Module 1

INTRODUCTION TO ORGANIZATIONAL BEHAVIOR

Module Introduction
Since the period of Industrial Revolution, the study of organizational behavior has been
viewed as an essential tool in managing the organizations. This aims to learn how people
behave in the workplace and how these behaviors affect the organization. This chapter primarily
focuses on the overview of what organizational behavior is and why it is deemed important in
determining organizational effectiveness. It shall also examine how the human capital can be a
source of competitive advantage of an organization.
The introduction to human behavior in organizations shall bring about a better
understanding of the course and shall illustrate the roadmap for the topics to be discussed along
the study of this course.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Define organization and organizational behavior;
2. Describe how organizational behavior determines the effectiveness of an organization.

BASIC CONCEPTS OF ORGANIZATIONAL BEHAVIOR

Definition of Organization
So as to facilitate efficiency and effectiveness in learning the basic concepts of
organizational behavior, we begin first with the nature of organization. The term ​organization is
defined as a collection of individuals who work together, having a coordinated system, towards
the attainment of a common goal.
Organizations can be characterized by the following features :
(1) Network of individuals. An organization consists of individuals forming relationships to
get things done and problems be solved.
(2) System. This feature is related to the first one, whereby everyone in this network of
individuals follows a coherent and well-defined structure and processes.
(3) Coordinated activities. In order to achieve a common goal, the organization integrates all
the various activities. This also facilitates efficiency as regards the use of resources and
allows the individuals and groups to perform effectively.
(4) Division of Labor. Activities are grouped according to the job family. Thus, for the
organization to be able to accomplish these several functions, activities are divided into
departments. Each department is often headed by an expert of a given field.
(5) Goal Orientation. This serves as the primary reason why an organization exists. There
must be a goal or a common purpose. For example, a supermarket is established to
achieve a goal of creating profits and at the same time to provide convenience and one
stop shop for all the grocery and household goods.
(6) Continuity over time, regardless of membership change. An organization affords to
operate even if there is a change of its members. Since there is an established system
with a solid foundation of its structure and processes, new members may continue to
manage and still pursue with the achievement of the organizational goals.
 Generally, an organization can be considered effective when it is able to achieve its
goals.

Definition of Organizational Behavior

In any organization, managing its resources has always been part of a strategy to attain
its goals, be it financial resource, technological resources, and human resources. Perhaps,
some organizations consider this as a challenge in today’s fast-paced environment. Human
resource is undeniably one of the main resources in the organization. Imagine an organization
without its people as members - what then is an organization?
Various researches have proven that organizational effectiveness also depends on the
effective performance of its employees. Hence, the management takes the challenge in
understanding the behavior of individuals and groups in the organization. This undertaking then
became a field to study in behavioral sciences in the context of management and organizations.
Organizational Behavior can be defined as the study of how people behave and act in
an organizational environment.
Organizational behavior focuses on how the individuals and groups behave in the
workplace and how these behaviors then affect the organization. Understanding their behavior
is important in improving organizational effectiveness and at the same time enhancing positive
effects to the employees in working in a given organization. For instance, an employee who is
not motivated to do his/her job well results in lower productivity; when he/she is not happy
working with other members of the organization, employee satisfaction is likewise at stake. On
the other hand, one employee who gets rewarded after accomplishing a required report tends to
perform better the next time he/she is asked to do jobs related to it. Explaining and predicting
behavior within an organization is the bottomline of organizational behavior. During the course
of discussion of the entire concepts of human behavior in organization, the readers shall come
across several theories. This shall include but not be limited to theories in learning, personality,
motivation, and leadership.

The Organizational Behavior Model: Individual, Group, and Organization

Examining organizational behavior includes three levels, i.e. individual level , group level
and organizational level as a whole. Through this, we may identify what causes people to
behave individually and collectively. Organizational behavior allows understanding of the actions
of people in the workplace. Through the concepts and theories of OB, the management will
know what makes and why individuals gets motivated to be part of an organization, why they
feel happy or bad in terms of their satisfaction in the work environment, why one performs more
productively than the others, why some reach their retirement age in the company, while others
leave after quite some time, why there are groups opposing the management, and how
organizations do deal and react to changing environment. Basically, organizational behavior
helps the management in recognizing and analyzing how the individual and group
characteristics, workplace scenarios and the organizations themselves affect how people feel
about and make consequent actions in the workplace.
 Exhibit 1.1
Level of Analysis in Organizational Behavior
(George and Jones, 2012)

The Individual. When there is a fit between individual needs/values and organization’s
expectations, there is a reduced likelihood of frustrations and conflict as a result of their
behaviors. Hence, the management must ensure that they are able to integrate the individual
and organization. This will then foster a satisfactory work environment while attaining the
organizational goals as well.
The Group. All organizations are composed of groups. Groups are generally composed
of two or more individuals working together and influencing one another as they interact.
Informal groups are also formed within the organizations given the nature of people having
social needs - feeling of belongingness. In today’s work environment, groups are turned into
teams. ​Teams are groups of individuals who work together, having their respective roles and
are performing for a common goal. A group of basketball players becomes a team when a
specific and common goal brings them together, e.g. to win a game as one. Each is given a role
to perform during the entire game. On the other hand, some assemblies for a show are not
considered as teams. They are gathered together as a crowd but they only interact to a very
little extent. Goals are not even specific.
Group members as time passes by develop relationships between and among them,
resulting in influences and rise of group leaders. Recognizing the existence of groups in the
organization can help the management in analyzing group pressures that further affect the
individual performance. When groups are well-managed, business transactions are smoothly
being done, e.g. planning, organizing, and coordinating.
The organization. One feature of an organization is the system - there follows the
existence of a formal structure. And formal organizations are composed of individuals and
groups interacting within the structure. The hierarchy in the structure guides the entire
organizations on how the communication and information flow and how its people carry out their
activities. In relation to organizational behavior, the management systems, structure pattern and
leadership styles affect the behavior of employees. When one member of the organization feels
that there is a bottleneck, it could dramatically affect the way an employee performs in the
workplace.
 Very true that individual, interpersonal and organizational factors define the employee
value in the workplace.

Exhibit 1.2
Factors and Outcomes of a Strategic Approach to Organizational Behavior
(Hitt, Miller and Colella, 2012)

Figure 2 shows the factors and outcomes of a strategic approach to organizational

behavior. Individual factors include one’s personal values and capabilities such as motivation,
satisfaction, ability to learn, locus of control and personality, skills and attributes, and so on. For
interpersonal factors, quality of leadership, communication, role relationships and decision
making in groups and teams are elements affecting how individual capacities are fully utilized in
the organization. Lastly, important organizational factors like formal structures, policies and
culture are recognized to influence the employee attitudes towards creation of positive
outcomes. All these factors result to the outcomes coined as productivity, satisfaction and
organizational success. ​Productivity is defined as the output of individuals and groups.
Satisfaction is related to the feelings of individuals and groups towards their work and work
environment. ​Organizational Success refers to the organization’s competitive advantage and
financial performance. Value of people is gleaned in employee productivity, satisfaction and
organizational success. (Hitt, Miller and Colella, 2012)
Another important aspect to consider in organizational behavior is the concept of
psychological contract. This is an unwritten and silent contract between the individuals and
the management of the organization. This is the implied give-and-take relationship between the
two. The psychological contract recognizes the needs and expectations by both parties. It is
significant in terms of the extent whereby the two parties have perceived and respected the
agreement as fair and just. Some employees do not only leave the organization due to the
breach of employment contract, but because there are also instances that there were problems
arising regarding the psychological contract, even if it is actually not a written agreement.
ORGANIZATION AND ITS HUMAN CAPITAL
Organizational behavior can be viewed as a means to create a competitive advantage
through its human resources. Knowledge of organizational behavior allows managers to
rightfully lead and govern the organization and its people. Equally important, employees who
have a working knowledge of organizational behavior help them to value their work and
workplace, leading to a positive behavior in the organization for their goal achievement.

Competitive Advantage through Human Capital

In today’s business landscape where competition is always present, it is important for an
organization to identify its competitive advantage. This is to ensure survival in a given industry.
Competitive advantage is something unique about the organization and cannot be easily
copied by any other competitor. Simply, this is the edge over the others! Often you’ll hear
companies claiming that their latest equipment, technological advancement, marketing
strategies, reputation, company image and the like are the sources of their competitive
advantage. Both tangible and intangible resources can be a source. Hence, we now look at the
human resources as a competitive edge.
Human capital ​is simply the sum of an individual’s KSAOs - knowledge, skills, attributes
and other general characteristics. Human resources, unlike any other form of assets, do not
depreciate. In fact, through experiences and training, they are even becoming more developed.
Human capital as a source of organization’s competitive advantage can be determined
by its value, rareness, and imitability. This was from the Value-Rareness-Imitability and
Organization or VRIO framework of the On Becoming a Strategic Partner: The Role of Human
Resources in Gaining Competitive Advantage (Barney and Wright, 1998)
Human Capital Value​. It is the extent to which individuals are capable of supporting
strategy for competing in the marketplace. For instance, a teacher who is not properly trained on
pedagogy will not be able to deliver quality education, thus, he/she will not add value to the
academe as his/her organization. Human resources can add value to the organization by
ensuring that the HR functions and practices are strategic, e.g. lowering the costs and
increasing the revenues.
Human Capital Rareness​. It refers to the extent to which employees’ KSAOs are
unique in the industry where their organization belongs. Rare talents are difficult to find, hence,
it becomes a source of a competitive advantage. In contrast, those talents of a certain value that
can be found in any existing organization may not be considered and edge because it is
common to anyone. A company through its HR practices like training can create a
homogeneous human resource and exhibit rare characteristics to gain a competitive advantage.
 Exhibit 1.3
VRIO Framework
Adapted from Barney and Wright (1998) by Hitt, Miller, Collela (2012)

Shown in Figure 2 is the VRIO Framework. It is the matrix whereby we identify whether
the human resources in the organization have value, are rare and are difficult to imitate and are
supported by effective management. If the answer to all these criteria is yes, then the
organization would reflect a sustained competitive advantage and above normal performance.

Trust and Pixie Dust: An HR Exec’s Disney Dream

Disney CHRO Jayne Parker reflects on how HR is helping continue to make magic.

Source : Retrieved from ​https://hrexecutive.com/trust-and-pixie-dust-an-hr-execs-disney-dream/​ , July 28, 2020.

Jayne Parker never intended to have
a decades-long tenure working with
the Walt Disney Co. In the late
1980s, Parker was building a career
as a consultant in organizational
development and structural design
when a headhunter came calling to
recruit her for a “large entertainment
company in Central Florida.” A native
Floridian, she knew what that meant.
Parker joined Disney in 1988, tasked
with leading training programs that
shared with corporate leaders
Disney’s secrets to success for
people management and guest
services—which ultimately laid the
groundwork for the creation of the
company’s Disney Institute. Two
years later, she was asked to
develop a global-leadership program.
“Every couple of years,” Parker says,
“I was tapped on the shoulder by
someone who said, ‘We’d like you to
go do this.’ I was having a lot of fun,
and I gained so much admiration and
respect for the brand—who we are,
what we do and how we do it.”
Before she knew it, Parker had spent
20 years in the company’s theme
parks and resorts unit, holding titles
such as director and vice president
of organization improvement and
head of HR for the division. In 2009,
she was given her biggest
assignment yet: executive vice
president and CHRO for the entire
Walt Disney Co. (Disney ranked 33rd
on the ​2019 ​Nation’s 100 Largest
Employers​ list​.)
The internal mobility and deep
alignment with the company values
that Parker herself experienced are
among the priorities Disney has for
its entire 200,000-strong employee
population, a workforce that has
seen tremendous changes in recent
years. With a new CEO in the
forecast a few years down the line
and the company about to complete
its largest acquisition to date, the
pace of transformation doesn’t
appear to be letting up.
“This is a place where our HR
leaders are getting to do work in the
next few years that is truly
once-in-a-lifetime,” says Parker.
Ongoing Evolutions
How Disney’s HR team tackles future
change is largely predicated on an
internal change that was ushered in
just over five years ago. Prior to that
time, HR operations were segmented
by Disney’s business units—a format
that often led to overlap.
For instance, HR representatives
from the theme-park division would
be at the same MBA-recruiting event
as HR professionals from other
Disney units, like Walt Disney
Studios and ESPN.
“We were competing with ourselves,”
she says. “We had to present Disney
as one company with many
opportunities in order for graduates
to understand that they can have a
very interesting and varied career
path at the Walt Disney Co.”
In 2013, Disney launched its Centers
of Excellence, covering seven HR
focuses, ranging from talent
acquisition to diversity. In what
became known as the AND Model,
each head of HR would maintain his
or her position while also taking the
helm of a Center of Excellence.
Since her background included time
as a head of HR for a business unit,
Parker says, she had the unique
perspective of being able to
understand the individualized HR
needs of the units. The day-to-day of
overseeing the 100,000-plus mostly
frontline and largely unionized
workers in the theme parks and
resorts, for instance, differed
drastically from the HR needs of the
company’s studio division. However,
commonalities also existed, and
leadership had to carefully consider
both during the centralization.
Talent acquisition is one area that
has seen significant impacts from the
shift. The talent-acquisition center
offers recruiting support across all
divisions, while a single technology
platform was designed to facilitate
online applications
companywide—demonstrating brand
continuity and showing candidates
the opportunities for internal mobility,
while streamlining processes
internally.
“We had different talent-acquisition
practices [among the business
units],” Parker says. “Now, we work
from common platforms and,
whether you work in the Center of
Excellence or in a business segment,
you have access to the same
information and the same
candidates, which has really helped
us.”
Being able to continuously evolve
has been key—Parker notes there
have barely been six months without
a change to at least one of the
centers. More than five years
removed from the centralization, she
adds, heads of HR at the business
units are more often suggesting
things they think can be done
commonly, bringing more into the
fold of the Centers of Excellence.
The collaboration demonstrated
through the development of the COE
model mirrors that of another recent
evolution: a strategic reorganization
of the business units announced in
March 2018. The new format
consolidated direct-to-consumer
services, technology and
international media operations into a
single, worldwide business, into
which elements of media networks
and studio entertainment also
moved. Meanwhile, parks and
resorts and consumer-products
operations also combined.
The concept was conceived by CEO
Bob Iger, who worked with the
executive team to refine it. When the
move was unveiled, Iger said in a
press statement that the effort aimed
to strategically position “our
businesses for the future, creating a
more effective global framework to
serve consumers worldwide,
increase growth and maximize
shareholder value.”
Shortly after announcing the
reorganization, Iger attended a town
hall Parker was hosting, answering
questions from global HR
employees.
“[Iger] wanted the whole HR team
worldwide to hear from the CEO
about his hopes, his dreams and his
objectives for the reorganization,”
Parker says. “Every single person in
the company was in some way
impacted by this organizational
change so, in order for it to be
successful, we felt we needed
everyone at Disney to understand
why this change was necessary and
how it impacted them.”
Change management is nothing new
for a company that has undergone
as many transitions as Disney.
However, Bill Capodagli,
management consultant and author
of ​The Disney Way: Harnessing the
Management Secrets of Disney in
Your Company, o ​ bserves there are
certain core values that have always
driven the organization’s work.
In particular, he says, the
organization has upheld “the
underlying values that Walt instilled
in his company decades
ago—innovation, quality, storytelling,
mutual respect and trust. I tell my
clients that, when values are deeply
rooted in a company, they rarely
change; in fact, the organization
changes in order to protect their
values.”
Investing in Employees
That idea is evinced through a highly
impactful employee benefit that
launched last year.
In August, the company announced
the creation of Disney Aspire, a
groundbreaking
education-assistance program open
to its 80,000 hourly workers.
Employees can access a wide range
of degrees and certifications—all
cost-free. With a $150 million
investment in the program’s first five
years, Disney is paying all tuition
upfront and reimbursing employees
for books and other fees. The
educational programs, offered at a
vast network of schools in both
online and in-class formats, do not
need to relate to employees’ current
work at Disney.
Conceived by HR—and quickly
approved by Iger, who proposed
doubling its initial budget—Disney
Aspire was developed with a
long-range focus for employees,
Parker says.
“In reality, all of those 80,000 people
are not always going to work for the
Walt Disney Co., so we can have a
higher purpose—equipping our
employees to be successful and
helping them create the futures they
want,” she says.
Disney partnered with Guild
Education to design and operate the
program. Guild CEO Rachel Carlson
says, compared to some companies
the organization works with, which
may only have a handful of key job
titles, Disney’s hundreds of positions
posed a unique but exciting
challenge, as they sought to create
opportunities to suit a range of
interests at all education levels.
“That meant we had to work together
as a team to think about the diverse
needs of that broad employee base,”
Carlson says. The depth and breadth
of the employee population is among
the reasons Disney Aspire is so
comprehensive—employees can
pursue college and post-grad
degrees, GED, vocational training,
English-language learning and more.
To help students navigate the
complexities of returning to school,
Guild offers personalized coaching
throughout the journey—from
selecting a school and program to
filing the application all the way
through to degree completion.
“We believe our coaching model is
paramount to the success” of
participants, Carlson says.
In rolling out the program, Parker
fielded many questions from
employees who thought the initiative
was too good to be true. Once those
notions were dispelled, she says,
she spent many an evening
reviewing reports that contained
firsthand reactions from workers
about Disney Aspire, which she
described as an emotional
experience.
“I’m so proud of the impact this is
having—not necessarily the impact it
will have on the company, but it’s the
impact this will have on our
employees’ lives,” Parker says.
Since Disney Aspire launched, more
than 23,000 eligible employees have
created accounts, expressing
interest in taking advantage of the
program.
The first employee to enroll recently
completed a trade certification, and
students have applied to and
enrolled in the entire span of
program offerings. On the college
level, there has been strong
participation in courses focused on
organizational leadership,
cybersecurity, business,
communications and finance.
Carlson says the early indicators are
“tremendous.”
“We’ve seen unmatched enthusiasm
amongst Disney employees for this
program,” she says. “We’ll know
we’re successful as we start to see
graduates earn diplomas and
channel their learning into career
advancement and increased
economic opportunity—at Disney or
beyond.”
Capodagli says he advises clients
that they can’t attain Disney-caliber
customer service—it consistently
ranks at the top of global lists for
corporate reputation—without
employee satisfaction. And one of
the best ways to achieve that is by
providing ongoing learning
opportunities.
“If you watch a group of 3- or
4-year-olds on the playground, their
joy and excitement for discovering
new things is contagious,” he says.
“In the adult world of work,
continuous learning experiences can
serve to rekindle the exuberance of
youth.”
Education is also at the heart of
another Disney initiative, CODE:
Rosie—which stands for Creating
Opportunities for Diverse Engineers
and is a reference to World War II
icon Rosie the Riveter. Launched in
2016, the program teaches women
across the company how to code,
with no tech background needed.
Participants undergo three months of
education and then a year of
real-world experience. The company
holds the participants’ jobs for them
in case they want to return after
completing the program, though
most decide to funnel into coding
jobs at Disney, Parker says.
Twelve women participated in the
pilot and 20 are enrolled in the
second round, which kicked off in
April.
“People can see a bright future for
themselves, and that’s because of
their relationship with the Walt
Disney Co.,” Parker adds. “That’s
what’s made this possible.”
Looking Forward
The focus on diversity embedded in
CODE: Rosie will continue to be at
the heart of Disney’s work in the
coming years, Parker says.
“In order for us be successful, we
believe our employees have to
reflect the audiences we’re here to
serve, and our audiences are very
diverse,” she says.
To that end, Parker helped the
company achieve gender equality in
its global workforce and appointed
the company’s first chief diversity
officer in 2011. The HR
centralization, she adds, also has
helped the company focus on
diversity in its hiring practices, as
applicant data are more readily
available across the company.
Developing diverse leaders from
within the ranks has also been a
priority, with a range of mentorship
and development programs targeting
high-potentials for executive
leadership.
On the leadership front, the company
is facing a significant shift as it
prepares for the 2021 retirement of
Iger, CEO since 2005.
Though Parker didn’t share details of
a timeline for identifying Iger’s
successor, she cites the importance
of the company’s
leadership-development focus and
its culture that encourages talent
movement.
“One of Disney’s strengths is
growing talent and helping people
see their career opportunities across
divisions,” Parker says. “Employees
can make a career that
encompasses incredibly different
experiences, which is motivating
developmentally and is also the
greatest form of stability for future
succession-planning.”
Capodagli predicts a leader with a
long-range focus similar to Iger’s
would be critical to continuity.
“The biggest unknown,” he adds, “is
whether or not Bob’s successor will
follow in his footsteps as a long-term
strategist and values-driven leader.”
Another change coming down the
pike is Disney’s acquisition of 21st
Century Fox. The deal was inked last
summer and received EU regulatory
approval in the fall, at which time Iger
said he was optimistic it will close
before June 2019. It’s the largest
acquisition yet for Disney, which
already has a string of major
acquisitions under its belt: Marvel,
Lucasfilm and BAMTECH Media,
among many others.
“We’re a company where the idea of
looking to expand opportunities for
growth through acquisitions is just
part of our DNA,” Parker says. “We
have created an expertise in HR of
working through what happens
pre-announcement of an acquisition,
after the announcement and—maybe
most important—have developed
expertise in the integration work
that’s required after the close of
these acquisitions.”
Parker says such work requires a
deep understanding of the business
rationale for the acquisition, one that
acknowledges it’s not just motivated
by intellectual property.
“We have to make sure we study the
companies we’re acquiring and
appreciate what’s made them so
successful,” she says. “In doing so,
we can understand what they’ve
done better than we have, learn from
their strengths and apply that to our
businesses.”
Steering the Disney workforce
through to the other side of the
acquisition will be among the tasks
facing HR in the coming years.
Navigating a rapidly shifting
marketplace—for instance, Disney is
gearing up for the launch of its own
streaming service later this year—will
also take center stage, Parker says.
“How and where consumers and
viewers want to be entertained is
changing, and that’s an opportunity
for us in HR to help our business
executives make those shifts, to
make sure we’re the best competitor
in a changing landscape,” Parker
says, noting that, with 30 years at
Disney now in the rearview mirror,
her experience has shown her that
the greatest challenges she faced in
her roles have also been the most
fulfilling experiences. “I’ve had a
chance to do the work I’ve dreamed
of doing.”

End of Chapter Test

Chapter Review.
I. Identification.​ Identify what is being referred to in each of the following statements.
__________________1. It refers to the actions of individuals and groups in an
organizational context.
__________________2. It is the sum of skills, knowledge, and general attributes of
people in the organization.
__________________3. It is defined as the collection of individuals who work together,
having a coordinated system, towards the attainment of a
common goal
__________________4. These are the outputs of the individuals in the workplace.
__________________5. It relates to the feelings that individuals and groups have about
their work and the workplace.

II. Essay. ​Briefly discuss the common features of an organization in not more than 8
sentences. Cite some examples. (Items No. 6-15)

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Short Case Study.
Organizational Behavior Case: ​Conceptual Model: Dream or Reality? ​(Luthans, 2012, p.30)
Hank James has been section head for the accounting group at Yake Company for 14
years. His boss, Mary Stein, feels that Hank is about ready to be moved up to the corporate
finance staff, but it is company policy to send people like Hank to the University Executive
Development Program before such a promotion is made. Hank has enrolled in the program; one
of the first parts deals with organizational behavior. Hank felt that after 14 years of managing
people, this would be a snap. However, during the discussion on organizational behavior, the
professor made some comments that really bothered Hank.

The professor said:Most managers know their functional specialty but do a lousy job of
managing their people. One of the problems is that just because managers have a lot of
experience with people, they think they are experts. The fact is that behavioral scientists are just
beginning to understand human behavior. In addition, to effectively manage people, we also
have to somehow be able to better predict and control organizational behavior. Some models
are now developed and research is accumulating that we hope will help the manager better
understand, predict, and manage organi- zational behavior.

Hank is upset by the fact that his professor apparently discounts the value of experience
in managing people, and he cannot see how a conceptual framework that some professor
dreamed up and some esoteric research can help him manage people better.

1. Do you think Hank is justified in his concerns after hearing the professor? What role can
experience play in managing people?

2. What is the purpose of conceptual frameworks such as those presented in this chapter? How
would you weigh the relative value of studying theories and research findings versus
“school-of-hard-knocks” experience for the effective management of people?

3. Using the conceptual framework presented in the chapter, how would you explain to Hank
that this could help him better manage people in his organization?

References
Books

Black, S., Gardner, D. G., Pierce, J. L., & Steers, R. (2019). ​Organizational Behavior​.
OpenStax Rice University.

George, J. M., & Jones, G. R. (2012). Understanding and Managing Organizational

Behavior (6th ed.). Pearson Education Inc.

Hitt, M. A., Miller, C. C., Colella, A., & Triana, M. (2017). ​Organizational Behavior (5th
ed.). Wiley Global Education
 Hitt, M. A., Miller, C. C., and Colella, A. (2012). ​Organizational Behavior (3rd ed.). Wiley
Global Education

Luthans, F. (2010). ​Organizational Behavior​(12th ed.). McGraw-Hill Education.

Mullins, L. J. (2010). ​Management and Organisational Behaviour (9th ed.). Pearson

Higher Ed.

Schermerhorn Jr., J. R., Hunt, J. G., Osborn, R. N., & Uhl-Bien, M. (2010).
Organizational Behavior​(11th ed.). Wiley.

Electronic Sources

Retrieved July 24, 2020, from

https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1149&context=cahrswp​,.

RetrievedJuly 28, 2020 from

https://hrexecutive.com/trust-and-pixie-dust-an-hr-execs-disney-dream​/
 Module 2
GLOBALIZATION, DIVERSITY AND ETHICS

Module Introduction
It is an inescapable fact that the emergence of concerns and issues relating to the
increasing globalization, existence of diversity in the workplace and ethics in a global context
are already part of every business organization today. Organizational behavior plays a
significant role in addressing how the individuals and groups can cope up to this trend. OB also
aims to look at these concerns as an advantage rather than a challenge.
Globalization demands the human resources to be more competitive beyond their
national borders. As globalization opens the boundaries between countries, this leads to the rise
of a more diversified workforce, embracing cultures and individual differences within the
international firms. Consequently, diversity and globalization had led to the concept of ethics
and ethical behavior in organizations. This concern has been less discussed and with only a
little attention in organizational behavior. But now, the emerging perspectives on ethics have
brought up moral issues and choices as well as the deals with right and wrong behaviors. As
you go along the chapter, you will get to understand how these three concepts go together in
the context of human behavior in organizations. Moreover, these can now be viewed as issues
to make the management rethink about their approaches to their organization’s operations and
workforces.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Explain the strategic importance of organizational behavior in a global context
2. Explain diversity and diversity management
3. Discuss emerging perspectives on ethics

ORGANIZATIONAL BEHAVIOR IN A GLOBAL CONTEXT

Today, globalization is one of the major environmental aspects that creates a huge
impact on organizations. This paradigm shift has also challenged the organizations to respond
both in internal and external environments. In the context of OB, we understand that individuals
think, behave and act differently around the world. We may have similarities but have
differences as well. This is actually related to the next topic in this chapter, i.e. diversity.
Let us first discuss ​globalization​. This refers to the internationalization of business
organizations leading to a global economy. It is a trend whereby the national boundaries
become less relevant.

Globalization and Foreign Job Assignments

The increasing globalization has paved way to the foreign job assignments of its human
resources. Multinational firms assign employees to operate the businesses across countries.
Individuals who are tasked to work outside their home countries are known as ​expatriates or
“expats”. For expatriates, this is an exciting experience as an opportunity for learning and
growth but at the same time, is a challenge to take. Common problems encountered by the
expats include ​culture shock or the stress brought about by the individual’s difficulties and
challenges in coping with the requirements of life outside their home country. This is particularly
related to how one should behave and act in a new country.
 Culture, ​as defined, is a way of life, varies from one country to another. Some
acceptable behaviors in a given country may not be appropriate or morally right to the culture of
other nations. Aside from the challenging experience through a foreign job assignment, this can
also be considered as a rewarding one. Working with individuals coming from different countries
around the world is an opportunity for learning. Differences may be apparent, but so as new
ideas and creativity.
Cultural effects on international working relationships can be viewed through
high-context and low-context cultures. Countries with ​high-context cultures ​tend to
communicate and understand individuals through contextual elements. They consider looking at
the underlying meaning, gesture and tone in a message. They focus on valuing personal
relationships and trust. Most Asian countries like Korea, China, Japan and Philippines. On the
other hand, countries like Germany, the United States of America and Canada exhibit
low-context cultures. ​This means that they communicate through an established system. They
prefer no room for confusion. The purpose of low-context cultures is to make a message clear to
everyone so that it will not slow down the process. They value messages in black and white
rather than contextual clues.
In addition, there are some more related aspects of culture such as monochronic and
polychronic time orientation. ​Monochronic time orientation is manifested by individuals who
prefer working on tasks one at a time. They do not engage in multitasking and do not divert
attention from a planned task to minimize interruptions. Contrary to that, individuals with
polychronic time orientation work well even with multiple tasks at a given time. They have
more flexible plans and are not distressed by interruptions.
In most cases, individuals who differ as to high-context and low-context cultures have
difficulties dealing with one another; the same is true to those who work with monochronic and
polychronic time orientation. However, these issues may be resolved through proper training as
regards cultural differences. The outcome of the said training is known as cultural intelligence. It
is an individual’s ability to understand and adjust with the behaviors of people outside his/her
culture. For example, individuals may opt to learn foreign languages or may prefer working in
teams.

International Participation : Multidomestic, Global and Transnational Firms

Organizations that engage in foreign markets have more opportunities for growth yet
require understanding of which international approaches and related organizational
characteristics to consider.

Multidomestic Firms
These are organizations that utilize multidomestic strategy. Firms operate in such a way
that they respond to the needs in particular of each country. Products are tweaked to suit the
preference of a specific market. Nestle is a classic example of a multidomestic firm. It uses
specific and unique sets of strategies like marketing and sales approach. It caters to the local
taste of a given country and offers different products for different markets. In general,
multidomestic firms have low integration but of high responsiveness. Company employees then
have less chances of being deployed outside their countries.
Global Firms
These firms are characterized by high integration and low responsiveness. The strategy
of the organization is to offer standards and common products across different countries and
regions in the world. They seek to maintain centralization in the mother country while
maximizing efficiency through reduced costs. Global firms oppose multidomestic firms.
Commonly, pharmaceutical and luxury goods companies belong to this type of firm. These
firms often send expatriates across the organization.

Exhibit 2.2
Bartlett and Ghoshal’s Typology of Multinational Companies:
Global, Transnational, International and Multidomestic Strategy

Transnational Firms
Transnational firms use transnational strategy in becoming highly responsive to specific
needs of a country and at the same time, high in global integration. These firms somehow
exhibit the characteristics of both multidomestic and global firms. They try to tailor fit the
products to some degree to cater the needs of various countries but also seek to standardize to
some extent for cost efficiency. International travels and meetings and foreign job assignments
are also evident in this type of firm.

International Firms
These firms are not actually considered strategic as they have low levels of local
responsiveness and global integration. This is much known as an exporting strategy.
Dimensions of National Culture
One of the significant contributions to organizational behavior made by Geert Hofstede,
a social scientist, is the four dimensions of culture, i.e. Power Distance, Uncertainty Avoidance,
Individualism and Masculinity. This resulted from his research among 40 countries. Several
scientists and researchers followed after him and identified some more dimensions of national
culture.
Researchers under The Global Leadership and Organizational Behavior Effectiveness
(GLOBE) Project generated nine units of measurement or Cultural Dimensions. This research
was made across 162 countries.
1. Power Distance​. It refers to the degree to which the power and status privileges are
accepted by people to be unequally distributed in the society. Countries that score high
on this dimension are those who expect a more centralized or autocratic leadership.
Russia is one example for high power distance. Members of this country respect their
titles and status.
2. Uncertainty Avoidance​. It refers to the degree to which people do not feel like taking
risks in unpredictable outcomes. In high uncertainty avoidance countries, people focus
on following specific rules and put everything in order. Germany and Japan are countries
that score high on this.
3. Assertiveness. Hofstede identified this as “masculinity” in his four dimensions of culture.
This refers to the degree to which people are aggressive and confrontational. It reflects
the strong personality of individuals in high assertiveness countries. Often, those who
have low-context cultures score high on assertiveness. Germany and the United States
are high assertiveness countries as opposed to the Philippines where people are asked
and consulted before making decisions.
4. In-group collectivism​. It refers to the degree to which people take pride belonging to
their organizations and families. China scores high on this as they exhibit a strong
distinction between the members and non-members of their group or family.
5. Institutional Collectivism​. It refers to the degree to which integration of groups and
organization is being encouraged. This means that countries who have high institutional
collectivism oppose individualism. Individualism is one dimension identified by Hofstede
as the degree to which individuals feel good when they are self-reliant and focused in
their personal goals. Germany and Italy have low institutional collectivism but score high
on individualism. People in these countries are rewarded for their personal efforts and
outcomes. Japan and Singapore on the other hand have high institutional collectivism.
6. Performance Orientation. It refers to the degree to which excellence is recognized and
being rewarded. Innovation and competitiveness are encouraged in countries with high
performance orientation. They appreciate excellent performance thus, they value the
training and reward system. Singapore and the United States score high on this, while
Russia has low performance orientation.
7. Humane Orientation​. It refers to the degree to which people value fairness, kindness
and altruism in the country. The Philippines is one nation with high humane orientation.
Singapore and Germany on the other hand have low humane orientation.
8. Gender Egalitarianism​. It refers to the degree to which equality for men and women is
actualized. When gender egalitarianism is evident in a country, women are given
opportunity to achieve power and positions. Japan scores low on this. Women in this
country are less recognized and have lower status as regards work.
 9. Future Orientation​. It is the degree to which individuals value investing in plans for the
future. People value long-term gains in countries with high future orientation. Russia
scores low on this while Canada, Switzerland and the Netherlands are high on this.

In general, global business must understand that the functions and practices in
managing human resources are common, but the approach on how these will be performed
shall vary from one country to another. Effective management ensures that they are attuned
with their cultural surroundings.

MANAGING DIVERSITY IN THE WORKPLACE

Diversity: What is it?

The differences between and among individuals and groups are often viewed as sources
of conflict in the workplace. However, given the fact that everyone is unique and people are
heterogeneous, effective managers now consider diversity as an advantage. Esty, et.al defined
diversity ​as acknowledging, understanding, accepting, and valuing differences among people
with respect to age, class, race, ethnicity, gender, disabilities, etc.
A huge factor that brought about diversity is the changing demographics. These changes
are best exemplified with the changing role of women in the society and new family roles, equal
employment opportunity and organizational restructuring. Moreover, technological advancement
and globalization also led to new workplace practices.
Organizations who are able to manage diversity make it beneficial to both employer and
employees. Embracing diversity minimizes discrimination and consequent legal liabilities.
Diversity promotes a continuous learning environment, creativity and innovation in the
workplace.

Barriers to Achieving Diversity

Although managing diversity has been advantageous to groups and individuals,
organizations still encounter problems related to roadblocks and obstacles in creating an
inclusive workplace. The barriers and challenges to achieving diversity include:
1. Prejudice and Discrimination​. Prejudice is an unjustified and negative attitude of
individuals towards others who belong to social or cultural groups outside their own.
Example of this is racism and sexism. Prejudice influences the way a person thinks
about a certain group. Prejudiced views, if not at all times, often lead to discrimination.
Discrimination is the negative behavior resulting to unfair treatment towards people
based on individual’s social or cultural membership. Some prejudiced persons do not act
their attitudes. But for those who do, discrimination is manifested on three common
examples - racial discrimination, age discrimination and gender discrimination. For
instance, a married woman was not promoted in her job because the management
thinks that the roles of women at home are more prioritized than job. Another example is
an old-aged man who was not hired for the job without looking at his credentials and
simply decided on the grounds of age. Prejudice and discrimination are roadblocks to
diversity. Aside from it results in injustice and lawsuits, these barriers prevent an
organization from fostering creativity and innovation from diversity.
 2. Stereotyping. It refers to the generalized beliefs towards individuals belonging to a
certain group. This means that a person is judged based on what is perceived about a
given group. For example, black people are viewed and generalized as poor and
underqualified. People with Disabilities are considered weak. Whenever people think
that members of a group have the same characteristics, this is already a pre-judgement,
without seeing whether a certain member is really of the same characteristics with their
group. Thus, stereotyping becomes a barrier to diversity and stereotypes end up with
false judgements.
3. Differences in Social Identity. ​Social identity theory was proposed by psychologist,
Henri Tajfel. He defined social identity as a person’s sense of who they are based on
their group membership. In social identity theory, individuals take pride as they belong to
a certain group. The world was divided “them” and “us” based through a process of
social categorization (i.e. we put people into social groups). Religion, nationality, sexual
orientation and ethnic groups are examples of social groups. Affiliation to any of this
boosts self-esteem of an individual which sustains the social identity. However, the
differences in social identity became a barrier to diversity. When an individual’s social
identity is too prominent, the person becomes more aware of being different from the
rest of the group where he or she does not belong. Thus, the situation may result in
stress and dissatisfaction. Similarly, those from minority groups feel stressed and fear
about losing their social identity when the majority seem to indirectly “check their identity
at the gate”. Hence, people who belong to a common group think that they are better
than those who do not. This now can also result to stereotypes and discrimination.
4. Power Differentials. Power often comes from status and expertise of an individual.
When one seems to be of higher level than the other, say in terms of knowledge and
skills, he or she may gain individual power. This actually makes no problem when ethical
behavior is considered by those people in power. Although, power differentials often
exist and eventually creates a barrier to diversity. There is a tendency to have factions
and those who belong in low-status groups get frustrated as they often feel harrassed
and are not free to speak up. While, those in higher status tend to ignore and belittle the
others. Power inequality does not embrace diversity.
5. Poor Organizational Design and Structural Integration​. Good organizational design
creates a fair distribution of authority, workload and functions of individuals and groups
within the organization. This also ensures an effective organizational structure. Structural
integration likewise shows how men and women are represented in the positions in the
organization. A poorly integrated integration reflects what is being coined in
organizational behavior as glass ceiling. This term refers to the barriers that hinder
minorities and women from reaching their career aspirations. In addition, glass border
refers to the barrier that discriminates against women by not providing opportunities to
be given foreign job assignments. Lastly, glass floor or also known as sticky floor refers
to a barrier that hinders an even lateral movement into other positions at the basic level.
6. Communication Barriers and Resistance to Change​. Miscommunication and
resistance to change have also hindered the achievement of diversity.

