Organizational Behavior introduction Tomáš Ondráček ondracek.t@mail.muni.cz Faculty of Economics and Administration, Masaryk University 2024 WELCOME WELCOME! ·ORBE ·2024 2 / 43 organization & evaluation organization & evaluation ·ORBE ·2024 3 / 43 organization & evaluation organization LECTURES Tuesdays from 10:00 to 10:50 (except Tue 5. 11.) P102 short talk on selected topics SEMINARS Tuesdays from 11:00 to 11:50 (except Tue 5. 11.) P102 presentations, discussions, games ·ORBE ·2024 4 / 43 organization & evaluation evaluation I/II GROUP ASSIGNMENTS content: presentation of theory (5–10 minutes) case study (15–25 minutes) submission: slides for presentation text on case study (2 to 4 pages) four days before the seminar see interactive syllabi ·ORBE ·2024 5 / 43 organization & evaluation evaluation II/II FINAL EXAM written exam requirement: registration for examination in IS time limit 60 minutes essay-type questions evaluation: max. points = 100 A 91 < x B 81 – 90 C 71 – 80 D 61 – 70 E 51 – 60 F x < 51 see interactive syllabi ·ORBE ·2024 6 / 43 introductions introductions ·ORBE ·2024 7 / 43 introductions What do you expect from ORBE? Which topics? https://www.menti.com/alrj4irxfkpq ·ORBE ·2024 8 / 43 activity activity ·ORBE ·2024 9 / 43 activity FAIRNESS FAIRNESS ·ORBE ·2024 10 / 43 activity FAIRNESS fairness What is fair? What is fairness? How to achieve fairness? How to fairly divide some goods? ·ORBE ·2024 11 / 43 activity FAIRNESS What is fairness? https://www.menti.com/alrj4irxfkpq ·ORBE ·2024 12 / 43 activity FAIRNESS Pay Ratio Definition: Comparison of CEO compensation to median employee compensation. Formula: Pay Ratio = CEO’s Total Compensation Median Employee’s Total Compensation Purpose: Measures internal pay equity and highlights income disparity. Regulation: SEC mandates disclosure for U.S. public companies. Implications: High ratio may indicate pay disparity; low ratio suggests equitable structure. ·ORBE ·2024 13 / 43 activity FAIRNESS CEO Pay Ratio by Industry (2023) Industry Avg. CEO Compensation ($) Median Worker Pay ($) Avg. Pay Ratio Communication Services 27,938,121 127,872 218 Consumer Discretionary 17,811,153 36,223 492 Information Technology 20,983,674 65,834 319 Health Care 19,875,431 58,912 337 Financials 15,683,291 71,654 219 Table: Average CEO-to-Worker Pay Ratio by Industry Source: AFL-CIO, 2024 Executive Paywatch Report https://aflcio.org/paywatch/company-pay-ratios (AFL-CIO, 2024) ·ORBE ·2024 14 / 43 activity FAIRNESS CEO Pay Ratio by European Region (2023) Region Avg. CEO Compensation (e) Median Worker Pay (e) Avg. Pay Ratio Western Europe 7,500,000 50,000 150 Northern Europe 4,000,000 60,000 67 Southern Europe 5,000,000 30,000 167 Eastern Europe 3,000,000 20,000 150 Table: Average CEO-to-Worker Pay Ratio by European Region Source: Consultancy.eu, Willis Towers Watson, 2024 Executive Compensation Report (Consultancy.eu & Watson, 2024) ·ORBE ·2024 15 / 43 activity FAIRNESS Ethical Considerations and Behavioral Impacts of CEO Pay Ratios 1. What ethical issues arise from significant income inequality within an organization? 2. How does a high CEO-to-worker pay ratio affect employee motivation and workplace morale? 3. In what ways might large pay disparities influence consumer perceptions of a company? 4. What arguments can be made for and against capping the CEO-to-worker pay ratio? 5. How can understanding pay ratios help future leaders make ethical business decisions? ·ORBE ·2024 16 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY ZUCKERBERG/FACEBOOK APOLOGY ·ORBE ·2024 17 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY What is an apology? https://www.menti.com/alrj4irxfkpq ·ORBE ·2024 18 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY KFC Apology (Rainey, 2018) ·ORBE ·2024 19 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology (Bennett, 2018) ·ORBE ·2024 20 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology I 2013 – Thisisyoudrigitalife Aleksandr Kogan psychological test – 300 000 users harvesting data from tested persons and their friends 2014 – new rules need for permission not retroactively imposed 2015 – Ted Cruz banning app legally pressure to delete data erase of the date certified by the firm 2016 – Donald Trump Mark Turnbull acknowledge help of CA to Channel 4 news ·ORBE ·2024 21 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology II 2018, March 17 – Expose The Guardian and The New York Times whistle-blower Dan Kitwood 2018, March 20 – The Federal Trade Commission inquiry 2018, March 21 – Zuckerberg Facebook post We have a responsibility to protect your data, and if we can’t then we don’t deserve to serve you. I’ve been working to understand exactly what happened and how to make sure this doesn’t happen again. 