Learning Objectives 1-1

Unit 1:
Introduction to Organizational  After studying this unit, you should be able to:
 Identify the functions that comprise the management
Behavior 
process and relate them to organizational behavior.
Relate organizational behavior to basic managerial
roles and skills.
 Demonstrate the importance of interpersonal skills in
the workplace
 Define organizational behavior (OB).
 Importance and functions of OB
 Identify the major behavioral science disciplines that
contribute to OB.
 Identify the challenges and opportunities managers
have in applying OB concepts.

0 1

What Managers Do 1-2 Management Functions 1-3

Control
 They get things done through other people.

 Management Activities:
Plan Lead
 Make decisions
 Allocate resources
 Direct activities of others to attain goals
Organize

Based on your own experiences or observations, provide

examples of each function?

2 3

Mintzberg’s Managerial 1-4 Katz’s Essential 1-5

Roles Management Skills

 Discovered ten managerial roles
 Technical Skills
 Separated into three groups:  The ability to apply specialized knowledge or expertise

 Interpersonal  Human Skills

 Informational  The ability to work with, understand, and motivate other
people, both individually and in groups
 Decisional

 Conceptual Skills
 The mental ability to analyze and diagnose complex situations

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(c) 2008 Prentice-Hall, All rights

reserved. 1
 The Importance of Interpersonal Organizational Behavior 1-7

Skills
Interpersonal skills are important because…
 ‘Good places to work’ have better financial performance.
 Better interpersonal skills result in lower turnover of quality
employees and higher quality applications for recruitment.
 There is a strong association between the quality of
workplace relationships and job satisfaction, stress, and
turnover.
 It fosters social responsibility awareness.
“OB is the study of human behavior in
organizational settings, the interface between
human behavior and the organization, and
the organization itself” (Griffin et al., 2012)
Organizational behavior (OB) is a field of
study that investigates the impact that
individuals, groups, and structure have on
behavior within organizations for the purpose
of applying such knowledge toward
improving an organization’s effectiveness.

6 7

Studying Organizational Intuition and Systematic 1-9

Behavior Study
 Behavior at 3 levels:
• Gut feelings
 Individual • Individual observation
Intuition • Commonsense
 Group
 Organizational

• Looks at relationships
Systematic • Scientific evidence
Study • Predicts behaviors

The two are complementary means of predicting behavior.

8 9

Studying Organizational Contributing Disciplines 1-11

Behavior
 Organizational behavior follows principles of human Many behavioral sciences
behavior: have contributed to the
development of
 People are a resource common to all organizations.
Organizational Psychology
 Each person has unique perceptions, personality, Behavior
and life experiences.
 Today’s workforce looks, thinks, and acts differently Social
Psychology
than in the past.
 Organizations are social systems where the relationships
among individuals and groups impact individual Sociology Anthropology

behavior.

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(c) 2008 Prentice-Hall, All rights

reserved. 2
 Challenges and Three Levels of Analysis OB Model
Opportunities for OB 1-12

 Globalization
 Growth of international business
 Cross-cultural differences and similarities
 Managerial behavior across cultures
 Responding to economic pressure
 Diversity workforces
 Technology
 Technology and competition
 Information technology
 Ethics and Corporate Governance
 New employment relationship
 Management of knowledge workers
 Outsourcing
 Temporary and contingent workers
 Tiered workforce
 Innovation and change

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(c) 2008 Prentice-Hall, All rights

reserved. 3
 11/18/2020

Learning Objectives

DIVERSITY IN ➢Describe the two major forms of workplace diversity.

ORGANIZATION ➢Demonstrate how workplace discrimination undermines

organizational effectiveness.
➢Describe how the key biographical characteristics are
relevant to OB.
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc
National Economics University ➢Explain how other differentiating characteristics factor
into OB.
➢Demonstrate the relevance of intellectual and physical
abilities to OB.
➢Describe how organizations manage diversity effectively.

1 2

Level of Workplace Diversity

Level of Workplace Diversity

 Surface-level diversity: Differences in

easily perceived characteristics, such as gender, race,
ethnicity, age, or disability, that do not necessarily
reflect the ways people think or feel but that may
activate certain stereotypes.

 Deep-level diversity: Differences in

values, personality, and work preferences that become
progressively more important for determining similarity
as people get to know one another better

3 4

Workplace Discrimination and Workplace Discrimination and

Organizational Effectiveness (1 of 3) Organizational Effectiveness (2 of 3)
Exhibit 2-1 Forms of Discrimination

Discrimination is to note a difference between things. Type of

Discriminatio
Unfair discrimination assumes stereotypes about groups. n Definition
 Refusal to recognize individual differences is harmful to organizations and
Discriminator Actions taken by representatives of
employees.
y policies or the organization that deny equal
 Stereotype threat: describes the degree to which we practices opportunity to perform or unequal
rewards for performance.
internally agree with the generally negative stereotyped
Sexual Unwanted sexual advances and other
perceptions of our groups harassment verbal or physical conduct of a
sexual nature that create a hostile
 Employees who feel stereotype threat may have lower or offensive work environment.
performance, lower satisfaction, negative job attitudes,
Intimidation Overt threats or bullying directed at
decreased engagement, decreased motivation, higher members of specific groups of
absenteeism, more health issues, and higher turnover employees.
Examples from Organizations
Older workers may be targeted for
layoffs because they are highly paid
and have lucrative benefits.
Salespeople at one company went on
company-paid visits to strip clubs,
brought strippers into the office to
celebrate promotions, and fostered
pervasive sexual rumors.
African-American employees at some
companies have found nooses
hanging over their work stations.

intentions. Mockery and Jokes or negative stereotypes; Arab-Americans have been asked at
insults sometimes the result of jokes taken work whether they were carrying
too far. bombs or were members of terrorist
organizations

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 11/18/2020

Workplace Discrimination and Biographical Characteristics and

Organizational Effectiveness (3 of 3)
Type of
Discriminatio
n Definition
Exclusion Exclusion of certain people
from job opportunities,
social events, discussions,
or informal mentoring; can
occur unintentionally.
Incivility Disrespectful treatment,
including behaving in an
aggressive manner,
interrupting the person, or
ignoring his or her opinions
Organizational Behavior (1 of 6)
 Biological characteristics are personal characteristics that are objective
Examples from and easily obtained from personnel records.
Organizations
Many women in finance  Variations in these can be the basis for
claim they are assigned discrimination
to marginal job roles or
are given light workloads
that don’t lead to
promotion
Female lawyers note that
male attorneys frequently
cut them off or do not
adequately address their
comments.

7 8

Biographical Characteristics and Describe How Organizations

Organizational Behavior (2 of 6) Manage Diversity Effectively (1 of 5)

Age Diversity management is the process and

 The workforce is aging worldwide in most developed programs by which managers make
countries
everyone more aware of and sensitive to
 Does job performance decline with increasing age?
the needs and differences of others.
 Studies show that turnover and absenteeism rates
 Diversity is more successful when it is
are lower among older workers, and age is not
associated with lower productivity. everyone’s business, not just for certain
groups of employees.

9 10

Describe How Organizations Describe How Organizations

Manage Diversity Effectively (2 of 5) Manage Diversity Effectively (3 of 5)

Attracting, selecting, developing, and retaining

diverse employees
 Target recruiting messages to specific
demographic groups.
 Ensure that hiring is bias free.
 Create a positive diversity climate.

11 12

2

Describe How Organizations
Manage Diversity Effectively (4 of 5)
 Diversity in groups
 Most people in groups need a common way of
looking at and accomplishing major tasks, and
they need to communicate well with each
other.
Emphasize higher-level similarities among
people.
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11/18/2020
Describe How Organizations
Manage Diversity Effectively (5 of 5)
Effective diversity programs
 Teach managers about the legal framework for
equal employment opportunity and encourage
fair treatment of all people.
 Teach managers how a diverse workforce will
be more effective at serving a diverse
customer base.
 Foster personal development practices that
bring out the skills and abilities of everyone.
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3
 Learning Objectives
Attitudes and
Job Satisfaction  Contrast the three components of an attitude.
 Summarize the relationship between attitudes and
behavior.
Instructor: Assoc. Prof. Dr., Pham Thi Bich Ngoc
 Compare the major job attitudes.
 Define job satisfaction.
 Summarize the main causes of job satisfaction.
 Identify three outcomes of job satisfaction.
 Identify four employee responses to
dissatisfaction.

0 1

Contrast the Three Components of an Contrast the Three Components of an

Attitude (1 of 2) Attitude (2 of 2)
 Attitudes are evaluative statements—either favorable or The Components of an Attitude
unfavorable—about objects, people, or events.
– They reflect how we feel about something.

2 3

Summarize the Relationship Compare the Major Job Attitudes (1 of

Between Attitudes and Behavior (1
5)
of 2)
 Job Satisfaction
 The attitudes that people hold determine what they do. A positive feeling about the job resulting from
an evaluation of its characteristics.
 Festinger: cases of attitude following behavior
 Job Involvement
illustrate the effects of cognitive dissonance.
 Degree of psychological identification with the
 Cognitive dissonance is any incompatibility an job where perceived performance is important
individual might perceive between two or more to self-worth.
attitudes or between behavior and attitudes.  Psychological Empowerment
 Belief in the degree of influence over one’s
job, competence, job meaningfulness, and
autonomy.

4 5

1
 Compare the Major Job Attitudes (2 of Compare the Major Job Attitudes (3 of
5) 5)

Organizational Commitment Perceived Organizational Support (POS)

 Degree to which employees believe the
 Identifying with a particular organization and
its goals and wishing to maintain membership organization values their contribution and cares
in the organization. about their well-being.
 Higher when rewards are fair, employees are
 Employees who are committed will be less
likely to engage in work withdrawal even if involved in decision making, and supervisors are
they are dissatisfied, because they have a seen as supportive.
sense of organizational loyalty.  POS is important in countries where power
distance is lower.

6 7

Compare the Major Job Attitudes (4 of Compare the Major Job Attitudes (5
5) of 5)

 Employee Engagement Are these job attitudes really all that distinct?
 The degree of involvement with, satisfaction  No, these attitudes are highly related; and
with, and enthusiasm for the job. while there is some distinction, there is also a
 Engaged employees are passionate about lot of overlap that may cause confusion.
their work and company.

8 9

Define Job Satisfaction (2 of 5) Summarize the Main Causes of

Job Satisfaction
 Job Satisfaction (1What
of 3) causes job satisfaction?
A positive feeling about a job resulting from an  Job conditions
evaluation of its characteristics.  The
intrinsic nature of the work itself, social
 Two approaches for measuring job satisfaction are popular interactions, and supervision are important
predictors of job satisfaction.
 The single global rating.
 Personality
 The summation of job facets.
 People who have positive core self-
evaluations, who believe in their inner worth
and basic competence, are more satisfied
with their jobs than those with negative
core self-evaluations.

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2
 Summarize the Main Causes of Job Outcomes of Job Satisfaction
Satisfaction (3 of 3)

• Job Performance
 Corporate Social Responsibility (CSR)
– Happy workers are more likely to be productive
 Corporate social responsibility (CSR): self-
workers.
regulated actions to benefit society or the
OCB
environment beyond what is required by law. •

– People who are more satisfied with their jobs are

 Includes environmental sustainability
more likely to engage in OCB.
initiatives, nonprofit work, and charitable
Customer Satisfaction
giving. •

– Satisfied employees increase customer satisfaction

 Increasingly affects employee job
and loyalty.
satisfaction.
• Life Satisfaction
– Research shows that job satisfaction is positively
correlated with life satisfaction.

12 13

Four Employee Responses to

Four Employee Responses
Dissatisfaction (2 of 2)

to Dissatisfaction  Counterproductive Work Behavior (CWB)

 Counterproductive work behavior:
 Absenteeism: the more satisfied you are, the
less likely you are to miss work.
 Turnover:

14 15

The Theory of Cognitive

Dissonance
Cognitive Dissonance
•Any incompatibility between two or more attitudes or
between behavior and attitudes.
•Individuals seek to reduce this gap, or “dissonance”

Desire to reduce dissonance depends on

• Importance of elements creating dissonance
• Degree of individual influence over elements
• Rewards involved in dissonance

16

3
 Learning Objectives
Personalities and  Describe personality, the way it is measured, and the factors
that shape it.
Values  Describe the strengths and weaknesses of the Myers-Briggs Type
Indicator (MBTI) personality framework and the Big Five model.
 Discuss how the concepts of core self-evaluation (CSE), self-
monitoring, and proactive personality contribute to the
Instructor: Pham Thi Bich Ngoc, PhD understanding of personality.
 Describe how the situation affects whether personality predicts
behavior.
Contrast terminal and instrumental values.
 Describe the differences between person-job fit and person-
organization fit.
 Compare Hofstede’s five value dimensions and the GLOBE
framework.

Describe Personality, the Way It Is Measured, and the Describe Personality, the Way It Is Measured, and the
Factors that Shape It (1 of 4) Factors that Shape It (2 of 4)

 Defining Personality  Measuring Personality

 Personality is a dynamic concept  Managers need to know how to measure
describing the growth and personality.
development of a person’s whole
psychological system.  Personality
tests are useful in hiring decisions
and help managers forecast who is best for a
 The sum total of ways in which an
individual reacts to and interacts job.
with others.  The most common means of measuring personality
 Personality consists of stable is through self-report surveys.
characteristics which explain why
a person behaves in a particular
way

Describe Personality, the Way It Is Measured, and the Describe Personality, the Way It Is Measured, and the
Factors that Shape It (3 of 4) Factors that Shape It (4 of 4)

 Personality Determinants
 Early research tried to identify and label enduring personality
 Ispersonality the result of heredity or characteristics.
environment?  Shy, aggressive, submissive, lazy, ambitious,
 Heredityrefers to those factors that were loyal, and timid.
determined at conception.  These are personality traits.
 The heredity approach argues that the
ultimate explanation of an individual’s
personality is the molecular structure of the
genes, located in the chromosomes.

