Professional Documents
Culture Documents
Why Study Organizational Behavior? Basic Management Functions and Organizational Behavior
Become a better employee Planning - determining an organization’s desired future position and the best
Become a better manager means of getting there.
Understand how people behave and why they do what they do Includes studying and analyzing the environment, deciding on
Organizations that successfully implement OB principles have: appropriate goals, outlining strategies for achieving those goals, and
Motivated, engaged employees whose goals align with business strategy developing tactics to help execute the strategies.
Strong leadership and direction – Better bottom lines
Organizing - Designing jobs, grouping jobs into units, and establishing
patterns of authority between jobs and units
Process produces the basic structure, or framework, of the organization.
C onceptual Perspective on
Scientifically select, train, and develop all workers rather than leaving
O rganizational B ehavior
them to passively train themselves. System Perspective
The Business Case for Diversity Inclusive environment is created when all employees’ cultural awareness and
Diversity contributes to a firm’s competitive advantage when it enables all empathy are enhance through diversity training and all employees are given
employees to contribute their full talents and motivation. equal access to mentors and other influential company employees.
Diversity fosters creativity, innovation, and competitive advantage.
Diverse groups can use their diverse backgrounds to develop a more Reciprocal mentoring: pairing senior employees with diverse junior employees
comprehensive view of problem and a broader list of possible solutions. to allow both individuals to learn more about a different group
Culturally diverse teams make better decisions over time than homogeneous
ones Globalization and Business
Globalization: The internationalization of business activities and the shift
Title VII of the Civil Rights Act prohibits discrimination based on race, color, toward an integrated global economy
religion, sex, or national origin
Trends in Globalization / Factors Increasing Globalization Power Distance or Orientation to authority - the extent to which people
Advances in communication and transportation accept as normal an unequal distribution of power
Growth by expansion into international market Uncertainty Avoidance or preference for stability – the extent to which
Control of labor, distribution and distribution costs people feel threatened by unknown situations and prefer to be in clear
Increased international competition 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
Cultural Competence people and overall quality of life
Ability to interact effectively with people of different cultures. Long-term values - a focus on the future, working on projects that have a
Awareness of our own cultural worldview, and of our reactions to people distant payoff, persistence, and thrift
who are different Short-term values – orientation toward the past and the present including
Our attitude toward cultural difference respect for traditions and social obligations
Knowledge of different worldviews and cultural practices
Cross-cultural skills Global Perspective
A willingness to be open and learn from the alternative systems and meanings
Cross-Cultural Differences and Similarities of other people and cultures, and a capacity to avoid assuming the people from
Culture - a set of shared values that help people in a group, organization, or everywhere are the same.
society understand which actions are considered acceptable and which are
deemed unacceptable TECHNOLOGY AND BUSINESS
General Observations Technology - Methods used to create products, including both physical goods
and intangible services. Major driver for other forms of organization change
Cultural and national boundaries may not coincide
The shift toward a service-based economy
Behavior in organizational settings varies across cultures – culture is one
major cause of this variation. The growing use of technology for competitive advantage
Organizations and the way they are structured appear to be growing Mushrooming change in information technology
increasingly similar
Manufacturing and Service Technologies
The same individual behaves differently in different cultural settings
Manufacturing Organization – A form of business that combines or transforms
Cultural diversity can be an important source of synergy in enhancing
resources into tangible outcomes that are then sold to others
organizational effectiveness
Service Organization – One that transforms resources into an intangible
Specific Cultural Issues output; it creates time and place utility for its customers
Geert Hofstede’s Research - Attitudes and behaviors differ significantly
Technology and Competition
because of values and beliefs that characterize different countries.
Technology is the basis of competition of firms whose goals include being the
Hofstede’s Primary Dimensions
technology leaders in their industries.