2018, March 25 – newspapers ads UK: The Observer, The Sunday Times, Mail on Sunday, Sunday Mirror, Sunday Express, Sunday Telegraph US: The New York Times, The Washington Post, The Wall Street Journal ·ORBE ·2024 22 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY J. L. Austin illocutionary acts behabitives related to attitudes and social behaviour the happiness of the performative utterance Behabitives include the notion of reaction to other people’s behaviour and fortunes and of attitudes and expressions of attitudes to someone else’s past conduct or imminent conduct. There are obvious connexions with both stating or describing what our feelings are and expressing, in the sense of venting our feelings, though behabitives are distinct from both of these. (Austin, 1962: 151, 159) ·ORBE ·2024 23 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY J. R. Searle expressives related to psychological states no direction of fit The illocutionary point of this class is to express the psychological state specified in the sincerity condition about a state of affairs specified in the propositional content. The paradigms of expressive verbs are "thank", "congratulate" "apologize", "condole", "deplore", and "welcome". Notice that in expressives there is no direction of fit. In performing an expressive, the speaker is neither trying to get the world to match the words nor the words to match the world, rather the truth of the expressed proposition is presupposed. Thus, for example, when I apologize for having stepped on your toe, it is not my purpose either to claim that your toe was stepped on nor to get it stepped on. (Austin, 1962: 159);(Searle, 2005: 15) ·ORBE ·2024 24 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY felicity conditions Propositional content Past act A done by S Preparatory condition S believes that A is an offence against H rule (1) The act A specified in the propositional content is an offence against the addressee H rule (2)H would have preferred S’s not doing A to S’s doing A and S believes H would have preferred S’s not doing A to his doing A rule (3) A does not benefit H and S believes A does not benefit H Sincerity condition S regrets act A Essential condition Counts as an apology for act A (Owen, 1983);(Ogiermann, 2009: 46) ·ORBE ·2024 25 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY E. Goffman social ritual self-splitting into different moral agents elements of the fullest form expression of embarrassment and chagrin acknowledging disavowing repenting offering restitution "An apology is a gesture through which an individual splits himself into two parts, the part that is guilty of an offense and the part that dissociates itself from the delict and affirms a belief in the offended rule." (Goffman, 1971: 113) ·ORBE ·2024 26 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Tavuchis’s moral syllogism model Transgression ↓ Call to apology (a mutual understanding of the transgression) Apology (naming the offense and making the literal apology) Response (acceptance, rejection, or discussion) ↓ Reconciliation (Battistella, 2014: 20) ·ORBE ·2024 27 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY goals of image restoration regain trust customers, partners, ... avoid punishment legal actions penalties to strengthen an organization ... apologia(message) and apology (Stamato, 2008) ·ORBE ·2024 28 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Theory of Image Restoration Strategies Denial Simple Denial Did Not Perform Act Coke Does Not Charge McDonald’s Less Shift the Blame Act Performed by Another Exxon: Alaska and Caused Delay Evading of Responsibility Provocation Responded to Act of Another Firm Moved Because of New State Laws Defeasibility Lack of Information or Ability Executive Not Told Meeting Changed Accident Act Was a Mishap Sears’ Unneeded Repairs Inadvertent Good Intentions Meant Well in Act Sears: No Willful Over-Charges Reducing Offensiveness of Event Bolstering Stress Good Traits Exxon’s Swift and Competent Action Minimization Act Not Serious Exxon: Few Animals Killed Differentiation Act Less Offensive Sears: Preventative Maintenance Transcendence More Important Considerations Helping Wellman Justifies Tests Attack Accuser Reduce Credibility of Accuser Pepsi: Coke Charges McDonald’s Less Compensation Reimburse Victim Disabled Movie-Goers Given Free Passes Corrective Action Plan to Solve or Prevent Problem AT&T Promised to Improve Service Mortification Apologize for Act AT&T Apologized (Benoit, 1997: 179) ·ORBE ·2024 29 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: heading ·ORBE ·2024 30 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: heading We have a responsibility to protect your information. If we can’t, we don’t deserve it. ·ORBE ·2024 30 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: heading We have a responsibility to protect your information. If we can’t, we don’t deserve it. Preparatory condition, Bolstering Trust ·ORBE ·2024 30 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: heading We have a responsibility to protect your information. If we can’t, we don’t deserve it. Preparatory condition, Bolstering Trust Goal Facebook deserves data of its users. Facebook can and will be responsibly protecting its users data. ·ORBE ·2024 30 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: heading We have a responsibility to protect your information. If we can’t, we don’t deserve it. Preparatory condition, Bolstering Trust Goal Facebook deserves data of its users. Facebook can and will be responsibly protecting its users