 Understanding how people behave in organizations and why they do

Chapter 1: An Overview of Organizational Behavior what they do is critical to working effectively with and managing others.
 Gives everyone the knowledge and tools they need to be effective at any
What is an Organization? organizational level.
 An organization is a social unit of people that is structured and managed to
meet a need or to pursue collective goals. How Organizational Behavior Impact Organizational Success
 The success of any organization is often determined by how effectively  Organization as a whole also benefits from OB
managers can enhance the performance behaviors of their employees, enhance  By appropriately applying OB knowledge about individuals, groups, and
their commitment to and engagement with the organization, promote the effect of organizational structure on worker behavior, the conditions
citizenship behaviors, and minimize dysfunctional behaviors. can be created that make organizations effective.
 OB also helps the companies perform well
WHAT IS ORGANIZATIONAL BEHAVIOR?  OB also influences absenteeism and turnover.
 Study of human behavior in an organizational settings, of the interface  One central value of organizational behavior – isolates important aspects of the
between human behavior and the organization, and of the organization itself. manager’s job and offers specific perspectives on the human side of
 What people think, feel, and do management: people as organizations, people as resources, and people as
in and around organizations. people.
 Linkages among human  Organizational behavior – allows us to understand that as a leader of a virtual
behavior in organizational tea, one must foster trust, encourage open dialogue, and clarify guidelines.
settings, the individual-
organization interface, the THE MANAGERIAL CONTEXT OF ORGANIZATIONAL BEHAVIOR
organization itself and the  OB is not a defined business function or area of responsibility similar to
environment surrounding the finance or marketing. Rather an understanding of OB provides a set of insights
organization. and tools all managers can use to carry out their jobs more effectively.
 highly interrelated.
Basic Management Functions and Organizational Behavior
Why Study Organizational Behavior?  Planning - determining an organization’s desired future position and the best
 Become a better employee means of getting there.
 Become a better manager  Includes studying and analyzing the environment, deciding on
 Understand how people behave and why they do what they do appropriate goals, outlining strategies for achieving those goals, and
 Organizations that successfully implement OB principles have: developing tactics to help execute the strategies.
 Motivated, engaged employees whose goals align with business strategy
 Organizing - Designing jobs, grouping jobs into units, and establishing
 Strong leadership and direction – Better bottom lines
patterns of authority between jobs and units
 Process produces the basic structure, or framework, of the organization.

 Leading - Getting the organization’s members to work together toward the

How Organizational Behavior Impacts Personal Success organization’s goals
 Core of OB:  Motivating employees, managing group dynamics, and the actual process
 Being effective at work of leadership itself

 Controlling - Monitoring and correcting the actions of the organization and its
members to keep them directed toward their goals
 Control is of vital importance to all business, but it may be especially
critical to smaller ones.
Critical Managerial Skills and Organizational Behavior
 Technical Skills – necessary to accomplish specific tasks within the
organization
 Generally associated with the operations employed by the organization in
its production process
 Interpersonal Skills – used to communicate with, understand, and motivate
individuals and groups
 Conceptual Skills – ability to think in the abstract
 Diagnostic Skills – ability to understand cause-effect relationships and to
recognize the optimal solutions to problems
Organizational Behavior and Human Resource Management
 Human Resource Management (HRM) – the set of organizational activities
directed at attracting, developing, and maintaining an effective workforce
 Set of organizational activities directed at attracting, developing, and
maintaining and effective workforce.
 Questions OB helps HR managers answer:
 Which applicants should be hired?
 Which rewards will be more motivating than others?
The Strategic Context of Organizational Behavior
 Competitive Advantage – anything that gives a form an edge over rivals in
attracting customers and defending itself against competition.
Sources of Competitive Advantage
 Innovation – developing new products, services, and markets in improving
current ones
 Distribution – dominating distribution channels to block competition
 Speed – excelling at getting you product or service to consumers quickly.
 Convenience – being the easiest for customers to do business with
 First to market – introducing products and services before competitors.
 Cost – being the lowest-cost provider
 Service – providing the best customer support, before, during or after the sale.
 Quality – providing the highest-quality product or service
 Branding – developing the most positive image
Types of Business Strategies
 Cost Leadership – striving to be the lowest-cost producer for a particular level
of product quality
 Good at designing products that can be efficiently manufactured and
engineering efficient manufacturing process to keep cost and prices low.
 Organizations pursuing a strategy of keeping costs and prices low try to
develop a competitive advantage in operational excellence.
 Operational excellence – maximizing the efficiency of the manufacturing
or product development process to minimize costs.
 Differentiation – Developing a product or service that has unique
characteristics valued by customers
 Value added by the product’s uniqueness may enable the business to
charge a premium price for it.
 Based on product innovation – continually develop new products and
services to create and advantage in the market.
 Product innovators must protect their entrepreneurial environment.
 Specialization – Focusing on a narrow market segment or niche and pursuing
either a differentiation or cost leadership strategy within that market segment
 Based on customer intimacy – delivering unique and customizable
products or services to meet customers’ needs and increase customer
loyalty.
 Growth – Company expansion organically or through acquisitions
 Response to investor preferences for rising earnings per share, and the
required business expansion generally requires the acquisition of
additional talent.
 Depends on the firm’s ability to find and retain the right number and
types of employees to sustain its intended growth.
 Organic growth – expands by opening new factories or stores.
 Merger and Acquisitions – common way for organizations to achieve
growth, expand internationally, and respond to industry deregulations.
CONTEXTUAL PERSPECTIVE ON ORGANIZATIONAL BEHAVIOR
Where does original behavior come from?
  Formal Study of OB began in 1890s. – Frank and Lilian Gilberth and
Frederick Winslow Taylor identified the positive effects of precise
instructions, goal setting and rewards on motivation.
 FWT – advocated that managers should study jobs of workers, break
those jobs into small tasks, train workers in the “one best way” of doing
their jobs, and then pay workers based on the number of units they
produced.
 Scientific Management – based on the belief that productivity is maximized
when organizations are rationalized with precise sets of instructions based on
time-and-motion studies.
 Belief that productivity is maximized – when organizations are
rationalized with precise sets of instructions based on time-and-motion
studies.
 Four Principles of Scientific Management
 Replace rule-of-thumb work methods with methods based on
scientifically studying the tasks using time-and-motion studies.
 Scientifically select, train, and develop all workers rather than leaving
them to passively train themselves.
 Managers provide detailed instructions and supervision to workers to
ensure that they are following the scientifically developed methods.
 Divide work nearly equally between workers and managers. Managers
should apply scientific management principles to planning the work, and
workers should actually perform the tasks.
 Outcomes of scientific management:
 Productivity increased
 However, work was extremely monotonous / dehumanizing
 Mostly abandoned after World War I
Human Relations Movement (HRM): – Inspired by Hawthorne effect:
 people improve some aspect of their behavior or performance simply because
they know they are being assessed
 Viewed organizations as cooperative systems
 Treated workers’ orientations, values, and feelings as important parts of
organizational dynamics and performance
 Created a new era of more humane, employee-centered management and
highlighted the importance of people to organizational success but was
hampered by unsound research methods
Mary Parker Follet – Prophet of management
 Variety of phenomena, including creativity exercises such as brainstorming,
the “groupthink” effect in meetings, and what later become known as
“management by objectives” and “total quality management”
 Faulty decisions are made because group members try to minimize the
conflict and reach consensus by neglecting to critically analyze test ideas.
W. Edwards Deming – guru of quality management
 Describes how to do high-quality, productive, and satisfying work.
 Deming’s plan-do-check-act cycle of continuous improvement promoted the
adaption of fourteen principles to make organization efficient and capable of
solving almost any problem.
 Believed that removing fear workplace gives employees pride in their
workmanship, which increases production.
Contemporary Organizational Behavior
C onceptual Perspective on
O rganizational B ehavior
System Perspective
Situational
Perspective
Contingency
Interactional
Organizations as Open System
 System – An interrelated set of elements that function as a whole—inputs are  Organizational system receives four kinds of input from its environment:
combined/transformed by managers into outputs from the system material, human, financial, and informational.
 Value of the Systems Perspective
 Underscores the importance of an organization’s environment
 Conceptualizes the flow and interaction of various elements of the
organization

Situational Perspectives on Organizational Behavior

 Situational perspective – suggests that in most organizations, situations and
outcomes are influenced by other variable.

