OBL - Alex 1 1 1 - Merged 1

GOUMOTSIOU ALEXANDRA : OBL
We will find something like that. Where:
- The inputs represent the independent variables. So, inputs are factors that exist in advance
of the employment relationships. There are different levels: individual, group and
organizational.
- The processes can be seen as mediators because processes are action that individuals,
group and organization engage in as a result of inputs and that lead to certain outcomes.
It explains how to regulate emotions. Moreover, it can be seen that diversity can be a
source of conflict if it is bad managed.
- Finally, outcomes are dependent variables. Outcomes are the key variables that we want
to explain or predict. They are affected by some other variables.
We have seen that there are 3 categories of variables: inputs, processes and outputs. Another
kind of variables account in our case: the contingency variables.
Situational factors are variables that moderate the relationship between the independent and
dependent variables. We have the function:
B=f (P.E)
In this function, the behaviour is a function of the individual and the environment. The function
is made by Kurt Lewin. Indeed, if the environment does not correspond with our personality it
will decrease our productivity because we cannot express our talent optimally. In this kind of
situation, the structure bloc us to express our knowledges.
Make the main relationship between 2

variables change, the relationship may
hold for one condition but not another.
See the example:
3
2. Why is it important?
Behaviour is generally predictable. The aim is to predict how people will react in some
situation. It is what we call “Evidence-Based Management” EBM. It argues for managers to
make decision on evidence. Systematic study and EBM add to intuition or “get the feeling”,
“why I do what I do”… If we make all decisions with intuitions or gut instinct we are likely
working with incomplete information.
Unfortunately, there is a gap between OB research and the real-world management. Indeed,
½ of managers believe that organizational behaviour is important in them, ¼ of them believe
it should be implemented but only 1/8 of managers really implement organizational
behavioural concepts and researches.
The different disciplines that contribute to organizational behaviour are psychology, social,
statistics, marketing, sociology,anthopology… Indeed, organizational behaviour is an applied
behavioural science that is built upon contributions from many behavioural disciplines.
What managers do?
A manager is someone who gets things done through other people in organizations. He most
studied functions : planning, organizing, leading and controlling.
He should have 3 kind of skills:
• Technical skills: that represent the ability to apply specialized knowledge or expertise.
• Human skills which is the ability to work with people, to understand them and to motivate
others.
• Conceptual skills: it is the mental ability to analyse and diagnose complex situations.
In 1998, Luthans found that managers engage in four managerial activities:
1- Traditional management,
2- Communication,
3- Human resource management,
4- Networking.
4
3. Challenges for managers in applying organizational behaviour concepts:

When we think to organizational behaviour challenge, we have in mind: equality between men
and women, the globalization because few people work where there are born, the
automatization, the technology… To deal with the competition we should select the best
employees, consumers and outsourcers.
On this graph, we
observe that there are
some challenges that
are more “urgent” that
others. For instance, it
is the case for managing
talent, managing
change and cultural
transformation or
managing
demographics. But for
this the current
capability is quite low.
In yellow, there are the
medium importance
challenge as
transforming HR into a
strategic partner, managing diversity, managing globalization… While in green it is low
importance issue like restructuring the organization, mastering HR processes….
This graph is a graph of 2015 but nowadays, migrants are also a high importance issue.
Challenges for managers:
▪ Responding to economic pressure and market competition:
In good time, it is important to understand how to reward, satisfy and retain employees is
at a premium. While in bad times, there are issues like stress, decision making and coping
come to the fore.
▪ Improving customer service:
Today, the majority of employees in developed countries work in service jobs. Employee
attitudes and behaviour are associated with customer satisfaction. If employees are
happy, the consumers are also happy.
▪ Improving people skills
We know that people skills are essential to managerial effectiveness. Organizational

behaviour provides the concepts and theories that allow managers to predict employee
behaviour in given situation.
▪ Responding to globalization:
There is an increase of foreign assignments. We should work with people from different
cultures. So it is the most important challenge in Europe.
5
The European Union makes effort to put everybody on the same kind of scale. The EU want
also a sustainable development and help people to development their talent.
1- To solve the globalization issue, we should manage talent. Indeed, everybody has a
talent which is the expertise domain of this person.
2- We can also manage diversity. There are 2 forms of diversity. The first one is visible :
young, old, stranger,… while the second one is deeper: the different level we know
languages, the social level… But for workforce diversity acknowledges are: women and
men, racial and ethnic groups, individuals with a variety of physical or psychological
abilities and finally, people who differ in age and sexual orientation.
▪ Stimulating innovation and change:
Successful organizations must foster innovation and master the art of change. So
Managers must stimulate employees creativity and tolerance for change.
▪ Creating a positive work environment:
Organizations have realized that creating a positive work environment can be a

competitive advantage. This was not part of traditional management but now, people are
involved in decision making and the leaders are on the service of the employees.
▪ Helping employees balance work & life:
Nowadays, communication technology has provided a vehicle for working at any time or
any place. So Employees are working longer hours per week. That implies that balancing
work and life is now the employee priority.
The EU has taken several directives for that but also to help women to achieve top of
companies because there is still a glass-ceiling. In those directives, we can find the fact
that men would also have paternity leaves, etc…
▪ Managing demographics:
Managing the aging of the workforce enhancing health care programs, new career
systems, adapted working hours. It is also managing the loss of capacity and knowledge
associated with demographics change.
4. Summary:
Organizational behaviour is a field of study and the final outcome in organizations. It use study
to improve predictions and based on scientific methods.
It helps managers to empower their people, stimulate innovation, avoid balance work-life
issues and to deal with globalization and economic pressure.
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The third effect of power is about the behaviour:
Power increases disinhibition3. Indeed, with power we tend to care less to the impression of
others. Moreover, Power increases sexual harassment4. It can be seen that there is an
automatism between sex and power. Indeed, the 2 are always associated even if no excuses
could be found.
4. Summary and implications for managers:

If we want to get things done in a group or an organization, it helps to have power because:
• It Increases others’ dependence on you.

• Personal power (= informal) is more effective than formal power because it is
more respected.
• Legitimate power can also be effective in some situations
• Few employees relish being powerless in their job and organization.
• Try to avoid putting others in a position where they feel they have no power.
• People respond differently to the various power bases.
X. Leadership:
1. What is a leader?
The leadership is the ability to influence a group toward the achievement of a vision or set of goals.
It is important to highlight that not all leaders are managers nor are all managers leaders.
Moreover, informal leadership is more important than formal leadership.
The leadership is close to the referent power and to the personal power because it is a set of
characteristics that make someone emerging from the crowd. The leader is recognized, so we can
be a leader and a manager but it is not because we are a manager that we are a leader.
For instance, Steve Jobs emerged as a leader because of his ability. Mandela was faiting the
oppression and was recognized as a leader.
Strong leadership and strong management are needed for optimal effectiveness. Indeed, leaders
and managers are needed:
leaders Managers
to challenge the status quo, to formulate detailed plans,
to create visions of the future to create efficient organizational structures
to inspire organizational members to oversee day-to-day operations.

It can be seen that leaders have a creative vision for the future while manager take care more on
concerts details of the day to day organizations. Moreover, people leaders take care of people
while manager take care of the organization.
There is to much emphasizes in the leader. We cannot put everything in his shoulders. Leaders use
power as a means of attaining group goals. Leaders achieve goals, and power is a means of
facilitating their achievement.
3Keltner, D., Gruenfeld, D. H., & Anderson, C. (2003). Power, approach, and inhibition. Psychological Review, 110(2), 265-284.
4Bargh, J. A., Raymond, P., Pryor, J. B., & Strack, F. (1995). Attractiveness of the underling: An automatic power sex association and its
consequences for sexual harassment and aggression. Journal of Personality and Social Psychology, 68(5), 768-781.
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There are differences on:
1- Goal compatibility because leadership does require goal compatibility, not merely
dependence.
2- The direction of influence can be bilateral or unilateral.
It is an unexplainable concept (‘back box’) because there are
1- different definitions and theories

2- different theories of leadership: traditional or Modern. Traditional theories are more static
and tell that we cannot have leadership if we are not born with that. While modern theories
are based on charism (Obama, Hitler, guru).
Indeed, we cannot measure the leadership, the don’t know if we are born with that or if we can
acquire it? Moreover, leadership refers to many concepts.
2. Theories of leadership
2.1. Traditional
a. Trait theories:
Trait theories of leadership focus on personal qualities and characteristics. They ask, “what
differentiate leaders from non-leaders?” They seem to be charismatic, enthusiastic and
courageous. But we should keep in mind that traits are given by genetics and environment.
In the 80’s a study was conducted on leadership traits but few of them are common among all
the leaders.
We could use the big 5 theory to develop the traits of a leader:
1- Leaders like being around people and are able to assert themselves (extraverted),
2- They are disciplined and able to keep commitments they make (conscientious),
3- They are creative and flexible (open)
4- They are able to regulate emotions (low neuroticism)
We should add emotional intelligence to these 4 traits. Indeed, without it, a person can have
outstanding training, a highly analytical mind, a compelling vision, and an endless supply of
terrific ideas but still not make a great leader. So, a core component of emotional intelligence
is empathy.
As a leader, we should understand our own emotions and identify the emotions of others. So
emotional intelligence is a condition that is required to be recognized as a leader.
Conclusions based on the latest findings:
- Traits can predict leadership.