1

The Myers-Briggs Type
Indicator
Personality Types
• Extraverted or Introverted (E or I)
• Sensing or Intuitive (S or N)
• Thinking or Feeling (T or F)
• Judging or Perceiving (J or P)
Myers-Briggs Type Indicator
Sensing Characteristics
 Mentally live in the Now, attending to
present opportunities
 Using common sense and creating
practical solutions is automatic-
instinctual
 Memory recall is rich in detail of facts
and past events
 Best improvise from past experience
 Like clear and concrete information;
dislike guessing when facts are
"fuzzy"
Myers-Briggs Type Indicator
Judging Characteristics
 Plan many of the details in
advance before moving into
action.
 Focus on task-related action;
complete meaningful segments
before moving on.
 Work best and avoid stress when
keep ahead of deadlines.
 Naturally use targets, dates and
standard routines to manage life.
Intuitive Characteristics
➢ Mentally live in the Future, attending to
future possibilities
➢ Using imagination and creating/inventing
new possibilities is automatic-instinctual
➢ Memory recall emphasizes patterns,
contexts, and connections
➢ Best improvise from theoretical
understanding
➢ Comfortable with ambiguous, fuzzy data
and with guessing its meaning
Perceiving Characteristics
➢ Comfortable moving into action
without a plan; plan on-the-go.
➢ Like to multitask, have variety,
mix work and play.
➢ Naturally tolerant of time
pressure; work best close to the
deadlines.
➢ Instinctively avoid commitments
which interfere with flexibility,
freedom and variety
Myers-Briggs Type Indicator
Extraverted Characteristics
 Act first, think/reflect later
 Feel deprived when cutoff from
interaction with the outside world
 Usually open to and motivated
by outside world of people and
things
 Enjoy wide variety and change in
people relationships
Myers-Briggs Type Indicator
Thinking Characteristics
 Instinctively search for facts and
logic in a decision situation
 Naturally notices tasks and work
to be accomplished.
 Easily able to provide an
objective and critical analysis
 Accept conflict as a natural,
normal part of relationships with
people.
Introverted Characteristics
➢ Think/reflect first, then Act
➢ Regularly require an amount
of "private time" to recharge
batteries
➢ Motivated internally, mind is
sometimes so active it is
"closed" to outside world
➢ Prefer one-to-one
communication and
relationships
Feeling Characteristics
➢ Instinctively employ personal
feelings and impact on people in
decision situations
➢ Naturally sensitive to people needs
and reactions
➢ Naturally seek consensus and
popular opinions
➢ Unsettled by conflict; have almost a
toxic reaction to disharmony.
The Big Five Model
2
 Traits That Matter Most to Business Success at Buyout
Short Form for the IPIP-NEO Companies
 http://www.personal.psu.edu/~j5j/IPIP/ipipneo120.htm

Most Important Less Important

Persistence Strong oral communication
Attention to detail Teamwork
Efficiency Flexibility/adaptability
Analytical skills Enthusiasm
Setting high standards Listening skills

Model of How Big Five Traits Influence OB Criteria Other Personality Traits Relevant to OB

 The Dark Triad Machiavellianism: the degree to which an individual is

pragmatic, maintains emotional distance, and believes that ends can
justify means.
Narcissism: the tendency to be arrogant, have a grandiose sense of self-importance,
require excessive admiration, and have a sense of entitlement.
Psychopathy: the tendency for a lack of concern for others and a lack of guilt or
remorse when their actions cause harm.

Other Personality Traits Relevant to OB

Other Personality Traits Relevant to OB

 An emerging framework to study dark side traits:
 First,
antisocial people are indifferent and callous
toward others.
 Second, borderline people have low self-esteem
and high uncertainty.
 Third, schizotypal individuals are eccentric and
disorganized.
 Fourth, obsessive compulsive people are
perfectionists and can be stubborn, yet they
attend to details, carry a strong work ethic, and
may be motivated by achievement.
 Fifth,avoidant individuals feel inadequate and
hate criticism.

3
Other Personality Traits Relevant to OB Other Personality Traits
 Core Self-Evaluation: bottom line conclusions individuals have about
Relevant to OB
their capabilities, competence, and worth as a person.
 Self-Monitoring: measures an individual’s ability to adjust his or her  Locus of control
behavior to external, situational factors.  Machiavellianism
 Proactive Personality: people who identify opportunities, show  Self-esteem
initiative, take action, and persevere until meaningful change occurs.
 Self-monitoring
 Propensity for risk taking

Locus of Control Machiavellianism

Conditions Favoring High Machs

• Direct interaction
• Minimal rules and regulations
• Distracting emotions

Self-Esteem and Self-Monitoring Risk-Taking

 High Risk-taking Managers

 Make quicker decisions.
 Use less information to make decisions.
 Operate in smaller and more entrepreneurial organizations.
 Low Risk-taking Managers
 Are slower to make decisions.
 Require more information before making decisions.
 Exist in larger organizations with stable environments.
 Risk Propensity
 Aligning managers’ risk-taking propensity to job requirements
should be beneficial to organizations.

4
 The Situation, Personality, and Behavior (1 of 2)
Contrast Terminal and Instrumental Values
(1 of 3)
 Situation strength theory: indicates that the way personality translates
into behavior depends on the strength of the situation.
 Values: basic convictions about what is right, good, or desirable.
 The degree to which norms, cues, or standards
 Value system: ranks values in terms of intensity.
dictate appropriate behavior.
 The Importance and Organization of Values
 Clarity: degree to which cues about work duties and
responsibilities are available and clear  Values:
 Consistency: the extent to which cues regarding work duties  Lay the foundation for understanding of
and responsibilities are compatible with one another
attitudes and motivation.
 Constraints: the extent to which individuals’ freedom to
decide or act is limited by forces outside their control  Influence attitudes and behaviors.
 Consequences: the degree to which decisions or actions have
important implications for the organization or its members,
clients, supplies, and so on.

5-24

Contrast Terminal and Instrumental Values Contrast Terminal and Instrumental Values
(2 of 3) (3 of 3)

Dominant Work Values in Today’s Workforce

 Terminal vs. Instrumental Values

Entered the Approximate

Cohort Workforce Current Age Dominant Work Values
 Terminal values: desirable
Boomers 1965–1985 50s to 70s Success, achievement,
end-states of existence. ambition, dislike of
authority; loyalty to career
Xers 1985–2000 Mid-30s to 50s Work-life balance, team-
 Instrumental values: oriented, dislike of rules;
preferred modes of loyalty to relationships
behavior or means of Millennials 2000 to present To mid-30s Confident, financial
success, self-reliant but
achieving terminal values. team-oriented; loyalty to
both self and relationships

Values in
Values in the Rokeach
the Rokeach Survey
Survey (cont’d)

Source: M. Rokeach, The Nature of Human Source: M. Rokeach, The Nature of Human
Values (New York: The Free Press, 1973). Values (New York: The Free Press, 1973).

5

Person-Job Fit vs. Person-Organization Fit
of 3)
Holland’s Typology of Personality and Congruent Occupations
Type
Realistic: Prefers physical activities
that require skill, strength, and
coordination
Investigative: Prefers activities that
involve thinking, organizing, and
understanding
Social: Prefers activities that involve
helping and developing others
Conventional: Prefers rule-regulated,
orderly, and unambiguous activities
Enterprising: Prefers verbal activities
in which there are opportunities to
influence others and attain power
Artistic: Prefers ambiguous and
unsystematic activities that allow
creative expression
Person-Job Fit vs. Person-Organization Fit
(3 of 3)
 Other Dimensions of Fit
– Although person-job fit and person-organization
fit are considered the most salient dimensions for
workplace outcomes, other avenues of fit are
worth examining.
▪ Person-group fit
▪ Person-supervisor fit
Importance of Values
 Provide understanding of the attitudes, motivation, and behaviors of
individuals and cultures.
 Influence our perception of the world around us.
 Represent interpretations of “right” and “wrong.”
 Imply that some behaviors or outcomes are preferred over others.
Mean Value Rankings of
Executives, Union Members,
and Activists
Source: Based on W. C. Frederick and J. Weber, “The Values of
Corporate Managers and Their Critics: An Empirical Description and
Normative Implications,” in W. C. Frederick and L. E. Preston (eds.)
Business Ethics: Research Issues and Empirical Studies (Greenwich,
CT: JAI Press, 1990), pp. 123–44.
(1 Person-Job Fit vs. Person-Organization Fit (2
of 3)
 Person-Organization Fit
 People high on extraversion fit well with
Personality Characteristics Congruent Occupations
Shy, genuine, persistent, stable, Mechanic, drill press operator,
aggressive and team-oriented cultures.
conforming, practical assembly-line worker, farmer
 People high on agreeableness match up better
Analytical, original, curious, Biologist, economist, with a supportive organizational climate than one
independent mathematician, news reporter
focused on aggressiveness.
Sociable, friendly, cooperative, Social worker, teacher,
understanding counselor, clinical psychologist  People high on openness to experience fit better in
Conforming, efficient, practical, Accountant, corporate organizations that emphasize innovation rather
unimaginative, inflexible manager, bank teller, file clerk
than standardization.
Self-confident, ambitious, Lawyer, real estate agent,
energetic, domineering public relations specialist,
small business manager
Imaginative, disorderly, Painter, musician, writer,
idealistic, emotional, interior decorator
impractical
Hofstede’s Five Value Dimensions
 Hofstede’s Framework
 Power distance
 Individualism versus collectivism
 Masculinity versus femininity
 Uncertainty avoidance
 Long-term versus short-term
orientation
6
 Hofstede’s Framework for Hofstede’s Framework
Assessing Cultures (cont’d)
Power Distance
The extent to which a society accepts that Individualism Vs. Collectivism
power in institutions and organizations is A tight social framework in
distributed unequally. The degree to which
people prefer to act as which people expect
Low distance: relatively equal power individuals rather than others in groups of which
between those with status/wealth and those a member of groups. they are a part to look
without status/wealth after them and protect
them.
High distance: extremely unequal power
distribution between those with
status/wealth and those without
status/wealth

Hofstede’s Framework Hofstede’s Framework

(cont’d)
Masculinity Vs.
The extent to which the
society values work roles
of achievement, power,
and control, and where
assertiveness and
materialism are also
valued.
(cont’d)
Uncertainty Avoidance
The extent to which a society feels threatened by
Femininity uncertain and ambiguous situations and tries to
avoid them.
The extent to which •High Uncertainty Avoidance:
there is little Society does not like
differentiation ambiguous situations & tries to
avoid them.
between roles for
men and women.
•Low Uncertainty Avoidance:
Society does not mind
ambiguous situations &
embraces them.

Hofstede’s Framework The GLOBE Framework for Assessing Culture

(cont’d)
Long-term Orientation Vs.
A national culture
attribute that
emphasizes the future,
thrift, and persistence.
 The Global Leadership and Organizational
Behavior Effectiveness (GLOBE) research
Short-term Orientation program updated Hofstede’s research.
A national culture attribute  Data from 825 organizations and 62 countries.
that emphasizes the
present and the here and  Used variables similar to Hofstede’s.
now.  Added some news ones.

7
 Perception and Individual
Decision Making
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc
National Economics University

Learning Objectives

 Explain the factors that influence perception.

 Describe attribution theory.
 Explain the link between perception and decision
making.
 Contrast the rational model of decision making with
bounded rationality and intuition.
 Explain how individual differences and
organizational constraints affect decision making.
 Contrast the three ethical decision criteria.
 Describe the three-stage model of creativity.

What Is Perception, and

Why Is It Important?
• People’s behavior is based
on their perception of what
reality is, not on reality
itself.
• The world as it is perceived
is the world that is
behaviorally important.
….A process by which we
assign causes or motives to
explain people’s behavior

….an explanation of the cause of behavior:

how people explain the causes of their own
and other people’s behavior

1
 Factors That Influence
Perception

Attribution Theory

That determination however depends on 3 factors:

Distinctiveness: is the extent to which the same person behaves in the
same fashion in other situations
Consensus: is the extent to which other people in the same situation
behave in the same fashion
Consistency: is the extent to which the same person behaves in the same
fashion at different times

Explain Attribution Theory (3

of 10)

2
 Errors and Biases in
Attributions

Errors and Biases in

Attributions (cont’d)

Frequently Used Shortcuts

in Judging Others

3
 Frequently Used Shortcuts
in Judging Others

Recency Effects
The tendency to remember
recent information. If the recent
information is negative, the
person or object is evaluated
negatively

Frequently Used Shortcuts

in Judging Others

10

Applications of Shortcuts
in Organizations
 Employment Interview
 Evidence
indicates that interviewers make
perceptual judgments that are often inaccurate.
 Interviewers generally draw
early impressions that
become very quickly entrenched.
 Studies indicate that most interviewers’ decisions
change very little after the first four or five minutes
of the interview.

11

4
 Applications of Shortcuts
in Organizations

 Performance Expectations
 Evidence demonstrates that people will attempt
to validate their perceptions of reality, even
when those perceptions are faulty.
 Self-fulfilling prophecy,
or the Pygmalion
effect, characterizes the fact that people’s
expectations determine their behavior.
 Expectations become reality.

12

Applications of Shortcuts
in Organizations
 Performance Evaluation
 An employee’s performance appraisal is very much
dependent upon the perceptual process.
 Many jobs are evaluated in subjective terms.
 Subjective measures are problematic because of
selective perception, contrast effects, halo effects, and
so on.