The management must ensure implementation of effective diversity management

programs not only to minimize legal consequences, but to recognize each of the individuals as
they are. Effective managers should take into account two important programs, i.e. affirmative
action programs and diversity management programs. However, the latter provides a more
inclusive working environment. Shown in Exhibit 2.3 is the comparison of the two programs.
 Exhibit 2.3
Affirmative Action versus Diversity Management
(Hitt, Miller and Collela, 2012)

Basically, affirmative action programs were created by the government to eliminate

discrimation, thus promoting equal employment opportunities. However, this often does not
address the real problem but simply focuses more into the legal aspects. Diversity management
on the other hand responds to the needs of individuals and groups in terms of fostering a
greater inclusion in the workplace regardless of different backgrounds. It is likewise more
strategic as it also considers diversity as a source of competitive advantage. Some
organizations comply with AAPs just to minimize lawsuits; while organizations promoting
diversity management are voluntary in nature. Diversity management is proactive. It allows
individuals to learn from the views and perspective of other groups. This is more than AAPs and
EEOs.

Diversity looks at the differences of individuals, not the group’s. Hence, each one is
definitely unique and judging them based on their group preference and membership will be
helpful as they do not actually represent a group in particular. Hasty generalization leads to
discriminations and conflicts. There is no best practice to manage diversity. Each organization
must assess and understand what works best for them based on the dynamics of the
workplace. Personal awareness and empathy are keys to managing diversity effectively through
individual approach. For organizational approach, training programs are effective techniques.

ETHICAL PERSPECTIVE ON ORGANIZATIONAL BEHAVIOR

Ethics is a moral principle about what is right or wrong. Ethical values of individuals
guide them in creating decisions and making necessary actions. This has become an issue in
organizational behavior as these ethical values and behavior differ from the influences that
individuals consider.
 1. Cultural Influences. Examples of this includes family, religion, and friends. How people
are raised leads to personal ethics. Since personal ethics is apparently diverse,
professional ethics and organizational ethics shall help the organization in establishing
the guidelines to follow in the workplace.
2. Organizational Influences. These are the company policies and practices, codes of
ethics, reward and punishment systems. These are implemented in the entire
organization and attempts to create a company image behaving ethically.
3. External Environment. These forces include political, legal, economic and international
developments as well.

Ethics in the context of Globalization

Ethics can make a reputation of an organization. Ethical behaviors reflect an
organization's honest and just professional endeavors and activities. Employees even become
more productive when they think they belong and work for organizations that practice fair
business activities.
Ethical issues concern every individual in various countries all over the world. In
organizational behavior, ethics play an important role in several HR practices including
employee recruitment and selection, performance management, retention decisions and labor
relations. Since cultural influences differ from one country to another, corporate cultures are
significantly taking a big part in guiding the ethical principles of the organizations. The human
behavior in organizations and the ethical corporate cultures should go hand in hand to win in the
global market. The way the individuals behave in the organizations make up the representation
of the companies as a whole. Thus, the management must ensure that the organization
maximizes the economic outcomes without violating legal obligations and moral standards,
more importantly if one company operates outside its national border. Global responsibility is an
emerging concern today. Stakeholder-centered organizations look at the impacts of company
decisions on the multiple groups of stakeholders, inside and outside the organizations. This is
likewise very vital since there is no single universal recipe nor view of what is generally
accepted as right or wrong in the world. To address the different ethical perspectives, ethical
awareness must be embraced in each and every organization.

Yahoo business ethics sorely lacking

By Ephraim. Schwartz
InfoWorld |

Source: Retrieved from ​https://www.infoworld.com/article/2645247/yahoo-business-ethics-sorely-lacking.html​,

August 02, 2020

The latest news that Yahoo
turned over private emails to the
Chinese government which led
to the conviction and ten-year
sentence of Shi Tao, an editorial
department head at the
Contemporary Business News in
China's Hunan province turns
my stomach.
Yahoo claims, according to ​Dan "Does the fact that [Yahoo]
Nystedt , at the IDG News operates under Chinese law free
Service​, "Just like any other it from all ethical
global company, Yahoo must considerations?" asked a press
ensure that its local country sites advocacy group called Reporters
must operate within the laws, without Borders.
regulations and customs of the
country in which they are
based," said Mary Osako, a
Yahoo Spokeswoman.
Tao's crime was sending an
email to a New York-based Web
site regarding the Chinese
government warning to its
governmental representatives to
watch for dissident activity
during the 15th anniversary of
the Tiananmen Square
massacre.
If Yahoo, and there are plenty of
other companies as well, are not
expected to have a conscience
when it comes to doing business
with whomever, then should we
believe that they have a
conscience when it comes to
dealing with us, right here in the
U.S.?
We all talk about different
corporate cultures and how it
pervades everything a company
does. Well, if a company's
behavior reflects the attitude that
making money is more important
than ethical behavior doesn't that
attitude become part and parcel
of their corporate culture?
Doesn't that tell us about what
they believe in and how they do
business?
When a company behaves like
that and then turns around and
tells us the customer comes first
is there any reason why we
should believe them?
Shi Tao was a customer wasn't
he?
Do you think Yahoo will treat
your emails with anymore more
discretion if it threatens their
bottom line?
This is a major issue for every
corporation, especially as
companies more often than not
are partnering with totalitarian
governments.
It should not be left to some
lower level PR person to make
glib pronouncements that, "just
like any other global company,
Yahoo must ensure that its local
country sites must operate within
the laws, regulations and
customs of the country in which
they are based."
Shi Tao and the rest of us
deserve better.
Copyright © 2005
IDG Communications, Inc

End of Chapter Test

Chapter Review

I. Essay.​ Briefly answer the following questions in not more than five sentences.
1. Compare and contrast Affirmative Action Programs and Diversity Management. How
does each of the two address diversity in the workplace?
2. Explain the dimensions of national culture. Discuss why it is important in organizations
with international participation.
3. In the context of organizational behavior, explain the concept of “Think Globally, Act
Locally” in maintaining a global brand. You may relate this with discussion of the
dimensions of culture.

A Question of Ethics
(George and Jones, 2012, p.61)
Emotional intelligence—the ability to understand and manage one’s own and other people’s
moods and emotions—can be increased through training. When people are high on emotional
intelligence, they are better able to understand and use emotions to influence others. However,
people can be influenced in positive and negative ways. As an example of the latter, historical
atrocities and cult tragedies have been attributed to the ability of certain individuals to have high
levels of influence over others.

Questions
1. What are the ethical implications of emotional intelligence training?

2. What steps can organizations take to ensure that employees’ emotional intelligence is
put to good use and not used for personal gain or unethical purposes?
References

Black, S., Gardner, D. G., Pierce, J. L., & Steers, R. (2019). ​Organizational Behavior​.
OpenStax Rice University.

George, J. M., & Jones, G. R. (2012). Understanding and Managing Organizational

Behavior (6th ed.). Pearson Education Inc.

Hitt, M. A., Miller, C. C., Colella, A., & Triana, M. (2017). ​Organizational Behavior (5th
ed.). Wiley Global Education

Hitt, M. A., Miller, C. C., and Colella, A. (2012). ​Organizational Behavior (3rd ed.). Wiley
Global Education

Luthans, F. (2010). ​Organizational Behavior​(12th ed.). McGraw-Hill Education.

Mullins, L. J. (2010). ​Management and Organisational Behaviour (9th ed.). Pearson

Higher Ed.

Electronic References

Retrieved July 29, 2020, from

https://www.tlu.ee/~sirvir/IKM/Leadership%20Dimensions/globe_project.html

Retrieved August 02, 2020, from

https://www.yourarticlelibrary.com/organization/ethics-and-organizational-behavior/45114

Retrieved August 02, 2020, from

https://courses.lumenlearning.com/wmopen-organizationalbehavior/chapter/business-ethics-in-o
rganizational-behavior/

Retrieved August 02, 2020, from

https://www.infoworld.com/article/2645247/yahoo-business-ethics-sorely-lacking.html

Retrieved August 06, 2020 from

https://leeiwan.wordpress.com/2007/06/18/difference-between-a-global-transnational-internation
al-and-multinational-company/
 Module 3
LEARNING AND PERCEPTION

Module Introduction
Learning is a continuous and never ending process. This is a lifelong process. To be
competitive, organizations must also take into account that people in the workplace have their
own behavior and perceptions on things based on what they have learned through experiences,
observations and others. Further, the management needs to understand the principles and
processes that govern an individual's learning. Effective managers acquire talents who are
willing to learn and grow. While relative to learning is the concept of perception. Using our
senses, we then process the ideas in our mind, create decisions and behave accordingly.
This chapter primarily deals with the concepts of learning and perception. We aim to lay
down conditions anchored from various theories which could be of help to learning. We shall
also focus on perceptions of people and different perceptions can indirectly create a firm's
human capital. Problems encountered regarding learning and perceptions are also important
concepts to look at.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Examine how contingencies of reinforcement affect organizations;
2. Distinguish other conditions for learning; and
3. Compare and recognize different perceptions of people in organizations.

LEARNING: DEFINITION, NATURE AND THEORIES

Learning is part of everyone’s human life. Everyday, people get to learn as they go along
their journey. In organizational behavior, the formula for learning can be written as Situation +
Behavioral Response + Consequence of Response = Learning. When a child sees a dog from
afar ​(situation),​ out of so much fear he runs away as fast as he could ​(behavioral response).
The dog then ran after him, till the child was chased and got bitten ​(consequence of response).​
Now, how can the child learn from this experience? Will the child run again every time seeing a
dog?

Exhibit 3.3
Basic Elements of Learning (Hitt, Miller & Collela, 2012)
Definition and Nature of Learning
Learning can be defined as a process of changing one’s behavior as a result of a
previously encountered positive or negative situation. Learning is evident only if one exhibits
change of behavior. This change is relatively permanent and requires practice or experience.
Along the process of learning, one’s feelings can be too influencing. As some individuals earn,
their sense of achievement can boost their confidence. While for others, this can be frustrating
as changes also create new knowledge about things that they were not used to. Some see
these changes awkward to them. Generally, learning is powerful.
Most people think that learning comes from formal school, i.e. through teaching or
training, but learning can also occur from experiences and even observations. Learning in the
workplace occurs in day to day work demands that employees experience, e.g. creating
solutions to problems and dealings with the clients or customers.

Models of Learning: Theories and Conditions

The models of learning can be best understood through the development of modern
behavioral learning theory. This reflects the four stages of the development in research as
regards learning.

Exhibit 3.2
The Development of Modern Behavioral Learning Theory
(Attribution: Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license)
Classical Conditioning
Classical conditioning was developed by a Russian classical behaviorist, Ivan Pavlov.
It was defined as a process in which S-R connection or stimulus-response connection shows
that when a neutral stimulus is paired with an unconditioned stimulus, it becomes a conditioned
stimulus resulting in a conditioned response. Pavlov conducted this experiment with dogs. He
tried presenting meat powder (unconditioned stimulus) to the dog which eventually resulted in
the dog's salivation (unconditioned response). Next, when he rang a bell (neutral response),
there was no salivation. Pavlov tried associating the ring of a bell with a coming food. He rang
the bell with the accompanying meat. After being repeated several times, the dog salivated. The
next time Pavlov tried ringing a bell, he did not present any meat, but the dog still salivated. The
ring of a bell (now, a conditioned stimulus), classically conditioned the dog salivation
(conditioned response).
However, this theory has also been criticized by other psychologists as it only explains a
limited part of the total learning of individuals. B.F. Skinner argued that classical conditioning
cannot explain a much larger and complex learning. Thus, it led to some more theories relative
to learning.

Thorndyke’s Law of Effect

The ​Law of effect by Edward Thorndike suggests that those responses in a given
situation accompanied or followed by satisfying effect (reinforcement) will have more likelihood
of recurrence, while those accompanied or followed by discomforting effect (punishment) shall
reduce the likelihood that the said response will be repeated. This principle was noted by
Thorndyke in his experiment with animals. He found out that learning occurs through trial and
error. When one response results in a reward, there is a high chance of repeated behavior and
otherwise.
Thorndyke’s law of effect has led to the development of operant conditioning.

Operant Conditioning
While classical conditioning is dependent on the development of associations between
situations (stimulus-response bond), learning that occurs from the consequences of behavior is
the idea of operant conditioning (response-stimulus bond). In operant conditioning, there must
be a positive response in a given situation to lead to a reward. Learning by consequence was
developed by B.F. Skinner. He has proven this with his experiment on animals whereby animals
have associated a positive or negative response to a reward or punishment respectively.
When a given behavioral response results in a pleasant consequence, the tendency that
the said behavior will be repeated is high. For instance, an employee who gets rewarded for a
job well done or reports submitted ahead of time is more likely to repeat the behavior in similar
situations. This is the concept of ​positive reinforcement​. It is a reinforcement contingency
whereby a behavior in a particular situation is followed by a positive consequence, thus,
strengthening the probability that the behavior will be repeated. In a similar way, negative
reinforcement is also effective in increasing the likelihood of repeated behavior. ​Negative
reinforcement is another reinforcement contingency in which a behavior is followed by the
prevention or withdrawal of a previously encountered negative consequence, thus,
strengthening the probability that the behavior will be repeated. Employees who report to work
early (behavior) removes the employer's habit of nagging all day long in the office (withdrawal of
the negative consequence). Ergo, employees try to go to work everyday to minimize the
unpleasant consequences.
On the other hand, ​punishment exists to stop the repeated behavior for similar
situations by introducing a negative consequence. An example of this is an employee who gets
a salary deduction everytime he comes to work late. The negative consequence, i.e. salary
deduction will lead to a lesser frequency of reporting to work late. Punishment, however, must
be utilized appropriately by the organizations in particular situations. As punishment gives
negative consequences to individuals, it creates various impressions to those who experienced
being punished and those who have seen the process of punishing others. Since punishment
seems to be challenging for some to implement, another reinforcement contingency was
developed. This is known as ​extinction​. It refers to the procedure whereby a behavior is
followed by the withdrawal of a previously encountered pleasant consequence, thus, reducing
the probability that the undesirable behavior will be repeated. For example, employees are used
to sending emails to the employer anytime they have personal issues and concerns, not
considering whether this is within office hours, early in the morning or late at night. This has
been habitual to most of the employees since the employer regularly sends responses.
Eventually, it becomes a bit cumbersome to the employer. To cease this behavior portrayed by
the employees, it began to be no longer reinforced. The employer stopped responding to
emails, until the employees themselves withdrew the said behavior.
In operant conditioning, a reinforcement schedule is used to control the frequency of
reinforcement for the desired behavior. Generally, there are two types of reinforcement
schedule. ​Continuous reinforcement is a schedule in which the reward immediately follows a
given behavior. This is the simplest type as it is very easy to understand. After the performance
of each desired behavior, the reward is given. This is an easy and effective tool when teaching a
new behavior. On the other hand, ​intermittent reinforcement is a schedule in which the reward
does not immediately follow after each behavior, but only after a certain ratio or interval of
responses. Shown in Exhibit 3.3 are the four intermittent schedules.
Type of Nature of Reinforcement Example
Intermittent
Schedule

1. Fixed Interval Behavior is rewarded based on a Daily pay, Weekly pay,

Schedule fixed amount of time Periodical examinations of
students

2. Variable interval Reinforcement is made available Random monthly observation

Schedule based on unpredictable time and performance monitoring as
part of employee recognition
program, unannounced quizzes
in class

3. Fixed ratio Reward is based from the set or Piece-rate pay

schedule fixed number of times that a
behavior is done

4. Variable ratio Reward is based on the Lottery, gambling activities,

performance of the desired rewards given unpredictably,
behavior an unpredictable number often applicable to business
of times organization particularly in giving
sales bonuses
 Exhibit 3.3
Types of Intermittent Schedule

Each of the reinforcement schedules is advantageous. Ratio schedules are more on

response-contingent while interval schedules are time-contingent. This means that when
rewards are given based on time (interval : hourly, monthly) and independent of the employee
behavior, it would often result in a weakened desired behavior. An employee who is paid based
on the number of outputs he/she produces is more likely to perform better.

Social Learning Theory

Social Learning Theory, developed by Psychologist Albert Bandura, suggests that
individuals learns through observations as they interact with others. This theory argues that the
learning process does not require one to experience a given situation for them to learn and
change his behavior. While other psychologists explain that the concept of learning from
consequences, this theory focuses on learning from others which results to imitated behaviors.
Further, social learning theory acknowledges cognitive process and refuses to agree on the idea
that higher mental process is irrelevant in learning process.

KNOWLEDGE MANAGEMENT
Knowledge is often defined as “justified true belief” based from the old traditions in the
philosophy of knowledge. According to Plato, ​Knowledge is the set of beliefs that are true
and that we are justified in believing.
Peter Drucker, management guru, on the other hand, defined knowledge as “​information
in action, information focused in results.” ​The way knowledge is important in everyday usage,
knowledge is vital in every organization. Gained knowledge provides value in the businesses. In
the context of organizational behavior, knowledge needs to be managed properly since it is
acquired and transmitted by individuals and groups in the organization.
First, knowledge is classified into three : explicit, tacit and implicit. ​Explicit knowledge
includes words and statements which can be documented. Thus, this type of knowledge is easy
to share with others. Examples are company policies and procedures, written company reports,
and researches. Knowledge that is difficult to articulate and be presented in tangible or written
form is known as tacit knowledge. It is also referred to as knowledge of experience or the
“know-how”. This tends to become subjective and personal. On the other hand, implicit
knowledge is application of explicit knowledge. Skills that can be transferred from one job to
another are considered implicit knowledge. Knowledge is anywhere in the organization.
Management must understand that knowledge can be found in individuals and groups, systems
and structures. Hence, they need to ensure that knowledge is retained and utilized in the
organization.
Knowledge management as defined by Tom Davenport is the process of capturing,
distributing, and effectively using knowledge. It involves processes, strategies and systems of
knowledge acquisition, creation, refinement, storage, transfer, sharing and utilization. Through
knowledge management, organization’s knowledge assets are improved and made available for
greater productivity and organizational performance. Moreover, knowledge management is an
organizational activity wherein the management is tasked to ensure employee participation in
achieving the goals and purpose of knowledge management. Ikujiro Nonaka, one of the early
founders of the concept of knowledge management explains that knowledge is “one sure
source of the lasting competitive advantage” of the organization.
Human resources as organization’s assets are likewise associated with the term
knowledge management. It encompasses the individuals’ knowledge acquired and made
available for the organization. Hence, it is crucial for the management to create a culture where
learning and knowledge sharing is a priority of its people.

ORGANIZATIONAL LEARNING: TYPES AND PRINCIPLES

Organizational learning is viewed as one of the goals of knowledge management.
Researches have shown that a relationship between the two concepts exists. ​Organizational
Learning is a process whereby knowledge is created, utilized and transferred within the
organization. Ergo, an organization that is able to create, use, share knowledge and make
necessary changes to arrive at a new knowledge is coined as a learning organization.

Types of Organizational Learning

James March, an American sociologist, proposed two principal types of organizational
learning strategies that management may consider. (1) ​Exploration of new possibilities involves
searching, experimenting, innovating and developing new routines and behaviors to increase
effectiveness. Under this type of organizational learning, organization members invest
resources looking and taking risks to try new alternative ways and practices; although returns
are uncertain, it’s benefits are long-term in nature. (2) ​Exploitation of old certainties, on the
other hand, focuses on the existing routines and procedures for efficiency and productivity.
Returns are more predictable since exploitation looks at the existing competencies, and simply,
concentrates on refining and improving them. Thus, it involves total quality management.
Exploration and exploitation are equally important in the organization, however the management
is responsible in keeping a balance between the two organizational learning strategies.

Principles of the Learning Organizational

Peter Senge, in his book “The Fifth Discipline” developed the five principles of the
learning organization.
Systems Thinking. ​This principle stresses on looking at a big picture of the organization
as a whole. It focuses on a larger system where individuals and groups interact, thus, affecting
one another. The management must put emphasis on understanding each action and
consequences as it observes the processes in the entire system. This results in more
appropriate solutions and sound decisions. Senge further argues that outside forces, e.g.
economy, environment, etc., should be considered in arriving at a long term systemic solution.
Personal Mastery. Individuals of high level of mastery, i.e. with clear vision and goals,
and aware of their capabilities, tend to become creative in the workplace. Senge suggests that
since there is a need for the individuals to develop their personal mastery, management must
take part in empowering them to create and explore what they can and what they want.
Mental Models. Senge defined mental models as the process of challenging one’s
personal assumptions about the others. In the process of developing personal mastery, it goes
hand in hand with organizations using mental models to provide individuals the opportunity to
assume more responsibility in decision making. Indeed, those organizations who are able to
adapt to new models become successful organizations.
Building a shared vision. Senge believes that paying attention to a well established
and clear vision is part of creating a learning organization. This principle emphasizes that
building a shared vision provides a guide to managing employee behaviors. When personal
values jibe with the organizational vision, it fosters a greater possibility of goal achievement.
Team Learning. This principle values the importance of groups in the learning process.
It involves collective and shared learning as groups interact and eventually learn from one
another. Team learning also depends on mental models and personal mastery.

All these principles are interrelated although these are a bit challenging for the
organizations. Implementation of the five principles results in a continuous learning process and
a competitive business organization.

LEARNING STYLES
Learning styles vary from one person to another. Each individual has his preference on
the methods, approaches and ways of learning.

David Kolb’s Model of Learning Style

One of the most known theories on learning styles was developed by Davis Kolb. He
suggests that learning is a cycle having four stages. He likewise proposes four independent
learning styles.

Kolb’s Learning Cycle

The four stages include:
1. Concrete Experience. This is the first stage in which it involves having a new
experience is introduced or encountered by the individual. It could also be a
reinterpretation of an existing experience.
2. Reflective Observation. This stage is the beginning of one’s reflection of his
experience to have a greater understanding.
3. Abstract Conceptualization. After reviewing the encountered experience, the
individual concludes and eventually comes up with a new idea or concept. This
stage is known as abstract conceptualization.
4. Active Experimentation. This stage involves the application or practice of the new
concept. The outcomes are then observed and tested.

Generally, learning according to Kolb involves experiencing, reflecting, conceptualizing

and testing.

Kolb’s Learning Styles

Based on the four stages of learning, Kolb arrived with the four independent learning
styles.

Active Experimentation Reflective Observation

(Doing) (Watching)

Concrete Experience Accommodating Diverging

(Feeling) (CE/AE) (CE/RO)

Abstract Conceptualization Converging Assimilating

(Thinking) (AC/AE) (AC/RO)
Exhibit 3.4
Matrix of Kolb’s Learning Styles

1. Accommodating (Feeling and Doing). This learning style corresponds to the first and
 fourth stages of learning. Individuals who prefer this learning style are “hands-on”
Accommodating learners rely on gut-feel and are open to new experiences. Their actions
are based mostly on intuition rather than logic.
2. Diverging (Feeling and Watching)​. Diverging learners prefer concrete experiences and
are able to reflect on various perspectives, as based on the first two stages of learning.
Individuals using this learning style are good at imagination and generation of new ideas.
They are good at brainstorming and are generally artistic.
3. Converging (Thinking and Doing). This learning style is based from the third and
fourth stages of learning. It enables individuals specialist and technical abilities. People
with this learning style best perform in solving problems and finding solutions to practical
issues. They prefer experimenting, simulating and applying ideas to practical, “hands-on
solutions. Their actions focus on technical tasks and not so much with interpersonal
aspects.
4. Assimilating (Thinking and Watching). This corresponds to the second and third
stages of learning. People with assimilating learning styles are logical. To arrive with
ideas, they follow logic in processing information. Similar to convergence, they also do
not focus on people and interpersonal aspects.However, they require a clearer and
logical explanation than a practical opportunity. They are primarily focusing on ideas
and concepts. They prefer to learn through lectures, reading and analyzing. This
learning style is significant to the field of science.

The Seven Learning Styles

The Memletic Learning Styles Inventory by Sean Whiteley includes seven learning styles
and thus more popularly known as ​The Seven Learning Styles. ​This was based on the multiple
intelligence theory of Howard Gardner.
Exhibit 3.5
The Seven Learning Styles
Learning Style Nature of Learning Skills Learned

1. Visual (Spatial) Individuals prefer to learn through Drawing, painting,

images and are good at imagining designing, sense of
different physical configuration. direction

2. Aural Individuals prefer to learn through Singing, playing musical

(Auditory/Musical) sounds and tend to think in instruments, understanding
rhythms and patterns. music

3. Verbal (Linguistic) Individuals prefer to learn through Speaking, explaining,

words and language. writing, persuading,
listening and storytelling

4. Physical Individuals prefer to learn through Dancing, acting, physical

(Kinaesthetics) sense of touch, balance and coordination, using body
coordination, and are good at language, playing sports
controlling their bodies.
 5. Logical Individuals prefer to learn through Problem solving, drawing
(Mathematical) the use of reasoning and logic. logical conclusions, doing
mathematical calculations,
experimenting

6. Social Individuals prefer to learn through Good public relations,

(Interpersonal) sensing and relating with others, listening, conflict
and seeing things in multiple resolution, empathy,
perspectives. communication

7. Solitary Individuals prefer to learn through Self analysis and

(Intrapersonal) self reflection. awareness, evaluating
one’s thoughts

Honey and Mumford Learning Styles

Inspired by Kolb’s Learning Styles, Peter Honey and Alan Mumford developed ​Honey
and Mumford Learning Styles. ​This learning style is a simplified model of Kolb’s Learning
Styles. The four learning styles are:
1. Activists. These learners prefer new challenges and experiences. They enjoy learning
by doing. They are good at brainstorming, role playing and competitions. Activists are
flexible and open-minded.
2. Reflectors. These individuals learn by watching others. They are keen observers and
gather enough information before arriving into conclusions. Reflectors prefer coaching
sessions, observations, self analysis and paired discussions.
3. Theorists. These are logical individuals and have the tendency of being perfectionists.
They value rationality and objectivity and they enjoy assimilating disparate facts into
coherent theories. They prefer models, theories, statistics, storytelling, quotes and
systems thinking.
4. Pragmatists. ​These learners prefer to try new experiments and apply the learning into
practice as they want to see things put in actions and know if they work in the real world.
Pragmatists act quickly on ideas, however, they easily get bored in long-term
discussions. Case studies and practical problem solving are suited to them.
 Exhibit 3.6
Honey and Mumford Learning Styles

BASIC CONCEPTS OF PERCEPTION

People may like or dislike others whom they met the first time because they may be
perceived of having the same or different characteristics respectively. Perhaps, perceptions of
individuals really create the first impressions. And these perceptions often result in judgements
and behaviors. While humans think and see others in different perspectives, it is important to
study and analyze perceptual processes. Thus, when we solely use our senses without looking
at the full range of data, there comes inaccuracy in our perceptions about and towards other
people.
Perception refers to the process by which an individual senses the environment,
interprets and transforms the inputs to meaningful information for appropriate behavioral
response. This is how people interpret sensory data. Perceptual process includes receiving,
selecting, organizing and interpreting the inputs through a person's senses. In organizational
behavior, there is really a need to understand the role of perception. The three components of
perception includes (1) the perceiver or the person who interprets the inputs from his/her
senses, (2) the target, anyone or anything that a person focuses on and (3) the situation
wherein the perception is taking place.

Selective Attention
With the voluminous information that goes through our senses, we get bombarded with
lots of thoughts and stimuli, and emotions as well. Hence, we fail to look at much important
information. Theorists have explained that individuals are actually capable of screening and
selecting objects that vie attention. This is known as perceptual selectivity or selective attention.
 Selective attention is the process in which individuals select and direct attention to
specific objects in the environment. Thus, it leads to what a person opt to learn and remember.
A person who watches a demonstration does not mind the noise of people chatting around nor
the sound of the vehicles passing by. This process then allows individuals to direct and focus
their attention to achieve target learning. It also suggests that the limited capacity of people to
focus their attention can be conceptualized as a bottleneck that restricts the flow of information.
Ergo, the narrower the bottleneck, the lower the rate of flow of information.

Factors Affecting Perception

The way an individual perceives is affected by several factors. Even if there is one and
the same stimulus, people may perceive it differently.
1. Sensory Limits or Thresholds. Individuals vary on the limits of their sensing capabilities.
For some, watching a TV show on a bigger screen with loud sounds seems to be
enjoyable and exciting, while for others it is irritating and unpleasant. Further, a person’s
readiness to sense input can also affect his perception. When people expect and
prepare for a stimulus, attention and focus is given.
2. Psychological Factors. These factors include personality, motivation, needs and
expectations, interests and others. For example, when one is motivated to work for him
to receive the needed bonus, his focus will be on the tasks among any other things
around him in the workplace.
3. Perceptual Learning. This refers to the process by which one’s ability to sense and
respond to stimuli is enhanced through experience. Example of perceptual learning is a
full-fledged teacher in classroom performing than a common teacher who was not
exposed to training and teaching pedagogy. Another is a person who is able to
distinguish differences between shades of color blue.
4. Cultural Differences. Culture and diversity also affect individuals’ perception. This
becomes a problem when stereotyping occurs.

PERCEPTUAL DISTORTION AND ERRORS

Social perception is the process through which sensory data are interpreted to create
impression towards other people. When we misjudge and conclude wrongfully, they are likely to
persist.Problems and biases occur because selectivity exists in the perceptual process. There is
a need to address these perceptual distortions and errors to reduce inaccurate perception and
judgements.
1. Attribution Theory. ​Attributions are explanations of what have caused events and
behaviors. Attribution theory is concerned on how people explain the causes of
behaviors. People's attributions can be internal or external. Internal or dispositional
attribution relates people’s behavior to the characteristics and traits of an individual.
While external or situational attribution relates the causes of behavior to external forces
and environment. Attributional biases include (1) Fundamental Attribution Error -
perception problem wherein the person tends to over attribute the behavior of others to
internal causes rather than external and (2) Self-serving bias - a perceptual error in
which the individual attributes success to internal factors but blame others for failures.
2. Selective Perception. Since people selectively interpret what they see, hear or feel,
especially from the basis of what they need or have interest in, they tend to ignore other
viewpoints, consciously and unconsciously.
3. Halo Effect. Thorndike has first used the term “halo effect”. It is a perception problem in
which people are assessed based solely from one positive or negative trait or
 characteristic they possess. This leads to a general impression of individuals while their
specific characteristics are missed and overlooked. This cognitive bias tends to create
inaccurate perceptions. Often, physical attributes of a person become part of the halo
effect. When one is seemingly of good posture, nice and well-dressed, people perceive
him/her as a smart person. In contrast (usually known as “horn effect”), a student who
comes to school late is perceived by his teacher as a lazy poor performer in class. This
is a big problem when the interviewer during the selection process gets impressed by a
single trait and the applicant gets hired without being evaluated for his specific
qualifications.
4. Contrast Effects. It is a perceptual error in which the person’s perceptions of others
affect his perception of an individual that he is trying to assess. The evaluation then is
influenced by the comparison with persons who were previously encountered. For
instance, a manager is rating his employee based on the performance of the recently
evaluated employee. Instead of looking at the standard criteria, the manager tends to
compare the performance of the employee with the other. So if one is rated A+, and the
following employee is seemingly on the average, he will be graded very low since the
previous is outstanding.
5. Projection. ​This is a common perceptual error in which people assume that their own
characteristics are shared by others. Projecting people think and attribute others’ values
and beliefs to themselves. For example, a student who studies very well thinks that
others do the same way and that he must double his effort to be competitive. While a
student who gets low scores in examinations tends to think that those who score high
are wasting their time and efforts because at the end of the day, the bottomline is they
will both graduate from the same degree. Projecting people often overestimate or
underestimate the projection itself. It follows the saying, “to an honest man, everybody is
honest.” This can be addressed through empathy and self awareness.
6. Stereotyping. As discussed earlier, stereotyping is a set of generalized and inaccurate
beliefs about the characteristics of a certain group. It is already understood that this is
one of the roadblocks to diversity. Stereotyping occurs when individuals meet a person
belonging to a particular group and perceive that this person has the same and general
characteristics attributed to the group. Stereotypes then miss the unique characteristics
of a person leading to inaccurate perception.
7. Self-fulfilling Prophecy. It is also known as “phygmalion effect”, a psychological
phenomenon in which high expectations results in greater performance. Self-fulfilling
prophecy predicts that something will come true because the perceiver expects and
believes it to come true. The failures of bank during the Great Depression is a classic
example of this perceptual error.
End of Chapter Test

Case Study
CASE: A BAD DAY IN BOONETOWN
Source : Retrieved from file:///HBO%20syllabus:module%20making/Chapter4-Perception.pdf, August 5, 2020.

Tom, plant manager of the
Boonetown facility, sat with his
elbows on his desk, holding his
head. "What a day! I've never
seen it like this," he said aloud,
though he was alone in his
office. He was relieved that in a
few minutes he could get into his
car and head for the golf course.
He couldn't remember when it all
began, but knew that Carl had
burst into his office before he'd
finished his first cup of coffee.
"Those guys in Production
wouldn't give you the right time
of day!" said Carl, sales
manager. "All I wanted was to
get this big order scheduled, and
you'd think I was asking for the
moon. Those production people
are all the same. They hate to
touch a thing once a schedule is
set." Tom tried to calm him
down, but Carl went on. "I even
tried to talk to Cranston. I figured
maybe a new guy would help me
out. But I should have known
better. Last week at the
welcoming party for him, I
sensed he wasn't any different. I
guess I was right. I shouldn't
have wasted my time on him."
Tom told Carl he'd look into the
matter, though he knew this
wasn't anything new. He also
knew he needed to get
Production and Sales to
cooperate more. After answering
a few phone calls, Tom strolled
out to the Production area to see
what he could find out. He didn't
even have to let on the Carl had
come to see him. They were hot
under the collar in Production,
too. Peter Kenilworth, production
manager, and Bonnie Baines,
chief scheduler, were discussing
Carl's visit and turned to Tom for
counsel. Bonnie began: "I'm not
sure how concerned those sales
people are for production
schedules and costs. They all
think we can stop a run and set
up for a new order in five
minutes. I think they're
conditioned to bark three times
every time a customer calls. I'll
bet half of them let their kids tell
them what to do!" Peter had his
own ideas as well. He stood up
and paced the floor, yet in a
controlled voice said, "Sales
needs some appreciation for the
total company. I can't figure out
why they constantly tie us up in
knots. They make impossible
promises to customers. They
should know better. Where did
they get their training? Don't they
value what our situation is? I'm
pretty sure no one in this
company is forcing them to
make the delivery commitments
they make!" Tom did what he
could to soothe bad feeling, and
promised Peter and Bonnie he'd
have a meeting in a day or two
to discuss these issues. He was
particularly upset with Bonnie's
attitude. On more than one
occasion she had gotten very
critical toward other people. He
wondered whether she had what
it took to do the job. Much of her
performance was good, he
admitted. She certainly put in
enough hours trying to improve
and enforce the production
schedule. How many perceptual
and judgmental tendencies are
exhibited by Tom, Carl, Peter,
and Bonnie?

Chapter Review
I. Multiple Choice​. Select the letter that best describes what is being referred to in the
following statements.
1. At 194gotten Antique Shop, hardworking individuals are given incentives for every fifth
piece of antique items sold per day to increase the rate of desirable behaviour during
store hours. What is being exhibited by the given statement?
A. positive reinforcement
B. punishment
C. extinction
D. negative reinforcement
2. In a coffee house like ESPRESSO-yourself Cafe, employees who frequently return to
work a few minutes late from lunch get reprimands and one-day suspension
consequently. ___________ is being exhibited.
A. positive reinforcement
B. punishment
C. extinction
 D. negative reinforcement
3. Which of the following is not a problem in person perception?
A. Implicit Theories
B. Halo Effect
C. Stereotyping
D. NOTA
4. n RIGHT-ur-idea Co., a publishing company, working harder and smarter removes the
frown from a manager’s face, thus the employees regularly submits the reports on time
to remove such negative consequence.
A. Positive Reinforcement
B. Negative Reinforcement
C. Punishment
D. NOTA
5. A schedule of reinforcement whereby the rewards immediately follows after each
behavior is known as ______________ reinforcement.
A. Continuous
B. Intermittent
C. Immediate
D. NOTA

II. Essay. ​Answer the following concisely based from the previous discussion.
1. Do reinforcement contingencies affect the employee performance? What are the effects
of these contingencies to the organization?
2. Explain the four stages of development of modern behavioral learning theory. Focus on
how each condition differs from the other.
3. Differentiate the two judgment errors according to attribution theory. Cite common
examples in the workplace.