 Recognizes that most organizational situations and outcomes are influenced by

other variables
 “one best way” that could be used in any organization under conditions.
 The Universal Model
 Presumes a direct cause-and-effect linkage between variables
 Complexities of human behavior and organizational settings make
universal conclusions virtually impossible

Interactionalism: People and Situations

 Interactionalism – suggests that individuals and situations interact
continuously to determine individual’s behavior.
 Explain how people select, interpret, and change various situations.
 Simple cause-and-effect descriptions of organizational phenomena are
not enough

MANAGING FOR EFFECTIVENESS

Enhancing Individual and Team Performance Behaviors

Productivity:
Narrow measure of efficiency: number of products or
services created per unit of input – Performance:
• Broader concept made up of all work-related behaviors (willingness to stay late,
have a positive attitude, etc)
– Commitment:
• The degree to which an employee considers herself a true member of the
organization, overlooks minor sources of dissatisfaction, and intends to stay with the
organization

Promoting Organizational Citizenship Behaviors

Organizational Citizenship – behavior of individuals that makes a positive overall
contribution to the organization.
Encompasses all factors outside the strict requirements of the job

Managing Dysfunctional Behaviors

Those that detract from, rather than contribute to, organizational performance.
• Absenteeism
• Turnover
• Theft, sabotage
• Harassment, bullying, violence
• Politicized behavior (spreading rumors, etc) • Incivility, rudeness

Dividing Strategic Execution.

how well managers and their employees understand and carry out the actions needed
to achieve strategic goals
Managers must balance different outcomes across all three level of analysis.
Often requires balancing seemingly contradictory outcomes
Managers must look at full array of outcomes and attempt to balance them in an A theory is a
optimal fashion. collection of
verbal and symbolic assertions that specify how and why variables are related, and
How do we know what to know? the conditions under which they should and should not relate
Intuition and common sense are often wrong – A hypothesis is a written prediction specifying expected relationships between
OB relies on Scientific Method certain variables
Scientific Method – method of knowledge generation that relies on systematic Independent Variable – variable that is predicted to affect something else
studies that identify and replicate a result using a variety of methods, samples, and Variable to set
settings. Dependent variable – predicted to be affected by something else
Variable to measure

Correlation:
– Ranges between -1 and +1
– A correlation of +1 is a perfect positive relationship: as one variable increases, the
other always increases
– A correlation of -1 is a perfect negative relationship: as one variable increases, the
other always decreases
– A correlation of 0 means that there is no relationship between the two variables
  Diversity - The variety of observable and unobservable similarities and
differences among people

TYPES OF DIVERSITY AND BARRIERS TO INCLUSION

Types of Diversity
 Surface-level diversity: observable differences in people, can be seen directly
(e.g. race, gender, ethnicity, physical abilities, and physical characteristics)
 Deep-level diversity: can’t be seen directly (e.g. goals, skills, values,
personalities, decision-making styles, knowledge, abilities, and attitudes)
 Separation diversity: differences in position or opinion among group members
reflecting disagreement or opposition – dissimilarity in attitude or value
 Variety: meaningful differences in a certain type or category (e.g. knowledge,
functional background)
 Disparity: differences in concentration of valuable assets or resources –
dissimilarity in rank, pay, decision-making authority, or status, for instance
(e.g. authority, pay, status)

Generational Differences
Chapter 2: The
 Age-based diversity is a major issue facing many organizations today.
Changing
Environment of  Reverse mentoring: pairing a junior employee with a senior employee to
Organizations Chapter Outline transfer technical/computer skills from the junior employee to the senior
one
 Generations (by birth year)
Globalizati  Seniors: 1922 – 1943
on
 Baby boomers: 1943 – 1963
 Generation X: 1964 – 1980
 Generation Y / Millennials: 1980 – 2000
Technology Diversity