- Traits do a better job predicting the emergence of leaders than actually distinguishing
between effective and ineffective leaders.
We should keep in mind that traits account only for 10% but there are still 90% to explain.
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b. Behavioural theories
People can be trained to be leaders. It is what wanted to prove psychologist at the end of
World War II. So, the Bureau of Business Research of Ohio State University. The decide to
create a Leader Behaviour Description Questionnaire (LBDQ) and distributed among leaders of
various companies and organizations (e.g., Air Force, Navy Department).
So, they wanted to see behaviour of leaders instead of investigating the treats.
Two categories can be used to classify leadership behaviour:
• Initiating structure: the leader defines and structures his/her role and those of
employees in the search for goal attainment.
• Consideration: the leader’s job relationships are characterized by mutual trust,

respect for employees’ ideas, and regard for their feelings.
Another way can be also used:
• The production-oriented leader emphasizes the technical or task aspects of the

job, focusing on accomplishing the group’s tasks.
• The employee-oriented leader emphasizes interpersonal relationships by taking a

personal interest in the needs of employees and accepting individual differences
among them.
 Leadership is multidimensional and multilevel. So we do not chosen between the 2 but we

need the 2 to be a leader.
c. Contingency theories
The contingency variable has a positive impact and might depend on the organizational
context. Leadership is something developed between a person and an environment.
Fiedler developed a model: “the Fiedler Model”. In this mode, it defines the individual’s
leadership style fixed. He was interested in task or relation leadership oriented. In which
organizational context the one of the 2 is more important even we should have the 2 as a
leader. He also defines 3 situations (contingency dimensions):
- The leader-member relations

- The task structures: there is a mess or it is well organized?
- The position powers, strong power or low power?
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Crossing the 3 variables, 8

situations can be found. The
3 first ones represent
favourable context where
performance is better and so
the leader is task oriented.
Then there is a moderate
context where there is
relation leader and an
unfavourable context in
which the leader is task-
oriented.
Exam question:
If we have to choose
between 2 different leader
which one could you
choose+ reasons?
The valuation of Fiedler’s model
• There is considerable evidence to support the model (at least 30 studies in
different companies and groups).
• It Emphasizes the interaction between the situation and the leader’s
characteristics.
• There are problems with the practical use of the model that need to be addressed.
It is hard to see what is favourable and unfavourable. To have contingency we
need 1.000 of variable but it is hard to obtain.
d. Leader-Member exchange theory
The leadership can be seen as an exchange process between leader and followers. Followers
will affect leader and in the other way also. Steven Job not a good leader if he has not a good
team to achieve his goal.
A study was made in 2000 by Dansereau and Yamarino. It shows when does leader focus on
task and on people. It conclude that a leader should focus on both but at different moment
and in different situations. If followers perform well leader focus on people if it is not the case
(leader can help those people and evolve), leader should focus on the task.
The followership is a “ Part of subordinates responsibility is to make the boss look good” (CEO
Commerce Union Corporation).
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when we are a leader, we are a human being and we will have some preferences for persons.
We will trust them more. There is another group (the out-group) with more formal relations,
this group is less motivated because they are less liked. Generally, the in-group is composed
by more extraverted persons. Generally, people in the in-group are seen as more competent,
trusty… we will reinforce this sensation. There are lot of imperial supports for this theory. That
means that initial similarity plays a role and leaders engage in self-fulfilling prophecies.
2.2. Modern
a. Charismatic leadership
Robert House, in 1976, decided to make an analysis of political and religious leaders. He
identifies what are the main characteristic based on value, behaviour. He came to the
conclusion that they are 4 main behaviours:
1- Visions and articulation: the vision should be expressed as an idealized goal. The leader
should propose something to do.
2- Personal risk: Willingness to take high personal risk, that incurs high costs. A vision is not
enough. Leader agree to take high personal risk as did Nelson Mandela. He decided to
scarified his-self to achieve his goal for his followers.
3- Sensitive to follower needs:
4- Unconventional behaviour: It happened when the leader engages in behaviour that are
perceive as novel and counter to norms. For instance, Obama had a vision and was
sensitive but he did also unconventional acts by inventing people at the white house.
There are a lot of examples as Marine Lepen which is a good communicator, sensitive (she
cares about immigrants), unconventional. Other examples can be Mary Ass, Martin Luther
king, Ann sushi(leader in Birmania) or the Scotland’s prime minister.
How can one become a charismatic leader?
The real question is: are we born as a leader or can we become a leader?
It is possible to make training to help individuals for having charismatic behaviour. Indeed, we
born with some characteristics but others characteristics can be developed with the time. Fors
instance, George Clooney did not have any charism but now he does. To achieve charism it is
based on a three-step process:
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1- Develop the aura of charisma by maintaining an optimistic view; using passion as a catalyst
for generating enthusiasm;
2. Creating a bond that inspires others to follow.
3. Brings out the potential in followers by tapping into their emotions.
It is exactly what did Obama during the speech that made him president. Indeed, he created
bonds with people, he was positive and smiling. Moreover, he made people better.
Charismatic leadership depends on the situation:
Works better: The dark side:

When we have high-management positions When the personal goals override the goals of
the organization.
In domains with an ideological component When leaders have narcissistic traits
When the company suffers from uncertainty. Some charismatic leaders are too successful
convincing followers to pursue a vision that
can be disastrous. It is the case for Hitler,
Lepen, Ben Laden, Darkvador or Bernard
Madov.
When people are under stress, fear for their
lives.
It was proved that keeping people in a poor position generate fear and it is easier to
manipulate people. So, in that what they keep the influence and power. Sarkozy used that,
telling security what the main objective while there were no security problems at this moment.
Ethical and unethical charismatic leaders
Charismatic leader behaviours Unethical charismatics

Exercising power Power is used to dominate others
Creating the vision Vision comes solely from the leader
Communicating with followers One-way communication, it is no open to input
from others
Accepting feedback Prefer yes-men, punish candid feedback
Stimulating followers Don’t wan followers to think, they prefer
uncritical acceptance of their own ideas.
Developing followers Insensitive to follower’s needs.
Living by moral standards Follow standards only if they satisfy immediate
self-interests.
Another study was made: Heaven’s Gate: Religious organizations. Gurus are leaders ? Heaven's
Gate was founded in the 1970s by Marshall Applewhite.
In order to be eligible to ascend to the next level of existence, members would have to give up
all things human: possessions, money, jobs, individuality, sexuality, friends, family and even
life itself.
John Antonakis said that communication tactics are really important for charisma. We should
use metaphor, repetitions, accentuations,…
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b. Transformational leadership
In 1978, James MacGregor Burns (1978) designed 2 kinds of leaders:
1- Transactional Leaders
These leaders guide and motivate their followers in the direction of established goals by
clarifying role and task requirements. They are generally task-oriented leader.
2- Transformational Leaders
They inspire followers to transcend their own self-interests and have a profound and
extraordinary effect on followers. They are generally, relationship-oriented leader.
There are 3 types of profiles/

behaviour that represents
transactional leader:
1- management by exception:
the leader intervenes only in
some situations, when very bad
thing happens.
2- Contingent reward: the
leader recognizes people when
they make effort or progress.
3- Laissez faire: the leader never
intervenes.
There are also 4

transformational behaviours:
1- individualized consideration,
the leader cares about people.
2- he is interested by everybody,
their intellect.
3- Inspirational motivation: he puts empathy.
4- The idealized influence is the highest point and include all the bellow characteristics.
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How Transformational Leadership works:
- Stimulates creativity, theirs and others. In this case, people are sharing responsabilities
- Decentralization of responsibility.
- Propensity to take risks.
- Compensation is oriented toward long-term results. It is important to set high and difficult
goal because people are more motivated to work for it.
- Look for agreement about the organization’s goals. It involves everybody in the
organizations.
- Increase followers’ self-efficacy “Yes, you can” and collective self-efficacy “Yes, we can”.
It can be seen that many motivational arguments are used in this case, it is due to task
relationship with motivations.
Research based on Multifactor Leadership Questionnaire by Bass &

Avolio in 1997, accept this theory. They used interviews.
A meta-analysis (1997, 2004) was made about transformational

leadership and the fact that it is related to job satisfaction, motivation,
performance. It came to the conclusion that Transactional leadership is
not (except when contingency rewards are used).
It is an example of multifactor: the idea is to capture in ship category of

person is in concordance with what we said previously. The problem is
people are free to respond in the way they want but generally they tend
to respond in a good way and not faithfully.
Transformational leadership isn’t equally effective in all situations.
 It has a greater impact in privately held firms than in more complex organizations.
Transactional leaders are better for small organizations while charismatic leaders are
better for big companies.
 It is more effective when leaders can directly interact with the workforce
Moreover, transformational leadership can be learned.
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c. Authentic leadership
Focuses on whether leadership is genuine. The interests in Authentic Leadership are:
- Increasing in recent times due to societal problems