References
Books
George, J. M., & Jones, G. R. (2012). Understanding and Managing Organizational
Behavior (6th ed.). Pearson Education Inc.

Hitt, M. A., Miller, C. C., Colella, A., & Triana, M. (2017). ​Organizational Behavior​(5th
ed.). Wiley Global Education

Luthans, F. (2010). ​Organizational Behavior​(12th ed.). McGraw-Hill Education.

Mullins, L. J. (2010). ​Management and Organisational Behaviour​(9th ed.). Pearson

Higher Ed.

Electronic Sources
Retrieved August 02, 2020, from
https://www.psychologytoday.com/us/blog/theory-knowledge/201312/what-is-knowledge-brief-pr
imer
Retrieved August 02, 2020, from
https://medium.com/@stangarfield/knowledge-knowledge-management-defined-5688407d9ac5
Stan Garfiel​d

Retrieved August 02, 2020, from

https://hbr.org/1993/07/building-a-learning-organization​ W.R. King (ed.), ​Knowledge
Management and Organizational Learning​, 3 Annals of Information Systems 4, DOI
10.1007/978-1-4419-0011-1_1, © Springer Science+Business Media, LLC 2009

Retrieved August 04, 2020, from

https://hrdailyadvisor.blr.com/2019/05/30/what-is-organizational-knowledge-and-where-can-i-fin
d-it/​https://www.valamis.com/hub/organizational-learning

Retrieved August 06, 2020, from ​https://www.eln.io/blog/honey-and-mumford-learning-styles

Retrieved August 06, 2020, from ​https://www.simplypsychology.org/learning-kolb.html

Retrieved August 06, 2020, from ​http://www.emtrain.eu/learning-styles/

 Module 4
PERSONALITY, ATTITUDES AND BEHAVIOR

Module Introduction
Individuals are truly unique in their own ways. Each one of us has our set of preferences
of what we like to do, who we want to be and who we want to be with. Even what we prefer to
eat and drink can probably differ from the others. Basically, our individual attributes and traits
can affect our actions and behaviors towards other people and events. Often, we are used to
tag along people having the same characteristics as us, and ignore those who are different.
In the workplace setting, it is important to consider one’s personality to further
understand their consequent attitudes and behaviors, more importantly, since it does vary from
one person to another. As this chapter deals with the discussion of the fundamentals of
personality, it also targets to bring excitement to the students as they discover their distinct
personality types and eventually, see and understand others’ uniqueness too. Personality,
attitudes and behavior shall be distinguished from one another during the course of discussion.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Differentiate between Big Five Personality Traits and the MBTI;
2. Describe the determinants of personality development; and
3. Analyze the importance of attitude and behavior in the workplace.

THE MEANING AND CONCEPTS OF PERSONALITY

Personality is a term often widely used to explain why a person thinks, acts or behaves
in a particular manner. This drives a person to his attitude and behavior towards other
individuals, events and situations. ​Personality refers to the stable dominant traits and qualities
of an individual which results in a consistent manifested behavior towards people and across
various situations.This makes up a person’s uniqueness. For instance, a sociable person may
be seen performing better in groups and teams. In addition, he can easily gain company of
people even in new places. On the other hand, an individual who is an introvert may prefer
working productively on his own. You could expect him to be behind the stage. In the
organizations, introverts are often found at the back office, e.g. accounting office. Apparently,
their behaviors reflect their personality respectively.
Individual personality is influenced by several factors. These are coined as
determinants of personality.
1. Heredity. In biology, this is our inheritance from our parents. Heredity is the passing of
the parents’ traits to their children. Physical traits like hair color and height are common
inherited characteristics. Genes can likewise play a role in the individual’s personality.
Although, it is a fact that not everything learned is by birth.
2. Environment. As individuals grow, they are exposed to different conditions and
situations in the environment. People, especially during the early development stage,
consider their families, friends and other social groups responsible in shaping their
personality. In essence, the culture is an important determinant of personality. What is
considered acceptable in a particular group may determine how its people will act and
behave consequently. Further, as people grow to adulthood, their experiences also
shape their personality.

Personality plays a vital role in organizational behavior. The management must ensure
that the individuals in the organization have a good understanding and recognition of what their
personalities are. This will lead them to a clear vision of what they want to achieve since they
have identified where they are good at. Moreover, their personality will also determine what
certain things can motivate them. The management shall then be able to place them in jobs
where they can perform better and comfortably.

Big Five Personality Traits

Among the many theories and models on personality, the Big Five Personality Traits,
also known as OCEAN model, is the most widely used and accepted by psychologists.
According to this model, each of the O-C-E-A-N traits represents a continuum wherein
individuals may fall anywhere here. These traits are stable throughout the lifetime of a person
and are influenced both by heredity and environmental factors. OCEAN is an acronym that
stands for openness, consciousness, extraversion, agreeableness and neuroticism.
Openness to Experience. ​This refers to the degree to which a person is willing to
embrace changes and take new experiences. People who score high on this are daring,
creative thinkers and spontaneous. While those who are low on this prefer going on routines
and are less likely to cope with changes.
Conscientiousness. ​This refers to the degree to which a person is in control and
disciplined working on specific goals. This measures how competent and organized an
individual is. Those who are high in conscientiousness have a clear direction and are mindful of
the things related to completing a given task. Its opposites include disorganized and impulsive
individuals.
Extraversion. This refers to the degree to which a person seeks energy from the social
environment through interactions. Extroverts are outgoing people. They prefer being surrounded
by people and are considered as “life of the party.” On the other hand, introverts are quiet and
reserved. They work well in solitude. They do not often engage in small talks and find social
gatherings a bit tiring. Thus, they require quite some time to regain energy on their own.
Agreeableness. This refers to the degree to which a person goes well with other people.
This is different with extraversion in such a way that agreeableness focuses more on creating
genuine relationships, helping others and being sensitive to what others feel. People who score
high on this are forgiving, empathic and modest. In contrast, people who are low on this are
rude, stubborn and demanding. Teamwork is fostered by individuals who are high in
agreeableness. While the opposites tend to be antagonistic.
Neuroticism. ​Also known as emotional stability, this refers to the degree to which a
person is able to respond in stressful and difficult situations. Emotionally stable individuals
perform better in the workplace even during stressful days with high job demands. Those who
score low are emotionally stable, calm and resilient. On the other hand, people who score high
in neuroticism are irritable, hostile and vulnerable.
Research by ​Soto & John in 2012 has shown the trends of the Big Five Personality
Traits. It was found that the degree of agreeableness and conscientiousness of individuals
eventually increases as they get older. While for extraversion, no significant trend was found,
however, there is an increase in assertiveness. When individuals reach adolescence to middle
adulthood, their openness and neuroticism gradually decrease.

The Myers–Briggs Type Indicator (MBTI)

 The Myers–Briggs Type Indicator (MBTI) is a personality test created by Isabel Myers
and Katherine Briggs. They based their 100-item personality test on the theory pioneered by
Carl Jung, a Swiss psychiatrist. According to Jung, individuals may either be of extravert or
introvert type and had two basic mental processes, i.e. perception and judgement. He divided
perception into sensing and intuiting while judgement into thinking and feeling to come up with
four personality dimensions. The traits now include (1) introversion/extraversion, (2)
perceiving/judging, (3) sensing/ intuition, and (4) thinking/feeling. It is important to note that
individual preference does not necessarily mean that one is better than the other. It means they
are only different. MBTI is aimed at understanding people and making it useful to everyday
lives.
After the assessment, the participant will be given a four-letter code, e.g. INFJ, ESFP
and ISTJ, which corresponds to each of the four categories (1) I/E, (2) S/N, (3) T/F and (4) P/J.
16 Personality Types may be identified using MBTI Assessment. MBTI Assessment is valid and
reliable, hence, many people have relied on this personality test.
Extraversion (E) vs. Introversion (I) ​: What makes you excited and energetic?
Extraverts seek energy from the social environment while introverts get energy in solitude.
Sensing (S) vs. Intuition (N) ​: How do you gather information? Sensors prefer using
their senses in collecting information from the environment. Intuitives use their “sixth sense”,
looks at the overall context, insights and hunches.
Thinking (T) vs. Feeling (F) ​: What do you value during decision making? Thinkers find
the most logical solutions when creating decisions and judgements. Feelers consider their
emotions and tend to be subjective in the decision making process.
Judging (J) vs. Perceiving (P) ​: How do you organize your environment? Judgers are
definite with their goals, organized and regulated. Perceivers are much flexible, easy going and
spontaneous oriented.

Other Organizational Relevant Personality Traits

1. Locus of Control. ​This personality concept refers to the degree to which one believes
that causes and controls of events, situations or experiences are attributed to either
himself or to the external forces. Locus of control is classified into two. Those (1)
internals believe that they are in control of what happens to their lives. They think that
they can be successful if they exert efforts and perform well. On the other hand, (2)
externals tend to attribute their experiences to the external factors. This could either be
attributed to luck or fate. These individuals believe that they are not in control and are
actually helpless. Internals are more motivated than the externals.
2. Self-monitoring. ​It is a personality trait in which an individual tries to understand the
social situation and regulates his behavior for him to fit in a particular situation. A person
with high self-monitoring can easily cope up with situations because they tend to read
the nonverbal behavior of other people and eventually alter his own for him to be able to
present an image that the situation is expecting him to portray. Thus, this type of person
gains more friends, in contrast with people with low self-monitoring. High self-monitors
are flexible and can adapt to different situations. Low self-monitors do not care whether
they are conforming with the norms and just act themselves out. They do not tend to
change for a particular situation and believe that they are consistent. While low self
monitors are coined insensitive, high self-monitors are often called superficial.
3. Self-esteem. ​This refers to the extent to which an individual is confident of his or her
self. Individuals with high self-esteem believe in their capabilities and that they have
 what it takes to become successful. While, people with low self esteem often do not see
their worth, dislike themselves and prefer to seek approval of other people as they make
decisions.
4. Machiavellianism. ​This personality trait involves being manipulative and emotionally
distant. High Machs or the ​Machiavellians are emotionally detached but utilize their
charm to win and persuade other people.
5. Type A and B Personalities. ​Friedman and Rosenman, medical doctors, identified two
types of personality which were particularly concerned with how individuals manage
stressful situations. They discovered that people with Type A personality are competitive,
with a sense of urgency and are short-tempered. They quickly react to situations and are
generally impatient. While Type B individuals are the opposite. They also have the drive
for ambitions but are more relaxed and easy going. The two cardiologists explained that
Type A individuals are more prone to heart diseases than Type B individuals. This
approach however, has been criticized by many since people do not actually all fit to
these personality types.

EMPLOYEE ATTITUDE AND BEHAVIOR

Attitude ​refers to the predisposition of an individual to behave towards a person, object
or idea. This is what a person thinks in a particular situation. While, ​behavior ​can be defined
simply as actions of individuals in response to a particular situation. It is the way an individual
acts out his feelings and thoughts. Attitude determines behavior. Whenever a person has a
preference over something, for instance, liking or disliking a particular food cuisine, he or she is
expressing an attitude. Basically, attitudes tend to be permanent or stable. These are directed
and related to one’s behavior towards a person, object or idea. In the workplace, individuals
may also have an attitude concerning their jobs. ​Work attitudes are defined as the set of
beliefs, feelings and thoughts on how people are to behave vis-a-vis their job and the
organization. Job satisfaction and organizational commitment were identified as important
employee attitudes to deal with in organizational behavior.

But first, let use discuss how attitudes are formed. Understanding attitude formation is
fundamental in knowing how to apply attitude concepts to organizational issues. Attitudes have
three basic elements.

1. Cognitive element. This is composed of collected information that individuals

consider about a person, object or idea.
2. Affective element. This includes the feelings of an individual towards a person,
object or idea.
3. Behavioral element. This is the person’s intent to behave in a particular manner
towards a person, object or idea. One’s behavior is very much dependent on how
he/she likes or dislikes a specific thing.

Attitude can be formed through various approaches.

1. Dispositional approach explains attitudes are actually viewed as personality traits. It
explains that a relatively stable disposition to behave in a particular situation is
represented by attitude. This means that having a predisposition in a job (whether being
satisfied or not) disregards the actual nature of work. Attitude is not dependent on the
actual job but on the predisposition of the individual. Thus, employers must hire
 individuals with appropriate and proper dispositions towards their job.
2. Situational approach suggests that attitude is case-to-case basis. This means that
attitude occurs based on a given situation and that it could change if the situation will be
likewise changed. For instance, if an employee has a positive attitude in his job because
he has a good supervisor, his attitude may change when his supervisor is no longer
good or the supervisor himself is already replaced with another one. In general,
changing the situation can change attitudes too.
3. Social-information-processing approach. This approach is a more complicated process
in forming attitudes. Social-information-processing means that the social context in which
a person is in develops his perceptions of the situation, so is his attitude. For instance, a
new member was introduced in a team (social context), and the old members explain
and orient him to the work situation, e.g. perks and bonuses (information concerning the
event), the individual then forms a new attitude aligned with his teammates.

Job Satisfaction
Job satisfaction can be defined as a state of fulfillment of an individual towards his/her
job. Since it is often associated with various employee behaviors in the workplace, this has been
considered as one of the most examined attitudes in organizational behavior. Extant literature
showed that job satisfaction is linked to employee performance, organizational commitment,
employee turnover intention, employee retention, motivation and more. Hence, maintaining a
high level of job satisfaction is significant to any organization. Job satisfaction results from the
feeling that one has towards what he expects and receives from his current job.
Five job dimensions were identified to represent the job characteristics in which
employees are influenced.
1. Work itself. This is the extent to which a person’s job is providing him with engaging
activities, opportunity to learn and accept responsibility.
2. Pay. This is the financial amount given to the individual as a form of remuneration with
the understanding that there is a commensurate pay equal for the job.
3. Promotion opportunities. This is the chance of an individual for career advancement in
the organization.
4. Supervision. This is the extent to which the supervisor is able to provide the employees
the needed technical assistance and support.
5. Co-workers. This is the extent to which the peers or colleagues are socially supportive
and technically proficient.

To measure job satisfaction several instruments have been developed throughout the
years. The two popular job satisfaction scas used widely are the MSQ or Minnesota Satisfaction
Questionnaire and Paul E. Spector JSS or Job Satisfaction Model.
Minnesota Satisfaction Questionnaire measures employee satisfaction as regards
his/her job. This survey is in three forms. Two long versions and one short questionnaire. Thi
survey measures various aspects of a job to wit, Ability Utilization, Co-workers, Moral Values,
Achievement, Creativity, Recognition, Activity, Independence, Responsibility, Advancement,
Security, Supervision--HumanRelations, Authority, Social Service, Supervision--Technical,
Company Policies, Social Status, Variety, Compensation, and Working Conditions.
According to Prof. Paul E. Spector, there are nine facets in which employee attitudes
may be assessed. JSS is a 36-item questionnaire designed to assess employee attitudes about
their jobs and related aspects. JSS includes assessment of job satisfaction in terms of (1) Pay,
(2) Promotion, (3) Supervision, (4) Fringe Benefits, (5) Contingent Rewards (performance based
rewards), (6) Operating Procedures (required rules and procedures), (7) Coworkers, (8) Nature
of Work, and (9) Communication.

Organizational Commitment
Several studies have shown that job satisfaction is related to another employee attitude
in the workplace known as organizational commitment. This employee attitude can be defined
as the psychological state of an individual to get attached in the organization for certain
reasons. According to ​John Meyer and Natalie Allen​, organizational commitment has three
components.
1. Affective commitment. It refers to the strong attachment of an individual to his job.
People with high affective commitment value their organization and are sincere in
staying committed.
2. Continuance commitment. This is commitment that results from the fear of losing the job
without having better opportunities outside the organization. This is associated with the
individuals’s cost of leaving the organization.
3. Normative commitment. This refers to commitment due to a sense of obligation. One is
committed to the organization because of the pressure to stay, thinking that it is the right
thing to do.

Management needs to create strategies to promote affective commitment of employees

to the organization. Research showed that employees who are satisfied with their jobs also
have a high affective commitment. On the other hand, continuance commitment and normative
commitment can be reduced by identifying what influenced them to be committed that way.

Organizational Citizenship Behavior (OCB)

Organizational Citizenship Behavior or OCB refers to the discretionary, voluntary
behavior of people whereby they perform beyond what is expected of them. Although it is
outside their job description or not being required by their organization, individuals who feel
organizational citizenship go beyond out of their motivation. This results in greater satisfaction
and performance. An employee generously working overtime without expecting to get paid for it
is an example of OCB.
There are five dimensions of OCB as categorized by Organ.
1. Altruism. This is characterized by the individual’s willingness to extend help to others,
especially the co-workers in the organization. Offering assistance to other employees
with urgent deadlines is an example of altruism.
2. Conscientiousness. This relates to genuine compliance of an employee in carrying out
his/her work, especially as regards spending ample working hours for efficiency sake.
Individuals who feel this OCB need less supervision and can help employees manage
costs.
3. Sportsmanship. This is linked to how an individual demonstrates a positive attitude and
loyalty in the organization by avoiding complaints on minor inconveniences. They are the
ones that tolerate inevitable inconveniences without complaining at all in their workplace.
4. Civic Virtue. This includes strong support to the organizational policies. People with this
OCB type take responsibility towards the organization. They generally have sincere
concern.
5. Courtesy. This is characterized by individuals taking necessary steps to avoid conflicts
and problems and establish good relationships instead. They are responsible for giving
advice to other colleagues to prevent future problems in the workplace.
 Organizational Citizenship behavior is found to enhance the levels of employee
performance and commitment that eventually result in the achievement of organizational goals.

Cognitive Dissonance
Everyone wants to behave according to what they feel and think. As attitude determines
behavior, it is important that a person make actual expressions out of it. However, there are
instances that people are not able to behave in a manner that it is congruent with their attitudes.
This condition leads to what is known as ​cognitive dissonance​. This refers to the mental
discomfort that an individual experiences when there is attitude-behavior inconsistency. This
means that a person needs to behave in a way inconsistent with his attitude which ends up with
uneasy feelings, regret and sometimes embarrassment. When people are faced with choices,
creating decisions can also result in cognitive dissonance when the said decision is against
what he actually believes.

Emotions, Emotional Labor and Emotional Intelligence

​Emotion ​refers to the strong feeling and subjective reactions of an individual to
particular situations. Emotion is a psychological state. Reactions of individuals include
happiness, sadness, fear, disgust, anger, and surprise and are known as the six basic
emotions. Emotions have a critical role in our daily lives, including our work life. People should
understand how emotions are conveyed because this can create an impact on their behaviors.
When individuals are not able to portray the emotion that they are actually feeling in a
given situation, they experience emotional labor. It is a process in which a person is expected to
express emotions contrary to what they really feel. Most employees in their jobs, particularly in
customer service and sales, experience ​emotional labor. Regardless of what they actually feel
towards the clients, they must display a positive emotion.
Relatively, ​emotional intelligence (EI), also known as emotional quotient (EQ) refers to
the ability to recognize, monitor and regulate own emotions and others’ as well. Daniel Goleman
identified five elements of emotional intelligence including:
1. Self-awareness. People with high self-awareness recognize the effect of their
emotions and behaviors to the people around them.
2. Self-regulation. This refers to the individual’s ability to control his emotions.
3. Motivation. People with high emotional intelligence are self-motivated. They have
the drive to achieve their goals and perform at their best.
4. Empathy. It is the ability to put oneself in the position of other people. Thus, those
individuals with empathy are able to respond to the feelings of others.
5. Social skill. This is the ability of a person to establish good relationships. People
who are effective in relationship management become change catalysts,
influencers, and can promote teamwork and collaboration.

End of Chapter Test

Big Five Personality Test
from personality-testing.info courtesy ipip.ori.org

Source: ​https://openpsychometrics.org/printable/big-five-personality-test.pdf

Instructions. In the table below, there are 50 phrases that describe individuals. Rate yourself on
how much it best describes you now as honestly you see yourself. Use the scale 1-5, where
1=disagree, 2=slightly disagree, 3=neutral, 4=slightly agree and 5=agree, in the box to the left of
it.

E = 20 + (1) ___ - (6) ___ + (11) ___ - (16) ___ + (21) ___ - (26) ___ + (31) ___ - (36) ___ + (41) ___ - (46) ___ = _____
A = 14 - (2) ___ + (7) ___ - (12) ___ + (17) ___ - (22) ___ + (27) ___ - (32) ___ + (37) ___ + (42) ___ + (47) ___ = _____
C = 14 + (3) ___ - (8) ___ + (13) ___ - (18) ___ + (23) ___ - (28) ___ + (33) ___ - (38) ___ + (43) ___ + (48) ___ = _____
N = 38 - (4) ___ + (9) ___ - (14) ___ + (19) ___ - (24) ___ - (29) ___ - (34) ___ - (39) ___ - (44) ___ - (49) ___ = _____
O = 8 + (5) ___ - (10) ___ + (15) ___ - (20) ___ + (25) ___ - (30) ___ + (35) ___ + (40) ___ + (45) ___ + (50) ___ = _____

Scores shall range from 10-50. If you score 40 and above, this may be considered high for you
on a given trait and low if you score 20 and below.

Personality Assessment
Know your personality type, visit the link and undergo the assessment. Be ready to share the
results with your classmates and get to know others too!
https://www.truity.com/test/type-finder-personality-test-new

Note: This personality test is b

​ ased on Myers and Briggs' 16 Personality Types, but does not
offer the official MBTI® assessment.

Chapter Review
Study Questions.
1. Identify key features of Big ​Big Five Personality Traits and the MBTI. Compare and
contrast the two major models in personality. Use matrix, diagrams or mind maps to
show the similarities and differences.
2. Identify the determinants of personality. Relate it with yourself. What determines your
personality?
3. Is attitude the same with behavior? Expound your answer.
4. Explain how job satisfaction and organizational commitment can affect the organization.

References

Books

Black, S., Gardner, D. G., Pierce, J. L., & Steers, R. (2019). ​Organizational Behavior.​
OpenStax Rice University.

George, J. M., & Jones, G. R. (2012). Understanding and Managing Organizational

Behavior (6th ed.). Pearson Education Inc.

Hitt, M. A., Miller, C. C., Colella, A., & Triana, M. (2017). ​Organizational Behavior​(5th
ed.). Wiley Global Education

Hitt, M. A., Miller, C. C., and Colella, A. (2012). ​Organizational Behavior (3rd ed.). Wiley
Global Education

Luthans, F. (2010). ​Organizational Behavior​(12th ed.). McGraw-Hill Education.

Mullins, L. J. (2010). ​Management and Organisational Behaviour​(9th ed.). Pearson

Higher Ed.

Electronic Sources

Retrieved August 8, 2020 from

https://eom.org/content-hub-blog/organizational-citizenship-behaviours
Retrieved August 8, 2020 from
https://pdfs.semanticscholar.org/e832/bc67dc5da11d5d574997c9e42dfd3b1bc9f1.pdf

Retrieved August 7, 2020 from

https://courses.lumenlearning.com/wmopen-organizationalbehavior/chapter/personality-and-beh
avior-in-the-workplace/

Retrieved August 7, 2020 from

https://www.simplypsychology.org/personality-a.html
McLeod, S. A. (2017). ​Type A personality.​ Simply Psychology.

Retrieved August 7, 2020 from

https://www.simplypsychology.org/big-five-personality.html
Lim, A (2020, June 15). ​The big five personality traits​. Simply Psychology.

Retrieved August 7, 2020 from

http://www.psychologycampus.com/social-psychology/self-monitoring.html

Retrieved August 7, 2020 from

https://www.truity.com/myers-briggs/about-myers-briggs-personality-typing

Retrieved August 7, 2020 from

https://www.tutorialspoint.com/organizational_behavior/organizational_behavior_personality.htm

Retrieved August 7, 2020 from

https://openpsychometrics.org/printable/big-five-personality-test.pdf

Retrieved August 7, 2020 from

http://paulspector.com/scales/our-assessments/job-satisfaction-survey-jss/

Retrieved August 4, 2020

https://www.myersbriggs.org/my-mbti-personality-type/mbti-basics/
 Module 5
MOTIVATION IN THE WORKPLACE

Module Introduction
Motivation is essentially about the drive and commitment to doing something. From the
point of view of business, motivation is somebody’s willingness to work. However, it’s just not
about completing a job or working hard but rather it comes from enjoying the work that one is
doing and wanting to reach certain goals that one has set for himself/herself like getting a
promotion. Moreover, it might be something where someone feels a sense of satisfaction from
accomplishing something or having successful results after a very challenging situation. In
short, people's behavior can also be determined by what motivates them.
Since motivation is an integral part of human resource management, it plays a very
important role in the growth of the organization. Motivation is often used to lead employees to
become productive members of the organization because motivated employees are assets of
the organization.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Describe the theories of motivation; and
2. Analyze how motivation plays a big role in organizational behavior.

THE MEANING AND NATURE OF MOTIVATION

Motivation in the workplace is defined as the willingness to exert high levels of effort
toward organizational goals conditioned by the effort’s ability to satisfy some individual needs
(Robbins in Mobbs and McFarland, 2010). It has been a focus of research by experts for more
than a century for the very reason that knowing what drives people to do what they do because
motivated employees results in better organizational performance. Likewise motivated
employees report to having higher levels of customer satisfaction and employee retention
(Campbell, n.d.).
Most HR and talent management professionals are aware of and have tried to apply
many of the motivation theories that have been introduced over the years. Most notable of them
are Maslow’s hierarchy of needs, Locke’s goal-setting theory, Skinner’s reinforcement theory,
Adam’s equity theory, and Vroom’s expectancy theory, to name just a few, all made their way
into management textbooks, all speculating on how to best motivate employees to increase
profits.

Theories of motivation
MOTIVATION theories can be distinguished between content and process motivation
theories. Content theories which are also called the need theories focus on WHAT, while
process theories focus on HOW human behaviour is motivated. Within the work environment
content theories which are the earliest theories of motivation have had the greatest impact on
management practice and policy, but are the least accepted in the academic community.
Though content theories cannot explain entirely what motivates and demotivates people, it tries
to identify what our needs are and relate motivation to the fulfillment of these needs. Process
theories are concerned with the occurrence of motivation and what influences the occurrence of
motivation.

The main content theories are: Maslow’s needs hierarchy, Alderfer’s ERG theory,
McClelland’s achievement motivation and Herzberg’s two-factor theory.

The main process theories are: Skinner’s reinforcement theory, Victor Vroom's expectancy
theory, Adam’s equity theory and Lock’s goal setting theory (Figure 1).

No single motivation theory explains all aspects of people’s motives or lack of motives. Each
theoretical explanation can serve as the basis for the development of techniques for motivating.

Exhibit 5.1.
Motivation theories

Maslow hierarchy of needs

This is the earliest and most widely known theory of motivation, developed by Abraham
Maslow (1943) in the 1940s and 1950s. According to Maslow, needs are classified into five
basic categories which are ordered in his hierarchy, beginning with the basic psychological
needs and continuing through safety, belonging and love, esteem and self-actualization (Figure
2). In his theory, the lowest unsatisfied need is the most significant needs and individuals seek a
higher need when lower needs are fulfilled.
Maslow's hierarchy of needs is always shown in the shape of a pyramid where physiological
needs are at the bottom of the pyramid and the need for self-actualization at the top.
 Exhibit 5.2
Maslow’s Hierarchy of Needs (Source: Author's own figure)

1. Physiological needs (e.g. food, water, shelter, sleep)

Physiological needs are the most basic needs of humans to survive like water, air and food.
Maslow emphasized that our body and mind cannot function well if these needs are not
satisfied. A person who lacks food, safety, love (also sex) and esteem, would most probably
hunger for food (and also for money, salary to buy food) than for anything else.

2. Safety and security (secure source of income, a place to live, health and well-being)
If the physiological needs are relatively well contented, new needs will appear, the so called
safety needs. Safety needs refer to a person’s desire for security or protection.In reality, in real
dangers and traumas “ like war, murder, natural catastrophes, criminal assault, etc. -, the needs
for safety become an active, first-line and dominant mobilizer of human beings.

3. Belongingness and love (integration into social groups, feel part of a community or a
group; affectionate relationships) When both the physiological and the safety needs are fulfilled,
the affection, love and belongingness needs come next. Maslow claimed people need to belong
and be accepted among their social groups.

4. Esteem (respect for a person as a useful, honourable human being)

Esteem means being valued, respected and appreciated by others. People need to feel
significant, useful, or valued by others. People with low self-esteem often need respect from
others.

5. Self-actualization (individual’s desire to grow and develop to his or her fullest potential)
What humans can be, they must be. (Maslow, 1954)

Self-actualization reflects an individual’s desire to grow and develop to his/her fullest

potential. Maslow described this level as the need to accomplish everything that one can, to
become the most that one can be. Maslow believed that people must overcome their other
needs “ described above -, not only achieve them. However as one satisfies one level, people
will crave to satisfy the next level in the hierarchy and the next higher level and so on and so
forth.

Alderfer ERG theory: Existence needs, relatedness needs and growth needs

According to Alderfer (Furnham, 2008) there are three classes of needs: existence ,
relatedness and growth. Maslow’s physiological and safety needs belong together to existence
needs. Relatedness can be harmonised to belongingness and esteem of others. Growth is the
same as Maslow’s self-esteem plus self-actualization. Both Maslow and Alderfer tried to
describe how these needs, more or less important to individuals.

Existence Needs
These Include all material and physiological desires (e.g., food, water, air, clothing, safety,
physical love and affection). Maslow's first two levels.

Relatedness Needs
Encompass social and external esteem; relationships with significant others like family,
friends, co-workers and employers . This also means to be recognized and feel secure as part
of a group or family. Maslow's third and fourth levels.

Growth Needs
Internal esteem and self actualization; these impel a person to make creative or productive
effects on himself and the environment (e.g., to progress toward one's ideal self). Maslow's
fourth and fifth levels. This includes desires to be creative and productive, and to complete
meaningful tasks.

Alderfer agreed with Maslow that unsatisfied needs motivate individuals. Alderfer also
agreed that individuals generally move up the hierarchy in satisfying their needs; that is, they
satisfy lower-order before higher-order needs. As lower-order needs are satisfied, they become
less important, but Alderfer also said: as higher-order needs are satisfied they become more
important. And it is also said that under some circumstances individuals might return to a lower
need. Alderfer thought that individuals multiply the efforts invested in a lower category need
when higher categorized needs are not consequent.

McClelland Need for achievement, affiliation and power

In the early 1960s David McClelland built on Maslow’s work described three human
motivators. McClelland (Arnold et al., 2005) claimed that humans acquire, learn their motivators
over time that is the reason why this theory is sometimes called the Learned Needs Theory. He
concurred that people have three motivating drivers, and it does not depend on our gender or
age. One of these drives or needs will be dominant in our behaviour and this depends on our
culture and life experiences. Although each person has all of these needs to some extent, only
one of them tends to motivate an individual at any given time and whichever this need is would
characterize his or her behavior. This in turn results in diversified behavior of employees.
 These three motivators are:
1. Achievement
Achievement motivation refers to a person’s need for success or mastery of skills and is
related with a range of actions. Individuals seek achievement of challenging goals, and
furtherance in their job. Individuals with a high need for achievement like to receive regular
feedback on their progress and achievements; and often like to work alone; seek challenges
and like high degree of independence.Sources of high need for achievement can be: getting
praise for success, goal setting skills, one’s own competence and effort to achieve something,

2. Affiliation
Affiliation motivation is the need for love, belonging and relatedness. People with affiliation
motivation have a strong need for friendships and want to belong within a social group, need to
be liked and held in popular regard. They are team players, and they may be less effective in
leadership positions. High-need-for-affiliation persons mostly have warm interpersonal
relationships.

3. Power
Power motivation is a need to control over one’s own work or the work of others. These
persons have a strong need to lead and to succeed in their ideas.Persons with this type would
like to control and influence others. McClelland argues that with a strong need for achievement
people can become the best leaders. The problem with this type of people is that they expect
the other people around them to be as achievement-focused and result-driven as they are.

Herzberg Two factor theory

Herzberg’s Two Factor theory is also called motivation-hygiene theory. This theory says that
there are factors (motivating factors) that cause job satisfaction, and motivation and some other
also separated factors (hygiene factors) cause dissatisfaction (Exhibit 5.3). That means that
these feelings of satisfaction and dissatisfaction to these factors are not opposite of each other,
as it has always previously been believed. The opposite therefore of satisfaction is not
dissatisfaction, but rather, no satisfaction. According to Herzberg (1987) the job satisfiers deal
with the factors involved in doing the job, whereas the job dissatisfiers deal with the factors
which define the job context.

Exhibit 5.3
Herzberg’s view of satisfaction and dissatisfaction
 According to Herzberg’s there are five factors of job satisfaction (motivating factors) which
are the only factors that can motivate. Likewise there are also five factors of job dissatisfaction
that we need to achieve more efficient work. These are shown in the table below:

Factors of Job Satisfaction Factors of Job Dissatisfaction

achievement company policy and administration

recognition supervision

work itself salary

responsibility interpersonal relationships

advancement working conditions

Exhibit 5.4
Factors of Job Satisfaction and Dissatisfaction

Hygiene factors are needed to ensure that an employee is not dissatisfied. Motivation
factors are needed to ensure employee's satisfaction and to motivate an employee to higher
performance.

Exhibit 5.5
The Motivating and Hygeine Factors

Hygiene factors are needed to ensure that an employee is not dissatisfied. Motivation
factors are needed to ensure employee's satisfaction and to motivate an employee to higher
performance.
 Exhibit 5.6
Summary of Content Theories of Motivation (Source: Author's own table)
Maslow Alderfer McClelland Herzberg
Physiological
Existence
Safety and security Hygiene
Belongingness and love Relatedness Need for Affiliation
Self-esteem Need for power
Growth Motivators
Self-actualization Need for achievement

Skinner's reinforcement theory

Behavior can be formed by its consequences (Gordon, 1987) according to Skinner’s operant
conditioning theory. ​Positive reinforcements​, for example verbal praise, appreciation, extra
vacation days, stock options or any other reward can increase the possibility that the rewarded
behaviour will happen again. Positive verbal feedback and high grade on examination that a
student receives will encourage the recurrence of the behavior that caused the rewards.
Negative reinforcement occurs for example when we try to reduce stress by altering employee
hours. In this case altering employee hours is a negative reinforcement because it reduces the
unpleasant state (state). Contrary to positive and negative reinforcement, ​punishment can be
undesired reinforcement, or reinforce undesired behaviour.
The reinforcement theory is included in many other motivation theories. Reward must meet
someone's needs, expectations, must be applied equitably, and must be consistent. The desired
behaviour must be clear and realistic, but the issue remains: which reinforcements are suitable
and for which person?

Vroom's expectancy theory

The expectancy theory places an emphasis on the process and on the content of motivation
as well, and it integrates needs, equity and reinforcement theories.
Victor Vroom's (1964) expectancy theory aims to explain how people choose from the
available actions. Vroom defines motivation as a process that governs our choices among
alternative forms of voluntary behaviour. The basic rationale of this theory is that motivation
comes from the belief that decisions will have their desired outcomes.
The motivation to engage in an activity is determined by appraising three factors. These
three factors are the following (Figure 4):
• ​Expectancy – a person’s belief that more effort will result in success. This means that
better performance will result if someone works harder.
• ​Instrumentality – the person’s belief that there is a connection between activity and goal.
If you perform well, you will get reward.
• ​Valence​ – the degree to which a person values the reward, the results of success.
The expectancy theory highlights individual differences in motivation and contains three
useful factors for understanding and increasing motivation. This theory implies equity and
importance of consistent rewards as well (Konig & Steel 2006).
The theory suggests that although individuals may have different sets of goals, they can be
motivated if they believe that:
 1. There is a positive correlation between efforts and performance,
2. Favorable performance will result in a desirable reward,
3. The reward will satisfy an important need,
4. The desire to satisfy the need is strong enough to make the effort worthwhile.

Adams' equity theory

The equity theory states that people are motivated if they are treated equitably, and receive
what they consider fair for their effort and costs.
The theory was suggested by Adams (1965) and is based on Social Exchange theory.
According to this theory, people compare their contribution to work, costs of their
actions and the benefits that will result to the contribution and benefits of the reference
person. If people perceive that the ratio of their inputs-outputs to the ratio of referent
other's input-output is inequitable, then they will be motivated to reduce the inequity
workers put inputs into the job, such as education, experience, effort, energy, and expect
to get some outcomes such as salary, reward, promotion, verbal recognition, and
interesting and challenging work each in equal amounts (Figure 6).