The Diversity Issues for Managers

Organizatio
n  Diversity awareness will enable us to hire, retain, and engage the best talent,
which will help to maximize the organization’s performance.
 Foster greater creativity and innovation.
Employme Ethics and
nt Corporate
relationship Governacn The Business Case for Diversity
s e
 Diversity contributes to a firm’s competitive advantage when it enables all
employees to contribute their full talents and motivation.
DIVERSITY AND BUSINESS  Diversity fosters creativity, innovation, and competitive advantage.
  Diverse groups can use their diverse backgrounds to develop a more
comprehensive view of problem and a broader list of possible solutions.
 Organizational performance increases when employees have a positive attitude
toward diversity
 Culturally diverse teams make better decisions over time than homogeneous
ones
 Title VII of the Civil Rights Act prohibits discrimination based on race, color,
religion, sex, or national origin
Barriers to inclusion
  “Like me” bias: people prefer to associate with others they perceive to be
similar to themselves
 Stereotypes: beliefs about groups and individuals based on the idea that all
group members are the same
 Prejudice: outright bigotry or in tolerance for other groups
 Perceived threat of loss: impeding diversity efforts to thwart a perceived threat
to one’s own career opportunities
 Ethnocentrism: the belief that one’s own language, country, and culture are
superior to all others.
 Has less to do with prejudice and more to do with inexperience or
ignorance about other people and environments.
 Unequal access to organizational networks: formal and informal networks.
Organizational networks influence knowledge sharing, resource accessibility,
and work opportunities.
 women and minorities are often excluded from organizational networks,
which can be important to job performance and career opportunities
Managing Diversity
 the most important element in effectively leveraging the positive potential of
diversity is top management support for diversity and for diversity initiatives.
 Top management support is essential for successful diversity initiatives
 Inclusive environment is created when all employees’ cultural awareness and
empathy are enhance through diversity training and all employees are given
equal access to mentors and other influential company employees.
 Reciprocal mentoring: pairing senior employees with diverse junior employees
to allow both individuals to learn more about a different group
 The goal isn’t to eliminate biases, but to acknowledge and control them
Globalization and Business
 Globalization: The internationalization of business activities and the shift
toward an integrated global economy
 Trends in Globalization / Factors Increasing Globalization
 Advances in communication and transportation
 Growth by expansion into international market
 Control of labor, distribution and distribution costs
 Increased international competition
Cultural Competence
 Ability to interact effectively with people of different cultures.
 Awareness of our own cultural worldview, and of our reactions to people
who are different
 Our attitude toward cultural difference
 Knowledge of different worldviews and cultural practices
 Cross-cultural skills
Cross-Cultural Differences and Similarities
 Culture - a set of shared values that help people in a group, organization, or
society understand which actions are considered acceptable and which are
deemed unacceptable
 General Observations
 Cultural and national boundaries may not coincide
 Behavior in organizational settings varies across cultures – culture is one
major cause of this variation.
 Organizations and the way they are structured appear to be growing
increasingly similar
 The same individual behaves differently in different cultural settings
 Cultural diversity can be an important source of synergy in enhancing
organizational effectiveness
Specific Cultural Issues
 Geert Hofstede’s Research - Attitudes and behaviors differ significantly
because of values and beliefs that characterize different countries.
 Hofstede’s Primary Dimensions
 Individualism – the extent that people in a culture define themselves
primarily as individuals rather than as part of one or more groups or
organizations.
  Collectivism – the tight social frameworks in which people tend to base
their identities on the group or organization to which they belong
 Power Distance or Orientation to authority - the extent to which people
accept as normal an unequal distribution of power
 Uncertainty Avoidance or preference for stability – the extent to which
people feel threatened by unknown situations and prefer to be in clear
and unambiguous situations
 Masculinity or Assertiveness/Materialism – the extent to which the
dominant values in a society emphasize aggressiveness and the
acquisition of money and other possessions as opposed to concern for
people and overall quality of life
 Long-term values - a focus on the future, working on projects that have a
distant payoff, persistence, and thrift
 Short-term values – orientation toward the past and the present including
respect for traditions and social obligations
Global Perspective
 A willingness to be open and learn from the alternative systems and meanings
of other people and cultures, and a capacity to avoid assuming the people from
everywhere are the same.
TECHNOLOGY AND BUSINESS
 Technology - Methods used to create products, including both physical goods
and intangible services. Major driver for other forms of organization change
 The shift toward a service-based economy
 The growing use of technology for competitive advantage
 Mushrooming change in information technology
Manufacturing and Service Technologies
 Manufacturing Organization – A form of business that combines or transforms
resources into tangible outcomes that are then sold to others
 Service Organization – One that transforms resources into an intangible
output; it creates time and place utility for its customers
Technology and Competition
 Technology is the basis of competition of firms whose goals include being the
technology leaders in their industries.
 Challenges for Technology Leaders
 Maintaining a leadership position: technology is the basis of competition
for some firms
 Coping with decreasing cycle times
 Advances in Information Technology
 Advantages: leaner and more flexible organizations, increased
collaboration, improved management processes/systems
 Disadvantages: less personal communication, less “down time,” an
increased sense of communication and decision-making urgency
ETHICS AND CORPORATE GOVERNANCE
 Ethics – a person’s beliefs regarding what is right or wrong in a given
situation.
Framing Ethical Issues
 How an Organization Treats in Employees – this area includes policies such as
hiring and firing, wages and working conditions, and employee privacy and
respect.
 How Employees Treat the Organization – numerical ethical issues also stem
from how employees treat the organization, especially in regard to conflicts of
interest, secrecy and confidentiality, and honesty.
 How Employees and the Organization Treat Other Economic Agents –
managerial ethics come into play in the relationship between the firm and its
employees with other economic agents.
 The interactions between the organization and these agents may be
subject to ethical ambiguity include advertising and promotions, financial
disclosures, or ordering and purchasing, shipping and solicitations,
bargaining and negotiation, and business relationships.
Ethical Issues in Corporate Governance
 Corporate Governance – The oversight of a public corporation by its board of
directors
 Governance Issues
 Proper management of the business in the best interests of the
stakeholders
 Independence of the board from the business
Ethical Issues and Information Technology
 Information Technology Issues - Individual rights to personal information
privacy – Abuse of information technology
Social Responsibility
 Businesses living and working together for the common good and valuing
human dignity
 Works best when integrated with the firm’s culture
 Encompasses concern for employees, the community, and the environment
  Part time workers
 Can lead to higher profits and talent acquisition
Tiered Workforce
 International Organization for Standardization (ISO) – created variety of  Exists when one group of an organization’s workforce has a contractual
standards that help organizations gain international acceptance of their arrangement with the organization objectively different from another group
practices and outcomes performing the same jobs.
 Publishes management standards including leadership, customer focus,
involvement of people, and continual improvement. The Changing Nature of Psychological Contracts
 This standards can help managers meet their environmental and social  Psychological Contract
responsibility objectives.  A person’s overall set of expectations regarding what he or she will
contribute to the organization and what the organization, in return, will
NEW EMPLOYMENT RELATIONSHIPS provide to the individual
 Legal contract in a less formal and less well defined.
The Management of Knowledge Workers  Not written on a paper, nor are all of its terms explicitly negotiated
 Employees who add value in an organization simply because of what they  Individuals contribute effort, skills, ability, time, loyalty
know
 Organizations provide inducements in the form of tangible/intangible
 Computer scientists, physical scientists, engineers, product designers, rewards
video game developers
 Tend to work in high-technology firms and are usually experts in some Contributions from the Individual Inducements from the Organization
abstract knowledge base.
 Effort  Pay
 Knowledge Worker Employment Issues
 Ability  Job Security
 Unique working arrangements and performance motivation requirements
 Loyalty  Benefits
 Specifically (individually) tailored compensation packages
 Skills  Career Opportunities
Offshoring and Outsourcing  Time  Status
 Competencies  Promotion Opportunities
 Outsourcing – The practice of hiring other firms to do work previously
performed by the organization itself
 Advantages of Outsourcing
 Helps firms to focus on core activities
 Lowers labor costs through exportation of work
 Disadvantages of Outsourcing
 Disaffected employees: out-of-job workers are used train the newly-hired
foreign replacements
 Reduction of domestic job opportunities
 Offshoring
 The practice of outsourcing workers to other countries to lower labor
costs
 Results in loss of jobs in home country – Controversial issue

Temporary and Contingency Workers

 Contingency Worker – person who works for an organization on something
other than a permanent or full-time basis.
 Independent contractors, on-call workers, temporary employees (usually
hire through outside agencies), and contract and lease employees.