- People longing for trustworthy leaders
- Identified earlier in transformational leadership research but not studied separately. There
are some other characteristics that were not discuss before.
- Needed evidence-based research of the construct
According to Luthans and Avolio, in 2003, authentic leadership is based on positive

organizational behaviour and psychological capital. The positive organizational behaviour is a
subdomain which talk only about positive thing like optimism and all Is based on psychological
capital (self-esteem, self-efficacy…). It focuses on what is good for people.
There are 2 components:
1- Authenticity of personal experiences. So, people values, attitudes, emotions, beliefs and
decide to act in a way according to that.
2- Acting in accordance to the true self.
Authentic leaders know who they are:
- They know what they believe in and value

- Act on those values and beliefs openly and candidly
- Take others’ opinions into account
It can be proved that People does not always act in the same way of their values but leader in
this case should act in the “good way” and follow our values. 7
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There are 4 components of authentic

leadership:
- I’m good in knowing who I am and

other see it also.
- Transparency
- Ethical/moral: develop in charismatic
(but they were not ethical and moral).
Standards that everybody in the
organization should have.
- Balanced processing
Strengths of authentic leadership:

• Fulfils society’s need for trustworthy leadership. For instance, people are less
involving in politics because we cannot trust politicians. It was the case for the
Publifin that was supposing to help poor’s. Or François Fillon with fictive works.
People lost they trust so we need more authenticity to restore trust.
• Becoming an authentic leader is a lifelong learning process. It also means know

ourselves and acting in accordance to our values. If everybody acts in an unethical
way it would be difficult for us to not do the same.
• Provides guidelines for those who want to become authentic leaders.
• Like Transformational leadership, authentic leader has an explicit moral

dimension.
• Unlike Traits (Leadership) that only some people exhibit, everyone can learn to be
more authentic.
• Can be measured using different instruments (ALQ, ALI).
Criticisms of authentic leadership:

• Some concepts are not fully developed or substantiated, for instance, moral
component.
• The rationale for including positive psychological capacities has not been clearly
explained.
• The link between authentic leader and positive organizational outcomes is
unclear.
• It is also not clear whether authentic leadership is sufficient to achieve
organizational goals.
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The self-assessment questionnaire

could be used to see if have an
authentic leadership:
This questionnaire contains items
about different dimensions of
authentic leadership. There are no
right or wrong responses, so please
answer honestly. Use the following
scale when responding to each
statement by writing the number from
the scale below that you feel most
accurately characterizes your
response to the statement.
1 = Strongly disagree 2 = Disagree 3 =
Neutral 4 = Agree 5 = Strongly agree.
The 360-degree evaluation is a multirotor evaluation:
it is relevant in that context because leader should be evaluated in

that way.
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3. Ethics and leadership

Trust is a psychological state referring to the willingness of a person to rely on another person in
the absence of monitoring. Trust is a primary attribute associated with leadership. When trust is
broken, it can have serious adverse effects on a group’s performance.
Develop Leadership Skills:
- Be yourself –more-with skills

- Know and show yourself
- Take personal risks
- Read –and rewrite – the context
- Remain authentic but conform enough
- Manage social distance
- Communicate with care
- Authentic followership
4. Challenges of leadership
1- Leadership as Attribution: when something good it is due to the leader but if it bad it is also
due to the leader.
2- Do we really need leaders?
3- On-line Leadership
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4- Cultural values:
There are 5 values dimensions of national culture:
• Power distance (there are differences between Belgium and Portugal)

• Individualism or collectivism
• Masculinity or femininity
• Uncertainty avoidance ( in Belgium we hate uncertainty)
• Long-term or short term orientation.
 Knowledge of an individual’s value system can provide insight into what makes the person
“tick. ”Employees’ performance and satisfaction are likely to be higher if their values fit well
with the organization. Managers should seek job candidates who have a value system
compatible with the organization.
VII. Motivation :
Motivation is not a simple thing, it is about a lot of things. It is a process and it is influenced by
inputs.
Concepts and theories:
1. What is motivation?
Motivation is defined simply as what causes people to behave as they do. It is the consequence
of an interaction between the individual and the situation.
It should keep in mind that in the same situation, 2 different individuals are not motivated in
the same way. Moreover, the same person can be or not motivated in the same situation. It is
due to the speediness of changing behaviour.
For instance, we are motivated by studies at Solvay but maybe that historian is not. (same
situation, 2 different individuals, 2 different degree of motivation).
So motivation is the process that account for an individual’s intensity, direction and
persistence of effort toward attaining a goal. Motivation is what we do to achieve our goal and
the motivation is the main driver of our behaviour.
Motivation depends on things that managers and the organization do to motivate employees.
It is important to highlight that motivation can change very quickly based on feedback, on the
organizational structure…
Motivation can be developed in 3 key elements:
• Intensity: how hard a person tries.

• Direction: the orientation that benefits the organization.
• Persistence: measures how long a person can maintain his effort.
There are also 2 ways to see motivation:
- Intrinsic motivation:
It is a motivation that is driven by an interest. That means the motivation exists within the
individual. We do it because we like it and it procures us happiness.
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- Extrinsic motivation:
It is a motivation that comes from the outside of an individual. Generally, we do it to impress

somebody or to have/make a good impression.
 It can be highlighted that sometimes, we need extrinsic motivation to find an intrinsic

motivation. For instance, a kid that plays tennis to please their parents, he can develop a
passion for this sport. Hence, at the beginning he goes there for his parents and now he likes.
What is not motivation ?
Motivation is not satisfaction, not directly observable, not always conscious or directly
controllable. Indeed, we cannot decide to be motivated and it is difficult to show it. Finally,
motivation is not personality trait because personality trait is something that we have and it is
difficult to change while motivation is not stable in time.
Motivate people is the main job of managers because they cannot do something for
personalities but they can for motivation.
2. Early theory of motivation

A. Maslow’s need theory:
The Maslow’s theory is a descriptive theory introducing that life is based on 5 essential
needs.
1- Physiological: those needs made us survive.

2- Safety: need security
3- Social: we need to belong to a group. It is proved that without social recognition, we
do nothing.
4- Esteem: we need an internal but also an external esteem.
5- Self-actualization: this need is about evolving and accomplishing thing in our life.
This theory can be translated to the workplace because there are needs for salary, for
safety, for pleasant environment, social, need to be promoted or to have more
responsibilities. Managers should satisfy those needs. It is important to mention that
before giving motivation, high salary and good work sphere should be provided.
Maslow’s theory has received wide recognition, particularly among practicing manager
but researches don’t generally validate the theory. Moreover, some researchers have
attempted to revive components of the need hierarchy concept using principles from
evolutionary psychology.
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B. Douglas McGregor’s theory X and theory Y

This theory is based on the conception of employees made by managers. Basically, there
are 2 different vision which lead to theory X and theory Y.
Theory X make negative assumptions. That means that managers think that workers
dislike their job and whenever possible, they will attempt to avoid work. So employees
are not interested in their job, they are just interested in money. For those reasons,
employers should punish them and employees must be coerced, controlled or threatened
with punishment.
Theory Y is based on positive assumptions. Manager think that workers like their job and
their job is the most important think in their life. So employees can view work as being as
natural, as rest or play. That means that initially, there are motivated.
The implications for managers are best explained by using Maslow’s framework:
-In theory X: lower-order needs dominate individuals. So employees are dominated for
basic needs.
-In theory Y: higher-order needs(= esteem, evolution,…) dominate individuals.
McGregor’s himself believed that theory Y assumptions were more valid than theory X but
there are no evidences to confirm that either of is valid.
C. Two factor theory:
In this theory, they are interested
in job satisfaction. They don’t talk
about motivation but ask people
how they are satisfy and what
satisfied them at work or not.
They jump to the conclusion that

they are 2 different categories:
higher needs and lower needs.
Higher needs lead to higher

satisfaction and those needs are achievement, recognition, the work itself, the
responsibility, the advancement and growth while low needs are policy, supervision,
relationship with the supervisor, the work coordination, the salary and the relationship
with others. If low skills are not respected they lead to extreme dissatisfaction.
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The traditional view was about

satisfaction or dissatisfaction. That
means that one person is totally satisfied
or totally unsatisfied. Indeed, it used to
think that satisfaction is something
continuous in time.
In reality, and it is what did Herzberg, we

can subtract thing that dissatisfied
people from the satisfaction.
It is important to keep in mind that

satisfaction is completely different from dissatisfaction.
Generally, we assure only basic needs and if workers have basic need, they are not
dissatisfied but it does not mean that they are satisfied. If they don’t have the basic needs,
they would be dissatisfied but if they have basic needs and we give them more they could
achieve higher need and if they obtained those needs they would be satisfied.
With time, some criticisms of Herzberg’s theory appeared:
1- The theory is limited because it relies on self-report.

