Case (Ten)

The Patterson Operation p. 442 (464)

Things to Submit:
- PPT on Video by Email (before class on May 7)
- 15 mins
- APA Citation (in-text & oral)
- Hard Copy of Paper (A4) *submit before class on May 7)
On the report:
- Case Body
- 3 original Alternative Courses of Action and selects a recommendation that answers the
problem statement and is a plausible real-life application of theory

Part Seven
Emerging Aspects of Organizational Behavior
 Chapter Sixteen
Organizational Behavior Across Cultures

Chapter Objectives
TO UNDERSTAND
● How Social, Legal and Ethical, Political, and Economic Conditions Vary in Different
Cultures
● The Operation of Ethnocentrism and Cultural Shock
● Ways to Overcome Barriers to Cultural Adaptation
● Cultural Contingencies in Establishing High Productivity
● Theory Z as an Example of Adapting Management Practices to Fit a Host Culture

Intro

The shape of international trade has changed dramatically in recent years, with the emergence
of the European Community, revolutionary changes in the former Soviet Union and Eastern
Europe, and strong markets developing in China, India, Japan, Korea, and many emerging
nations. As a result, many organizations now do business in more than one country, and these
multinational organizations add powerful new dimensions to organizational behavior. Expansion
beyond national boundaries is much more than a step across a geographical line, however. It is
also a gigantic and sometimes frightening step into different social, legal, political, and economic
environments. Communication lines are lengthened, and control often becomes more difficult.
Today’s managers must acquire both language and intercultural skills in dealing with
people—customers, suppliers, competitors, and colleagues—from other countries.

Conditions Affecting Multinational Operations

Social Conditions

In many countries, the overriding social condition is poorly developed human

resources. Major shortages of managerial personnel, scientists, and technicians limit the
ability to employ local labor productively. Needed skills must be imported temporarily
from other countries, while vast training programs begin to prepare local workers.

As this example shows, the lending of skilled people to a nation for training their
local replacements may provide a more lasting benefit to its development than the
lending of capital. There is a ripple effect of self-development, much as a pebble thrown
into a pond creates an impact far beyond the spot where it landed.
 A significant social condition in many countries is that the local culture is not
familiar with advanced technology or complex organizations. Western nations over a
period of two centuries have adapted their culture to an industrial and organizational way
of life, but this is not so in many other nations. The background of their employees is still
largely agrarian, suggesting that they are not familiar with high-technology products and
the close margin of error that they tolerate.

Another social factor on which countries are often compared is the work ethic of
their employees (you may wish to review the earlier discussion in Chapter 4). When
Japanese and American work hours are compared, for example, a simple conclusion
emerges. Japanese employees often work several hundred more hours per year than
their U.S. counterparts. This greater number of work hours, unfortunately, is usually
attributed to the higher work ethic of Japanese workers, or to the laziness of the
Americans.

Legal and Ethical Conditions

A major issue for many firms revolves around the treatment of women and other
minorities. Although Title VII of the Civil Rights Act of 1964 prohibits workplace
discrimination in employment based on gender and other factors, it was not until 1991
that additional federal legislation extended those rights to U.S. citizens employed in a
foreign country by an American-owned company. Because global experience is
increasingly becoming a prerequisite to promotion to senior management positions (see
the second chapter-opening quote), many women are interested in overseas positions
 offering visibility, challenge, and the opportunity for personal growth. Although the path is
not easy, employers can still resolve such issues by establishing clear local policies,
clarifying the legal status of local standard practices, using local consultants to identify
potential problems, and carefully providing “reality training” to alert potential transferees
to the cultural problems they may encounter.

Political Conditions

Political conditions that have a significant effect on organizational behavior

include instability of the government, nationalistic drives, and subordination of employers
and labor to an authoritarian state. Instability spills over onto organizations that wish to
establish or expand operations in the host country, making them cautious about further
investments. This organizational instability leaves workers insecure and causes them to
be passive and low in initiative. They may bring to the job an attitude of “What will be, will
be; so why try to do anything about it?”

Economic Conditions

The most significant economic conditions in less developed nations are low per
capita income, rapid inflation, and unequal distribution of wealth. In terms of income,
many nations of the world exist in genuine poverty compared with the United States or
Canada.

