to meet personal standards for excellence. People
with high levels of this need often set clear goals for themselves and want feedback
on their performance.

The need for affiliation is the extent to which an individual is concerned about
establishing and maintaining good interpersonal relations, being liked and getting
along with other people.

The need for power is the extent to which an individual desires to control or influence
others.

Researchers suggest that high needs for achievement and power are assets for firstline and middle managers, and a high need for power is especially important for upper
managers.

A high need for affiliation is not always desirable within managers because it may
cause them to try too hard to be liked by others, at the expense of ensuring a high
level of organizational performance.
Characteristics of Entrepreneurs

Entrepreneurs are likely to be high on the personality trait of openness to experience,
meaning that they are predisposed to be original, to be open to a wide range of stimuli,
to be daring, and to take risks.

Entrepreneurs are likely to have an internal locus of control, believing that their own
actions will determine and success or failure of a new venture.

Entrepreneurs are likely to have a high level of self-esteem, and therefore feel
competent and capable of handling most situations.

Entrepreneurs are likely to have a high need for achievement, and therefore desire to
perform challenging tasks and meet high personal standards of excellence.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
III. VALUES, ATTITUDES, AND MOODS AND EMOTIONS
Values, attitudes, moods, and emotions capture how managers experience their jobs as
individuals. Values describe what managers are trying to achieve through work and how they
think they should behave. Attitudes capture their thoughts and feelings about their specific
jobs and organizations. Moods and emotions encompass how managers actually feel when
they are managing.
Terminal and Instrumental Values

A terminal value is a personal conviction about lifelong goals or objectives. An
instrumental value is a personal conviction about desired modes of conduct or ways
of behaving.

Terminal values often lead to the formation of norms, which are informal rules of
conduct for behaviors considered to be important within an organization. Examples
might include behaving honestly or courteously.

A person’s value system identifies what a person is striving to achieve and how they
want to behave. Milton Rokeach, a leading researcher in the area of human values,
identified 18 terminal values and 18 instrumental values that, when placed in rank
order, will describe a person’s value system.

Although much of Rokeach’s research was based in the United States, it can describe
the values of people from other cultures as well.
Managing Globally: Values of the Overseas Chinese
The “Overseas Chinese” is a term used to refer to the more than 55 million Chinese citizens
working outside of China. They manage much of the trade and investment in all of East Asia
(except for Korea and Japan) and are expanding beyond Asia to Europe and the United States.
They are prominent and generally quite successful in businesses such as real estate and
investing in countries like Singapore and Malaysia.
One distinguishing characteristic of the Overseas Chinese is their values. Above all else, they
seem to value hard work, ambition, strong family ties, family security, responsibility, selfcontrol and competence. They are not risk-adverse, and use boldness and creativity as guiding
principles. Respect, admiration, and social recognition are also important to these
entrepreneurial managers. Many of their business deals are conducted through networks of
managers who have developed close relationships and connections built on trust, respect and
admiration over the decades. Such relationships are called guanxi. Similarly, xinyong, having
a good reputation and a good credit rating, is an asset that is valued by many Overseas
Chinese managers.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
Attitudes
An attitude is a collection of feelings and beliefs. A manager’s attitude affects how they
approach their job. Two of the most important attitudes in this context are job satisfaction and
organizational commitment.

Job Satisfaction is the collection of feelings and beliefs that managers have about
their current job. Managers who are high on job satisfaction generally like their jobs,
feel that they are being treated fairly, and believe that their jobs have many desirable
features or characteristics.

Managers who tend to be satisfied with their jobs are more likely to perform
organizational citizenship behaviors (OCBs). OCBs are behaviors that are not
required but contribute to organizational efficiency, effectiveness, and gaining a
competitive advantage.

Satisfied managers are also less likely to quit. A growing source of dissatisfaction for
many lower and middle level managers is the threat of unemployment and increased
workloads that results from downsizing.

Organizational commitment is the collection of feelings and beliefs that managers
have about their organization as a whole. Organizational commitment can be
especially strong when employees and managers truly believe in the organization’s
values.

Managers in other countries have different opportunities and rewards and face
different economic, political, or sociocultural forces. Therefore, differences in the
levels of job satisfaction and organizational commitment are likely, when comparing
foreign managers to those in the U.S.
Moods and Emotions
 A mood is a feeling or state of mind. Personality traits and current circumstances
often determine a person’s mood.