Chapter 3: Individual Characteristics
PEOPLE IN ORGANIZATION
Individual Differences
 Personal attributes that may vary from one person to another
 Physical, psychological and emotional differences
The Concept of Fit
 Person-Job Fit
 The extent to which the contributions made by the individual match the
inducements offered by the organization
 Dimensions to fit: Intelligence, Job-related skills, Job knowledge,
Previous work experience, Personality related to performing job tasks
 Fit between a person’s abilities and the demands of the job, and the fit
between a person’s desires and motivation and the attributes and rewards
of a job.
 Person-Group Fit
 Does the employee fit the work group including the supervisor?
 Dimensions to fit: teamwork skills, knowledge and ability relative to
other team members, conflict management style, preference for
teamwork, communication skills, personality related to working well
with others.
 the extent to which an individual fits with the workgroup’s and
supervisor’s work styles, skills, and goals
 Person-Organization Fit
 Do the individual’s values, beliefs, and personality fit the values, norms,
and culture of organization?
 Dimensions to fit: alignment between personal motivations and the
organization’s culture, mission and purpose values, goals
 Fit between an individual’s values, beliefs, and personality and the
values, norms, and culture of the organization
 Person-Vocation Fit
 Do the person’s interests, abilities, values, and personality fit his or her
occupation.
 Dimensions to fit: aptitudes, interests, personal values, long-term goals
 Fit between a person’s interest, abilities, values, and personality and a
profession.
Realistic Job Previews
 Presentation of both positive and potentially negative information to job
candidates.
 Goal is not to deter candidates, but to:
 Provide accurate information about job and organization
 Build trust
 Reduce turnover (especially from employees who quit because the job
wasn’t what they expected)
PERSONALITY AND INDIVIDUAL BEHAVIOR
 Personality – relatively stable set of psychological attributes that distinguishes
one person from another.
 Nature vs. nurture
The “Big Five” Framework
 Agreeableness – ability to get along with others
 Friendly/compassionate vs. challenging/detached
 Conscientiousness – ability to be counted on to get things done
  Efficient/organized vs. easy-going/careless the essentials. find it difficult to complete them
 Neuroticism – experiencing anger, anxiety, moodiness/insecurity  They develop plans and follow  Deadlines are meant to be
 Sensitive/nervous vs. secure/confident them, adhering to deadlines. stretched.
 Extraversion – comfort level with relationships
 Outgoing/energetic vs solitary/ reversed 
 Openness – capacity to entertain new ideas and to change as a result of new
information.
 Incentive/curious vs. consistent/cautious

Sixteen personality classifications result from the higher and lower positions of the
general dimensions

Myers-Briggs Framework
Extroversion
 Energized by things and people.
 There are interactors and “on the
fly” thinkers whose motto is
“ready, fire, aim”
Sensing
 People who are detailed oriented
 They want and trust facts
Thinking
 Thinkers value fairness, and
decide things impersonally based
on objective criteria and logic
Judging
 Decisive and tend to plan.
 Focus on completing tasks, take
action quickly, and want to know
Introversion
 Find energy in ideas, concepts,
abstractions.
 They can be social, but also need
quiet time to recharge their
batteries.
 Reflective thinkers whose motto
is “ready, aim, aim”
Intuitive
 Seek out patterns and
relationships among the facts
they have learned.
 Trusts their intuition and look for
the “big picture”
Feeling
 Value harmony, and focus on
human values as they make
decisions or judgements.
Perceiving
 Adaptable, spontaneous, and
curios.
 They start many tasks, and often
 Myers-Briggs Type Indicator (MBTI) is a popular questionnaire used to assess
personality types
 Communications styles
 Interaction preferences
OTHER IMPORTANT PERSONALITY TRAITS
 Locus of Control – The extent to which a person believes her circumstances
are a function of either her own actions or of external factors beyond her
control
 People who believe that individuals are in control of their loves are said
to have an internal locus of control.
 Authoritarianism – The belief that power and status differences are appropriate
within hierarchical social systems such as organizations
 Machiavellianism – trait causing a person to behave in ways to gai power and
control the behavior of others.
 Named after Niccolo Machiavelli – explained how nobility could easily
gain and use power.
 Tolerance for Risk (Risk Propensity) – The degree to which a person is
willing to take chances and make risky decisions
 Tolerance for Ambiguity – The tendency to view ambiguous situations as
either threatening or desirable
 Self-Efficacy – confidence in his or her ability to organize and execute the
courses of action necessary to accomplish a specific task.
  General Self-Efficacy :reflects a generalized belief that we will be  Intrapersonal: Self-awareness
successful at whatever challenges or tasks we might.
 Self-Esteem – Feelings of self-worth and liking or disliking oneself Emotional Intelligence
 The ability to perceive and express emotions, to understand and use them, and
Type A and B traits
to manage emotions in oneself and other people
 Dimensions of EQ
Type A Type B
 Self-awareness: being aware of what you’re feeling
 Impatient, competitive,  More relaxed and easy going and
 Self-motivation: persisting through obstacles, setbacks
ambiguous, and uptight less overly competitive than type
 Self-management: managing your own emotions and impulses
 More competitive A
 Empathy: sensing how others are feeling
 More devoted to work  Less competitive
 Social skills: effectively handling emotions of others
 Stronger sense of time urgency  Less devoted to work
 Weaker sense of time urgency.
LEARNING STYLES
The Bullying Personality  Refers to individual differences and preferences in how we process
 Workplace bullying – repeated mistreatment of another employee through information when problem solving, learning, or engaging in similar activities.
verbal abuse; conduct that is threatening, humiliating, or intimidating; or
sabotage that interferes with the other person’s work. Sensory Modalities
 Machiavellianism may lead to bullying.  System that interacts with the environment through one of the basic sense
 Visual: learning by seeing
INTELLEGENCE  Auditory: learning by hearing
 Tactile: learning by touching
General mental ability  Kinesthetic: learning by doing
 General mental ability - the capacity to rapidly and fluidly acquire, process,
and apply information. Learning Style Inventory (by David
 Involves reasoning, remembering, understanding, and problem solving. Kolb)
 Information processing capacity - the manner in which individuals process and  Convergers
organize information  Active experimentation
 affects task learning, performance, and ability to process and organize and abstract
information efficiently conceptualization
 positively affected by general mental ability  Superior in technical
tasks and problems;
Multiple Intelligence (Gardner’s Theory) inferior in interpersonal
 Suggest that there are number of distinct forms of intelligence that each learning settings
individual possess in varying degrees.  Divergers
 Linguistic: Words and language  Concrete experience and reflective observation
 Logical: Mathematical Logic and numbers  Alternative hypotheses and ideas, and tend to be imaginative and
 Musical: Music, rhythm, and sound people/feeling oriented.
 Bodily: Kinesthetic Body movement and control  Assimilators
 Spatial: Visual Images and space  Abstract conceptualization and reflective observation
 Interpersonal: Other people’s feelings  Logical soundness and preciseness of ideas.
  Accommodators
 Mainly active experimentation and concrete experience
 Focus on risk taking, opportunity seeking and action
 Action oriented job: marketing and sales.

Learning Style Orientations

 Discovery Learning: inclination for exploration during learning
 Subjective assessments, interactional activities, informational methods,
and active-reflective activities.
 Experiential learning: desire for hands on approaches to instructions
 Positively related to a preference for action activities.
 Observational learning: preference for external stimuli such as demonstrations
and diagrams to help facilitate learning
 Positively related to preference for informational methods and active-
reflective methods.
 Group Learning: preference to work with others while learning
 Related to preferences for action and interactional learning.

