WEEK 7 ❖ 360-degree feedback - feedback-performance

Performance Appraisal appraisal system in which feedback is obtained

Performance Management from multiple sources (supervisors,
Reason for Evaluating Employee Performance subordinates and peers).
❖ Training and Feedback - to improve ❖ Multiple Source Feedback - feedback-
employee performance by providing appraisal strategy wherein employees receive
feedback about what employees are feedback from sources (clients, peers,
doing right and wrong. subordinates, not just the supervisor).
❖ Determined Salary Increase - a job’s ❖ Rank Order - order-employees are ranked
worth is determined by many factors, from best to worst.
including the degree of responsibility ❖ Forced Distribution - there are predetermined
and level of education required to percentages of employees placed into a
perform the job. number of performance categories.
❖ Promotion Decisions
➢ Will it be based on Trait-Focused Performance Dimensions -
performance? concentrates on employee attributes.
➢ Will it be based on seniority? ❖ Honesty
❖ Termination Decisions ❖ Courtesy
➢ Does poor performance merit ❖ Responsibility
termination decisions? ❖ Dependability
➢ How about negligence at work? ❖ Assertiveness
❖ Personnel Research ❖ Cooperation
Who observes Employee Performance? Task-Focused Performance Dimensions -
❖ Supervisors - sees the result. organized by the similarity of tasks that are performed.
❖ Peers - sees the behavior. ❖ Crime Prevention
❖ Subordinates - subordinate ratings correlate ❖ Arrest Procedures
highly with upper management ratings of ❖ Court Testimony
supervisors’ performance. ❖ Use of Vehicle
❖ Customers ❖ Radio Procedures
❖ Self-Appraisal - evaluating one’s own ❖ Following Rules & Regulations
behavior and performance is a technique used Competency-Focused Performance Dimensions -
by only a small percentage of organizations. concentrate on the employee’s knowledge, skills, and
abilities.
❖ Report Writing Skills
❖ Driving Skills
❖ Public Speaking Skills
❖ Knowledge of the Law
❖ Decision Making Skills
❖ Physical Ability Skills
Goal-Focused Performance Dimensions - organize
the appraisal on the basis of goals to be accomplished
by the employee.
Peer Assessment - technique wherein individuals ❖ Prevent Crimes from occuring
assess the behavior of their peer or coworker. ❖ Arrest/Cite lawbreakers
❖ Peer Nomination - nominating a peer for ❖ Finish shift without personal injury
membership in a group. ❖ Have arrest and citations stand up in court
❖ Peer Rating - rating a peer on the dimension ❖ Minimize citizen complaints
of behavior. ❖ Ensure Public Safety
❖ Peer Ranking - ranking a peer on the
dimensions of job behavior.
Objective Measures of Work

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 1. Quantity
2. Quality
3. Error
4. Attendance
5. Safety
Ratings of Performance
➢ Graphic Rating Scale - rating employee
performance on an interval or ratio.
➢ Behavioral Checklist - consist of a list of
behaviors, expectations or results for each
dimension (critical incidents, behaviorally
anchored scales, behavioral observation
scales.
➢ Employee Comparison Method - rank
orders, paired comparison, forced distribution.
➢ Rank-order Method - rank employees from
high to low.
➢ Paired Comparison - each employee is
paired with another employee.
➢ Forced Distribution
➢ Critical Incidents - behaviors that result in
good or bad performance.
➢ BARS (Behaviorally Anchored Rating
Scale) - performance is rated on a scale but
the scale is anchored with behavioral
incidents.
➢ BOS (Business Operating System) - the
rater observes the employee on the frequency
of critical incidents within a period.
Errors in Evaluating Performance
❖ Halo Errors - occurs when a rater allows
either a single attribute or an overall
impression of an individual to affect the ratings
that she makes on each relevant job
dimension.