2- The reliability of methodology is questioned.
3- They are no overall measure of satisfaction that is utilized.
4- Herzberg assumed a relationship between satisfaction and productivity but the
research methodology he used to look only at satisfaction and not at productivity.
D. McCelland’s theory of needs

According to McCelland’s theory, there are 3 needs beyond the Maslow’s pyramid.
1- A need of achievement:
It is the drive to excel, to achieve in relation to a set of standards, to strive to succeed.
It is important to know that a high need to achieve does not necessarily make someone a
good manager.
2- A need for affiliation
It is the fact that a person's need to feel a sense of involvement and "belonging" within a
social group.
3- A need for power
It is about the need to have control over others and influence the way they behave.
Individuals high in need of power enjoy being “in charge” (=responsibilities) and prefer to
be placed into competitive. They also prefer being in status-oriented situations.
Those 3 needs should be given in an organization. Generally, needs for affiliation and
power tend to be closely related to managerial success (not necessarily effectiveness) .
McClelland’s theory has had the best support but it has less practical effect than the
others because:
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a- The three needs are subconscious even if we may rank high on of them but not know
it. Moreover, the three needs are difficult to measure.
b- The process is time consuming and expensive and few organizations have been willing
to invest in measuring McClelland’s concept.
 All the theories seeing as now are descriptive with few predictive values and they overlap with
other concepts like attitudes or personalities.
Question type exam: “what is motivation for you and what are the key element to motivate
employees? “
3. Contemporary theories of motivation:

A. Self determination theory:
The theory is proposed by Deci and Ryan. The proposition is that people prefer to feel they
have control over their actions and people are driven by need for autonomy. It highlight
that people need to be more autonomous.
In 1975, Deci explored the cognitive evaluation hypothesis which hypothesize that
extrinsic reward will reduce intrinsic interest in the task.
For instance, we are going in class by intrinsic motivation and not extrinsic because coming
class is free-willing.
Another example, people paid for work feel less like they want to do it and more like they
have to do it. Work is driven by payment but if the amount is not enough they will not
worker harder even if they earn twice as much than another.
Extrinsic rewards are used as payoffs for superior performance, so employees feel they are
doing a good job. Extrinsic reward is not only money, it could be pricing, recognize…
Eliminating extrinsic rewards can also shift an individual’s perception of why she works on
a task from an external to an internal explanation. Indeed, an experiment made in the
united states proposed to pay children for each book read (10 cents per books). It
appeared that it increased the motivation of children to read books and a larger number
of them realized that they liked reading and decided to continue to do it even if they was
not paid anymore. Basically, a good manager is able to increase the extrinsic motivation of
people.
Extrinsic rewards (for instance verbal praise, feedback on competence) can improve
intrinsic motivation under specific circumstances.
Self-concordance is about how strongly peoples’ reasons for pursuing goals are consistent
with their interests and core values. Pursuing work goals for intrinsic reasons is always
better and leads to more satisfaction.
The implications for managers is that they should provide intrinsic as well as extrinsic
incentives.
B. Goal setting theory:

This theory is proposed by Edwin Locke. It said that goals tell an employee what needs to
be done and how much effort is needed.
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Evidence strongly suggests
- that specific goals increase performance. When we don’t know our goal, if the goal is not
explicitly explained, we will be less motivated even if we are rewarded. If the goal is
specified, people know that they should do and it increases motivation.
- that difficult goals, when accepted, result in higher performance than do easy goals.
People give higher performance because there is a challenge, they try to boost themselves
and it boosts their self-esteem because it shows that they are able to do it and they are
not stupid. It is also important to know that the goal should not be too high.
- that feedback leads to higher performance. Without feedbacks people cannot evolve so
they want to have feedback step by step to know what’s wrong.
Factors influencing the goal-performance relationship:

• Goal commitment. People have to accept that there is a goal. It should have a coherence
between goal assigned and personal goals.
• Task characteristics
• National culture. Indeed, individualistic countries are better to assign individual goals.
Being a good manager

means clarify objectives for
companies, departments,
divisions and individuals.
C. Self efficacy theory:

The theory is developed by Albert Bandura and it is known also as Social learning theory.
It is about how we learn by imitation, it is a social concept.
Self-efficacy is the belief in one’s capabilities to organize and execute the sources of action
required to manage prospective situations.
The fact that it is a belief is extremely important. Generally, we acquire it by our parent
because they help us to have self-efficacy and develop our mind about what we can do.
Generally, as person we don’t really know our values and if people around say that we are
good or give us a good feedback, we will believe it.
Beliefs are developed with time and it begin in the childhood and continue when we are
adults.
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Past performance is about more you do something, more you develop and know your
ability. We know that with training we will be able to do it. It is an inactive mastery.
Verbal persuasion happens when we say “I can do it”, “you are good”.
Vicarious experience happens when we see somebody doing something and we know that
we can also do it. More we look like this person (same knowledge…) more we will be
convinced that we are also able to do it.
Physiological and emotional states say that if we are happy, we can develop more self-
efficacy belief.
The implications of this theory are:
- Training programs often make use of enactive mastery by having people practice and build
their skills.
- The best way for a manager to use verbal persuasion is through the Pygmalion effect
- Intelligence and personality are absented from Bandura’s list, but they can increase self-
efficacy. Indeed, intelligent people adapt themselves more easily in a new environment.
When we put together goals

and self-efficacy, it means that
there are different goals but
we need to find self-efficacy.
Basically, if goals are clear and

low self-efficacy , the
performance satisfaction will
be lower.
We can conclude that

motivation means needs of
goal.
D. Reinforcement theory:
If we compare Goal-Setting and Reinforcement Theory:
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Goal-setting theory is a cognitive approach, proposing that an individual’s purposes direct

his action. While reinforcement theory, in contrast, takes a behavioristics view, arguing
that reinforcement conditions behaviour.
The two theories are clearly at odds philosophically even if reinforcement theorists see
behaviour as environmentally caused.
Reinforcement could be feedback, money,… The best way to understand this theory is the
Pavlov’s dog experiment. (association between the ring and the food).
Behaviorism,Watson & Skinner, developed it.

There is operant conditioning: stimulus,
response, reinforcement!
For instance, being in class is the stimulus so

the response is being in class and if the prof
says “amazing” it reinforces positively the
situation. If the response is being late, the
reinforcement will be negative and we will be
punished.
So a reinforcement can be positive or negative and the link between stimulus and response
can be reinforced by reinforcement.
Operant conditioning is how people learn to behave to get something they want and to
avoid something they don’t want. We can summarize it by:
There are some criticisms about this theory. There are about the fact that the theory:
• Ignores feelings, attitudes, expectations, and other cognitive variables known to affect
behaviour.
• Concentrates solely on what happens individual takes some action.
Reinforcement is undoubtedly an important influence on behaviour, but argue it is not the

only one. For instance, failed an exam can be a source of reinforcement due to the fact
that we want to success.
E. Equity theory :
This theory is proposed by J. Stacy Adams and says that employees make comparisons of
their job inputs and outcomes relative to those of others.
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Equity is an important component in the organization. If for the same input, we have the
same output and we are rewarded in different ways, there is inequity.
Which referent an employee chooses will be influenced by the information the employee
holds about referents, as well as by the attractiveness of the referent as gender, length of
tenure, level in the organization, professional ranks and higher education.
Generally people with higher education compare themselves and their advantages with
advantages of people outside the organization.
When employees perceive an inequity, they make one of six choices:
- Change their inputs. They could work harder or not.

- Change their outcomes and, for instance, asking for a rise.
- Distort perceptions of self. They could thing that they are not as convenient than others
- Distort perceptions of others. They could thing that others are not as good as they are.
- Choose a different referent.
- Leave the field if there are inequity.
- Sometimes it could happen that only one of those factors can explain the lack of
motivation.
This graph is quite important because when we look at equity we have more complex
values. It shows that equity is more complex than just earning the same amount of money.
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For instance, about interactional justice. It can be seen that if a manager spends 30 min to
explain me how amazing I am and spend less time with another, a feeling of inequity will
appear and can generate damages.
F. Expectancy theory:
This theory is developed by Victor Vroom. The theory is about the tendency to act in a
certain way depends on:
- Expectation that the act will be followed by a given outcome.