Emotions are more intense than moods, are more short-lived, and are usually linked to
a specific cause.

Research on how moods affect the behavior has just begun. Results are inconclusive.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
Emotional Intelligence (EI)
Emotional Intelligence is the ability to understand and manage one’s own moods and
emotions, as well as the moods and emotions of others.

Managers with high levels of EI are able to prevent their emotions from getting in the
way of making effective decisions.

EI helps managers perform the interpersonal roles of figurehead, leader, and liaison.
IV. RGANIZATIONAL CULTURE
Organizational culture is the set of shared values, norms, and standards for behavior and
expectations that influences the ways in which individuals, groups, and teams interact with
each other and cooperate to achieve organization goals. One can think of an organization’s
culture as its personality.
How Managers Influence Organizational Culture
The personal characteristics of entrepreneurs play a significant role in the creation of their
company’s organizational culture in a variety of ways.

Management researcher Benjamin Schneider developed a model called the
Attraction-Socialization-Attrition (ASA), which posits that entrepreneurs tend to
hire employees whose personalities are similar to their own. Therefore, many
employees in the organization tend to have similar personalities, resulting in a
dominant personality profile that shapes the organization’s culture.
1. This tendency can also occur in large organizations.
2. This tendency can impair organizational effectiveness, if not controlled.

