IGD Summary

(From Chapter 6)

Presented by

dHRuva, The HR Club

Disclaimer: This document is not exhaustive and does not guarantee complete
preparation for exams, it is just a reference document.
 CHAPTER-6 (PERCEPTION AND INDIVIDUAL DECISION MAKING)
Perception- A process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment.
Attribution Theory- Determines whether an individual’s behavior is internally or
externally caused. Findings from this theory are-

Fundamental Attribution error- The tendency to underestimate the influence of

external factors and overestimate the influence of internal factors when making
judgments about the behavior of others

Self-Serving Bias- The tendency for individuals to attribute their own successes to
internal factors and put the blame for failures on external factors
COMMON BIASES AND ERRORS-

• Overconfidence Bias-Tendency to be overconfident about our abilities and

about the abilities of others
• Anchoring Bias- Tendency to fixate on initial information, from which one
then fails to adequately adjust for subsequent information.
• Confirmation Bias- Tendency to work out information that reaffirms past
choices and to discount information that contradicts past adjustments.
• Availability Bias- Tendency for people to base their judgments on info. that
is available to them.
• Hindsight Bias- Tendency to believe falsely, after an outcome of an event is
actually known, that one would have accurately predicted that outcome.

FACTORS THAT INFLUENCE DECISION MAKING-

Individual Differences:

• Personality
• Gender
• Mental Ability
• Cultural differences

Organizational Constraints:

• Performance Evaluation
• Reward System
• Formal Regulations
• System imposed time constraints
• Historical Precedents

THREE ETHICAL DECISION CRITERIA-

• Utilitarianism- A system in which decisions are made to provide the

greatest good for the greatest number
• Rights in Decision Making- Respecting and protecting the basic rights of
individuals
• Justice- Impose and enforce rules fairly and impartially
THREE STAGE MODEL OF CREATIVITY-

Chapter-7 (MOTIVATION)
Motivation: The processes that account for an individual’s intensity, direction, and
persistence of effort toward attaining a goal-specifically organizational goal. Three
key elements are Intensity (how hard person tries), Direction (Effort that is
channeled toward and consistent with organizational goals, persistence (how long a
person can maintain effort)
Early Theories of Motivation:
• Maslow’s hierarchy of needs
• McGregor Theory X and Theory Y

• Two factor Theory: A theory that relates intrinsic factors to job satisfaction
and associates extrinsic factors with dissatisfaction. Also called as motivation-
hygiene theory.
• McClelland’s Theory of Needs: A theory that states achievement, power and
affiliation are three important needs that help explain motivation. It looks at
three needs:
• Need for achievement
• Need for power
• Need for affiliation
Contemporary Theories of Motivation:
• Self-determination theory: A theory of motivation that is concerned with
the beneficial effects of intrinsic motivation and harmful effects of extrinsic
motivation.
• Goal setting theory: A theory that says that specific and difficult goals,
with feedback, lead to higher performance
• Self-Efficacy Theory: An individual’s belief that he or she is capable of
performing the task. Four ways self-efficacy can be increased (Enactive
mastery, Vicarious modeling, Verbal persuasion, Arousal)
• Reinforcement Theory: A theory that says behavior is a function of its
consequences. It ignores inner state of individual and focus on what happens
when he or she takes some action
• Social Learning theory: The view that we can learn through both
observation and direct experience
• Expectancy theory: A theory that says that the strength of a tendency to act
in a certain way depends on the strength of an expectation that the act will be
 followed by a given outcome and on the attractiveness of that outcome to the
individual

Chapter-9 (Foundations of Group Behavior)

What is a group?

A group is a collection of individuals who interact with each other to achieve

common goals.

Types of groups

• Informal groups: are made up of two or more individuals who are associated
with one another in ways not prescribed by the formal organization.
• Formal group: is made up of managers, subordinates, or both with close
associations among group members that influence the behavior of
individuals in the group

Stages of Group Development

Social Identity theory: Perspective that considers when and why individuals
considers themselves members of groups.

Characteristics:

• Similarity
• Distinctiveness
• Status
• Uncertainty

Punctuated equilibrium Model: A set of phases that temporary groups go

through that involves transitions between inertia and activity.
Group Property

A. Roles: A set of expected behavior patterns attributed to someone occupying a

given position in a social unit.
Different role requirements:

• Role perception: An individual’s view of how he or she is suppose to act in a

given situation.
• Role Identity: Certain attitudes and behaviors consistent with a role
• Role Expectations: How others believe a person should act in a given
situation.
• Role conflict: A situation in which an individual is confronted by divergent
role expectations.

