A summary of the factors of the Big Five and their constituent traits:

[4]

Openness to experience (inventive/curious vs. consistent/cautious). Appreciation for art, emotion, adventure, unusual ideas, curiosity, and variety of experience. Openness reflects the degree of intellectual curiosity, creativity and a preference for novelty and variety a person has. It is also described as the extent to which a person is imaginative or independent, and depicts a personal preference for a variety of activities over a strict routine. Some disagreement remains about how to interpret the openness factor, which is sometimes called "intellect" rather than openness to experience. Conscientiousness (efficient/organized vs. easy-going/careless). A tendency to show selfdiscipline, act dutifully, and aim for achievement; planned rather than spontaneous behavior; organized, and dependable. Extraversion (outgoing/energetic vs. solitary/reserved). Energy, positive emotions, surgency, assertiveness, sociability and the tendency to seek stimulation in the company of others, and talkativeness. Agreeableness (friendly/compassionate vs. cold/unkind). A tendency to be compassionate and cooperative rather than suspicious and antagonistic towards others. It is also a measure of ones' trusting and helpful nature, and whether a person is generally well tempered or not. Neuroticism (sensitive/nervous vs. secure/confident). The tendency to experience unpleasant emotions easily, such as anger, anxiety, depression, or vulnerability. Neuroticism also refers to the degree of emotional stability and impulse control, and is sometimes referred by its low pole "emotional stability

CHARACTERISTICS OF SOUND HRM POLICY While developing sound personnel policies management should pay attention to the following things: 1. Related to Objectives: Policies must be capable of relating objectives functions, physical factors and company personnel. 2. Easy to Understand: Policies should be stated in define, positive, clear and understandable language. 3. Precise: Policies should be sufficiently comprehensive and prescribe limits and yardsticks for future action. 4. Stable as well as Flexible: Personnel policies should be stable enough assure people that there will not be drastic overnight changes. They should be flexible enough to keep the organization in tune with the times. 5. Based on Facts: Personnel policies should be built on the basis of facts and sound judgment and not in personal feelings or opportunistic decision. 6. Appropriate Number: There should be as many personnel policies as necessary to cover conditions that can be anticipated, but not so many policies as to become confusing or meaningless. 7. Just, Fair and Equitable: Personnel policies should be just, fair and equitable to internal as well as external groups. For example, a policy of recruitment from within may limit opportunities to bright candidates from outside: and a policy of recruitment from outside only would limit promotional avenue to promising internal candidates. To ensure justice, it is necessary to Pursue both the policies scrupulously and apply them carefully. 8. Reasonable: Personnel policies must be reasonable and capable of being accomplished. To gain acceptance and commitment from employees, the policy should be conditioned by the suggestions and reactions of those who are affected by the policy. 9. Review: Periodic review of personnel policies is essential to keep in tune with changing times, and to avoid organizational complacency or managerial stagnation. For instance, if the current thinking is in favor of workers participation in management , the personnel policy should be suitably adjusted to accommodate the latest fad, accepted by many in the organization Personnel policies to be sound should also have broad coverage in addition to satisfying the above conditions. Hence, it would be appropriate to discuss the coverage of personnel policies here

Chapter 14 Understanding Individual Behavior Have you ever wondered why the people around you are behaving the way they are? People differ in their behaviors, and even the same person can behave one way one day and a completely different way another day. Managers need to understand individual behavior. Focus on the following learning outcomes as you read and study this chapter. LEARNING OUTCOMES 14.1 Identify the focus and goals of organizational behavior. 14.2 Explain the role that attitudes play in job performance. 14.3 Describe different personality theories. 14.4 Describe perception and factors that influence it.