❖ Leniency Error - certain raters tend to rate
every employee at the upper end of the scale
regardless of the actual performance
❖ Central Tendency Error - a supervisor rating
every employee in the middle of the scale
❖ Proximity Error - rating made on one
dimension affects the rating made on the
dimension that immediately follows it.
WEEK 8
Leadership
Leadership in the Workplace
● Leadership - influencing, motivating and
enabling others to contribute toward
effectiveness and success in organization.
● Shared Leadership - view that leadership is
broadly distributed rather than assigned to one
person.
● Leader Emergence - part of trait theory that
postulates that certain types of people will
become leaders and certain types will not. It
inherits certain traits and abilities that might
influence the decision to seek leadership.
● Leader Performance - involves the idea that
leaders who perform well possess certain
characteristics that poorly performing leaders
do not.
● Cognitive Ability - most important when the
leader is not distracted by stressful situations
and when the leader uses a more directive
leadership style.
Theoretical Approaches to Leadership
➔ Trait Approach - Leadership is best
understood in terms of traits and dispositions
held by an individual that are accountable for
the observed leadership.
◆ “Leaders are born, not made.”
➔ Behavioral Approach - Leadership is best
understood in terms of action taken by an
individual in the conduct of leading a group.
◆ “Leadership behaviors can be
taught.”
➔ Power and Influence Approach - Leadership
is best understood by the use of power &
influence exercised by a person within a group.
Types of Power
● Reward Power - capacity to offer incentives
for desirable behavior.
● Coercive Power - to punish an employee for
undesirable behavior.
● Legitimate Power - referred to as authority.
● Expert Power - expertise in given areas.
● Referent Power - abstract type of power,
someone that employees refer to as having the
personal qualities of a leader.
Other leadership theories
● Leader-Member Exchange Theory - Graen &
associates-leadership based on mutual
influence they have on employees. Thus,
those with competence and skill are called
members of in-group, while members without
the attributes are called out-group.
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Leadership Perspectives
❖ Competency Perspective - Leaders possess
competencies.
➢ Emotional Intelligence
➢ Integrity
➢ Drive
➢ Leadership Motivation
➢ Self-Confident
➢ Intelligence
➢ Knowledge of the business
❖ Behavioral Perspective - task oriented vs
people oriented leadership.
❖ Contingency Perspective - Path goal theory
of leadership-based.
Path Goal Theory - based on expectancy theory of
motivation that relates several leadership styles to
specific employee and situational contingencies.
Advocates servant leadership.
Path Goal Leadership Style
● Leader Behaviors - directive, supportive,
participative, achievement oriented.
● Employee Contingencies - skills & experience,
locus of control.
● Environmental Contingencies - task structure,
team dynamics.
● Leader Effectiveness - employee motivation,
employee satisfaction, leader acceptance.
It has different styles:
➔ Instrumental Style - The leader plans and
organizes the activities for employees.
➔ Supportive Style - Leaders show concern for
employees.
➔ Participative Style - Leaders allow employees
to participate in decision making.
➔ Achievement Oriented Style - Leader sets
challenging goals and rewards achievement.
Other Contingency Theories
➔ Situational Leadership Theory
◆ by Hershey & Blanchard
◆ suggests that effective leaders vary
their styles with readiness of followers.
➔ Fiedler’s Contingency Model
◆ by Fred Fiedler
◆ leader effectiveness depends on
whether the person’s natural leadership
style is appropriately matched to the
situation.
➔ Transformational Leadership - process of
inspiring a group to pursue goals and attain
results.
➔ Charismatic Leadership - product of
charisma, a trait that inspires confidence in
others to support the ideas and beliefs of an
individual who possesses the trait
➔ Implicit Leadership Theory - leadership is a
perceived phenomenon as attributed to an
individual by others.
➔ Leadership Substitute
◆ Identifies conditions that either limit a
leader’s ability to influence
subordinates or make that particular
leadership style unnecessary.
◆ Substitutes are areas of power
transferred away from a leader,
resulting in the increased performance
of subordinates.