B. Norms: Acceptable standards of behavior within a group that are shared by the
group’s members.
Classes of Norms:

• Performance norms – level of acceptable work

• Appearance norms – what to wear
• Social arrangement norms – friendships and the like
• Allocation of resources norms – distribution and assignments of jobs and
material
C. Conformity: gaining acceptance by adjusting one’s behavior to align with the
norms of the group.
Reference Groups: Important groups to which individuals belong or hope to
belong and with whose norms individuals like to conform.

Deviant workforce behavior: Voluntary behavior that violates significant

organizational norms and, in so doing, threatens the well-being of the organization
or its members.

Typology DWH

• Production – working speed

• Property – damage and gossip
• Political – favoritism and gossip
• Personal Aggression – sexual harassment

D. Status: Socially defined positions or ranks given to groups or group members

by others. (Norms, group interaction, inequality, stigmatization)
Size: Depends on task. Fact finding, large group. Productive with input, small
group

E. Cohesiveness: Degree to which group member attracted to each other’s and

want to be in group
F. Diversity: Extent to which group members are similar or different

Groups versus the individual

Groupthink: A phenomenon in which the norm for consensus overrides the
realistic appraisal of alternative course of action.

Group shift: A change between a group’s decision and an individual decision that
a member within the group would make: the shift can be toward either
conservatism or greater risk but it generally is toward a more extreme version of
the group’s original position.

Group Decision making Techniques:

• Interacting groups
• Brainstorming
• Nominal group Technique

CHAPTER-10 (Understanding work teams)

Groups’ vs teams

Group shares information with each other to excel in his/her area of performance.
Team puts in individual efforts to perform and reach a goal.

Types of teams

• Problem-solving – 5-12 members from same department meeting few hours

to improve the work environment and efficiency
• Self- managed work teams – 10-15 members taking the responsibility of
previous supervisors
• Cross functional – Members from same hierarchy and different area of work
coming together to accomplish a job
• Virtual teams – team having no face-to-face contact and doing work over
internet/online
• Multiteam system – a team of teams for a specific goal
Creating effective teams

Context Compisition Process

• Adequate • Abilities of • Common

resources memebr purpose
• Leadershipa • Personality • Specific goal
and structure • Roles • Team eficacy
• Climate and allocation
trust
• Conflict levels
• Diversity • Socail loafing
• Evaluation and
reward • Size of teams
• Flexibility and
preference

Key Roles of team: Linker (Coordinates and integrate), Creator (Initiate creative
idea), Promoter (Champions idea once initiated), Assessor (Analysis of option),
Organizer (Provides structure), Producer (Provides direction and follow through),
Controller (examines details), Maintainer (Fights external battles), Adviser
(Encourages search for more information)

Turning individuals into team players

• Selecting: Interviewing and selecting the right match for the available job
• Training: Activity aimed at imparting information to improve the recipient's
performance
• Rewarding: Allocation of work based benefits to the member of the team

Chapter-12 (Leadership)

Leadership is the ability to influence a person’s behavior towards a vision or goal,

the sources may be formal or informal. The role may include day-to-day
functioning, decision making, structuring and planning.
The trait theories of leadership emphasize the role of certain inherent human
qualities that define a leader and that traits are leadership predictors. E.g.
dominance, fairness, etc. The behavioral theories focus on training people to
become leaders. A research (Ohio) considers initiating structure and consideration
for employees as effective leadership behaviors. There are also cultural differences
in hoe a leader is perceived (individualized versus collectivistic culture) some
findings differentiate between production-oriented and employee-oriented leaders.

The Feidler model of leadership describes matching leadership style to factors like
situation, task structure, Position power leader-member relationship and evaluates
through a questionnaire. Other contingency theories like situational leadership
theory (flower’s readiness), Path-goal theory (clear goals and guidance by leaders)
and leader participation model (the how and what of leaders decision making) are
some useful tools to consider while studying leadership The LMX theory states
that the leader is more attracted to followers like him/herself (in-group) as
compared to those who are different (out-group) and feels the I group is more
competent.

Leaders can be Charismatic (inspiring and appealing personally) and/or

transformational (altruistic and put the group’s interest above self) others are
laissez-faire, contingency leader or leader by exception. The four I’s of an effective
leader are intellectual stimulation, individualized consideration, inspirational
motivation and idealized influence.

Authentic leaders know themselves and what they do. These are considered ethical
and trustworthy leaders as the followers can make themselves vulnerable to these
leaders. Trust as a process is developed through a propensity and ability of the
trustee and the truster shares info. And takes risks and develops group
effectiveness as a result.