- Attractiveness of that outcome
Indeed, when we are going to do something, we develop some expectations. An employee

will be motivated to exert a high level of effort when he/she believes that the effort will
lead to a good performance appraisal which will lead to rewards. Finally, the rewards will
satisfy his/her personal goals. But when reality does not fit with expectations, we can be
demotivated.
It can be seen that there are different expectations.
The first step: effort-performance relationship: If we make a lot of effort, we expect to

perform well but it could not be the case in the reality. A good manager should keep in
mind the people’s expectation.
The second step: Performance-reward relationship: People think that if they perform well
they would be rewarded but it is not always the case.
The third step: reward-personal goals relationship: It could happen that when we are
rewarded it does not fit with my personal goals.
 Sum up:
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The motivation theories differ in their predictive strength:

• Self-Determination (need of control, autonomy)
• Goal-Setting Theory (clarity of goals)
• Self-Efficacy Theory (role of efficacy beliefs)
• Reinforcement Theory (rewards & punishments)
• Equity Theory (perception of equity)
• Expectancy Theory (expectations)
From concepts to application:

4. Motivating by job design:
Much evidence supports this concept. The presence of a set of job characteristics as variety,
identity, significance, autonomy, and feedback; does generate higher and more satisfying job
performance.
A few studies have tested the job characteristics model in different cultures, but the results
aren’t very consistent.
Repetitive jobs provide little variety, autonomy, or motivation.
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Job Rotation referred to as cross-training. It is a periodic shifting from one task to another.
Generally, strengths of job rotation reduce boredom, increases motivation, and helps
employees better understand their work contributions while weaknesses include: creates
disruptions, extra time for supervisors addressing questions, training time and efficiencies.
We can also talk about job enrichment

because it reduces absenteeism and
turnover costs and increases
satisfaction, but not all programs are
equally effective.
Some recent evidence suggests job

enrichment works best when it
compensates for poor feedback and
reward systems. Work design may also
not affect everyone in the same way.
It could exist alternative work arrangements:
A- Job Sharing:
Two or more people split a 40-hour-a-week job. Approximately 19 percent of large

organizations now offer job sharing. Job sharing increases flexibility and can increase
motivation and satisfaction when a 40-hour-a-week job is just not practical. The major
drawback is finding compatible pairs of employees who can successfully coordinate the
intricacies of one job.
B- Telecommuting:
Employees who do their work at home at least two days a week on a computer that is linked
to their office.
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5. Motivating by employee involvement:

The participative management joints decision making and mixed results.
The representative participation: Its goal is to redistribute power within an organization,

putting labour on a more equal footing with the interests of management and stockholders by
letting workers be represented by a small group of employees who actually participate.
Almost every country in Western Europe requires companies to practice Representative

participation. The two most common forms are works councils (Unions) and the board of
representatives.
6. Motivating by using rewards:

There are variable-Pay Programs:
A number of organizations are moving away from paying solely on credentials or length of
service. There are forms of a variable-pay program: piece-rate plans, merit-based pay,
bonuses, profit sharing, gain sharing or employee stock ownership. Therefore earnings
fluctuate up and down.
• Piece-Rate Pay:
Workers are paid a fixed sum for each unit of production completed. A pure piece-rate plan
provides no base salary and pays the employee only for what he or she produces. Although
incentives are motivating and relevant for some jobs, it is unrealistic to think they can
constitute the only piece of some employees’ pay.
• Merit-Based Pay:
It is based on performance appraisal. The main advantage is that it allows employers to

differentiate pay based on performance. It creates perceptions of relationships between
performance and rewards. There are limitations as it is based on annual performance
appraisal; merit pool fluctuations based on economic conditions; unions typically resist merit
pay plans.
• Bonuses:
Becoming a wider used system in many organizations. An annual bonus is a significant

component of total compensation for many jobs. Bonus plans increasingly include lower-
ranking employees; many companies now routinely reward production employees with
bonuses. The downside of bonuses is the fact that employees’ pay is more vulnerable to cuts.
• Skill-Based Pay:
An alternative to job-based pay bases pay levels on how many skills employees have or how
many jobs they can do. Increase the flexibility of the workforce. Skill-based pay also facilitates
communication across the organization because people gain a better understanding of each
other’s jobs.
• Profit-sharing:
Plans are organization-wide programs that distribute compensation based on some

established formula centred around a company’s profitability.
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• Gain-sharing:
Compensation is received even when the organization is not profitable.
• Profit-sharing plans:
At the organizational level appear to have positive effects on employee attitudes
Do variable-pay programs increase motivation and productivity? The answer is a qualified

“yes.” Indeed, studies generally support the idea that organizations with profit-sharing plans
have higher levels of profitability than those without them.
Another idea could be developing a Benefits Package:
The idea is to allow each employee to choose a benefit package that is individually tailored to
his/her own needs and situation. An organization sets up a flexible spending account for each
employee, usually based on some percentage of his or her salary, and then a price tag is put
on each benefit.
The las idea could be Intrinsic Rewards in Employee Recognition Programs:
Organizations are increasingly recognizing that important work rewards can be both intrinsic
and extrinsic. Rewards are intrinsic in the form of employee recognition programs and extrinsic
in the form of compensation systems.
 Managers should be sensitive to individual differences and spend the time necessary to
understand what’s important to each employee. They should allow employees to participate
in decisions that affect them and link rewards to performance. Finally, they should also check
the system for equity.
VIII. Groups and teams in Organizations:

Foundations of group behaviour:
The first question is “Who am I?”. Basically, we can answer by our name, our age, our quality, our
preferences, our origin. Generally, we decide to define ourselves using social categories and among
the 5 characteristics given, 4 are group characteristics.
1. What is a group?
A group is defined as: two or more individuals interacting and interdependent, who have come
together to achieve common goals.
Indeed, we need each other to achieve goals. It could be small group or big group. For instance
“Belgian” is a big group and the group is not necessarily interdependent all the time. It is a
crowd so it is normal that there some moment while the group is more interdepend. It is the
case during stalk, football match, sport events, national day….
There are different types of groups:
▪ Groups can be either formal or informal. A formal group is those defined by the
organization’s structure while an informal group, alliances that are neither formally
structured nor organizationally determined.
For instance, the “Master management group” is a formal group while our friends
which we hang out is an informal group.
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XII. Decision Making:

Everyday life there is a permanent question: “What is the best decision?”. Some people decide to
make decisions based on list while other decide to follow their intuitions. But when we want to make
the best decision all is based on rational decision (a list), bounded rationality (the dee) and intuition.
1. Rational decisions
There are 6 steps to follow in the rational decision-making model:
1- Define the problem

2- Identify the decisions criteria (friends, family..)
3- Allocate weight to the criteria ( the quality of the MBA in this university)
4- Develop the alternative.
5- Evaluate the alternatives based on the criteria
6- Select the best alternatives.
It is really costly in time and energy to make a rational decision and emotions could influence our
selection. Moreover, it is important to highlight that in a rational way there are not really best
alternatives.
For this model, some assumptions should be taken. Indeed, we should consider the decision maker
as having complete information, he should be able to identify all the relevant options in an
unbiased manner but also able to choose the best options with the highest utility (so, with the best
price).
Unfortunately, most decisions in the real world don’t follow the rational model.
In 1944, Con Neumann and Morgenstern discovered the expected utility theory. This theory says
that we are very biased when we need to found the odds of the gain. In this case with the 10€ it
is easy to understand the value of the game. (example given in class)
The formula of this theory is :
2. Bounded rationality
This theory was developed by Simon in 1947 but also by March and Simon in 1958. It is also
concerned with rational choice but it takes into account the cognitive limitations of the decision
maker.
The assumptions are that humans have limitations of both knowledge and computational capacity
for discovering alternatives; to evaluate their consequences under certainty or uncertainty and
making comparisons among them.
However, rational choice cannot be evaluated in an unbiased way. For instance, the travelling sales
man problem: Given a list of cities and the distances between each pair of cities, what is the
shortest possible route that visits each city exactly once and returns to the origin city?
This problem is difficult to solve because using the rational model will take hours, days, … If we
need to do that it would be impossible to do. To solve that, individuals operate within the confines
of bounded rationality. They construct simplified models that extract the essential features.
Moreover, people satisfice, they seek solutions that are satisfactory and sufficient
 In conclusion, too solve we only take only some criteria and some alternatives but not all
criteria’s and all alternatives.
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3. Intuitive decisions
Intuitive decision making occurs outside conscious thought. It relies on holistic associations, or
links between disparate pieces of information. It is fast, and is affectively charged (based on
emotions). For instance, we could ask ourselves where to go on holiday and being really undecided
and then wake up a morning knowing where we want to go.
It is fast and is affectively charged because it is based on emotions and generally people are happier
and satisfier with those kinds of decisions. People who don’t use the rational way, would be
happier on the long run. Even if it is not always the case, it was proved that it is generally the case.
There are 2 kinds of decision:
- Effective decision
- Rational decision.
There are alternatives even if effective decision gives us some benefits right now while rational
decision does not give benefit now but in the long run. For instance, eating hamburger now provide
us happiness directly while eating vegetables provide us happiness in the future. It was proved
that people are able to anticipate the benefit in future and resist the tentation by the way.
The theory of unconscious thought was made in 2006 by Dutch researchers (Dijkstherhuis and
Nordgren). They proved that people have two modes of thought, unconscious and conscious. The
conscious mind is what we can see while the unconscious mind is an unseen part of ourselves.
These parts can become in our life and in our decision. The two modes have different
characteristics, making them differentially applicable or differentially appropriate to use under
different circumstances.
It was proved that people take better decision in unconscious thought. n. According to the
researchers.
What is the difference?
The conscious thought is thinking about something while consciously attention to it. (buy ticket,
hotel to go to Paris). The unconscious thought is thinking about something while not attending to
it. It is for instance, associating, reasoning, weighing, evaluating while consciousness is thinking
about something else. Indeed, our mind continues some processing of information even if we don’t
know it. We are not aware about it but it is what happens when we are sleeping. (cfr: the example
of holidays).
A study was made about rooms for rent. Participant receive information about 4 apartments. Each
apartment is described by 12 aspects. Information for each apartment is presented for 15 secs.
Three apartments have 5 positive and 7 negative aspects. One is better: 8 positive and 4 negative.
Participants have to choose an apartment in different moment, the first group: immediately, the
second group after thinking about it for three minutes and the third group after being distracted
for three minutes. The question is “would be people able to identify what is the best alternative?”.
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The data advance that people who think more

rationally took better decision and people who were
distracted choose better decisions.
The immediate choice group has the lower rate. In a

very complex decision, the best is to do a little bit of
that and leave the mind decide for us (leave the
unconsciousness decide for us) rather than always to
think in a rational way.
Daniel Kahneman wrote a book “thinking fast and low”. He described 2 ways to make choices:
1- fast, intuitive, automatic thinking (System 1)

