1. Mgmt 570 Course Overview Agenda Part 1: Course Overview Syllabus Introductions Part 2: Management Epistemologies Part 3: Research Methods

2. WHY OFFER A COURSE ON MANAGING EMPLOYEE ATTITUDES & BEHAVIORS? Because… (1) We now have evidence that how people (human resources) are managed makes a difference in “bottom line” outcomes (2) Managers need to respond to new trends if they want to influence employee attitudes and behaviors effectively

3. A competitive, strategic, and bottom line difference in firm performance. We will read articles to support how human resource activities create value Sears: First to show how human resources create value by showing interconnections among investors, employees and customers. (1) People make a difference in “bottom line” outcomes People make a difference in “bottom line” outcomes

4. Supporting employee ideas & innovation helped make Sears a compelling place to work. Satisfied employees assisted in making Sears a fun (compelling) place to shop. And more shopping raised profits, making Sears a compelling place to invest. A 5% increase in employee attitudes led to 1.3% increase in customer satisfaction which in turn led to 0.5% increase in revenue growth. This systems perspective represents a change in thinking for those interested in managing human resources for competitive advantage People make a difference in “bottom line” outcomes

5. New labor market conditions: Boomers, once 40% of the labor force, are slowly exiting! · Future belongs to Millennials & they want different things Multiple jobs are now the norm. Turnover averages ~ 15%. Unscheduled absenteeism is rising. Boomer-aged managers & contemporary employees are not in sync regarding how pay, health care, retirement plans, and work-life balance programs affect retention. Managers need to respond to new trends

6. WHY A COURSE ON EMPLOYEE ATTITUDES AND BEHAVIORS? Review syllabus Introductions

7. Part 2: Management Epistemologies How Do Mangers Determine the Best Way to Manage People? Baseline Quiz Fads Review Epistemologies

8. How Do Managers Determine the “Best Way” to Manage? Course favors science but realizes there are other ways of determining truth Unawareness of evidence leads to imitation & adoption of fads What are the “hot” practices or emerging trends popular among managers today? Look at some fads over time

9. Management Innovation or “Fad”???? The 1950s & 60sThe 1970s The 1980s Theory Y Zero-based Budgeting 1-Minute Manager MBO Strategic Planning Theory Z T (sensitivity) Groups Portfolio Mgmt JIT, TQM The 1990sThe 2000s 2010 & Beyond Downsizing Sustainability Relationship Marketing Reengineering Emotional Intelligence Supply Chain Mgmt Employee Empowerment JIT, TQM

10. HOW DO MANAGERS DETERMINE THE BEST WAY TO MANAGE PEOPLE? My goal is to encourage greater reliance on scientific advice on mgmt problems. Like it or not, the evidence-based, cutting-edge ideas are in journals. Also, to get you ahead of the curve by exposing you to original ideas and encouraging you to be a more discerning, critical consumer of advice to managers. Avoid “fads”. It is NOT my goal to turn you into a scientific researcher but instead to choose to rely on evidence- based management.

11. How Do Managers Determine the “Best” to Manage? Course promotes science but realizes effective mgmt is both an art & science Managers must act and they rely on multiple ways of determining truth (epistemologies) that may reach different conclusions. Sick leave policy example

12. EPISTEMOLOGIES USED BY MANAGERS 1. Experience 2. Intuition 3. Common Sense or logic 4.Expert testimony/Higher authority/Consultant 5. History or Tradition 6.Science or Evidence-based Management (EBM)

13. Why are Epistemologies Important to Mangers? Skip science for just a second Know what epistemologies are appealing to you and that you rely on so you can appreciate their strengths and limitations Appreciate that your preferred epistemology may not be valued by others A successful change agent will be to “shuttle” across epistemologies (i.e., meet people on their “playing fields”), and be convincing by using more than one

14. Why Science/EBM is Preferred Definition: EBM means making decisions about the management of employees and organizations through the explicit use of four sources of information: The best available scientific evidence Organizational facts, metrics, and characteristics Stakeholders’ values and concerns Practitioner expertise and judgment

15. CHARACTERISTICS OF SCIENCE/EVIDENCE- BASED MANAGEMENT 1. Empirical 2. Rational 3. General - predict - explain 4. Cumulative: Seek to achieve a systematic body of knowledge - tentative - replication - self-correcting

16. Tools for Reading Empirical Articles The Research Process Terms Linkages Operationalization of ideas Data collection Analyzing data to test hypotheses Statistics Theories/Models Research Designs Sampling

17. THE RESEARCH PROCESS Org. Event Desire to Theoretical Operation- Phenomenon Explain Framework alization Problem (high absenteeism) (low perf.) (curious, (consists of fame, $, concepts & solve a propositions) problem) Derive Collect Analyze data Report Hypotheses the Data to test hypo- whether (statements of (where theses (where the data relationships sample & statistics support among variables) research enters) the hyp. design enter) or not

18. RESEARCH PROCESS TERMS Concept: A mental image; abstract but rooted in sense experience Proposition: A statement which links concepts together; it describes how concepts are related Linkages: Words describing the relationship between two concepts Theory: A set of one or more propositions. A simple theory describes how one concept is related (predicts) to another. A more complex (but realistic) theory entails more than one proposition