In addition to personality, a manager’s values, attitudes, moods, emotions, and
emotional intelligence shape organizational culture.
1. Research suggests that attitudes such as job satisfaction and organizational
commitment can be impacted by the influence of others.
2. Research also suggests that spending time with people who are excited and
enthusiastic can increase one’s own levels of excitement and enthusiasm.
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MANAGEMENT INSIGHT: How to Create a High-Performing Organizational Culture
Herb Kelleher, the flamboyant founder and current board chairman of Southwest Airlines
likes to have fun while providing superior customer service to his company’s customers. Its
founder’s personality is reflected in Southwest’s organizational culture, which also values fun
and high quality customer service, as well as commitment to employees, empowerment, high
performance, and an entrepreneurial spirit.
Southwest is one of the most profitable companies in the airline industry and ranked fourth in
Fortune’s Magazine’s “100 Best Places to Work For.” The company’s ability to develop a
unique, high-performing culture that distinguishes it from its competitors has been a major
contributor to its success. Because a special effort is made to attract and select only those
applicants who will fit into its culture, it would be hard to imagine the company hiring any
one who is overly critical or grouchy. With a committed workforce in place, Kelleher and his
managers then developed a variety of policies and procedures that consistently reinforce that
company’s norms and values to ensure that organizational performance remains strong.
V.
SUMMARY AND REVIEW
Lecture Enhancer 2.1: BIRTH ORDER AND PERSONALITY
Birth-order guru Kevin Leman, Ph.D. says he can explain how a simple understanding of birth
order enhances the chance of success in business. In his book, “The Birth Order Book,”
Leman profiles three birth-order positions.
The firstborn tends to be a perfectionist, conscientious, list maker who doesn’t like surprises.
The only child has similar, yet often more intense personality traits.
The middle child is a master negotiator who never had his parents to himself, and endured
hand-me-downs. The good news is he can compromise, share and negotiate.
Leman describes the baby of the family as manipulative, social, outgoing, and a natural
salesperson. She is the child who got her siblings in trouble while she was cute, helpless and
got away with murder.
A fourth birth-order position, identified by Michael Maniacci, a clinical psychologist and
member of the faculty at the Adler School of Professional Psychology in Chicago, is the
second born. The second born tends to be more rebellious, non-conforming and independent
than the middle child.
After reading these descriptions, most either buy into the birth-order concept as a perfect
description of their family or discount it. Either way, Leman says, there are other birth-order
rules that impact children’s development.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
Sex of children is an important variable in the birth-order equation. “If there are three
daughters and a last-born son, the son may possess the characteristics of the firstborn, rather
than the baby,” Leman says.
Maniacci says: “In my practice, I’ve found the greater the sex differentiation between the
parents, the less children of the opposite sex compete with each other. That impacts birthorder roles.
“In a family with a firstborn boy and a second born girl, if both parents work, both wear pants,
and equally share housework tasks, the girl is more likely to be a rebellious second born.
There is not much distinction between being a girl and a boy. Conversely, if Dad has short
hair and Mom has long, and Mom stays at home and Dad works, the boy holds the role of the
oldest born male and the girl the oldest born female.”
If there is a five-year age gap between the children, you can draw a line and start another
family with a whole new set of firstborns and middles, Maniacci says. Physical differences
play a role too. If the oldest child is physically or psychologically challenged, the second child
usually takes on the role of the firstborn.
Other experts caution that understanding and using birth order is anything but simple, and
many variables mold personality. Experts generally agree interpreting birth order can be
complicated and only presents part of the picture.
But Leman says, “As a psychologist, I have not found a more practical tool for understanding
human dynamics than birth order.”
Lecture Enhancer 2.2: THE BIG THRILL PERSONALITY
Another facet of personality is one’s tolerance for risk taking. Some individuals have a kind
of psychological urge to reach beyond the status quo and seek out novelty, change, and
excitement. Psychologist Frank Farley, of the University of Wisconsin, has spent twenty years
examining what he calls the Type T (thrill-seeking) personality. According to Farley’s theory,
Big T types are high-profile individuals who seek excitement and stimulation wherever they
can find it or create it. For some the thrills are mostly physical. For others they’re mental.
The degree of risk that individuals are willing to assume spans a broad continuum. Big T
personalities, those who continually live on the edge, are at one end of the scale. Little t’s,
who cling to certainty and predictability, are at the other. Most people fall somewhere in the
middle. But Farley believes it’s the Big T segment, a group that makes up an estimated 10 to
30 percent of the American population, that holds the key to America’s future. “Type T’s are
the people who are likely to have enormous impact on society,” he says. “They are the great
experimenters in life; they break the rules.”
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Jones, Essentials of Contemporary Management
Chapter Two Managers, Entrepreneurs, and Organizational Culture
Whether male or female, risk-taking individuals tend to be what Farley calls “transmutative
thinkers,” adept at shifting from one cognitive process to another, and from the abstract to the
concrete and vice versa. Thrill seekers are happiest in jobs that provide change, excitement,
and an ample outlet for their creativity. They are often drawn to careers in advertising,
journalism, or in the brokerage business, where novelty and uncertainty are a given.
Whether individuals seek risks or avoid them affects not only their own job performance but
also boss-employee relationships and co-worker production. An organization with too many
risk takers can spell trouble. So can one top-heavy with cautious, security-minded individuals.
A synergistic mix is best. If it’s the thrill-seeking visionaries who drive a company with their
ideas, it’s their more pragmatic peers who help implement those concepts. Finally, says