Chapter 4: Individual Values, Perceptions. and Reactions

ATTITUDES IN ORGANIZATIONS
 Attitudes – complexes of beliefs and feelings that people have about specific
ideas, situations, or other people.
 Mechanism through which most people express their feelings.
How attitudes are formed "live for today" than to "save for tomorrow.“ In other words, he could tell
 Cognition: the knowledge a himself that a short life filled with smoking and sensual pleasures is better than
person presumes to have a long life devoid of such joys. In this way, he would be decreasing the
importance of the dissonant cognition (smoking is bad for one's health).
about something
 Knowledge may be  Seek additional information to better reason that the benefits of one of the
true, partially true, or conflicting attitudes or behaviors outweigh the costs of the other (For example,
totally false. thinking smoking causes lung cancer will cause dissonance if a person smokes.
 Affect or Emotion: a However, new information such as “research has not proved definitely that
person’s feelings toward smoking causes lung cancer” may reduce the dissonance.)
something
Key Work-Related Attitudes.
 Similar to emotion – something over which we have little or no conscious  Job Satisfaction – reflects our attitudes and feelings about our job
control  The extent to which a person is gratified or fulfilled by his or her work.
 Intention: a component of an attitude that guides a person’s behavior  Influenced be: work itself, personality, attitudes, and values
 Some attitudes, are their corresponding intentions, are much more central  Organizational Commitment – reflects the degree to which an employee
and significant to an individual that others identifies with the organization and its goals wants to stay with the
organization. (a person’s identification with and attachment to an organization)
Cognitive Dissonance  Affective Commitment: positive emotional attachment to the
organization and strong identification with its values and goals.
 an incompatibility or conflict between behavior and an attitude or between two
 Normative Commitment: feeling obliged to stay with an organization for
different attitudes.
moral and ethical reasons
 The anxiety a person experiences when her behavior contradicts her attitudes
 Continuance Commitment: staying with and organization because of
or when she simultaneously holds two contradictory attitudes.
perceived high economic (taking another job would mean losing valuable
 For example, when people smoke (behavior) and they know that smoking stock options) and/or social costs (friendships with coworkers) involved
causes cancer (cognition), they are in a state of cognitive dissonance. with leaving.
 Some people are aware with dissonance and make a conscious decision to not  Employee Engagement -heightened emotional and intellectual connection that
reduce it – influence by these things: an employee has for his/her job, organization, manager, or coworkers that, in
 Your perception of the importance of the elements that are creating the turn, influences him/her to apply additional discretionary effort to his/her
dissonance. work.
 The amount of influence you feel you have over these element.
 The rewards involved in the dissonance. VALUES AND EMOTIONS IN ORGANIZATION
 Values – ways of behaving or end-states that are desirable to a person or to a
Attitude change group. (conscious or unconscious)
 Attitudes are not stable as personal attributes
 Object of an attitude changes, a person’s attitude toward that object may also Types of Values
change. Terminal Values Instrumental Values
 Object of the attitude becomes less important or less relevant to the person Reflect our long-term life goals, and Preferred by means of achieving our
 Changes their attitudes as a way to reduce cognitive dissonance may include prosperity, happiness, a terminal values or our preferred ways
secure family, and a sense of of behaving.
How to reduce cognitive dissonance? accomplishment (Responsible, independent, capable)
 Change the conflicting attitude/behavior Intrinsic Work Values Extrinsic Work Values
Related to work itself. Related to the outcomes of doing work.
 Reason that one of the conflicting attitudes or behaviors is not important in this (Helping others, doing challenging (high earnings, recognition and job
context (For Example, A person could convince themselves that it is better to work, and being an exemplary leader) security)

Conflict among Values
 Intrapersonal value conflict – between the instrumental value of ambition and
the terminal value of happiness.
 Interpersonal value conflict – occur when two different people hold conflicting
values.
 Cause personality clashes and other disagreements.
 Individual-organization value conflict – when an employee’s values conflict
with the values of the organization.
How Values differ around the World
Two Major Dimensions
 Traditional vs secular-rational values
 reflects the contrast between societies in which religion is very important
and those in which it is not.
 Societies near the traditional pole emphasize the importance of parent-
child ties and deference to authority, along with absolute standards and
traditional family values, and reject divorce, abortion, euthanasia, and
suicide.
 These societies have high levels of national pride, and a nationalistic
outlook.
 Societies with secular-rational values have the opposite preferences on all
of these topics
 Survival vs self-expression values:
 reflects the contrast between societies that emphasize economic and
physical security (ethnocentric outlook and low levels of trust and
tolerance) vs those that emphasize subjective well-being, self-expression,
and quality of life.
 Self-expression values give high priority to environmental protection,
tolerance of diversity and rising demands for participation in decision
making in economic and political life.
The Role of Emotions in Behavior
 Emotions – intense, short-term physiological, behavioral, and psychological
reactions to a specific object, person, or event that prepare us to respond to it.
 Four important elements
 Emotions are short events or episodes: relatively short-lived.
 Emotions are directed at something or someone. – this differentiates
emotions from mood, which are short-term emotional states that are not
directed toward anything in particular.
 Emotions are experience.
 Emotions create a state of physical readiness through physiological
reactions.
Affect and Mood
 Mood – short-term emotional states that are not directed toward anything in
particular.
 Affectivity – represents our tendency to experience a particular mood or to
react things with certain emotions.
 Positive affect – reflects a combination of high energy and positive
evaluation characterized by emotions like elation. (upbeat and optimistic,
overall sense of well-being, seeing things in a positive light)
 Negative affect – feelings of being upset, fearful, and distressed.
(downbeat and pessimistic, seeing things in a negative way, seeming to
be in a bad mood)
 Not opposites rather dimensions.
PERCEPTION IN ORGANIZATION
 Perception – set of processes by which an individual becomes aware of and
interprets information about the environment
Basic Perceptual Processes:
 Selective perception: screening out information that we are uncomfortable
with or that contradicts our beliefs
 Stereotyping: categorizing or labeling people on the basis of a single attribute.
 certain forms of stereotyping can be useful and efficient
Errors in Perception
 Categorization – tendency to put things into groups and then exaggerate the
similarities within and the differences among the groups
 Halo effect – forming a general impression of something or someone based on
a single characteristic
 Contrast effect – evaluating someone by comparing them with recently-
encountered people
 Projection – seeing one’s own characteristics in others
 First impression bias – inability to let go of first impressions, particularly
negative ones
Our impressions and expectation of other can become self-fulfilling prophecies.
Perception and Attribution
 Attribution – refers to the way we explain the cause of our own as well as
other people’s behaviors and achievements, and understand why people do
what they do.
 Are they due to the individual because of internal factors such as effort
and ability?
 Or are they due to the environment because of external factors such as
luck, resources, and other people?
 Three rules we use to determine internal vs external attribution
  Consistency: has he person regularly behaved this way or experience this
outcome in the past?
 Distinctiveness: does the person act the same way or receive similar
outcomes in different types of situations?
 Consensus: would others behave similarly in the same situation or
receive the same outcome?
 Self-Handicapping - People create obstacles for themselves that make success
less likely
 Obstacles provide external explanation for failure, thereby preserving
one’s sense of self- competence.
Perception and Fairness, Justice and Trust
 Organizational Fairness – employees’ perceptions of organizational events,
policies, and practices as being fair or not fair.
 Forms of Organizational Fairness
 Distributive fairness - perceived fairness of the outcome received
(resource distributions, promotions, hiring and layoff decisions and
raises)
 Procedural fairness – addresses the fairness of the procedures used to
generate outcome.
 Interactional fairness: whether the amount of information about the
decision and the process was adequate, and the perceived fairness of the
interpersonal treatment and explanations received during the decision-
making process.
 Intrapersonal fairness: perceived degree to which people are treated
with respect by those who execute procedures or determine
outcomes.
 Informational fairness: perceived extent to which employees receive
adequate explanations about decisions affecting their work lives.
Perception and Trust
 Trust – expectation that another person will not act to take advantage of us
regardless of our ability to monitor or control them.
STRESS IN ORGANIZATIONS
Nature of Stress
 Stress – person’s adaptive response to a stimulus that places excessive
psychological or physical demands on him or her.
 Notion of adaption
 Role of stimulus
 Stressors can be either psychological or physical
 Demands the stressor places on the individual must be excessive for
stress to actually result.
The Stress Process (Jańos Hugo Bruno “Hans” Selye)
 General Adaptation Syndrome (GAS) - Identifies three stages of response to a
stressor: alarm, resistance, exhaustion
 Stage 1 (Alarm): person may feel some degree of panic and begin to
wonder how to cope. --- fight or flight question.
 Stage 2 (Resistance): stressor is extreme, the person may unable to cope
up with it. – individual gathers his or her strength
(physically/emotionally) and begins to resist the negative effects of the
stressor.
 Person is resisting the effects of the stressor
 Stage 3 (exhaustion): prolonged exposure to stressor without resolution
may bring on phase 3.
 At this stage person literally gives up and can no longer fight the
stressor.
Sources of stress
 Eustress: pleasurable stress accompanying positive events
 Lead to a number of positive outcome
 Distress: unpleasant stress accompanying negative events
 What most people think of when they hear the word stress.
Causes and Consequences of Stress
 Most Common Causes of Stress
 Organizational stressors
 Life stressors (life change/life trauma)
 Most Common Consequences of Stress
 Individual consequences
 Organizational consequences
 Organizational Stressors – various factors in the workplace that can cause
stress.
 Task Demands: Associated with the specific job a person performs
 Physical Demands: Associated with the job’s physical setting and
requirements
 Role Demands: Associated with the expected behaviors of a particular
position in a group or organization
 Interpersonal Demands: Group pressures, leadership, personality
conflicts
Consequences of Stress
 Individual Consequences
 Behavioral – stress may harm the person under stress or others
 Psychological – stress relate to a person’s mental health and well-being
 Medical – stress affect a person’s physical well-being
  Stress management, health promotion, employee fitness programs,
 Organizational Consequences career development
 Performance
 Withdrawal Balancing Work-Life Linkages
 Attitudes  Fundamental Work-Life Relationships – Interrelationships between a person’s
 Burnout – general feeling of exhaustion that develops when an individual work life and personal life
simultaneously experiences too much pressure and has too few sources of  Balancing Work-Life Linkages
satisfaction.  Importance of long-term versus short-term perspectives
 Significance of evaluating tradeoffs between values
Managing and Controlling Stress
 Stress Management Tips
 Eat healthy and avoid too much caffeine
 Get enough high-quality sleep, take nap if necessary
 Exercise
 Practice relaxation techniques including meditation
 Develop affectionate relationship
 Prioritize your to-do list
 Learn to say no
Chapter 5: Motivating Behavior
Individual Coping Strategy
THE NATURE OF MOTIVATION
 Motivation – set of forces that causes people to engage in one behavior rather
exercise than some alternative behavior.