13

Link Between Perception

and Decision Making

 Individuals make decisions – choosing from two or more

alternatives.
 Decision making occurs as a reaction to a problem.
 There is a discrepancy between some current state of
affairs and some desired state, requiring
consideration of alternative courses of action.
 One person’s problem is another’s satisfactory
state of affairs.

14

5
 Link Between Perceptions and Individual Decision
Making

15

Steps in the Rational

Decision-Making Model

16

Rational Model of Decision

Making
 Assumptions of the Rational Model
 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.
 Most decisions in the real world don’t follow the rational
model.

17

6
 Bounded Rationality

 Most people respond to a complex problem

by reducing it to a level at which it can be
readily understood.
 People satisfice – they seek solutions that
are satisfactory and sufficient.
 Individuals operate within the confines of
bounded rationality.
 They construct simplified models that
extract the essential features.

18

How does bounded rationality

work?
 Once a problem is identified, the search for
criteria and options begins.
A limited list of the more conspicuous
choices is identified.
 The decision maker then reviews the list,
looking for a solution that is “good
enough.”

19

Intuition

 Intuitive decision making occurs outside

conscious thought; it relies on holistic
associations, or links between disparate
pieces of information, is fast, and is affectively
charged, meaning it usually engages the
emotions.
 The key is neither to abandon nor rely solely
on intuition, but to supplement it with
evidence and good judgment.

20

7
 Reducing Biases and Errors
 Focus on Goals. Without goals, you can’t be rational, you
don’t know what information you need, you don’t know
which information is relevant and which is irrelevant, you’ll
find it difficult to choose between alternatives, and you’re
far more likely to experience regret over the choices you
make.
Clear goals make decision making easier and help you
eliminate options that are inconsistent with your interests.

21

Reducing Biases and Errors

 Look for Information That Disconfirms Your Beliefs. One of the most
effective means for counteracting overconfidence and the
confirmation and hindsight biases is to actively look for
information that contradicts your beliefs and assumptions. When
we overtly consider various ways we could be wrong, we
challenge our tendencies to think we’re smarter than we actually
are.
 Don’t Try to Create Meaning out of Random Events. The
educated mind has been trained to look for cause-and-effect
relationships. When something happens, we ask why. And when
we can’t find reasons, we often invent them. You have to accept
that there are events in life that are outside your control. Ask
yourself if patterns can be meaningfully explained or whether
they are merely coincidence. Don’t attempt to create meaning
out of coincidence.

22

Reducing Biases and Errors

 Increase Your Options. No matter how many options

you’ve identified, your final choice can be no better
than the best of the option set you’ve selected. This
argues for increasing your decision alternatives and for
using creativity in developing a wide range of diverse
choices. The more alternatives you can generate, and
the more diverse those alternatives, the greater your
chance of finding an outstanding one

23

8
 Common Biases and Errors
in Decision Making
 Overconfidence Bias: individuals whose
intellectual and interpersonal abilities are
weakest are most likely to overestimate their
performance and ability.
 Anchoring Bias: fixating on initial information as
a starting point and failing to adequately adjust
for subsequent information.

24

Common Biases and Errors

in Decision Making
 Confirmation Bias: type of selective perception.
 Seek out information that reaffirms past
choices, and discount information that
contradicts past judgments.
 Availability Bias: tendency for people to base judgments
on information that is readily available.

25

Common Biases and Errors

in Decision Making
 Escalation of Commitment: staying with a decision even
when there is clear evidence that it’s wrong.
– Likely to occur when individuals view
themselves as responsible for the outcome.
 Randomness Error: our tendency to believe we can predict
the outcome of random events.
 Decision making becomes impaired when we
try to create meaning out of random events.

26

9
 Common Biases and Errors
in Decision Making
 Risk Aversion: the tendency to prefer a sure thing instead of a
risky outcome.
– Ambitious people with power that can be taken
away appear to be especially risk averse.
– People will more likely engage in risk-seeking
behavior for negative outcomes, and risk-averse
behavior for positive outcomes, when under
stress.
 Hindsight Bias: the tendency to believe falsely that one has
accurately predicted the outcome of an event, after that
outcome is actually known.

27

Individual Differences,
Organizational Constraints, and
Decision Making (1 of 2)
 Individual Differences
 Personality
 Conscientiousness
 High self-esteem
 Gender
 Rumination
 Mental Ability
 Cultural Differences
 Nudging

28

Individual Differences,
Organizational Constraints, and
Decision Making (2 of 2)
 Organizational Constraints
 Performance Evaluation Systems
 Reward Systems
 Formal Regulations
 System-Imposed Time Constraints
 Historical Precedents

29

10
 Describe the Three-Stage Model of Creativity (1 of 2)

 Creativity is the ability to produce

novel and useful ideas.
 These are ideas that are
different from what has
been done before, but that
are also appropriate to the
problem.

30

Common Attributes of
Creative Individuals
 Background Experiences and Creativity
 Personal Traits and Creativity: openness, an attraction to
complexity, high levels of energy, autonomy, self-
confidence
 Cognitive Abilities and Creativity:
 Individual’s power to think intelligently and to analyze
situations and data effectively.
 Intelligence: precondition for individual creativity
 Creativity links with the ability to think divergently (see
differences between situations) and convergently (see
similarities between situations)

31

How to facilitate individual

creativity…
⚫ Leaders

⚫ Support new ideas

⚫ Good listener

⚫ Favourable and cooperative working

environment

▪ Respect diversity

▪ Friendly and cooperative

▪Trust

32

11
 Motivation Concepts
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc
NEU

Learning Objectives
 Describe the three key elements of motivation.
 Compare the early theories of motivation.
 Contrast the elements of self-determination theory
and goal-setting theory.
 Demonstrate the differences among self-efficacy
theory, reinforcement theory, equity theory, and
expectancy theory.
 Identify the implications of employee job
engagement for managers.
 Describe how the contemporary theories of
motivation complement one another.

Defining Motivation
 Motivation is the processes that account for an
individual’s intensity, direction, and persistence of
effort toward attaining a goal.
 The level of motivation varies both between
individuals and within individuals at different
times.
Three key elements:
 Intensity
 Direction
 Persistence

(c) 2008 Prentice-Hall, All rights reserved. 1

 Motivation framework

Need-based Theories of
Motivation
These early theories may not be valid, but they do
form the basis for contemporary theories and are
still used by practicing managers.

Maslow’s Hierarchy of Needs Theory

Alderfer’s ERG (Existence, Relatedness, and
Growth)
Herzberg’s Two-Factor Theory
McClelland’s Theory of Needs

Maslow’s Hierarchy of
Needs
There is a hierarchy of five needs. As each need is
substantially satisfied, the next need becomes dominant.

Assumptions Self-Actualization
Higher Order  Individuals
Esteem
cannot move to
Internal the next higher
Social level until all
needs at the
Lower Order Safety current (lower)
level are satisfied
External Physiological
 Must move in
hierarchical
order

(c) 2008 Prentice-Hall, All rights reserved. 2

  Maslow’s need theory has received wide recognition,
particularly among practicing managers.
 Itis intuitively logical and easy to understand
and some research has validated it.
 However, most research does, especially when
the theory is applied to diverse cultures.

Herzberg’s Two-Factor
Theory
Hygiene
Motivators
Factors

Extrinsic and Company Intrinsic and

Growth
Policies
Related to Related to
Dissatisfaction Satisfaction
Salary Responsibility

Work
Achievement
Conditions

Compare the Early Theories of

Motivation
Contrasting View of Satisfaction and Dissatisfaction

(c) 2008 Prentice-Hall, All rights reserved. 3

 Herzberg’s Two-Factor
Theory
 Assumes that motivation, as a construct, has two separate
dimensions:
 Motivation factors which affect satisfaction
 Hygiene factors which determine dissatisfaction
 Assumes motivation occurs through job enrichment once
hygiene factors are addressed

Criticisms of Herzberg’s theory

➢ Limited because it relies on self-reports.
➢ Reliability of methodology is questioned.
➢ No overall measure of satisfaction was utilized.

10

Alderfer’s ERG Theory

A reworking of Maslow to fit empirical research.

Three groups of core needs:
 Existence (Maslow: physiological and safety)
 Relatedness (Maslow: social and status)
 Growth (Maslow: esteem and self-actualization)
Removed the hierarchical assumption
 Can be motivated by all three at once

11

(c) 2008 Prentice-Hall, All rights reserved. 4

 McClelland’s Three Needs
Theory
 Need for Achievement (nAch)
 The drive to excel, to achieve in relation to a set of
standards, to strive to succeed
 Need for Power (nPow)
 The need to make others behave in a way that they
would not have behaved otherwise
 Need for Affiliation (nAff)
 The desire for friendly and close interpersonal
relationships
 People have varying levels of each of the three
needs.
 Hard to measure

12

Performance Predictions
for High nAch
 People with a high need for achievement are
likely to:
 Prefer to undertake activities with a 50/50 chance
of success, avoiding very low- or high-risk situations
 Be motivated in jobs that offer high degree of
personal responsibility, feedback, and moderate risk
 Not necessarily make good managers – too
personal a focus. Most good general managers do
NOT have a high nAch
 Need high level of nPow and low nAff for
managerial success
 Good research support, but it is not a very
practical theory

13

Parallels among the Need theories of

Motivation
Motivation Factors
Achievement Need for
Self-actualization
Work itself Achievement
Needs
Responsibility
Advancement Growth Needs

Self-Esteem Need for power

Recognition
Respect of others

Hygience Factors Social

Supervision Relatedness
Needs
Interpersonal relationship Needs
Need for
Job security Affiliation
Security
Company Policies

Existence Needs
Pay
Physiological Needs
Working Conditions

14

(c) 2008 Prentice-Hall, All rights reserved. 5

 Process-based and Contemporary Theories
of Motivation
 Self-determination theory
 Goal-Setting Theory
 Self-Efficacy Theory
 Equity Theory
 Reinforcement Theory
 Expectancy Theory

15

Self-Determination Theory
 People prefer to feel they have control over
their actions.
 People paid for work feel less like they want
to do it and more like they have to it.
 Proposes that in addition to being driven by a
need for autonomy, people seek ways to
achieve competence and positive
connections to others.

16

Self-Determination Theory
 When extrinsic rewards are used as payoffs for performance,
employees feel they are doing a good job.
 Self-determination theory acknowledges that extrinsic rewards
can improve even intrinsic motivation under specific
circumstances.

17

(c) 2008 Prentice-Hall, All rights reserved. 6

 Self-Determination Theory
 What does self-determination theory suggest for providing
rewards?
 Self-concordance: considers how strongly people’s reasons for
pursuing goals are consistent with their interests and core
values.

18

Goal-Setting Theory

 Goal-Setting Theory
 Goals tell an
employee what needs to be
done and how much effort is needed.
 Evidence suggests:
 Specific goals increase performance.
 Difficult
goals, when accepted, result in higher
performance than do easy goals.
 Feedback leads to higher performance than
does non-feedback.

19

Goal-Setting Theory
 Three other factors influencing the goals-performance
relationship:
 Goal commitment
 Task characteristics
 National culture

20

(c) 2008 Prentice-Hall, All rights reserved. 7

 Goal-Setting Theory
 People differ in the way they regulate their thoughts and
behaviors.
 Those with a promotion focus strive for
advancement and accomplishment and
approach conditions that move them closer
toward desired goals.
 Those with a prevention focus strive to fulfill duties
and obligations and avoid conditions that pull
them away from desired goals.

21

Goal Setting and

Motivation
 Basic Premise:
 That specific and difficult goals, with self-generated
feedback, lead to higher performance
 Purposes of Setting Goals in Organizations
 To provide a useful framework for managing
motivation to enhance employee performance
 To serve management as a control device for
monitoring of how well the organization is
performing
 Self-Efficacy
 The extent to which we believe we can accomplish
our goals even if we failed to do so in the past

22

Expanded Goal Setting Theory

 The Goal-Setting Process
 Goal-directed effort is a function of goal attributes:
1. Goal difficulty: The extent to which a goal is challenging, requires
effort, and is attainable
 Difficult Goals:
 Focus and direct attention
 Energize the person to work harder
 Difficulty increases persistence
 Force people to be more effective and efficient
2. Goal specificity: The clarity and precision of a goal
3. Goal acceptance: the extent to which a person accepts a goal as
his/her own
4. Goal commitment: the extent to which a person is interested in
reaching a goal

23

(c) 2008 Prentice-Hall, All rights reserved. 8

 Source: Reprinted from ORGANIZATIONAL DYNAMICS, Autumn
1979, Gary P. Latham et al., "The Goal-Setting Theory of Motivation",
Copyright 1979, with permission from Elsevier.

24

Broader Perspectives on
Goal Setting
 Management by Objectives (MBO)
 A collaborative goal-setting process through which
organizational goals cascade down throughout the
organization
 Requires customizing to each organization
 Can be effective for managing reward systems where the
manager has individual interactions with each employee

25

Self-Efficacy Theory

 An individual’s belief that he or she is capable of

performing a task.
 Higher efficacy is related to:
 Greater confidence
 Greater persistence in the face of difficulties
 Better response to negative feedback (work harder)
 Self-Efficacy complements Goal-Setting Theory.

