Chapter 1

What are you responsible to learn?

        Describe what managers do

         Define organizational behavior (OB)

         Explain the value of the systematic study of OB

         List the major challenges and opportunities for managers to use OB concepts

         Identify the contributions made by major behavioral science disciplines to OB

         Describe why managers require a knowledge of OB

         Explain the need for a contingency approach to the study of OB

         Identify the three levels of analysis in this book’s OB model

I. What managers do

         Get things done through other people

         Make decisions, allocate resources, and direct the activities of others to attain goals

         Do their work in an organization

II.                  Management functions

         Planning

         Includes defining goals, establishing strategy, and developing plans to coordinate activities.

         Organizing
         Determining what tasks are to be done, who is to do them, how the tasks are to be grouped,
who reports to whom, and where decisions are to be made.

         Leading

         Includes motivating subordinates, directing others, selecting the most effective
communication channels, and resolving conflicts.

         Controlling

Monitoring activities to ensure they are being accomplished as planned and correcting any
significant deviations.

III. Mintzberg's managerial roles

         Interpersonal Roles: Figurehead, Leader, Liaison

         Informational Roles: Monitor, Disseminator, Spokesperson

         Decisional Roles: Entrepreneur, Disturbance Handler, Resource Allocator, Negotiator

IV. Management skills

         Technical Skills: The ability to apply specialized knowledge or expertise.

         Human Skills: The ability to work with, understand, and motivate other people, both
individually and in groups. People skills are critical for managers!

         Conceptual Skills: The mental ability to analyze and diagnose complex situations.

** Effective vs. Successful Managerial behavior – Which would you rather be – an “effective”
manager or a “successful” one? Why?

V.                  Organizational Behavior

A field of study that investigates the impact that individuals, groups and structure have on
behavior within organizations, for the purpose of applying such knowledge toward improving an
organization’s effectiveness.
 

VI.                Replacing Intuition with Systematic Study

         Intuition: A feeling not necessarily supported by research.

         Systematic Study: Looking at relationships, attempting to attribute causes and effects and
drawing conclusions based on scientific evidence.

         Behavior is generally predictable.

         There are differences between individuals.

         There are fundamental consistencies in behavior

         There are rules (written & unwritten) in almost every setting.

VII.              Contributing Disciplines to OB

         Psychology, Sociology, Social Psychology, Anthropology, Political Science

** There are few absolutes in OB. Often we rely on contingency variables or situational factors
which moderate the relationship between two or more other variables. Can you think of a
“moderating” variable in human behavior?

VIII.            Challenges and Opportunities for OB

         Globalization

         Workforce Diversity and The Coming Labor Shortage

         Toward Improving Quality and Productivity

         Improving People Skills, Improving Customer Service

         Empowering employees

         “Temporary” situations

         Stimulating Innovation and change, Networked Organizations, Work/Life Conflict

         Improving Ethical Behavior

IX.               Developing an OB model (or an abstraction/simplification of reality)

Dependent Variables (What do you want to predict?)

Productivity

Absenteeism

Turnover

Organizational Citizenship Behavior

Job Satisfaction

Independent Variables (What are some of the possible causes of the Dependent
Variables?)

Individual-Level Variables

Group-Level Variables

Organizational Systems-Level Variables

OB is a complex topic!

X. Chapter summary
         Managers need to develop their interpersonal, or people, skills to be effective in their jobs.

         OB is a field of study that investigates the impact that individuals, groups, and structure
have on behavior within an organization.

         OB focuses on improving productivity, employee job satisfaction, citizenship behavior and
reducing absenteeism and turnover.

         OB uses systematic study to improve predictions of behavior.

         OB recognizes and helps managers to see the value of workforce diversity and practices. It
also seeks to improve organizations and help managers cope with the many changes faced
in today’s workplace.

Chapter 4 Personality & Emotions

What are you responsible to learn?

 Explain the factors that determine an individual’s personality

 Describe the MBTI personality framework
 Identify the key traits in the Big Five personality model
 Explain the impact of job typology on the personality -- job performance
relationship
 Differentiate emotions from moods
 Contrast felt vs. displayed emotions
 Understand how to read emotions
 Explain any gender differences in emotions
 Describe external constraints on emotions
 Apply concepts on emotions to OB issues

Personality

Consider the following quote….“Regarding behavior – forget about personality – it’s the
situation that determines how someone will behave!”

Do you agree or disagree with this statement? Why? Why not?

 What is personality?

The sum total of ways in which an individual reacts and interacts with others.

Personality Determinants

         Heredity – so we’re born to be “just the way we are”?

          Environment – oh, so it’s the environment instead?

         Situation – or is it the situation that determines our personality??

o       So – what determines your personality???

 Personality Traits

Personality traits are enduring characteristics that describe an individual’s behavior.

 Early Search for Primary Traits (16 primary traits)

 The Myers-Briggs Type Indicator (MBTI) (popular yet not well supported by
research/data)
 The Big Five Model (well supported by research/data!)
1. Extroversion
2. Agreeableness
3. Conscientiousness
4. Emotional Stability
5. Openness to Experience

Major personality attributes influencing OB

 Locus of Control
 Machiavellianism
 Self-Esteem
 Self- Monitoring
 Risk-Taking
 Type A vs. Type B Personality

Type A's and Type B's

Type A Personality

o Always moving, walking, and eating rapidly.

o Feel impatient with the rate at which most events take place.
o Strive to think or do two or more things at once.
o Cannot cope with leisure time.
o Are obsessed with numbers, measuring their success in terms of how
many or how much of everything they acquire.