Importance of Motivation
time
relaxation
management  P = performance of the employee
 M = motivation: employee must want to do the job well
 A = ability: must be able to do job efficiently
 E = environment: must have the materials, resources, equipment and
information required to do the job.
role support
management groups The Motivational Framework
 Need – something an individual requires or wants.
 Need deficiency: triggers attempts to satisfy the need
 Goal-directed behaviors result from individuals trying to satisfy their need
Organizational Coping Strategy deficiencies
 Institutional programs  Rewards and punishments are consequences of the goal-directed behavior
 Design of work and schedule be focus of organizational effort to reduce  Reassessment of need deficiency occurs after the person assesses the extent to
stress. which the outcome addressed the original need deficiency
 Fostering a healthy work culture
 Supervision
 Collateral programs
 Organizational programs specifically created to help employees deal with
stress
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The ERG Theory

Early Perspective on Motivation

 The Traditional Approach – “Scientific Management” (Frederick Taylor)
assumes that employees are motivated solely by money
 The Human Relations Approach – assumed that employees want to feel useful
and important, that employees have strong social needs, and that these needs
are more important than money in motivating employees.
 The Human Resource Approach - Assumes people want to make genuine
contributions
 Human relationist believed that feelings of contribution and participation
would enhance motivation.
Individual Differences and Motivation
 Task-specific self-efficacy: a person’s belief in his or her capabilities to do
what is required to accomplish on a specific tasks.
 Magnitude: beliefs about how difficult a specific task can be
accomplished
 Strength: beliefs about how confident the person is that the specific task
can be accomplished
 Generality: beliefs about the degree to which similar tasks can be
accomplished.
NEED-BASED PERSPECTIVES ON MOTIVATION
 Need-based theories: assume the need deficiencies cause behavior
 Hierarchy of Needs (by Abraham Maslow)
 Physiological needs: food, sex, and air
 Security needs: things that offer safety and security - Adequate housing and
clothing and freedom from worry and anxiety
 Belongingness needs: need for love and affection, need to be accepted by peers
– primary social
 Esteem needs: need for positive self-image and self-respect and the need to be
respected by others.
 Self-actualization needs: involve a person’s realizing his or her full potential
and becoming all that he/she can be.
 Describe existence, relatedness, and growth needs.
 Existence: necessary for human survival
 Relatedness: involving the need to relate to others
 Growth: need for self-actualization and self-esteem.
 Satisfaction-progression: after satisfying one category of needs, a person
progresses to the next level.
 Frustration-progression: person who is frustrated by trying to satisfy a higher
level of needs eventually will progress to the preceding level.
The Two-Factor Theory
 Herzberg’s Two-Factor (Dual-Structure) Theory – Assumes that motivation, as
a construct, has two separate dimensions:
 Motivation factors which affect satisfaction
 Intrinsic to the work itself and include factors such as achievement
and recognition.
 Achievement, recognition, and the opportunity to plan and control
(primary causes of satisfaction and motivation)
 Hygiene factors which determine dissatisfaction
 Response to the questions about dissatisfaction and lack of
motivation.
 Assumes motivation occurs through job enrichment once hygiene factors are
addressed
 Identifies motivation factors, which affect satisfaction, and hygiene factors
which determine dissatisfaction.
 Criticisms:
 May be both method and culture bound
 Fails to account for individual differences
 Factors (e.g., pay) may affect both dimensions

The Acquired Needs Framework ( McClelland)
 The Need for Achievement - desire to accomplish a task or goal more
effectively than was done in the past
 The Need for Affiliation - need for human companionship
 The Need for Power - desire to control the resources in one’s environment
PROCESS-BASED PERSPECTIVE ON MOTIVATION
 Focus on how people behave in their efforts to satisfy their needs.
 Concerns organizational rewards are reward system
 Formal – organizational rewards are more equity observable than “informal”
rewards
 Equity offers three messages
 Everyone in the organization needs to understand the basis for rewards.
 People tend to take a multifaced view of their rewards; they perceive and
experience a variety of rewards some are tangible and others are
intangible.
 People base their actions on their perceptions.