14.5 Discuss learning theories and their relevance in shaping behavior. 14.6 Discuss contemporary issues in organizational behavior. A MANAGERS DILEMMA In their study of Chapter 14, students will have an opportunity to learn fundamental information about individual and group behavior in the workplace. This chapter explores topics related to the behavior of individuals at work including attitudes, personality, perception, learning, and motivation. Students will look at dynamics of group behavior that encompass norms, roles, team building, leadership, and conflict resolution. In exploring these dimensions of organizational behavior, the text lays the foundation for understanding how and why people behave the way they do within the organizations environment. In A Managers Dilemma, students read about the challenges facing HCL Technologies CEO, Vineet Nayar. As part of HCLs employee first philosophy, the company implemented a no layoff policy during an economic downturn. After things improved, HCL employees began looking at competitors job offers. During the first quarter of 2010, HCL lost 22 percent of its workforce. While it may appear that HCL is doing what it takes to retain its employees, there appears to be an issue with employee satisfaction. Students are asked what they would do in Mr. Nayars position. An important first step would be an employee survey to determine how employees feel about the company, its culture, and its policies. It should be determined how employees perceive the companys no layoff policy. Is could be possible that employees dont see the value in a companys promise not to lay them off if they dont value the job they have with the company. Its also possible that employees are leaving for a variety of reasons, such as more pay or better benefits. CHAPTER OUTLINE INTRODUCTION This chapter examines numerous factors that influence employee behavior and their implications for managers. 14.1 FOCUS AND GOALS OF ORGANIZATIONAL BEHAVIOR Organizational behavior is the study of how people act at work. The visible organization can be described as the tip of an iceberg; many of the important issues involved in understanding OB are not easily observed. (See Exhibit 14A. Focus of Organizational Behavior. Organizational behavior focuses on two major areas: 1. Individual behavior 2. Group behavior B. The goals of OB are to explain, predict, and influence behavior. Six important behaviors have been identified from for the study of OB: employee productivity, absenteeism, turnover, organizational citizenship behavior (OCB), job satisfaction, and workplace misbehavior. 14.2. ATTITUDES AND JOB PERFORMANCE Attitudes are defined as evaluative statementsfavorable or unfavorable concerning objects, people, or events. Attitudes have three components: cognitive, affective, and behavioral. 1. The cognitive component of an attitude is the part of an attitude that is made up of the beliefs, opinions, knowledge, or information held by a person. 2. The affective component of an attitude is that part of an attitude that is the emotional, or feeling, part. 3. The behavioral component of an attitude is that part of an attitude that refers to an intention to behave in a certain way. Managers are particularly interested in the job-related attitudes of employees. Job-related attitudes include job satisfaction, job involvement, organizational commitment, and organizational citizenship behavior. A. Job Satisfaction. Job Satisfaction is defined as an employees general attitude toward his or her job. 1. In general, US workers report that they are satisfied with their job; however, this number has been declining since the 1995. The degree of job satisfaction has been linked to income, but is probably influenced more by the type of job an employee performs. 2. Following the Hawthorne Studies, many managers believed that if they kept their employees happy,