data. Users should trust Facebook with theirs data. ·ORBE ·2024 30 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 1st paragraph ·ORBE ·2024 31 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 1st paragraph You may have heard about a quiz app built by a university researcher that leaked Facebook data of millions of people in 2014. This was a breach of trust, and I’m sorry we didn’t do more at the time. We’re now taking steps to make sure this doesn’t happen again. ·ORBE ·2024 31 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 1st paragraph You may have heard about a quiz app built by a university researcher that leaked Facebook data of millions of people in 2014. This was a breach of trust, and I’m sorry we didn’t do more at the time. We’re now taking steps to make sure this doesn’t happen again. Propositional content There was a situation. ·ORBE ·2024 31 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 1st paragraph You may have heard about a quiz app built by a university researcher that leaked Facebook data of millions of people in 2014. This was a breach of trust, and I’m sorry we didn’t do more at the time. We’re now taking steps to make sure this doesn’t happen again. Propositional content Preparatory condition There was a situation. The situation was problematic (damaging). ·ORBE ·2024 31 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 1st paragraph You may have heard about a quiz app built by a university researcher that leaked Facebook data of millions of people in 2014. This was a breach of trust, and I’m sorry we didn’t do more at the time. We’re now taking steps to make sure this doesn’t happen again. Propositional content Preparatory condition Essential condition, Mortification There was a situation. The situation was problematic (damaging). Zuckerberg/Facebook Apologies for this problem. ·ORBE ·2024 31 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 1st paragraph You may have heard about a quiz app built by a university researcher that leaked Facebook data of millions of people in 2014. This was a breach of trust, and I’m sorry we didn’t do more at the time. We’re now taking steps to make sure this doesn’t happen again. Propositional content Preparatory condition Essential condition, Mortification Sincerity condition, Corrective Action There was a situation. The situation was problematic (damaging). Zuckerberg/Facebook Apologies for this problem. Facebook now taking steps to make sure this doesn’t happen again. ·ORBE ·2024 31 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 2nd paragraph ·ORBE ·2024 32 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 2nd paragraph We’ve already stopped apps like this from getting so much information. Now we’re limiting the data apps get when you sign in using Facebook. ·ORBE ·2024 32 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 2nd paragraph We’ve already stopped apps like this from getting so much information. Now we’re limiting the data apps get when you sign in using Facebook. Sincerity condition, Corrective Action Facebook have already made some provisions. ·ORBE ·2024 32 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 3rd paragraph ·ORBE ·2024 33 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 3rd paragraph We’re also investigating every single app that had access to large amounts of data before we fixed this. We expect there are others. And when we find them, we will ban them and tell everyone affected. ·ORBE ·2024 33 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 3rd paragraph We’re also investigating every single app that had access to large amounts of data before we fixed this. We expect there are others. And when we find them, we will ban them and tell everyone affected. Sincerity condition, Corrective Action Facebook is investigating every single app that had access to large amounts of data to prevent similar problematic situation. ·ORBE ·2024 33 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 3rd paragraph We’re also investigating every single app that had access to large amounts of data before we fixed this. We expect there are others. And when we find them, we will ban them and tell everyone affected. Sincerity condition, Corrective Action Warning Facebook is investigating every single app that had access to large amounts of data to prevent similar problematic situation. Facebook expects there are similar problems with other apps. ·ORBE ·2024 33 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 3rd paragraph We’re also investigating every single app that had access to large amounts of data before we fixed this. We expect there are others. And when we find them, we will ban them and tell everyone affected. Sincerity condition, Corrective Action Warning Promise Facebook is investigating every single app that had access to large amounts of data to prevent similar problematic situation. Facebook expects there are similar problems with other apps. Facebook will ban any problematic app. Facebook will inform tell everyone affected. Facebook will fixed this problem. ·ORBE ·2024 33 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 4th paragraph ·ORBE ·2024 34 