Type B Personality

o Never suffer from a sense of time urgency with its accompanying

impatience.
 o Feel no need to display or discuss either their achievements or
accomplishments unless such exposure is demanded by the situation.
o Play for fun and relaxation, rather than to exhibit their superiority at any
cost.
o Can relax without guilt.

Which do you think you are? Type A or Type B?

Personality & National Culture

Across cultures, there is a surprisingly high amount of consistency in personality

types (especially in industrialized nations)

Achieving Personality Fit

         The Person-Job Fit (John Holland’s personality-job fit theory)

         The Person-Organization Fit (fit employee personalities with organizational

climate)

( So – what is personality? Where does it come from? Why is it important in OB and in

the workplace?)

Emotions

Affect – A broad range of feelings that people experience

Emotions – Intense feelings that are directed at someone or something

Moods – Feelings that tend to be less intense than emotions and that lack a
contextual stimulus.

Emotional Labor: A situation in which an employee expresses organizationally

desired emotions during interpersonal transactions.

Felt vs. Displayed Emotions

 Felt = “actual” emotions

 Displayed = organizationally required emotions considered appropriate in a given
job

Emotion Dimensions

 Variety
 Intensity
 Frequency & Duration
Can People be Emotionless? (to some extent, “yes”)

Gender & Emotions

Women tend to show more emotional expression than men, experience emotions
more intensely, and display them more than men (except for anger). Men tend to feel
less comfortable expressing emotions, and women tend to be better “readers” of
nonverbal emotional cues than men.

External Constraints on Emotions

         Organizational Influences

         Cultural Influences

OB Applications

 Ability & Selection

o Emotional Intelligence (EI) is important and relatively “new”

o Decision making
o Motivation
o Leadership
o Interpersonal Conflict
o Deviant work behaviors

Summary & Implications for Managers

Personality

-          Create parameters for people’s behaviors so it is important in predicting

behavior

-          Use personality tests in conjunction with other selection tools

-          Match the job (remember job analysis? Yes, again it rears it’s ugly head!)
to the personality of the employee

Emotions

-          Managers cannot control the emotions of their subordinates

 -          However, you shouldn’t ignore them either

-          Emotions trigger arousal levels (important when we discuss motivation)

-          Emotions are often “part of the job” – understand and accept this and
select the right people for the jobs with more or less “emotional” aspects
(i.e., are some jobs more “complex” than others?)

Chapter 5: Perception and Individual Decision Making

 
Perception

 What is Perception?

A process by which individuals organize and interpret their sensory impressions

in order to give meaning to their environment.

 Why is it Important?

Because people’s behavior is based on their perception of what reality is, not on
reality itself. The world that is perceived is the world that is behaviorally important.

Factors Influencing Perception

        Factors in the Perceiver – attitudes, motives, interests, experiences, expectations

     Factors in the Situation – time, work setting, social situation
        Factors in the Target – novelty, motions, sounds, size, background, proximity,
similarity
      
Person Perception: Making Judgments About Others

- Attribution Theory

–    When individuals observe behavior, they attempt to determine whether it is

 internally (under the personal control of the individual) or externally (outside
causes “force” you to behave a certain way) caused.

- Fundamental Attribution Error

–    Thetendency 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

–    Thetendency for individuals to attribute their own successes to internal factors
while putting the blame for failures on external factors.

Attribution Theory - Frequently Used Shortcuts in Judging Others

- Selective Perception

–    People
selectively interpret what they see on the basis of their interest,
background, experience, and attitudes.

- Halo Effect

–    Drawinga general impression about an individual on the basis of a single

characteristic.

- Contrast Effects

–    Evaluationsof a person’s characteristics that are affected by comparisons with

other people recently encountered who rank higher or lower on the same
characteristics.

- Projection

–    Attributing one’s own characteristics to other people

- Stereotyping

–    Judging
someone on the basis of one’s perception of the group to which that
person belongs.

 
Specific Applications in Organizations

- Employment interview

–    Early
impressions are very important! Perceptual judgments are often inaccurate!
(Another reason we should use structured interviews!)

- Performance Expectations

–    People attempt to validate their perceptions of reality – even when they are faulty!
Self-fulfilling prophecy (Pygmalion Effect) is based on the notion that expectations
can determine behavior – this is a very powerful managerial technique!

- Ethnic Profiling

      - A form of stereotyping in which a group of individuals is singled out - typically on the basis
of ethniciey or race - for intensive inquiry, scrutinizing, or investigation.

- Performance Evaluations

–    Manysubjective components (perceptions) are used in the evaluation of

employees

The Link Between Perception and Individual Decision Making

 Decisions = Choosing between 2 or more alternatives

 Problems = A discrepancy between some current state of affairs and some
desired state

How should we make decisions in organizations?

 To maximize a particular outcome, try the “rational decision making model”…

Steps in the Rational Decision-Making Model

        Define the problem.

        Identify the decision criteria.

        Allocate weights to the criteria.

        Develop the alternatives.

        Evaluate the alternatives.

        Select the best alternative.

Assumptions of the Rational Decision-Making Model

- Problem Clarity-

–    The problem is clear and unambiguous.

- Known Options-

–    The decision-maker can identify all relevant criteria and viable alternatives.