Farley, “people who are the most successful realize that if they’re going to take risks, they’re
going to fail once in a while.”
MANAGEMENT IN ACTION
Notes for Topics for Discussion and Action
1. Discuss why managers who have different types of personalities can be equally effective
and successful.
There is no single “right” or “wrong” personality trait for being an effective manager;
rather, effectiveness is determined by a complex interaction between characteristics of
managers (including personality traits) and the nature of the job and organization.
Furthermore, personality traits that contribute to the managerial effectiveness in one
situation may actually hinder the effectiveness in another situation.
2. Interview a manager in a local organization. Ask the manager to describe situations in
which he or she is especially likely to act in accordance with his or her values. Ask the
manager to describe situations in which he or she is less likely to act in accordance with
his or her values.
(Note to Instructor: Student answers will vary based on the manager’s value system and
experiences.)
The text defines values as what managers are trying to achieve through work and how
they think they should behave. Posing this question to potential strangers can be tricky,
since people are sometimes quite guarded about their values and are not eager to discuss
them with others. You may want to suggest that students interview a manager that they
already know.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
3. Can managers be too satisfied with their job? Can they be too committed to their
organizations? Why or why not?
The text defines job satisfaction as the feelings and beliefs people have about their current
jobs. Organizational commitment is defined as the collection of feelings and beliefs
people have about their organizations as a whole. These attitudes are especially strong
when managers truly believe in their organization’s values. The threat of increased
workloads or unemployment from downsizing may impede high levels of commitment
among employees.
4. Assume that you are a manager of a restaurant. Describe what it is like to work for you
when you are in a negative mood.
(Note to Instructors: Student answers will vary based on their personalities.) The text
identifies characteristics of a negative mood as feelings of distress, fearful, scornful,
hostile, jittery or nervous. Student responses should focus around the way they behave
when feeling these emotions, and how their behavior would impact others.
5. Why might managers be disadvantaged by low levels of emotional intelligence?
Social skills are increasingly important in organizations today. People frequently work in
teams. High levels of emotional intelligence enable managers to interact more effectively
subordinates and superiors within the organization, as well as with external customers.
1.When are ethics and ethical standards especially important in organizations?
Ethics and ethical standards are important at all times. However, they become especially
important when managers are making decisions that will impact organizational
stakeholders, such as customers, employees, investors, suppliers, or community members.
7. Why might managers do things that conflict with their own ethical values?
Unfortunately, greed is sometimes a factor. Enormous pressure to meet unrealistic sales or
profit goals or feeling obligated to conform to the behavior of others may also be
contributing factors.
8. How can managers ensure that they create ethical organizational cultures?
First and foremost, managers can create an ethical organizational culture by serving as
role models, since the behavior of leadership is a strong determinant of organizational
culture. Management can also create a code of ethics and make sure that it is taken
seriously.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
Notes for Building Management Skills
Diagnosing Culture
1. What values and norms are emphasized in this culture?
Although student answers will vary, they should reflect the terminal and instrumental
values identified by Rokeach earlier in this chapter.
2. Who seems to have played an important role in creating the culture?
Although student answers will vary, most should cite the organization’s founders and
leaders. Sometimes organizational members can also influence culture.
3. How does the culture address the needs of organizational members?
Norms derived from the organization’s culture provide members with guidelines to
determine what types of behaviors are acceptable and unacceptable. It may also help
organizational members to refine or affirm their personal value system.
Notes for Small Group Breakout Exercise
1. Develop a list of options and potential courses of action to address the heightened
competition and decline in profitability that your company has been experiencing.
(Note to instructors: student answers will vary based on their experiences.)
Possible options include:
 Employ a consultant to help management determine additional ways to cut costs.
 Implement a hiring freeze and reduce workforce through attrition.
 Build employee motivation to increase performance levels by providing incentives
linked to performance, issuing "star-performer" awards, and holding parties or
arranging activities for employees.
 Increase marketing and advertising efforts to improve sales.
 Lay-off employees.
2. Choose your preferred course of action and justify why you will take this route.
(Note to instructors: Student answers will vary.) The option of layoffs should be chosen
only if the slowdown of work is so severe that the company cannot keep its workers
occupied or if the company is facing a financial crisis, such as bankruptcy. In this case,
the only way to save the company and protect the majority of stakeholders is by
downsizing.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
3. Describe how you will communicate your decision to employees.
Since rumors are rampant, it is important to communicate with all employees in a clear
and timely manner. Top management needs to increase the employees' sense of security
and confidence concerning its commitment to resolving the situation. Because the stakes
are high and people's jobs are on the line, any decision should be communicated in a faceto-face meeting.
If layoffs are being announced, one-on-one meetings should be held with terminated
employees to assure them that decisions were based on objective criteria. Specific
information regarding severance pay and related issues must also be clearly
communicated.
Notes for You’re the Management Consultant
This is a management situation in which emotional intelligence (EI) will play an important
role. Highly creative people sometimes view and interpret situations and occurrences very
differently than more pragmatic ‘business types.’ This may an example of two very different