26

(c) 2008 Prentice-Hall, All rights reserved. 9

 Increasing Self-Efficacy

 Enactive mastery
 Most important source of efficacy
 Gaining relevant experience with task or job
 “Practice makes perfect”
 Vicarious modeling
 Increasing confidence by watching others perform the task
 Most effective when observer sees the model to be similar to him-
or herself
 Verbal persuasion
 Motivation through verbal conviction
 Pygmalion and Galatea effects - self-fulfilling prophecies
 Arousal
 Getting “psyched up” – emotionally aroused – to complete task
 Can hurt performance if emotion is not a component of the task

27

Self-Efficacy Theory

Joint Effects of Goals and Self-Efficacy on Performance

Source: Based on E. A. Locke and G. P. Latham, “Building a Practically Useful

Theory of Goal Setting and Task Motivation: A 35-Year Odyssey,” American
Psychologist (September 2002): 705–17.

28

Self-Efficacy Theory

 Implications of self-efficacy theory:

 The best way for a manager to use verbal
persuasion is through the Pygmalion effect.
A form of self-fulfilling prophecy – believing in
something can make it true.
 Training programs often make use of enactive
mastery by having people practice and build
their skills.

29

(c) 2008 Prentice-Hall, All rights reserved. 10

 Reinforcement Theory

 Reinforcement theory: behavior is a function of its

consequences.
 Reinforcement conditions behavior.
 Behavior is environmentally caused.
 Goal setting is a cognitive approach: an individual’s
purposes direct his or her action.
 Operant conditioning theory: people learn to behave to get
something they want or to avoid something they don’t
want.
 B.F. Skinner’s behaviorism.

30

Reinforcement Theory

 focuses on a behavioral approach rather than a

cognitive one.
 Behavior is environmentally caused
 Thought (internal cogitative event) is not important
 Feelings, attitudes, and expectations are ignored
 Behavior is controlled by its consequences – reinforcers
 Behavior is a function of its consequences
 Reinforcement is the consequence of behavior
 Is not a motivational theory but a means of analysis of
behavior
 Reinforcement strongly influences behavior but is not
likely to be the sole cause

31

Equity Theory

32

(c) 2008 Prentice-Hall, All rights reserved. 11

 Equity Theory

 When employees perceive an inequity, they can be

predicted to make one of six choices:
 Change their inputs.
 Change their outcomes.
 Distort perceptions of self.
 Distort perceptions of others.
 Choose a different referent.
 Leave the field.

33

Equity Theory

Model of Organizational Justice

34

Expectancy Theory

 Expectancy theory: a tendency to act in a certain way

depends on an expectation that the act will be followed by
a given outcome and on the attractiveness of that outcome
to the individual.
 Three relationships:
 Effort-performance relationship

 Performance-reward relationship

 Rewards-personal goals relationship

35

(c) 2008 Prentice-Hall, All rights reserved. 12

 Expectancy Theory

36

Expectancy Theory

 Expectancy theory helps explain why a lot of workers aren’t

motivated and do only the minimum.
 Three questions employees need to answer in the affirmative if
their motivation is to be maximized:
 If I give maximum effort, will it be recognized in
my performance appraisal?
 If I get a good performance appraisal, will it lead
to organizational rewards?
 If I’m rewarded, are the rewards attractive to
me?

37

Expectancy Relationships
(Linkages)
 Effort–performance

 The perceived probability that exerting a given amount of

effort will lead to performance results

 Performance–reward

 The belief that performing at a particular level will lead to the

attainment of a desired outcome

 Attractiveness

 The importance placed on the potential outcome or reward

that can be achieved on the job.

38

(c) 2008 Prentice-Hall, All rights reserved. 13

 Expectancy Theory
Factor influence Effort-Performance:
 Level of expectancy: belief/perception that one’s effort
will result attainment of desired performance goals.
 Factors affecting expectancy perception:

 self-efficacy

 Goal difficulty

39

Expectancy Theory
Factor influence Performance-Reward:
 Instrumentality: Motivation depend on the perceived
effective relationship between given input and the
expected outcome.

 Factor influence the individual’s instrumentality

perception:
 Trust
 Control:
 Policies

40

Expectancy Theory
Factor influence Reward-Personal Goal:
 Valence: value placed on outcomes (intrinsic and
extrinsic). It is a function of individual’s needs, goals, values
and source of motivation

 Factors influencing valence for outcome:

 Values

 Needs

 Goals

 Preferences

41

(c) 2008 Prentice-Hall, All rights reserved. 14

 Implications for managers of Expectancy
Theory
Managers should give attention to a
number of factors:
 Use rewards appropriate in terms of individual
performance

 Attempt to establish clear relationships between effort-

performance and rewards

 Establish clear procedures for the evaluation of individual

levels of performance

42

43

(c) 2008 Prentice-Hall, All rights reserved. 15

 Motivation: From Concepts to
Applications
INSTRUCTOR: ASSOC. PROF. DR., PHAM THI BICH NGOC
NEU

Learning Objectives
 Describe how the job characteristics model motivates
by changing the work environment.
 Compare the main ways jobs can be redesigned.
 Explain how specific alternative work arrangements can
motivate employees.
 Describe how employee involvement measures can
motivate employees.
 Demonstrate how the different types of variable-pay
programs can increase employee motivation.
 Show how flexible benefits turn benefits into motivators.
 Identify the motivational benefits of intrinsic rewards.

Job Characteristics Model

(JCM)
 Hackman and Oldham’s concept that any job can be
described through five core job dimensions:
 Skill variety – Requirements for different tasks in
the job.
 Task identity – Completion of a whole piece of
work.
 Task significance – The job’s impact on others.
 Autonomy – Level of discretion in decision
making.
 Feedback – Amount of direct and clear
information on performance.
 The way elements in a job are organized (job design)
impacts motivation, satisfaction, and performance.

(c) 2008 Prentice-Hall, All rights reserved. 1

 The Job Characteristics Model

Employee growth-need strength moderates the relationships.

Motivating Potential Score (MPS)

 The core dimensions of the job characteristics model (JCM)
can be combined into a single predictive index called the
motivating potential score (MPS).
 People who work on jobs with high core dimensions are
generally more motivated, satisfied, and productive.
 Job dimensions operate through the psychological states
in influencing personal and work outcome variables rather
than influencing them directly.

 Evidence supports the JCM concept that the presence of a

set of job characteristics does generate higher and more
satisfying job performance.
 While the JCM framework is supported by research, the MPS
model isn’t practical and doesn’t work well.

How Can Jobs Be Redesigned?

 Job Rotation
 The periodic shifting of a worker from
one task to another
 Systematically moving workers from one
job to another in an attempt to minimize
monotony and boredom
 Job Enlargement
 The horizontal expansion of jobs
 Giving workers more tasks to perform
 Job Enrichment
 The vertical expansion of jobs
 Giving workers a greater variety of tasks
to perform and more control over how to
perform them

(c) 2008 Prentice-Hall, All rights reserved. 2

 How Can Jobs Be Redesigned?

 Repetitive jobs provide little variety, autonomy, or motivation.

 Job Rotation
 Referred to as cross-training.
 Periodic shifting from one task to another.
 Strengths: reduces boredom, increases
motivation, and helps employees better
understand their work contributions.
 Weaknesses: creates disruptions, requires extra
time for supervisors addressing questions and
training time, and reduced efficiencies.

Job enrichments

 Allow employees to plan their own

work schedules.
 Allow employees to decide how
the work should be performed.
 Allow employees to check their
own work.
 Allow employees to learn new skills.

Guidelines for Enriching a

Job

(c) 2008 Prentice-Hall, All rights reserved. 3

 Flexible Work Arrangements
 Variable Work Schedules
 Compressed work schedule
 Employees work a full forty-hour week in fewer than
the traditional five days
 Flexible work schedules (flextime)
 Employees gain more personal control over the hours they work
each day

 Job Sharing
 Part-time employees share one full-time job
 Telecommuting
 Employees spend part of their time working off-site

Alternative Work
Arrangements
Job Sharing
 Two or more people split a 40-hour-a-week job.
 Declining in use.
 Can be difficult to find compatible pairs of
employees who can successfully coordinate
the intricacies of one job.
 Increasesflexibility and can increase
motivation and satisfaction when a 40-hour-a-
week job is just not practical.

10

Alternative Work Arrangements

 Telecommuting
 Employees do their work at home at least two days a week
on a computer that is linked to their office.
 The Virtual Office
 Employees work out of their home on a relatively permanent
basis.
 Some well-known organizations actively discourage
telecommuting, but for most organizations it remains
popular.
 Typical Telecommuting Jobs
 Professional and other knowledge-related tasks
 Routine information-handling tasks
 Mobile activities

11

(c) 2008 Prentice-Hall, All rights reserved. 4

 Employee Involvement

Employee Involvement: a participative process

that uses employees’ input to increase their
commitment to the organization’s success.
Examples of Employee Involvement Programs
 Participative management
 Representative participation

12

Employee Involvement

Participative management
 Joint decision making.
 Trust and confidence in leaders is essential.
 Studies of the participation-performance have
yielded mixed results.

13

Employee Involvement

Representative participation
 Workers are represented by a small group of
employees who actually participate in decision
making.
– Almost every country in Western Europe requires
representative participation.
– The two most common forms:
▪ Works councils
▪ Board representatives

14

(c) 2008 Prentice-Hall, All rights reserved. 5

 Employee Involvement
and Motivation
 Early Perspectives on Employee Involvement
 In the beginning:
 Employee satisfaction is a result of their participation
in decision-making
 Recently:
 Employees are valued human resources who can
contribute to organizational effectiveness
 Their participation is valued

15

Employee Involvement
and Motivation
 Areas of Employee Involvement
 Personal job-related decisions
 Administrative matters (e.g., work schedules)
 Product quality decisions
 Techniques and Issues in Employee Involvement
 Empowerment through work teams (quality circles)
 Decentralization of decision-making and increased
delegation

16

Empowerment

 Empowering others by:

 Articulating a clear vision and
goals

 Providing support

 Providing necessary resources

 Providing good information

17

(c) 2008 Prentice-Hall, All rights reserved. 6

 Requirements for Effective
Empowerment
 An organization must be:
 Sincere in its efforts to spread power and autonomy to
lower levels of the organization
 Committed to maintaining participation and
empowerment
 Systematic and patient in its efforts to empower workers
 Prepared to increase its commitment to training

18

Delegation
 Delegation is the process of assigning tasks and granting
sufficient authority for their accomplishment.
 Delegation is a process where a manager:
 Determines the results expected
 Allocates duties to subordinates
 Grants them authority to enable those duties to be carried
out
 Holds them responsible for the completion of the work
and achievement results.
The ultimate accountability for the task remains with the
manager.

19

Problems of Delegation
 Managers are reluctant to delegate
because of:
 Low confidence and trust

 The burden of accountability for the

mistakes of subordinates

 Poor control and communication system

 Lack of understanding of what delegation

involves

 Lack of training and development of

managers in delegation skills

 Fear of losing power

20

(c) 2008 Prentice-Hall, All rights reserved. 7

 Variable-Pay Programs
What to Pay:
 Complex process that entails balancing internal
equity and external equity.
 Some organizations prefer to pay leaders by
paying above market.
 Paying more may net better-qualified and more
highly motivated employees who may stay with
the firm longer.

21

Variable-Pay Programs

How to Pay:
 Variable pay programs:
 Piece-rate plans
 Merit-based pay
 Bonuses
 Profit sharing
 Employee stock ownership plans
 Earnings therefore fluctuate up and down.

22

Variable-Pay Programs

Piece-Rate Pay
 A pure piece-rate plan provides no base salary and
pays the employee only for what he or she produces.
 Limitation: not a feasible approach for many jobs.
 The main concern for both individual and team
piece-rate workers is financial risk.

23

(c) 2008 Prentice-Hall, All rights reserved. 8

 Variable-Pay Programs

Merit-Based Pay
 Allows employers to differentiate pay based on
performance.
 Creates perceptions of relationships between
performance and rewards.
 Limitations:
 Based on annual performance appraisals.
 Merit pool fluctuates.
 Union resistance.

24

Variable-Pay Programs

Bonuses
 An annual bonus is a significant component of
total compensation for many jobs.
 Increasingly include lower-ranking employees.
 Many companies now routinely reward
production employees with bonuses when
profits improve.
 Downside: employees’ pay is more vulnerable to
cuts.

25

Variable-Pay Programs

Profit-Sharing Plans
 Organization-wide programs that distribute
compensation based on some established formula
centered around a company’s profitability.
 Appear to have positive effects on employee
attitudes at the organizational level.
 Employees have a feeling of psychological
ownership.

26

(c) 2008 Prentice-Hall, All rights reserved. 9

 Variable-Pay Programs

Employee Stock Ownership Plan (ESOP)

 A company-established benefit plan in which
employees acquire stock, often at below-market
prices, as part of their benefits.
 Increases employee satisfaction and innovation.
 Employees need to psychologically
experience ownership.
 Can reduce unethical behavior.

27

Variable-Pay Programs

Evaluation of Variable Pay

 Do variable-pay programs increase motivation
and productivity?
▪ Generally, yes, but that doesn’t mean
everyone is equally motivated by them.

28

Show How Flexible Benefits

Turn Benefits Into Motivators
Developing a Benefits Package
 Flexible benefits individualize rewards.
– Allow each employee to choose the
compensation package that best satisfies his or
her current needs and situation.
▪ Today, almost all major corporations in the
United States offer flexible benefits.
▪ However, it may be surprising that their usage
is not yet global.

29

(c) 2008 Prentice-Hall, All rights reserved. 10

 Identify the Motivational
Benefits of Intrinsic Rewards
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.

30

Implications for Managers (1 of 3)

Recognize individual differences.

 Spendthe time necessary to understand what’s
important to each employee.
 Design
jobs to align with individual needs and
maximize their motivation potential.
Use goals and feedback.
 Youshould give employees firm, specific goals,
and they should get feedback on how well
they are faring in pursuit of those goals.