the employees would be productive. Current studies show a fairly strong relationship between satisfaction and performance. 3. Research on job attitudes shows a strong negative relationship between job satisfaction and absenteeism. 4. The strongest variable related to job satisfaction is turnover. 5. Job satisfaction has been linked to customer satisfaction, but a converse relationship has also been found to be true, customer dissatisfaction has been related to an employees job satisfaction. 6. Organizational citizenship behavior is the discretionary behavior that is not part of an employees formal job requirements, but promotes the effective functioning of the organization. While it is obvious that job satisfaction is related to organizational citizenship behavior, other variables such as fairness and the type of citizenship behavior play a role in the relationship. 7. While it is difficult to predict how employees will respond, managers need to be aware that dissatisfied employees may engage in misbehavior or violence at work. B. Job Involvement and Organizational Commitment. Job involvement is the degree to which an employee identifies with his or her job, actively participates in it, and considers his or her job performance important to his or her self-worth. Organizational commitment is an employees orientation toward the organization in terms of his or her loyalty to, identification with, and involvement in the organization. C. Employee Engagement. Highly engaged employees are passionate about and deeply connected to their work. Disengaged employees have essentially checked out and dont care. Exhibit 142 lists the key engagement factors D. Attitudes and Consistency. Research has generally shown that people seek consistency among their attitudes and between their attitudes and their behavior. E. Cognitive Dissonance Theory. Cognitive dissonance refers to any inconsistency that an individual might perceive between attitudes or between behavior and attitudes. 1. Dissonance or inconsistency leads to an uncomfortable state for the individual, who will try to reduce the inconsistency. 2. The desire to reduce dissonance is determined by (a) the importance of the factors creating the dissonance, (b) the degree of influence the individual believes he/she has over those factors, and (c) the rewards that may be involved in dissonance. 3. Individuals reduce dissonance either by changing the behavior, concluding that the dissonant behavior is not so important after all, by changing the attitude or by identifying compatible factors that outweigh the dissonant ones. E. Attitude surveys. Companies often use surveys to ask employees how they feel about their jobs, work groups, supervisors, or the organization. Exhibit 14-3 provides a sample of an attitude survey. F. Implications for Managers. A controversy exists concerning the relationship between satisfaction and productivity. Are happy workers productive workers? 1. Following the Hawthorne Studies, many managers believed that if they kept their employees happy, the employees would be productive. 2. A review of the research on worker productivity indicates that if satisfaction does have a positive effect on productivity, that effect is fairly small. 3. Rather, managers should focus on factors that are conducive to a high degree of employee satisfaction. Such factors include mentally challenging work, equitable rewards, supportive working conditions, and supportive colleagues. 4. The implication for managers from understanding attitudes is that there is relatively strong evidence that committed and satisfied employees have lower rates of turnover and absenteeism. Also, the belief that making employees happy will make them productive needs to be reexamined. LEADERS WHO MAKE A DIFFERENCE Singapore Airlines (SIA) has a stellar reputation in the fiercely competitive commercial aviation business. Chew Choon Seng, has helped to create a culture where employees excel and passengers appreciate the

outstanding customer service. How does SIA build a positive culture? SIA carefully selects people who are warm, hospitable, and happy to serve others. All employeesfrom bottom to topare very proud to be part of the SIA family. 14.3 PERSONALITY Personality is defined is the unique combination of emotional, thought, and behavioral patterns that affect how a person reacts and interacts with others. A. MBTI. The Myers-Briggs Type Indicator (MBTI) is a general personality assessment. The MBTI measures four dimensions: 1. Social interaction: extrovert (E) or introvert (I) 2. Preference for gathering data: sensing (S) or intuitive (N) 3. Preference for decision making: feeling (F) or thinking (T) 4. Style of making decisions: perceptive (P) or judgmental (J) Combining these preferences provides descriptions about 16 different personality types. Examples of MBTI personality types are shown in Exhibit 14-4. B. The Big Five Model. The Big-Five Model is a five-factor model of personality. 1. Research has shown that important relationships exist between these personality dimensions and job performance. 2. The personality traits in the Big-Five Model are listed below: a. Extraversion b. Agreeableness c. Conscientiousness d. Emotional Stability e. Openness to Experience C. Additional Personality Insights. Personality researchers have identified five additional personality traits that have proved to be the most powerful in explaining individual behavior in organizations: locus of control, Machiavellianism, self-esteem, self-monitoring, and risk-taking. 1. Locus of control is the degree to which people believe they control their own fate. Locus of control can be either external or internal. 2. Machiavellianism is the degree to which people are pragmatic, maintain emotional distance, and believe that ends justify means. 3. Self-esteem is an individuals degree of like or dislike for himself or herself. 4. Self-monitoring is an individuals ability to adjust his or her behavior to external situational factors. 5. Risk-taking refers to an individuals willingness to take risks. D. Personality Types in Different Cultures. Do these personality types transfer across cultures? Although no common personality types are found in a given national culture a countrys culture can influence dominant personality characteristics of its people. This is particularly true for the personality trait, locus of control. E. Emotions and Emotional Intelligence. Emotional intelligence (EI) is the ability to notice and to manage emotional cues and information. 1. Emotional intelligence is composed of five dimensions: a. Self-awareness b. Self-management c. Self-motivation d. Empathy e. Social skills 2. Research has shown that emotional intelligence is positively related to job performance at all organizational levels. F. Implications for Managers. The benefit of a managers understanding personality differences is clearly seen in the area of employee selection. Just as individual personalities differ, so too do jobs. Efforts have been made to match the proper personalities with the proper jobs.