Exhibit 5.7
Examples for the inputs and outcomes in the equity theory
(Source: Author's own figure)

When inequity exists, a person might​…

• ​reduce his/her inputs, efforts, quantity or quality of his/her work
• ​try to increase his/her outputs
• ​adjust his/her perception of reference person or his/her outcomes or inputs
• ​change the reference person
• ​quit the situation.
Locke's goal-setting theory
Locke's (1990) goal setting theory is an integrative model of motivation just like the
expectancy theory.
It emphasizes that setting specific, challenging performance goals and the commitment
to these goals are key determinants of motivation. Goals describe a desired future, and
these established goals can drive the behaviour. Achieving the goals, the goal
accomplishment further motivates individuals to perform. Goals should be specific so
they can be measured, challenging so they would be more motivational and should
require involvement so it would be accepted.
The following guidelines have been useful in the goal-setting​:
• ​Set challenging but attainable goals.​
• ​Set specific and measurable goals​.
• ​Goal commitment should be obtained.​
• ​Support elements should be provided.​
• ​Knowledge of results is essential

Exhibit 5.8
Locke's goal-setting theory

Alienation at work
Alienation in the workplace happens when a worker can express individuality only when
they are producing work. Feelings of alienation can happen without the employee or employer
even realizing it. When they lose their independence and become just another part of a bigger
picture they feel emotionally separated from others and this is when they feel alienated. When
they begin to have this feeling from managers, co-workers and peers, they feel like they are just
objects of the organizations. As a consequence, since they do not feel appreciated and are not
needed in their jobs, they lose their loyalty to their company and are eager to look for other
jobs.

Types of Alienation
1. Alienation from production.
This type of alienation happens when the worker does not see the final product
they produce; rather, they focus only on a piece of what they are producing. As a
 result, workers don't understand what role they play in the entire process.

2. Alienation from the act of production.

This happens when an employee is only given a set of instructions to complete;
they do not get the instructions for the entire process. The employee never has a
role in the whole vision or planning, and they are made to feel that those who
create the vision are an elite class.

3. Alienation from themselves.

By nature, people want to be creative and then implement those ideas. This type
of alienation happens when people cannot maintain that part of their humanity;
they feel as though they cannot be themselves. They may even begin to feel like
they are not human.

4. Alienation from others.

This type of alienation tends to happen when workers specialize in a small piece
of a larger whole. While it may be good for employees to have a specialty, these
employees begin to feel like they are in a thankless job, and they also may feel
like they're missing out on bonding with others.

HOW EMPLOYEES FEEL ALIENATION

There are many ways companies alienate employees, sometimes without even realizing it.
That's why it's important to pay attention to the signs your employees are giving you.Here are
some ways you may be alienating your employees

1. Keeping them in the dark.

2. Not asking for their input.
3. Keeping them boxed in.
4. Ignoring their goals.
5. Working them too hard.
6. Playing favorites. Instead.
7. Not valuing them.

Work from Home and Other Alternative Work Arrangement

Managing Flexible Work Arrangements

(​https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingflexiblewor
karrangements.aspx​)

This article provides an overview of practices concerning the use of flexible work arrangements
as a strategic staffing management solution. It addresses the opportunities and challenges
associated with adopting and managing flexible work arrangements, the types of flexible work
arrangements, and the legal issues associated with such arrangements
Overview rotating days or weeks of emissions and
in-office presence with telework, workplace "footprints" in
The 2020 COVID-19 pandemic and phasing in return-to-work terms of creation of
has placed flexible work starting with a reduced schedule new office buildings.
arrangements, especially and transitioning back to
telework, in the spotlight. With full-time. ● Allowing for business
many states issuing continuity during
stay-at-home orders and Weighing the Opportunities and emergency
allowing only essential Challenges circumstances such as
businesses to keep their Many U.S. workers now consider a weather disaster or
physical locations open, work/life balance and flexibility to pandemic.
unprepared employers were be the most important factors in
forced to implement flexible work considering job offers. In fact, 80 A companywide Unilever policy
options on the fly. percent of employees said they permits more than 100,000
would be more loyal to their employees except factory
Eventually, social distancing employers if they had flexible production worker to work
orders will be lifted, and work options, according to a anytime, anywhere, as long as
businesses will reopen; 2019 survey by FlexJobs​. they meet business needs.
however, employee requests for Leadership identified the
flexible hours and remote-work However, offering flexible work following benefits when making
arrangements may be part of the arrangements can involve a the business case for the policy:
new normal. Now that many paradigm shift for organizations, ● Travel. Conferencing
employers have experienced especially smaller ones that may technology like Skype
how successful telecommuting not have the critical mass of would reduce travel
can be for their organization or technology, budget, expenses.
how work hours that differ from management and competitive
the normal 9-to-5 can be flexibility necessary to make ● Technology. Upgrading
adopted without injury to extensive use of flexible work technology would help
productivity, offering flexible arrangements. the company stay
work arrangements may become competitive and build
even more commonplace. OPPORTUNITIES Unilever's brand as a
Flexible work arrangements offer best place to work.
Even in the absence of a numerous benefits to both Costs would be offset
pandemic, flexible work employers and employees. Such by other savings.
arrangements can improve benefits include:
recruitment and retention efforts, ● Assisting in recruiting ● Real estate. Cubicles
augment organizational diversity efforts. and offices would be
efforts, encourage ethical converted to communal
behavior and help the ● Enhancing worker facilities, thereby
organization's efforts to be morale. reducing space
socially responsible. Employers requirements by 30
can experience cost savings, ● Managing employee percent. Sites would be
improved attendance and attendance and converted gradually as
productivity, and an increase in reducing absenteeism. leases expired.
employee engagement.
● Improving retention of ● Health. Onsite fitness
Supporting Working Parents good workers . facilities would increase
Whether allowing for flexible employee satisfaction,
work hours for employees with ● Boosting productivity. help reduce illness and
children at home during the cut insurance costs.
COVID-19 pandemic, or offering ● Creating a better
flexible work arrangements on work/life balance for ● Work/life balance.
an on-going basis, supporting workers. Empowering workers
working parents is an employee would enhance
engagement and satisfaction ● Minimizing harmful work/life balance.
necessity. In addition to the impact on global Satisfaction ratings
more-traditional work flex ecology. Certain flexible would rise, and
options discussed later in this work arrangements can recruitment would
article, employers may want to contribute to become easier.
consider creative options, such sustainability efforts by
as staggering employee shifts, reducing carbon ● Sustainability.
 Reducing travel, office ● Upper management's core hours within a specified
energy costs and resistance to change. period, allowing the employee
paperwork would greater flexibility in starting and
decrease the ● Control issues, ending times.
environmental footprint. especially in terms of
supervision of work. Examples of Different Flexible
● Retention and Work Arrangements
engagement. Flexibility ● Working as a team with ● Staggered hours within
would enhance the far-flung members and a fixed schedule:
employer value highly variant Employees establish
proposition, improving schedules. starting and ending
retention and times that differ from
supporting diversity. ● Maintaining safety and the department’s norm,
security of personnel but keep the same
CHALLENGES and data. schedule each day
Managers tasked with ● Core hours within a
implementing strategic goals Schedule Flexibility variable schedule:
related to flexible work Employees must be
arrangements need to keep There are several types of present during specified
many things in mind: schedule flexibility: core hours determined
● Keeping programs Not all types are manageable or by the
relevant to workers' real worthwhile for all sizes and types supervisor/manager,
needs/wants. of organizations, so every but may adjust their
employer considering this arrival and departure
● Focusing on the unique arrangement should undertake times each day. It is
needs of specific an organizational assessment to expected that the
groups of workers determine whether and what employee will work a
without creating a kind of flexible scheduling will set number of hours
second class of meet its needs. each week.
workers and without From an industry perspective,
engaging in unlawful Colorado-based HealthONE, a ● Variable day:
disparate treatment or hospital services alliance, Employees may work a
disparate impact discovered that flexible work consistent schedule of
discrimination. schedules could stem the loss of a different number of
employees unable to fit their hours each day as long
● Communicating broadly work around their children's as they achieve the
to achieve the benefits school hours. Certain school expected number of
of flexible work districts in Colorado hold classes hours within the week
arrangements. in a (e.g., Monday,
nine-weeks-on/three-weeks-off Wednesday ten hours;
● Exercising caution rotation, so HealthONE offered Tuesday, Friday eight
when eliminating a employees that same rotation in hours; Thursday six
program that is not their work schedules. This and a half hours).
working or is no longer approach was more
relevant to enough cost-effective than replacing ● MidDay Flextime:
workers. Any loss of a departing employees in an Employees may take a
benefit can impair extremely competitive market for longer scheduled break
morale, even if only a health care talent. than usual if they make
few workers had used up the extra time by
it. Employers should FLEXTIME starting work earlier or
consider phasing out Flextime is a type of alternative staying later
unproductive programs schedule that gives a worker
over time. greater latitude in choosing his
or her particular hours of work, COMPRESSED WORKWEEK
In addition, managing the or freedom to change work Compressed workweek is an
change from a traditional work schedules from one week to the alternative scheduling method
environment to one with more next depending on the that allows employees to work a
flexible work arrangements can employee's personal needs. standard workweek of 40 hours
create or throw a spotlight on Under a flextime arrangement, over a period of fewer than five
various managerial trouble an employee might be required days in one week or 10 days in
spots, such as: to work a standard number of two weeks. For example, some
employers implement a four-day
workweek of 10-hour days.
Employers get the same number
of working hours, but employees
have a three-day weekend every
week. Another approach is the
9/80 schedule, in which
employees work 80 hours in nine
days and have one day off every
other week. Among other
demographics, employees
whose family status involves
child care or elder care
responsibilities may find a
compressed workweek to be of
particular value. Employees
save time and commuting
expenses by reporting for duty
on fewer days. Employers that
convert their entire operation to
a four-day workweek may save
on the cost of utilities and other
overhead.
SHIFT WORK
Shift work has traditionally been
used in manufacturing
environments to maximize
productivity from fixed resources
and costs. More recently, shift
work has become a feature of
the 24/7 service economy and a
byproduct of globalization. For
example, supermarkets and
computer help desks are now
typically open 24 hours a day,
seven days a week. Nowadays,
a computer user calling for
technical support during regular
U.S. business hours is likely to
end up speaking with a
technician working the
"graveyard shift" in India.
Despite its extensive use in
certain environments, shift work
poses some practical challenges
for some employers.
Creating a motivating work setting
To some extent, a high level of employee motivation is derived from effective
management practices. To develop motivated employees, a manager must treat people as
individuals, empower workers, provide an effective reward system, redesign jobs, and create a
flexible workplace.
1. Empowering employees
Empowerment is based on the idea that providing employees with the resources,
authority, opportunity, and motivation to do their work, as well as holding them
PART-TIME JOBS
Part-time jobs are the most
traditional of flexible scheduling
options. This option is typically
used when a job requires fewer
than 40 hours of work per week.
Part-time work can be used to
attract a workforce that includes
students, parents of young
children, older workers and
others who need or want to work
but do not wish to work a
full-time schedule. Although
more commonly associated with
jobs in retail and food service,
some employers do have
part-time professional
employees. Part-time work can
help organizations retain
professionals who otherwise
would be lost.
JOB-SHARING
Job-sharing is the practice of
having two different employees
performing the tasks of one
full-time position. Each of the
job-sharing partners works a
part-time schedule, but together
they are accountable for the
duties of one full-time position.
Typically, they divide the
responsibilities in a manner that
meets both of their needs as well
as those of the employer. The
practice allows for part-time
schedules in positions that the
employer would not otherwise
offer on a part-time basis. It
requires a high degree of
compatibility, communication
and cooperation between the
job-sharing partners and with
their supervisor.
Like part-time jobs, job-sharing
arrangements may appeal
particularly to students, parents
of young children and
employees nearing retirement,
helping them balance careers
with other needs. For employers,
the practice may include
retention of skilled employees,
increased employee loyalty and
productivity, and a measure of
flexibility that can occur when
two people fill one job slot.
Location Flexibility
Location flexibility refers to
arrangements that make it
possible for employees to work
remotely from the main worksite.
There are several types of
location flexibility.
Telecommuting is the most
common. Other practices include
hoteling and so-called snowbird
programs.
TELECOMMUTING
Telecommuting, also known as
telework, involves the use of
computers and
telecommunications technology
to overcome the constraints of
location or time on work. In a
global economy, physical
location has become less
important than efficiency of
operations. Telework may occur
from home, a telework center, or
on an airplane or bus.
Telework is best suited for jobs
that require independent work,
little face-to-face interaction,
concentration, a measurable
work product and output-based
(instead of time-based)
monitoring. Nevertheless,
telecommuting is not unknown in
jobs—even HR jobs—that do
not fit this mold.
 accountable for their actions, will make employees happier and more proficient.
Empowering employees through the use of resources, extending authority, providing
opportunities and creating an environment with a sense of ownership and responsibility
will make employees motivated.

2. Providing an effective reward system

Studies have shown that employees are ultimately motivated by two goals, earning
money and being fulfilled within their job. By putting an effective employee reward
system both extrinsic and intrinsic in place to increase motivation, you are making sure
that they deserve to earn the rewards for their hard work and in turn you will have no
problem with their performance.

3. Redesigning jobs
The concept of job redesign, which requires a knowledge of and concern for the human qualities
people bring with them to the organization, applies motivational theories to the structure of work
for improving productivity and satisfaction. When redesigning jobs, managers look at both job
scope and job depth.

Redesign attempts may include the following:

● Job enlargement. Often referred to as horizontal job loading, job enlargement increases
the variety of tasks a job includes. Although it doesn't increase the quality or the
challenge of those tasks, job enlargement may reduce some of the monotony, and as an
employee's boredom decreases, his or her work quality generally increases.

● Job rotation. This practice assigns people to different jobs or tasks to different people on
a temporary basis. The idea is to add variety and to expose people to the dependence
that one job has on other jobs. Job rotation can encourage higher levels of contributions
and renew interest and enthusiasm. The organization benefits from a cross-trained
workforce.

● Job enrichment. Also called vertical job loading, this application includes not only an
increased variety of tasks, but also provides an employee with more responsibility and
authority. If the skills required to do the job are skills that match the jobholder's abilities,
job enrichment may improve morale and performance.

Job Characteristics Model (JCM) by Hackman and Oldham

According to The Job Characteristics Model the presence of five core job dimensions ensures
three psychological states. These psychological states in turn influence desirable work
outcomes like quality of work, job satisfaction etc. Below is the Job Characteristic Model as
presented by Hackman and Oldham..
 Exhibit 5.9
JCM by Hackman and Oldham

Critical Psychological States

The five core job dimensions stated below result in three different psychological states.
1. Experienced meaningfulness of the work: The extent to which people believe that their
job is meaningful, and that their work is valued and appreciated.

2. Experienced responsibility for the outcomes of work: The extent to which people feel
accountable for the results of their work, and for the outcomes they have produced.

3. Knowledge of the actual results of the work activity: The extent to which people know
how well they are doing.

Core Job Dimensions

1. Skill variety: This refers to the range of skills and activities necessary to complete
the job.

2. Task identity: This dimension measures the degree to which the job requires
completion of a whole and identifiable piece of work.
 3. Task significance: This looks at the impact and influence of a job.

4. Autonomy: This describes the amount of individual choice and discretion involved
in a job.

5. Feedback: This dimension measures the amount of information an employee

receives about his or her performance, and the extent to which he or she can see
the impact of the work.

End of Chapter Test

MULTIPLE CHOICE. Answer the following statements correctly by selecting the letter of your
chosen answer.
1. Forces within a person, resulting in effort toward goal achievement.
A. Personality
B. Memory
C. Motivation
D. NOTA
2. It refers to the perceived connections between performance and outcomes.
A. Expectancy
B. Valence
C. Instrumentality
D. Value
3. The proponent of the Expectancy Theory is ______________________.
A. Alderfer
B. Vroom
C. McClleland
D. NOTA
4. Listed below are the hygienes as described by Frederick Herzberg except one.
A. Pay
B. Security
C. Working Conditions
D. NOTA
5. Equity theory was proposed by ___________.
A. Maslow
B. Adams
C. Alderfer
D. NOTA
6. Motivational concepts are stable differences that energize and maintain a person’s
behavior.
A. True
B. False
7. The following are motivators except _________.
A. Recognition
B. Status
C. Challenging work
D. NOTA
 8. The following are process theories of motivation except ______.
A. Expectancy
B. Equity
C. Goal-setting
D. NOTA

ESSAY. ​Briefly explain what is being asked in the following statement.

1. Using any of the theories of motivation discussed earlier, cite particular instances where
motivation plays a big role in the organizational behavior. And how do you think
management can increase motivation of employees?

_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________
_______________________________________________________________

References
Books
Robbins, SP, 1994, Organizational Behavior, 6th edition, Prentice Hall of India, New
Delhi.

Management and Motivation, Vroom, V.H., Deci, E.L., Penguin 1983 (first published
1970)

[This book contains selected readings on "motivation"; Including Simon, Maslow, Herzberg,
Vroom, Lawler etc.]

Electronic References
Retrieved from
http://www.thehrpractice.in/prerana-archives/2017/5/20/a-motivation-theory-job-characteristics-
model-management-funda-v4-issue-3​, ​August 6, 2020

Retrieved from
https://www.businessnewsdaily.com. August 6, 2020

Retrieved from
https://www.cliffsnotes.com/study-guides/principles-of-management/motivating-and-rewarding-e
mployees/motivation-strategies​, ​ August 6, 2020

Retrieved from
https://blog.smarp.com/empowerment-in-the-workplace-enable-your-employees​, ​August 6, 2020

https://www.getkisi.com/unlocked/rewards-for-employee-motivation​, ​August 6, 2020

Retrieved from
Video:​https://study.com/academy/lesson/workplace-motivation-theories-types-examples.html​,
August 7, 2020

Retrieved from
Video: ​ https://study.com/academy/lesson/hackman-oldhams-job-characteristics-model.html
(​http://execdev.kenan-flagler.unc.edu/blog/the-role-of-motivation-in-the-workplace​), August 7,
2020
 Module 6
STRESS MANAGEMENT AND WORK LIFE BALANCE

Module Introduction
As individuals grow old, responsibilities and challenges become part of our daily living.
We experience getting through these and yet there are times that it is seemingly inevitable to
avoid stress. When we are unable to cope up to deadlines, hit the target or accomplish our
goals, we eventually feel stressed. Hence, most people think that it is common to go through
stressful situations. What matters is how they are able to manage this.
Job stress is also present in any organization. Some employees are challenged to meet
the demands of their jobs while others do not know how to balance the requirements of their
work and their personal life. In the context of organizational behavior, stress and work life
balance go hand in hand. This module deals on how important it is to manage stress in one’s
life and work as well. Discussion on the concepts of work life balance shall likewise be included,
where quality of work life will also be introduced.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Explain the importance of managing stress in the workplace;
2. Describe how the concepts of work-life balance relate to stress management

Nature and Sources of Stress

Generally, almost everyone knows what it feels like to be stressed. It has been a topic
arguable to various researchers and psychologists, as its definition and concept itself have been
a question for several years. ​Stress is defined as the reaction of individuals when the demands
in situations exceed their ability to cope up and meet the expectations. Stress can be
manifested in humans physically and psychologically. Most people who experience stress think
that this can probably affect their wellbeing, and can result in frustrations and feeling of tension.
In the workplace scenario, it is also unavoidable to encounter stress. The term ​job stress is
used to explain the mental, physical and emotional strain of employees when the job demands
are conflicting with their abilities and means. One may not really be able to avoid stress, but
there are ways to manage it.
A question was raised regarding the existence of stress -- Are all types of stress bad?
When a person gets out of his comfort zone, he/she may experience stress. The same is true
when someone is getting married, moving from one school to another or even changing careers
or any job. Isn’t it that even stress can do good to you too? Getting out of your comfort zone
leads you to more opportunities, unleash your inner skills and even develop your self-esteem.
The wedding preparation may be tedious and stressful, but at the end of the day, you feel more
than happy and satisfied marrying your favorite person in the world. Transferring from one
school to another gives you a chance to meet new friends and learn with other people. Having a
new job brings you a challenge to show your capabilities. Ergo, not all stress is negative. Most
of us actually do not notice that we also benefit from this.
The bad stress which is common to everyone is coined as ​dystress​. This type of stress
is negative and really means the term “stress” that brings pressure and uneasy feeling to
individuals. On the other hand, the above mentioned examples exhibit ​eustress​. This refers to
the positive stress that one may experience as difficult and challenging but leads to positive
outcomes.
 Stress can also be classified as acute or chronic. Short-term reactions to immediate
threats is known as ​acute stress​.This is considered as the most common kind of stress that
people are experiencing. For instance, students have common deadlines for all of their course
requirements. Students feel stressed as they do not know how to be able to meet all the
requirements on time. This form of stress can be categorized as acute stress, since after that all
those requirements are submitted on a particular date, the stress is over. The stress is only
short-term.
While long-term and persisting stress is called ​chronic stress​. This kind of stress lasts
for months and even years. Classic example of chronic stress is when an individual encounters
a traumatic experience. It takes time before the individual is able to forget the stressful scenario
making it difficult for him to move forward. Most people experiencing chronic stress tend to live
with them the problems and endeavors without looking for solutions.

Both are negative to individuals’ wellbeing but chronic stress is more severe. Mayo Clinic
has cited conditions that can result from Acute and Chronic Stress.

Exhibit 6.1
Stress-Related Conditions
Adapted from Hitt, Miller and Collela (2012)

Causes of Stress
Stress arises from various conditions and factors in the environment. These are known
as ​stressors​.

Individual Stressors
1. Type A and B Personality. Since people with Type A personality are competitive,
aggressive and impatient, they are more prone to stress compared with those of Type B
 personality. In the workplace, Type A personalities tend to accept more workloads and
spend more hours. Being competitive, they even do tasks at home and only have a few
time to relax. Hence, stress comes their way.
2. Self-esteem and personal control. People with low self-esteem are most likely to
encounter stress. They often feel that they have a little control over various situations.
On the other hand, people with high self-esteem are confident, believing that they have
the ability to manage challenging situations.
3. Hardiness. This refers to the ability of an individual to tolerate and cope in challenging
and difficult situations. Basically, low hardiness results in more stress-related
experiences for individuals. High hardy individuals have lower levels of stress because
they are able to manage challenging situations. High hardy individuals are tough and
resilient.
4. Gender. Research showed that women are more prone to stress compared to men.
Women, by nature, are emotional and often seek social support.

Group Stressors
1. Group cohesiveness. It is important that a group become cohesive or together. Group
cohesiveness reduces the occurrence of conflicts. This therefore results in a lower rate
of stress in groups.
2. Social support. Individuals need others to keep them company. They often need to
release and express what they feel to others, whether this is something positive or
problem related. Thus, lack of social support can result in a more stressful situation.
When people feel like they're alone in the challenges that they are facing, the more
stressed do they get.

Organizational Stressors
1. Role ambiguity. This means that an employee does not know clearly what his job is and
what is actually expected and required of him. Ambiguous role and lack of clarity in the
organization brings about stress to individuals since they tend to become anxious about
what they are doing.
2. Role conflict. This refers to the role-related factor whereby an individual is faced with
simultaneous roles and complying to one makes it difficult to comply with the other.
Contradictory roles make it stressful for an individual to make decisions in the workplace.
3. Resource Inadequacy. Resources in the organization include people, time, supplies and
equipment and others. Lack of resources may result in difficulty in accomplishing given
tasks. Employees face stress when the job demands are high but the resources are
inadequate.
4. Work Overload. Increasing job demands often result in stress. People who have heavy
loads at work experience difficulty in managing work and personal life. Those with high
job demands spend longer working hours. Both their physical, mental and psychological
state of an individual become at stake due to voluminous tasks. It results in hostility and
overfatigue.
5. Management Style. The way the organization and employees are managed affect the
stress level of an individual. This is due to pressure that one may experience due to
management and leadership styles.
6. Job insecurity. When one feels insecure about their jobs, they feel stressed in the
organization. Security of tenure can make one feel relieved about his job status.
 7. Work environment. The environment where an employee works can affect the stress
level of an individual. For instance, when the physical working condition is not good, it
makes the individual uncomfortable in the workplace. The same is true when the
psychological aspects like relationships with the colleagues, are working well, less
pressure and stress are experienced by the employees.

Consequences of Stress
Stress when not properly managed may result in several negative consequences.
Individuals, groups and organizations may experience various undesirable effects with
accompanying signs and symptoms. These stress manifestations have direct effects to
individuals’ physical, emotional, mental, spiritual, or relational wellbeing. To be able to create
stress management strategies, it is important to identify those signs and symptoms that may
occur when an individual experiences stress.

Exhibit 6.2
Sign and Symptoms of Stress
PHYSICAL MENTAL EMOTIONAL SPIRITUAL RELATIONAL

1. Appetite
Change
2. Tightnes
s in Neck
1. Difficulty
3. Upset
solving
Stomach
problems,
4. Pounding
making 1. Frustratio
Heart
decisions, n
5. Accident 1. Isolation
concentra 2. Depressi
Pronene 2. Intoleranc
ting, and on
ss 1. Emptines e
calculatin 3. Mood
6. Cold s 3. Clamming
g Swings
Feet and 2. Loss of up
2. Negative 4. Quick to
Hands Meaning 4. Sexual
self talk Anger
7. Sweating 3. Doubt Problems
3. Negative 5. Nightmar
8. Unexplai 4. Unforgivi 5. Fewer
Attitude es
ned ng contact
like 6. Irritability
Choking 5. Loss of with
believing 7. Easily
9. Feeling Direction friends
nothing is Discoura
Fatigue 6. Lack of
wrong, ged
10. Constipat intimacy.
being 8. Little Joy
ion
overly
11. Chills
suspiciou
12. Restless
s
ness
13. Back
Pain
14. Memory
Loss
 15. Muscle
Tension
16. Difficulty
Sleeping
17. Blurred
Vision
18. Diarrhea
19. Chest
Pain
20. Breathin
g
Difficultie
s
21. Headach
es
22. Prematur
e Aging
23. Nausea
24. Overeati
ng
Further, work-related stress also has its consequences. These increase the cost incurred
by the organizations.

1. Burnout. This is the feeling of total exhaustion of an individual in the workplace. This has
been crucial to any organization. Burnout reflects overfatigue, disengagement at work,
and confidence loss and lack of motivation.
2. Absenteeism and turnover. Stressed individuals tend to lose enthusiasm for work. This
results in frequent absences until they have found new employment and opportunities
outside the organization.
3. Diminished productivity. Employees who are too stressed are not able to perform well
the tasks assigned to them. Quality and quantity of work are both affected, thus there is
a diminished productivity. This also affects the organizational performance.
4. Aggression. This is resulting from employee’s frustration and hostility. When aggression
occurs, employees think that they are on the dead end and have nothing to lose. Thus,
some end up doing undesirable behaviors and sabotage.

Coping with Work-Related Stress

There are mechanisms and strategies for individuals to cope with work-related stress.
Stress management programs will help achieve a pleasant work environment. There are 4 As in
dealing with stress.
1. Avoid the stressor. Be aware of what causes you stress. As much as possible, avoid the
situation. Go with people who make you feel comfortable. Believe that everything has its
own time. Do not rush trying to do everything.
2. Alter the stressor. If one cannot really avoid the stressor, alter it. Find ways to change
the situation. For instance, having yourself being helped by your peers is a means to
alter stress. Communicating and time management are effective ways.
 3. Adapt to the stressor. When the first 2 As are not seemingly effective, creating coping
mechanisms is a great way to manage stress.
4. Accept the stressor. There are some stressors that are inevitable. The best way to get
through stressful situations is to accept it. This way, it will become easier for the
individual to devise effective means to deal with it and reduce the likelihood of having
negative consequences.

Individual Stress Management

Exhibit 6.3
Individual Stress Management
Adapted from Hitt, Miller and Collela (2012)

It is important for an individual to have proper exercise, proper diet, relaxation

techniques and social-support networks to manage stress. Proper exercise and diet improve the
physical well being of an individual especially during overfatigue. While relaxation techniques
and social-support networks enhance the cognitive perspective and psychological wellbeing.
Further, it is worthy to note that self awareness plays a big part in the mindset of an
individual in dealing with stressors. When individuals are aware of their capabilities and think
that they can manage situations, they are less likely to experience stress.

Organizational Stress Management

It is the responsibility of the management to ensure that the wellbeing of their employees
are in good condition. They must be aware of its negative effects that could be detrimental to
the organization. Creating stress management programs in the organizational level could
minimize additional costs that companies may incur due to stressful situations that their
employees are facing.
Job redesign is important in managing stress of employees. It was identified earlier that
work overload, role ambiguity and role conflict are considered work related stressors. Thus,
enriching or enlarging jobs may be helpful. Job rotation may also alleviate stress. Human
resource management of organizations may likewise include counseling programs for their
employees. Coaching and mentoring can promote self-awareness of employees and can
develop professional relationships as well. These strategies when implemented can address
stressful situations of individuals and groups in the organization.
The Concept of Work-Life Balance
Work-Life Balance has become a new concept in organizational behavior. Many
research have shown that this plays a role in maintaining a healthy working environment. Work
life balance can be defined as the harmony between an individual's work and personal life. In
the 21st century, where job demands are increasing, it is important that the management
consider paying attention to this concern. The challenge is due to the increased usage of
technology in every organization. This removes the limitation of office in physical existence. This
has led to telecommuting, virtual offices and teams, and others. The boundary now between
professional and personal life seems to be warranting. Poor work life balance often leads to job
stress. When a person is not able to balance the requirements
A person whose job demands are too high will find it difficult to comply with it when his/her
responsibility at home is also requiring attention and time. This is commonly being experienced
by working mothers. For instance, a mother who is about to pick up her son in school at 4pm
was asked by her manager to do overtime for urgent tasks is stressful for her. This is the key
issue of work life balance. The employees start feeling stressed when they are not able to
create harmonious work-life integration. Stressed employees tend to be less productive and are
prone to making errors.

Importance of work-life Balance

The company’s efforts towards employee’s work life balance assessment can help in
effective and efficient resource allocation that can improve organization’s productivity and
workforce stability. This will lead to:
1. Motivated employees in the workplace
2. Desirable attitudes and behavior of employees towards their jobs
3. Improved organizational effectiveness.

Quality of Work Life

Related to work life balance is an emerging concept coined as quality of work life (QWL).
This concern has been globally demonstrated by the United Nations as sponsored by the
International Labor Organizations (ILO) so as to facilitate creation of better and meaningful job
opportunities. The term quality of work life (QWL) is too broad that it has several connotations
and interpretations to different people, thus, many researchers were led to studying its
dimension. For some, quality of work life may mean the balance between their time for their job
and for their social life. To others, for instance, a typical factory worker, quality of work life
means having equal pay for equal work or a fair day’s pay coupled with a safe working
environment.
Quality of Work Life is a concept in organizational behavior that deals with the overall
focus on the employee as an individual rather than just the work being done by him/her.
Employee dissatisfaction may be brought about when they experience low quality of work life.

Components of QWL
Mahmoudi (2015) identified six components of quality of work life.
1. Fair and adequate payment. This refers to remuneration being received by an employee
while rendering his/her services to the organization.
2. Safe and healthy workplace. This is characterized by a work environment free from any
form of hazards and strain to ensure good health and psychological conditions of
employees.
 3. Provide opportunities for persistent growth and security. This refers to the availability of
career advancement and security of tenure in the organization.
4. Legalism in the organization of work. This is the constitutionalism in the workplace
through freedom and equity.
5. Social dependence of work life. This is related to ethical behaviors and fair treatment to
employees.
6. Total living space. This is the balance of an employee's personal and professional life.

Importance of Quality of Work Life

Several organizations recognize that paying attention to the needs of employees can
benefit them in various means. The following are identified as the advantage of increased
employee quality of work life.
1. Improved public relations and credibility.
2. Increased productivity,
3. Higher retention attraction and retention rates
4. Reduced absenteeism
5. Improved employee quality of working lives
6. Increased job satisfaction and involvement

Stress and Work-life Balance during Covid 19 Pandemic

COVID 19 Pandemic has brought about major changes in the organizational functioning.
This includes work arrangements of employees. Since community quarantine has limited the
movement of people, including workers, work from home, flexible work hours, compressed work
work week and other alternative work arrangements have been adapted. This has created
arguments as the regular working hours and job demands have changed. Meetings can be
conducted at night, office set ups have been far different from what employees were used to
and more activities are done sitting all day long. How can one adapt to this new normal?

Eight ways to manage stress was adapted from fond.co

(​https://www.fond.co/blog/manage-stress-during-covid-19/​).
1. Move Every Day. Cabin fever is one of the illnesses that people may experience when
being cooped at home for quite a long period. But doing movements can minimize this.
Engage in physical activities and set flexible work hours. Regular physical movement is
good in one’s health. Few-minute workout can likewise be of help.
2. Practice Mindfulness. Meditate. Reflect on your feelings, thoughts and sensations.
3. Eat Well. Stress-eating does not mean eating well. Focus on nutrition rich food and
maintain a balanced diet. Others may prefer eating their”comfort and happy” food for
emotional nourishment. Eat accordingly.
4. Get Enough Sleep. Regain energy by getting enough hours of sleep. Care to create a
healthy sleep routine.
5. Fall Back on Old Habits. Keep up the simple daily habits like following your typical
routinary activities, e.g. getting up early, getting dressed for work, to feel some sense of
normalcy.
6. Create Meaningful New Habits. In the new normal. Embrace the new normal and create
new habits and routines. Consider this an opportunity to learn new things.
7. Connect With Others. Social distancing is not isolating yourself from the world, but rather
only to practice physical distancing. Keep in touch with your social environment without
leaving home.
 8. Reframe Negative Thoughts. Make a positive mindset and right attitude

After all, KEEP GOING...

End of Chapter Test

Review Questions.
1. In any organization, managing stress is very important. Young as you are, you already
face some stressful situations which you often think are not manageable. In not more
than 10 sentences, write down some common signs of stress you are experiencing and
things you do to cope with stress. Be specific with examples.

Activity.
Interview any of your household members who are employed. The student shall
present their data through a short-film, photo story or powerpoint presentation in Google
Classroom. The output should be able to answer the following questions:
1. Do today’s employee working hours reflect the slogan : ​“Eight hours labour, eight
hours recreation, eight hours rest”?
2. What does the quality work of life of today’s workers mean?
3. What stress management programs can you suggest in the attempt to improve their
work-life balance?

References
Books
Black, S., Gardner, D. G., Pierce, J. L., & Steers, R. (2019). ​Organizational Behavior​.
OpenStax Rice University.

Hitt, M. A., Miller, C. C., Colella, A., & Triana, M. (2017). ​Organizational Behavior (5th
ed.). Wiley Global Education

Hitt, M. A., Miller, C. C., and Colella, A. (2012). ​Organizational Behavior (3rd ed.). Wiley
Global Education

Luthans, F. (2010). ​Organizational Behavior​(12th ed.). McGraw-Hill Education.

Mullins, L. J. (2010). ​Management and Organisational Behaviour (9th ed.). Pearson

Higher Ed.

Electronic References
Retrieved from
https://www.civicsandcitizenship.edu.au/cce/fq2_activity_2d_work-life_balance_in_the_21st,296
68.html​, August 10, 2020
Retrieved from ​https://www.fond.co/blog/manage-stress-during-covid-19/​, Aug 6, 2020

Retrieved from ​https://www.hrzone.com/hr-glossary/what-is-work-life-balance​, Aug 6, 2020

 Module 7
LEADERSHIP, POSITIVE ORGANIZATIONAL BEHAVIOR AND
PSYCHOLOGICAL CAPITAL

Module Introduction
The kind of leadership that organization has is essential in managing the actions and
behaviors of individuals and groups. By understanding the concept and theories and leadership,
the top management will be able to identify what specific leadership style is suited to their
employees. There are so many different leadership styles and it doesn’t mean there is a single
best recipe to success in leadership. There is only the best fit. Thus, it is the responsibility of the
higher ups to recognize the nature of its working organizations and people within to arrive with
one appropriate form of leadership.
This module focuses on the nature, processes and theories of leadership. It will also
tackle the emerging concepts on positive organizational behavior and psychological capital and
how can this be applied to the organizational setting.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Recognize good and poor leadership and the varieties of leadership;
2. Discuss the concepts and application of self-efficacy, optimism, hope and resiliency as
best POB criteria-meeting psychological resources and when in combination represent
psychological capital; and
3. Present subjective well-being and emotional intelligence as positive constructs

Leadership, Its Related Theories, and Concepts

“Leadership is not defined by the exercise of power but by the capacity to increase the sense of
power among those led,” ​-Mary Parker Follet

Leadership is often defined as a process wherein an individual influences and

encourages others to achieve the organizational goals objectives and manage the organization
so that it becomes more coherent and cohesive to work.
Leadership is all about making and helping people to reach their maximum potential and
motivate them to reach a common goal. A good leader is one who is proactive and looks out
after others before himself. An effective leader should possess the following qualities:
1. Commitment towards the tasks and duties allocated
2. Ability to communicate well, taking the ownership of the tasks;
3. Honesty and Integrity,
4. Ability to take the right decisions and that too at the right time;
5. Creativity and Innovation and
6. Ability to inspire others.