The Equity Theory of Motivation The Expectancy Theory of Motivation

 Focuses on people’s desire to be treated with what they perceive as equity and  Suggest that people are motivated by how much they want something and the
to avoid perceived inequity. likelihood they perceive of getting it.
 Equity: belief that we are being treated fairly.  a.k.a VIE theory
 Inequity: belief that we are being treated unfairly in relation to others.
The Basic Expectancy Model
Forming Equity Perceptions  attempts to determine how individual choose among alternative behaviors
1. They evaluate how they are being treated  basic premise of expectancy theory – motivation depends of how we want
2. They form a perception of how a “comparison-other” is being treated something and how likely we think we are to get it.
3. They compare their own circumstances with those of the comparison-other
and then use this comparison for forming an impression of either equity or
inequity.
4. Depending on the strength of this feeling, the person may choose to pursue
one or more alternatives.

 Input-to-outcome ratio:
 Input: are an individual’s contributions to the organization – such factors
as education, experience, effort and loyalty.
 Outcomes: are what the person receives in return-pay, recognition, social
relationships, intrinsic rewards, and similar things.

Responses to Equity and Inequity  Effort-to-performance expectancy – perceived probability that effort will lead
Comparison of Self with Others to performance
Inequity Equity  Performance-to-outcome expectancy – perceived probability that performance
Motivation to reduce inequity Motivation to maintain current will lead to certain outcomes
 Change inputs situation  Outcome – Anything that results from performing a behavior
 Change Outcomes  Valence – degree of attractiveness or unattractiveness (value) that a particular
 Alter Perceptions of Self outcome has for a person
 Alter Perception of Other
 Change Comparisons The Porter-Lawler Model
 Leave Situation  Focuses on the relationship between satisfaction and performance
 Assumes that:
Evaluation and Implications  If rewards are adequate, high levels of performance may lead to
 Social comparisons clearly are a powerful factor in the workplace satisfaction
  Satisfaction is determined by the perceived equity of intrinsic (intangible)  Cognitive view suggests that people draw on their experiences and
and extrinsic (tangible) rewards for performance. use past learning as a basis for their present behavior.
 Intrinsic rewards are intangible – a feeling of accomplishment, a  People make choices about their behavior
sense of achievement, and so forth  People recognize the consequences on their choices
 Extrinsic rewards are tangible outcomes such as pay and  People evaluate those consequences and add them to prior or
promotion. learning, which affects future choices.
Reinforcement Theory and Learning
 Based on the idea that behavior is a function of its consequences.
 People explore a variety of possible behavior.

Social Learning
 When people observe the behaviors of others, recognize the consequences, and
alter their own behavior as a result.
 Conditions:
 Behavior being observed and imitated must be relatively simple
 Social learning usually involves observed and imitated behavior that is
concrete, not intellectual.
 Social learning to occur, we must possess the physical ability to imitate
the behavior observed.
Evaluations and
Behavior Modifications
Implications
 Application of reinforcement theory to influence the behaviors of the people in
 Because expectancy theory is so complex, it is difficult to apply directly in the
organizational settings.
workplace.
 Fundamental Guidelines Nature of the Stimulus
 Determine the primary outcomes each employee wants Positive Negative
 Decide what levels/kinds of performance are needed to meet Present the Positive reinforcement; Punishment; decreases
organizational goals Action stimulus increases the behavior the behavior
 Make sure the desired levels of performance are possible Remove the Extinction; decreases Negative reinforcement;
 Link desired outcomes and desired performance stimulus the behavior increases the behavior
 Analyze the situation for conflicting expectancies
 Make sure the rewards are large enough  Positive reinforcement – involves the use of rewards to increase the likelihood
 Make sure the overall system is equitable for everyone that a desired behavior – high performance, for instance – will be repeated.
 Negative reinforcement (avoidance) – based on the removal of current or
LEARNING-BASED PERSPECTIVE ON MOTIVATION future unpleasant consequences to increase the likelihood that someone will
 Learning - relatively permanent change in behavior or behavioral potential repeat a behavior
resulting from direct or indirect experience  Avoidance, or removal of something undesirable can be motivating
 Punishment – application of negative outcomes to decrease the likelihood of
How Learning Occurs behavior
 Traditional View: Classical Conditioning  Extinction – involves the removal of reinforcement (positive or negative)
 A simple form of learning that links a conditioned response with an following the incidence of the behavior to be extinguished to decrease the
unconditioned stimulus likelihood of that behavior being repeated.
 Contemporary View: Learning as a Cognitive Process
 Assumes people are conscious, active participants in how they learn The Timing of Reinforcement
  Continuous Reinforcement – schedule is one in which the desired behavior is
reinforce each time that it occurs
 Partial Reinforcement – schedule if one in which the desired behavior is
reinforced only part of the time.
 Fixed-ratio: desired behavior is reinforced after a specific number of
correct responses.
 Fixed-interval: desired behavior is reinforced after a certain amount of
time has passed
 Variable-ratio: desired behavior is reinforced after an unpredictable
number of behaviors
 Variable-interval: desired behavior is reinforced after an unpredictable
amount of time has elapsed.

JOB DESIGN IN ORGANIZATION

 Job design – defined as how organizations define and structure jobs.

Job Specialization
 Jobs should be scientifically studied, broken down into small component tasks,
and then standardized across all workers doing those jobs
 Follows Adam Smith’s concept of the division of labor
 Rational and efficient way to structure jobs
 Jobs designed for efficiency can become boring and monotonous, resulting in
job dissatisfaction

Basic Alternatives to Job Specialization

 Job Rotation – systematically moving workers from one job to another in an
attempt to minimize monotony and boredom. – sustain their motivation and
interest
 Specialization of each tasks – broken down into small parts.
 Does not entirely address issues of monotony – may decrease efficiency
 Job Enlargement (horizontal job loading) – giving workers more tasks to
perform
 Job Enrichment (vertical job loading) – giving workers more tasks to perform
and more control over how to perform them.
Chapter 6: Motivating Behavior with Work and Rewards
Job Characteristics Theory
 Use five motivational properties of tasks and three critical psychological to
improve outcomes.
 Focuses on the specific motivational properties of jobs

