Objective [1]

Identify at least four of Pfeffer’s people-centered practices, and define the term management. Pfeffer’s seven peoplecentered practices are job security, careful hiring, power to the people, generous pay for performance, lots of training, less emphasis on status, and trust building. Management is the process of working with and through others to achieve organizational objectives in an efficient and ethical manner.

Objective [2]

Contrast McGregor’s Theory X and Theory Y assumptions about employees. Theory X employees, according to traditional thinking, dislike work, require close supervision, and are primarily interested in security. According to the modern Theory Y view, employees are capable of selfdirection, of seeking responsibility, and of being creative.

Objective [3]

Explain the managerial significance of Deming’s 85–15 rule, and identify the four principles of total quality management (TQM). Deming claimed that about 85% of organizational failures are due to system breakdowns involving factors such as management, machinery, or work rules. He believed the workers themselves are responsible for failures only about 15% of the time. Consequently, Deming criticized the standard practice of blaming and punishing individuals for what are typically system failures beyond their immediate control. The four principles of TQM are (a) do it right the first time to eliminate costly rework; (b) listen to and learn from customers and employees; (c) make continuous improvement an everyday matter; and (d) build teamwork, trust, and mutual respect.

Objective [4]

Contrast human and social capital and explain why we need to build both. The first involves individual characteristics, the second involves social relationships. Human capital is the productive potential of an individual’s knowledge and actions. Dimensions include such things as intelligence, visions, skills, self-esteem, creativity, motivation, ethics, and emotional maturity. Social capital is productive potential resulting from strong relationships, goodwill, trust, and cooperative effort. Dimensions include such things as shared visions and goals, trust, mutual respect, friendships, empowerment, teamwork, win–win negotiations, and volunteering. Social capital is necessary to tap individual human capital for the good of the organization through knowledge sharing and networking.

Objective [5]

Explain the impact of the positive psychology movement on the field of OB. Reversing psychology’s long-standing preoccupation with what is wrong with people, positive psychology instead focuses on identifying and building human strengths and potential. Accordingly, Luthans recommends positive organizational behavior (POB) and identifies its basic elements with the CHOSE model. This acronym stands for Confidence/selfefficacy, Hope, Optimism, Subjective well-being, and Emotional intelligence.

Objective [6]

Define the term E-business, and specify five ways the Internet is affecting the management of people at work. E-business involves using the Internet to more effectively and efficiently manage every aspect of a business. The Internet is reshaping the management of people in the following areas: E-management (networking), E-leadership, E-communication (E-mail and telecommuting), goal setting and feedback, organizational structure (virtual teams and organizations), job design (desire for more challenge), decision making (greater speed and employee empowerment), knowledge management (E-learning), conflict and stress triggered by increased speed, rapid change and inevitable conflict and resistance, and ethical problems such as overwork and privacy issues.