2- slow, rational, calculating thinking (System 2)
For good understanding what he said, we should take the example of the bat and the ball. A Bat &
Ball costs €1.10p The Bat costs €1.00 more than the ball….
How much does the ball cost?
Bat = €1.05p
Ball = 5p….so total €1.10p but everyone want to say 0.10€
4. Biases in decisions
a. Common decision biases: error in odds
The previous example allow to introduce common decision biases.
There are 2 common decisions biases:
• based on the experience with that, we think that it is the reality (pigs and dogs on
the street).
• an error in making probability (more word that start with the letter r than r in thif
letter).
 The 2 kinds of errors occur even if what we have in mind could help us.
The availability heuristic:
The availability heuristic could be defined as “what is easily recalled must be more likely”.
However, there is an inability to accurately assess the probability of a particular event happening:
- Assess based on past experience which may not be representative

- Structured review and analysis of objective data can reduce availability bias
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How people are influence by availability of heuristic?
air crash/ car crash. Bitten by shark/bitten by dogs. Die by asthma or by drowning (drowning)
Probability to win to the lottery. Everybody know that the likelihood is quite low but we continue
because there are examples of people that won.
Another example is :
“Linda is 31 years old, single, outspoken, and very bright. She majored in philosophy. As a student,
she was deeply concerned with issues of discrimination and social justice, and also participated in
anti-nuclear demonstrations.”
What is more likely?
a. Linda is a bank teller
b. Linda is a bank teller and a feminist
the correct answer was a. because the probability to have 2 characteristics is still lower than have
1 but the description is due to make a link with activist. In this case, we use the link to stereotypes
to know about what a feminist should look like.
Another example is :
“A group of people is composed by 30 engineers and 70 lawyers. “Jack is a 45 year-old man. He is

married and has four children. He is generally conservative, careful, and ambitious. He shows no
interest in political and social issues and spends most of his free time on his many hobbies, which
include home carpentry, sailing,and mathematical puzzles””.
What is the probability that Jack is an engineer?
The probability is 30% because we only have 30 on100. We generally overestimate the probability.
Representativeness heuristic attempts to ascertain the probability that a person or object belong
to a particular group or class by the degree to which characteristics of that person or object
conform to a stereotypical perception of members of that group or class. The closer the similarity
between the 2, the higher is the estimated probability of association.
b. Common decision biases: errors in value
The case is:
“A newly hired programmer for a software firm in Pittsburgh has two years experiences and good
qualifications. When an employee at Au Bon Pain was asked to estimate the starting salary, she
guessed $40,000. What is your estimate?”
a. $30,000 - $50,000?
b. $50,000 - $70,000?
c. $70,000 - $90,000?
The bias here is that we don’t have any information so we based on the information’s of the other
person. It is anchoring and adjustment heuristic. We anchor our answer based on what the
previous person earn. It will influence our error if the person is a specialist in comparison with
another student in the same cursus.
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Anchoring and adjustment heuristic:
Make estimates by choosing an initial value and then adjusting this starting point up or down until
a final estimate is obtained. It leads to biases in the evolution of conjunctive and disjunctive events:
- The proximity of conjunctive events overestimated

- Probability of disjunctive evens underestimated.
Kahneman, Slovic and Tversky in 1974 made a study about how smart people do dumb things. It is
heuristics as error-generators. It was proved that they do it based on availability,
representativeness and anchoring and adjustment.
In 2001, Mellers and McGraw developed the decision affect theory. This theory describes when
making decisions people anticipate how they would feel about different choices. We estimate how
happy we are with the alternative. PEOPLE use information’s in making decisions. In 2000, Gilbet
and Wilson discovered that all our choices are based on emotions.
Generally, we tend to overestimate how happy we will be in this situation (of spending our holidays
in a place) while people underestimate happiness that they already experience.
Another study was conducted about the

anticipated emotions and decision by Richard,
Van der Pligt and De Vries in 1996.
After the act, people tends to regret to not

used condoms. So, the intention to use
condoms increase and describes the feeling
after the act. People have regret about it.
Feelings after are more negative and it predict
the attention to use candoms. We make people
thinking how they would feel after (regret,…)
and it influences their act in the future.
c. Framework bias and risk aversion
For instance if we have:
“ Imagine that Belgium is preparing for the outbreak of an unusual Asian disease, which is
expected to kill 600 people. Two alternative programs to combat the disease have been
proposed.
Program A: In a group of 600 people, 200 people will be saved.
Program B: There is a one-third probability that 600 people will be aved, and a two-thirds
probability that no people will be saved.
Or
Program C: In a group of 600 people, 400 people will die.
Program D: There is a one-third probability that nobody will die, and a two-third probability that
600 people will die.”
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it gives the same result but rapidly people choose the program A. Indeed, between the 2 programs,
the difference is the framework, the way we wrote the sentence. If we focus on how many people
die, people will less choose this case.
The tendency to prefer a sure thing instead of a risky outcome. People will more likely engage in
risk-seeking behaviour for positive outcomes and risk averse behaviour for negative outcomes.
d. Overconfidence:
The tendency to place unwarranted confidence in their judgment. There are two kinds of
knowledge:
- primary: how much you know

- secondary: how well you know your limits
Experts in a field are even worse (e.g., stock traders, doctors). For instance, the Minister of Power
and Electricity in Ukraine estimated odds of nuclear disaster to be 1/10,000 2 months before
Chernobyl…Sometimes we overestimate how much we know and we don’t really know our limits.
People extremely confident about they knowledges, are confident because they know less than
others. So, PEOPLE THAT ARE OVERCONFIDENT ARE PEOPLE WHO KNOW LESS.
Another thing to note is that teams are significantly more over-confident than are individuals
alone.
We generally think that it happens to the others. Everybody knows that smoke is bad but
everybody thinks that the likelihood to have a cancer is higher for others than for the person his-
self.
e. Confirmation bias:
It is the tendency to consider evidence that support their position and discount evidence that
refutes their position. It is the case of Theo Franken and the refugees. he tries to prove that
everything that they do is bad. This leads to:
- Selective attention
- Selective interpretation
- Selective recall
It can also create self-fulfilling prophecies.
To avoid this kind of bias, when we put a question, we try to demonstrate the invers, to test the
hypothesis. For instance, if the thesis is every Belgian love red devils, we should try to find people
who don’t like red devils and that are Belgians. We try to disconfirm the rules while what do Theo
Franken is trying to confirm the rule.
f. Escalation of commitment:
It is staying with a decision even when there is clear evidence

that it’s wrong. Escalation is most likely to occur when individuals
view themselves as responsible for the outcome.
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XIII. Organizational design :

1. Three dimensions:
We should think of organizations in terms of three dimensions:
1- Degree of complexity:
There are 2 dimensions of organizational design
- The vertical dimension that accounts the number of layers of management. So the span of
control = # employees / manager.
- The horizontal dimension that measure how jobs are differentiated. It is the
departmentalization, grouping jobs together so common tasks can be coordinated
Here, there is an example of

vertical complexity contrasting
spans of control.
For 8 managers we have 4

employees, … 4.096 are
employees and not the
subordinator of somebody. And
1 is the CEO.
Which organization looks more

appealing to you?
Everybody want to work in span of 8 because it is less hierarchic. If our aspiration is becoming CEO,
it will be easier to achieve our goal in the span of 8 and in the span of 4.
An example of very vertical bureaucratic organization is the government and the city
administration. There is a delegation of responsibilities from the state to cities. So when we want
to renew our identity carte, they say I cannot do for it because they are more managers that are
responsible for this person. So, they cannot take responsibilities.
Horizontal organization is about how much a job is differentiated. There is departmentalization.