Trait Approaches to Leadership

The Trait Theory: Ralph M. Stogdill proposed the trait theory of leadership in the late 1940s; he
explained that an individual must possess the key personality traits and characteristics to be an
effective leader and these traits are inherent by birth.The earliest approach to the study of
leadership sought to identify a set of traits that distinguishes leaders from nonleaders. Different
researchers and studies focused on personality characteristics and physical and psychological
attributes of people who are viewed as leaders.
Some of the core leadership traits based on this theory can be categorised as follows:
1. Physiological traits: Height, weight, structure, colour, appearance and so forth.
2. Socioeconomic characteristics: Gender, religion, marital status, age, occupation, literacy
and earnings.
3. Personality traits: Extraversion, self-confidence, patience, agreeable, reliable, honesty
and leadership motivation.
4. Intellectual traits: Decisiveness, intelligence, judgemental ability, knowledge and
emotional attribute.
5. Task-related traits: Attainment drive, dedication, initiative, determination and business
expertise.
6. Social characteristics: Socially active, cordiality and cooperation.
7. Some of the other traits being charisma, adaptiveness, creativity, uniqueness.

The development of Big Five Personality framework which was developed in recent
years has been considered an advancement in identifying traits that predict leadership. One of
the examples of the trait approach is charismatic leadership. The traits that show relatively
strong relations with leadership are as follows:

Intelligence
General mental ability, which psychologists refer to as “g” and which is often called IQ in
everyday language, has been related to a person’s emerging as a leader within a group.
Specifically, people who have high mental abilities are more likely to be viewed as leaders in
their environment. In addition to having high IQ, effective leaders tend to have high emotional
intelligence (EQ). People with high EQ demonstrate a high level of self-awareness, motivation,
empathy, and social skills. The psychologist who coined the term emotional intelligence, Daniel
Goleman, believes that IQ is a threshold quality: it matters for entry- to high-level management
jobs, but once you get there, it no longer helps leaders because most leaders already have high
IQ. According to Goleman, what differentiates effective leaders from ineffective ones becomes
their ability to control their own emotions and understand other people’s emotions, their internal
motivation, and their social skills. Many observers believe that Carly Fiorina, the ousted CEO of
HP, demonstrated high levels of intelligence but low levels of empathy for the people around
her, which led to an overreliance on numbers while ignoring the human cost of her decisions.

Psychologists have proposed various systems for categorizing the characteristics that make up
an individual’s unique personality; one of the most widely accepted is the Big Five model, which
rates an individual according to openness to experience, conscientiousness, extraversion,
agreeableness, and Neuroticism. Several of the Big Five personality traits have been related to
leadership emergence (whether someone is viewed as a leader by others) and leadership
effectiveness. Description of the five traits are as follows.

1. Openness – Openness to experience describes a person’s degree of intellectual

curiosity, creativity, and preference for novelty and variety. Some disagreement remains
about how to interpret this factor, which is sometimes called intellect.
 2. Conscientiousness – Conscientiousness is a tendency to show self-discipline, act
dutifully, and aim for achievement. Conscientiousness also refers to planning,
organization, and dependability.
3. Extraversion – Extraversion describes energy, positive emotions, assertiveness,
sociability, talkativeness, and the tendency to seek stimulation in the company of others.
4. Agreeableness – Agreeableness is the tendency to be compassionate and cooperative
towards others rather than suspicious and antagonistic.
5. Neuroticism – Neuroticism describes vulnerability to unpleasant emotions like anger,
anxiety, depression, or vulnerability. Neuroticism also refers to an individual’s level of
emotional stability and impulse control and is sometimes referred to as emotional
stability.

Self-Esteem
This is defined as the degree to which people are at peace with themselves and have an overall
positive assessment of their self-worth and capabilities seems to be relevant to whether they will
be viewed as a leader. Leaders with high self-esteem support their subordinates more, and
when punishment needs to be administered, they punish more effectively. It is possible that
those with high self-esteem have greater levels of self-confidence and this affects their image in
the eyes of their followers. Self-esteem may also explain the relationship between some
physical attributes and emerging as a leader.

Integrity
Leaders whose integrity is questioned lose their trustworthiness, and they hurt their company’s
business along the way. For example, when it was revealed that Whole Foods CEO John
Mackey was using a pseudonym to make negative comments online about the company’s rival
Wild Oats, his actions were heavily criticized, his leadership was questioned, and the company’s
reputation was affected.

Behavioral Approaches to Leadership

1. Explain the behaviors that are associated with leadership.

2. Identify the three alternative decision-making styles leaders use and the conditions
under which they are more effective.
3. Discuss the limitations of behavioral approaches to leadership.
When the trait researchers became disillusioned in 1940s, their attention turned to studying
leader behaviors. What did effective leaders actually do? Which behaviors helped them to be
perceived as leaders? Which behaviors increased their success?

Leader Behaviors
Researchers at Ohio State University and University of Michigan used many different
techniques such as observing and surveying leaders in order to understand behavior which led
to the discovery of two broad categories of behaviors namely task-oriented
(initiating-structure)and people-oriented behaviors (consideration).
1. Task-oriented leader behaviors involve structuring the roles of subordinates, providing
them with instructions, and behaving in ways that will increase the performance of the
group.
 2. People-oriented leader behaviors include showing concern for employee feelings and
treating employees with respect.

Contemporary Approaches to Leadership

1. Learn about the difference between transformational and transactional leaders.

2. Find out about charismatic leadership and how it relates to leader performance.
3. Describe how high-quality leader-subordinate relationships develop.
4. Define servant leadership and evaluate its potential for leadership effectiveness.
5. Define authentic leadership and evaluate its potential for leadership effectiveness.
What leadership theories make the greatest contributions to today’s business environment? In
this section, we will review the most recent developments in the field of leadership.

Transformational and Transactional Leadership

The theory distinguishes between transformational and transactional leaders. Employees
working for transformational leaders do not focus on themselves but rather the company’s
well-being comes first. They align their goals and objectives with that of their leader and their
organization.

Transactional leadership, also known as managerial leadership, focuses on the role of

supervision, organization, and group performance.This leadership style use rewards and
punishment contingent on the performance of their subordinates The leader views the
relationship between managers and subordinates as an exchange – you give me something for
something in return. Transactional leadership gives importance to rules, procedures, policies
and standards.

Leader-Member Exchange Theory

Leader-member exchange (LMX) theory proposes that the type of relationship leaders have with
their followers (members of the organization) is the key to understanding how leaders influence
employees. There are different types of relationships between leaders and members. If the form
of relationship is trust-based then there is high quality LMX where the leader and member help
each other anytime there is a need and are both willing to go beyond their job descriptions to
assist in each other’s success. On the opposite, when there is low quality LMX relationship,
there is no involvement between leader and members but rather they just do what is required
and they don’t feel any obligation or loyalty between them

Servant Leadership
Servant leadership approach defines the leader’s role as serving the needs of others. According
to this approach, the primary mission of the leader is to develop employees and help them
reach their goals. Servant leaders put their employees first, understand their personal needs
and desires, empower them, and help them develop in their careers.Servant leaders feel an
obligation to their employees, customers, and the external community. Employee happiness is
seen as an end in itself, and servant leaders sometimes sacrifice their own well-being to help
employees succeed. In addition to a clear focus on having a moral compass, servant leaders
are also interested in serving the community. In other words, their efforts to help others are not
restricted to company insiders, and they are genuinely concerned about the broader community

Authentic Leadership
Leaders have to be a lot of things to a lot of people. They operate within different structures,
work with different types of people, and they have to be adaptable. At times, it may seem that a
leader’s smartest strategy would be to act as a social chameleon, changing his or her style
whenever doing so seems advantageous. But this would lose sight of the fact that effective
leaders have to stay true to themselves. The authentic leadership approach embraces this
value: its key advice is “be yourself.” Think about it: We all have different backgrounds, different
life experiences, and different role models. These trigger events over the course of our lifetime
that shape our values, preferences, and priorities. Instead of trying to fit into societal
expectations about what a leader should be like, act like, or look like, authentic leaders derive
their strength from their own past experiences.

Contingency Approaches to Leadership

1. Learn about the major situational conditions that determine the effectiveness of different
leadership styles.
2. Identify the conditions under which highly task-oriented and highly people-oriented
leaders can be successful based on Fiedler’s contingency theory.
3. Discuss the main premises of the Path-Goal theory of leadership.
4. Describe a method by which leaders can decide how democratic or authoritarian their
decision making should be.
After the disappointing results of trait and behavioral approaches, several scholars developed
leadership theories that specifically incorporated the role of the environment. Researchers
started following a contingency approach to leadership—rather than trying to identify traits or
behaviors that would be effective under all conditions, the attention moved toward specifying the
situations under which different styles would be effective.

Fiedler’s Contingency Theory

The earliest and one of the most influential contingency theories was developed by Frederick
Fiedler. According to the theory, a leader’s style is measured by a scale called Least Preferred
Coworker (LPC) scale. According to Fiedler’s theory, different people can be effective in
different situations. The LPC score is akin to a personality trait and is not likely to change.
Instead, placing the right people in the right situation or changing the situation is important to
increase a leader’s effectiveness. The theory predicts that in “favorable” and “unfavorable”
situations, a low LPC leader—one who has feelings of dislike for coworkers who are difficult to
work with—would be successful. When situational favorableness is medium, a high LPC
leader—one who is able to personally like coworkers who are difficult to work with—is more
likely to succeed.

Situational Leadership
Another contingency approach to leadership is Kenneth Blanchard and Paul Hersey’s
Situational Leadership Theory (SLT) which argues that leaders must use different leadership
styles depending on their followers’ development level. According to this model, employee
readiness (defined as a combination of their competence and commitment levels) is the key
factor determining the proper leadership style. The model summarizes the level of directive and
supportive behaviors that leaders may exhibit. The model argues that to be effective, leaders
must use the right style of behaviors at the right time in each employee’s competence and
commitment level. The table below presents the followers readiness level and recommended
leadership style.
 Competence
Competence Competence Competence
(Moderate to
Follower (Low) (Low) (High)
High)
Readiness
Level
Commitment Commitment Commitment Commitment
(High) (Low) (Variable) (High)

Recommended Directing Coaching Supporting Delegating

Leader Style Behavior Behavior Behavior Behavior
Situational Leadership Theory

Path-Goal Theory of Leadership

Robert House’s path-goal theory of leadership is based on the expectancy theory of motivation.
Expectancy theory of motivation suggests that employees are motivated when they believe—or
expect—that (1) their effort will lead to high performance, (2) their high performance will be
rewarded, and (3) the rewards they will receive are valuable to them. According to the path-goal
theory of leadership, the leader’s main job is to make sure that all three of these conditions
exist. Thus, leaders will create satisfied and high-performing employees by making sure that
employee effort leads to performance, and their performance is rewarded. The leader removes
roadblocks along the way and creates an environment that subordinates find motivational.
The theory also makes specific predictions about what type of leader behavior will be effective
under which circumstances. The theory identifies four leadership styles. Each of these styles
can be effective, depending on the characteristics of employees (such as their ability level,
preferences, locus of control, achievement motivation) and characteristics of the work
environment (such as the level of role ambiguity, the degree of stress present in the
environment, the degree to which the tasks are unpleasant).

Four Leadership Styles

Path-goal theory of leadership identifies four styles leaders may adopt.

1. Directive leaders provide specific directions to their employees. They lead employees by
clarifying role expectations, setting schedules, and making sure that employees know what to
do on a given workday. The theory predicts that the directive style will work well when
employees are experiencing role ambiguity on the job. If people are unclear about how to go
about doing their jobs, giving them specific directions will motivate them. However, if employees
already have role clarity, and if they are performing boring, routine, and highly structured jobs,
giving them direction does not help. In fact, it may hurt them by creating an even more
restricting atmosphere. Directive leadership is also thought to be less effective when employees
have high levels of ability. When managing professional employees with high levels of expertise
and job-specific knowledge, telling them what to do may create a low empowerment
environment, which impairs motivation.

2. Supportive leaders provide emotional support to employees. They treat employees well, care
about them on a personal level, and are encouraging. Supportive leadership is predicted to be
effective when employees are under a lot of stress or when they are performing boring and
repetitive jobs. When employees know exactly how to perform their jobs but their jobs are
unpleasant, supportive leadership may also be effective.

3. Participative leaders make sure that employees are involved in making important 3.
decisions. Participative leadership may be more effective when employees have high levels of
ability and when the decisions to be made are personally relevant to them. For employees who
have a high internal locus of control, or the belief that they can control their own destinies,
participative leadership gives employees a way of indirectly controlling organizational decisions,
which will be appreciated.

4. Achievement-oriented leaders set goals for employees and encourage them to reach their
goals. Their style challenges employees and focuses their attention on work-related goals. This
style is likely to be effective when employees have both high levels of ability and high levels of
achievement motivation.

The path-goal theory of leadership has received partial but encouraging levels of support from
researchers. Because the theory is highly complicated, it has not been fully and adequately
tested. The theory’s biggest contribution may be that it highlights the importance of a leader’s
ability to change styles, depending on the circumstances. Unlike Fiedler’s contingency theory, in
which the leader’s style is assumed to be fixed and only the environment can be changed,
House’s path-goal theory underlines the importance of varying one’s style, depending on the
situation.

Vroom and Yetton’s Normative Decision Model

The Vroom Yetton Jago Decision Model is a model for decision-making that’s based on
situational leadership. The model can be used by everyone, irrespective of rank or position and
helps to choose the right management style in various decision situations. In some business
situations, it’s better that the leader takes all the decisions, whereas in other situations it’s better
if the group has a say.

The Vroom Yetton Jago Decision Model helps to choose the right style by having the user
answer a series of questions with either yes or no. This series of questions is presented in the
form of a decision matrix. After answering the questions, the user immediately sees what
method best suits the situation concerned. According to the model, three specific factors have
direct influence on the method for decision-making: quality, collaboration and time. The series of
questions creates clarity regarding the influence of these factors in the decision situation.
Subsequently, the model displays how the leader should make the decision: independently,
together with the group or after obtaining advice. There are five different situations in total in
which a different approach is desired and effective.

The Vroom Yetton Jago Decision Model was originally developed by Victor Vroom and Phillip
Yetton in 1973, and it was expanded 15 years later by supplementations from Arthur Jago.

Three Important Factors in Decision-making

When a decision must be made, the desired management style and the degree of participation
of team members are influenced by three important factors. The Vroom Yetton Jago Decision
Model therefore demands proper thought before answering the series of questions. By
considering the three specific factors, better insight is formed about the decision to be made.
The following three factors are important in each decision situation:

The Quality of the Decision

The quality of the decision to be taken is about how much impact the decision will have and how
important it is to find the right solution. The higher the decision’s quality, the more people must
be involved in the decision process.

Involvement and Collaboration

Involvement and collaboration concerns the question of how important it is that everyone agrees
to the decision in a team. Depending on how important this is, the degree of participation must
be raised or lowered.

Time Constraints

How much time is there to make a decision? If there’s little time, a fast autocratic approach
might be more desirable, as there’s no time to lose in certain situations. If there’s a lot of time,
there are more options to involve more team players in the decision process.

The way in which these factors influence the situation helps the user to determine what the best
leadership style and decision method are.

Five Decision-making Styles

The Vroom Yetton Jago Decision Model distinguishes between three leadership styles and five
different decision processes:

Autocratic I (A1)

In this decision process, the leader uses the available information to make a decision
independently. The opinion of team members or external parties is not consulted in this case.
Although the decision itself is not dependent upon the team members, and their opinion doesn’t
matter, it is important that the made decision is communicated openly and clearly towards the
team.

Autocratic II (A2)

Here too, the leader independently makes the decision, but the difference with autocratic style 1
is that the leader has a bit more time and gathers information from team members or external
parties. The team members don’t know why information is requested from them and don’t think
about the situation, alternative or eventual choice.

Consultative I (C1)

The leader adopts a consulting role and actively takes the lead to have team members
individually give their opinion about the situation, the problem and the decision to be made.
Here, the team’s involvement is higher than in the autocratic decision-making style. However,
the decision is still made by the leader; he can choose to disregard the team’s opinion and input
when these haven’t changed his outlook on the situation.

Consultative II (C2)

Where the leader requests the individual opinions from the team members in the first consulting
style, he brings the team together in a group meeting for a discussion in the second. Ideas and
suggestions are asked for in this meeting. Here, the leader shares the problem and the situation
with the group, but eventually, the leader is still the one to individually make the decision.

Group II (G2)

The group as a whole makes the decision. The leader presents the situation and the problem to
the group, identifies alternatives and makes a consensus decision. The leader purely plays the
role of facilitator and accepts the decision of the group without considering his own opinion or
vision.

In order to determine which of these styles and processes is most suitable, taking into account
the three factors, the decision tree from the Vroom-Yetton-Jago Decision Model must be
completed.

​The Trait Theory

In the late 1940, Ralph M. Stogdill proposed the trait theory of leadership. He explained
that an individual must possess key personality traits and characteristics to be an effective
leader and these traits are inherent by birth.

Some of the core leadership traits based on this theory can be categorised as follows:

● Physiological traits​: Height, weight, structure, colour, appearance and so forth.

● Socioeconomic characteristics:​ Gender, religion, marital status, age, occupation,
literacy and earnings.
● Personality traits:​ Extraversion, self-confidence, patience, agreeable, reliable,
honesty and leadership motivation.
● Intellectual traits:​ Decisiveness, intelligence, judgemental ability, knowledge and
emotional attribute.
● Task-related traits​: Attainment drive, dedication, initiative, determination and
business expertise.
● Social characteristics​: Socially active, cordiality and cooperation.

Some of the other traits being charisma, adaptiveness, creativity, uniqueness.

This theory was criticised since it neglected the environmental factors which may not
always remain the same. The list of traits is quite vast and keeps on changing from time to time.
It was unable to explain failures despite possessing the certain traits specified in the theory.
Moreover, the identified traits can be acquired through learning and training.
Behavioural Theory

The behavioural theory of leadership evolved in the 1950s. After understanding that
personal traits are essential for effective leadership, the researchers were now eager to know
how leaders behave to become effective leaders To study the behaviour of leaders, two major
research programs were implemented by two different universities namely, the Ohio State
Leadership Studies and the University of Michigan Studies.

In the Ohio State University, a group of researchers prepared a questionnaire to be

surveyed in military and industrial setups, to determine the perception of the subordinates for
the actual behaviour of their leaders. Their findings identified two major categories of leader
behaviour:
● Consideration: The friendly leaders are attentive and supportive to the concerns of their
subordinates and create an excellent relationship with them. This was termed as
‘people-oriented behavior’.
● Initiating structure: The leaders are mostly concerned with achieving goals and following
schedule and work structure. For such leaders, subordinates are just mere resources
that must be utilized through performance. This was termed as ‘task-oriented behavior’.

Meanwhile in the University of Michigan, researchers conducted a study based on how

the leader’s behaviour is related to group performance. Researchers made a comparison
between effective and ineffective managers. They found that the two can be discriminated on
the basis of their behaviour, i.e. job-centric behaviour and organisational-member centric
behavior. The results of their study identified four additional important behaviors for effective
leadership, namely:
● Support
● Goal emphasis
● Work facilitation
● Interaction facilitation

Transformational Leadership Theory

The transformational theory states that to be an effective leader one must be able to
transform or change the perceptions, behavior and expectations of their followers, and guide
them towards a common goal to accomplish the leader’s vision. These leaders have a
charismatic and influential personality. Listed below are the key factors considered in
Transformational Leadership:

● Psychological transformation: Bring about a change in the perception and mindset of the
follower.
● Influential: Creates a strong impact on the followers.
● Motivational: Generates positive energy within followers.
● Inspirational: Encourages them to achieve something.
 ● Individual impact: Creates a powerful effect on the behaviour and perception of the
followers.

From the discussions above, we can conclude that a leader needs to consider various
leadership theories based on the situation and circumstances.

Leadership Styles

Leadership style is the relatively consistent manner and approach of providing direction,
implementing plans, and motivating people. As seen by the employees, it includes the total
pattern of explicit and implicit actions performed by their leader (Newstrom, Davis, 1993).

The first major study of leadership styles was performed in 1939 by Kurt Lewin who led a
group of researchers to identify different styles of leadership (Lewin, Lippit, White, 1939). This
early study has remained quite influential as it established the three major leadership styles:
(U.S. Army, 1973):

○ Authoritarian or Autocratic - the leader tells his or her employees the tasks to be done
and the manner of doing it, without getting their advice or feedback; though this style
may sound quite “bossy”, such is suitable during situations where the leader have all
relevant information to solve the problem and employees are well-motivated, but there is
only limited time.

○ Participative or Democratic - the leader allows one or more employees to join in the
decision making process, but the leader normally maintains the authority to make final
decisions; this leadership style promotes empowerment among diversified members

○ Delegative or Laissez-faire (free-rein) - the leader allows the employees to make the
decisions, however, the leader is still responsible for the decisions that are made; this is
an ideal style to be used if the leader have great trust and confidence in his people

Although good leaders use all three styles, with one of them normally dominant, bad
leaders tend to stick with one style, normally ​autocratic.​

DEFINITION OF POSITIVE ORGANIZATIONAL BEHAVIOR

Positive Organizational Behavior (POB) is defined as "the study and application of

positively oriented human resource strengths and psychological capacities that can be
measured, developed, and effectively managed for performance improvement in today’s
workplace" (Luthans, 2010) POB is said to be the application of positive psychology to the
workplace. Here, the optimistic qualities of the members in the organization are identified and
assessed so that the organization may help nurture these qualities and turn it as the member’s
strengths. In turn, the organization may also use such as part of their competencies.

POB helps improve the functionality and performance of individuals in the organization.
It also helps the organization to create a meaningful and harmonious workplace as it focuses
on strengths and on building the best through analyzing and achieving excellence. In doing so,
POB uses four criteria-meeting positive psychological resources, namely: self-efficacy,
optimism, hope and resiliency.

Self-Efficacy​. Self-efficacy is an individual's confidence in their ability to attain a certain goal in

a specific situation.

Optimism. ​It is a positive mental attitude that reflects one’s belief that the outcome will be
favorable.

Hope. ​It is a positive motivational state where successful feelings of agency (or goal oriented
determination) and pathways (or proactively planning to achieve set goals) interact.

Resiliency. ​This is a​ positive way of coping with adversity or distress. In the organizational
aspect, it is defined as an ability to recover from stress, conflict, failure, change or increase in
responsibility​.

DEFINITION, COMPONENTS AND EFFECTS OF PSYCHOLOGICAL CAPITAL

Psychological Capital is defined as “an individual’s positive psychological state of

development that is characterized by: (1) having confidence (self-efficacy) to take on and put in
the necessary effort to succeed at challenging tasks; (2) making a positive attribution (optimism)
about succeeding now and in the future; (3) persevering toward goals and, when necessary,
redirecting paths to goals (hope) in order to succeed; and (4) when beset by problems and
adversity, sustaining and bouncing back and even beyond (resiliency) to attain success.” (F.
Luthans, 2010). The concept of PsyCap gradually became of importance with findings in the
area of neuroplasticity - human brain’s ability to reorganize itself. Since our brain is flexible, it
has been suggested that PsyCap can be established, managed, assessed, and strengthened.

_____________________________________________________________________
“Psycap 101: Your Guide to Increasing Psychological Capital”
Online article published on April 14, 2020 by Birgit Ohlin, MA, BBA
Source: ​https://positivepsychology.com/psychological-capital-psycap/

Originally developed in
an organizational context, the
concept of Psychological Capital
with its four pillars of Hope,
Efficacy, Resilience, and
Optimism (HERO) has been
linked to job- as well as life
satisfaction.
While every component
has its own characteristics and
interventions, the concept of
PsyCap is greater than the sum
of its parts.
Based on appreciation
and positive emotions, PsyCap
is a core construct for well-being
and thriving. This article outlines
the four elements of PsyCap,
looks at the value of the concept
as a whole and aims to inspire
its use in leadership and
coaching.
Investing in People – A Source
of Competitive Advantage
The concept of
Psychological Capital (PsyCap)
was originally designed for
organizations. Pioneer Fred
Luthans suggested that growth
in organizations needs to focus
on psychological rather than
educational development. He
argued that human resources
can serve as a competitive
advantage as they are more
inimitable by competitors than
physical, structural and financial
resources.
Luthans argued that
employees possess two types of
knowledge: explicit and tacit
knowledge. Explicit knowledge
includes skills, abilities, and
competencies derived from
education and experience.
Tacit knowledge, on the
other hand, is built over time
through socialization into the
organization. He claimed that
tacit knowledge offers a satisfaction
long-term competitive advantage
as it is unique, cumulative,
interconnected and
non-transferable to competitors.
Based on this idea,
Luthans urged companies to
invest in human capital
management including building
tacit knowledge rather than
hiring a skilled temporary
workforce (Fred Luthans &
Youssef, 2004). Back then, the
idea of investing in people for
competitive advantage was
considered ground-breaking.
A Concept for All Life
Domains
Under the umbrella of
positive organizational behavior
(POB), the “study and
application of positively oriented
human resource strengths and
psychological capacities”,
Luthans developed the concept
of Psychological Capital
(PsyCap) as a source of
competitive advantage.
In line with this idea,
many studies have since
confirmed that high levels of
PsyCap are positively related to
employee performance and job
satisfaction, especially in the
services industry (Abbas, Raja,
Darr, & Bouckenooghe, 2012;
Fred Luthans, Avolio, Avey, &
Norman, 2007; Fred Luthans &
Youssef, 2007; Youssef &
Luthans, 2007).
What is more,
employees who strive at work
can be assumed to generally
have a more fulfilling life due to
the strong relationship between
job and life satisfaction (Judge &
Watanabe, 1993). Accordingly,
PsyCap has been linked to
outcomes of general importance
for individuals.
High levels of PsyCap
have been found to positively
influence well-being, health
outcomes such as lower BMI
and cholesterol levels and
with one’s
relationships (Lorenz, Beer,
Pütz, & Heinitz, 2016). Using the
concept of PsyCap, leaders and
coaches can:
“leverage to tap into still largely
uncharted territories of human
strengths, thriving, and
excellence” (Fred Luthans &
Youssef-Morgan, 2017).
Definition and Measurement of
Psychological Capital
(PsyCap)
Psychological Capital is defined
as “an individual’s positive
psychological state of
development” (Fred Luthans, et
al., 2007) which is characterized
by having high levels of HERO;
the four elements of Hope,
(Self-)Efficacy, Resilience, and
Optimism.
The concept of PsyCap
has become even more relevant
with recent findings in the area
of neuroplasticity. Since our
brain is malleable, PsyCap can
be developed and strengthened.
Further, PsyCap can be
managed and assessed.
Several scales have
been developed to measure
PsyCap. The original scale
developed by Luthans, Youssef
and Avolio (2007) in the context
of organizations is the
Psychological Capital
Questionnaire 24 (PCQ-24). For
a more general application in all
domains of life, Lorenz et al.
(2016) developed the Compound
PsyCap Scale (CPC-12), a
twelve-item self-report scale.
Application of PsyCap in
Leadership and Coaching
As Shawn Achor (2011)
claims, we are successful when
we are happy, not the other way
around. So if we are more
hopeful, efficacious, resilient and
optimistic, we are more likely to
“weather the storm” in a dynamic
organizational or a challenging
personal environment. Hence,
the concept of Psychological
Capital is equally important for
coaches and leaders.
Here is an overview of
the four components of PsyCap
and the interventions which can
be used to further build on this
capital. It is important to keep in
mind that the level of PsyCap as
a whole has a stronger
relationship than each of the four
components individually, as will
be discussed later.
Hope
Hope and optimism are
both personality traits that have
been linked to physiological and
psychological well-being (Du,
Bernardo, & Yeung, 2015).
According to Rick Snyer et al.
(1991 p. 257),
“hopeful thought reects the
belief that one can nd pathways
to desired goals and become
motivated to use those
pathways”.
Hence, hope is a
cognitive process that motivates
to find willpower (goal-directed
determination) and waypower
(planning of ways to meet goals)
which leads to positive emotions
(the expectation of meeting
desired goals). Here is a
two-minute video on Snyder’s
hope theory:
How to Develop Hope
Enriching the following three
components have found to be
successful in developing hope:
1. Goal setting and perceived
ability (pathway thoughts)
The concept of hope is
strongly based on the belief that
individuals want to achieve
goals. Generally,
approach-oriented goals (moving
towards something) are
emphasized over
avoidance-oriented (moving
away from something) goals.
 In a work context,
ideally, goals are specific,
measurable, attainable, relevant
and time-based as well as
clearly communicated. Leaders
can support employees by
breaking down complex, difficult
goals into bite-size portions.
What is more, appreciating or
even celebrating small
milestones can be a key
motivation for employees. They
become more confident they can
reach the goals (Fred Luthans &
Youssef, 2004).
In coaching sessions,
the goals themselves may not
necessarily need to be defined
as specific tasks. Rather, goals
may lie in the desired change in
behavior or emotional state
(Lippmann, 2013). Importantly,
however, the current state, as
well as the desired state, can be
pinned on a scale of 0 – 10. To
enhance goal-setting, coachees
can be guided to develop a
mental movie of how they will
reach the desired goal
(Fischer-Epe, 2016). This
intervention strengthens the
understanding of the goal and
enhances the client’s belief that
they can reach it.
2. Motivation (agency thoughts)
Autonomy and meaning
have found to be key factors to
create intrinsic motivation with
employees. You can find more
information on motivation in the
article “Motivation and
Wellbeing”.
Although clients
generally decide for themselves
what they would like to achieve
through coaching, their goal
needs to be validated as their
own. Often, coachees confuse
their goals with what they
believe others would want them
to achieve. As a result,
coachees may lack a sense of
motivation towards a goal they
do not “own”.
Efficacy
Psychological Capital Looking at past
HOPEBandura (1997) defined success is a robust way to
self-efficacy as “people’s beliefs increase levels of self-efficacy.
about their capabilities to In a coaching or leadership
produce effects”. environment, it is often about
finding (increasing awareness)
Whether we have the and appreciating success stories
confidence to take on and put in rather than creating them.
the necessary effort to succeed
at challenging tasks determines Especially clients with a
how we feel, think and motivate high external locus of control
ourselves. tend to lend positive events to
external factors or luck (Ajzen,
The belief that we can produce 2002). Therefore, by outlining
the desired effect is a major the factors, traits, and strengths
incentive to act in the first place. which contributed to the success
The higher our efficacy we can create mastery
expectancy, the harder we will experiences which may lead to
work to achieve our goals, higher levels of self-efficacy.
leading to a higher probability of
success. 2. Copy other people (social
modeling)
There are two key ingredients to
self-efficacy: Seeing people in similar
situations overcoming obstacles
1. Outcome expectancy increases the belief that one,
(examination of what needs to too, can do it. Importantly, the
be done) models need to be perceived as
similar to oneself in order to feel
2. Efficacy expectancy a strong sense of confidence in
(examination of our own one’s capabilities.
capability to do what needs to be
done) Again, clients with low
self-esteem are likely to perceive
How to Develop Self-efficacy other people to have a greater
Bandura (1994) found skills repertoire than they
that our level of self-efficacy is themselves. These thought
affected by the following patterns need to be challenged
processes: in order for social modeling to be
successful.
● Cognitive (thoughts
shape reality) 3. Create situations for success
● Motivational (expected (social persuasion)
outcomes based on our `
beliefs shape our While verbal
motivation) persuasion can be a great
● Affective (perceived source of confidence, it can be
coping self-efficacy difficult to overcome self-doubts.
regulates avoidance As leaders, in addition to verbal
behavior) persuasion, we can structure
● Selection (we only situations for employees in ways
expose ourselves to that bring success and in turn
situations we believe avoid placing people in
we can master) situations prematurely where
they are likely to fail.
Here are four ways to strengthen
efficacy: 4. Reframe negative experience
(psychological responses)
1. Focus on past success
(mastery experiences) How we interpret our
physical and emotional reaction
in situations of stress and
tension affects how we judge
fatigue and our vulnerability to
stress. People with high levels of
self-efficacy are able to see a
state of affective arousal as an
energizing facilitator of
performance.
Similar to Carol
Dweck’s concept of mindset, this
shows that how we perceive
obstacles has an impact on how
we deal with them. We all
experience fatigue, resistance
and fear at times.
By discussing
psychological responses with a
client or employee they may be
able to see a state of emotional
arousal before a presentation as
a sign of anticipation and
curiosity rather than weakness
can greatly increase
performance and therefore
self-efficacy.
Resilience
Psychological Capital
ResilienceResilience is the
capacity to bounce back from
adversity and grow stronger from
overcoming negative events
(Fred Luthans, 2002; Reivich &
Shatté, 2002).
We all experience
hardship and rejection in life. But
what makes us successful and
striving is not defined by how
often we get rejected but how
often we bounce back and give it
one more go. In essence,
resilience is about learning to
fall.
How to Develop Resilience
According to Senior
Editor Diane Coutu (2002),
resilience is a combination of the
following three capacities:
1. Face Reality
In situations of despair
and hopelessness, the best way
to cope is to face reality rather
than thinking positively. If we
expect things to get better soon,
we may lose the energy and
hope when the situation does
not change quickly enough.
Therefore, in difficult situations,
facing and accepting reality may
create a better basis to endure
hardship for the time it lasts.
2. Search for Meaning
Being able to find
meaning even when facing a
fate that cannot be changed is at
the core of resilience. Having a
purpose in life is one of the five
pillars of Seligman’s in his
PERMA model of happiness
(Slavin, Schindler, Chibnall,
Fendell, & Shoss, 2012). Helping
coachees and employees to find
or create meaning strengthens
their level of resilience.
3. Improvise
The ability to deal with
a situation with whatever we
have at hand is a strong
predictor of our ability to bounce
back from adversity. It is not so
much the tools we are given, but
the ability to improvise and find
new ways to reach a goal.
Leaders are role
models for their employees and
their ability to improvise is
crucial. In a coaching session,
brainstorming different ideas to
solve a problem can strengthen
the coachee in their ability to
improvise.
Optimism
Optimism has been
defined as making a positive
attribution about succeeding now
and in the future. People with a
low external locus of control tend
to internalize positive events and
take the credit. They believe that
in order for something good to
happen, they need to work for it.
Optimists, however, believe that
good things will happen to them
in the future, no matter what.
How to Develop Optimism
Developing optimism is
all about changing focus. It can
be developed by exercises of
accepting the past, appreciating
the moment and viewing the
future as a source of opportunity.
The way we assess past events
has a major impact on how we
predict the future.
Reframing is a great
technique with coaches as well
as employees to achieve a
change in vision and it can be
used by leaders in the context of
organizations as well as in
coaching and therapy sessions.
PsyCap Greater than its Parts
The concept of
Psychological Capital is made
up of the four elements of Hope,
Efficacy, Resilience, and
Optimism, with the commonality
of appreciation and the positive
appraisal of events. Developing
one resource tends to boost the
other ones as well.
While there is a lot to
be said for every one of the
components, the concept of
Psycap is greater than the sum
of its parts. Hobfoll (2002) points
out a tendency for “enrichment
of all resources among those
who possess a solid resource
reservoir”. Hence, the four
components form a higher-order
construct which maximizes its
potential when all four areas are
taken into consideration.
Recently, there have
been new ways of including all
four elements in interventions.
Luthans & Youssef (2017) point
to gamification as a way to train
all four capacities. The use of
positive video games,
inspirational YouTube videos,
and Apps such as “Happify” is
being tested to increase
engagement and sustainability of
PsyCap development.
As we spread our
attention across all four areas of
PsyCap and use new technology
to create fun interventions we
can create real value towards
job and life satisfaction.
______________________________________________________________________

Other Positive Constructs

Although the four HERO components (hope, self-efficacy/confidence, resiliency and

optimism) have been identified to best meet the criteria for inclusion in POB and PsyCap, there
are still other positive capacities with the potential of being considered. Examples would include
constructs such as gratitude, wisdom, courage, forgiveness, and even spirituality. Yet, the two
positive constructs that have had the most attention and are especially applicable to the
workplace, would be happiness or subjective well-being (SWB) and emotional intelligence (EI).

Happiness or Subjective Well-Being (SWB)

The importance of happiness has been widely recognized both with the general public
and academic psychology. However, just like other terminologies used for POB and PsyCap,
researchers prefer to use the more precise and operationally defined term subjective well-being,
or simply SWB, instead of happiness. As Seligman and Csikszentmihalyi recently noted: “In
practice, subjective well-being is a more scientific-sounding term for what people usually mean
by happiness.” (Luthans, 2010) Though these words are interchangeable, SWB is usually
considered broader. It is defined as people’s affective (moods and emotions) and cognitive
evaluations of their lives. Under this psychological meaning, we may determine one’s happiness
or subjective well-being through understanding how they emotionally interpret and cognitively
process what happens to them. Though SWB does not directly meet the POB like the other four
(HERO), it is included here as part of POB and there have been some work-related studies in
the SWB research literature.

Role of Intelligence

Intelligence has been in the mainstream in psychology but it has a very minor role in
organizational behavior. Since some years ago, intelligence has been regarded to be fixed at
birth and it has been largely used as a predictor of school, job, and life success. However, just
as in personality, in recent years nurture versus nature debates have been renewed on
intelligence and there has been some recognition of multiple intelligences.