Individual Conditions

Individualism/Collectivism

Cultures that emphasize individualism tend to accent individual rights and

freedoms (“Look out for number 1!”), have very loosely knit social networks, and place
considerable attention on self-respect. Strong emphasis is placed on the person’s own
career and personal rewards. Collectivism heavily accents the group and values
harmony among members. Individual feelings are subordinated to the group’s overall
good, and employees are more likely to ask, “What is best for the organization?”
Face-saving (maintaining one’s self-image in front of others) is highly important in
collectivistic cultures.

Power Distance

Power distance refers to the belief that strong and legitimate decision-making
rights separate managers and employees; this custom is frequently observed in Asian
and South American countries.

Uncertainty Avoidance
 Employees in some cultures value clarity and feel very comfortable receiving
specific directions from their supervisors. These employees have a high level of
uncertainty avoidance and prefer to avoid ambiguity at work.

Masculinity/Femininity

Masculine societies define gender roles in more traditional and stereotypical

ways, whereas feminine societies have broader viewpoints on the great variety of roles
that both males and females can play in the workplace and at home.

Time Orientation

Some cultures accent values such as the necessity of preparing for the future,
the value of thrift and savings, and the merits of persistence. Members of these cultures,
exemplified by Hong Kong, China, and Japan, have a long-term orientation.

An Intercultural Comparison

Managers in all countries, however, need to become more aware of their own
cultural characteristics, to search for the uniqueness in the cultures of other countries,
and to learn how to use the local culture to their advantage.

Managing an International Workforce

Multiculturalism occurs when the employees in two or more cultures interact with each
other on a regular basis. In some instances these new employees are parent-country nationals
from the nation in which the home office is located, or they may be third-country nationals from
some other nation. In either case they are called expatriates, since they are sent from another
nation. Their role is to provide a fusion of cultures in which both parties adjust to the new
situation of seeking greater productivity for the benefit of both the organization and the citizens
of the country in which the organization operates.

Barriers to Cultural Adaptation

An expatriate manager may find several obstacles to a smooth adaptation to a

new culture. An early requirement for overcoming such obstacles is to acquire cultural
awareness of the multiple ways in which cultures differ (language, religion, food,
personal space, and social behaviors).

High-context cultures, such as China, Korea, and Japan, tend to emphasize

personal relations, place high value on trust, focus on nonverbal cues, and accent the
need to attend to social needs before business matters. Other cultures are classified as
low context, meaning that people from those countries tend to interpret cues more
literally. Low-context cultures, such as Germany, the United States, and Scandinavian
countries, tend to rely on written rules and legal documents, conduct business first, and
value expertise and performance.

Parochialism. The dominant feature of all international operations is that they

are conducted in a social system different from the one in which the organization is
based. This new social system affects the responses of all persons involved. For
example, many people are predisposed to parochialism, meaning that they see the
situation around them from their own perspective. They may fail to recognize key
differences between their own and others’ cultures. Even if they do, they tend to
conclude that the impact of those differences is insignificant. In effect, they are assuming
that the two cultures are more similar than they actually are.

Ethnocentrism. Another potential barrier to easy adaptation to another culture

occurs when people are predisposed to believe that their homeland conditions are the
best. This predisposition is known as the self-reference criterion or ethnocentrism.
Though this way of perceiving conditions is very natural, it interferes with understanding
human behavior in other cultures and obtaining productivity from local employees. In
order to integrate the imported and local social systems, expatriate employees minimally
need to develop cultural empathy. This is the awareness of differences across cultures,
an understanding of the ways in which those differences can affect business
relationships, and an appreciation of the contributions each culture makes to overall
success. Cultural empathy, when demonstrated consistently, will result in geocentric
organizations which largely ignore a person’s nationality while accenting employee ability
in selection, assignment, and promotional decisions [10]. Geocentric organizations
seek to integrate the interests of the various cultures involved. The attempt to build a
sense of community is consistent with a supportive approach to human behavior in its
productive use of all employees.
 Cultural Distance. Predicting the amount of adaptation that may be required
when an expatriate manager moves to another country requires an understanding of the
cultural distance between the two countries. Cultural distance is the amount of difference
between any two social systems and may range from minimal to substantial.

Cultural Shock. Companies often assign employees to new job assignments in

different areas to provide them with invaluable breadth of experience. The employees
who move to new international job locations often experience various degrees of cultural
shock, which is a feeling of confusion, insecurity, and anxiety caused by a strange new
environment [13].