31

Implications for Managers (2 of 3)

Allow employees to participate in decisions that

affect them.
 Employees can contribute to setting work goals,
choosing their own benefits packages, and
solving productivity and quality problems.
Link rewards to performance.
 Rewards should be contingent on performance,
and employees must perceive the link between
the two.

32

(c) 2008 Prentice-Hall, All rights reserved. 11

 Implications for Managers (3 of 3)

Check the system for equity.

 Employees should perceive that experience,
skills, abilities, effort, and other obvious inputs
explain differences in performance and hence in
pay, job assignments, and other obvious rewards.

33

Special Issues in
Motivation
 Motivating Professionals
 Provide challenging projects.
 Allow them the autonomy to be productive.
 Reward with educational opportunities.

 Reward with recognition.

 Express interest in what they are doing.
 Create alternative career paths.

34

Special Issues in
Motivation

(cont’d)
Motivating the Diversified Workforce
 Provide flexible work, leave, and pay schedules.
 Provide child and elder care benefits.
 Structure working relationships to account for cultural
differences and similarities.

 Motivating Low-Skilled Service Workers

 Recruit widely.
 Increase pay and benefits.
 Make jobs more appealing.

35

(c) 2008 Prentice-Hall, All rights reserved. 12

 Special Issues in
Motivation

(cont’d)
Motivating People Doing Highly Repetitive Tasks

 Recruit and select employees that fit the job.

 Create a pleasant work environment.

 Motivating Contingent Workers

 Provide opportunity for permanent status.

 Provide opportunities for training.

 Provide equitable pay.

36

(c) 2008 Prentice-Hall, All rights reserved. 13

 Learning Objectives (1 of 2)
 Distinguish between the different types of groups.
 Describe model of group development.
Foundation of Group  Show how role requirements change in different

Behavior situations.
 Demonstrate how norms exert influence on an
individual’s behavior.
INSTRUCTOR: ASSOC. PROF. DR., PHAM THI BICH NGOC  Show how status and size differences affect group
NEU performance.
 Describe how issues of cohesiveness and diversity
can be integrated for group effectiveness.
 Contrast the strengths and weaknesses of group
decision making.

0 1

Defining Groups Classifying Groups

 Two or more individuals interacting and interdependent, (cont’d) Relatively temporary
who have come together to achieve particular objectives Relatively permanent
 Two or more people who interact with one another such
that each person influences and is influenced by each formal
other person
 Any number of people who (1) interact with one another;
(2) are psychologically aware of one another; and (3)
perceive themselves to be a group.

informal

2 3

Functions of formal group The Five Stages of Group

Development
1. Forming
2. Storming
3. Norming Stage
4. Performing Stage
5. Adjourning Stage

4 5

(c) 2008 Prentice-Hall, All rights reserved. 1

 Group Properties/Group Performance
Factors
Group Property 1: Roles
 Role
A set of expected behavior patterns
Norms attributed to someone occupying a
Roles
Statu given position in a social unit
s
 is the expected pattern of behaviors
Group
associated with members occupying a
Performa particular position within the structure of
nce the organization.
Cohesive Compositi
ness on
Size

6 7

Group Property 1: Roles Group Property 1: Roles

 Role conflict can result in role stress
 Role Perception
 Role ambiguity occurs when there is lack of clarity as
 An individual’s view of how he or she is to the precise requirements of the role and the person is
supposed to act in a given situation – unsure what to do
received by external stimuli  Role overload is when a person faces too many
 Role Expectations separate roles or too great a variety of expectations .

 How others believe a person should act in  Role underload can arise when the prescribed role
expectations fall short of the person’s perception of their
a given situation role
 Role conflict
A situation in which an individual is confronted
by divergent role expectations

8 9

Group Property 2: Norms Group Property 2: Norms

 Group Norms
 Acceptable standards of behavior within a
group that are shared by the group’s
members
 Are the standards against which the
appropriateness of the behaviors of members
are judged
 Determine behavior expected in a certain
situation
 Is an assumption or expectation held by group
members concerning what kind of behavior is:
 Right or wrong
 Good or bad
 Allowed or not allowed
 Appropriate or not appropriate
 Classes of Norms
 Performance norms -
 Appearance norms –
 Social arrangement norms –
 Allocation of resources norms
 Improvement and change norms

10 11

(c) 2008 Prentice-Hall, All rights reserved. 2

 Group Property 3: Status Status Effects

A socially defined position or rank given to groups  On Norms and Conformity

or group members by others – it differentiates
group members
 Important factor in understanding behavior
 Significant motivator
 On Group Interaction
Status Characteristics Theory
 Status derived from one of three sources:
 Power a person has over others
 Ability to contribute to group goals
 Personal characteristics
 High-status members are less restrained by norms
and pressure to conform
 Some level of deviance is allowed to high-status
members so long as it doesn’t affect group goal
achievement
 High-status members are more assertive
 Large status differences limit diversity of ideas and
creativity

12 13

Group Property 4: Size Group Property 4: Size

 Is the number of members of the group  Best use of a group:

 Twelve or more members is a “large” group

 Seven or fewer is a “small” group
Attribute Small Large
 Affects resources available to perform the
task
Speed X

Individual Performance X
 Affects degree of formalization of Problem Solving X
interactions, communication, and
participation Diverse Input X

Fact-finding Goals X
 Can increase the degree of social loafing
Overall Performance X

14 15

Group Property 4: Size Group Property 5:

Cohesiveness
 Factors that Determine Ideal Group Size
 Group members’ ability  Is the extent to which a group is committed to
 Maturity of individual group members staying together
 Group tasks  Degree to which group members are attracted to
 Ability of the group leader each other and are motivated to stay in the
group

16 17

(c) 2008 Prentice-Hall, All rights reserved. 3

 Factors contributing to
group cohesiveness

18 19

Group Property 6 - Group Decision Making

Composition
 Strengths of group decision making:
The degree of similarity or difference among group
 More complete information and
members on factors important to the group’s work
knowledge
Homogeneity  Increased diversity of views
Degree to which members are similar in one or
several ways that are critical to the group’s work  Increased acceptance of solutions
 Weaknesses of group decision making:
Heterogeneity
Degree to which members differ in one or more  Time consuming
ways that are critical to the group’s work  Conformity pressures
 Dominance of a few members
 Ambiguous responsibility
20 21

Group Decision Making Group Decision Making

(cont’d)
 Effectiveness and efficiency of group
decisions:  Groupthink
 A mode of thinking that occurs when members of a
 Accuracy (group) group are deeply involved in a cohesive in-group
and the desire for unanimity offsets their motivation
 Speed (individual) to appraise alternative courses of action
 Effects of Groupthink
 Creativity (group)
 Consideration of and focus on fewer alternatives
 Acceptance (group)  Failure to perceive non-obvious risks and drawbacks
of an alternative
 Rejection of expert opinions
 Ignoring potential for setbacks or actions of
competitors in not developing contingency plans

22 23

(c) 2008 Prentice-Hall, All rights reserved. 4

 Group Decision Making Group Decision Making

 Most group decision making takes place in  Brainstorming can overcome pressures for
interacting groups. conformity.
 Members meet face-to-face and rely on  In a brainstorming session:
both verbal and nonverbal interaction The group leader states the problem.
to communicate with each other. Members then “free-wheel” as many
 Interacting groups often censor themselves alternatives as they can.
and pressure individual members toward No criticism is allowed.
conformity of opinion.
One idea stimulates others, and group
members are encouraged to “think
the unusual.”

24 25

Group Decision Making Group Decision Making

 The nominal group technique: restricts  Steps for a nominal group:

discussion or interpersonal communication
 Eachmember independently writes
during the decision making process.
down his/her ideas on the problem.
 Nominal groups outperform brainstorming
 Afterthis silent period, each member
groups.
presents one idea to the group.
 The ideas are discussed for clarity.
 Each group member rank-orders the
ideas.
 The idea with the highest aggregate
ranking determines the final decision.

26 27

Evaluating Group
Effectiveness
Type of Group
Brain-
Effectiveness Criteria Interacting Nominal Electronic
storming
Number and quality of ideas Low Moderate High High
Social Pressure High Low Moderate Low
Money Costs Low Low Low High
Speed Moderate Moderate Moderate Moderate
Task Orientation Low High High High
Potential for Interpersonal
High Low Moderate Moderate
Conflict
Commitment to Solution High N/A Moderate Moderate
Development of Group
High High Moderate Low
Cohesiveness

28

(c) 2008 Prentice-Hall, All rights reserved. 5

 Learning Objectives

➢ Analyze the continued popularity of teams in

organizations.
➢ Contrast groups and teams.
Understanding Work Teams ➢ Contrast the five types of team arrangements.
➢ Identify the characteristics of effective teams.
➢ Explain how organizations can create team players.
Instructor: Pham Thi Bich Ngoc, PhD.
➢Decide when to use individuals instead of teams.
NEU

Analyze the Growing Popularity of Teams in

Differences Between Groups and Teams
Organizations
Comparing Workgroups and Work Teams
➢ Why are teams popular?
– Teams can achieve feats an individual could never
accomplish.
– Teams are flexible and responsive to changing events.
– They can quickly assemble, deploy, refocus, and
disband.
– They are an effective means to democratize
organizations and increase employee involvement.
– They introduce a collaborative mindset.

Types of Teams More Types of Teams

➢ Problem-Solving Teams ➢ Cross-Functional Teams
– Groups of 5 to 12 employees from the – Employees from about the same hierarchical level, but from
same department who meet for a few different work areas, who come together to accomplish a
hours each week to discuss ways of task
improving quality, efficiency, and the
– Very common
work environment
– Task forces
➢ Self-Managed Work Teams
– Committees
– Groups of 10 to 15 people who take
on the responsibilities of their former ➢ Work teams
supervisors ➢ Management teams

(c) 2008 Prentice-Hall, All rights reserved. 1

 A Final Type of Team
➢ Virtual Teams
– Teams that use computer technology to tie
together physically dispersed members in
order to achieve a common goal
➢ Characteristics
– Limited socializing
– The ability to overcome time and space
constraints
➢ To be effective, needs:
– Trust among members
– Close monitoring
– To be publicized
Creating Effective Teams: Context
➢ Adequate Resources
– Need the tools to complete the job
➢ Effective Leadership and Structure
– Agreeing to the specifics of work and how the team fits
together to integrate individual skills
– Even “self-managed” teams need leaders
– Leadership especially important in multi-team systems
➢ Climate of Trust
– Members must trust each other and the leader
➢ Performance and Rewards Systems that Reflect Team
Contributions
– Cannot just be based on individual effort
Key Roles On Teams
(c) 2008 Prentice-Hall, All rights reserved.
A Team-Effectiveness Model
Creating Effective Teams: Composition
How should teams be staffed?
➢ Abilities of Members
– Need technical expertise, problem-solving, decision-making,
and good interpersonal skills
➢ Personality of Members
– Conscientiousness, openness to experience, and
agreeableness all relate to team performance
➢ Allocating Roles and Diversity
– Many necessary roles must be filled
– Diversity can often lead to lower performance
➢ Size of Team
– The smaller the better: 5 to 9 is optimal
➢ Member’s Preference for Teamwork
– Do the members want to be on teams?
Creating Effective Teams: Process
➢ Commitment to a Common Purpose
– Create a common purpose that provides direction
– Have reflexivity: willing to adjust plan if necessary
➢ Establishment of Specific Team Goals
– Must be specific, measurable, realistic, and challenging
➢ Team Efficacy
– Team believes in its ability to succeed
➢ Mental Models
– Have an accurate and common mental map of how the work gets
done
➢ A Managed Level of Conflict
– Task conflicts are helpful; interpersonal conflicts are not
➢ Minimized Social Loafing
– Team holds itself accountable both individually and as a team
2
 Turning Individuals into Team Players
Creating Team Players
➢ Selection
– Make team skills one of the interpersonal skills in the hiring
process.
➢ Training
– Individualistic people can learn
➢ Rewards
– Rework the reward system to encourage cooperative efforts
rather than competitive (individual) ones
– Continue to recognize individual contributions while still
emphasizing the importance of teamwork
Beware! Teams Aren’t Always the Answer
Teams take more time and resources than does individual
work.
➢Three tests to see if a team fits the situation:
1. Is the work complex and is there a need for different
perspectives: will it be better with the insights of more than
one person?
2. Does the work create a common purpose or set of goals for
the group that is larger than the aggregate of the goals for
individuals?
3. Are members of the group involved in interdependent
tasks?