Emotional Intelligence

Emotional intelligence (EI) has been tackled in debates and researches way before POB
and it is more widely known in management circles. However, EI has not yet met the criteria of
POB that is why it has not yet been a major part of the latter. In particular, the major reason for
such is due to the limited research support for a valid measure of EI and its relationship with
performance outcomes. But nowaday, it has been a gradually emerging topic for researchers
and this is why it is included here. The synergy created by combining emotion and intelligence
becomes a potentially powerful positively oriented construct for understanding and application to
the study and application of organizational behavior.

Self-Assessment: Rate Your LMX

Answer the following questions using 1 = not at all, 2 = somewhat, 3 = fully agree
1. _____ I like my supervisor very much as a person.
 2. _____ My supervisor is the kind of person one would like to have as a friend.
3. _____ My supervisor is a lot of fun to work with.
4. _____ My supervisor defends my work actions to a superior, even without complete
knowledge of the issue in question.
5. _____ My supervisor would come to my defense if I were “attacked” by others.
6. _____ My supervisor would defend me to others in the organization if I made an honest
mistake.
7. _____ I do work for my supervisor that goes beyond what is specified in my job
description.
8. _____ I am willing to apply extra efforts, beyond those normally required, to further the
interests of my work group.
9. _____ I do not mind working my hardest for my supervisor.
10. _____ I am impressed with my supervisor’s knowledge of his/her job.
11. _____ I respect my supervisor’s knowledge of and competence on the job.
12. _____ I admire my supervisor’s professional skills.
Scoring:
Add your score for 1, 2, 3 = _____ This is your score on the ​Liking​factor of LMX.
A score of 3 to 4 indicates a low LMX in terms of liking. A score of 5 to 6 indicates an average
LMX in terms of liking. A score of 7+ indicates a high-quality LMX in terms of liking​.
Add your score for 4, 5, 6 = _____ This is your score on the ​Loyalty​factor of LMX.
A score of 3 to 4 indicates a low LMX in terms of loyalty. A score of 5 to 6 indicates an average
LMX in terms of loyalty. A score of 7+ indicates a high-quality LMX in terms of loyalty​.
Add your score for 7, 8, 9 = _____ This is your score on the ​Contribution​factor of LMX.
A score of 3 to 4 indicates a low LMX in terms of contribution. A score of 5 to 6 indicates an
average LMX in terms of contribution. A score of 7+ indicates a high-quality LMX in terms of
contribution​.
Add your score for 10, 11, 12 = _____ This is your score on the ​Professional Respect factor of
LMX.
A score of 3 to 4 indicates a low LMX in terms of professional respect. A score of 5 to 6
indicates an average LMX in terms of professional respect. A score of 7+ indicates a
high-quality LMX in terms of professional respect.​

End of Chapter Test

Exercise 1.
1. Think of a leader you admire. What traits does this person have? Are they consistent
with the traits discussed in this chapter? If not, why is this person effective despite the
presence of different traits?
2. Can the findings of trait approaches be used to train potential leaders? Which traits
seem easier to teach? Which are more stable?
3. How can organizations identify future leaders with a given set of traits? Which methods
would be useful for this purpose?
4. What other traits can you think of that would be relevant to leadership?

Exercise 2.
1. What are the characteristics of transformational leaders? Are transformational leaders
more effective than transactional leaders?
 2. What is charisma? What are the advantages and disadvantages of charismatic
leadership? Should organizations look for charismatic leaders when selecting
managers?
3. What are the differences (if any) between a leader having a high-quality exchange with
employees and being friends with employees?
4. What does it mean to be a servant leader? Do you know any leaders whose style
resembles servant leaders? What are the advantages of adopting such a leadership
style?
5. What does it mean to be an authentic leader? How would such a style be developed?

Exercise 3.
1. Do you believe that the least preferred coworker technique is a valid method of
measuring someone’s leadership style? Why or why not?
2. Do you believe that leaders can vary their style to demonstrate directive, supportive,
achievement-oriented and participative styles with respect to different employees? Or
does each leader tend to have a personal style that he or she regularly uses toward all
employees?
3. What do you see as the limitations of the Vroom-Yetton leadership decision-making
approach?
4. Which of the leadership theories covered in this section do you think are most useful,
and least useful, to practicing managers? Why?

Leader-Member Exchange Theory

Self-Assessment: Rate Your LMX

Answer the following questions using 1 = not at all, 2 = somewhat, 3 = fully agree
1. _____ I like my supervisor very much as a person.
2. _____ My supervisor is the kind of person one would like to have as a friend.
3. _____ My supervisor is a lot of fun to work with.
4. _____ My supervisor defends my work actions to a superior, even without complete
knowledge of the issue in question.
5. _____ My supervisor would come to my defense if I were “attacked” by others.
6. _____ My supervisor would defend me to others in the organization if I made an honest
mistake.
7. _____ I do work for my supervisor that goes beyond what is specified in my job
description.
8. _____ I am willing to apply extra efforts, beyond those normally required, to further the
interests of my work group.
9. _____ I do not mind working my hardest for my supervisor.
10. _____ I am impressed with my supervisor’s knowledge of his/her job.
11. _____ I respect my supervisor’s knowledge of and competence on the job.
12. _____ I admire my supervisor’s professional skills.

Scoring:
Add your score for 1, 2, 3 = _____ This is your score on the ​Liking​factor of LMX.
A score of 3 to 4 indicates a low LMX in terms of liking. A score of 5 to 6 indicates an average
LMX in terms of liking. A score of 7+ indicates a high-quality LMX in terms of liking​.
Add your score for 4, 5, 6 = _____ This is your score on the ​Loyalty​factor of LMX.
A score of 3 to 4 indicates a low LMX in terms of loyalty. A score of 5 to 6 indicates an average
LMX in terms of loyalty. A score of 7+ indicates a high-quality LMX in terms of loyalty​.
Add your score for 7, 8, 9 = _____ This is your score on the ​Contribution​factor of LMX.
A score of 3 to 4 indicates a low LMX in terms of contribution. A score of 5 to 6 indicates an
average LMX in terms of contribution. A score of 7+ indicates a high-quality LMX in terms of
contribution​.
Add your score for 10, 11, 12 = _____ This is your score on the ​Professional Respect factor of
LMX.
A score of 3 to 4 indicates a low LMX in terms of professional respect. A score of 5 to 6
indicates an average LMX in terms of professional respect. A score of 7+ indicates a
high-quality LMX in terms of professional respect.​

References
Books
● Abbas, M., Raja, U., Darr, W. A., & Bouckenooghe, D. (2012). Combined Effects of
Perceived Politics and Psychological Capital on Job Satisfaction, Turnover Intentions,
and Performance. ​Journal of Management, 40(7),​1813–1830.
● Achor, S. (2011). ​The Happiness Advantage: The Seven Principles of A ​ jzen, I. (2002).
Perceived Behavioural Control, Self-Efficacy, Locus of Control, and The Theory of
Planned Behaviour. Journal of Applied Social Psychology, 32(4), 665-683. Bandura, A.
(1994). Self-efficacy. ​Encyclopedia of human behavior, 4,​71-81.
● Positive Psychology That Fuel Success and Performance at Work. London, UK: Random
House.
● Bandura, A. (1997). Self-efficacy: The exercise of control. New York: W.H. Freeman.
Coutu, D. L. (2002). ​How Resilience Works.​Harvard Business Review, May, 1 – 8.
● Du, H., Bernardo, A. B. I., & Yeung, S. S. (2015). Locus-of-hope and life satisfaction:
The mediating roles of personal self-esteem and relational self-esteem. ​Personality and
Individual Differences, 83,​ 228-233.
● Fischer-Epe, M. (2016). Coaching (Vol. 5). Munich: Rowohlt. Hobfoll, S. E. (2002). Social
and Psychological Resources and Adaptation. ​Review of General Psychology, 6(4),
308-324.
● Judge, T. A., & Watanabe, S. (1993). Another Look at the Job Satisfaction-Life
Satisfaction Relationship. Journal of Applied Psychology, 78(6), 939-948. Lippmann, E.
(2013). ​Coaching (Vol. 3).​Berlin-Heidelberg: Springer-Verlag.
● Lorenz, T., Beer, C., Pütz, J., & Heinitz, K. (2016). Measuring Psychological Capital:
Construction and Validation of the Compound PsyCap Scale. ​Plos One, 11(4).
● Luthans, F. (2002). The need for and meaning of positive organizational behaviour.
Journal of Organizational Behaviour, 23,​695-706.
● Luthans, F., Avolio, B. J., Avey, J. B., & Norman, S. M. (2007). Positive Psychological
capital: measurement and relationship with performance and satisfaction. ​Personnel
Psychology, 60,​541-572.
● Luthans, F., & Youssef-Morgan, C. M. (2017). Psychological Capital: An
Evidence-Based Positive Approach. ​Annual Review of Organizational Psychology and
Organizational Behavior, 4,​339-366.
● Luthans, F., & Youssef, C. M. (2004). Human, Social and Now Positive Psychological
Capital Management: Investing in People for Competitive Advantage. ​Organizational
Dynamics, 33(2),​ 143-160.
 ● Luthans, F., & Youssef, C. M. (2007). ​Emerging Positive Organizational Behavior
Journal of Management, 6,​321-349.
● Reivich, K., & Shatté, A. (2002). ​The resilience factor: 7 essential skills for overcoming
life’s inevitable obstacles.​New York: Broadway Books.
● Slavin, S. J., Schindler, D., Chibnall, J. T., Fendell, G., & Shoss, M. (2012). PERMA: A
model for institutional leadership and culture change. ​Academic Medicine, 87(11)​, 1481.
● Snyder, C. R., Harris, C., Anderson, J. R., Holleran, S. A., Irving, L. M., Sigmon, S., . . .
Harney, P. (1991). The Will and the Ways: Development and Validation of an
Individual-Differences Measure of Hope. ​Journal of Personality and Social Psychology,
60(4),​ 570-585.
● Youssef, C. M., & Luthans, F. (2007). Positive Organizational Behaviour in the
Workplace: The Impact of Hope, Optimism and Resilience. ​Journal of Management, 33,
774-800

Electronic References
Retrieved from
http://knol.google.com/k/narayana-rao/leadership-styles-roles-activities/2utb2lsm2k7a/ 1255
https://en.wikipedia.org/wiki/Positive_psychological_capital​, August 9, 2020

Retrieved from
https://positivepsychology.com/psychological-capital-psycap/#:~:text=Morgan%2C%202017).-,D
efinition%20and%20Measurement%20of%20Psychological%20Capital%20(PsyCap),Efficacy%
2C%20Resilience%2C%20and%20Optimism.​, August 9, 2020

Retrieved from ​https://courses.lumenlearning.com/boundless-management/chapter/personality/

, August 9, 2020

Retrieved from ​https://www.toolshero.com/decision-making/vroom-yetton-jago-decision-model/​,

August 9, 2020
 Module 8
COMMUNICATION AND DECISION MAKING

Module Introduction
Communication and decision making are basic prerequisites to create effective
organizational strategies and efficient human resource management. These are essential
factors that organizations must continuously promote and improve. In this chapter, we will first
discuss the definition, functions and background of communication in the organization. This is
followed by various types of communication and the different barriers that hinder effective
communication. After understanding this information, we must also acknowledge the ethics in
communication for us to have a successful and effective way of transferring messages. The
remaining parts of this chapter are intended to discuss the important concepts of decision
making, its models, biases and how groups perform this process.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Describe the key components and importance of effective communication in
contemporary organizational life;
2. Recognize how to overcome communication barriers; and
3. Explain how moods and emotions operate in decision making

DEFINITION, FUNCTIONS AND BACKGROUND OF COMMUNICATION

According to Mirriam-Webster dictionary, “communication is a process by which
information is exchanged between individuals through a common system of symbols, signs, or
behavior”. In the organization, communication plays a vital role in its operations. It is the
organization’s responsibility to communicate well to its members and inform them the kinds of
tasks they have to perform, the goals they have to pursue and the rules they need to follow for
them to walk towards the same direction - towards success.

Functions of Organizational Communication

In an organization, communication serves four purposes namely:

1. Control. Organizations have rules and processes that employees must follow,
communicated to workers to keep order and equity operating within the system.

2. Motivation. ​Goals, feedback and reinforcement are among those items communicated to
employees to improve performance and stimulate motivation.
 3. Information​. Organizations need to keep their employees informed of their goals,
industry information, preferred processes, new developments and technology, etc., in
order that they can do their jobs correctly and efficiently.

4. Emotional Expression​. Communication is the means by which employees express

themselves, air their grievances, and interact socially.

Pillars of Communication
There are seven pillars, or principals, of business communication. If someone opens his
mouth, writes on a paper, or makes the camera “rolling”, he should strive to create a message
that satisfies these pillars. Why? Simply because the primary reason for communication is not
just to talk but to be understood. When your team members understand you, they give better
results. When your customers understand you, they purchase and promote your products
and/or services. When your manager understands you, he/she supports you in your career.
When organizations communicate well and employees understand their roles and how they fit
into the organizations mission, they succeed. (Source:
https://courses.lumenlearning.com/wmopen-businesscommunicationmgrs/chapter/effective-com
munication-in-business/​)
Communication is happening between individuals when all parties are engaged in
uncovering and understanding the meaning behind the words. It’s not something that one
person does alone. When business professionals makes their contribution to the uncovering
and understanding process, they should strive to be:
1. Clear​. Messages should be easily understood
2. Concise​. Messages should feature only necessary information
3. Objective.​ Messages should be impartial
4. Consistent​. Messages, when communicated more than once, should always be the
same
5. Complete.​ Messages should feature all the necessary information
6. Relevant.​ Messages should have meaning to its receiver
7. Understanding of Audience Knowledge.​ Messages should consider what the receiver
already knows about the situation, and not assume too much or too little

Communications Process
The communication process involves a series of actions done by individuals who want to
share information with each other. Often, this process starts when a sender has thoughts that
are put into words. Such action is the encoding of a message. The sender wants to relay a
message to someone, called the receiver. Once the message is sent out through any available
medium, the receiver will decode or process the message. The receiver can only decode the
message if he/she is listening. However, there are times when the encoded message may be
misinterpreted once decoded. The reason behind such may be from the interrupting sounds
from the surroundings of the sender and the receiver. These sounds are called noise. After
some time, the receiver may start to clarify with the sender how he/she decoded the message.
The receiver may ask the sender, “Do you mean it like this?”, or “Do I understand you
correctly?”. This is referred to as feedback. Feedback allows the sender and receiver to clarify
any misunderstandings since after the receiver sends his/her feedback, the sender may repeat
his/her message. The process of transferring and understanding the messages between sender
and receiver is called the communication feedback loop. In an organization, the communication
feedback loop occurs through various communication channels. These channels, like
newsletter, video conferencing, etc., are the medium used to transfer messages among the
organization’s employees, and they are classified into two: formal and informal channels of
communication. Formal channels of communication in an organization are established to relay
messages that are related to employee’s work activities. These may follow the organization’s
hierarchy of authority or chain of command, and would often refer to announcements from the
human resources department, leadership messages, employee recognition and so forth. On the
other hand, the informal channels of communication in an organization involves personal and
social messages. Often, employees see these as gossips but these may still assist the
organization with change management if used properly. For instance, if there is a new process
in the testing phase, the group of employees experiencing it first hand may express their
excitement to others thus eliminating any fear of change and promoting enthusiasm in adapting
to the new process.

Exhibit 8.1
Communication Process
 When an organization understands the goals of communication and how it operates, it
can guarantee that their members have the right information on how they are supposed to
perform their responsibilities. Thus, further creating a productive, engaging and harmonious
working environment.

Verbal Communication

Verbal communication is the type of communication which involves the use of sounds
and words. It can be delivered either through oral or written means by the sender.

● Oral Communication.​ Often, oral communication is the most effective way of

communicating with others. Its primary advantage is the speed of exchange of
information and feedback from sender to receiver and vice versa. But a major
disadvantage of it is the possible distortion of message. Another is the language barrier
between the sender and the receiver.
● Written Communication. This form includes memos, emails, text messages and anything
that is done through writing or typing. Written communication does not only involve
written words but also drawn symbols. Unlike oral communication, these are verifiable
or tangible forms that the receiver can use as reference at a later date. However, it is
time consuming and most have a lack of feedback.

Non-Verbal Communication

Nonverbal communication is the use of movements, facial expressions, personal

appearances, eye contact and all other non-words means to communicate. It is agreeable that
non-verbal communication helps make a conversation more interesting. For instance, teachers
tend to use various movements and gestures when explaining lessons in class to catch the
attention of students. In an organization, some common non-verbal communication practices
are the individual’s general appearance, personal hygiene, and dress codes or uniforms.

Interpersonal Communication

Interpersonal communication is the exchange of information between two or more

individuals or groups. According to F. Luthans (2010), “in interpersonal communication, the
major emphasis is on transferring information from one person to another.” Interpersonal
communication may be done through various verbal or non-verbal ways as explained earlier.
Communication is a basic method observed for having an effect on behavioral change in
employees in an organization. It combines the psychological processes like perception,
motivation, and learning, and language. But the organization must also acknowledge that the
advancements in information technology also have an impact on the human interaction process.
Nonetheless, interpersonal communication can only be effective when the recipient has properly
decoded and firmly believes the message from the sender.
Importance of Feedback

Feedback is an important part of the communication process. In an interpersonal

communication, unless feedback is given from one party to the other, it will be difficult to assess
if the message decoded the way it was intended. Simply, interpersonal communication is highly
dependent on feedback because it makes communication a two-way process.
In the organizational context, feedback is seen to help improve employee’s productivity
and manager’s effectiveness since there is a proper exchange of information from the two
individuals. There are less misunderstandings and more flow of ideas present in the
employee-employer relationship. This also further results in better organizational performance.

Barriers to Effective Communication

We have discussed that in order for a communication to be effective, it must be

interpreted with its intended purpose. However, there are still some unexpected barriers that
disrupt the transfer of messages. Some common barriers to effective communication are as
follows:

1. Semantics. T ​ hese are the varying gists that people attach to words. People have
different ways of interpreting the semantics of others. For instance, when a CEO
announces that only “essential workers” are required to come to work, those who were
informed that they will be working from their respective homes may think that they are
part of the “nonessential workforce” thus may also misinterpret that their jobs are not
important. How to overcome: Clarify ideas before sending it.

2. Filtering of negative information.​ This involves the altering of information to make it more
appealing or pleasing to the receiver. Usually, this is done by subordinates to please
their supervisors even if they need to send negative news or results. How to overcome:
Motivate the receiver that despite the bad news, there are various solutions that may be
taken.

3. Lack of credibility of the sender.​ Often, the clarity of a message is dependent on the
credibility of the sender. If the sender is trustworthy and credible, his message is easily
conveyed. But if the sender lacks credibility, his message may be ignored most of the
time. How to overcome: Communicate feelings behind facts and do not be afraid to
repeat the message and ask for their feedback.

4. Information or communication overload.​ This happens when people are so overloaded

with information from various sources that they begin to question the relevance of each
information. This further results in stress and misinterpretation. How to overcome:
Choose only a few reliable sources and stick to their messages or information. It is also
advisable to engage in meta-communication to know if the parties involved can
accommodate each other or should do so in a different time.
 5. Poor communication skills. This involves mispronunciation of words, lack of
attentiveness, strong dependence on standard expressions, and all other ways or skills
that limits the ability to send or receive information. How to overcome: It is never too late
to study and improve one’s communication skills. Be open to constructive criticism.

Ethics in Communication

Any form of communication discussed may have positive or negative implications in an

individual. But as we continue to communicate, we must follow these ethical standards to
promote a healthier habit when interacting.

1. Honesty.​ This is an essential feature that every communication should have, whether it
is among members on the same level, from employees to managers or vice versa, or
from management to its external stakeholders. Honesty should always prevail when
presenting facts and figures regarding goals, expectations and other relevant company
information.

2. Refrain from Doing Harm.​ The communication, either on corporate to individual level or
internal to external parties, should always make every effort to refrain from doing harm.
For example, cigarette companies should always communicate the side effects of
consuming their products.

3. Fairness to all Stakeholders. The organization should communicate fairly may it be

internally (to employees) or externally (to the community). The management in a
manufacturing company, for instance, should disclose both to their employees and its
surrounding community on how their wastes are disposed of.

CONCEPTS OF DECISION MAKING

Decision making refers to choosing among alternative courses of actions which may
even include procrastination. Management is often seen synonymous to decision making but it
should be clarified that not all forms of management can be solely attributable to decision
making. Still, one should increase his effectiveness in decision making to maximize his
effectiveness at work.

Every information gathered by each individual in the organization can be used as a

basis to make a wide range of decisions which may affect others’ lives and change the direction
of the organization. For example, one wrong decision made by executives may result in loss of
investors, thousands of employees losing jobs, and so forth. Similarly, the decisions made by
big firms to close down operations in the midst of Covid 19 pandemic are having negative
effects for the entire economy not only in the Philippines but in the whole world. All members
involved in the outcomes came up with a decision, and all will live with its consequences.
Types of Decisions

Decisions in an organization often come from the top management downward to its
employees. A dangerous mistake happens when others assume that only top managers’
decisions matter. All decisions proposed by the members of the organization should matter as
long as it is relevant and it proposes solutions to their problems. The types of decisions vary
across the organization. In this discussion, we will identify two types of decisions, namely the
programmed and the non-programmed decisions.

1. Programmed decision. A monotonous and repetitive process wherein the individual

making decision/s consider certain SOPs, guidelines and company policies. These are
related to structured situations-the problem is more or less routine and repetitive in
nature. Since these situations are not new, these decisions do not need much
deliberation among managers.

2. Nonprogrammed decisions​. These decisions are taken in unstructured situations-non

recurring situations. The problems to be solved are unusual, ill-defined and complex thus
requires extensive brainstorming before coming up with a decision. These decisions
require a fair degree of risk taking since outcomes of decisions are not always certain.
They are done by managers in the top level of the organizational hierarchy considering
the context of organizational change and dynamic environmental conditions.

Decision Making Models

There are various decision making models that managers may use as a basis to come
up with solutions to their problems. One must carefully select which model best fits the situation
he is experiencing to have effective and efficient courses of actions. Below are the five
commonly known decision making models.

1. Rational Decision Making Model.​ The rational decision making model uses objective,
logical, and designed information gathering and analysis. In this model, the decision
maker is encouraged to understand the situation at hand, plan and interpret the gathered
information, and then take action.

2. Bounded Rationality Model. ​This model assumes that various factors found in an
individual or in an organization limit rational decision making. The same steps in the
decision making process are used in the bounded rationality model. However, the
information and alternatives considered are bounded to the amount the decision maker
is willing to gather.

3. Linear Model of Decision Making. This model involves listing the pros and cons of each
alternative that the decision maker finds. For it to be truly linear decision making, the
 decision maker must then rate or give a score to each of the positive and negative
factors, and arrive at a total sum for each side.

4. Intuitive Decision Making. When a manager refers to past experiences and personal
assessment in making decisions, they use the Intuitive decision making model. This
model is often used when encountering problems with high levels of uncertainty or
complexity, or when the decision is unusual and the managers don’t have past
experience with this kind of problem.

5. Garbage Can Model. ​The garbage can model assumes that managers use information
about problems, members, solutions and opportunities randomly in generating new ideas
and possible decisions. Unlike the other decision making models, this model often leads
to unsatisfactory solutions.

Bias in Decision Making

Bias is one of the most common sources of errors in decision making. It is the prejudice
of being in favor or against something, usually in an unjust manner. Here, an individual tends to
use too much emotion or depend on his current mood when making decisions. Hence, impulsive
and prejudged decisions are given to other people that may give poor and unwanted results.

Below are the common forms of biases that individuals tend to have:

● Overconfidence Bias.​ This is when people think highly of themselves that they tend to be
overly optimistic of being right all the time.

● Anchoring Bias.​ This is the tendency deciding based on the initial information only and
failing to adjust for succeeding information as it is gathered.

● Confirmation Bias​. This is the tendency of selecting and gathering information that only
supports one’s initial conclusions to reaffirm past choices.

● Hindsight Bias​. This is when an individual believes that he/she has accurately predicted
a particular occurrence after the outcome of such event becomes known.

● Representative Bias​. This kind of bias occurs when an individual wrongly compares two
situations due to its similarity, or when he or she impulsively evaluates a happening
without comparing it to similar situations.

● Availability Bias​. This form of bias suggests that individuals tend to use readily available
information when making a decision rather than conducting proper observation and
research.
 ● Commitment Errors​. When a decision maker insists on being committed to a previous
decision in spite of negative information, he/she commits this error.

● Randomness Errors​. The kind of error or bias wherein impaired decisions are made
because of creating a meaning from random events.

Group Decision Making and Techniques

In an organization, individuals may form groups to accomplish given tasks in a more

effective way (This will be further explained in the next chapter). Thus, it is necessary for us to
understand how groups make decisions and identify the various techniques in their decision
making.

Groups use the same decision making models that individuals rely on. Just like
individuals, groups can use linear models and intuition when on decision making. Further,
groups may also encounter biases and other pitfalls in making decisions. But to avoid these
possible harmful scenarios, groups may use the following models or techniques to reduce fear
and uncertainty, and generate better results with their decisions.

● Nominal Group Technique​. It is a structured process of generating and ranking ideas

proposed by members to solve the identified problem/s. It is considered “nominal”
because the technique helps reduce interaction among members at some stages in
group decision making.

Exhibit 8.2
The Nominal Group Technique

As you can see in the model (exhibit 8.2), the steps of the nominal group technique are:

Step 1. Individuals in the group are given a problem, and the member identifies his or
her alternatives to that problem.
Step 2. All of the alternatives given are shared with the group and taken into account.
Step 3. Without disclosing whom the alternatives were from, the group narrows their list
through brainstorming and discussions.
Step 4. The group votes which among the narrowed-down list of alternatives are the
best.
 This process can be repeated until the group reaches an agreement on the solutions to
the problem. The key to succeed in this technique is the limited interaction among members
during the first stage but such will also require a facilitator.

● The Delphi Technique​. This technique suggests the use of a series of formal surveys
and rating scales to obtain various opinions about an issue. A facilitator or a small group
may form a questionnaire to ask for the opinions of others on a particular problem or
topic, and then gather and summarize the responses to develop a more focused
questionnaire. This can be repeated several times until they have identified the primary
cause of the issue. This technique can be done in larger groups and be conducted
through the use of technology. However, it is time consuming and requires other
techniques before concluding into a final decision.

End of Chapter Test

Essay. ​Write your answers on the space provided.

1. Cite at least two pillars of communication and briefly explain each.

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2. Is feedback an important part of the communication process? Why or why not? How can
360-degree feedback help the parties involved in the communication process?
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 3. In an organization, which among the decision making models will give better outcomes
than others? Explain your answer.
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References

Books
Luthans, F. (2010). Organizational Behavior (12th ed.). McGraw-Hill Education.

Mullins, L. J. (2010). Management and Organisational Behaviour (9th ed.). Pearson

Higher Ed.

Electronic References
Retrieved August 5, 2020 from,
https://courses.lumenlearning.com/wm-organizationalbehavior/chapter/assignment-communicati
on-in-the-workplace/

Retrieved August 5, 2020 from

https://courses.lumenlearning.com/wmopen-businesscommunicationmgrs/chapter/effective-com
munication-in-business/
 Module 9
GROUPS AND TEAMS

Module Introduction
Organizations are not simply composed of individuals working alone. Employees are
usually put together in groups or teams to accomplish given tasks that individuals alone, cannot
efficiently and effectively achieve. This module discusses the nature of groups and teams. The
first part tackles the definition of groups and teams, and the various types and functions of
groups. The succeeding section explores the difference between teams and groups to properly
distinguish one from the other. The remaining parts of the module are about the characteristics
of effective groups, and some complications that groups experience. The last section also has a
timely discussion on the challenges and opportunities for work teams amidst the Covid19
pandemic.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Describe the nature of groups and teams; and
2. Explain and explore the relationship between general group and team management with
various structures and techniques

THE NATURE OF GROUPS AND TEAMS

A ​GROUP is a collection of people who interact with each other, work to achieve a
common purpose, and perceive themselves as a group. An essential feature of human behavior
and of organizational performance is the efforts and influences exerted by groups to their
members. The functionality of groups has strong implications to the organization’s productivity.
For instance, groups with members who get along tend to contribute with high performance
levels while those with high levels of conflict may demoralize members of the workplace.

Groups in organizations may be classified into various types. These may be in the form of:

1. Informal Work Groups -​ ​are formed spontaneously by two or more people who share
the same interests, values and identities. Some of these kind of work groups are:

a. Friendship group - An informal work group composed of people who are

comfortable with each other and socialize even outside working hours.

b. Interest Group - An informal work group consisting of people who come together
because they have a common interest related to their organizational
membership. Those concerns might include providing better work benefits,
improving the work environment, or conducting charitable activities. Interest
groups help members of an organization raise their concerns that may help
improve organizational development.
2. Formal Work Groups - intentionally formed by the organization to accomplish specific
tasks and achieve goals. Some types of formal work groups are:
a. Command groups - is a collection of subordinates who report to the same
supervisor in an organization. These groups are formed on the basis of basic
reporting relationships in organizations and are frequently represented on
organizational charts as departments.

b. Team - a special type of group where members have complementary skills and
are intensely committed to a mutual purpose, a set of performance goals, and an
approach to the task. Effective teams have members working harmoniously with
each other to accomplish goals that could not be achieved by separate
individuals or other kinds of groups.

■ Cross-functional teams are composed of members from different

specialties blended to accomplish a certain task requiring such a mix of
talents. These teams are used for purposes such as time management,
quality improvement, cost reduction, and work process enhancement.
Some organizations experience difficulty in managing these teams
because their members spend too much time trying to come to an
agreement on important issues. Just because people work in a group
does not mean they work as a team. (George and Jones, 2012)

According to A. DuBrin (2019), a key success factor for

cross-functional teams is the technical and process skills of their leaders.
Having technical background allows the leader to understand the group
task and to recognize the potential contribution of members from diverse
specialties. And with interpersonal skills, the leader can facilitate a diverse
group of people with limited, zero, or even negative experiences working
collectively.

■ Virtual Teams are groups of people who conduct a significant amount of

collaborative work through electronic communication rather than
face-to-face meetings. The team members are typically located in
different places but could also work in the same organization and
contribute input at different times. Teleworkers are often part of a virtual
team. Videoconferencing and telepresence can contribute strongly to the
workings of a virtual team.

■ Self-managed team is a formal work group consisting of people who have

the freedom to lead and manage themselves, and are jointly responsible
for achieving a certain goal. Some organizations prefer having
self-managed teams to enhance job satisfaction and motivate all
members to have high levels of performance.

c. Task Forces - is a temporary collection of people from different disciplinary

backgrounds who come together to accomplish a specific goal. Since it is only
temporary, the members usually disband after achieving their goal. A group
assigned to report a certain topic is an example of a task force. Sometimes, when
a long-term objective or concern is given to a task force, they are never
disbanded. These task forces are sometimes called ​standing committees or
 task groups where members are changed from time to time to give fresh
insights about the goal or problem and so as to relieve other members and
perform their regular jobs.

Exhibit 9.1
Types of Work Groups

Difference of Groups and Teams

It is common to use the terms ‘groups’ and ‘teams’ interchangeably in public usage and
literature, including to some extent in this book. But we should be mindful on how to properly
distinguish one from the other. With this, below are some basic differentiators to enlighten our
understanding between groups and teams.

Exhibit 9.2
Difference of Groups and Teams

Group Team

Formation Can be formed from any basis Formed for a common purpose

Size Medium or Large Small or Limited

Selection of members Immaterial Essential

Leadership Solo Shared Leadership Roles

Skills of members Random or varies Complementary

Spirit Togetherness Dynamic Interaction

 Groups can be formed from any reason or factor desired by its members. For instance, a
teacher may form groups of students according to their height for a simple class activity. Thus,
in terms of size, it has considerably greater composition of members than teams and it does not
have a significant way of selecting its members. A single leader is appointed to facilitate the
group. The members have various skills that may not necessarily match with others but they still
feel a sense of belongingness.

Teams, on the other hand, are rationally formed to work as one and achieve a common
goal. Its size is only limited because of the thorough selection process that prospect members
undergo before being part of the team. In such a process, one must possess all required
complementary skills to become a team member and for any member be capable of leading the
team as they progress. For example, a company who wishes to develop a new product must
create a team with members from different departments like marketing, production, finance and
accounting, for them to share sufficient knowledge and skills.

Figure 9.2 summarizes the differences discussed between groups and teams. The
common differentiators used are size, formation, leadership, selection and skills of members,
and spirit. With these discussions, we may conclude that all teams are groups but not all groups
are teams.

Stages in Group Development

Bruce Tuckman, an American organizational psychologist, presented a robust model in
1965 that is still widely used today. He proposed a four-stage map of group evolution, also
known as the forming-storming-norming-performing model based on his observations on how
groups behave in different situations. Later, he improved his model by including a final stage,
the adjourning phase. Each stage is discussed below and is illustrated in Figure 9.3.

Exhibit 9.3
Stages in Group Development
 1. Forming - ​the initial stage where members of the group meet for the first time. They may
have been acquainted before or not. Either way, there is uncertainty, confusion and
some anxiety as group members are not sure what is going to happen next. Also, at this
stage, members start to identify the purpose of the group, their hierarchical structure,
individual roles and responsibilities, codes of conduct and pattern of leadership.

2. Storming - ​As the name suggests, this stage is characterized by considerable levels of
conflict and confrontation. At this stage, participants start to completely socialize with
other members and become more realistic and argumentative. Members may enter
disagreements as to their roles, responsibilities, authority or personal gain. This phase is
completed when members overcome resistance, accept the group’s control, and they
have mutual agreement about who will lead the group.

3. Norming - ​Over time, members develop the sense of belongingness, commitment and
camaraderie. Members start to collaborate and cooperate with each other thus there is
greater cohesion and sense of group identity. By the end of this stage, members agree
on standards, guidelines and operating procedures in the group.

4. Performing - ​This is the stage at which members do the real work. Creativity and
intrinsic motivation are likely to be seen among members. They focus on being
productive by task specialization to effectively attain their purpose. By now, the group is
more matured, competent and insightful.

5. Adjourning - ​Ideally, after achieving the intended purpose or goal, members are
immediately directed to abandon their groups and move on to other tasks given to them.
However, groups with long-term objectives like task forces do not totally disband as they
change their group composition. These groups only disband when they have achieved
their long-term goals.

Tuckman’s five-stage “forming-norming-storming-performing-adjourning” model is an

ideal presentation on how groups are developed. However, various researches indicate that not
all groups undergo each of the stages, nor do they thoroughly follow the order specified in the
model. It is also evident that some groups experience certain stages longer than others. Connie
Gersick, an organizational researcher who studies task forces, found out that groups with
deadlines did not go through a series of stages. Rather, they alternated between ​periods of
inertia (little was accomplished) and ​periods of frenzied ​activity (there is rapid progress toward
the goals). It is interesting to note that these studies found that the duration of the stages
depended on how long the group was given to achieve its goals.

WORK GROUP STRUCTURES

1. Work Roles

A ​role is a position with a set of behaviors or tasks that a person is expected to perform.
Different roles are established within the group when work is divided and tasks are assigned to
individual members. It is easier to accomplish the group’s goals when members differentiate
their work activities. Some may act as leaders and assume authority, others perform major
works, and some serve as support. This specialization of work activities is usually termed as
role differentiation​. In an organization, it is suggested that work roles can be divided into three
types based on the nature of the activities performed by members in the role. These are:

● Task-oriented roles​. Roles that focus on relevant activities concerned with reaching
performance goals.
● Relations-oriented roles​. Roles that emphasize on group development, including building
camaraderie, cohesiveness, group harmony, and so forth.
● Self-oriented roles​. Roles that are related to the specific needs and goals of individual
members, often at the expense of the group.

2. Work Group Size

To determine the size of the group, one must take into consideration the number of
members who work full-time to achieve their goals. Groups may be formed with just three
individuals or more than 20. There are many conflicting studies and researches regarding the
ideal number of members in a group for them to be efficient. Nonetheless, the size of a group is
an important determinant on how group members behave. Small groups tend to have more
interactive and productive members because of the ease in communication and delegation of
work.

The variation in size has an effect on how members behave in the group. Some of the
factors affected by the group size are as follows:

● Group Interaction Patterns​. In smaller groups, harmony is important and members have
the luxury of sharing their thoughts and opinions. On the other hand, members in larger
groups must be more vocal and straightforward because of the increased competition for
authority and attention.

● Job Attitudes and Job Satisfaction​. Some studies show that people working in smaller
units or groups have better work ethics and higher job satisfaction than those in large
groups. Such is reasonable given that members in smaller groups receive ample
attention and appreciation than those working in large groups.

● Absenteeism and Turnover. Members of an increased group size may commit

absenteeism because they have low group cohesiveness, high task specialization, and
poor communication. Further, their self-perceived value may not be satisfied. Similarly,
these scenarios are also considered for high employee turnover in large groups. It may
be assumed that since groups with a bigger number of members make satisfaction more
difficult, individuals find more reasons to leave the group.