- Clear Preferences-

–    Rationality assumes that the criteria and alternatives can be ranked and weighted.

- Constant Preferences-

–    Specific
decision criteria are constant and that the weights assigned to them are
stable over time.

- No Time or Cost Constraints-

–    Full information is available because there are no time or cost constraints.

-Maximum Payoff-

–    The choice alternative will yield the highest perceived value.

How can we improve creativity in decision making?

–    You can produce novel and useful ideas by emphasizing the three component
 model of creativity: 1) expertise, 2) creative-thinking skills, and 3) task motivation

So, how are decisions actually made in organizations?

        Bounded Rationality

- individuals make decisions by constructing simplified models that extract the

essential features from problems without capturing all their complexity.

        Intuitive Decision Making

–  Intuition = an unconscious process created out of distilled experience.

–  Intuition is often used when there is a high level of uncertainty, there is little
precedent to go on, when the variable in question are less predictable, when
“facts” are limited, these facts don’t lead you in one particular direction, data is of
little use, when there are several plausible choices, and there is time pressure

Problem Identification

- Problems that are visible tend to have a higher probability of being selected than ones
that are important. Why?

–    It is easier to recognize visible problems.

–    Decision-Makers want to appear competent and “on-top of problems.”

–    Decision-Makers self-interest affects problem selection because it is usually in the

Decision-Maker’s best interest to address problems of high visibility and high
payoff. This demonstrates an ability to perceive and attack problems.

Alternative Development

 
 - Decision makers rarely seek optimum solutions but instead choose satisficing ("good
enough") ones.

–    Efforts made are simple and confined to the familiar.

–    Efforts are incremental rather than comprehensive.

–    Manysuccessive limited comparisons rather than calculating value for each
alternative.

–    This
approach makes it unnecessary for the decision maker to thoroughly
examine an alternative and its consequences.

–    Thus
the decision makers steps are small and limited to comparisons of the
current or familiar options.

Making Choices

- Many decision makers often allow biases and errors to creep into their decision
making.

–    Overcofidence Bias

- Anchoring Bias

- Confirmation Bias

- Availability Bias --or the tendency of people to base their judgments on

information readily available to them.

–    Representative
Bias -- The tendency to assess the likelihood of an occurrence
by drawing analogies and seeing identical situations in which they don’t exist.

–    Escalation
of Commitment --an increased commitment to a previous decision in
spite of negative information (all too often creeps into decision making)
- Randomness Error
- Winner's Curse
- Hindsight Bias

 
Intuitive Decision Making (pg. 166-167)
Individual Differences in Decision-Making Styles (p. 169)

Organizational Constraints

        Performance Evaluations

        Reward Systems

        Formal Regulations

        System-Imposed Time Constraints

        Historical Precedents

Cultural Differences

–    The rational model does NOT acknowledge cultural differences

–    There
are differences in what problems to focus on, the depth of analysis,
importance of logic and rationality, and preference for individual vs. group decision
making

What about Ethics in Decision Making?

- An individual can use three different criteria in framing or making ethical choices.
Each has advantages and disadvantages…
 

–    Utilitarian
criterion -- Decisions are made solely on the basis of their outcomes or
consequences. The greatest good for the greatest number.

–    Rights
criterion -- Decisions consistent with fundamental liberties and privileges as
set forth in documents like the Bill of Rights.

–    Justice
criterion -- Decisions that impose and enforce rules fairly and impartially so
there is an equitable distribution of benefits and costs.

Ethics & National Culture

        There are NO global ethical standards

        Most issues are not “black and white” (i.e., easy to say as being “right” or “wrong”)

        Q: How far should we go in punishing rule breakers? Execution?

Summary and Implications for Managers

- Perception

–     Individuals
behave based not on the way their external environment actually is
but, rather, on what they see or believe it to be.

–     Evidence
suggests that what individuals perceive from their work situation will
influence their productivity more than will the situation itself.

–     Absenteeism, turnover, and job satisfaction are also reactions to the individual’s
perceptions.

- Individual Decision Making

–     Individuals think and reason before they act.

 –     Under
some decision situations, people follow the rational decision-making model.
However, this doesn’t happen very often…

–     So, what can managers do to improve their decision making? (p. 174)

•     Analyze the situation

•     Be aware of biases.

•     Combine rational analysis with intuition.

•     Don’t assume that your specific decision style is appropriate for every job.

•     Use creativity-stimulation techniques when possible.

Chapter 6: Basic Motivation Concepts

What is Motivation?

Motivation = “The processes that account for an individual’s

intensity, direction, and persistence of effort toward
achieving a goal”
•    Intensity= how hard an employee tries
•    Direction = should benefit the organization (i.e. quality of effort counts!)
•    Persistence = how long can an employee maintain his/her effort?

  
  Note: the goal is an “organizational” goal

Some Key Points: Motivation is not directly observable (it is internal to each employee),
it is personal (what is arousing differs and how behavior is directed is often different),
however the process is common and it is goal directed.