Individualism – the extent that people in a culture define themselves
Challenges for Technology Leaders
primarily as individuals rather than as part of one or more groups or
organizations. Maintaining a leadership position: technology is the basis of competition
for some firms
Collectivism – the tight social frameworks in which people tend to base
their identities on the group or organization to which they belong Coping with decreasing cycle times
Advances in Information Technology Businesses living and working together for the common good and valuing
Advantages: leaner and more flexible organizations, increased human dignity
collaboration, improved management processes/systems Works best when integrated with the firm’s culture
Disadvantages: less personal communication, less “down time,” an Encompasses concern for employees, the community, and the environment
increased sense of communication and decision-making urgency
Can lead to higher profits and talent acquisition
ETHICS AND CORPORATE GOVERNANCE
Ethics – a person’s beliefs regarding what is right or wrong in a given International Organization for Standardization (ISO) – created variety of
situation. standards that help organizations gain international acceptance of their
practices and outcomes
Framing Ethical Issues Publishes management standards including leadership, customer focus,
How an Organization Treats in Employees – this area includes policies such as involvement of people, and continual improvement.
hiring and firing, wages and working conditions, and employee privacy and This standards can help managers meet their environmental and social
respect. responsibility objectives.
How Employees Treat the Organization – numerical ethical issues also stem
from how employees treat the organization, especially in regard to conflicts of NEW EMPLOYMENT RELATIONSHIPS
interest, secrecy and confidentiality, and honesty.
How Employees and the Organization Treat Other Economic Agents – The Management of Knowledge Workers
managerial ethics come into play in the relationship between the firm and its Employees who add value in an organization simply because of what they
employees with other economic agents. know
The interactions between the organization and these agents may be Computer scientists, physical scientists, engineers, product designers,
subject to ethical ambiguity include advertising and promotions, financial video game developers
disclosures, or ordering and purchasing, shipping and solicitations, Tend to work in high-technology firms and are usually experts in some
bargaining and negotiation, and business relationships. abstract knowledge base.
Knowledge Worker Employment Issues
Ethical Issues in Corporate Governance Unique working arrangements and performance motivation requirements
Corporate Governance – The oversight of a public corporation by its board of Specifically (individually) tailored compensation packages
directors
Governance Issues Offshoring and Outsourcing
Proper management of the business in the best interests of the Outsourcing – The practice of hiring other firms to do work previously
stakeholders performed by the organization itself
Independence of the board from the business Advantages of Outsourcing
Helps firms to focus on core activities
Ethical Issues and Information Technology Lowers labor costs through exportation of work
Information Technology Issues - Individual rights to personal information Disadvantages of Outsourcing
privacy – Abuse of information technology Disaffected employees: out-of-job workers are used train the newly-hired
foreign replacements
Reduction of domestic job opportunities
Offshoring
Social Responsibility
The practice of outsourcing workers to other countries to lower labor PEOPLE IN ORGANIZATION
costs
Results in loss of jobs in home country – Controversial issue Individual Differences
Personal attributes that may vary from one person to another
Temporary and Contingency Workers Physical, psychological and emotional differences
Contingency Worker – person who works for an organization on something
other than a permanent or full-time basis. The Concept of Fit
Independent contractors, on-call workers, temporary employees (usually Person-Job Fit
hire through outside agencies), and contract and lease employees. The extent to which the contributions made by the individual match the
Part time workers inducements offered by the organization
Dimensions to fit: Intelligence, Job-related skills, Job knowledge,
Tiered Workforce Previous work experience, Personality related to performing job tasks
Exists when one group of an organization’s workforce has a contractual Fit between a person’s abilities and the demands of the job, and the fit
arrangement with the organization objectively different from another group between a person’s desires and motivation and the attributes and rewards
performing the same jobs. of a job.
Person-Group Fit
The Changing Nature of Psychological Contracts Does the employee fit the work group including the supervisor?
Psychological Contract Dimensions to fit: teamwork skills, knowledge and ability relative to
A person’s overall set of expectations regarding what he or she will other team members, conflict management style, preference for
contribute to the organization and what the organization, in return, will teamwork, communication skills, personality related to working well
provide to the individual with others.