1. John Holland has developed the best-documented personality-job fit theory (see Exhibit 14-5). 2. The key points of his model: Intrinsic differences in personality probably do exist among individuals; there are different types of jobs; and people who work in job environments congruent with their personality types should be more satisfied. 14.4 PERCEPTION Perception is the process of organizing and interpreting sensory impressions in order to give meaning to the environment. A. Factors that influence perception. A number of factors operate to shape and sometimes distort perception: 1. The perceiver 2. The target (See Exhibit 14-6) 3. The situation B. Attribution theory is a theory that explains how we judge people differently depending on the meaning we attribute to a given behavior. The determination of the cause of the behavior depends on three factors: distinctiveness, consensus, and consistency. 1. Distinctiveness refers to whether an individual displays different behavior in different situations. 2. Consensus refers to whether an individual who is faced with a similar situation responds in the same way with the same behavior. 3. Consistency refers to the congruency in a persons actions, that is, whether the person engages in the behaviors regularly and consistently. 4. Exhibit 14-7 summarize the key elements of attribution theory. 5. One of the most interesting findings of attribution theory is that there are errors or biases that distort attributions. a. The fundamental attribution error refers to the tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others. b. Self-serving bias is the tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors. C. Shortcuts We Use In Judging Others. 1. Assumed similarity is the belief that others are like oneself. 2. Stereotyping refers to judging a person on the basis of ones perception of a group to which he or she belongs. 3. Halo effect refers to a general impression of an individual based on a single characteristic. D. The Implication For Managers. Managers need to recognize that their employees react to perceptions, not reality. Management is also not immune to biases and can negatively impact employees perception of fairness with inaccurate appraisals or setting discriminatory wage levels. 14.5 LEARNING Learning is any relatively permanent change in behavior that occurs as a result of experience. A. Operant conditioning is a type of learning in which desired voluntary behavior leads to a reward or prevents a punishment. 1. B. F. Skinner is the psychologist most often associated with operant conditioning theory. 2. Operant conditioning theory proposes that behavior is determined from without (that is, learned) rather than from within (reflexive, or unlearned). 3. Skinner argued that creating pleasing and desirable consequences to follow some specific behavior would increase the frequency of that behavior. 4. People will most likely engage in desired behaviors if they receive positive reinforcement for doing so. B. Social learning is a learning theory that says people learn through observation and direct experience. Four processes determine the amount of influence that these models will have on an individual: attentional processes, retention processes, motor reproduction processes, and reinforcement processes. 1. Attentional processes. People learn from a model only when they recognize and pay attention to its

critical features. 2. Retention processes. A models influence depends upon how well an individual remembers the models action. 3. Motor reproduction processes. After a person has observed a new behavior by watching a model, he/she must demonstrate an ability to do the modeled activities. 4. Reinforcement processes. Individuals will be motivated to exhibit modeled behavior if positive rewards are provided. C. Shaping: A Managerial Tool. In shaping, a manager systematically reinforces each successive step that moves an individual closer to a desired response. Behavior can be shaped in four ways: 1. Positive reinforcement is reinforcing a desired behavior by providing something pleasant after that behavior. 2. Negative reinforcement is reinforcing a desired behavior with the termination or withdrawal of something unpleasant. 3. Punishment penalizes undesirable behavior. 4. Extinction involves eliminating any reinforcement that is maintaining a behavior. D. Implications for Managers. From learning theory, managers should recognize that employees will learn while doing a job. A key question: Will managers manage employees learning through the rewards the managers allocate and the examples they set, or will managers allow learning to occur haphazardly? 14.6 CONTEMPORARY OB ISSUES A. Managing Generational Differences. Generations are defined by the attitudes and goals that distinguish them from those born in other times. For managers, adapting to a new generation of employees can be a challenge. 1. In comparison to previous groups, Generation Y employees have proven to be unique in their casual and laid back attitude toward work. Exhibit 14-8 lists some of the characteristics consistent with Gen Y workers. 2. In dealing with Gen Y workers, managers find three issues that can create conflict with traditional organizational methods: appearance, technology, and management style. B. Managing Negative Behavior in the Workplace. Managers need to recognize that negative behaviors exist and ignoring such misbehavior will only confuse employees. In dealing with negative behaviors, managers need to practice preventive and responsive actions.