Early Theories of Motivation

Hierarchy of Needs (a.k.a. Maslow's Pyramid)

 Physiological
 includes hunger, thirst, shelter, sex and other bodily needs
 Safety
 includes security and protection from physical and emotional harm
 Social
  includes affection, belongingness acceptance, and friendship
 Esteem
 includes internal esteem factors such as self-respect, autonomy, and
achievement; and external esteem factors such as status, recognition, and
attention
 Self-actualization
 the drive to become what one is capable of becoming; includes growth, achieving
one’s potential, and self-fulfillment

Note: An individual moves “up the steps” of the hierarchy. “Lower order” needs are
satisfied externally (i.e. physiological and safety) while “higher order” needs are
satisfied internally (i.e. social, esteem, and self-actualization).

Theory X and Theory Y

Douglas McGregor proposed two distinct views of human beings: one basically

negative, labeled Theory X, and the other basically positive, labeled Theory Y.

Theory X

 The assumption that employees dislike work, are lazy, dislike responsibility, and
must be coerced to perform. (Lower order needs dominate)

Theory Y

 The assumption that employees like work, are creative, seek responsibility, and
can exercise self-direction. (Higher order needs dominate)

McGregor believed Theory Y assumptions were more valid than Theory X and proposed
such ideas as participative decision making, responsible and challenging jobs, and good
group relations as approaches that would maximize an employee's motivation.

**Question = what type of manager will you be (or are you)? One who believes in
Theory X or Theory Y? Be honest! Do you think this is important? Why? Why not?

Two-Factor Theory

•Intrinsic factors are related to job satisfaction, while extrinsic factors are related to job
dissatisfaction.

•Hygiene factors = when these are adequate, workers “feel OK” (i.e. they are NOT
dissatisfied). Examples include quality of supervision, company policies and
administration.
•Motivators = examines factors contributing to job satisfaction. Thus there are factors
which lead to job satisfaction and things that don’t (i.e. notice there is a difference
between “non-satisfying” and “dissatisfying factors”)

Contemporary Theories

 
McClelland's Theory of Needs

 The Need for Achievement: the drive to excel, achieve in relation to a set of
standards, strive to succeed.

 The Need for Power: The need to make others behave in a way that they would
not have behaved otherwise.

 The Need for Affiliation: The desire for friendly and close interpersonal
relationships.

Question: What can we do with this information? Answer: Match people to jobs!

Those high on "achievement" tend to prefer jobs with personal responsibility, feedback
and moderate risks. They DO NOT always care about motivating others!

In general, individuals high on the need for "Power" and low on the need for "Affiliation"
tend to perform better in managerial roles.

Cognitive Evaluation Theory

•Allocating extrinsic rewards for behavior that had been previously intrinsically
rewarding tends to decrease the overall level of motivation.
Goal -Setting Theory

 The theory that specific and difficult goals lead to higher performance.
 Goals tell an employee what needs to be done and how much effort will need to
be expended.
 Specific goals increase performance; that difficult goals, when accepted, result in
higher performance than do easy goals; and that feedback leads to higher
performance than does non-feedback.
 Specific hard goals produce a higher level of output than does the generalized
goal of "do your best."
 The specificity of the goal itself acts as an internal stimulus.

•          Be
sure to note the importance of goal commitment, self-efficacy, task
characteristics, and national culture on goal-setting theory.
Management by Objectives ("MBO")

This approach puts goal setting to work.

It is a program that encompasses:

 specific goals (tangible, verifiable, measurable)

 participatively set
 for an explicit time period
 with performance feedback on goal progress

MBO operationalizes the concept of objectives by devising a process by which

objectives cascade down through the organization.

The result is a hierarchy of objectives that links objectives at one level to those at the
next level.

For the individual employee, MBO provides specific personal performance objectives.

 
Self-Efficacy Theory

Self-efficacy refers to an individual's belief that he or she is capable of performing a

task.  The higher your self-efficacy, the more confidence you have in your ability to
succeed in a task.

Reinforcement Theory

 A counterpoint to the goal-setting theory.

 In reinforcement theory, a behavioristic approach, which argues that
reinforcement conditions behavior.
 Reinforcement theorists see behavior as being behaviorally caused.
 Reinforcement theory ignores the inner state of the individual and concentrates
solely on what happens to a person when he or she takes some action.
 Because it does not concern itself with what initiates behavior, it is not, strictly
speaking, a theory of motivation.
 It does however provide a powerful means of analysis of what controls
behavior.

 
Equity Theory

 Individuals compare their job inputs and outcomes with those of others and then
respond so as to eliminate any inequities.
  Equity theory recognizes that individuals are concerned not only with the
absolute amount of rewards for their efforts, but also with the relationship of this
amount to what others receive.
 Historically, equity theory focused on:

distributive justice or the perceived fairness of the amount and allocation of

rewards among individuals. However, equity should also consider procedural
justice or the perceived fairness of the process used to determine the distribution
of rewards. Interactional justice is also important.

*Question: So, what happens when your pay is “inequitable”?

Expectancy Theory

 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. The theory focuses on three
relationships:
 Effort-performance relationship or the probability perceived by the individual that
exerting a given amount of effort will lead to performance.
 Performance-reward relationship or the degree to which the individual believes
that performing at a particular level will lead to the attainment of a desired
outcome.
 Rewards-personal goals relationship or the degree to which organizational
rewards satisfy an individual’s personal goals or needs and the attractiveness of
those potential rewards for the individual.

Don’t Forget Ability and Opportunity

Performance = f (Ability X Motivation X Opportunity)

Question: Think about how the fundamental attribution error can lead you astray
in terms of “understanding” others’ behavior in the workplace. How do ability,
motivation, and opportunity influence YOUR perceptions of workplace behavior?)