Legal contract in a less formal and less well defined. the extent to which an individual fits with the workgroup’s and
Not written on a paper, nor are all of its terms explicitly negotiated supervisor’s work styles, skills, and goals
Individuals contribute effort, skills, ability, time, loyalty Person-Organization Fit
Organizations provide inducements in the form of tangible/intangible
rewards Do the individual’s values, beliefs, and personality fit the values, norms,
and culture of organization?
Contributions from the Individual Inducements from the Organization
Effort Pay Dimensions to fit: alignment between personal motivations and the
Ability Job Security organization’s culture, mission and purpose values, goals
Loyalty Benefits
Skills Career Opportunities Fit between an individual’s values, beliefs, and personality and the
Time Status values, norms, and culture of the organization
Competencies Promotion Opportunities
Person-Vocation Fit
Do the person’s interests, abilities, values, and personality fit his or her
Chapter 3: Individual Characteristics
occupation.
Dimensions to fit: aptitudes, interests, personal values, long-term goals
Myers-Briggs Framework
Realistic Job Previews
Extroversion Introversion
Energized by things and people. Find energy in ideas, concepts,
Presentation of both positive and potentially negative information to job
candidates. There are interactors and “on the abstractions.
fly” thinkers whose motto is They can be social, but also need
“ready, fire, aim” quiet time to recharge their
Goal is not to deter candidates, but to:
batteries.
Reflective thinkers whose motto
Provide accurate information about job and organization
is “ready, aim, aim”
Sensing Intuitive
Build trust People who are detailed oriented Seek out patterns and
They want and trust facts relationships among the facts
Reduce turnover (especially from employees who quit because the job they have learned.
wasn’t what they expected) Trusts their intuition and look for
the “big picture”
PERSONALITY AND INDIVIDUAL BEHAVIOR Thinking Feeling
Thinkers value fairness, and Value harmony, and focus on
Personality – relatively stable set of psychological attributes that distinguishes decide things impersonally based human values as they make
one person from another. on objective criteria and logic decisions or judgements.
Nature vs. nurture Judging Perceiving
Decisive and tend to plan. Adaptable, spontaneous, and
The “Big Five” Framework Focus on completing tasks, take curios.
Agreeableness – ability to get along with others action quickly, and want to know They start many tasks, and often
Friendly/compassionate vs. challenging/detached the essentials. find it difficult to complete them
Conscientiousness – ability to be counted on to get things done They develop plans and follow Deadlines are meant to be
them, adhering to deadlines. stretched.
Efficient/organized vs. easy-going/careless
Neuroticism – experiencing anger, anxiety, moodiness/insecurity
Sensitive/nervous vs. secure/confident
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 The Bullying Personality
Workplace bullying – repeated mistreatment of another employee through
Myers-Briggs Type Indicator (MBTI) is a popular questionnaire used to assess verbal abuse; conduct that is threatening, humiliating, or intimidating; or
personality types sabotage that interferes with the other person’s work.
Communications styles Machiavellianism may lead to bullying.
Interaction preferences
INTELLEGENCE
OTHER IMPORTANT PERSONALITY TRAITS
General mental ability
Locus of Control – The extent to which a person believes her circumstances
General mental ability - the capacity to rapidly and fluidly acquire, process,
are a function of either her own actions or of external factors beyond her
and apply information.
control
Involves reasoning, remembering, understanding, and problem solving.
People who believe that individuals are in control of their loves are said
to have an internal locus of control. Information processing capacity - the manner in which individuals process and
Authoritarianism – The belief that power and status differences are appropriate organize information
within hierarchical social systems such as organizations affects task learning, performance, and ability to process and organize
Machiavellianism – trait causing a person to behave in ways to gai power and information efficiently
control the behavior of others. positively affected by general mental ability
Named after Niccolo Machiavelli – explained how nobility could easily
gain and use power.
Multiple Intelligence (Gardner’s Theory)
Tolerance for Risk (Risk Propensity) – The degree to which a person is
willing to take chances and make risky decisions Suggest that there are number of distinct forms of intelligence that each
individual possess in varying degrees.