● Productivity​. To have a concrete understanding of the relationship between group size

and productivity, one must take into consideration the types of tasks performed in the
group. For example, in piece-rate jobs, as we add more people we also add more
productivity. Still, there are some tasks where everyone works together and uses their
resources. The added boost of new skills or knowledge decreases with the increase of
members in the group. After sometime having more members will fail to increase group
productivity. Such may just result in problems concerning coordination and motivation.
Large groups will be less productive than small groups. Nonetheless, in productivity and
 group size, it is important to recognize the existence of a unique factor called social
loafing which will be discussed thoroughly later on this module.

Work Group Norms

The informal guidelines or standards on acceptable and unacceptable behaviors agreed

on by members are called ​work group norms.​ A typical example is a classroom situation when
students develop a norm against getting too close with the professor. It is believed that students
who are too attached with their professors may feel superiority in class and may speak
impolitely at times. Thus, a norm is created that attempts to govern acceptable boundaries in
student-teacher relationship and classroom behavior. There are also similar examples in the
workplace. Some of it is like norms in producing too much or too little, coming into work too late
and so forth.

“Organizational Behavior” published by OpenStax (Download for free at

https://openstax.org/details/books/organizational-behavior​.) suggests that work group norms
may be characterized by at least five factors:

1. Norms summarize and simplify processes.

2. Norms apply only to behavior, not to private thoughts and feelings. (Only public
compliance is needed.)
3. Norms are generally developed only for behaviors that are viewed as important by
most group members.
4. Norms usually develop gradually, but the process can be quickened if members wish.
5. All norms do not apply to all members.

In an organizational setting, below are four functions of work group norms:

1. Norms provide a basis for the survival of the group.

2. Norms direct members to behave as what is expected of them.
3. Norms help avoid embarrassing situations.
4. Norms help classify the group and show its important values to others.

Status Systems

Another structural property of work groups is the status system. Status systems help
distinguish individuals on the basis of a set of criteria. Status differentiations are made with five
general bases: birth, personal characteristics, achievement, possessions, and formal authority.
All five bases can be seen as establishing status in work groups. For example, an employee
may achieve high status because he is the son of an executive (birth), the smartest or most
beautiful member of the group (personal characteristics), the one who got the highest score in
an exam (achievement), the richest (possessions), or the supervisor (formal authority).

There are four purposes for status differentiation in organizations (and their related
status symbols):
 1. Motivation. It is common to see an individual’s organizational status as rewards or
incentives for performance and achievement. Thus, people tend to be more motivated to
have better status in a group.
2. Identification. In new situations, status and status symbols give suitable classification to
acceptable behavior. For example, titles of employees in a business quickly tell
members who have greater authority than others.
3. Dignification. Most people associate status with the amount of respect that should be
given to an individual. A nun’s attire, for instance, identifies a religious representative.
4. Stabilization. Status systems and symbols facilitate balance in an otherwise troublesome
environment by providing a force for continuity. Since status equates to authority, those
with higher positions may provide solutions in challenges that threaten the organization’s
progress.

Group Cohesiveness

Group cohesiveness happens when members are attracted, committed and unified to
work with each other. Cohesiveness helps a group to be efficient and achieve synergy. Having
the right number of members with complementary skills also fosters group cohesiveness. As
with many organizational behavior concepts, group cohesiveness is composed of some
components, namely interpersonal attraction, task commitment and group pride. These
components are related to group efficiency and constructive behaviors.

MANAGING EFFECTIVE WORK GROUPS

Previous sections of this module have discussed in detail the nature and structure of
groups and teams. With all these differences, another interesting concern is how managers or
leaders handle these groups to be effective in accomplishing their tasks. To enlighten us in this
matter, exhibit 9.4 illustrates J. R. Hackman’s model of group effectiveness.

According to Hackman’s model, effectiveness is defined in terms of three criteria:

1. ​Productive output.​This must meet or exceed the standards defined by the organization.
2.​ Personal need satisfaction​. Groups are effective if its members perceive that their needs
are satisfied.
3. ​Capacity for future cooperation​. Effective groups go through social processes that sustain
or improve the capability of their members to work together.

Determinants of Work-Group Effectiveness

Group effectiveness is determined by an intermediate criteria. These factors are as follows:
1. ​Group effort.​ The amount of effort members exert to accomplish the group’s tasks.
2. ​Group knowledge and skill.​The available amount of knowledge and skills that members
have for group effort and performance.
3. ​Task performance strategies.​The relevance of the group’s strategies for task
performance.
 Exhibit 9.4
Determination of Work Group Effectiveness
Copyright Rice University, OpenStax, under CC BY-NC-SA 4.0 license
(Download for free at ​https://openstax.org/details/books/organizational-behavior​)

All three intermediate factors are essential for the effectiveness of the group. But the
relative importance of each factor may vary. The nature of work technology, like the
manufacturing equipment and materials used, work procedures performed, and so forth, is an
important influence on the relative importance of the three determinants. For instance,
employees in highly routinized jobs like factory workers may consider their personal skills and
knowledge to be less essential than simple effort. On the other hand, individuals working in
more complex jobs such as those in research and development, must possess relevant and
strategic skills and knowledge because effort alone will be of little help. Thus, although the
relative importance of these variables vary with the technology in their work, all should be
accounted for in any effort to understand the determinants of work group effectiveness in a
given situation.

Finally, the three factors, shown at the left-hand side of Figure 9.4, influence the three
determinants of work group effectiveness should be recognized. The first of three factors is the
series of environmental context factors which includes the reward system, training programs, job
descriptions, and the like. Second are several design factors like group structure, group
composition, and work norms. Lastly is the role of interpersonal processes such as efforts
among group members and conflict management, and sharing of knowledge. The intermediate
criteria are highly determined by these three sets of factors. And when these intermediate
determinants are combined with appropriate work technologies, work group effectiveness may
be achieved.
THE DYSFUNCTIONS OF GROUPS AND TEAMS

A group or team is composed of individuals who have various characteristics that may or
may not be in accordance with each other. These variations may lead to conflict and the
members’ misunderstandings may result in group dysfunctions. Dysfunctions are negative
deviations that may cause the group some delays to achieve their goal, or worse to totally
disband and not achieve anything. The following are some common dysfunctions experienced
by group members.

Status Incongruence​. This situation happens when a person has a high value on some given
aspects but low on others, or when others see a person’s characteristics to be inappropriate for
a particular position. Some examples of status incongruence include the student who works as
a restaurant crew during the summer (the typical “working student” as called by other
colleagues), the chairman’s son who works his way up in the organization (but usually at a fast
rate), or the young enthusiastic employee who is promoted to a level held by older managers.
(Reference is “Organizational Behavior”, produced by OpenStax licensed under a Creative
Commons Attribution 4.0 International License; Download for free at
https://openstax.org/details/books/organizational-behavior​)

Group Polarization. ​Group members change their attitudes of behavior during problem solving
or group arguments. There are times when the group prefers taking the risky shift, where
options with higher risks are considered. Sometimes, the group decides to move towards a
more conservative position. Moving in either direction is called ​group polarization​. This occurs
when pre-discussion attitudes are less extreme than post-discussion attitudes. For example, as
a result of group discussion, members of an executive team become more cautious about
venturing into a new business line. Group polarization is assisted by group discussions. During
these meetings or discussions, members listen to persuasive arguments and allow them to
evaluate if others also share their opinions thus reinforce and strengthen their position. The “it’s
not my fault” attitude also contributes to polarization. If members decline to take responsibility
for their actions, a person will feel less accountable and guilty about taking an extreme position.

Social Loafing. ​Social loafing refers to the tendency of individuals to reduce their effort and
performance levels when working in a group context. This was first noted by French agricultural
engineer Max Ringelmann in 1913, where it was coined as the Ringelmann effect. Primary
causes of this problem include the lack of performance feedback, unmotivating tasks, instances
when the less effort of some members are covered by the strong performance of others, and the
“sucker effect” of not exceeding the effort that others expect of them. Such phenomenon is more
likely seen with large teams because individual contributions are harder to acknowledge. To
reduce social loafing in groups and teams, leaders may perform the following:
● Properly identify individual contributions
● Make members feel valued and appreciated
● Keep your size as small as possible

Some of these ways may be difficult to perform. But still, leaders or managers may
simply keep in mind to give ample attention to each member. By doing this, members may boost
their morale and feel more motivated in performing within the group and achieving their goals.

Groupthink. ​Irving Janis, a well-known social psychologist, conceptualized the term

“groupthink”. According to him, it is a deterioration of mental efficiency, reality testing, and moral
judgment in the interest of group cohesiveness. (Luthans, 2010). Groupthink occurs when
members of a group are extremely pressured to achieve conformity and consensus. Groups and
teams experiencing groupthink have members who think highly of themselves as being part of
such a group or team, that they do not make realistic analysis and moral judgement. Some
contributing factors in groupthink are limited time for decision-making, directive leadership, high
stress, and a lack of built-in mechanisms for evaluating decisions. Hence, groupthink is a great
disadvantage for groups because it hinders effective decision making. Wanting to achieve
consensus and being seen as a nuisance by others are emotional factors that delay a person to
make an optimal decision to a problem.

Groupthink can be prevented if the leader or any member initiates a healthy

communication with all other members to express their ideas and even negative reactions on
proposed solutions to a problem. Having suggestions from a third party is also beneficial for
them to have someone else to pinpoint habitual errors and to give new ideas. A specific
technique to avoid groupthink and decrease the members’ tendency to be high in consensus is
having a pre-commitment where members are encouraged by the leader to write their opinions
about the proposed decision anonymously. The leader then makes a list from these statements
and distributes it to the group before the meeting.

Excessive Collaboration. ​Collaboration is essential for groups to function efficiently, but having
excessive collaboration can be dysfunctional. For introverted workers,”alone time” is a critical
factor for recharging and generating creative thoughts for problem solving. However, in the
eagerness to maintain collaboration within groups, the value of an individual’s outstanding effort
is often neglected. At many companies, workers spend more time attending meetings and
responding to inquiries physically or through phone calls than performing their analytical works.
Often, these excessive collaborative works serve as interruptions for an employee in
accomplishing their individual tasks, and further leads to workflow bottlenecks and employee
burnout . (However, recognize that some workers do not want to work alone and prefer
continuous physical or digital interaction with others)

WORK TEAMS AMIDST COVID 19 PANDEMIC

Coronavirus Disease of 2019 or better known as Covid-19 is an infectious disease that

the whole world is currently battling. Due to its rapid spread and unavailability of effective
medicines, countries are experiencing economic disruptions. Organizations all over the world
struggle to protect and continue the operations of their businesses. Business establishments
that may operate are challenged on how to adapt with the demands of its external partners, like
the government, suppliers and consumers, without jeopardizing the welfare of its employees.
According to 5 online articles published by PwC Malta under the topic entitled, “COVID-19
Workforce Challenges & Tips”, below are some appropriate workplace measures to aid
operating businesses during this time of pandemic.

Source: ​https://www.pwc.com/mt/en/publications/humanresources/covid-19-workforce-challenges.html

1. Develop a ritual or routine.​ Since your employees are working remotely, having a set of
routines to follow may help them while working. This can encourage discipline and set
 boundaries between “working at home” and “staying at home”.
2. Continue giving support.​ Shifting work in a virtual environment still requires your support
and online expressions. You may conduct regular check-ins, virtual coffee breaks,
celebrations for birthdays or goals reached and projects completed, and so forth. These
activities will help boost the mental health of your employees, lessen any stress or
trauma brought by the pandemic and empower them to be motivated in performing their
responsibilities.
3. Communicate effectively.​ Nowadays, information is wealth and regular communication is
key, to ensure employees know what is expected of them, what the team is working
towards and what needs to be prioritized and focused on.
4. Establish a crisis team​. Being vigilant is crucial during this pandemic. Acting as fast as
you can against negative situations, may ensure business continuity. A core crisis team
may be established to coordinate response efforts, define objectives and develop
preparedness measures or contingency plans in case of unknown variables caused by
the outbreak. This team will act as the “go to” personnel to ensure consistency across all
departments and functions.
5. Create split team arrangements​. To mitigate the unnecessary spreading of the virus if
employees need to work physically, it is advisable to split employees into various teams.
The business may either physically segregate the teams by allocating different office
locations or by having different work shifts.
6. Flexible work arrangements. T ​ his option should be considered to ensure minimal contact
between employees, as well as between employees and other stakeholders. Remote
working should be encouraged for staff that can perform their duties even outside the
office. If such is not possible, splitting of teams as explained before may be taken into
account. This measure eases the challenges faced by working parents due to school
closures.
7. Keep up through innovating and up-skilling. T ​ hese times are accelerators for innovation
and creativity as seen with the past pandemics and recessions. It would be best if an
organization can invent new products or ways to adapt with the situation. Acquiring new
equipment and up-skilling or training employees to learn new relevant techniques are
great investments that a business must consider even if there is a budget restraint.
 End of Chapter Test

A. Directions: ​Choose the corresponding answer in each statement from the word bank below.

_______________ 1. ​It is a collection of people who interact with each other, work to achieve a
common purpose, and perceive themselves as a group.
_______________ 2. These are groups formed intentionally by the organization to accomplish
specific tasks and achieve goals.
_______________ 3. ​A temporary type of group that disbands after accomplishing all given
tasks.
_______________ 4. ​A stage in group development where members start to feel more
comfortable and initiates collaborations with other members.
_______________ 5. ​Under this stage, members have higher levels of anxiety and conflict
because of resisting the group’s control.
_______________ 6. ​When members of a group are matured enough to focus on being creative
and productive, they are at the stage of _________.
_______________ 7. These are informal guidelines or standards on acceptable and
unacceptable behaviors agreed on by members.
_______________ 8. A structural property of work groups that happens when members are
unified and committed to work together as one.
_______________ 9. He was a well-known social psychologist who conceptualized the term
“groupthink”.
_______________ 10. A dysfunction of groups and teams that is most likely seen in those with
large size because members tend to reduce their effort when working with others.
B. Essay. ​After reading the measures that operating businesses may perform during a
pandemic, what other optimistic suggestions can you give for work teams to strive in the
new normal?

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References

Retrieved July 30, 2020, from

https://www.pwc.com/mt/en/publications/humanresources/covid-19-workforce-challenges.html

DuBrin, A. J. (2019). ​Fundamentals of Organizational Behavior​. (6th ed.). Academic

Media Solutions

George, J. M., & Jones, G. R. (2012). ​Understanding and Managing Organizational

Behavior ​(6th ed.). Pearson Education Inc.

Hitt, M. A., Miller, C. C., Colella, A., & Triana, M. (2017). ​Organizational Behavior ​(5th
ed.). Wiley Global Education

Luthans, F. (2010). ​Organizational Behavior​(12th ed.). McGraw-Hill Education.

Mullins, L. J. (2010). ​Management and Organisational Behaviour​(9th ed.). Pearson

Higher Ed.

Organizational Behavior. (n.d.). OpenStax. Retrieved July 24, 2020, from

https://openstax.org/details/books/organizational-behavior

Schermerhorn Jr., J. R., Hunt, J. G., Osborn, R. N., & Uhl-Bien, M. (2010).
Organizational Behavior​(11th ed.). Wiley.
 Module 10
Power, Politics, and Influence

Module Introduction

Employees in an organization tend to use various kinds of power to acquire greater

authority. Those with authority have political advantages when it comes to decision making
because they have persuasive influence and other members tend to favor them. This is why
power, politics and influence are interesting standard topics in organizational behavior since
each of them have major impacts on an individual’s attitude and performance. This module
explains the nature, sources and other relevant concepts of power, politics and influence in the
organizational setting. Lastly, organizational conflict is also discussed with some ethical
considerations to enlighten readers as to when power, politics and influence violate moral
regulations.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Analyze the sources of conflict;
2. Discuss how to respond in workplace conflict and the importance of managing conflict;
3. Define power, differentiate its classifications, and describe its relationship to authority
and influence;
4. Evaluate empowerment of employees;
5. Relate the political implications of power;
6. Evaluate political strategies for power acquisition in modern organizations

THE NATURE OF POWER, POLITICS, AND INFLUENCE

Definition of Power, Politics, and Influence

Power is the ability of an individual or group to influence decisions and control resources.
We cannot see directly the power that one possesses yet we can observe its effects as
someone with power influences others’ actions, thoughts and outcomes. In an organization,
someone with power has the ability to direct and control activities to perform and goals to
achieve. For example, in negotiating a new contract, the conditions set in such agreement are
usually influenced by the party who has greater power over the other.

Managers often argue on how to get things done in an organization. With their power,
they try to control the decisions of others to favor them to engage in politics. Likewise, politics is
also a way to achieve power. According to DuBrin (2019), organizational politics refers to
informal approaches to gaining power through means other than merit or luck. Scholars have
recognized in recent years that having political skill is an advantageous attribution for individuals
and can give benefit to the organization. Political skill is a combination of social intelligence with
the flexibility behavior to different situational demands. As a result, the person with political skill
inspires trust and support, controls and influences the responses of others, and appears
genuine and sincere. DuBrin also explained that influence is also the ability to change behavior
in a more subtle and indirect way than power. In affecting outcomes, people who use influence
must exert more effort and show more competence than someone who is using power.
Influence can also be used by a politically skilled manager in organizations, such as having firm
relationships with very important peoples (VIPs).

Political tactics are often used by managers and professionals to gain power and
influence in accomplishing their work. With this, is the use of power and politics necessarily
negative? Though there are various arguments regarding such a question, it is safe to say that
too much of everything is bad. When managers or professionals abuse their power, politics and
influence to pursue personal interests, most likely it would be at the expense of other people.
Nonetheless, the proper use of power, politics and influence can be highly beneficial and
strategic not only for the individual performing it, but most especially for the organization as a
whole.

SOURCES OF INDIVIDUAL POWER AND INFLUENCE

When managers properly identify where power comes from and how others obtain it,
they can enhance their skills and use it to improve the performance of the organization, achieve
better results and minimize other negative effects. In this section we will identify the sources of
formal and informal power that an individual may possess.

Exhibit 10.1
Sources of Individual Power
(Adapted from George and Jones, 2012)

Sources of Formal Individual Power

Formal individual power comes from the level of position or authority that an employee
holds on an organization’s hierarchy. When individuals are hired or promoted in a position, they
accept the responsibility of performing their corresponding tasks and duties. The organization, in
return, grants formal authority to use available resources to accomplish all necessary
requirements for attaining their goals. Under formal power is a manager’s legitimate, reward,
coercive, and information power.

LEGITIMATE POWER​. Legitimate power is based on the formal position that an individual holds
to control and use organizational resources in achieving goals. In a business organization, one
of the positions holding a great deal of legitimate power is the chief executive officer or CEO. He
or she is granted by the organization’s board of directors to manage and operate all resources.
The CEO also has the right to direct the managers and employees lower in the organizational
hierarchy. Hence, legitimate power is the ultimate source of an individual’s power in an
organization. But one must remember that the greater legitimate power and authority, the more
liable and responsible one should be for using organizational resources. This is why a CEO’s
position in some companies often has an averagely high turnover rate – poorly performing
CEOs are immediately replaced.

REWARD POWER​. Reward power is the power to give incentives like raises in pay,
promotions, recognitions, interesting assignments, and other rewards deemed to be beneficial
by subordinates. This power is fueled by the subordinate’s need for better benefits or for more
motivation. Though it was stated that legitimate power is the ultimate source of an individual’s
power, in some cases reward power becomes the highest form especially when the reward to
be granted is scarce.

COERCIVE POWER​. Coercive power is the power to take away something or give punishment
for noncompliance. Fear is the principal reason why this power affects an individual’s behavior.
Being threatened for suspension, demotion, termination or even having unpleasant job
assignments, influences the behavior of employees.

Supervisors have great power since they have the ability to reward or punish their
subordinates. To avoid abusing such powers, the organization defines standard rules and
regulations regarding when and how employees may receive rewards or punishments. But
sometimes, people still compare the rewards or punishments they receive from what is given to
others. If they feel unevenly treated, they may have low levels of job satisfaction, perform
poorly, or resign. It is an important managerial skill to give out just and equitable rewards and
punishments for employees to maintain and improve their performances.

INFORMATION POWER. ​Information power is power originating from the access and control of
important organizational records and decisions. Managers with more capability of accessing
significant organizational information have greater power over others. Knowing and controlling
these data records gives the manager an advantage to easily resolve problems and to have
their subordinates highly rely on them. This is why some managers fear sharing too much
information with subordinates. If their subordinates know as much as they do (or, even
sometime, know more than they do), their power to control their behavior will be disregarded.
Although individual managers sometimes benefit from keeping information to themselves, the
most effective organizations are those in which organizational members share, not hoard,
information. (George and Jones, 2012)

Sources of Informal Individual Power

We have previously discussed the powers coming from the position of managers in the
organizational hierarchy or the so called, formal individual powers. But one’s organizational
power does not only come from their position. There are also powers originating from an
individual’s characteristics, like his or her personality, skills and capabilities, which may
influence others' interaction towards them. This power is called informal individual power and it
has three major sources: expert, referent and charismatic.

EXPERT POWER. It pays off to be a proficient pioneer in an organization because people

depend on you. Sometimes, other employees even see you as superior than existing managers.
This also gives you an opportunity to be promoted up the organizational hierarchy. The power
associated with the superior ability or proficiency to perform a task or role is called the expert
power. However, there are times when individuals with expert power have a habit to be
mavericks—those with little or no desire to assume formal authority because they value their
individuality. In such cases, it is advisable for managers with formal power to increase autonomy
and create a harmonious relationship with the subordinate having expert power to prevent any
conflict.

REFERENT POWER. Employees who are highly admired and respected possess referent
power. It is the ability to influence others due to one’s desirable features or characteristics.
People are usually attracted to follow individuals who are famous and with good reputation.
Thus, employees with referent power because of who they are as a whole – not just because of
their knowledge, skills and expertise. An example of individuals with referent power are famous
artists who are paid to advertise products and services offered by the organization. It is believed
that these endorsers can help encourage consumers who admire them to buy the products they
advertise.

CHARISMATIC POWER. Charismatic power is an extreme form of referent power. It comes

from a person’s unique personality, bodily strengths, or other capabilities that persuade others
to follow that person. Sometimes, people blindly follow and believe in an individual with
charismatic power. Even when such individuals commit fraud or violence, followers still desire to
be loyal with their leader. An example of this is seen in cults from other countries where
followers are significantly dependent on their leader’s vision. In an organization, when
charismatic power exists, all other formal individual power lose their importance because
followers give their charismatic leader all rights to manage all resources. Some well-known
charismatic leaders are Bill Gates, during his days in Microsoft, and Steve Jobs at Apple.
Researchers argue that charismatic power can be advantageous and give positive results if
there will be checks and balances to limit the formal power that a charismatic leader possesses.
SOURCES OF FUNCTIONAL AND DIVISIONAL POWER

We have discussed various sources of power in an organization. Some are favorable to

managers while some are quite negative. Still, managers in certain functions or divisions can
enhance their individual powers with other sources. This section explains how a division or
function gathers more power when other divisions become dependent on or be controlled by the
tasks the former performs.

Exhibit 10.2
Sources of Functional and Divisional Power
(Adapted from George and Jones, 2012)

Ability to Control Uncertain Contingencies. A contingency is a possible problem or event that

must be planned for. One must have enough people or resources as a solution should the event
happen. A function or division has power over others by reducing any uncertainty experienced
or managing the contingency. In a business, the accounting or finance function often has a
power over other functions because it can forecast potential distresses by analyzing financial
statements. The ability to forecast potential financial problems reduces the uncertainty in
business continuity. Nowadays, the ability to control information technology (IT) is an ideal way
to gain power since having relevant and timely information can be turned into one’s competitive
advantage in the market.

Irreplaceability​. A function or division may gain power if it is irreplaceable, specifically if there are
no other functions or divisions that can perform their duties and responsibilities. In a
manufacturing business, the engineering division usually gains power over other divisions
because their members are the only ones capable of fixing their equipment or machineries.
Engineers have the control over the delay of production if ever they please to do such.
However, a division’s irreplaceability can only arise to some extent. In our earlier scenario, a
manufacturing business can always look for alternative solutions like acquiring new equipment
in the event that their engineers cannot fix what is broken.
Centrality​. How vital or central a division’s operations in an organization also defines its power.
A strategically positioned division can be granted access to important information that other
divisions or functions need. Central functions gain power as other functions demand information
they know and become dependent on them.

Ability to Control and Generate Resources. A ​ nother source of functional and divisional power is
the ability to control and generate resources. Such ability can also be seen as a principal source
of power by top managers since they can manage or direct where and when funds or resources
are allocated. A division who receives generous amounts of funds can easily acquire new
people and spend some on research and development. Otherwise, those divisions who are
deprived of resources may be incapable of performing well especially in the long run. In terms of
generating resources, a division whose product line produces greater profits can be highly
favored by the top management. Hence, they may receive various rewards like promotions,
increases in salaries and so forth.

EMPOWERMENT

Lower-level employees often have the insecurity of working with powerful managers.
This is because their ideas are usually turned down or are taken from them by other managers.
With this, many employees with great potential and skills either perform poorly or feel the urge
to look for better job opportunities elsewhere. To prevent losing such employees, the
management may create programs in the organization that encourage empowerment.

Empowerment is the process of giving employees greater authority, independence and

responsibility to perform important tasks of the organization. This is not a mere form of
delegation since supervisors share their authority to low-level employees in the decision-making
process and give the latter the responsibility over any outcomes. Empowerment gives
employees the opportunity to show their potentials, create influence, and convince managers
that they are ready for promotion.

ORGANIZATIONAL POLITICS: The Use of Power

Organizational Politics involves activities by managers to obtain, increase and use

power. These activities allow managers to influence others and manipulate results of the
organization’s decision making process to favor their individual, functional and divisional
interests.

Aspiring and current managers perform organizational politics because they desire to
move up the organizational hierarchy. Managers know that as they move at the upper levels of
the hierarchy fewer and fewer slots are available to be filled. For them to beat the odds in the
competition for scarce positions and be promoted, employees try to increase their power and
influence. But too much competition among managers performing organizational politics may
come out of hand and negatively affect the organization. With this reason, top managers must
remember to keep their competition of organizational politics as healthy as possible to positively
impact the organization they are in.

Tactics in Increasing Individual Power

In managing organizational politics, one must understand tactics that managers use to
increase their various types of power. In this section we will discuss the commonly used political
tactics of managers in an organization as discussed in the book entitled, “Organizational
Behavior” by J. George and G. Jones.

1. Tapping the sources of functional and divisional power

One of the political tactics used by managers is to increase their personal power through
the sources of functional and divisional power. Managers may try to make themselves
irreplaceable by improving their knowledge and skills or innovate organizational processes to
make other employees reliant to them. Another tactic is to be more flexible and central by
accepting tasks from other managers in various departments. This way, managers can make
in-depth knowledge of all relevant organizational processes and create a strong relationship
with other members of the organization.

2. Recognizing who has power

When employees develop the ability to identify which manager has power and what
power he or she possesses, they may strive to impress and influence such managers.
Befriending and supporting a manager whose powers and influence is growing may benefit an
employee since he or she may move up with the manager in the organizational hierarchy. To
assess the relative power a manager has, below are five factors to consider:

a. Sources of Power​. Since power has different sources, one must accurately identify the
source of power that managers have to choose who among them has the best chance of
rising to the top.
b. Consequences of Power. We may associate the relative power of a manager on the
amount of resources he or she acquires during the budget process. Usually, the more
resources one receives, the higher the power he or she has.
c. Symbols of Power.​ Managers with a high level of power can be easily identified with the
various symbols of prestige and status they have. Some of these signs are job titles,
uniforms, offices, and other possible luxuries items or services that the manager is
privileged to access.
d. Personal Reputations​. The significance of a manager’s profile and the esteem that
employees express toward him indicate the amount of power he has to influence others.
Such also suggest whether he or she has the potential of rising or falling in the
organizational hierarchy.
e. Representational Indicators. An employee’s amount of organizational roles, membership
in committees, access to information and range of responsibilities he/she has also
 indicate power. For example, managers who are part of the executive committee may
influence the decision of the CEO. Thus, these managers have greater power than those
who are not part of such committees.

Newcomers in the organization may use these five factors to assess which manager or
group of people has more power. They may use this information to their advantage by predicting
who is highly favored and gets better benefits, and who is most likely to be promoted.

3. Controlling the agenda

Another important tactic used by managers is controlling the agenda. This involves
manipulating the presentation of issues to influence the decision of others in terms of the course
of actions to be taken. By deliberately limiting the issues presented, decision makers ignore
other problems and tend to suggest solutions where managers have specific advantages.

4. Bringing in an outside expert

Disagreements occur in an organization when it undergoes change or restructuring.

During these times, every division or function defends their own point of view thus the line,
“every subunit for itself” arises. A functional manager of a subunit may use the political tactic of
bringing in an outside expert to recommend fresh solutions. These “objective” recommendations
by the expert may then be used by the functional manager to support their position and protect
their division.

5. Building coalitions and alliances

In the objective of influencing the decision making process of an organization, different

functions may build coalitions and alliances among themselves. Coalitions of these powerful
functions are often built with the foundation on their common interests and goals. But since
members of functions may still develop different interests over time, functional managers in
alliances must actively maintain and communicate with their members.

ORGANIZATIONAL CONFLICT

According to DuBrin (2019), conflict refers to the opposition of persons or forces giving
rise to some tension, or to a disagreement between two or more parties who are
interdependent. A conflict occurs when two or more parties pursue mutually exclusive goals,
values, or events.

Organizational conflict often arises from organizational politics performed by managers.

It is evident that various researches often consider organizational conflict as unavoidable and
negative for the organization. This is because it results in poor performance and dysfunctional
members. But it is notable that there are some who can still use conflict in an advantageous
way by sensibly managing it and cautiously negotiating with those involved.

Sources of Organizational Conflict

There are various sources of conflict between individuals and groups in an organization.
Effective managers must understand these sources of conflict to either minimize, control or
resolve tensions. In this section, we will discuss some common sources or causes of conflict in
an organization.

Differentiation.​ This occurs when employees and tasks are divided into different groups to be
more effective in producing goods and services. For example, when organizing a seminar,
employees are split up into different committees with respective tasks corresponding to their
group. Such scenario causes conflict in an organization because subunits develop different
functional orientations and make status inconsistencies obvious.
● Differences in functional orientations - Functions or divisions have different views on
what and how things should be done to increase organizational performance. This may
become a source of conflict as each subunit has opposing views on their priorities in
work.
● Status inconsistencies - Functions who perceive that their activities are critically
essential in the company’s operations may believe that they have higher status than
other functions. As a result, they may attempt to attain their goals at the expense of other
functions further causing conflict among functions that lowers organizational
performance.

Task Relationships. Tasks in an organization may be interrelated and may affect one another
thus conflicts between employees and groups may happen. An employee may have troubles
handling overlapping authorities of functional managers while performing a task that relates their
respective functions. Another scenario is when tasks are interdependent - when the task of a
certain function is dependent on the task to be performed by another function. An example of
this is seen when the financial statements to be prepared by the accounting department is also
dependent on the reports to be passed by other departments.

Scarcity of Resources. ​Conflict happens when there are scarce resources. Budget allocation is
one of the most delicate topics in an organization. Conflict among departments occurs as they
would want to have more resources for achieving their objectives. Conflict among employees
happens because they argue on who should have higher salaries.

Communication. Proper communication is a vital key for the organization to have successful
operations and mishandling it may cause conflict among its members. If there is too little or too
much communication, there may be misunderstandings, poor coordination and misinterpretation
of intentions among employees.
Pondy’s Model of Organizational Conflict

A widely accepted illustration of organizational conflict was developed by Louis Pondy. It

consists of five sequential stages, as shown on Exhibit 10.3. As conflict is inevitable in an
organization, managers may use this model to analyze conflict and guide their decisions in
managing and resolving it.

Exhibit 10.3
Pondy’s Model of Organizational Conflict

Stage 1: Latent Conflict. ​At this stage, there is still no actual conflict. The possible conflict is
still concealed and may suddenly or gradually emerge between employees.

Stage 2: Perceived Conflict. ​The second stage begins when one party starts to notice that the
other party’s actions cause delays in achieving their goals. Simple arguments may arise since
both parties try to pinpoint the origin of the problem.

Stage 3: Felt Conflict. ​During this stage, parties involved begin to develop damaging and
aggressive feelings towards each other. Their cohesiveness and cooperation declines thus
negatively affects the organization’s performance.

Stage 4: Manifest Conflict. The involved parties, at this stage, begin to show much openly
aggressive behavior - some exchange heated arguments, some display physical violence, and
some deliberately exert less cooperation. Managers must intervene immediately and prevent
manifest conflict so that members may not be dysfunctional and avoid intense negative actions.
If the managers’ efforts are not enough to prevent this stage, then the parties involved will
undergo the last stage which is conflict aftermath.

Stage 5: Conflict Aftermath. ​Organizations have their own ways on how to resolve conflict
among members. They may have someone responsible for the conflict be fired, dysfunctional
groups disassembled or have the whole organization restructured. No matter which option they
use to resolve a conflict, an “aftermath” still remains among those who have experienced the
conflict. Their behaviors and approaches on future conflicts may be influenced by the
consequences from the previous conflicts.
Negotiation: Resolving Conflict in Organizations

Negotiation is the process by which parties with different preferences and interests
attempt to agree on a solution. (Hitt, et. al 2017). It is one of the best and effective ways in
resolving conflicts in organizations. In this process, groups or individuals in conflict meet
together to negotiate and bargain in an effort to resolve their differences. They come up with an
agreement where both parties perceive a win-win situation. The negotiation process has five
phases that are described below (see Exhibit 10.4).

Exhibit 10.4
Negotiation Process
(Adapted from Bauer, T. and Erdogan, B., An Introduction to Organizational Behavior v. 1.1)

1st Phase: Investigation. This is where managers gather information regarding the conflict
between the individuals or groups. It is the initial assessment of the situation and determining
goals for the negotiation process. Parties involved must know what they want to come up with
the right choices as the negotiation proceeds.

2nd Phase: Determining the BATNA. The term BATNA is an acronym for “best alternative to a
negotiated agreement”. The parties must identify their alternatives when negotiating a deal to
reject what is unfavorable and accept what is greatly beneficial. The party with the most
attractive BATNA often has the best negotiating position.

3rd Phase: Presentation. During this phase, all gathered information is properly assembled to
support one’s negotiating position. Just like in a job interview, an applicant presents all his/her
relevant information in a resume to appeal to the interviewer.

4th Phase: Bargaining. ​Here, each party discusses their negotiation goals and tries to meet in
an agreement. Concessions -giving up one option to receive something else in return- are also
seen in this phase. Such are not signs of weakness, rather, concessions suggest that both
parties are willing to coordinate and cooperate. It is also important for parties to raise questions
for clarifications and not just simply accepting statements to end a conversation.

5th Phase: Closure. ​This is where parties either have “sealed the deal” and agreed on the
negotiated terms, or one party has declined the negotiations and decided to walk away. Either
way, the negotiation process has come to an end and often, the conflict among parties have
been resolved.

Negotiation Strategies

1. Distributive Approach - ​The traditional fixed-pie approach in which negotiators

consider the situation as a pie that they have to distribute between them. Some
suggested actions from Hitt et al., (2017) are:
a. Convince that you’re committed to the outcome
b. Convince that the end will be expensive
c. Convince them that others favor your position
d. Convince them that you’re outcome is more fair and important than theirs
e. Distract them from concentrating

2. Interactive Approach ​- An approach to negotiation in which both parties look for ways
to integrate their goals under a larger umbrella. (Bauer and Erdogan, 2012). Below are
suggested actions from Hitt, et al.:
a. Make collaborative norms noticeable
b. Shield them from emotional distractions
c. Insist on fair decision-making criteria
d. Demonstrate flexibility
e. Show others that they are important to you
 End of Chapter Test

Matching Type. ​Write the corresponding letter of your answer on the space provided before
each question.

___1.​ ​__________ is a process in which one party

perceives that its interests are being opposed or negatively A.​ R
​ eferent Power

affected by another party.

B.​ F
​ ormal individual power
___2.​ ​Daniel Padilla is a highly admired and respected
employee at Kath Company and he is able to influence his
subordinate’s decisions to favor his position. What kind of C.​ M
​ anifest Conflict

power does Daniel possess?

D.​ B
​ argaining

___3.​ ​Policemen have the power to impose punishment on

E.​ C
​ onflict
those who are not abiding by the law. What kind of power
do they have?
F.​ O
​ rganizational Politics

___4.​ ​These involve activities by managers to obtain,

increase and use power. G.​ C
​ oercive Power

___5.​ ​What is the fourth stage in Pondy’s Model of

Organizational Conflict? H.​ I​ nformal Individual Power

___6.​ ​It is the 4​th​ phase in the negotiation process where I.​ N
​ egotiation
concessions are also present.

___7.​ ​It is the ability of an individual or group to influence J.​ P

​ ower

decisions and control resources

___8.​ ​It comes from the level of position or authority that

an employee holds on an organization’s hierarchy

___9.​ ​Powers originating from an individual’s

characteristics, like his or her personality, skills and
capabilities, which may influence others' interaction towards
them

___10.​ ​The process by which parties with different

preferences and interests attempt to agree on a solution
References

Bauer, T. and Erdogan, B., An Introduction to Organizational Behavior v. 1.1, (2012).