Integrating Contemporary Theories of Motivation

•First, consider employees’ opportunity, ability and the “purpose” or objectives of the
current performance evaluation system in which they work. Then, consider the link
between individual effort – individual performance – organizational rewards and
personal goals. Each link can be influenced by a variety of factors (i.e. needs,
reinforcement, equity)

Motivation Theories are Culture Bound

•Note that most theories were developed in the US. Many theories do not always work
around the world (e.g., equity theory).  However, many do (e.g., having interesting
work).

Summary and Implications for Managers

Need Theories
–     Maslow’s hierarchy, Two factor, ERG, & McClelland’s

Goal Setting Theory

–     Clear and difficult goals often lead to higher levels of employee productivity.

Reinforcement Theory
–     Goodpredictor of quality and quantity of work, persistence of effort, absenteeism,
tardiness, and accident rates.

Equity Theory
–     Strongest
when predicting absence and turnover behaviors.
–     Weakest when predicting differences in employee productivity.

Expectancy Theory
- Focus on performance variables

- It is a “rational” model so be careful when using it

 - This theory may be better applied to employees with greater discretion in their
jobs (i.e., as opposed to semi-skilled positions)

Chapter 7

 
Motivation: From Concept to Applications

 
Job Characteristics Model
A model that proposes that any job can be described in terms of five core job
dimensions:

 
1) Skill variety
2) Task identity
3) Task significance
4) Autonomy
5) Feedback

The bottom line: people who work on jobs with high-core job dimensions are generally
more motivated, satisfied and productive than those who do not.   And the core job
dimensions lead to personal and work outcomes through critical psychological states
and employee growth-need strength and not directly.
How Can Jobs Be Redesigned?
1) Job rotation - the periodic shifting of an employee from one task to another (note:
often called "cross-training")
2) Job enlargement - increasing the number and variety of tasks that an individual
performs results in jobs with more diversity (note: the job actually changes)
3) Job enrichment - the vertical expansion of jobs, increasing the degree to which the
worker controls the planning, execution, and evaluation of the work.

Alternative Work Arrangements

The typical "9-5" job is slowly becoming a thing of the past.  Instead, many
organizations are utilizing:

 
Flextime (i.e. flexible work hours) options are becoming very popular.  Workers must be
at their jobs during core hours but can either start early and leave early or start late and
leave late as long as they are present during the core hours. This system usually
decreases absenteeism, improves productivity, reduces overtime expenses, lessens
hostility towards management, reduces lateness, traffic on the roads, and increases
feelings of autonomy, responsibility, and satisfaction. However, this system may not
work for all jobs.

Job Sharing (i.e. having 2 or more employees split a traditional 40 hour work week). 
This can be done by splitting each day (i.e. working from 8am-12noon and another
employee works 1pm to 5pm ) or by splitting the week (i.e. working Monday thru Wed
and another employee works Wed thru Friday).   This is often tough for upper
management as the coordination between the two must be very productive for this to
work.

Telecommuting   - working from home/remotely at least 2 days a week via a computer

linked to the office.  This is often associated with a virtual office.   Many types of jobs
can be done this way and with new technologies and reduced costs of
telecommunication equipment, this option is extremely popular. However, some
employees say they miss out on important information gathered both formally and
informally while at work in the office.

 
                      Don't Forget Ability and Opportunity (So important, it shows up
again :)
Performance = f (Ability X Motivation X Opportunity ) Don't assume people are "simply
not motivated" to work.  Be sure to check all three dimensions before making a decision
about what to do next...

 
Employee Involvement Programs

 A participative process that uses the input of employees and is intended to

encourage increased employee commitment to the organization’s success.

 Examples of Employee Involvement

 

 Participative Management
 Representative Participation
 Quality circles

*Note: these strategies use concepts found in Theory X and Y, the two-
factor theory, and needs (i.e. N achievement) and ERG. These
approaches are popular around the world.

 
Rewarding Employees
What should we pay our employees?

Consider internal and external equity (p. 237-238)

Variable-Pay Programs
What are they? A program where a portion of an employee’s pay is based on some
individual and/or organizational measure of performance.

 piece-rate pay plans

 merit-based pay
 bonuses
 profit-sharing plans
 gainsharing plans
 employee stock ownership plans (ESOPs)

 
Rewarding Individual Employees Through Skill-Based Pay Plans

 Pay levels based on how many skills employees have or how many jobs they can
do. What’s the appeal of skill-based pay?

 From management’s perspective : flexibility, facilitates communication, lessens

“protective territory” behavior.

 Is there a downside? Yes. People can “top out”, employee frustration can
increase, skills become obsolete, paying people for acquired skills not used

 Are we heading to a skill-based society? (p. 244)

Flexible Benefits: Developing a Benefits Package

 Allowing employees to tailor their benefit program to meet their personal needs
by picking and choosing from a menu of benefit options.

 
Intrinsic Rewards: Employee Recognition Programs

 
  Programs that recognize both individual and group accomplishments ("thank
you", "Bragging boards", Employee of the month, etc.)

 Consistent with the reinforcement theory, rewarding a behavior with recognition

immediately following that behavior is likely to encourage its repetition.

 In contrast to most other motivators, recognizing an employee’s superior

performance often costs little or no money, making them highly attractive to
industry.