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 4th paragraph Finally, we’ll remind you which apps you’ve given access to your information – so you can shut off the ones you don’t want anymore. ·ORBE ·2024 34 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 4th paragraph Finally, we’ll remind you which apps you’ve given access to your information – so you can shut off the ones you don’t want anymore. Sincerity condition, Corrective Action Promise FB will provide (better) information regarding data security. ·ORBE ·2024 34 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 4th paragraph Finally, we’ll remind you which apps you’ve given access to your information – so you can shut off the ones you don’t want anymore. Sincerity condition, Corrective Action Promise Shift the Blame, including users to the problem FB will provide (better) information regarding data security. Users already have the possibility not to allowed access to theirs data. ·ORBE ·2024 34 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 5th paragraph ·ORBE ·2024 35 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 5th paragraph Thank you for believing in this community. I promise to do better for you. ·ORBE ·2024 35 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 5th paragraph Thank you for believing in this community. I promise to do better for you. Sincerity condition, Bolstering Facebook cares about its users. ·ORBE ·2024 35 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: 5th paragraph Thank you for believing in this community. I promise to do better for you. Sincerity condition, Bolstering Promise Facebook cares about its users. Mark Zuckerberg will do better for users of Facebook. ·ORBE ·2024 35 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: signing ·ORBE ·2024 36 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Zuckerberg/Facebook Apology: signing Mark Zuckerberg / Facebook is taking the blame. social actor and its face (image) ·ORBE ·2024 36 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY Ethical and Behavioral Considerations of FB/MZ Apology 1. Was that an apology? 2. For whom was this statement intended for? 3. What was this statement intended to do and what was its impact? 4. Do you use FB? ·ORBE ·2024 37 / 43 activity ZUCKERBERG/FACEBOOK APOLOGY BP Apology (Homan Wu, 2010) ·ORBE ·2024 38 / 43 OVERVIEW OVERVIEW ·ORBE ·2024 39 / 43 OVERVIEW ·ORBE ·2024 40 / 43 OVERVIEW questions Who was the author of the apology? Mark Zuckerberg as Facebook To whom was the apology addressed? (What is the intended audience of apology?) informed stakeholders What channel and why was used for the apology? newspapers to balance negative reporting How was the apology crafted? (What is the content?) addressing the main criticism – protection of data admitting to breach of trust – not breach of security stating apology supporting sincerity conditions by doing and promising corrective actions What was written and what can we know from a context? inexact representation of situation ·ORBE ·2024 41 / 43 OVERVIEW responsibility avoidance Is this an attempt to avoid a responsibility? partial confession and bolstering inexact representation of situation breach of trust not breach of security or mistake or wrongdoing pre-emptive warning There are others. evading of responsibility, shifting blame (not explcit denial) including users to the problem shifting person FB, MZ founder, MZ CEO, MZ visionary ... ·ORBE ·2024 42 / 43 Sources AFL-CIO. (2024). Company pay ratios - 2024 executive paywatch report. Retrieved from https://aflcio.org/paywatch/company-pay-ratios (Accessed: 2024-09-23) Austin, J. L. (1962). How to Do Things with Words. Oxford University Press. Battistella, E. L. (2014). Sorry About That: The Language of Public Apology. Oxford University Press. Bennett, L. (2018). Facebook buys print ads to apologise for Cambridge Analytica scandal. http://www.adnews.com.au/news/ facebook-buys-print-ads-to-apologise-for-cambridge-analytica-scandal. AdNews. ([2018-07-23]) Benoit, W. L. (1997). Image Repair Discourse and Crisis Communication. Public Relations Review, 23(2), 177–186. Consultancy.eu, & Watson, W. T. (2024). Navigating the european executive compensation landscape. Retrieved from https://www.consultancy.eu (Accessed: 2024-09-23) Goffman, E. (1971). Relations in Public: Microstudies of the Public Order. Basic Books. Homan Wu, H. (2010). BP’s Confession, Are You Convinced? Artcards Review. Online; accessed 2018-05-08; . Ogiermann, E. (2009). On Apologising in Negative and Positive Politeness Cultures. John Benjamins Publishing. Owen, M. (1983). Apologies and remedial interchanges: A study of language use in social interaction. Mouton de Gruyter. Rainey, C. (2018, February). KFC apologized for its chicken shortage with a seriously great ad. Retrieved from https://www.grubstreet.com/2018/02/ kfc-apologizes-for-uk-chicken-shortage-with-fkc-we-are-sorry-ad.html Searle, J. R. (2005). Expression and meaning: Studies in the theory of speech acts. Cambridge University Press. Stamato, L. (2008). Should business leaders apologize? why, when, and how an apology matters. Ivey Business Journal, 72(4), 1–8.