DuBrin, A. J. (2019). ​Fundamentals of Organizational Behavior.​ (6th ed.). Academic

Media Solutions

George, J. M., & Jones, G. R. (2012). ​Understanding and Managing Organizational

Behavior (​6th ed.). Pearson Education Inc.

Hitt, M. A., Miller, C. C., Colella, A., & Triana, M. (2017). ​Organizational Behavior ​(5th
ed.). Wiley Global Education
 Module 11
Creativity, Innovation, and Organizational Culture

Module Introduction

In this module, we will define creativity and discuss its process. And as we understand
its importance, we will identify the characteristics of creative people and associate such with
organizations. Creativity in organizations is essential to promote freshness and originality
among members especially when they tend to be limited with the organization’s culture. With
such, this module also discusses organizational culture and how it is managed

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Explain the importance of creativity and innovation in the context of organizational
behavior;
2. Define Organizational Culture; and
3. Explain the importance of a fit between individual values and organizational culture.

THE CREATIVE PROCESS

Creativity is the application of good ideas which generate innovative answers to
problems. In an organization, creativity can be one of the best assets since it can help produce
goods and services that make competitive advantages against competitors. The development of
products in creative ways is referred to as innovation. To further understand creativity, one must
appreciate the stages in the creative thinking process.

Stages of Creative Thinking Process

There are four stages in the creative process, as shown in Exhibit 11.1. These include:

Exhibit 11.1
Stages of Creative Thinking Process
1. Preparation Stage
This is when our conscious mind tries to comprehend information received.
2. Incubation Stage
At this stage, the conscious mind is attentive in a different aspect but below the level of
consciousness, the ideas are being persistently put together
3. Illumination
After combining all information, a solution suddenly appears - as if there’s a flash of light.
4. Verification
The solution presented is sensibly and cautiously tested.

Many psychologists acknowledge that understanding these stages may help realize and
appreciate one’s own creativity. Employees in an organization lack confidence in their own
sense of creativity thus we may say that creativity is often inhibited and undervalued. Hence,
organizations must strive to promote creativity among its members and use it in various
strategic ways.

Three Components of Creativity

Creativity sparks excitement as it enfolds new visions and opportunities in an

organization. But to understand how creativity works “its magic”, let us first recognize its three
components. Based on studies, creativity is at the intersection of three variables, namely:
expertise, motivation and creative thinking skills. (See Exhibit 11.2)

Exhibit 11.2
Three Components of Creativity
Expertise. It is a great foundation for creativity because an individual cannot make creative
solutions to a problem without having the technical, procedural and intellectual knowledge about
the given situation. An organization can increase their employees’ expertise by offering relevant
training, seminars, mentoring programs and the like.

Creative Thinking Skills. These skills involve personality traits common to creative individuals.
These characteristics will be further discussed in a section later on this module (Characteristics
of creative individuals). In selecting individuals to be part of an organization, characteristics that
help nurture creativity can be considered and included in the interviewer's “checklist”.

Motivation. This is when an individual is interested and eager to work on a certain task. A highly
motivated individual can easily develop creative thoughts than those who are not motivated at
all. Further, motivation can determine the individual’s effort to engage with his/her expertise and
creative thinking skills.

Characteristics of Creative People

According to DuBrin (2019), creative workers are different in many ways from their less
creative counterparts. The characteristics of creative people, including creative leaders, can be
grouped into three key areas: knowledge, intellectual abilities, and personality.

Knowledge.​ Creative people should be knowledgeable and have vast information since
creativity sparks when two or more ideas based from facts and observations are combined.

Intellectual Abilities. ​Creative people are bright individuals who have youthful curiosity and think
differently. Often, they have a good sense of humor and a playful intelligence. Andrew DuBrin
(2019) stated that, “creativity can come from both fluid intelligence and crystallized intelligence”.
Fluid intelligence depends on a person’s raw processing ability - how fast and accurate an
individual processes information to solve a problem. However, this intelligence begins to decline
by age 30, probably because this is when the nerves start to transmit information slowly.
Meanwhile, crystallized intelligence is gathered knowledge that increases as we age or
experience things.

Personality. C​ reative self-efficacy is a special kind of self-confidence that creative people

possess. It is a belief that an individual can be creative in a role he or she has. In accordance to
this, creative people are open to the idea of isolation for them to generate better ideas and
perform their work roles effectively.
Characteristics of Creative Organizations

Organizations can highly benefit from understanding the characteristics of creative

people. This is because they may use and spread the same characteristics to the whole
organization, thus creating a creative organization. Explained below are some common
characteristics of creative organizations.

1. They can balance planning with improvising

Creative organizations understand that there are contingencies when operating their
businesses. Sometimes, things do not go well as planned but they balance it through
improvising. There are even times when improvised activities lead to better results than what
should have been.

2. They embrace the unknown

Unlike traditional organizations, creative organizations are not afraid of the “unknown”.
They understand that the unknown can be used as a resource for the organization to create
new products or services.

3. They are have limited organizational structures

Creative organizations believe that having few is better. They promote that having limited
organizational structures guarantees greater flexibility and cooperation in members. Also, the
chain of command among members has a more stable flow from top to bottom.

4. They productively use diversity

Members in organizations may be highly diversified. And creative organizations use such
diversity in productive ways. They acknowledge each individual’s difference among others and
nurture it to contribute in creating something new.

5. They value fun and excitement in the workplace

Creative organizations cherish fun and exciting activities because they accept that most
dynamic form of creativity arises from humor. They provide a playful and inviting environment for
their workforce to stimulate motivation and innovation.

Critical Thinking

It is a manner of thinking that objectively analyzes and evaluates gathered information to

come up with relevant results. It involves logic, curiosity and skepticism to have a distinction
between important and irrelevant information. Often, in organizations, managers perform critical
thinking as their subordinates are only responsible for administrative tasks. However, even a
modest employee may perform critical thinking – that’s why they are usually promoted into
higher positions. In the creative process, some argue on the relevance of critical thinking. Some
see it inappropriate since it is mostly based on available facts, thus it may define limitations on
one’s creativity. But some still see it positively because having limitations encourage focus and
unity.

CREATIVITY AND INNOVATION IN ORGANIZATIONS

Creativity and innovations are vital factors that set organizations apart. These create
opportunities for organizations to excel in their respective businesses, and adapt to or even
generate new demands from the public. In this section, we will discuss how innovation, as a
result of creativity, is developed and explore its usefulness or harmfulness in an organization.

Process of Innovation

According to Mariello (2007), there are five stages of successful innovation. These
stages are discussed below and shown on Exhibit 11.2.

Stage 1: Idea Generation and Mobilization. Here is where innovators share their new ideas with
each other. There should be a balance between playfulness and competitiveness during this
stage. New ideas generated are mobilized to logical locations since some innovators are not
actual marketers, and lack the understanding of practicability.

Stage 2: Advocacy and Screening. At this stage, the evaluation of the idea’s pros and cons
happens. It is advisable to have a transparent and standardized way of evaluation so that
employees can be more comfortable in sharing their ideas, and managers will not impulsively
reject those that do not favor them.

Stage 3: Experimentation. A​ n idea’s sustainability is tested at this stage. Possible consumers

and the innovation’s usability for that consumer are identified. Sometimes, there are ideas
considered inappropriate for that particular time. Yet such discoveries should not be treated as
failures because there may come a time when it will become useful and highly on demand.

Stage 4: Commercialization.​ During this stage, the organization may conduct surveys from its
consumers to know their feedback regarding the new innovation. Upon receiving feedback if the
innovation provides a solution to their consumers’ problems, they may start analyzing cost of
resources for the said innovation.

Stage 5: Diffusion and Implementation. The final stage of the process where the organization
promotes the innovation’s company wide acceptance, and creates structure, identifies
maintenance and allocates resources for its implementation.
 Exhibit 11.2
Process of Innovation

Balancing Exploration and Exploitation

Peppers (2017) explained exploration and exploitation in the business context in his
online published article, “Exploration vs. Exploitation: What’s the Right Balance for a Business?”
According to him, the exploration-exploitation trade-off, observed in ants and honeybees, has
important lessons for businesses, too. An organization is often more focused on its short-term
survival as it prefers to exploit its known sources of income. However, organizations who are
more open to explore new information and adapt to new ideas tend to persevere and survive in
the long run.

Thus the balance between exploitation and exploration can be considered as tantamount
to the business’s balance of operations and innovations. Peppers (2017) said that, “innovation
requires creativity and critical thinking, and exploring the world for additional possibilities”. But
such exploration requires openness to errors. This is one of the dilemmas of organizations with
efficient business operations. Innovation is most likely avoided by organizations with flawless
performance. Then again, exploiting current resources is insufficient for the business to survive.
Remember that products and services currently available in the market have their respective
diminishing utilities and consumers eventually look for new offerings. Thus, exploration and
exploitation are essential functions to a business’s survival. But they can only be strategically
efficient and effective when they are working simultaneously, despite all the conflicts that the
management may experience.

ORGANIZATIONAL CULTURE

Definition of Organizational Culture

Organizational culture is the set of shared values, beliefs, and norms that influences
worker’s behavior towards others. These values and beliefs are often embodied by members as
they stay longer in the organization. They may use such in performing their tasks and dealing
with other stakeholders. There are times when a strongly developed organizational culture
becomes very influential and distinct from others. Due to this, the management must strive to
maintain a positive kind of organizational culture to further support its operations in achieving
goals.

Spreading Organizational Culture to its Members

One of the ways of extending an organization’s culture to its members is through

socialization. Socialization is the process of understanding the values and behaviors presented
by current members that is essential for adapting into an organization. Usually this occurs
during team buildings, meetings and other activities that promote extensive interactions.

Another common option used to spread culture is through the teachings of leaders. As
employees observe how their leaders behave, how they implement managerial tasks, and what
they prioritize, they gain certain concepts of organizational culture. For instance, if a colleague
was praised by their manager for attending charitable works of the organization, an employee
may perceive that the organizational culture gives value to helping its community.

The stories and language of an organization are also important media for communicating
culture. Stories, may it be fact or fiction, about organizational heroes give essential clues about
cultural values and norms. These can reveal the kinds of behaviors that the organization takes
positively or negatively. Studying the stories and language can expose the values that guide
behavior. Because language is the principal medium of communication in organizations, the
characteristic names or phrases a company uses to frame and describe events provide
important clues about norms and values. Many organizations use technical languages to
facilitate cooperation between their employees. Jargon, the shorthand words and phrases used
to save time, and sometimes lives, is developed by specialized work groups in the military,
sports teams, hospitals, and anywhere else it is needed. The concept of organizational
language encompasses not only spoken language but also how people dress, the offices they
occupy, the company cars they drive, and how they formally address one another. At Google,
Apple, and Microsoft, casual dress is norm, and today many large companies that emphasize
conservative business-type clothing such as Ford and IBM also encourage “business casual”
clothing and promote “dress-down” days in which employees wear the clothes that make them
feel the most comfortable or relaxed. (George and Jones, 2012)

Managing Organizational Culture

According to George and Jones, there are various ways to create an ethical
organizational culture that promotes the resistance towards illegal actions to gain personal
interests. Below are some useful ways discussed in their book.

Incentives and Punishments.​ An organization can encourage people to act ethically by setting
standard incentives for ethical behavior and punishments to those who behave unethically. A
company’s top managers have the primary role in proactively establishing the company’s ethical
position. Managers are one of the first to create an ethical culture by demonstrating their
commitment and promoting moral values through their own ways.

Fair Organizational Structure.​ Organizations can design a fair organizational structure where
people who are unethically behaving have less incentives. Members tend to behave in a socially
responsible way when they know that even those with higher position or greater authority are
susceptible to punishments if they behave unethically.

Just and equitable human resource procedures.​ An organization can develop just and equitable
human resource procedures in managing different employees. Such shows members that they
can expect to be treated in an ethical way, that they are working for an ethical organization, and
that they should behave in the same manner.

Create an ethical committee with ethics officers.​ There are times when subordinates feel the
need to report unethical behavior but they struggle on to whom they should raise this concern.
Thus, it is advisable for organizations to create an ethical committee where subordinates can
voice out their concerns to an ethics officer. An ethics officer is a manager responsible for
teaching employees about ethical conduct and investigating claims of unethical behavior. Ethics
committees within the organization can then make formal judgments depending on the officer’s
findings. Having this committee creates an avenue for employees to air their ethical concerns
thus prevent whistle-blowing – a situation when an employee informs an outside person or
organization about an organization’s illegal or unethical behaviors (frequently on the part of its
top managers).

Have a strong board of directors.​ An organization can create a strong board of directors from
outside the company with no ties to top management. The directors should oversee the actions
of top managers, and, if they see any sign of wrongdoing or mismanagement, “nip it in the bud.”
In the 2000s, there have been many calls to strengthen the power of boards to scrutinize the
decisions made by managers.

To conclude, there are various useful ways that can be taken to help strengthen the
commitment of managers and employees to behave ethically in an organization. When ethical
values are internalized by employees, a strong adaptive culture develops, which helps
organizations achieve their goals.
Virtual inclusivity: How to Establish an Inclusive Culture while Remote Working
Source: Virtual inclusivity: How to establish an inclusive culture while remote working. (2020,
June 23). HRZone. Retrieved August 3, 2020, from
https://www.hrzone.com/lead/culture/virtual-inclusivity-how-to-establish-an-inclusive-culture-whil
e-remote-working

In the past, so much of company culture was communicated through the spaces we inhabited,
but now with more people working from home, how can we foster a diverse and inclusive culture
and encourage our people to live these values?

Necessity was always credited as
the mother of invention, but crisis is
a powerful catalyst too.
Black Lives Matter has amplified
employees’ calls for action on
racism, and organisations are keen
to respond swiftly and appropriately
– but they’re not always sure how
to get it ‘right’. When you factor in
lockdown, the challenge gets
harder still. The current restrictions
mean it’s more difficult to get your
people together to communicate a
single broadcast message, visibility
of diverse people is sometimes
harder to achieve across digital
channels, and meaningful
conversation about difficult topics is
usually done better face to face.
___________________________
“Employee feedback may be
watered down or sanitised, but
black people’s descriptions of overt
and covert racism have been
hugely impactful in educating
others about the reality of race in
our society.”
____________________________
There are opportunities to change
culture for the better, however,
even during these tricky times.
Here are just some of the ways you
can foster a more inclusive culture
with workers who are remote and
working virtually.
Listen carefully and regularly
There’s an old joke that the Queen
thinks the world smells of fresh
paint because spaces are always
spruced up before her visits.
Leaders in large organisations are
often shown things through a
similarly distorted lens. Employee
feedback may be watered down or
sanitised, but black people’s
descriptions of overt and covert
racism have been hugely impactful
in educating others about the
reality of race in our society. They
don’t make for comfortable listening
but they evoke deep empathy that
makes it very hard not to take
action. 

 of your employee resources
As an IC or HR professional, it’s
your role to make sure leaders and
decision-makers hear the truth. No
one knows the skeletons in your
closet better than your employees,
so to ignore their voices and their
experiences is to give permission
for any poor behaviour to continue
unchecked.
Use the channels you have to
gather as many real-life stories as
you can – from comments on
Yammer posts, to polls on your
intranet, pulse surveys over email
to drop-in feedback sessions. The
digital world gives you access to
feedback like never before.
Pass the mic
Your leaders are influential role
models in your organisation –
people look to them to set the tone
and, in doing so, they are ultimately
responsible for your culture.
Unfortunately, diverse
representation at senior leader
level is still low. As influential as
they are, white leaders are not the
voices people necessarily want to
hear right now. So how can you
turn up the volume on diverse
voices instead?
One technique is to partner
members of your board with chairs
groups. As a senior sponsor, they
can share their platform by
co-authoring blogs or co-hosting
virtual panel discussions. This is a
fantastic learning opportunity for
both individuals too, with mentoring
and learning flowing in both
directions.
Another technique is to establish a
‘shadow board’ – a diverse panel of
employees empowered to review
and give feedback on projects,
messages and products before
they are presented to the board. It’s
a way to put diversity of thought
into action.
Cultural markers
For office-based workers, culture is
an amalgamation of the things they
see and hear around them every
day. Remote workers perceive
culture to be the big-ticket
decisions and actions taken by the
organisation over the course of
their career there. So right now the
design of your canteen or the
swanky gym facilities aren’t
contributing anything to your
culture. Without social spaces in
which to mingle and meet, people
are spending more time with the
same people in the same virtual
spaces.
It’s therefore important to introduce
cultural markers and moments to
indicate how inclusive your culture
is.
Markers might include:
● Adding your pronouns to
your screen name in team
meetings.
● Declaring yourself an ally
to diverse individuals
through your email footer
or profile picture.
● Using an email signature
containing a phrase like:
‘I’m working out of usual
hours because it suits me,
but I don’t expect you to
respond until your usual
working hours’.
● Continuing to wear a
lanyard or badge – visible
on camera – that shows
the causes you support.
Moments might include:
● Virtual screenings – where
people watch a TED Talk
or hear a guest speak on
a topic related to diversity,
then attend a virtual
discussion forum where
they can share opinions or
ask questions in a safe
space.
● Monthly coffee mornings –
where a leader hosts an
event with a cross-section
of between 10 and 20
people who may not have
met before. Everyone
answers the same
question and gets to know
people in new ways.
Questions might include:
‘what have you learned
about yourself during
lockdown’ or ‘what do you
consider to be your
superpower, and how did
you gain it?’
Nobody gets left behind
As the old saying goes, ‘diversity is
getting an invite to the party,
inclusivity is being asked to dance’.
The parties we’re getting invited to
these days are happening on
Teams, Zoom and BlueJeans, but
that doesn’t mean we can’t make
sure everyone has the chance to
dance.
These ideas are the tip of the
inclusion iceberg. Whatever you
do, the most important message to
communicate is that no one should
be a silent bystander. Checking in
with your colleagues and calling out
negative behaviour if it arises is
essential. It’s only by reaching out
and speaking up that enough
individuals can come together to
change a culture
End of Chapter Test

Case Study

Source: George, J. M., & Jones, G. R. (2012). Understanding and Managing Organizational Behavior (6th ed.).
Pearson Education Inc.

In today’s global economy, more and more kinds of jobs are being outsourced to
countries with lower labor costs. Outsourcing has moved beyond the manufacture of products to
skilled, technical, knowledge-based work with countries like China, India, Russia, the Czech
Republic, and Hungary increasing their presence as a source of skilled, relatively low-cost labor.
Thus, jobs in engineering, accounting, software design, customer service, information
technology, and other areas are also being outsourced. To remain competitive, a growing
number of companies and their managers are realizing that improving efficiency, cutting costs,
and keeping abreast of the latest technological developments are not enough. Rather, what is
essential is continuous learning through creativity that enables organizations to create new
concepts, products, and services and reinvent old ones.

A key ingredient in this continuous learning is learning from consumers and

customers—watching them as they go about their daily routines, imagining how they experience
goods and services, and learning what appeals to them even though they themselves might not
be able to articulate it.98 This kind of continuous learning entails experimentation—trying out
new things and seeing how people react to them. And when they react well, an organization has
the opportunity to create a whole new market for itself. In creating new markets, workers also
continuously learn from each other, whether an engineer works alongside a factory worker to
solve a technical problem in the manufacture of a new product, or a product designer and a
marketing expert share insights.

There are countless examples of companies that have successfully reinvented old
products, created new concepts, or changed the nature of the consumer experience. Just as
Cirque du Soleil has transformed the circus experience through its breathtaking performances,
original music, and outlandish costumes, so too has Starbuck’s reinvented the coffee shop and
Apple the electronics store.

Interestingly enough, large corporations like Motorola, General Electric, and Procter &
Gamble are also recognizing the importance of continuous learning through creativity and
seeking to promote it in numerous ways. In order to facilitate continuous learning and creativity,
some organizations are creating separate workspaces called innovation labs to bring people
from different backgrounds together to learn from each other and create.

At Fisher-Price, the preschool toy unit of Mattel, new products are developed in an
innovation lab called the Cave, a separate space at company headquarters in East Aurora, New
York. In developing new products, employees continuously learn from going out and observing
how families and parents interact with their children and then coming back and learning from
each other to develop new products. This is how the Laugh and Learn, Learning Home line of
toys was developed—by watching families, employees learned that parents spend a lot of time
teaching very young children about ordinary household objects like doorbells, lights, and
drawers. Engineers, marketers, and product designers then learned from each other in the Cave
to develop a model home made of plastic that infants can crawl through and experiment in while
seeing the alphabet, making noises, and playing with numbers.

At Steelcase, the office furniture company, the Work Space Future Explorations unit,
conducts research for new products and markets and includes industrial designers, business
strategists, and anthropologists. Members of the unit observe actual and potential customers as
they go about their work activities so as to learn how new products might better serve their
needs. Nuture, a Steelcase company that concentrates on health care, developed a new
product line of modular furniture for oncology units called Sonata based on research conducted
by a WorkSpace health care team on cancer patients and their treatments. The team spent
months talking with and photographing cancer patients and their doctors in oncology units in
nine hospitals. Themes that arose from their research played an important role in the design of
the line such as the need for privacy and taking into account the important supportive role that a
patient’s family plays in their treatment.

Some organizations engage in continuous learning through rapid experimentation.

Google runs between 50 and 200 search experiments at any point in time and gets rapid
feedback to continuously learn what users want. For example, Google asked some of its users
how many search results they would prefer to see on a single page and they indicated that they
would like to see a lot more than they currently did. Google then increased the number of
search results to 30 on a single screen and found that traffic on its site actually went down. It
turns out that tripling the search results on a single screen made it take slightly longer to load
the page and also made it more likely that users would click on a link that was not helpful. Thus,
Google reverted back to 10 search results per screen.

Wal-Mart runs in-store experiments to determine how signs, product placements, and
displays influence customer behavior. By comparing sales across stores, managers at Wal-Mart
learn which kinds of signs, placements, and displays result in high sales. Within stores,
managers can also experiment to meet the needs of their particular customers.

Top managers at companies large and small are increasingly recognizing that
continuous learning through creativity is key to remaining competitive in today’s global
economy. As Jeffrey Immelt, CEO of General Electric, said, “Imaginative leaders are the ones
who have the courage to fund new ideas, lead teams to discover better ideas, and lead people
to take more educated risks.” Embracing continuous learning through creativity, and learning
from others and experimentation, are enabling companies in a variety of industries to meet the
challenges of the global economy in new ways.
Questions for Discussion

1. Why is continuous learning through creativity important for innovation?

2. Why is it important to actually observe consumers and customers to develop new products?
3. What are the advantages of running experiments?
4. How can observations and experiments help organizations develop new products and
services that meet customers’ needs?

References:

DuBrin, A. J. (2019). ​Fundamentals of Organizational Behavior.​ (6th ed.). Academic

Media Solutions

George, J. M., & Jones, G. R. (2012). ​Understanding and Managing Organizational

Behavior (​6th ed.). Pearson Education Inc.

Mariello, A., (2007, April 1). ​The Five Stages of Successful Innovation. ​MIT Sloan
Management Review. Retrieved August 3, 2020 from,
https://sloanreview.mit.edu/article/the-five-stages-of-successful-innovation/​ .

Peppers, D. (2017, August 8). ​Exploration VS. Exploitation: What’s the Right Balance for
a Business?​. Linkedin. Retrieved August 3, 2020 from,
https://www.linkedin.com/pulse/exploration-vs-exploitation-whats-right-balance-business-don-pe
ppers​.
 Module 12
Organizational Change and Development

Module Introduction
Change is certain and constant. In the organizational context, there are numerous
reasons why change needs to be addressed. There are also many types of change the
organization may choose from. In this chapter, we finalize the study of organizational behavior
through investigating the nature and process of organizational change. We identify forces for
and impediments to change, and study various types of changes that organizations experience.
Basic concepts, processes and interventions in terms of organizational development are also
present in this chapter. Finally, by the end of this discussion, you will appreciate the importance
of efficiently managing organizational change and development as part of organizational
behavior.

Topic Outcomes
After reading and understanding this module, students will be able to:
1. Discuss the impact of organizational change on individuals and the workplace; and
2. Discuss the basic organizational development concepts, process and interventions

DEFINITION OF ORGANIZATIONAL CHANGE

Organizational change is the movement of an organization away from its current state
and toward some desired future state to increase its effectiveness (George and Jones, 2012).
Organizations must adapt to change since it is the only constant thing in this world.The
organization's survival and effectiveness in the long run depends on its adaptability to change.

FORCES FOR AND RESISTANCE TO ORGANIZATIONAL CHANGE

Forces for Change

The following are forces that cause organizational change. Managers must take
immediate actions in responding to these forces to prevent being left out by competitors and
have poor market performance.

Competitive Forces. Competition is a force for change because it pushes organizations to

effectively improve themselves and create competitive advantage over competitors. One way of
creating competitive advantage is through innovation. An organization may adopt the latest
technologies in order to create superior products.

Economic, Political and Global Forces​. The effects of global economic and political forces on an
organization’s activities have great impact. The appealing prices from overseas competitors, the
technological advancements, and the government policies abroad serve as organizational
threats in the global marketplace. These economic, political and global forces challenge
organizations to be flexible and creative with their ways to meet the demands of their domestic
and international consumers.

Demographic and Social Forces. The diverse demographic characteristics of the workforce have
motivated organizations to expand their policies to cover all emerging social issues. Managers
have learned to promote equality among members by considering all options for a healthier
work-life balance. For instance, as more women enter the workforce, companies changed their
policies specifically to accommodate them with flexible work schedules, anti-harassment
regulations and childcare facilities.

Ethical Forces. While organizations try to adapt with all the previously mentioned forces, they
must still keep in mind to do so in an ethical manner. Many companies have considered having
an ethics officer, an employee responsible for educating others about the organization's
regulations on ethics and whom employees can approach when they have ethical dilemmas or
other ethical concerns in the organization. It is also evident that most organizations have
changed their standard operating procedures with regards to unethical rewards systems. They
have done such to eliminate unethical or illegal practices and protect the welfare of all members
of the organization.

Hindrances to Change

Though there are numerous reasons for the organization to embrace change, there are
still some common impediments that organizations find difficult to surpass. These hindrances
are found at organizational, group ,and individual levels.

Organizational-level Resistance to Change

Power and Conflict. Change is usually beneficial to only a few people in an organization. These
people, who are members of functions or divisions, often undergo power struggles and
organizational conflict. When these happen, there may be delays in decision making and other
essential business operations. For example, if the purchasing department suggests to change
their supplier to reduce their input costs, the manufacturing department may resist change as
they would believe that the quality of their products would be sacrificed and production costs
may increase if such action is to be taken. The conflict between these departments may slow
down the process of change and may even prevent it.

Differences in Functional Orientations. The various functions or divisions in an organization

have their own orientations or perspective in identifying and solving problems. These
differences in functional orientations or goals serve as barriers to change as more time and
effort must be given to come to an agreement.

Mechanistic Structures. This kind of organizational structure is composed of complex and

organized hierarchies, centralized decision making, and standardized behavior among
employees. Though this is ideal, organizations with mechanistic structure are more resistant to
change. Their employees often do not have initiative to adjust their behaviors and adapt to new
conditions because they are expected to behave in predictable ways

Organizational Culture. When organizational change affects the organizational culture followed
by the employees, they are forced to question the values and norms they believed in. Thus,
resistance is most likely to follow. Many organizations still develop conservative values to
support their status quo. Such make managers hesitant to look for new or better opportunities or
to be more effective. Hence, if their techniques and products become obsolete, they are most
likely expected to fail.

Group-level Resistance to Change

Group Norms. Over time, groups may develop strong informal norms as members interact with
each other. Typically, members of such groups fear change because it alters tasks and role
relationships. Further, the group may need to have a new set of norms to meet the demanded
outputs of altered tasks.

Group Cohesiveness. Too much group cohesiveness may reduce a group’s overall performance
because it can make members neglect opportunities to change and adapt. As some members of
a highly cohesive group attempt to adapt to change, most members may still strongly resist and
instead, they may unite to protect their interests at the expense of other groups.

Groupthink and Escalation of Commitment. In Chapter 9, we have discussed the negative

effects of groupthink and escalation of commitment worsens such conditions. This situation is
seen when members, even after realizing, still continue wrong actions, regardless of its
consequences. It is a great challenge to convince these groups experiencing such, to embrace
change.

Individual-level Resistance to Change

Uncertainty and Insecurity. C

​ hange is risky. Risk is associated with uncertainty and insecurity.
Feeling uncertain and insecure of what may happen makes people resist change. An
employee’s resistance to change due to such feelings may result in an increase in absenteeism
and turnover. Moreover, they may become uncooperative, try to cause delays, or inertly resist it.

Selective Perception and Retention. It is a common tendency for people to be selective with the
information that they perceive to be important. Usually, members of an organization would only
retain important information consistent with their existing views. And when change occurs,
employees prefer to focus on its personal impact on them or to their respective functions or
divisions. If they perceive that such change only gives a few benefits for them, they usually
reject it.

Habit. Habit is a regular practice that a person is accustomed to do. This is considered to be
another impediment to change because it is very difficult to break habits, especially the bad
ones. Researches also suggest that people tend to go back to their habits even after they
experienced few changes.

FORCES FOR CHANGE RESISTANCE TO CHANGE

Competitive Forces Organizational-level:

Economic, Political and Global Forces Power and Conflict

Demographic and Social Forces Differences in Functional Orientation

Ethical Forces Mechanistic Structure

Organizational Culture

Group-level:

Group Norms

Group Cohesiveness

Groupthink and Escalation of Commitment

Individual-level:

Uncertainty and Insecurity

Selective Perception and Retention

Habit

Exhibit 12.1
Forces for and Resistance to Change

MANAGING ORGANIZATIONAL CHANGE (George 546, Mullins 795)

According to L. Mullins (2010), the successful management of change is clearly essential

for continued economic performance and competitiveness. Innovations and creative ideas
should not be considered as threats by employees. Rather, they should identify which gives
better opportunities for the organization to create competitive advantages. Mullins (2010) also
identified some actions to be taken to effectively manage change in the organization. These are
as follows:

1. Create a sense of urgency among relevant people, whatever the nature or size of the
organization.
 2. Build a guiding team with the credibility, skills, connections, reputations and formal
authority to provide change leadership.
3. Create visions which are sensible, clear and uplifting, and sets of strategies.
4. Communicate the vision and strategy in order to induce understanding and commitment.
5. Empower action and remove obstacles that stop people acting on the vision.
6. Produce short-term wins that help to provide credibility, resources and momentum to the
overall effort.
7. Don’t let up but maintain the momentum, consolidate early changes and create wave
after wave of change.
8. Make change stick by nurturing a new culture, and developing group norms of behavior
and shared values.

Source: Mullins, L. J. (2010). ​Management and Organisational Behaviour (​ 9th ed.). Pearson Higher Ed.

Another possible way of effectively managing change in an organization is discussed by

J. George and G. Jones (2012) in their book entitled, “Understanding and Managing
Organizational Behavior”. They have identified that conducting an action research may help
organizations to identify the kind of change they would implement and the appropriate ways on
how they can manage such change in the whole organization.

The associated techniques and practices of action research assist managers liberate an
organization that has been at the same dull state over the years. These can also help move the
organization to a new desired position, and cherish the success from the change they have
undergone. Exhibit 12.2 shows the main steps of an action research.

Exhibit 12.2
Steps of Action Research

1. Diagnosis of the organization

- This is the first step that involves recognizing the problem/s to be solved and
acknowledging that there should be some changes to be made.

2. Determining the desired future state

- Here is where the managers identify the state that the organization needs to be and
it also involves proper and careful consideration of alternative actions

3. Implementing action
 - After determining the desired state and the best alternative ways, the third step
involves the implementation of the plan. The organization must first identify the
impediments to change to anticipate them. Next is the organization may opt to have
external or internal change agents that may perform a top-down change (approach
implemented by high level managers to their subordinates), or bottom-up change
(change implemented by low level employees that gradually rises to the higher level
management).

4. Evaluating the action

- This step is where the managers assess the level of success from the actions
implemented through developed measures or criteria.

5. Institutionalizing action research

- If there are no other revisions to the plan and upon evaluation, the implemented plan
was successful, the organization may institutionalize the action research. Since
organizational change is a difficult matter to go through, the organization may reward
their employees for successfully establishing the change that was required to attain
their desired state. This will motivate them to be more open to other opportunities if
needed in the future.

ORGANIZATIONAL DEVELOPMENT: DEFINITION AND PURPOSE

Organization development (OD) is a complex strategy composed of a series of

techniques and methods for managers to use in action research programs so that their
organization can better adapt to various changes in its environment. OD aims to improve the
effectiveness of the organization and allow employees to reach their full potentials and goals.
Many OD models and interventions have been developed to aid managers in performing action
research.

Organizational Development Model

Hitt, M., Miller, C., et al., (2017) suggested that there are four fundamental steps in a
basic organizational development model. These steps are explained below and are shown on
Exhibit 12.3.
 Exhibit 12.3
Basic Organization Development Model
(Adapted from Hitt, M. A., Miller, C. et al., (2017). Organizational Behavior (5th ed.). Wiley Global Education)

The first fundamental step in a basic organization development model is the diagnosis of
the situation. At this stage, managers keenly observe the current operations of the organization
and identify the problems or other issues that need improvement. Thorough investigations must
be made so that the root causes will be recognized and be used as the basis for the next step,
which is the introduction of interventions. During the second step, the managers propose plans
on how to approach the problem and pinpoint other key personnels to be involved in the group
implementation of said plans. There may be various interventions presented but it is the group’s
responsibility to choose the best and appropriate plan of actions to be taken. And as they
implement such, they should also monitor their progress - the third step. It is essential to take
note of the group’s progress may it be slow or adequate enough, and keep record of their
mistakes or beneficial techniques. Feedback is the final step in this model. At this final stage,
managers gather feedback from those implementing the change and the whole organization.
Feedback is important to distinguish which actions are effective and others that need
improvement. If there are some parts that must be changed, or their plan failed, the organization
may start from the beginning and try again. This is a continuous process for those who seek to
have effectiveness and efficiency.
Organization Development Interventions

Interventions are planned actions to help an organization to increase its effectiveness.

These have the intention to interrupt the present status quo in an organization. According to Hitt,
M., Miller, C., et al., (2017), the organization development may choose between relationship
techniques or structural techniques concerning OD interventions. Exhibit 12.4 illustrates their
suggested techniques for organization development interventions.

Relationship Techniques
1. T-Group Training. This is an approach where a group, composed of ten to fifteen
members, increases their awareness about themselves and others through interactions.
This technique allows the members to develop open and proper communication with
others.
2. Teambuilding.​ It is a technique where members tend to work together in an effective
manner to accomplish activities that promote cooperation and increase motivation.
3. Survey Feedback.​ It is a process of providing honest feedback to aid managers in
solving problems or issues that the organization is facing.

Structural Techniques
1. Job Redesign.​ This refers to OD interventions involving the creation of jobs and various
work groups to improve productivity and make high levels of employee satisfaction.
2. Management by Objectives.​ This technique refers to the joint efforts of the managers
and employees in setting and achieving goals. It provides an avenue for coaching and
counselling of managers to their subordinates and it encourages employees to have an
increased participation in the decision making process.
3. Supplemental Organizational Processes​. These are processes where ongoing meetings
among employees and/or managers are conducted to identify and solve important
issues.

Exhibit 12.4
Organization Development Interventions
(Adapted from Hitt, M. A., Miller, C. et al., (2017). Organizational Behavior (5th ed.). Wiley Global Education)
End of Chapter Test
CROSSWORD PUZZLE: ​Identify the word described on the statement below. Place your
answers in the corresponding boxes in the crossword puzzle.

ACROSS
1. An approach where a group, composed of ten to fifteen members, increases their
awareness about themselves and others through interactions
2. These are planned actions to help an organization to increase its effectiveness with
intentions to interrupt status quo
3. This refers to OD interventions involving the creation of jobs and various work groups to
improve productivity and make high levels of employee satisfaction.
DOWN
1. The movement of an organization away from its current state and toward some desired
future state to increase its effectiveness
2. A regular practice that a person is accustomed to do that is one of the impediments to
change
3. The final step in the basic organization development model
4. It is a technique where members tend to work together in an effective manner to
accomplish activities that promote cooperation and increase motivation.

IDENTIFICATION. ​Write ​FF​ if the words below pertain to “Forces For Change”. Otherwise, write
RT​ for factors that are under “Resistance To Change”.

______ 1.​ P
​ ower and Conflict

______ 2.​ C
​ ompetition

______ 3.​ E
​ thical Issues

______ 4.​ M
​ echanistic Structure

______ 5.​ O
​ rganizational Culture

______ 6.​ I​ nsecurity

______ 7.​ D
​ emographic Issues

______ 8.​ G
​ roup Cohesiveness

References:

George, J. M., & Jones, G. R. (2012). Understanding and Managing Organizational Behavior
(6th ed.). Pearson Education Inc.

Hitt, M. A., Miller, C. C., Colella, A., & Triana, M. (2017). Organizational Behavior (5th ed.).
Wiley Global Education

Mullins, L. J. (2010). Management and Organisational Behaviour (9th ed.). Pearson Higher Ed.