Overcoming Barriers to Cultural Adaptation

Careful Selection. Employees who are low in ethnocentrism and other possibly
troublesome characteristics can be chosen. The desire to experience another culture
and live in another nation may also be an important prerequisite attitude worth
assessing. Potential expatriates might be screened to determine which employees are
already capable of speaking the language of the nation where they will be assigned, or
which ones have traveled to that region previously. Learning the attitudes of the
employee’s spouse and family toward the assignment also can be important to ensure
that there is strong support for becoming expatriates. Another factor in the selection
process is assessing an individual’s level of cultural intelligence [15]. Some managers,
when assigned to a foreign location, adjust easily, whereas others don’t. Cultural
intelligence (CQ) is an individual’s ability to adjust to new cultures.

Compatible Assignments. Adjustment to new surroundings is easier if

employees, especially on their first international assignment, are sent to nations that are
similar to their own. This practice is more likely to be possible in giant firms like
ExxonMobil and IBM that have widespread foreign operations than in smaller
organizations that have only a few international offices.

Predeparture Training. As a minimum, many organizations try to hasten adjustment to

a host nation by encouraging employees to learn the local language. They offer intensive
language training prior to the assignment, and some even give pay differentials to
expatriate employees who learn the local language (a form of knowledge-based pay).

Primary Sociocultural Clusters of Industrialized Nations

Orientation and Support in the New Country. Adjustment is further encouraged after
arrival in the new country if a special effort is made to help the employee and family get
settled. This task may include assistance with housing, transportation, and shopping. It is
especially helpful if a mentor can be assigned to ease the transition. Sometimes this role
can be filled by the previous jobholder, who stays for a short period to share useful
experiences before moving to a new assignment. Another valuable mentor would be a
local national working for the same organization who is available to answer questions
and provide advice regarding culturally acceptable behavior.
 Preparation for Reentry. Employees typically return to their home country after working
in another nation for one to three years and need to be smoothly blended into the
organization and effectively utilized there. This process is called repatriation. Instead,
they often tend to suffer cultural shock in their own homeland. The process of
cross-cultural reentry may cause reverse cultural shock.

Productivity and Cultural Contingencies

The Challenge of Achieving Productivity

Productivity—achieving quantity and quality of results while controlling inputs—is

the central idea that the people of a country need to absorb and embrace in order to
develop the capacity to progress. Without a devotion to productivity, the conditions of
poverty, inefficiency, and wastefulness of natural resources continue, while new capital
inputs are dissipated. Without a belief in productivity, more education merely increases
one’s desire for gaining additional personal status. Unless productivity increases,
whatever one person gains is usually achieved at the expense of others.

The gap in understanding productivity in other nations is widened by the fact that
local managers often ignore rational methods of solving problems and making decisions.
They tend to treat management as a personal art, solving problems subjectively without
adequate attention to whether their decisions will produce the desired result. Since
decision patterns like these are firmly ingrained, it is difficult to change them, regardless
of the quality of communication efforts and the number of training programs provided by
the home organization. Problems are further compounded when these subjective
decisions are not followed with objective measures to determine whether productivity
and customer satisfaction were in fact increased.

Cultural Contingencies

The idea of cultural contingency means that the most productive practices for a
particular nation will depend heavily on its culture. The ideas that work in one nation’s
culture must be blended with the social system, level of economic development, and
employees’ values in a host country.

Theory Z. Cultural contingencies are illustrated by Theory Z, an integrative

model of organizational behavior proposed by William Ouchi.20 Theory Z provides a
useful example of the way in which behavioral prescriptions for management must be
adapted to fit the organization’s cultural environment.

Distinguishing features of Theory Z companies are listed below:

 Managerial Implications. The idea of cultural contingency suggests that
expatriate managers must learn to operate effectively in a new environment. Although
they must operate within the limits of most home-office policies, managers also must be
flexible enough to respond to local conditions. Labor policy, personnel practices, and
production methods need to be adapted to a different labor force. Organization
structures and communication patterns need to be suitable for local operation as well as
coordinated with the home office and other branches.

Management’s Integrating Role. Once managers are on location in a host

country, their attention needs to be directed toward integrating the technological
approaches with the local cultures involved. Where local practices that interfere with
productivity cannot be changed, they can perhaps be bypassed or integrated into a
modified production plan.