We have to organize it in team, grouping people.
3 ways to departmentalization:
• Functional departmentalization. We do it depending on the

factoring we are talking about.
• Customer departmentalization. It is the case in sales. In

company which are mainly driven by sales.
• Geographic departmentalization. It is the case of

multinationals.
84
It is a shortcut characteristic of a group. For example, everybody around the world think that
Belgian people are kind. If Belgians go somewhere, they will be judged based on those
characteristics!
There are many stereotypes at the work place based on:
- The origin
- The age: old people are slow, grumping and after 50 years it is more difficult for them to
find a new job. But there are also positive stereotypes: old people are more experienced,
they have a lot of knowledges. Young people are seeing as stupid and without experiences.
But it changes with the time.
- The gender (for an interview but also for a promotion). Males are seeing as having
leadership, they are serious and let their emotions out. If they cannot express their
emotions in the way they want that could lead to burnout. Women are taking care, they
are nervous, stressed and emotional. They take more time to look good and they should
take care of their children. It is maybe the cause of the stress. -> that leads to the fact that
stereotype can be true!!
- The way people dress
- The department in which we work; in marketing, there are funny and stupid and in Finance
they are serious and intelligent.
- The social status
- The languages that we know
- The education and we can see it on the way workers trade the cleaning people.
We cannot stop stereotyping because it is a shortcut to perceive the world and we need it. But
the main question is how to change the way that people have perceived us? The first key is the
awareness to understand that we are judging people based on stereotypes.
3. Applications in organizations:
A. Employment interview:
Evidence indicates that interviewers make perceptual judgement that are often inaccurate and
agreement among interviewers is often poor.
B. Performance expectations:
Evidence demonstrates that people will attempt to validate their perceptions of reality, even
when those perceptions are faulty. Self-fulfilling prophecy and Pygmalion effect Expectations
become reality.
The Pygmalion effect is based on 2 determined group and we will say to one group that it is
competent and to the other that it is incompetent (personally we don’t think that we are bad).
With the time, the competent group will become good and in 1 years, the differences will have
doubled or tripled because of the reinforcement of the perception. The group is the target.
The self-fulfilling is the tendency to tent or to feel like we think. The image given by people
influence the way we will comport with them. With time we become the image of the people
have of us. It is us the target.
C. Performance evaluation:
An employee’s performance appraisal is very much dependent on the perceptual process.
Many jobs are evaluated in subjective terms.
15
What the evaluator perceives to be good or bad employee characteristics or behaviours will
significantly influence the outcome of the appraisal.
 Biases in social perception influence recruitments, performance expectations, performance

evaluation and daily interactions.
IV. Attitudes:
Attitudes and job-satisfaction are outputs.
1. Three components of an attitude
There are 3 main components:
affective, cognitive, behavioural.
For instance, I am affective

green so my behaviour is to
recycle, to not use my car and to
limited my use of electricity and
I do that because I think about
the future of the world
(cognitive).
The affective is related to: I like my job I have the chance to do something other than work or
because I have free week-end.
2. Relationship between attitudes and behaviour:

The attitude people hold determine what they do but not always. For instance, a student can
want to come at each class to success (= his belief) but that does not mean that the student
will at each class. So there is a relationship between attitudes and behaviour but it depends
on several factors.
Another example can be the fact that we want to eat healthier to lose weight (=the belief) but
we don’t respect our engagement. There are several factors that can explain that:
- We have the intention but the environment does not give us the possibility to do it.
- The social pressure to not eat in a healthy way.
We can be in the fact that we have an attitude but the behaviour does not follow: We are
passionate about a project but we have some trouble to finish it. We can also have the fact
that we have a positive attitude toward helping others but we don’t really exhibit it.
We need to understand the importance of the attitude because attitude is general and implies
many things. Generally, it corresponds to a behaviour but the behaviour can be different to
the attitude. It is important to know in which measure the attitude is accessible and how we
are affected by the social pressure. Finally, we should know whether or not a person has had
direct and personal experience with the behaviour.
People seek consistency among their attitudes and between their attitudes their behaviour.
Indeed, we want to look consistent and not be perceived as inconsistent.
In 1957, Festinger developed the theory of cognitive dissonance which is the incompatibility
that an individual might perceive between 2 or more attitudes or between behaviour and
attitudes.
16
THEORETICAL REMINDER
• ORGANIZATIONAL BEHAVIOUR ANALYSIS
Step 1: Outcomes
Step 2: Identification of inputs
Step 3: Processes
GEST 448: ORGANIZATIONAL BEHAVIOR AND LEADERSHIP

SEMINAR 08: December 09/10
• ORGANIZATIONAL BEHAVIOUR ANALYSIS

1. SUMMARY
2. PROBLEM
3. ANALYSIS
4. RECOMMANDATION

• ORGANIZATIONAL LEVEL ANALYSIS
Inputs Processes Outcomes

Structure
Productivity
CHANGE
Culture
MANAGEMENT
Survival
(Design)

• ORGANIZATIONAL LEVEL OUTCOMES
- Productivity
–“The combination of the effectiveness and efficiency of an organization.”
–Effectiveness: The degree to which an org. meets the needs of its clientele or
customers.
–Efficiency: The degree to which an org. can achieve its ends at a low cost.
–An organization is productive if it achieves its goals by transforming inputs into outputs
at the lowest cost
- Survival
– “The degree to which an organization is able to exist and grow over the long term.”
= > Depends on fit w/ environment and productivity

• ORGANIZATIONAL LEVEL INPUTS
- STRUCTURES/DESIGN
- CULTURE
1. Innovation and risk taking
2. Attention to detail
3. Outcome orientation
4. People orientation
5. Team orientation
6. Aggressiveness
7. Stability

• CHANGE
- A process in which an organization changes its working methods or aims, for example
in order to develop & deal with new situations or markets
- When a company makes a transition from its current state to some desired future
state
- A strategy to minimize employee resistance & cost to organization while maximizing
effectiveness of the change effort
• CHANGE MANAGEMENT
- Process, tools & techniques to manage change to achieve the required (business)
outcome

• RESISTANCE TO CHANGE
Individual level: habit, security, economic factor, selective information processing,
fear for unknown.
Organizational level: Structural inertia, Limited focus of change, Threat to expertise,
Threat to established power relationships
• OVERCOMING RESISTANCE
- Education and communication
- Participation
- Building support and commitment
- Develop positive relationships (e.g., trust)
- Implementing changes fairly
- Manipulation and cooptation
- Selecting people who accept change
- Coercion SEMINAR 08: December 09/10
• CHANGE PRACTICES – WHY ORGANISATIONS CHANGE?

• CHANGE PRACTICES: 4 APPROACHES

- LEWIS THREE STEPS APPROACH
- KOTTER’S EIGHT-STEP PLAN
- ACTION RESEARCH
- ORGANIZATIONAL DEVELOPMENT

• LEWIN’S THREE-STEP CHANGE MODEL

• KOTTER’S EIGHT-STEP PLAN
1. Unfreeze
2. Movement
3. Refreezing

• ACTION RESEARCH
“a change process based on the systematic collection of data and then selection
of a change action based on what the analyzed data indicate.”
Five steps :
1. Diagnosis,
2. Analysis,
3. Feedback,
4. Action,
5. Evaluation.

• ORGANISATIONAL DEVELOPMENT
A collection of change methods that try to improve organizational effectiveness
and employee well-being.” Key values: Respect for people, Trust and support,
Power equalization, Confrontation, Participation
- Reactive to change
Sensitivity training
Survey feedback
Process consultation
Team building
Intergroup development
Appreciative inquiry
- Proactive to change (culture for change)

Stimulating a culture of innovation
Creating a learning organization
• LEADERSHIP:
- Ability to influence a group toward the achievement of a vision or a set of goals
• DEFINITION AND CONSEQUENCES DEPEND ON THE THEORIES

- Trait theory
- Contingency theory
- Leader-member exchange theory
- Transformational leadership theory
- Authentic leader and adapatative

SEMINAR 06: November 25/26
• TRAIT THEORY OF LEADERSHIP

Focus on personal qualities and characteristics
- Traits can predict leadership (emergence > distinguishing effective/ineffective).
- Big Five traits linked to strong leadership: E, C, and O.
- Emotional Intelligence linked to effective leadership.

• CONTINGENCY THEORY
Interaction between leader’s style and situational factors
- Match between leader’s style and the degree
to which the situation gives control to the leader (see Fiedler Model).
- Match between leader’s style and followers (see Situational Leadership theory).
- Directive or supportive leadership depends on complex analysis of the situation

(see Path-Goal theory).
- The way the leader makes decisions is as important as what she or he decides
(see Leader-Participation Model).

• LEADER-MEMBER EXCHANGE THEORY

Role of the relationship’s quality
- Leaders seek to create a special relation w/ followers
- Special relationship with a small group of their followers
- Consequence: creation of in-group.

• TRANSACTIONAL LEADERSHIP
- Transactional leaders: Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and task requirements.