types of people who have not learned to effectively communicate with each other.
First, you might conduct a group discussion with the creative staff in which they are allowed
to voice their concerns. Then, you might meet with management to determine if they are
aware of the creative staff’s concerns and if they are clearly understood. Once this
communication blockage has been eroded, management can begin addressing the creative
staff’s issues by making appropriate additions or changes to current policies and procedures.
Also, both groups should participate in ongoing EI training to enhance their ability to
effectively communicate with each other.
MANAGING ETHICALLY
1. It is important that companies make every effort to hire employees whose values,
personality, and interests fit with their organizational culture. However, reliance upon
personality and inventory tests is an ineffective means of evaluating such factors.
Because of their measurement error and validity problems, these tests could mistakenly
screen out those candidates who are best suited for the job. Managers in charge of hiring
may think these tests are a quick and easy substitute for a thorough interviewing process,
but will regret their decision later.
2. When candidates apply for a job, they generally assume that they will be evaluated and
compared to other applicants in a fair, nonbiased manner. The use of such tests violates
that trust, thus representing an ethical breach.
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CASE FOR DISCUSSION
Case Synopsis: PROMOTING POSITIVE ATTITUDES AND ETHICAL VALUES AT
MEDTRONIC
Medtronic is an organization where employees are satisfied with their jobs, committed to the
organization, and embrace ethical values. The company manufactures medical devices
designed to lessen pain, improve health, and extend life. Because of Medtronic’s strong
culture, employees perform at a high level, are satisfied with their jobs, and are committed to
their organization.
Bill George, the recently retired Chairman and CEO, and other top managers at Medtronic go
to great lengths to show their commitment to the highest ethical values and standards for
patient care. Recruiting top scientists who possess the drive to excel and presenting them with
the opportunity to invent new products that will improve the quality of life for others ensures
both job satisfaction and organizational commitment. Medtronic managers also seek to
develop positive attitudes and moods by addressing employees’ needs to reduce stress and
balance work and family demands.
1. Why are many of Medtronic’s employees satisfied with their jobs and committed to
Medtronic?
Medtronic employees are satisfied and committed because they enjoy working in an
environment that reinforces and sustains the positive values, attitudes and ethical
standards that they already possessed. Medtronic employees find deep meaning in their
work of saving and extending the lives of others through medical devices.
2. What role does management play in promoting satisfaction at Medtronic?
Managers at Medtronic have developed an organizational culture that allows employees to
take great pride in their work and its contribution to the well being of society. Initiatives
such as inviting users of Medtronic devices to visit the company to share their stories of
improved health with employees and bestowing medallions engraved with some of the
company’s core values upon new employees consistently reinforce the norms and values
that contribute to high levels of job satisfaction and commitment.
3. If Medtronic was in another industry completely unrelated to healthcare, do you think the
company would continue to have the same organizational culture? Why or why not?
Because organizational culture is primarily determined by the values, attitudes, and
behaviors of its leaders, it would be possible to maintain this same culture in another
industry.
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Chapter Two Managers, Entrepreneurs, and Organizational Culture
4. What kinds of employees might not like working at Medtronic? Why?
Persons who lack drive or an interest in helping others may not fit comfortably into
Medtronic’s culture due to incompatibility of values and attitudes.
BUSINESS WEEK CASE IN THE NEWS
Case Synopsis: FIDELITY: HERE COMES ABBY
This case introduces us to Abby Johnson, a third generation descendent of the family that runs
Fidelity Investment’s $1.4 trillion financial empire. Abby currently holds the number three
slot, behind her father and the COO. She is responsible for overseeing the company’s 280
mutual funds, and at age 41, is the most powerful woman in U.S. finance. Most Fidelity
watchers expect her to succeed her father, who is 72, when he retires.
Abby puts in an average 10-hour workday and spends most of her free time with her young
daughters. She is described as one of the world’s most self-effacing billionaires who was
taught to avoid the limelight and let the results speak for themselves. Only recently did she
trade in her old Dodge for a luxury automobile. When asked about Abby’s work ethic, “she
put her nose to the grindstone and got into the mud with the rest of us,” according to a former
colleague. Another colleague says that Abby shares her father’s “intense, paranoid drive to
make sure the standards of excellence at Fidelity are unattainable by any other fund family.”
In personal dealings, she is described as quick with a smile, exceedingly polite, articulate, and
reserved. She is the opposite of her father, who can be vindictive, and avoids micromanaging
her employees.
1. How would you characterize Abby Johnson’s personality? How does her personality
influence her behavior at Fidelity?
She appears to be high on agreeableness and conscientiousness and low on negative
affectivity. She has an internal locus of control, healthy self esteem, and a high need for
achievement. These personality traits would explain her pleasant manner, commitment of
excellence, strong work ethic, and willingness to serve as her father’s successor. Her low
need for power and affiliation explain Abby’s reserved, self-effacing demeanor and lack
of vindictiveness.
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2. How would you characterize Abby Johnson’s values, attitudes, and moods? How do they
influence the way in which she manages at Fidelity?
It is evident that Abby holds many of the values on Rokeach’s list of instrumental values,
including ambitious, capable, polite, and self-controlled. They explain her intense drive
and why she is gentle, never barks orders, and prefers to listen. She also appears to enjoy a
high level of job satisfaction and is strongly committed to the organization, which
accounts for her willingness to perform organizational citizenship behaviors (OCBs), such
as working long hours.
Jones, Contemporary Management, Third Edition
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