19. LINKAGES I. Linear Relationships (Straight line relationships) A. There is a direct or positive relationship between X and Y: Hi Job Sat (Y) Lo Lo Hi Job Autonomy (X) B. An inverse or negative relationship between X and Y: Hi Job Sat (Y) Lo Lo Hi Job Autonomy (X)

20. LINKAGES II. Non-Linear Relationships A. Curvilinear, exponential: Hi Job Satisfaction (Y) Lo Lo Hi Job Autonomy (X) B. Curvilinear, logarithmic: Hi Job Performance (Y) Lo Lo Hi Goal Clarity (X)

21. RESEARCH PROCESS TERMS Concept: A mental image; abstract but rooted in sense experience Proposition: A statement which links concepts together; it describes how concepts are related Linkages: Words describing the relationship between two concepts Theory: A set of one or more propositions. A simple theory describes how one concept is related (predicts) to another. A more complex (but realistic) theory entails more than one proposition

22. THE RESEARCH PROCESS Org. Event Desire to Theoretical Operation- Phenomenon Explain Framework alization Problem (high absenteeism) (low perf.) (curious, (consists of fame, $, concepts & solve a propositions) problem) Derive Collect Analyze data Report Hypotheses the Data to test hypo- whether (statements of (where theses (where the data relationships sample & statistics support among variables) research enters) the hyp. design enter) or not

23. OPERATIONALIZATION, DERIVING HYPOTHESES, AND COLLECTING THE DATA Abstract/Conceptual Level [Concepts & props] x y Job Satisfaction Job Performance operationalizaton score on a job satisfaction index sales performance Empirical Level actual score $ profit/month [Variables & hypotheses]

24. THE RESEARCH PROCESS Org. Event Desire to Theoretical Operation- Phenomenon Explain Framework alization Problem (high absenteeism) (low perf.) (curious, (consists of fame, $, concepts & solve a propositions) problem) Derive Collect Analyze data Report Hypotheses the Data to test hypo- whether (statements of (where theses (where the data relationships sample & statistics support among variables) research enters) the hyp. design enter) or not

25. DATA COLLECTION TECHNIQUES Observation (Direct, video, participation) Questionnaires, surveys Interviews (face-to-face, telephone) Company records (archival)

26. THE RESEARCH PROCESS Org. Event Desire to Theoretical Operation- Phenomenon Explain Framework alization Problem (high absenteeism) (low perf.) (curious, (consists of fame, $, concepts & solve a propositions) problem) Derive Collect Analyze data Report Hypotheses the Data to test hypo- whether (statements of (where theses (where the data relationships sample & statistics support among variables) research enters) the hyp. design enter) or not

27. ANALYZING THE DATA TO TEST HYPOTHESES I. Visually Subject Questionnaire Co. Records (Employee) Mean JS score Profits/month 1 12 $3500 2 8 2100 3 10 2500 - -- ----- N 3 1600 II. Via Scatterplot... Hi.... N = 10 Job Performance.. (Y). Lo Lo Hi Job Satisfaction (X) III. Statistically

28. STATISTICS A way to summarize relationships among variables For 2 variables in a linear relationship: Pearson r -1 0 +1 (negative) (no relationship) (positive) r =.30 Weak to moderate positive relationship r 2 =.09 (or 9% of the variance explained) For more than 1 independent variable related to a dependent variable: Use a multiple correlation coefficient R

29. THEORIES/MODELS A theory is nothing more than a set of propositions, outlining how a set of factors is thought to “effect” a dependent variable. E.g. A theory of absenteeism: Job Satisfaction Work Group Size Absenteeism Family size Use R summary statistic (Range is from 0 to 1; no direction can be specified)

30. RESEARCH DESIGNS Case study: good for exploratory work, no cause and effect, all “after the fact”, not generalizable Field study or field survey: findings generalizable and realistic but weak on control Lab experiment: strong on control, good for isolating cause and effect relationships, weak on generalizability Potential ethical issues. Field experiment: moderate on control and generalizability, difficult to get companies to participate in. Potential ethical issues.

31. SAMPLING 1. There are many methods of sampling (random, stratified) but first specify the population or universe. What do you want to study? To what do you wish to be able to generalize to? 2. Technically, every unit in the population you wish to generalize to (i.e., infer results to) must have an equal opportunity to appear in the sample. 3. Practically speaking, compromises are always made: POP: Employees of Org. X Sample: Randomly pick 20% to interview POP: American auto workers Sample: Ford, GM, Chrysler employees or Random Sample of just GM employees

32. The employer—employee “deal” is changing, …and many employers still don’t get it. Frederick Taylor introduces “scientific management,” which holds that jobs should be defined in detail to remove individual discretion. Some still subscribe to “command & control” ideas

33. Organizations may fail if they do not realize employee- employer relations are changing dramatically Employees are willing to change jobs more frequently and expect to negotiate their jobs & working conditions Only 2 articles before 2000 2. Managers need to respond to new trends

34. 85 of Fortune’s 100 Best Companies to work for allow telecommuting or work from home. Cisco ● Intel Accenture Pricewaterhouse Coopers They allow employees to work wherever they want, whenever they want, as long as they get their jobs done. …Others do “get it”. Cisco Accenture