The Community Role of Expatriate Managers. Expatriate managers need to

consider what their role will be in a local community. Although they generally are
respected figures with considerable economic power, they are in a country as guests and
may not be readily absorbed into the social and power structures of a local community.
Even if they speak the local language and live in a community for years, they still may
not be fully accepted into its social structure. Because of their marginal role and
subsequent insulation from important insights, they risk misinterpreting much of the
community’s value structure.

Cross-Cultural Communication

Areas in which orientations to cross-cultural communication may differ include contrasts

in the relative value placed on time efficiency, thought patterns, values placed on seeing the
future, the need for personal space, eye contact, physical appearance, posture, gestures, the
meaning of silence, and the legitimacy of touch. These factors make it immensely challenging to
communicate effectively with another person in an international setting. As a consequence, they
are important contingency factors that must be considered carefully by managers.

Transcultural Managers

It is evident that careful attention should be given to cultural preparation of

expatriate employees. Eventually a cadre of employees with cross-cultural adaptability
 can be developed in organizations with large international operations. These employees
are transcultural employees because they operate effectively in several cultures. They
are low in ethnocentrism and adapt readily to different cultures without major cultural
shock. They usually can communicate fluently in more than one language.

SCRIPT

Liya

Good day, everyone! Today we will be discussing Organizational Behavior Across Cultures.

These are the subtopics of today’s chapter.

According to Newstrom, a global economy is now a reality. Many organizations now do business
in more than one country, and these multinational organizations add powerful new dimensions
to organizational behavior.

Understanding how to effectively communicate with people worldwide is a key professional skill
that is very important in today’s multicultural work environment.

Here are the conditions affecting multinational operations:

Social

For this example, the lending of skilled people to a nation for training their local replacements
may provide a more lasting benefit to its development than the lending of capital. There is a
ripple effect of self-development, much as a pebble thrown into a pond creates an impact far
beyond the spot where it landed.

Legal and Ethical Conditions

Different countries have distinct legal frameworks, regulations, and compliance requirements.
Multinational companies must navigate these complexities to ensure legal adherence and
mitigate risks.

Political Conditions

This organizational instability leaves workers insecure and causes them to be passive and low
on initiative.

On the other hand, a strong nationalistic drive may impel locals to desire to run their country and
their organizations by themselves, without interference from foreign nationals. A foreign
manager simply may not be welcome.
Economic Conditions

Economic factors such as exchange rates, inflation, and economic stability play a role in the
success of multinational operations. Fluctuations in currency values, for example, can impact
costs and profits.

Individualism/Collectivism

Individual feelings are subordinated to the group’s overall good, and employees are more likely
to ask, “What is best for the organization?” According to Hofstede & Bond, collectivism is a
situation in which people feel they belong to larger in-groups or collectives that care for them in
exchange for loyalty - and vice versa.

Power Distance

How important are organizational status, prestige, and level in the organizational hierarchy?

Uncertainty avoidance

We Filipinos have a lower preference for uncertainty avoidance reflecting a relaxed attitude in
which practice counts more than principles, and deviation from rules is tolerated.

Masculinity/Femininity

Masculine societies value assertive behavior and the acquisition of wealth; feminine cultures
treasure relationships among people, caring for others, and a greater balance between family
and work life.

Time Orientation

Other cultures value the past and accent the present, with a rich respect for tradition and the
need to fulfill historical social obligations. According to Hofstede, the Philippines ranks 21 out of
23 countries surveyed in terms of scores on the Time Orientation Index (extremely short-term
orientation)

It's crucial for multinational corporations to conduct thorough market research, establish strong
local partnerships, and remain agile in responding to changing conditions.
 Case Study: The Patterson Operation