Some ideas challenge the concept of leadership like substitutes or neutralizers of

leadership and the finding that leadership is an externally given attribute. Online
leadership is a challenge due to the lack of identification based trust. Leaders can
be developed through training and efficient selection process. Mentoring is when a
well- connected senior employee sponsors and supports a novice. The gains are
mainly psychological.
 Chapter-13 (Power and Politics)

Power is defined as the capacity of a person, team, or organization to influence

others. It is used as a means for achieving goals. It is used to gain lateral and
upward influence.

Types of power:

General Dependence Postulate:

The general postulate is the greater B’s has dependence on A, the more Power A
has over B.

What causes Dependence?

• Importance
• Scarcity
• Nonsubstitutability

Power Tactics:

• Legitimacy
• Rational Persuasion
• Inspirational appeals
 • Consultation
• Exchange
• Personal appeals
• Ingratiation
• Pressure
• Coalitions

Politics: Politics is power in action.

Organizational politics involves intentional acts of influence to enhance or protect

the self - interest of individuals or groups

Factors Influencing Political Behavior:

• Individual Factors - eg. Inefficiency of the employee

• Organizational Factors – eg. Competition, high performance pressure

Employee responses to organizational politics:

• Decreased job satisfaction

• Increased anxiety and stress
• Increased turnover
• Reduced performance
Defensive Behavior: Avoiding Action (Over conforming, Playing dumb, Stalling,
Stretching etc.), Avoiding blame (Buffing, Justifying, Misrepresenting, Playing
safe etc.), Avoiding change (Prevention, Self-protection)
Impression Management: The process by which individuals attempt to control
the impression others form of them. Techniques:

• Conformity (Agreeing with someone to gain his approval)

• Favors (Doing nice to someone to gain ingratiation)
• Excuses (Minimizing the apparent severity of the predicament)
• Apologies (Admitting responsibility for undesirable event)
• Self-Promotion (Highlighting one’s qualities, self-focused)
• Enhancement (Claiming what you did is more valuable)
• Flattery (Complementing others)
• Exemplification (Doing more than what you need to)

Chapter-14 (Conflict and Negotiation)

Conflict: Fiction or opposition resulting from actual or perceived differences.

Functional conflict helps the group whereas dysfunctional conflict hinders group
performance.

Types of conflict

• Task conflict: Conflict over tasks and goals of the work

• Relationship conflict: Based on interpersonal relationships
• Process conflict: Conflict over how work gets done
• Dyadic conflict: Conflict between two people in the group
• Intragroup conflict: conflict that occurs within a group
• Intergroup conflict: conflict between groups

Conflict process

Behaviour outcome
(Party' (Increased or
Potential opposition Personalisation behaviour
Intention decreased
or incompatibility (Perceived, felt) and other's group
reaction) performance)
Dimesions of Conflict-Handling Intetions:

Bargaining strategies

• Distributive bargaining: A win lose situation of negotiation

• Fixed pie: Set amount of goods or services to be divided up between parties
• Integrative bargaining: A win-win situation of negotiation

Negotiation: Bargaining process between two or more parties to resolve a conflict

or settle a matter of mutual concern.

Negotiation process
Clarification
Definition of Implementati
Prepartion & planning & Bargaining
ground rules on
justification

Differences in negotiation

Personality traits, Moods/Emotions , Culture, and Gender difference in negotiation

Third party negotiation

• Mediator: Neutral third party who negotiates using reasoning, persuasion,

and suggestion
• Arbitrator: A third party who has the authority to dictate an agreement
• Conciliator: Third party who provides an informal mode for negotiation
 Chapter-17 (Stress Management)

Stress is the dynamic condition of demand, opportunity or resource that may be

positive or negative and the events or situations that cause stress (stressors) are
either a hindrance or challenge to a person. The workplace pressures, obligations,
etc. (Demands) and things with an individual’s control that can resolve demands
(resources) are dependents of stress.

Sources of stress

• Environmental Factors(Economical, political, technological)

• Organizational Factors(Task, role and interpersonal)
• Personal Factors(family, economical, personality)
• Some stressors may have an additive nature
People cope with stress in different ways in terms of coping mechanisms,
interpreting conditions, job experience and personality, etc. Individualized and
collectivistic cultures handle stress in different ways.

Stress has consequences:

• Psychological (Job Dissatisfaction, lack of significance, autonomy, identity)

• Physiological (lack of attention, immunity, memory, etc.)
• Behavioral (substance abuse, sleep deprivation, less turnover, etc.)

Managing stress includes individual approaches like, physical exercise, social

support, time management, etc. and the organization can do it through wellness
programs, placement training, setting clear goals, performance feedback, increased
employee involvement, communication improvement and sabbaticals