Many of the original works outlining the major theories that are the basis for current knowledge about behavioural change theories were published in the 1970s and 1980s. These include Martin Fishbein and Icek Ajzen's work on the Theory of Reasoned Action and Ajzen's later modification of that into the Theory of Planned Behaviour, Albert Bandura's writings on Social Cognitive Theory, and James Prochaska and Carlo DiClemente's works on the Transtheoretical Model. More recently, interest in behavioural change theories has arisen due to their apparent application in areas like health, education, and criminology, leading to further research backed by institutions like the National Institutes of Health and the UK Prime Minister's Strategy Unit. With this renewed interest, however, there is also a shift towards research into understanding the maintenance of behavioural change in addition to broadening the research base for [1][2] revising current theories that focus on initial change.

General theories and models [edit]

Each behavioural change theory or model focuses on different factors in attempting to explain behavioural change. Of the many that exist, the most prevalent are the learning theories, Social Cognitive Theory, Theories of Reasoned Action and Planned Behaviour, Transtheoretical Model and the Health Action Process Approach. Research has also been conducted regarding specific elements of these [3] theories, especially elements like self-efficacy that are common to several of the theories.

Self-efficacy [edit]
Self-efficacy is an individual's impression of their own ability to perform a demanding or challenging task such as facing an exam or undergoing surgery. This impression is based upon factors like the individual's prior success in the task or in related tasks, the individual's physiological state, and outside sources of [4] persuasion. Self-efficacy is thought to be predictive of the amount of effort an individual will expend in initiating and maintaining a behavioural change, so although self-efficacy is not a behavioural change theory per se, it is an important element of many of the theories, including the Health Belief Model, [4][5][6] the Theory of Planned Behaviour and the Health Action Process Approach.

Learning theories/behaviour analytic theories of change [edit]

Poster promoting education and civic activity, Federal art project, ca. 1938

From behaviourists such as B. F. Skinner come the learning theories, which state that complex behaviour [5] is learned gradually through the modification of simpler behaviours. Imitation and reinforcement play important roles in these theories, which state that individuals learn by duplicating behaviours they observe [7] in others and that rewards are essential to ensuring the repetition of desirable behaviour. As each simple behaviour is established through imitation and subsequent reinforcement, the complex behaviour

develops. When verbal behaviour is established the organism can learn through rule-governed behaviour and thus not all action needs to be contingency shaped. Skinner (1957) was one of the first psychologists to recognise the critical role of imitation (what he termed [8] "echoic behaviour") in the learning of language. Behaviour analytic theories of change have been quite effective in improving the human condition (see behaviour therapy, behaviour modification and applied behaviour analysis).

Social learning/social cognitive theory [edit]

According to the social learning theory, which is also known as the social cognitive theory, behavioural change is determined by environmental, personal, and behavioural elements. Each factor affects each of the others. For example, in congruence with the principles of self-efficacy, an individual's thoughts affect their behaviour and an individual's characteristics elicit certain responses from the social environment. Likewise, an individual's environment affects the development of personal characteristics as well as the person's behaviour, and an individual's behaviour may change their environment as well as the way the individual thinks or feels. Social learning theory focuses on the reciprocal interactions between these [9] factors, which are hypothesised to determine behavioural change.

Theory of Reasoned Action [edit]

The Theory of Reasoned Action assumes that individuals consider a behaviour's consequences before performing the particular behaviour. As a result, intention is an important factor in determining behaviour [3] and behavioural change. According to Icek Ajzen, intentions develop from an individual's perception of a behaviour as positive or negative together with the individual's impression of the way their society perceives the same behaviour. Thus, personal attitude and social pressure shape intention, which is [3] essential to performance of a behaviour and consequently behavioural change.