Costs of Teams in Organizations Benefits of Teams in Organizations

Managerial role
confusion/frustration
Team-Based
Managerial sense of loss Environment Benefits
of usefulness

Difficulties in
changing to a Employee resistance
team-based to role changes

organization
Enhanced Employee Reduced Organizational
Cumbersome and lengthy
performance benefits costs enhancements
team development process

Losses due to premature

abandonment of the process

Benefits of Teams in Organizations

Team-Based
Environment Benefits

Enhanced Employee Reduced Organizational

performance benefits costs enhancements

(c) 2008 Prentice-Hall, All rights reserved. 3

 Learning Objectives (1 of 2)

 Describe the functions and process

COMMUNICATION of communication.
 Contrast downward, upward, and lateral
communication through small-group networks
and the grapevine.
INSTRUCTOR: ASSOC. PROF. DR. PHAM THI BICH NGOC  Contrast oral, written, and nonverbal
communication.
NEU
 Describe how channel richness underlies the
choice of communication channel.
 Differentiate between automatic and controlled
processing of persuasive messages.
 Identify common barriers to effective communication.
 Discuss how to overcome the potential problems of cross-
cultural communication

0 1

What is Communication? The Communication

Process
 Communication
 The transference and understanding of meaning

2 3

Describe the Functions and Process Describe the Functions and Process
of Communication (1 of 7) of Communication (2 of 7)

Communication serves five major Communication acts to manage member

functions within a group or organization: behavior in several ways.
 Management  Authorityhierarchies and formal
 Feedback
guidelines.
 Job descriptions and company
 Emotional sharing
policies.
 Persuasion
 Workgroup teasing or harassing.
 Information exchange

4 5

(c) 2008 Prentice-Hall, All rights reserved. 1

 Communication Channels Direction of
Communication
 Channel
 The medium selected by the sender through which
the message travels to the receiver Downward
 Types of Channels
 Formal Channels
Lateral
 Informal Channels

Upward

6 7

Three Common Formal

Communication networks
Small-Group Networks
 Chain:
 Rigidly follows the chain of command
 Each member communicates with the person above Networks Networks Networks
and below, except for the individuals on each end
who communicate with only one person Criteria Chain Wheel All-Channel

 Wheel: Speed Moderate Fast Fast

 Information flows between the person at the end of
each spoke and the person in the middle Accuracy High High Moderate
Emergence of a
 Circle Network
leader Moderate High None
 Each member communicates with the people on
both sides but with no one else Member satisfaction Moderate Low High
 All Channel:
 All group members communicate actively with each
other

8 9

The Grapevine Reducing Rumors

1. Announce timetables for making important
decisions
 Three Main Grapevine Characteristics 2. Explain decisions and behaviors that may
1. Informal, not controlled by management appear inconsistent or secretive
2. Perceived by most employees as being more 3. Emphasize the downside, as well as the
believable and reliable than formal
communications upside, of current decisions and future plans
3. Largely used to serve the self-interests of those
who use it 4. Openly discuss worst-case possibilities—they
are almost never as anxiety-provoking as
 Results from:
the unspoken fantasy
 Desire for information about important situations
 Ambiguous conditions
 Conditions that cause anxiety
 Insightful to managers
 Serves employee’s social needs

10 11

(c) 2008 Prentice-Hall, All rights reserved. 2

 Communication Networks Communication Networks
(cont’d) (cont’d)
 Characteristics of Communication Networks  Organizational Communication Networks
 Networks form spontaneously as interactions among  Communication and information flows do not
workers continue necessarily follow the lines of an organization chart
 Networks rarely are permanent  Downward communication provides directions
 Task is crucial to the choice of a network pattern
 Upward communication provides feedback
 Environment affects the frequency and types of
 Horizontal communication is related to task
interactions among members performance
 Personal factors and group performance factors
influence communication networks
 Networks strongly influence group effectiveness
 Electronic groups that have little face-to-face
communication are an emerging trend

12 13

Methods of Communication Methods of Communication

 Oral Communication
 Written Communication
 Nonverbal Communication

14 15

Methods of Communication Methods of Communication

Allocation of Time at Work for Managers and Professionals

Note: CareerBuilder survey of over 2,000 hiring professionals.

Source: Based on M. Chui et al., “The Social Economy: Unlocking Value and Productivity through Social Technologies,” Source: Based on CareerBuilder at
McKinsey and Company, July 2012, http://www.mckinsey.com. http://www.careerbuilder.com/JobPoster/Resources/page.aspx?pagever=2012SocialMedia&template=none.

16 17

(c) 2008 Prentice-Hall, All rights reserved. 3

 Methods of Communication Nonverbal
Nonverbal Communication Communication
 Includes body movements, the intonations or
emphasis we give to words, facial expressions,
and the physical distance between the sender Elements of Nonverbal
and receiver. Communication
 Body language can convey status, level of
engagement, and emotional state.
Advantages: Supports other communications and
provides observable expression of emotions and Facial Physical Environmental
feelings Expressions Movements Elements
Disadvantage: Misperception of body language or Body
gestures can influence receiver’s interpretation of Language
message

18 19

Nonverbal Communication Methods of Communication

Physical distance also has meaning.
 What is considered proper spacing between  Choice Considerations
people largely depends on cultural norms.  Audience (physical or not physical presence)
 Nature of the message (urgency and secrecy)
A businesslike distance in some European
 Costs of transmission
countries feels intimate in many parts of
North America.
 Distance may indicate aggressiveness or
sexual interest, or it may signal disinterest or
displeasure with what is being said.

20 21

Channel Richness and Choice

Channel Richness and Choice of Communication Channel (2 of 4)
of Communication Channel (1 of 4)
The choice of channel depends on whether the
message is routine.
 Routine messages tend to be straightforward
and have a minimum of ambiguity.
 Choose oral communication when you need
to gauge the receiver’s receptivity.
 Writtencommunication is more reliable for
complex and lengthy communications.

Sources: Reproduced from R. L. Daft and R. A. Noe, Organizational Behavior (Fort

Worth, TX: Harcourt, 2001), 311.

22 23

(c) 2008 Prentice-Hall, All rights reserved. 4

 Barriers to Effective More Barriers to Effective
Communication Communication
 Filtering  Language
 A sender’s manipulation of information so that it will be  Words have different meanings to different people
seen more favorably by the receiver
 Selective Perception  Communication Apprehension
 People selectively interpret what they see on the basis  Undue tension and anxiety about oral
of their interests, background, experience, and communication, written communication, or both
attitudes
 Gender Differences
 Information Overload
 Men tend to talk to emphasize status while women
 A condition in which information inflow exceeds an talk to create connections
individual’s processing capacity
 Emotions
 How a receiver feels at the time a message is received
will influence how the message is interpreted

24 25

Communication Barriers and Cultural High-

Context
vs.
Low-
Cont
ext
Cultu
res

26 27

Overcoming Problems in
Cross-
Cultural Communication (3 of 3)
A Cultural Guide
 Know yourself.
 Foster
a climate of mutual respect, fairness,
and democracy.
 State facts, not your interpretation.
 Consider the other person’s viewpoint.
 Proactively maintain the identity of the group.

28

(c) 2008 Prentice-Hall, All rights reserved. 5

 What Is Leadership?
 Leadership
 The ability to influence a group toward the achievement of
goals
 Not all leaders are managers, nor are all managers leaders.

 Is a property—the set of characteristics attributed to someone

who is perceived to use influence successfully
 Is influence—the ability to affect the perceptions, beliefs,
attitudes, motivation, and/or behavior of others
 Management

Leadership  Use of authority inherent in designated formal rank to obtain

compliance from organizational members
Instructor: Pham Thi Bich Ngoc, Assoc. Prof., Dr.
 Both are necessary for organizational success
NEU

0 1

Trait Approaches to Behavioral Approaches of

Leadership Leadership
 Trait Approaches to Leadership  Proposing that specific behaviors differentiate leaders
 Attempts to identify stable and enduring character traits from non-leaders
that differentiate effective leaders from non-leaders
focusing on:  Behavioral theories of leadership imply we can train
 Identifying leadership traits people to be leaders.
 Developing methods for measuring them
 Using the methods to select leaders
 Current limited set of leadership traits
 Emotional intelligence, drive, motivation; honesty and
integrity, self-confidence, cognitive ability, knowledge of the
business, charisma
 Traits can predict leadership, but they are better at
predicting leader emergence than effectiveness.

2 3

Behavioral Approaches to The Michigan Studies

Leadership
Early Studies in Behavioral
Approaches to Leadership Two key dimensions of leader
behavior:
Employee-oriented/ Employee-
centered
The Michigan The Ohio State The Leadership
Studies Studies Grid Production-oriented / Job-
centered

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(c) 2008 Prentice-Hall, All rights reserved. 1

 The Ohio State Studies The Leadership Grid
Found two key dimensions of leader
behavior:  Provides a means for evaluating leadership styles and then training
managers to move toward an ideal style of behavior
Initiating structure  Draws on both studies to assess leadership style
 “Concern for People” is Consideration and Employee-Orientation
Consideration
 “Concern for Production” is Initiating Structure and Production-
Both are important Orientation
 Style is determined by position on the graph

6 7

The Emergence of Contingency

The Leadership
Grid®
Leadership Models
 While trait and behavior theories do help us understand
leadership, an important component is missing: the environment
in which the leader exists

 Situational leadership theories deals with this additional aspect

of leadership effectiveness studies

 Assume that appropriate leader behavior varies from one

situation to another situation

 Seek to identify how key situational factors interact to

determine appropriate leader behavior

 Three key theories:

Source: The Leadership Grid Figure
 Fielder’s Model
from Leadership Dilemmas—Grid
Solutions by Robert R. Blake and Anne
 Hersey and Blanchard’s Situational Leadership Theory
Adams McCanse. (Formerly the
Managerial Grid by Robert R. Blake  Path-Goal Theory
and Jane S. Mouton.) Houston: Gulf
Publishing Company, p. 29. Copyright
1997 by Grid International, Inc.
Reproduced by permission of Grid
International, Inc.

8 9

The Fiedler contingency model

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(c) 2008 Prentice-Hall, All rights reserved. 2

 Hersey-Blanchard Situational Leader–Member Exchange
Leadership Theory
Degree of follower’s readiness to assume personal responsibility:
R1 R2 R3 R4

Unable Unable Able Able

Unwilling Willing Unwilling Willing

S1 S2 S3 S4

Telling: Selling: Participating: Delegating:

Instructing & Explaining & Sharing & Coaching &
supervising clarifying facilitating assisting
Leadership behavior appropriate to the situation

12 13

Contemporary Approaches to Leadership

LMX Model
 How groups are assigned is unclear
 Follower characteristics determine group membership  Charismatic Leadership
 Leaders control by keeping favorites close  Transformational, Transactional Leadership

 Research has been generally supportive

14 15

Transactional and Transformational Leadership

Reference: David A. Nadler and Michael L. Tushman, “Beyond the Charismatic Leader: Leadership and
Organizational Change,” California Management Review, Winter 1990, pp. 70–97.
Transactional Leader
Contingent Reward: Contracts exchange of rewards for effort, promises
rewards for good performance, recognizes accomplishments.
Management by Exception (active): Watches and searches for deviations
from rules and standards, takes corrective action.
Management by Exception (passive): Intervenes only if standards are not
met.
Laissez-Faire: Abdicates responsibilities, avoids making decisions
Transformational Leader
Idealized Influence: Provides vision and sense of mission, instills pride, gains
respect and trust.
Inspirational Motivation: Communicates high expectations, uses symbols to
focus efforts, expresses important purposes in simple ways.
Intellectual Stimulation: Promotes intelligence, rationality, and careful
problem solving.
Individualized Consideration: Gives personal attention, treats each employee
individually, coaches, advises.

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(c) 2008 Prentice-Hall, All rights reserved. 3

 Role of Leaders in Creating Ethical Organizations (2 Role of Leaders in Creating Ethical Organizations (3
of 3) of 3)

Ethical Leadership
Ethics touches on leadership at a number of
junctures. Servant Leadership
Efforts have been made to combine ethical Servant leaders go beyond their self-
and charismatic leadership into an idea of interest and instead focus on
socialized charismatic leadership – leadership opportunities to help followers grow
that conveys other-centered values by and develop.
leaders who model ethical conduct. Characteristic behaviors include
listening, empathizing, persuading,
accepting stewardship, and actively
developing followers’ potential.

18 19

Challenges to our Understanding of Leadership (2 of Challenges to our Understanding of Leadership (3 of 5)

5)

Substitutes for and Neutralizers of Leadership

Defining Characteristics Relationship-Oriented Task-Oriented
Leadership Leadership
Individual Black Black
 Online Leadership
Experience/training No effect on Substitutes for  Needs more research.
Professionalism Substitutes for Substitutes for  Today’s managers and employees are
increasingly linked by networks rather than
Indifference to rewards Neutralizes Neutralizes
geographic proximity.
Job Black Black
Online leaders have to think carefully
Highly structured task No effect on Substitutes for about what actions they want their digital
Provides its own No effect on Substitutes for messages to initiate.
feedback Identification-based trust is difficult to
Intrinsically satisfying Substitutes for No effect on achieve without face-to-face interaction.
Organization Black Black Writing skills are likely to become an
Explicit formalized goals No effect on Substitutes for extension of interpersonal skills.
Rigid rules and No effect on Substitutes for
procedures
Cohesive work groups Substitutes for Substitutes for

20 21

Challenges to our Understanding of Leadership (4 of 5) Challenges to our Understanding of Leadership (5 of 5)

Selecting Leaders Training Leaders

Identifying effective leaders: – Leadership training is likely to be more successful
Review specific requirements for the with high self-monitors.
position. – Teach implementation skills.
Consider personality tests to identify – Teach trust building, mentoring, and situational-
leadership traits. analysis.
Situation-specific experience is relevant. – Behavioral training through modeling exercises
can increase an individual’s charismatic
Plan for a change in leadership. leadership qualities.
– Review leadership after key organizational events.
– Train in transformational leadership skills.

