ILROB 1220 1st Edition Lecture 2 Outline of Last Lecture I. Why Study OB?II. Performance GapsIII. Goals of the CourseOutline of Current Lecture I. Types of CompaniesII. Safety CultureCurrent LectureI. Performance Gaps Exist When…a. Desired performance outcomes do not equal actual performance outcomesb. Competitors have superior performance outcomesII. Types of Companiesa. Non-profiti. Performance gaps include rankings, placements, fundraising, etc.b. For profiti. Public (Ex: Southwest Airlines)ii. Private (Ex: MARS)iii. Performance Gap: Financial Measures1. Absolute Measures: sales, market share, etc.2. Relative Measures: ROA, ROE, ROSa. ROA: Return on Assetsb. ROE: Return on Equityc. ROS: Return on Sales3. You can find data at www.finance.yahoo.com/ or www.reuters.com/finance/stocksiv. Performance Gap: Non-financial Measures1. Lawsuits, Customer complaints, reputation, industry awards, accidents, recallsIII. Safety Culturea. Collection of characteristics and attitudes in an organization – promoted by leaders and internalized by members – that makes safety an overriding priority b. Fundamental Attribution Error: tendency to overemphasize dispositional explanations for behaviors, while under emphasizing situational explanations. (correspondence bias)IV. Summarya. Managers establish systems that allow (or prevent) employees to perform at their highest levels.These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.b. Behavior tends to be a function of the person and the organization.c. When making attributions, be aware of possible