◆ Aspects of the organization, followers,
and tasks act as a substitute for
leadership or negate the effect of
leadership.
➔ Authentic Leadership
◆ leaders should be honest and open and
lead out of a desire to serve others
rather than a desire for self-gain.
◆ a set of qualities, values, and skills
someone should possess if they want
to be an effective leader
◆ defines the top most desirable qualities
a leader can have as actionable
behaviors anyone can develop over
time.
Theory Y Leaders vs Theory X Leaders
● Theory Y or Person-Oriented Leaders - acts
in a warm and supportive manner and shows
concern for subordinates. Believes that
employees are intrinsically motivated, seek
responsibility and self-control.
● Theory X or Task Oriented Leaders - are
high in initiating structure, defining their roles
and the roles of his subordinates. Believes that
employees are lazy, extrinsically motivated,
undisciplined.
SELF AWARENESS, BALANCE, TRANSPARENCY,
MORALITY
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WEEK 9
Theories of Motivation
Work Motivation
● Intrinsic Motivation - motivation in the
absence of external factors such as pay,
promotion and coworkers.
● Extrinsic Motivation - arises from non
personnel factors such as pay, coworkers and
opportunities for advancement.
● Self-Regulation - a theory that employees can
be motivated by monitoring their own progress
toward the goals they set and adjusting their
behavior to reach those goals.
Need-Based Theories of Motivation
1. Needs Hierarchy Theory - Developed by
Abraham Maslow
As the person satisfies a lower level
need, the next higher need in the hierarchy
becomes the primary motivator, this is known
as the satisfaction-progression process.
2. ERG Theory - developed by organizational
behavior scholar Clayton Alderfer to overcome
the problems with Maslow’s needs hierarchy
theory.
❖ Existence needs – include a person’s
physiological and physically related
safety needs, such as food, shelter and
safe working conditions.
❖ Relatedness needs – include a
person’s need to interact with other
people, receive public recognition, and
feel secure around people.
❖ Growth needs – consist of a person’s
self-esteem through personal
achievement as well as the concept of
self-actualization.
Employee’s behavior is motivated
simultaneously by more than one need level. It
applies the satisfaction-progression process,
so lower needs tend to dominate a person’s
motivation until they are satisfied. However, it
also includes a frustration-regression
process, whereby those who are unable to
satisfy a higher need become frustrated and
regress back to the next lower need level.
3. Innate Human Drives
Four Fundamental Drives - proposed by Paul
Lawrence and Nitkin Nohria of Harvard
Business School.
➔ Drive to acquire – the drive to seek,
take, control and retain objects and
personal experiences. This drive
extends beyond basic food and water, it
includes the need for relative status and
recognition in society. The drive to
acquire is insatiable because the
purpose of human motivation is to
achieve a higher position than others,
not just to fulfill one’s physiological
needs.
➔ Drive to bond – the drive to form social
relationships and develop mutual caring
commitments with others. It explains
why people form social identities by
aligning their self-image with various
social groups. The drive to bond
motivates people to cooperate and
consequently, is a fundamental
ingredient in the success of
organizations and the development of
societies.
➔ Drive to learn – the drive to satisfy
one’s own curiosity, to know and
understand ourselves and the
environment around us. When
observing something that is
inconsistent with or beyond our current
knowledge, we experience a tension
that motivates us to close that
information gap. The drive to learn
fulfills our need for personal and social
identity and is related to higher order
needs of growth and self-actualization.
➔ Drive to defend – the drive to protect
ourselves physically and socially. It is
the first drive to develop, it created a
fight-or-flight response in the face of
personal danger. This drive goes
beyond protecting our physical self, it
includes defending our relationships,
our acquisitions and our belief system.
This drive is always reactive, it is
triggered by threat.
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4. Theory of Learned Needs
David McClelland devoted his career to
studying 3 secondary needs that he considered
particularly important sources of motivation.