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(c) 2008 Prentice-Hall, All rights reserved. 4

 Emerging Issues in Emerging Issues in
Leadership (cont’d) Leadership (cont’d)
 Strategic Leadership  Why Ethical Leadership Is Essential
 Requires that leaders be capable of:
 Increasing pressure for high ethical standards for
 Understanding the complexities of both the organization and its environment leadership positions
 Leading change in the organization to achieve and maintain a superior
alignment between the organization and its environment  Increasing pressure to hold leaders accountable for their
actions
 Managerial requirements:
 Encompassing understanding of the organization  Increasing environmental pressure for stronger corporate
 Firm grasp of the organization’s environment governance models
 Awareness of firm’s alignment with the environment
 Ability to improve the alignment

24 25

Emerging Issues in
Leadership (cont’d)
 Virtual Leadership Challenges
 Changes in leadership and mentoring as in-person
contact replaces virtual contact
 Less nonverbal communication
 Increasing importance of e-mail’s role in conveying
appreciation, reinforcement, and constructive feedback
 Face-to-face leadership skills become critical as
opportunities decrease for direct contact

26

(c) 2008 Prentice-Hall, All rights reserved. 5

 The Nature of Organization Structure

 Organization Structure
 The system of task, reporting, and authority relationships within
which an organization does its work
 Purpose of structure is to order and coordinate the actions of
Foundations of employees to achieve organizational goals
 “Structure follows strategy”
Organization Structure
Instructor: Pham Thi Bich Ngoc, PhD.
NEU

0 1

Objectives of Organizational Organization Chart

Structure
 To link individuals in an established network of
relationships
 To group together the tasks required to fufil the
objectives of the organization as a whole and to
allocate them to suitable individuals or groups
 To allocate to individuals or groups the authority
they require to perform their functions
 To coordinate the objectives and activities of
separated units
 Describes the structure of an organization
 Shows all people, positions, reporting relationships, and lines of formal
communication
 Depicts reporting relationships and work group memberships
 Shows how positions and small work groups are combined into departments which
make up the shape (configuration) of the organization
 Units and relationships among them
 Formal communication and reporting channels
 Structure of authority, responsibility and delegation
 Different types of chart:
 Vertical chart
 Horizontal chart
 Concentric chart

 To enable the flow of work, information and other  Matrix chart

resources via lines of cooperation and communication  “Metaphors”: network spider web

2 3

Identify Seven Elements of an Organization’s Structure

Organization Chart
 Organization chart: aid managerial thinking and Key Design Questions and Answers for Designing the Proper
communication but: Organizational Structure
 Static not dynamic as organization
The Key Question The Answer Is Provided by
 Formal structrure of authority and communication, not
1. To what degree are activities subdivided into Work specialization
present informal organiztion
separate jobs?
 Describe the structure of org, not the org itself (mission, 2. On what basis will jobs be grouped together? Departmentalization
values, people, activities) 3. To whom do individuals and groups report? Chain of command
4. How many individuals can a manager Span of control
efficiently and effectively direct?
5. Where does decision-making authority lie? Centralization and decentralization
6. To what degree will there be rules and Formalization
regulations to direct employees and
managers?
7. Do individuals from different areas need to Boundary spanning
regularly interact?

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(c) 2008 Prentice-Hall, All rights reserved. 1

 Work Specialization/Labour Work specialization
Division
Work specialization: the division of labor into separate
➢ The way the organization’s work is divided into activities.
different jobs to be done by different people
– Repetition of work.
 The process of dividing work into relatively specialized jobs to
achieve the advantages of specialization – Training for specialization.
 Division of labor can occur by: – Increasing efficiency through invention.

 Dividing work into different personal specialties. – Henry Ford

 Dividing work into different activities necessitated

by the natural sequence of the work the
organization does.

6 7

Work Specialization Departmentalization

Economies and Diseconomies
 The basis by which jobs are grouped together
 Grouping Activities by:
 Function
 Product
 Geography
 Process
 Specialization can reach a point of diminishing returns
 Customer
 Then job enlargement gives greater efficiencies than does
specialization

8 9

Customer
Functional Departmentalization Departmentalization
 Jobs are combined according to the functions of the
organization.  Customers and clients can be a basis for grouping jobs.

 The principal advantage is efficiency.  Examples of customer-oriented departments include:

 By having departments of specialists, management  Educational institutions
creates efficient units.
 The loan department in a commercial bank
 A major disadvantage is that organizational goals may be
 Telephone companies
sacrificed in favor of departmental goals.
 Department stores

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(c) 2008 Prentice-Hall, All rights reserved. 2

 Geographic
Departmentalization
 Groups are established according to geographic area.
 The logic is that all activities in a given region should be
assigned to a manager.
 Advantageous in large organizations because physical
separation of activities makes centralized coordination
difficult.
 Provides a training ground for managerial personnel.
12
Combined Bases for
Departmentalization:
The Matrix Organization
 The matrix organization attempts to maximize the
strengths and minimize the weaknesses of both the
functional and product bases.
 Typically seen as a balanced compromise between
functional and product organization.
 Characterized by the existence of a dual authority
system, which can cause conflicts.
 Facilitates the utilization of highly specialized staff and
equipment.
 The flexibility of this system allows speedy response to
challenges.
14
Chain of command
The chain of command is less relevant today because of
technology and the trend of empowering people.
 Operating employees make decisions once reserved
for management.
 Increased
popularity of self-managed and cross-
functional teams.
Many organizations still find that enforcing the chain of
command is productive.
16
(c) 2008 Prentice-Hall, All rights reserved.
Product Departmentalization
 All jobs associated with producing and selling a product or
product line are placed under the direction of one
manager.
 Product becomes the preferred basis as a firm grows by
increasing the number of products it markets.
 Concentrating authority, responsibility, and accountability
in a specific product department allows top management
to coordinate actions.
13
Chain of Command/Administrative hierarchy
 Chain of Command
 System of reporting relationships in the
organization from the first level up through the
president or CEO
 The unbroken line of authority that extends
from the top of the organization to the lowest
echelon and clarifies who reports to whom
 Unity of Command
 A subordinate should have only one superior to
whom he or she is directly responsible
 Organizational downsizing results in lower overhead
costs, less bureaucracy, faster decision making,
smoother communications, and increases in
productivity
15
Chain of Command/Administrative
hierarchy
 Responsibility
 An obligation to do something with the expectation of
achieving some act or output
 Authority
 The rights inherent in a managerial position to give orders and
to expect the orders to be obeyed
 Power that has been legitimized within a particular social
context
Originates in the ownership of the organization

 The relationship between responsibility and authority must be one
of parity
 Can be delegated down to others
 Delegation is the transfer to others of authority to make decisions
and use organizational resources
17
3
 Span of Control
Chain of Command/Administrative
The number of subordinates a manager can efficiently and
hierarchy effectively direct
 An Alternative View of Authority  Wider spans of management increase organizational
 Acceptance Theory of Authority efficiency
 The authority of a manager depends on their subordinates’
acceptance of the manager’s right to give directives and to  Narrow span drawbacks:
expect compliance with them
 By either accepting or rejecting the directives of a supervisor,  Expense of additional layers of management
workers can limit supervisory authority
 Increased complexity of vertical communication
 Encouragement ofoverly tight supervision and
discouragement of employee autonomy

18 19

Contrasting Spans of Control Conditions Affecting Span of

Control
 Optimal unit size (span of control) depends on:
1. The coordination requirements within the unit, including
factors such as the degree of job specialization

2. Degree of specialization
3. Ability to communicate and manage
4. The similarity of the tasks in the unit
5. The type of information available or needed by unit
members
6. Differences in the members’ need for autonomy
7. The extent to which members need direct access to the
supervisor

20 21

Centralization and Delegation of Authority

Decentralization
 Delegation of authority: the process of distributing
 Centralization
authority downward in an organization.
 The degree to which decision making is concentrated at a
single point in the organization.  Managers decide how much authority should be
 Decision-making authority is concentrated at the top of delegated to each job and to each jobholder.
the organizational hierarchy
 Decentralization  The benefits of decentralizing authority include:
The degree to which decision making is spread throughout

the organization.
 Relatively high delegation of authority encourages the
development of professional managers.
 Decisions are made throughout the hierarchy.
 Managers who have high authority can exercise more
autonomy, and thus satisfy their desires to participate
in problem solving.

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(c) 2008 Prentice-Hall, All rights reserved. 4

 Reasons to Centralize
Authority
 Managers must be trained to make the decisions that go
with delegated authority, and training can be quite
expensive.
 Managers accustomed to making decisions may resist
delegating authority to their subordinates, which can
reduce effectiveness.
 Administrative costs are incurred because new control
systems must be developed to provide top management
with information about the effects of subordinates
decisions.
Delegation Decision
Guidelines
 Delegation of authority differs among individuals,
depending on each person’s ability to make decisions.
 If a local manager is incapable of making decisions,
decision making should be centralized, regardless of how
routine the decisions.
 Capable individuals aren’t always motivated individuals.
 Motivation must accompany competency to create
conducive conditions for decentralization.

 Decentralization means duplication of functions.

24 25

Formalization Boundary spanning

➢ The degree to which rules and procedures shape
the jobs and activities of employees Boundary spanning occurs when individuals form
 The degree to which jobs within the organization are standardized. relationships with people outside their formally assigned
 High formalization groups.
 Minimum worker discretion in how to get the job done
 Positiveresults are especially strong in organizations
Many rules and procedures to follow

that encourage extensive internal communication; in
Low formalization

other words, external boundary spanning is most
Job behaviors are nonprogrammed

effective when it is followed up with internal
 Employees have maximum discretion
boundary spanning.
 Good managers use appropriate judgment in making exceptions to
rules in recognizing that:
 Individuals are unique with meaningful differences
 There are commonalities among employees

26 27

Simple Structure Simple Structure

 A structure characterized by a low degree of departmentalization,
wide spans of control, authority centralized in a single person, and
little formalization Simple structure: the manager and the owner are one
and the same.
 Strengths:

 Simple, fast, and flexible.

 Inexpensive to maintain.
 Accountability is clear.
 Weaknesses:
 Difficult
to maintain in anything other than small
organizations.
 Risky—everything depends on one person.

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(c) 2008 Prentice-Hall, All rights reserved. 5

 Bureaucracy
 A structure of highly operating routine tasks
achieved through specialization, very
formalized rules and regulations, tasks that
are grouped into functional departments,
centralized authority, narrow spans of
control, and decision making that follows the
chain of command
30
Matrix Structure (College of Business Administration)
(Director)
(Dean) Employee
32
New Design Options: Virtual/Network Organization
The Virtual Organization
 The essence of the virtual organization is that it
is typically a small, core organization that
outsources major business functions.
 Alsoreferred to as a modular or network
organization.
 Itis highly centralized, with little or no
departmentalization.
34
(c) 2008 Prentice-Hall, All rights reserved.
Matrix Designs
 Combines two different designs to gain the benefits of each.
 A structure that creates dual lines of authority and combines
functional and product departmentalization
 Key Elements
 Gains the advantages of functional and product
departmentalization while avoiding their weaknesses
 Facilitates coordination of complex and interdependent
activities
Breaks down unity-of-command concept

 Matrix structure is appropriate when:
1. External pressure exists for a dual focus
2. Pressure exists for a high information-processing capacity
3. Pressure exists for shared focus
31
New Design Options: Virtual/Network
Organization
 A small, core organization that
outsources its major business
functions
 Highly centralized with little or no
departmentalization
 Provides maximum flexibility while
concentrating on what the
organization does best
 Reduced control over key parts of
the business
33
The team structure
The team structure: eliminates the chain of command
and replaces departments with empowered teams.
 Removes vertical and horizontal boundaries.
 Breaks down external barriers.
– Flattens the hierarchy and minimizes status and
rank.
• When fully operational, the team structure may break
down geographic barriers.
35
6
 The circular structure Mechanistic vs. Organic
Structural
• In the circular structure: in the center are the
executives, and radiating outward in rings grouped by
function are the managers, then the specialists, then
the workers.
– Has intuitive appeal for creative entrepreneur.
– However, employees may be unclear about whom
they report to and who is running the show.
• We are still likely to see the popularity of the circular
structure spread.

36 37

Contingency Design Theories The Relationship Between Strategy

and Structure
 “Structure follows strategy” (Alfred Chandler)
 Contingency design theory: emphasizes the importance of  Management determines what the organization is to do and what its goals
are before designing appropriate structure
fitting a design to the demands of a situation, including:
 Innovation Strategy
 Technology  A strategy that emphasizes the introduction of major new products and services
Organic structure best
 Environmental uncertainty 

 Cost-minimization Strategy
 Strategy  A strategy that emphasizes tight cost controls, avoidance of unnecessary
innovation or marketing expenses, and price cutting
 Organization size  Mechanistic model best
 Imitation Strategy
 The essence of this approach is expressed by this question:  A strategy that seeks to move into new products or new markets only after their
viability has already been proven
Under what circumstances, and in what situations, is either  Mixture of the two types of structure
the mechanistic or organic design relatively more
effective?

38 39

The Relationship Between Strategy The Relationship Between

and Structure
Size and Structure
An organization’s structure is a means to help
management achieve its objectives.  Size
 As measured by employee total, organization asset value, sales total, total
Most current strategy frameworks focus on three strategy of clients served, physical capacity
dimensions:  Large organizations have a more complex structure
 Large size -employing 2,000 or more people- is associated with greater
 Innovation specialization of labor, wider spans of control, more hierarchical levels, greater
formalization
 Cost Minimization  Large organizations are more efficient and take advantage of economies of scale

The impact of size becomes less important as an organization expands.

 Imitation


40 41

(c) 2008 Prentice-Hall, All rights reserved. 7

 The Relationship Between Technology and Structure The Relationship Between Technology and Structure

 The mechanistic design is effective for firms that mass

Technology: the way an organization transfers its produce products, such as clothing, foods, and
inputs into outputs. automobiles.
 Numerous studies have examined the technology-
 Tasks are fairly routine, where workers tend machines
structure relationship.
designed and paced by engineering standards.
 Organizational structures adapt to their technology.
 Actual control of the work flow is separated from
supervision of the workforce.
 In such organizations, the ideas of scientific
management and mechanistic design are applicable.