• TRANSFORMATIONAL LEADERSHIP
They inspire followers to transcend their own self-interests for the good of
the organization
more effective because they are more creative (and encourage their
followers to be creative)
Companies with them have greater decentralization of responsibility
more propensities to take risks,
able to increase followers’ self-efficacy, giving the group a “can do”
spirit.
engender commitment and greater trust

• TRANSFORMATIONAL VS TRANSACTIONAL LEADERSHIP

- Transactional and transformational leadership
complement each other; they aren’t opposing
approaches to getting things done
- Transformational leadership is more strongly

correlated than transactional leadership
with lower turnover rates, higher productivity,
lower employee’ stress and burnout,
and higher employee satisfaction

• AUTHENTIC LEADERSHIP
Leaders who know who they are, know what they believe in and value, and act on
those values and beliefs openly and candidly. Their followers would consider them
to be ethical people.
• COMPONENTS
- Self awareness
- Transparency
- Ethical/ Moral
- Balanced processing

TEAM INPUT TEAM PROCESSES TEAM BEHAVIOR

ABILITY
Organizational
-Knowledge
Context
-Skills
-Education
-Information - Production
- Cohesion
Team Design MOTIVATION
- Learning
-Intrinsic
-Extrinsic - Integration
Team Culture STRATEGY

-Communication
-Coordination
GEST 448: ORGANIZATIONAL BEHAVIOR AND LEADERSHIP SEMINAR 05: November 12/18
• TEAM BEHAVIOR
• PRODUCTIVITY
– Did the team achieve its goal(s)?
– Did the team’s output meet the standards of those who have to use it?
• COHESION/SATISFACTION
– Do the team members enjoy working together?
– Is the team better able to work together as a result of this experience?
• LEARNING/INDIVIDUAL GROWTH
– Do team members have an opportunity to develop themselves
– And try new roles and skills?
• INTEGRATION/ORGANIZATIONAL GAINS
– Does the team benefit the larger organization?

ABILITY
Organizational -Knowledge
Context -Skills
-Education
-Information
- Production
- Cohesion
- Learning
-Intrinsic
Team Culture STRATEGY

-Communication
-Coordination
• TEAM INPUT
• ORGANIZATIONAL CONTEXT
• TEAM CULTURE
• CHARACTERISTICS
• TEAM DESIGN
- Roles: shared expectations for how an individual behaves w/in a group,prescribed
- Status: « acquired » role
- Norms: acceptable standards of behavior that are shared by the group’s members
- Size
- Cohesion: emotional attraction among members
- Diversity: degree to which members are different from one another, surface or deep

ABILITY
Organizational -Knowledge
Context -Skills
-Education
-Information
- Production
- Cohesion
- Learning
-Intrinsic
STRATEGY
Team Culture -Communication
-Coordination
• TEAM PROCESS
• ABILITY/KNOWLEDGE/EDUCATION/INFORMATION SKILLS
- Task management skills.
- Technical skills.
- Interpersonal skills.
- Organizational skills.
• MOTIVATION INTRINSIC & EXTRINSIC

- Motivating/ Stimulating.
- Demotivating/ Inhibing.
• STRATEGY
- Communication/coordination
ABOUT HBP SIMULATION
• SITUATION:
– Product manager at Matterhorn Health
– New product failure:
1/ GlucoGauge blood glucose monitor, the company’s most

expensive product development effort to date.
2/ In spite of vigorous pre-release testing, problems reported by
customers almost immediately after launch
• TO DO
– determine the root cause of the issue
– make recommendations on how Matterhorn can get ahead of
this problem.

SEMINAR 03: October 21/22
ABOUT HBP SIMULATION
• PRODUCT MANAGER AT MATTERHORN HEALTH

– How:
Throughout the simulation, you will use a series of desktop applications to receive
communications from your colleagues about the problem at hand.
You will receive information through various channels - email, video messages,
voicemail messages, and instant message chats

QUICK THEORICAL REMINDER
• RATIONAL MODEL OF DECISION MAKING

– Assumes that the decision maker:
• Has complete information.

• Is able to identify all the relevant options in an unbiased manner.
• Chooses the option with the highest utility.

• BOUNDED RATIONALITY
– Assumes that Humans have limitations of both knowledge and
computational capacity:
• For discovering alternatives.

• Evaluate their consequences under certainty or uncertainty.
• And making comparisons among them.
• INTUITION
– DM is:
• Outside conscious thought
• Based on holistic associations (links)
• Fast and affectively charged

• MAIN BIASES IN DECISIONS MAKING
- Availability
- Representativeness
- Anchoring and adjustements
- Overconfidence
- Framing bias
- Risk-aversion
- Confirmation bias
- Escalation of Commitment (// sunk-cost effect)

ONLINE SIMULATION FOR TODAY
• ORGANIZATIONAL BEHAVIOR SIMULATION:

JUDGMENT IN A CRISIS
- Debriefing
- Analyse and results

QUICK THEORICAL REMINDER (1/5)
• MOTIVATION
Processes that account for an individual’s intensity,
direction, and persistence of effort toward attaining a
goal.
• SOURCES
- Intrinsic
- Extrinsic

MOTIVATION: Early Theories

• Two-factor theory - Hertzberg
- Intrinsic factors and job satisfaction
- Extrinsic factors with dissatisfaction.
• Hierarchy of needs – Maslow

- 6 layers pyramid of needs
• Theory of needs - McClelland’s

- States achievement
- Power
- Affiliation

MOTIVATION: Modern Theories

• Self Determination
- Beneficial effect of intrinsic motivation: Autonomy, control.
- Harmful effect of extrinsic motivation and less sustainable.
• Goal-Setting Theory (clarity of goals)

- Difficult, specific tasks with feedback lead to better performance
- MBO – Management by objectives, Objectives SMARTS.
• Self-Efficacy Theory (role of efficacy beliefs)

- Belief of capabilities of performing a task
- Higher belief leads to better commitment and performance

MOTIVATION: Modern Theories

• Reinforcement theory
- Conditionment – Rewards and punishment.
- Motivation to model rewarded behavior.
• Equity theory
- Perception of equity.
- Organizational justice.
• Expectancy Theory
- Strengh of an effort related to expectation.
- Performance rewards relationship.

• EMPLOYEE INVOLVEMENT (ROBBINS & JUDGE, 2007, P. 235)

- Participative process that uses the input of employees to increase
their commitment to the organization’s success
- Self-determination theory (need of control, autonomy)
• MONEY AS MOTIVATOR ? (ROBBINS & JUDGE, 2007, P. 215)

1. Must be important to the individual
2. Must be perceived as a direct reward for performance
3. Must be significant enough to make a difference to the individual
4. Management must have the freedom to reward high performance with
more cash


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GOUMOTSIOU ALEXANDRA : OBL

We will find something like that. Where:

Make the main relationship between 2

What managers do?

He should have 3 kind of skills:

In 1998, Luthans found that managers engage in four managerial activities:

3. Challenges for managers in applying organizational behaviour concepts:

Challenges for managers:

▪ Responding to economic pressure and market competition:

▪ Improving customer service:

▪ Improving people skills

We know that people skills are essential to managerial effectiveness. Organizational

▪ Stimulating innovation and change:

▪ Creating a positive work environment:

Organizations have realized that creating a positive work environment can be a

▪ Helping employees balance work & life:

The third effect of power is about the behaviour:

4. Summary and implications for managers:

• It Increases others’ dependence on you.

to create visions of the future to create efficient organizational structures

to inspire organizational members to oversee day-to-day operations.

There are differences on:

It is an unexplainable concept (‘back box’) because there are

1- different definitions and theories

We could use the big 5 theory to develop the traits of a leader:

Conclusions based on the latest findings:

- Traits can predict leadership.

Two categories can be used to classify leadership behaviour:

• Consideration: the leader’s job relationships are characterized by mutual trust,

Another way can be also used:

• The production-oriented leader emphasizes the technical or task aspects of the

• The employee-oriented leader emphasizes interpersonal relationships by taking a

 Leadership is multidimensional and multilevel. So we do not chosen between the 2 but we

- The leader-member relations

Crossing the 3 variables, 8

d. Leader-Member exchange theory

How can one become a charismatic leader?

2. Creating a bond that inspires others to follow.

3. Brings out the potential in followers by tapping into their emotions.

Charismatic leadership depends on the situation:

Works better: The dark side:

Ethical and unethical charismatic leaders

Charismatic leader behaviours Unethical charismatics

In 1978, James MacGregor Burns (1978) designed 2 kinds of leaders:

There are 3 types of profiles/

There are also 4

How Transformational Leadership works:

Research based on Multifactor Leadership Questionnaire by Bass &

A meta-analysis (1997, 2004) was made about transformational

It is an example of multifactor: the idea is to capture in ship category of

Transformational leadership isn’t equally effective in all situations.

Moreover, transformational leadership can be learned.

Focuses on whether leadership is genuine. The interests in Authentic Leadership are:

- Increasing in recent times due to societal problems

According to Luthans and Avolio, in 2003, authentic leadership is based on positive

There are 2 components:

Authentic leaders know who they are:

- They know what they believe in and value

There are 4 components of authentic

- I’m good in knowing who I am and

Strengths of authentic leadership:

• Becoming an authentic leader is a lifelong learning process. It also means know

• Provides guidelines for those who want to become authentic leaders.