1. Need for Achievement (nAch) – people with
a strong need for this want to accomplish
reasonably challenging goals through their own
effort. They prefer to work alone rather than in
teams and they choose tasks with a moderate
degree of risk. These people also desire
unambiguous feedback and recognition for
their success.
2. Need for Affiliation (nAff) – refers to the
desire to seek approval from others, conform
to their wishes and expectations, and avoid
conflict and confrontations. People with a
strong need for affiliation want to form positive
relationships with others, they try to project a
favorable image of themselves and take other
steps to be liked by others. Those who have
high affiliation actively support others and try to
smooth out conflicts that occur in meetings and
other social settings.
3. Need for Power (nPw) – refers to the desire to
control one’s own environment, including
people and material resources. People who
are high on this want to exercise control over
others and are concerned about maintaining
their leadership position. They rely on
persuasive communication, make more
suggestions in a meeting and tend to publicly
evaluate situations more frequently. There are
people who have a high need for personal
power and use it to advance their careers and
other personal interests. Others have a high
need for socialized power and they use it as a
means to help others, such as improving
society or increasing organizational
effectiveness.
5. Two-Factor Theory - Herzberg
● Hygiene Factors - job-related elements that
result from but do not involve the job itself.
○ Pay, security, coworkers, working
conditions, company policy, work
schedule, supervisors.
● Motivators - Job elements that do concern
actual tasks and duties.
○ Level of responsibility, amount of job
control, interest in work, challenge,
variety, independence etc.
6. Expectancy Theory - Victor Vroom
● Motivation is a function of:
○ Expectancy - perceived relationship
between the amount of effort an
employee puts in and the resulting
outcome.
○ Instrumentality - the extent to which the
outcome of a worker’s performance, if
noticed, results in a particular
consequence.
○ Valence - extent to which the employee
values a particular consequence.
7. Goal Setting Theory - John Locke
It states that specific and challenging goals
along with appropriate feedback contribute to higher
and better task performance.
8. Equity Theory - John Stacey Adams, 1965
Posits that people maintain a fair relationship
between the performance and rewards in comparison
to others. In other words, an employee gets
demotivated by the job and his employer in case his
inputs are more than the outputs.
1. Overpaid Inequity - When an individual
perceives that his outcomes are more as
compared to his inputs, in relation to others.
The overpaid inequity can be expressed as:
2. Underpaid Inequity - When an individual
perceives that his outcomes are less as
compared to his inputs, in relation to others.
The Underpaid Equity can be expressed as:
3. Equity - An individual perceives that his
outcomes in relation to his inputs are equal to
those of others. The equity can be expressed
as:
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Rewarding Employees
Organizations offer incentives for a wide
variety of employee behaviors, including working
overtime or on weekends, making suggestions,
referring applicants, staying with the company (length-
of-service awards), coming to work (attendance
bonuses), not getting into accidents, and performing
at a high level (Henderson, 2006)
Operant Conditioning Principles
➔ Basis for incentive system
➔ State that employees will engage in behaviors
for which they are rewarded and avoid
behaviors for which they are punished.
➔ If employees are rewarded for not making
errors, they are more likely to produce high-
quality work.
➔ If employees are not rewarded for any
behavior, they will search for behaviors that
will be rewarded.
Effectiveness of Incentive Programs
● Timing of the Incentive - Research indicates
that a reinforcer or a punisher is most effective
if it occurs soon after the performance of the
behavior.
● Contingency of the consequences - If it is not
possible to immediately reward or punish a
behavior, it should at least be made clear that
the employee understands the behaviors that
brought reward or punishment.
● Type of incentive used - Different employees
have different values, which is why supervisors
should have access to and be trained to
administer different types of reinforcers.
● Use of individual-based versus group-based
incentives
● Use of positive incentives (rewards) versus
negative incentives (punishment)
● Fairness of the reward system (equity)
It is important to conduct periodic employee
surveys about what employees want because
supervisors and employees often have different ideas
about what is rewarding and important (Babcock,
2005).