 Be careful not to make these types of plans "political" - do them right and they
are often effective

SPECIAL ISSUES IN MOTIVATION (an added bonus for your reading pleasure)
Motivating Professionals: How are “Professionals” different?
 

 Receive a great deal of “intrinsic” satisfaction from their work.

 Strong and long-term commitment to their field of expertise
 Well paid/ chief reward is work itself.
 Value support
 More focused on work as central life interest.

 
How might we motivate professionals?

 Provide challenging projects

 Give them autonomy in follow interests and structure work.
 Reward with educational opportunities.
 Recognize their contributions.
 Create alternative career paths.

Motivating Contingent Workers

 

 No simple solutions to motivating contingent workers.

 Contingent or temporary workers often have little or no job security/stability,
therefore they don’t identify with the organization or display the commitment of
permanent employees.
  Contingent or temporary workers are typically provided with little or no health
care, pensions, or similar benefits.
 Greatest motivating factor (for those who are not contingent voluntarily) is the
opportunity to gain permanent employment.
 Motivation is also increased if the employee sees that the job he or she is doing
for the firm can develop salable skills. Be careful – some temp employees doing
the same work as “regular” employees often perceive inequity in their relationship
with the organization – be aware of pay differences

 
Motivating a Diversified Work Force
Not all employees are motivated by money!

Flexibility is the key to maximizing your employees’ motivation by understanding and

responding to the diversity of needs.
 

 specially designed work schedules

 flexible compensation plans

 flexible benefits plans
 physical work settings
 child care
 elderly care
 flexible work hours
 job sharing
 flexible leave
 work teams for those seeking this type of environment

 
How might we motivate an (often low-skilled) service worker?
 

 One of the most challenging problems in industry today.

 Many “plans” have been tried, almost all unsuccessfully
 Try flexible work schedules
 broader responsibility for inventory, scheduling, and hiring
 Try creating a “family” atmosphere among employees
 Unless pay and benefits rise significantly, continued high turnover can be
expected.

Motivating People Doing Highly Repetitive Tasks

Motivating individuals in these jobs can be made through careful selection:

  People vary in their tolerance for ambiguity.
 Many individuals prefer jobs that have a minimal amount of discretion and
variety.
 High pay and careful selection can reduce recruitment problems and high
turnover, however…
 This doesn’t necessarily lead to highly motivated workers.
 Creative personnel programs have exhibited some success by providing:

clean and attractive work surroundings, ample work breaks and opportunity to
socialize during breaks, and empathetic supervisors.

Chapter 11: Leadership

What are you responsible to learn?

 Contrast leadership and management

 Summarize the conclusions of trait theories
 Identify the limitations of behavioral theories
 Describe Fiedler’s contingency model
 Explain Hersey and Blanchard’s situational theory
 Summarize leader-member exchange theory
 Describe the path-goal theory
 Identify the situational variables in the leader-participation model

What is Leadership?

The ability to influence a group toward the achievement of goals.

 Leadership plays a central part in understanding group behavior.

 There are many definitions of leadership and various theories have been
proposed
 Is "Management" the same as "Leadership"? What does a manager do? What
does a leader do? Why is “coping” important according to Kotter? (p. 313)

LEADERSHIP THEORIES….

Trait Theories

Theories that consider personal qualities and characteristics that differentiate leaders
from non-leaders.

 Some traits increase the likelihood of success as a leader, but none of them
guarantee success.
  Some limitations to trait theories…. There are no universal traits - traits appear to
predict leadership in selective situations only; Traits generally predict behavior in
“weak” vs. “strong” situations; cause and effect relationships are not clear; do
traits simply predict the appearance of leadership rather than effective vs.
ineffective leadership.

Behavioral Theories

Theories proposing that specific behaviors differentiate leaders from non-leaders.

Ohio State Studies

 Initiating structure vs.

 Consideration

University of Michigan Studies

 Employee oriented vs.

 Production oriented

The Managerial Grid

 Concern for people vs. concern for production (i.e. 81 different styles on which a
leader's behavior may fall)

Scandinavian Studies

 Effective leaders display “development-oriented behavior” (value

experimentation, seeks new ideas, and generates and implements change)

Contingency Theories

Five contingency models are explored...(what works in one organization may not work
in another; e.g., Linda Wachner of Warnaco, p. 319)

Fiedler Model

Effective group performance depends upon the proper match between the leader's style
of interacting with subordinates and the degree to which the situation gives control and
influence to the leader.  Assumes an individual's leadership style is fixed.

 Identify style via the Least Preferred Co-worker (LPC) scale

                Leader-member relations

                Task structure    

                Position power

Match leaders and situations

*Cognitive resource theory: stress unfavorably affects a situation. Intelligence and

experience can lessen the influence of stress on the leader…

Hersey and Blanchard's Situational Theory

 Situational leadership theory (SLT) – Focus on “readiness” of the followers

(ability and willingness to accomplish a specific task)

Leader-Member Exchange Theory (LMX)

Leaders create "in-groups" and "out-groups", and subordinates with in-group status will
have higher performance ratings, less turnover, and greater satisfaction with their
superior.

Path-Goal Theory

A leader's behavior is acceptable to subordinates insofar as they view it as a source of

either immediate or future satisfaction.

 Directive vs. Supportive leadership

Leader-Participation Model

Provides a set of rules to determine the form and amount of participative decision
making in different situations.  There are now 12 contingency variables in the latest
revision of this model (please see page 327).  This model is often too complicated for
managers/leaders to actually put into place in organizations.