BACKGROUND
Carrington, Inc., is an international company engaged in the production and distribution of
pharmaceuticals, proprietary drugs, and cosmetics and toiletries. In its worldwide operations,
Carrington employs over 15,000 people and has sales of over $500 million annually.
At the midsouth plant of Carrington, Inc., management was faced with problems of low
productivity, low employee morale, and high unit costs in the section responsible for the
assembly of various kinds of packages containing assortments of different products made by the
company. These “prepaks,” or “deals,” as they are referred to within th organization, are
specially prepared to the specifications of the individual customer. Each package may contain
from 24 to 480 items, and the total number of packages for a customer may range from 10 to
1,500 units. Most of these packages are prepared in such a way that the retailer can set them
up as freestanding, point-of-sale promotional displays. From Carrington’s standpoint, the
objective of using these product displays is to create additional shelf space for Carrington’s
products. In the stores these displays could be placed in aisles or used as shelf extenders.
Assembling the deals is essentially a job-shoptype process, and prior to last year the assembly
room was located in a part of the main plant known as Section 10.
The employees in Carrington’s manufacturing and assembly operations are unionized, and the
firm uses a Halsey 50-50 Incentive Plan, a time-saved bonus plan. Under the Halsey Plan, a
worker who can do her or his job in less than the standard time receives a bonus of 50 percent
of the hourly wage rate multiplied by the time saved. For example, an employee who completed
10 standard hours of work in 8 hours would be paid 8 hours plus 1 of the 2 hours saved. Thus, if
the hourly pay rate is $8.50, the worker would earn $76.50 for the day.

PROBLEMS WITH SECTION 10

The assembly of prepaks in Section 10 used roller-type conveyor belts which supplied each
worker with the products to be included in a particular package. The working conditions were
outstanding; the work area was very clean, well lighted, and air-conditioned. An attractive
cafeteria for employee use was available in the same large building.

In spite of good working conditions and the chance to earn extra pay through the company’s
incentive system, the operation in Section 10 had encountered a marked trend of increases in
unit costs and decreases in output per labor hour. In fact, during the last three years cost figures
revealed that the section was below the break-even point. Contributing to this deteriorating
situation was low productivity and failure of employees to meet the work standard. This latter
problem was made particularly evident by the fact that no employees were able to earn a bonus
under the incentive plan. Discipline in Section 10 was poor and supervisors were constantly
having problems. A number of grievances had been generated. Morale was not helped by the
fact that any employee quite often was moved from one assembly line to another. This action
tended to increase production costs because the employees had little chance of moving down a
particular learning curve before being moved to another operation. Another factor indicative of
low morale was the employees’ attitudes. There was no spirit of mutual cooperation and the
attitude of “that’s not my job” was prevalent. All in all, working in Section 10 was considered an
unpopular work assignment. The work required manual labor and was perceived as relatively
hard work compared with work on the automated lines in the other work areas. Also, word had
spread that no one could “make bonus” working there. Eventually, through the bidding system
used by the organization, the workforce in Section 10 came to consist, in large part, of young
inexperienced employees, problem workers, and malcontents. As one manager described the
situation, “Section 10 had the pits of the workforce.”

A NEW OPERATION

Early last year management at Carrington was confronted with a severe space problem for its
expanding manufacturing and assembly operations. Several alternatives were considered, but
none seemed to offer an economically feasible solution to the space problem. In near
desperation, managers held a brainstorming session that led to a decision to move a large part
of the assembly of the deals to a facility already leased by the company and presently used as a
warehouse. This facility was located on Patterson Street; thus the new deal room became
known in the company as the “Patterson operation.” The new facility fell far short of providing
work space and conditions comparable to those in Section 10. The building was located in an
entirely separate area approximately 3 miles from the main plant in a neighborhood of
run-down, low-income housing and other warehouse operations. The building housing the
Patterson operation had been thought to be acceptable only for warehouse use. It was an old
brick structure with a number of large open bays for shipping and receiving. The building was
dark, poorly ventilated, not air-conditioned, and inadequately heated. It was poorly suited for use
by workers involved in assembly operations. Temperatures averaged approximately 50 degrees
during the winter months and well over 90 degrees in the summer. There was no cafeteria or
food service, and employees either brought their own lunch or went to a small neighborhood
grocery in the vicinity and bought food. Other worker facilities, such as restrooms and break
areas, were poor. In summary, working conditions contrasted sharply with those of Section 10,
with its clean, air-conditioned, well-heated facilities in a good neighborhood and with a first-class
company cafeteria available. Despite these tremendous obstacles and seemingly against its
best judgment, management, pressed for manufacturing space, decided to move the assembly
of prepaks to the Patterson warehouse. Little money was spent on modifications of the
Patterson facility.
RESULTS OF THE MOVE