Tolerance for Ambiguity – The tendency to view ambiguous situations as
either threatening or desirable Linguistic: Words and language
Self-Efficacy – confidence in his or her ability to organize and execute the Logical: Mathematical Logic and numbers
courses of action necessary to accomplish a specific task. Musical: Music, rhythm, and sound
General Self-Efficacy :reflects a generalized belief that we will be Bodily: Kinesthetic Body movement and control
successful at whatever challenges or tasks we might. Spatial: Visual Images and space
Self-Esteem – Feelings of self-worth and liking or disliking oneself Interpersonal: Other people’s feelings
Intrapersonal: Self-awareness
Type A and B traits
Emotional Intelligence
Type A Type B The ability to perceive and express emotions, to understand and use them, and
Impatient, competitive, More relaxed and easy going and to manage emotions in oneself and other people
ambiguous, and uptight less overly competitive than type Dimensions of EQ
More competitive A Self-awareness: being aware of what you’re feeling
More devoted to work Less competitive Self-motivation: persisting through obstacles, setbacks
Stronger sense of time urgency Less devoted to work Self-management: managing your own emotions and impulses
Weaker sense of time urgency. Empathy: sensing how others are feeling
Social skills: effectively handling emotions of others Experiential learning: desire for hands on approaches to instructions
Positively related to a preference for action activities.
LEARNING STYLES Observational learning: preference for external stimuli such as demonstrations
Refers to individual differences and preferences in how we process and diagrams to help facilitate learning
information when problem solving, learning, or engaging in similar activities. Positively related to preference for informational methods and active-
reflective methods.
Sensory Modalities Group Learning: preference to work with others while learning
System that interacts with the environment through one of the basic sense Related to preferences for action and interactional learning.
Visual: learning by seeing
Auditory: learning by hearing
Tactile: learning by touching
Kinesthetic: learning by doing
Attitude change
Attitudes are not stable as personal attributes
Chapter 4: Individual Values, Perceptions. and Reactions Object of an attitude changes, a person’s attitude toward that object may also
change.
ATTITUDES IN ORGANIZATIONS Object of the attitude becomes less important or less relevant to the person
Attitudes – complexes of beliefs and feelings that people have about specific Changes their attitudes as a way to reduce cognitive dissonance
ideas, situations, or other people.
Mechanism through which most people express their feelings. How to reduce cognitive dissonance?
Change the conflicting attitude/behavior
How attitudes are formed
Cognition: the knowledge a Reason that one of the conflicting attitudes or behaviors is not important in this
person presumes to have context (For Example, A person could convince themselves that it is better to
about something "live for today" than to "save for tomorrow.“ In other words, he could tell
Knowledge may be himself that a short life filled with smoking and sensual pleasures is better than
true, partially true, or a long life devoid of such joys. In this way, he would be decreasing the
totally false. importance of the dissonant cognition (smoking is bad for one's health).
Affect or Emotion: a
person’s feelings toward Seek additional information to better reason that the benefits of one of the
something conflicting attitudes or behaviors outweigh the costs of the other (For example,
Similar to emotion – something over which we have little or no conscious thinking smoking causes lung cancer will cause dissonance if a person smokes.
control However, new information such as “research has not proved definitely that
Intention: a component of an attitude that guides a person’s behavior smoking causes lung cancer” may reduce the dissonance.)
Some attitudes, are their corresponding intentions, are much more central
and significant to an individual that others Key Work-Related Attitudes.
Job Satisfaction – reflects our attitudes and feelings about our job
Cognitive Dissonance The extent to which a person is gratified or fulfilled by his or her work.
an incompatibility or conflict between behavior and an attitude or between two Influenced be: work itself, personality, attitudes, and values
different attitudes. Organizational Commitment – reflects the degree to which an employee
The anxiety a person experiences when her behavior contradicts her attitudes identifies with the organization and its goals wants to stay with the
or when she simultaneously holds two contradictory attitudes. organization. (a person’s identification with and attachment to an organization)
For example, when people smoke (behavior) and they know that smoking Affective Commitment: positive emotional attachment to the
causes cancer (cognition), they are in a state of cognitive dissonance. organization and strong identification with its values and goals.