Summary and Implications for Managers

Leaders usually are the members of an organization who provide the direction toward
goal attainment.

Re: Traits - Generally speaking, individuals who are ambitious; have high energy, a
desire to lead, self-confidence, intelligence, and are flexible are more likely to succeed
as leaders than those without these traits.

No particular style (behavioral theories) is effective in all situations

Contingency models help us better understand leadership. Consider…..Task structure

of the job, level of situational stress, group support, leader intelligence and experience,
and follower characteristics (personality, experience, ability and motivation)
Chapter 12: Contemporary Issues in Leadership

What are you responsible to learn?

Identify the five dimensions of trust

Define the qualities of a charismatic leader

Contrast transformational with transactional leadership

Identify the skills that visionary leaders exhibit

Explain how framing influences leadership effectiveness

Identify the four roles that team leaders perform

Explain the role of a mentor

Describe how online leadership differs from face to face leadership

Identify when leadership may not be necessary

Explain how to find and create effective leaders.

Trust: The Foundation of Leadership

Trust

 A positive expectation that another will not act opportunistically

 Competence, consistency, loyalty and openness are dimensions of trust
 You cannot lead others who do not trust you!  Reengineering, downsizing, and
the use of 'temps' have undermined employee trust in management

Three Types of Trust

 Deterrence Based Trust (based on fear)

 Knowledge Based Trust (based on predictability over time)
 Identification Based Trust (based on mutual understanding of wants and needs)

Leaders as Shapers of Meaning

Framing Issues

         A way to use language to manage meaning

Charismatic Leadership

 Followers make attributions of heroic or extraordinary leadership abilities when

they observe certain behaviors (ex - Martin Luther King and JFK)
 Are charismatic leaders born or made? Can charisma be a liability?

Transactional vs. Transformational Leadership

 Transactional - leaders who guide or motivate their followers in the direction of

established goals by clarifying role and task requirements

 Transformational - leaders who inspire followers who transcend their own self-
interests and who are capable of having a profound and extraordinary effect on
followers.

Visionary Leadership

 The ability to create and articulate a realistic, credible, attractive vision of the
future for an organization or organizational unit that grows out of and improves
upon the present.

 Q: What skills to visionary leaders exhibit? A: The ability to explain the vision to
others, the ability to express the vision not just verbally but through the leader’s
behavior, and the ability to extend the vision to different leadership contexts.

Emotional Intelligence (EI) & Leadership Effectiveness

 EI has 5 key components - which "great" leaders demonstrate:

1. self-awareness
2. self-management
3. self-motivation
4. empathy
5. social skills
 EI may be added to our list of "traits" of effective leaders (Chapter 11)

Contemporary Leadership Roles

Providing Team Leadership

 Many leaders are not equipped to handle the change to teams.

 New skills such as the patience to share information, trust others, give up
authority, and knowing when to intervene are paramount.
 Team leaders are liaisons with external constituencies, troubleshooters, conflict
managers, and coaches
Mentoring: A senior employee who sponsors and supports a less-experienced
employee.

Self-Leadership: A set of processes through which individuals control their own

behavior.

Moral Leadership

 Leadership is not value free - before we judge who is an "effective" leader, we

must consider both the means used to achieve goals and the moral content of
those goals.

ONLINE LEADERSHIP: SOME SPECULATIVE THOUGHTS

         Most research has been conducted with “face-to-face” and “verbal” leadership
situations.

         What about online leadership? There is no “non-verbal” component (you cannot
“read” the other person via email).

         Instead, the structure of words in digital communications can influence reactions:
full sentences, phrases, USING ALL CAPS, formality, importance/urgency, style
(emoticons, jargon, abbreviations, etc). Messages can convey trust, status, task
directives, or emotional warmth.

         Writings skills are likely to become an extension of interpersonal skills in the
future.

Challenges to the Leadership Construct

Leadership as an Attribution

         Is leadership merely an attribution that people make about other individuals?

Substitutes and Neutralizers to Leadership

         Some argue that sometimes leaders are not even needed! Sometimes
individual, job, and organizational variables can act as substitutes for leadership
or neutralize the leader's effect to influence followers (ex = a highly structured
task)

Finding and Creating Leaders

         Can we use selection to help? (personality tests, interviews – match to situation)
          Training (can we train leadership? E.g. trust building, mentoring, situation-
analysis skills)

Summary and Implications for Managers

 Trust is important - as organizations are less stable, personal trust is key in

defining relationships and defining expectations
 Transformational leaders are in demand. Organizations want leaders with vision
and charisma to carry out the visions.
 Invest in leadership selection and training (and follow up with assessment
centers, courses, workshops, rotating job responsibilities, coaching, and
mentoring)

Chapter 14: Conflict and Negotiation

 
What are you responsible to learn?

 Define conflict
 Differentiate between the traditional, human relations, and interactionist views of
conflict
 Contrast task, relationship, and process conflict
 Outline the conflict process
 Describe the five conflict-handling intentions
 Contrast distributive and integrative bargaining
 Identify the five steps in the negotiation process
 Describe cultural differences in negotiations

What is conflict?