Premack Principle - which states that reinforcement
is relative and that a supervisor can reinforce an
employee with something that on the surface does not
appear to be a reinforcer.
❖ Financial rewards
❖ Recognition
❖ Travel
Individual Versus Group Incentives
Individual incentive plans are designed to
make high levels of individual performance financially
worthwhile and the research is clear monetary
incentives increase performance over the use of a
guaranteed hourly salary (Bucklin & Dickinson, 2001).
However, it can foster competition.
- Pay-For-Performance - pay employees
according to how much they individually
produce.
- Merit Pay - base their incentives on
performance appraisal scores rather than on
such objective performance measures as sales
and productivity.
Use of Incentive Plans
- Group Incentive Plans - profit sharing, gain
sharing, stock options
- Reward Versus Punishment - suspend
employees for low levels of performance. For
punishment to be effective, an employee must
understand why he is being punished and be
shown alternative ways of behaving that will
result in some type of desired reinforcement.
Equity Theory
Based on the premise that our levels of
motivation and job satisfaction are related to how fairly
we believe we are treated in comparison with others. If
we believe we are treated unfairly, we attempt to
change our beliefs or behaviors until the situation
appears to be fair.
3 Components in the Perception of Fairness
● Inputs - personal elements that we put into our
jobs (time, effort, education, and experience).
● Outputs - elements that we receive from our
jobs (pay, benefits, challenge, and
responsibility).
● Input/Output Ratio - employees subconsciously
list all their outputs and inputs and then
compute.
WEEK 10
Organizational Development
Organizations - A coordinated group of people who
perform tasks to produce goods and services,
colloquially referred to as companies.
Schools of thought:
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 1. Classical theory - focuses mainly on
structural relationships in organizations.
a. Functional Principle - the concept
behind division of labor.
b. Scalar Principle - deals with
organization’s vertical growth and
refers to the chain of command that
grows with levels added to the
organization.
c. Line/Staff Principle
2. Neoclassical Theory - developed in 1950,
origins from Hawthorne studies.
3. Systems Theory - developed in 1970 that
described organizations in terms of
interdependent components that form a
system. Katz and Kahn were the early
proponents of this.
Organizational Commitment
- The bond employees experience with their
organization. If they feel that they fit and feel
they understand the goals of the organization
then there is commitment. The added value of
such employees is that they tend to be more
determined in their work, show relatively high
productivity and are more proactive in offering
their support.
- is the individual's psychological attachment to
the organization.
Employee Engagement
- The level of the employees’ involvement in
carrying out the business operations.
Employee Commitment
- Commitment means the employees’ dedication
towards achieving a particular task effectively
and efficiently.
Importance of Organizational Commitment
Predicts work variables such as
➔ Turnover
➔ Organizational Citizenship Behavior
➔ Job Performance
Some of the factors such as
➔ Role Stress
➔ Empowerment
➔ Job Insecurity
➔ Employability
➔ Distribution of leadership
Have been shown to be connected to a worker’s
sense of organizational commitment.
Job Satisfaction - An employees’ feelings about their
job.
Organizational Identification - The degree to which
an employee experiences a ‘sense of oneness’ with
their organization.
Three Kinds of Organizational Commitment:
1. Affective Commitment - The type of
organizational commitment that is based on an
individual’s desire to remain in an organization.
2. Continuance Commitment - The type of
organizational commitment that is based on
the fact that an individual cannot afford to
leave.
3. Normative Commitment - The type of
commitment that is based on an individual’s
perceived obligation to remain within an
organization.
Model of Commitment
Meyer and Allen use the tri-dimensional model
to conceptualize organizational commitment in three
dimensions namely;
➢ Affective Commitment
➢ Continuance Commitment
➢ Normative Commitment
These dimensions describe the different ways
of organizational commitment development and the
implications for employees’ behavior.
Figure presents the tri-dimensional
organizational commitment model.
Affective Commitment - employee's positive
emotional attachment to the organization.