Some people are aware with dissonance and make a conscious decision to not Normative Commitment: feeling obliged to stay with an organization for
reduce it – influence by these things: moral and ethical reasons
Your perception of the importance of the elements that are creating the Continuance Commitment: staying with and organization because of
dissonance. perceived high economic (taking another job would mean losing valuable
The amount of influence you feel you have over these element.
stock options) and/or social costs (friendships with coworkers) involved These societies have high levels of national pride, and a nationalistic
with leaving. outlook.
Employee Engagement -heightened emotional and intellectual connection that Societies with secular-rational values have the opposite preferences on all
an employee has for his/her job, organization, manager, or coworkers that, in of these topics
turn, influences him/her to apply additional discretionary effort to his/her Survival vs self-expression values:
work. reflects the contrast between societies that emphasize economic and
physical security (ethnocentric outlook and low levels of trust and
VALUES AND EMOTIONS IN ORGANIZATION tolerance) vs those that emphasize subjective well-being, self-expression,
Values – ways of behaving or end-states that are desirable to a person or to a and quality of life.
group. (conscious or unconscious) Self-expression values give high priority to environmental protection,
tolerance of diversity and rising demands for participation in decision
Types of Values making in economic and political life.
Terminal Values Instrumental Values
Reflect our long-term life goals, and Preferred by means of achieving our The Role of Emotions in Behavior
may include prosperity, happiness, a terminal values or our preferred ways Emotions – intense, short-term physiological, behavioral, and psychological
secure family, and a sense of of behaving. reactions to a specific object, person, or event that prepare us to respond to it.
accomplishment (Responsible, independent, capable) Four important elements
Intrinsic Work Values Extrinsic Work Values
Emotions are short events or episodes: relatively short-lived.
Related to work itself. Related to the outcomes of doing work.
(Helping others, doing challenging (high earnings, recognition and job Emotions are directed at something or someone. – this differentiates
emotions from mood, which are short-term emotional states that are not
work, and being an exemplary leader) security)
directed toward anything in particular.
Conflict among Values Emotions are experience.
Intrapersonal value conflict – between the instrumental value of ambition and Emotions create a state of physical readiness through physiological
the terminal value of happiness. reactions.
Interpersonal value conflict – occur when two different people hold conflicting
values. Affect and Mood
Cause personality clashes and other disagreements. Mood – short-term emotional states that are not directed toward anything in
Individual-organization value conflict – when an employee’s values conflict particular.
with the values of the organization. Affectivity – represents our tendency to experience a particular mood or to
react things with certain emotions.
How Values differ around the World Positive affect – reflects a combination of high energy and positive
Two Major Dimensions evaluation characterized by emotions like elation. (upbeat and optimistic,
Traditional vs secular-rational values overall sense of well-being, seeing things in a positive light)
reflects the contrast between societies in which religion is very important
and those in which it is not. Negative affect – feelings of being upset, fearful, and distressed.
Societies near the traditional pole emphasize the importance of parent- (downbeat and pessimistic, seeing things in a negative way, seeming to
child ties and deference to authority, along with absolute standards and be in a bad mood)
traditional family values, and reject divorce, abortion, euthanasia, and Not opposites rather dimensions.
suicide.
PERCEPTION IN ORGANIZATION
Perception – set of processes by which an individual becomes aware of and Obstacles provide external explanation for failure, thereby preserving
interprets information about the environment one’s sense of self- competence.