Moving to Patterson involved the transfer of approximately 40 employees from the main plant,
most of whom were African Americans with low seniority. Under the new structure, all these
workers were managed by Fred Hammond, an African-American first-line supervisor. As
foreman, Fred made some drastic changes in the assembly operation. He set up the assembly
line so that individual workers could work on the same job until that particular order was
completed. The situation was entirely different from the one in Section 10 where an employee
could work on as many as three different assemblies during a day’s time. Under the new plan,
the repetition of working on only one line enabled workers to develop speed, which facilitated
their earning bonuses. The new foreman introduced some other innovations. He allowed
employees the opportunity to influence decisions concerning their work hours and the times of
their rest breaks. While at the main plant the playing of radios in a production area was not
permitted, at Patterson it gradually became acceptable to have radios tuned to popular music,
usually played at a high volume level. Other nonstandard conditions existed at Patterson.
Employees did not have to observe dress codes, wear bonnets, or refrain from wearing jewelry
on the job. Because of the rather remote location of Patterson off the main plant site, managers
or supervisors from the plant visited the new facility rather infrequently. Where violations of
certain company policies existed, a somewhat liberal attitude was taken by management. In
order to have some place to eat or to take a break, the employees got together and furnished a
small room with enough tables and chairs to modestly equip a rather austere dining room and
break area. Eventually this room was air-conditioned. In addition, the employees were
attempting to get the company to furnish some paint so that they could repaint the room. With
these and other changes, a shift in worker attitudes began to evolve. Employees came to view
Patterson as their own “company.” A feeling of mutual cooperation prevailed, as evidenced by
the willingness of individual workers to assist others when possible. An esprit de corps
developed among the Patterson workers. Productivity increased to such an extent that
employees were receiving bonuses, which had very seldom been the case in the old location.
The jobs at Patterson became more popular and the composition of the workforce there
gradually changed from one of inexperienced and dissatisfied workers to one in which older and
better-qualified people began to bid actively for the jobs. Since the Patterson operation opened,
there has been only one grievance filed, and during the first year of operation there was a 32.8
percent increase in productivity over that of Section 10. Since the inception of the Patterson
operation, Fred Hammond, the first-line supervisor initially in charge, was promoted. He was
replaced by May Allison who has continued to run the operation in the same manner as
Hammond. To an outside observer, it is rather amusing to watch May, who is less than 5 feet tall
and weighs approximately 100 pounds, in her supervisory relationship with the workforce,
particularly the burly male employees and the older female workers. It is apparent that she has
been able to earn the respect and admiration of the employees and has developed effective
work relationships with them. Recent data indicate higher productivity and more bonuses at
Patterson than in comparable work in the main plant. May is well liked personally as evidenced
by employee contributions of about $75 for her birthday gift. May has continued to get the
employees to participate in decision making, for example, in the decision to change work hours
at Patterson during the summer months from 5:30 A.M. to 2:00 P.M. rather than 7:30 A.M. to
4:00 P.M. as in the other plant areas. This change was initiated because of the nearly
unbearable heat of the late afternoon in the warehouse. This change in work schedule was not
in accordance with company policy, but it has been tolerated by management. The workers at
Patterson really preferred an even earlier workday, but that choice was not feasible because of
coordination problems in receiving goods from the main plant. Another interesting development
at Patterson is the formation of the workers’ own softball team, called the Patterson Warriors.
Normally, the company fields a team composed of players from all units instead of from only one
particular section. Again, Patterson employees made a decision and acted independently,
without reference to overall company personnel policy. Work records at the Patterson operation
concerning absenteeism, tardiness, and turnover are not better than those in the main plant. In
a few cases they are slightly worse although this difference is not considered to be significant by
management. However, the very low grievance rate, the high level of worker morale, and the
better productivity at Patterson are pleasant surprises to management. The activities of the
Patterson operation are fairly well known among the managers at the mid-south plant of
Carrington. Management reactions range from positive to negative, with some managers
ambivalent about Patterson. All, however, seem to agree that the Patterson operation is, at
least, interesting.

STUDY GUIDES

1. Has the Patterson operation been successful? To the degree that it can be judged a success,
what factors have contributed to it?
2. Identify the leadership styles of Fred Hammond and May Allison. Apply several of the
leadership models to the case, such as Fiedler’s contingency model and the Hersey Blanchard
situational model.
3. Comment on the informal organization at Patterson. In what ways did the employees create
their own “company”?
4. Review Herzberg’s two-factor model. Why didn’t the change in physical working conditions (a
deterioration of a hygiene factor) harm productivity? What did cause the workers to be
productive?