Theory of Planned Behaviour [edit]

In 1985, Ajzen expanded upon the theory of reasoned action, formulating the Theory of Planned Behaviour, which also emphasises the role of intention in behaviour performance but is intended to cover cases in which a person is not in control of all factors affecting the actual performance of a behaviour. As a result, the new theory states that the incidence of actual behaviour performance is proportional to the amount of control an individual possesses over the behaviour and the strength of the individual's intention [3] in performing the behaviour. In his article, Ajzen further hypothesises that self-efficacy is important in determining the strength of the individual's intention to perform a behaviour.

Transtheoretical/Stages of Change Model [edit]

According to the Transtheoretical Model, which is also known as the Stages of Change Model, behavioural change is a five-step process. The five stages, between which individuals may oscillate before achieving complete change, are precontemplation, contemplation, preparation, action, and [5] maintenance. At the precontemplation stage, an individual may or may not be aware of a problem but has no thought of changing their behaviour. From precontemplation to contemplation, the individual develops a desire to change a behaviour. During preparation, the individual intends to change the behaviour within the next month, and during the action stage, the individual begins to exhibit new behaviour consistently. An individual finally enters the maintenance stage once they exhibit the new [10] behaviour consistently for over six months.

Health Action Process Approach [edit]

The Health Action Process Approach (HAPA) is designed as a sequence of two continuous selfregulatory processes, a goal-setting phase (motivation) and a goal-pursuit phase (volition). The second phase is subdivided into a pre-action phase and an action phase. Motivational self-efficacy, outcomeexpectancies and risk perceptions are assumed to be predictors of intentions. This is the motivational phase of the model. The predictive effect of motivational self-efficacy on behaviour is assumed to be mediated by recovery self-efficacy, and the effects of intentions are assumed to be mediated by planning. The latter processes refer to the volitional phase of the model

The Fiedler contingency model bases the leader's effectiveness on what Fred Fiedler called situational contingency. This results from the interaction of leadership style and situational favorability (later called situational control). The theory defined two types of leader: those who tend to accomplish the task by developing good relationships with the group (relationship-oriented), and those who have as their [31] prime concern carrying out the task itself (task-oriented). According to Fiedler, there is no ideal leader. Both task-oriented and relationship-oriented leaders can be effective if their leadership orientation fits the situation. When there is a good leader-member relation, a highly structured task, and high leader position power, the situation is considered a "favorable situation". Fiedler found that task-oriented leaders are more effective in extremely favorable or unfavorable situations, whereas relationship-oriented leaders perform best in situations with intermediate favorability. Victor Vroom, in collaboration with Phillip Yetton (1973) and later with Arthur Jago (1988), developed a taxonomy for describing leadership situations, which was used in a normative decision model where leadership styles were connected to situational variables, defining which approach was more suitable to [34] which situation. This approach was novel because it supported the idea that the same manager could rely on different group decision making approaches depending on the attributes of each situation. This [35] model was later referred to as situational contingency theory. The path-goal theory of leadership was developed by Robert House (1971) and was based on [36] the expectancy theory of Victor Vroom. According to House, the essence of the theory is "the meta proposition that leaders, to be effective, engage in behaviors that complement subordinates' environments and abilities in a manner that compensates for deficiencies and is instrumental to [37] subordinate satisfaction and individual and work unit performance". The theory identifies four leader behaviors, achievement-oriented, directive, participative, and supportive, that are contingent to the environment factors and follower characteristics. In contrast to the Fiedler contingency model, the pathgoal model states that the four leadership behaviors are fluid, and that leaders can adopt any of the four depending on what the situation demands. The path-goal model can be classified both as a contingency theory, as it depends on the circumstances, and as a transactional leadership theory, as the theory emphasizes the reciprocity behavior between the leader and the followers. The situational leadership model proposed by Hersey and Blanchard suggests four leadership-styles and four levels of follower-development. For effectiveness, the model posits that the leadership-style must match the appropriate level of follower-development. In this model, leadership behavior becomes a function not only of the characteristics of the leader, but of the characteristics of followers as wel
[32] [33]