The Stress Process (Jańos Hugo Bruno “Hans” Selye) Consequences of Stress
General Adaptation Syndrome (GAS) - Identifies three stages of response to a Individual Consequences
stressor: alarm, resistance, exhaustion Behavioral – stress may harm the person under stress or others
Stage 1 (Alarm): person may feel some degree of panic and begin to Psychological – stress relate to a person’s mental health and well-being
wonder how to cope. --- fight or flight question. Medical – stress affect a person’s physical well-being
Stage 2 (Resistance): stressor is extreme, the person may unable to cope
up with it. – individual gathers his or her strength Organizational Consequences
(physically/emotionally) and begins to resist the negative effects of the Performance
stressor. Withdrawal
Person is resisting the effects of the stressor Attitudes
Stage 3 (exhaustion): prolonged exposure to stressor without resolution Burnout – general feeling of exhaustion that develops when an individual
may bring on phase 3. simultaneously experiences too much pressure and has too few sources of
At this stage person literally gives up and can no longer fight the satisfaction.
stressor.
Managing and Controlling Stress
Sources of stress Stress Management Tips
Eustress: pleasurable stress accompanying positive events Eat healthy and avoid too much caffeine
Lead to a number of positive outcome Get enough high-quality sleep, take nap if necessary
Distress: unpleasant stress accompanying negative events Exercise
What most people think of when they hear the word stress. Practice relaxation techniques including meditation
Develop affectionate relationship
Causes and Consequences of Stress
Prioritize your to-do list
Most Common Causes of Stress
Learn to say no
Organizational stressors
Life stressors (life change/life trauma) Individual Coping Strategy
Most Common Consequences of Stress
Individual consequences
Organizational consequences
time
relaxation
management
role support
management groups
Importance of Motivation
P=M x A x E
P = performance of the employee Magnitude: beliefs about how difficult a specific task can be
M = motivation: employee must want to do the job well accomplished
A = ability: must be able to do job efficiently Strength: beliefs about how confident the person is that the specific task
E = environment: must have the materials, resources, equipment and can be accomplished
information required to do the job. Generality: beliefs about the degree to which similar tasks can be
accomplished.
The Motivational Framework
Need – something an individual requires or wants. NEED-BASED PERSPECTIVES ON MOTIVATION
Need deficiency: triggers attempts to satisfy the need Need-based theories: assume the need deficiencies cause behavior
Goal-directed behaviors result from individuals trying to satisfy their need Hierarchy of Needs (by Abraham Maslow)
deficiencies
Rewards and punishments are consequences of the goal-directed behavior
Reassessment of need deficiency occurs after the person assesses the extent to
which the outcome addressed the original need deficiency
Excd
ih
n
u
p
rasm
efi
fw
to)vlgyti
(b -
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
Alternative Workplaces
Telecommuting – work arrangement in which employees spend all or part of
their time working off-site. Broader
Reduce absenteeism and turnover will need to take less “formal” time Perspective on Goal Setting
off. Management by Objectives (MBO) - A collaborative goal-setting process
Can save facilities such as parking spaces because fewer people will be at through which organizational goals cascade down throughout the organization
work on any given day. – also environmental benefits Requires customizing to each organization
Although, some may feel isolated and miss the social interaction of the Overall goals are communicated to everyone - each manager meets with
workplace. each subordinates.
Incentive Pay Systems – Plans in which employees can earn additional Related Issues in Rewarding Performance
compensation in return for certain types of performance Linking performance and rewards – there must be a perception on the part of
Piecework programs – earnings based on number of units produced the employees that their rewards are linked to their performance.
Gain-sharing programs – additional earnings to employees or workgroups
for cost-reduction ideas Flexible rewards system – allows employees to choose the combination of
Bonus systems – lump-sum payments from a special fund based on the benefits that best suits their needs.
financial performance Increases both employee satisfaction with benefits and administrative
Long-term compensation – gives manager additional income based on costs for the employer.
stock price performance, earnings per share, or return on equity.
Merit pay plans – base pay raises on the employee’s performance Participative Pay Systems – participative pay system may involve the
Profit-sharing plans – distribute a portion of the firm’s profit to all employee in the system’s design, administration or both.
employees at a predetermined rate.
Employee stock option plans – set aside stock in the company for Expatriate Compensation - compensation packages of employees on overseas
employees to purchase at a reduced rate. 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.