42 43

The Relationship Between Environment and Structure Analyze the Behavioral Implications of
Different Organizational Designs (2 of 2)
 Environment
 Institutions or forces outside the organization that potentially affect the
organization’s performance Organizational Designs and Employee Behavior
 All elements that lie outside the organization boundary  Work specialization contributes to higher
 People, other organizations, economic factors, objects, events employee productivity.
 General environment
 All of a broad set of dimensions and factors within which the organization operates
 No evidence supports a relationship between
 Political-legal, social, cultural, technological, economic, international span of control and employee satisfaction or
 Task environment performance.
Specific organizations, groups, individuals who influence the organization
 Fairly strong evidence links centralization and


 Three key dimensions: capacity, volatility, and complexity

job satisfaction, meaning that less centralization
is associated with higher satisfaction.
 National culture influences the preference for
structure.

44 45

Implications for Managers (1 of

3)
Organizational Structure: Its Determinants and Outcomes

46

(c) 2008 Prentice-Hall, All rights reserved. 8

 The Nature of Organization
Culture
 Organizational Culture

Organizational Culture
 A set of values held by individuals in a firm that
help employees understand acceptability of
actions

Instructor: Pham Thi Bich Ngoc, Assoc. Prof., Dr.

0 1

Levels of
The Nature of Organization organizational
Visible Culture
Culture
Culture
Expressed Values
 Culture Values
 Are often taken for granted (implicit)
 May not be made explicit (i.e., not written down)
 Are communicated through symbolic means; Are passed
Core Values
from one generation to the next
 Organizations are able to operate efficiently only when
shared values exist among the employees.
 An individual’s personal values guide behavior on and
off the job.

2 3

Do Organizations Have Common Characteristics of

Organizational Culture
Uniform Cultures?
 Most organizations have a dominant culture and Strong versus Weak Cultures
numerous sets of subcultures.
Culture versus Formalization
 The dominant culture expresses the core values a
majority of members share and that give the  High formalization creates predictability,
organization distinct personality. orderliness, and consistency.
 Subcultures tend to develop in large organizations
to reflect common problems, situations, or  Formalization and culture are two different roads
experiences that members face. to the same destination.

4 5

(c) 2008 Prentice-Hall, All rights reserved. 1

 What Do Cultures Do? What Do Cultures Do?
The trend toward decentralized organizations makes
 Culture’s Functions culture more important than ever, but also makes
1. Defines the boundary between one organization and others establishing a strong culture more difficult.
2. Conveys a sense of identity for its members Individual-organization “fit”— whether the
3. Facilitates the generation of commitment to something larger applicant’s or employee’s attitudes and behavior are
than self-interest compatible with the culture — strongly influences
who gets a job offer, a favorable performance
4. Enhances the stability of the social system
review, or a promotion.
5. Serves as a sense-making and control mechanism for fitting
employees in the organization

6 7

What Do Cultures Do? What Do Cultures Do?

The Ethical Dimension of Culture
Culture Creates Climate  Organizational cultures are not neutral in their
 Organizational climate is shared ethical orientation, even when they are not openly
perceptions about the organization and pursuing ethical goals.
work environment.  Over time, the ethical work climate (EWC), or
 Team spirit at the organizational level. the shared concept of right and wrong behavior
 Climates can interact with one another to
in that workplace, develops as part of the
produce behavior. organizational climate.
 Climate also influences the habits people  The ethical climate reflects the true values of the
adopt. organization and shapes the ethical decision making
of its members.

8 9

What Do Cultures Do? What Do Cultures Do?

Studies of ethical climates and workplace outcomes • Sustainability: practices that can be maintained over very
suggest that some climate categories are likely to be long periods of time because the tools or structures that
found in certain organizations. support the practices are not damaged by the processes.

By measuring the collective levels of moral sensitivity,
judgment, motivation, and character of our
organizations, we may be able to judge the strength of
the influence our ethical climates have on us.
– Social sustainability practices.
– Sustainable management doesn’t need to be purely
altruistic.
• To create a truly sustainable business, an organization must
develop a long-term culture and put its values into practice.
• Like other cultural practices we’ve discussed, sustainability
needs time and nurturing to grow.

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(c) 2008 Prentice-Hall, All rights reserved. 2

 What Do Cultures Do? What Do Cultures Do?

Culture and Innovation Culture as an Asset

 The most innovative companies have  Culture can significantly contribute to an
open, unconventional, collaborative, organization’s bottom line in many ways.
vision-driven, and accelerating
cultures.  There are many more cases of business success
 Startup firms often have innovative
stories because of excellent organizational cultures
cultures. than there are of success stories despite bad
cultures, and almost no success stories because of
 They are usually small, agile, and
bad ones.
focused on solving problems in
order to survive and grow.

12 13

What Do Cultures Do? Creating and Sustaining

Culture as a Liability Culture (1 of 6)
 Institutionalization How a Culture Begins
 Barrier to change  Ultimate source of an organization’s culture is its
 Occurs when culture’s values are not aligned with the values necessary for founders.
rapid change
 Barrier to diversity  Founders have the vision of what the organization
 Strong cultures put considerable pressure on employees to conform, should be.
which may lead to institutionalized bias
 Unconstrained by previous ideologies or customs.
 Barrier to acquisitions and mergers
 New organizations are typically small, which
 Incompatible cultures can destroy an otherwise successful merger
facilitates the founders’ imparting of their vision on
all organizational members.

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Creating and Sustaining Creating and Sustaining

Culture (2 of 6) Culture (3 of 6)
Culture creation occurs in three ways: Keeping a Culture Alive
 Founders hire employees who think and feel the  Selection
way they do.  Identifyand hire individuals with
 Employees are indoctrinated and socialized into the the knowledge, skills, and abilities
founders’ way of thinking. to perform successfully.
 Founders’ own behavior encourages employees to  Two-way street.
identify with them and internalize their beliefs,  Top Management
values, and assumptions.
 Establish norms of behavior.

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 Creating and Sustaining Types of Culture
Culture (4 of 6)

Formal Control Orientation

Clan Culture Entrepreneurial
Culture
Flexible

Stable Bureaucratic Market Culture

Culture

Internal External

Forms of Attention

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Influencing an Organizational Culture

How Culture is Transmitted to (1 of 5)

Employees
 How can management create a more ethical
culture?
 Stories
 Rituals  Be a visible role model.
 Material Symbols  Communicate ethical expectations.
 Language  Provide ethics training.
 Visibly reward ethical acts and punish unethical
ones.
 Provide protective mechanisms.

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Influencing an Organizational Culture Influencing an Organizational Culture (3 of 5)

(2 of 5)

What Is Spirituality?
There is a trend today for organizations to attempt
to create a positive organizational culture:  Workplace spirituality is not about organized
religious practices.
 Emphasizes building on employee strengths.
 It is not about God or theology.
 Rewards more than it punishes.
 Workplace spirituality recognizes that people
 Emphasizes individual vitality growth. have an inner life that nourishes and is nourished
by meaningful work that takes place in the
context of community.

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 Influencing an Organizational Culture (5 of 5) Identify Characteristics of a Spiritual
Culture (1 of 2)
Characteristics of a Spiritual Organization
Achieving a Spiritual Organization
 Culturalcharacteristics present in spiritual
 Leaders can demonstrate values, attitudes,
organizations include:
and behaviors that trigger intrinsic motivation
 Benevolence and a sense of calling through work.
 Strong sense of purpose  Encouraging employees to consider how their
 Trust and respect work provides a sense of purpose through
community building also can help achieve a
 Open-mindedness
spiritual workplace.

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Managing Organization Managing Organization

Culture Culture
 Taking Advantage of the Existing Culture  Teaching Organization Culture
 Easier and faster to alter employee behaviors within the  Organizational socialization
existing culture than it is to change existing history, traditions,
and values  Is the process through which employees learn about the
firm’s culture and pass their knowledge and understanding
 Managers must be aware and understand the organization’s on to others
values
 Organizational mechanisms
 Managers can communicate their understanding to lower-level
individuals  Areexamples of organization culture that employees see in
more experienced employees’ behaviors
 Corporate pamphlets and formal training sessions

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Managing Organization Managing Organization Culture

Culture  Culture can be changed, but

 Need time
 Changing the Organization Culture
 Support from top managers
 Managing symbols
 Substituting stories and myths that support the new cultural values for those that  Other resources
support old ones
 Culture can be difficult to change when upper management inadvertently  How to make culture change
reverts to old behaviors
 The Stability of Change  Change people
 New values and beliefs must be seen as stable and influential as old ones
 Change corporate vision and mission
 Changing value systems requires enormous effort because value systems
tend to be self-reinforcing
 Change organizational policies and
system: reward system, recruitment
and selection policies, technology…

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 Implications for Managers (1 of 3)

How Organizational Cultures Have an Impact on Employee

Performance and Satisfaction

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Human Resource Policies and
Practices
Instructor: Assoc. Prof. Dr. Pham Thi Bich Ngoc
Learning Objectives
 Describe the value of recruitment methods.
 Specify initial selection methods.
 Identify the most useful substantive selection
methods.
 Compare the main types of training.
 List the methods of performance evaluation.
 Describe the leadership role of HR in organizations.

0 1

Specify Initial Selection

Describe the Value of Methods
Recruitment Methods Model of Selection Process in Organizations

Source of recruitment: internal, external

Recruitment methods

2 3

Identify the Most Useful Substantive Compare the Main Types of Training (1 of 3)

Selection Methods (1 of 5)
Substantive Selection Types of Training
 Written tests  Basic skills
 Performance simulation tests  Technical skills
 Interviews  Problem-solving skills
 Interpersonal skills
In addition, we consider:
 Civility training
 Ethics training

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 Contrast Formal and Informal Training Contrast Formal and Informal Training Methods (2 of 3)

Methods (1 of 3)
Training Methods Job Training
– Historically, training meant “formal training”.  On-the-job training includes job rotation,
– Organizations are increasingly relying on informal apprenticeships, understudy assignments, and
training. formal mentoring programs.
 Off-the-job training includes live classroom
▪ Unstructured, unplanned, and easily adapted to
situations and individuals. lectures, videotapes, public seminars, self-study,
Internet and satellite television courses, group
activities, and e-training.
Computer-Based Training

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Contrast Formal and Informal Training Methods (3 of 3) List the Methods of Performance
Evaluation
(1 of 9)
Evaluating Effectiveness What is Performance?
 The effectiveness of a training program can refer to  Three major types of behavior to consider:
the level of student satisfaction, the amount  Task performance
students learn, the extent to which they transfer
the material from training to their jobs, or the  Citizenship
financial return on investments in training.  Counter productivity
 An effective training program requires not just  Most managers believe good performance means
teaching the skills, but also changing the work doing well on the first two dimensions and avoiding
environment to support the trainees. the third.

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List the Methods of Performance List the Methods of Performance

Evaluation (2 of 9) Evaluation (3 of 9)
Purposes of Performance Evaluation What Do We Evaluate?
 Make general human resource decisions.  Individual task outcomes
 Identify training and development needs.  Behaviors
 Pinpoint
employee skills and competencies  Traits
needing development. Who Should Do the Evaluating?
 Provide feedback to employees.  Traditionally, the manager, but today that is
 Can be the basis for reward allocations. changing.
 Now peers, subordinates, and the employee
can be involved.

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 List the Methods of Performance List the Methods of Performance
Evaluation (4 of 9) Evaluation (5 of 9)
360-Degree Evaluations
Methods of Performance Evaluation
 Written Essays
 Critical Incidents
 Graphic Ratings Scales
 Behaviorally Anchored Rating Scales (BARS)
 Forced Comparisons
 Group order ranking
 Individual ranking

Source: Adapted from Personnal Journal, November 1994, 100.

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List the Methods of Performance List the Methods of Performance

Evaluation (7 of 9) Evaluation (8 of 9)
Improving Performance Evaluations: Providing Performance Feedback
 Use multiple evaluators.  Managers are often uncomfortable discussing
weaknesses with employees.
 Evaluate selectively.
 In fact, unless pressured by organizational
 Train evaluators. policies and controls, managers are likely to
 Provide employees with due process. ignore this responsibility.
 Three features of due process.  The solution to the problem is not to ignore it but to
train managers to conduct constructive feedback
 Post appraisals online. sessions.

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List the Methods of Performance Describe the Leadership Role of HR in Organizations

(1 of 5)
Evaluation (9 of 9)
International Variations in Performance Appraisal • Communicating HR Practices
 Individual-oriented cultures emphasize formal  Leadership by HR begins with informing
performance evaluation systems more than informal employees about HR practices and explaining the
systems. implications of decisions that might be made
around these practices.

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 Describe the Leadership Role of HR in Organizations Describe the Leadership Role of HR in Organizations
(2 of 5) (3 of 5)

Designing and Administering Benefit Programs Drafting and Enforcing Employment Policies
A benefit program should:  Employment policies that are informed by current
 Be suited to the organizational culture. laws but go beyond minimum requirements will help
define a positive organizational culture and set high
 Reflect the values of the organization.
standards for performance.
 Demonstrate economic feasibility.
 Any policy must have enforcement to be effective.
 Be sustainable in the long term.
 Benefits will likely improve employees’
psychological well-being and therefore increase
organizational performance.

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Describe the Leadership Role of HR in Describe the Leadership Role of HR in

Organizations (4 of 5) Organizations (5 of 5)

Managing Work-Life Conflicts Mediations, Terminations, and Layoffs

 Keeping workloads reasonable, reducing work-  Human resource departments often take center
related travel, and offering on-site quality stage when unpleasant events such as disputes,
childcare are examples of practices that can help substandard performance, and downsizing occur.
manage work-life conflicts.  Employees need to be able to trust their human
 Different people prefer different solutions. resource professionals
 Managers need to be able to trust HR

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