 A process that begins when one party perceives that another party has
negatively affected, or is about to negatively affect, something that the first party
cares about.
  This definition is broad and flexible

Transitions in Conflict Thought

 The traditional view

 All conflict is harmful and must be avoided
 The human relations view
 Conflict is natural and inevitable in any group –accept it
 The interactionist view
 It is a positive force and absolutely necessary for a group to perform effectively

Functional vs. Dysfunctional Conflict

 Functional = supports the goals of the group and improves its performance
 Dysfunctional = hinders group performance
 Task conflict = occur over content and goals of the group
 Relationship conflict = interpersonal relationships
 Process conflict = how work gets done

The conflict process

         Stage 1: Potential opposition or incompatibility (communication, structure,

personal variables)

         Stage 2: Cognition & Personalization (perceived conflict, felt conflict)

         Stage 3: Intentions (competing, collaborating, avoiding, accommodating,

compromising)

         Stage 4: Behavior (Party “A’s” behavior & Party “B’s reaction)

         Stage 5: Outcomes (increased or decreased group performance)

 
Negotiation

 Negotiation is a process in which two or more parties exchange goods or

services and attempt to agree upon the exchange rate for them

Bargaining strategies

 Distributive bargaining (resources are FIXED – a “win – lose” situation)

 Integrative bargaining (one or more settlements that can create a “win-win
situation)

The Negotiation Process

 Preparation and planning

 BATNA (Best Alternatives To a Negotiated Agreement)
 Definition of ground rules
 Clarification and justification
 Bargaining and problem solving
 Closure and implementation

Issues in Negotiation

 Personality Traits
 Gender Differences
 Cultural Differences
 Third-Party Negotiations

Mediators

Arbitrators

Conciliators
 Consultants

Summary and Implications for Managers

n     Conflict can be either constructive or destructive to the functioning of a group.

n     An optimal level of conflict:

–     prevents stagnation

–     stimulates creativity

–     releases tension

–     and initiates the seeds for change

n     Inadequate or excessive levels of conflict can hinder group effectiveness.

n     Don’t assume there's one conflict-handling intention that is always best.

–     Use competition when quick, decisive action is vital

–     Use collaboration to find an integrative solution

–     Use avoidance when an issue is trivial

–     Use accommodation when you find you’re wrong

–     Use compromise when goals are important

n     Negotiation is an ongoing activity in groups

Chapter 19: Organizational Change and Stress Management

What are you expected to learn?

 
  Describe forces that act as stimulants to change
 Summarize sources of individual and organizational resistance to change
 Summarize Lewin’s three step change model
 Explain the values underlying most OD efforts
 Identify properties of innovative organizations
 List characteristics of a learning organization
 Define knowledge management and explain its importance
 Describe potential sources of stress
 Explain individual difference variables that moderate the stress-outcome
relationship

Forces for Change

What are the main forces of change in organizations?

 Nature of the workforce

 Technology
 Economic Shocks
 Competition
 Social Trends
 Work Politics

Managing Planned Change

Change = making things different

Planned change = change activities that are intentional and goal directed

Change agents = catalysts who assume the responsibility for managing change
activities

Resistance to Change
Why do we resist change at work?

Individual Resistance

Habit, security, economic factors, fear of the unknown, selective

information processing

Organizational Resistance

Structural inertia, limited focus of change, group inertia, threat to

expertise, threat to established power relationships, threat to established
resource allocations

So, how do we overcome these?

Overcoming Resistance to Change

Education and communication

Participation

Facilitation and Support

Negotiation

Manipulation and cooptation

Coercion

*Note that politics often comes into play when we talk about change (political behavior
often determines the speed and quantity of change)

Approaches to Managing Organizational Change

 Lewin’s 3 Step Model

Unfreezing: Overcome the pressures of both individual resistance and

group conformity

Movement: To a new state

Refreezing: Stabilizing the change by balancing driving and restraining

forces

Action Research: Based on a systematic collection of data and THEN selection

of a change action based on what the analyzed data indicate

Organizational Development

A collection of planned change interventions – built on humanistic-democratic

values, that seeks to improve organizational effectiveness and employee well-being.
Can include: sensitivity training, survey feedback, process consultation, team building,
intergroup development and appreciative inquiry.

Contemporary Issues

Stimulating innovation (new ideas applied to initiating or improving a product,

process or service)

Creating a learning organization (an organization that has developed the

continuous process capacity to adapt and change)

Knowledge management (a process of organizing and distributing an

organization’s collective wisdom so the right information ges to the right people at
the right time

Note: Don’t forget to consider culture as you attempt to change your organization
(p. 576)

Work Stress and Its Management

 Stress is a dynamic condition in which an individual is confronted with an
opportunity, constraint, or demand related to what he or she desires and for which the
outcome is perceived to be both uncertain and important. Sources of stress include
environmental factors, organizational factors, and individual factors.

Consequences of stress include physiological symptoms, psychological

symptoms, and behavioral symptoms.

How do we manage it? Time management, exercise, relaxation training, and expanding
our social support network. “Wellness programs” in organizations seek to help
employees manage stress

Summary and Implications for Managers

 Change has been stressed throughout the textbook – leadership, motivation,

organizational culture, etc.
 The real world is often turbulent and fast changing – organizations need
employees and systems to change in order to compete
 Managers and organizational structures often lead change
 Stress, in and of itself, need not imply lower performance. Low to moderate
amounts are generally helpful in increasing employee intensity, alertness, and
ability to react. (However, even low levels of stress tend to lower job satisfaction
levels)
 However, long term, high levels of stress can reduce performance – try to
manage stress