 Experienced meaningfulness of the work – meaningful, valuable, and
worthwhile
 Experienced responsibility for work outcome – feel personally accountable
and responsible
 Knowledge of results – continuously understand how effectively they are
performing the job.
 Skill Variety – activities that involve different skills
 Task Identity – completion of a “whole” and an identifiable piece of work; --
job has a beginning and an end with a tangible outcome
 Task Significance – job affects the lives or work of other people, both in the
immediate organization and in the external environment.
 Autonomy – allows the individual substantial freedom, independence, and
discretion to schedule the work and determine the procedures for carrying it
out.
 Feedback – job activities give individual direct and clear information about
effectiveness of his or her performance.
EMPLOYEE PARTICIPATION AND INVOLVEMENT
 Participation – giving employees a voice in making decisions about their own
work
 Empowerment – enabling workers to set their own work goals, make
decisions, and solve problems within their sphere of responsibility and
authority
Areas of Employee Participation
 Personal job-related decisions
 Administrative matters (e.g., work schedules)
 Product quality decisions
Approaches to Participation and Empowerment
 Empowerment through work teams (quality circles)
 Meet regularly to identify and propose solutions to problems related to
quality (plan, organize, direct and control)
 Decentralization of decision-making and increased delegation
 Some organizations use to facilitate employee involvement is to change
their overall method of organization
 Technology also helps organizations empower workers by making better and
timelier information available to everyone in the organization.
 Empowerment only enhances organizations when
 Committed to maintain participation and empowerment
 Must be systematic and patient in its efforts to empower workers
 Must be prepared to increase its commitment to training.
FLEXIBLE WORK ARRANGEMENTS
 Intended to enhance employee motivation and performance by giving workers
more flexibility about how and when they work.
Variable Work Schedules
 Compressed work schedule
 Employees work a 40-hour week in fewer than 5 days
 Ninety-eighty schedule – employee works a traditional schedule one week and
a compressed schedule the next, getting every other Friday off.
 Job sharing – two part-time employees share one full-time job.
Extended work schedule
 Employees work for relatively long periods of work followed by relatively
long periods of paid time off
Flexible work schedule (flextime)
 Give employees more personal control over the hours they work each day
 Employees gain more control over hours worked daily
 Broken down into two categories: flexible time and core time.
Alternative Workplaces
 Telecommuting – work arrangement in which employees spend all or part of
their time working off-site.
 Reduce absenteeism and turnover will need to take less “formal” time
off.
 Can save facilities such as parking spaces because fewer people will be at
work on any given day. – also environmental benefits
  Although, some may feel isolated and miss the social interaction of the
workplace.
GOAL SETTING AND MOTIVATION
 Goal – a meaningful objective
 Provide a useful framework for managing motivation
 Effective control device.
Goal-Setting Theory
 Provide insights into why and how goals can motivate behavior.
 Help us understand how different people cope with failure to reach their goals.
 Locke: Assumes that behavior is a result of conscious goals and intentions,
therefore goals influence behavior (performance)
Goal Difficulty
 Extent to which a goal is challenging and requires effort
Goal Setting Challenges
 Research has shown that:
 Goal difficulty and specificity are closely associated with performance
 Goal-setting theory may focus too much on short-run considerations
 MBO has the potential to motivate because it helps implement goal-
setting theory on a systematic basis throughout the organization
 Often an effective and useful system for managing goal setting and
enhancing performance in organizations
 Can also be effective approach to managing an organization’s reward.
 MBO’s pitfalls
 MBO has a tendency to overemphasize quantitative goals to enhance
verifiability
 System requires a great deal of information processing and record
keeping since every goal must be documented.
 Some managers do not really let subordinates participate in goal setting
but instead merely assigned goals and order subordinates to accept them.

Goal Specificity PERFORMANCE MANAGEMENT

 Clarity and precision of the goal  Performance appraisal – process of assessing and evaluating an employee’s
work behaviors by measurement.
Goal Acceptance  Evaluates an employee’s work behaviors by management and
 Extent to which a person accepts a goal as his or her own. comparison with previously established standards
 Document the results
Goal Commitment  Communicates the results to the employee
 Extent to which he or she is personally interested in reaching the goal.  Performance management comprises the process and activities involved
in performance appraisals.

Purposes of Performance Measurement

 Provide valuable feedback
 Decide and justify reward allocation
 Data produced by the performance appraisal system can be used to forecast
future human resource needs, to plan management succession, and to guide
other human resource activities such as recruiting, training, and development
programs.
Basic Purpose of Performance Management: Provide Information About Work
Performance
Judgement of Past Performance Development of Future Performance
Broader Perspective on Goal Setting  Provide a basis for reward  Foster work improvement
allocation identify training and
 Management by Objectives (MBO) - A collaborative goal-setting process
through which organizational goals cascade down throughout the organization  Provide a basis for promotions, development opportunities
transfers, layoffs, and so on  Develop ways to overcome
 Requires customizing to each organization
 Identify high-potential obstacles and performance
 Overall goals are communicated to everyone - each manager meets with
employees barriers.
each subordinates.
 Validate selection procedures  Establish supervisor – employee
 Evaluate previous training agreement on expectations.
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Elements of Performance Management
 The Appraiser: Alternatives
 The direct supervisor
 Multiple-rater systems (including self-evaluation)
 360-degree feedback - A system in which people receive performance
feedback from those on all sides of them in the organization (boss,
colleagues, peers, subordinates)
Frequency of Appraisals
 Determined by convenience for administrative purposes, cultural
appropriateness, and relevance
Measuring Performance
 Accurately defining job performance is critical: measuring the wring things
well is not good performance management
 Measurement of method provides the information managers use to make
decisions about salary adjustment, promotion, transfer, training, and discipline.
 Must be free of perceptual and timing errors
 Two major problems
 Tendency to rate most individuals at about the same level
 the inability to discriminate among variable levels of performance
The Balanced Scoreboard Approach to Performance Management
 A relatively structured performance management technique that identifies
financial and nonfinancial performance measures and organizes them into a
single model.
 Core of the BSC is vision and strategy.
 Components: customer perceptions, financial performance, internal
business processes, and innovation and learning.
INDIVIDUAL REWARDS IN ORGANIZATION
 Reward system – consist of all organizational components: people, processes,
rules, and procedures and decision-making activities
 Allocating compensation and benefits to employees in exchange for their
contributions.
Roles, Purposes, and Meanings of Rewards
 Purpose – attract, retain, and motivate qualified employees.
 Must be equitable and consistent to ensure equality of treatment and
compliance with the law.
 System must be competitive in the external labor market for the organization
to attract and retain competent workers in appropriate fields.
 Organization needs to decide what types of behaviors they encourage
 Intrinsic and extrinsic value
 Surface value – objective meaning or worth of reward
 Symbolic value – subjective and personal meaning or worth of a reward
Types of Rewards
 Compensation package – total array of money (wages, salary, commissions),
incentives, benefits, prerequisites, and awards provided by the organization to
an individual.
 Incentive Pay Systems – Plans in which employees can earn additional
compensation in return for certain types of performance
 Piecework programs – earnings based on number of units produced
 Gain-sharing programs – additional earnings to employees or workgroups
for cost-reduction ideas
 Bonus systems – lump-sum payments from a special fund based on the
financial performance
 Long-term compensation – gives manager additional income based on
stock price performance, earnings per share, or return on equity.
 Merit pay plans – base pay raises on the employee’s performance
 Profit-sharing plans – distribute a portion of the firm’s profit to all
employees at a predetermined rate.
 Employee stock option plans – set aside stock in the company for
employees to purchase at a reduced rate.
 Indirect Compensation – employee benefits provided as a form of
compensation
 Payment for time not worked
 Social Security contributions
 Unemployment compensation – people who have lost their jobs or are
temporarily laid off
 Disability and workers’ compensation benefits 5. Life and health
insurance programs
 Pensions or retirement plans
Prerequisites
 Special privileges awarded to selected members of an organization, usually top
managers.
 Add to the status of their recipients and this may increase job satisfaction and
reduce turnover.
Awards
 Employees receive award for everything from seniority to perfect attendance,
from zero defects (quality work) to cost reduction suggestions.
Related Issues in Rewarding Performance
 Linking performance and rewards – there must be a perception on the part of
the employees that their rewards are linked to their performance.
 Flexible rewards system – allows employees to choose the combination of
benefits that best suits their needs.
 Increases both employee satisfaction with benefits and administrative
costs for the employer.
 Participative Pay Systems – participative pay system may involve the
employee in the system’s design, administration or both.
 Expatriate Compensation - compensation packages of employees on overseas
assignments must be designated to account for differences in costs of living
and working conditions in working abroad versus their home base.
 Pay Secrecy – employer makes no information available to employees
regarding other employees’ salaries, percentage raises, salary ranges and
requires employees to not reveal their compensation.