➢ Meyer and Allen Defined as the “desire”
component of organizational commitment.
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 ➢ An employee who is effectively committed effort on the job and stay with the organization
strongly identifies with the goals of the to 'repay the debt.'
organization and desires to remain a part of ➢ It may also reflect an internalized norm,
the organization. developed before the person joins the
➢ This employee commits to the organization organization through family or other
because he/she "wants to". socialization processes, that one should be
➢ This commitment can be influenced by many loyal to one's organization.
different demographic characteristics: age, ➢ The employee stays with the organization
tenure, sex, and education but these because he/she "ought to". But generally if an
influences are neither strong nor consistent. individual invests a great deal they will receive
➢ The problem with these characteristics is that “advanced rewards.”
while they can be seen, they cannot be clearly ➢ Normative commitment is higher in
defined. organizations that value loyalty and
➢ Meyer and Allen gave this example that systematically communicate the fact to
“positive relationships between tenure and employees with rewards, incentives and other
commitment may be due to tenure-related strategies.
differences in job status and quality”.
Continuance Commitment - the “need” component Predictors of Commitment
or the gains versus losses of working in an Intrinsic/Personal Characteristics + Extrinsic Factors =
organization. commitment and organizational citizenship behavior.
➢ “Side bets,” or investments, are the gains and
losses that may occur should an individual stay Exit-Voice-Loyalty-Neglect
or leave an organization. A framework that includes potential responses
➢ An individual may commit to the organization to negative events.
because he/she perceives a high cost of losing ● Exit - Ending or restricting organizational
organizational membership membership
➢ Things like economic costs (such as pension ● Voice - A constructive response where
accruals) social costs (friendship ties with co- individuals attempt to improve the situation.
workers) would be costs of losing ● Loyalty - A passive response where the
organizational membership. employee remains supportive while hoping for
➢ But an individual doesn’t see the positive costs improvement.
as enough to stay with an organization; they ● Neglect - Interest and effort in the job is
must also take into account the availability of reduced.
alternatives (such as another organization),
disrupt personal relationships, and other “side Increasing Job Satisfaction & Organization
bets” that would be incurred from leaving their Commitment
organization. ❖ Changes in Job Structure
➢ The problem with this is that these “side bets” ➢ Job Rotation – moving workers from
don’t occur at once but that they “accumulate one specialized job to another.
with age and tenure ➢ Job Enlargement – the practice of
Normative Commitment - The individual commits to allowing workers to take on additional,
and remains with an organization because of feelings varied tasks in effort to make them feel
of obligation, the last component of organizational that they are more valuable members
commitment. of the organization.
➢ These feelings may derive from a strain on an ➢ Job Enrichment – raising the
individual before and after joining an responsibility associated with a
organization. particular job by allowing workers a
➢ For example, the organization may have greater voice in the planning ,
invested resources in training an employee execution and evaluation of their own
who then feels a 'moral' obligation to put forth activities.

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❖ Changes in Pay Structure
➢ Skill-Based Pay – paying employees an
hourly rate based on their knowledge
and skills.
➢ Merit Pay – a plan in which the amount
of compensation is directly a function of
an employee's performance.
➢ Gainsharing – make pay contingent on
effective group performance.
➢ Profit Sharing – all employees receive
a small share of the organization’s
profits.
❖ Flexible Work Schedules
➢ Compressed Work Weeks – the
number of workdays is decreased while
the number of hours worked per day is
increased.
➢ Flextime – a scheduling system
whereby a worker is committed to a
specified number of hours per week but
has some flexibility concerning the
starting and ending times of any
particular workday.
❖ Benefit Program
➢ Flexible Working Hours
➢ Variety of Health Care Option
➢ Different Retirement Plans
➢ Career Development Programs
➢ Health Promotion Programs
➢ Employee-Sponsor Childcare
❖ Positive Employee Attitudes & Behaviors
➢ Organizational Citizenship Behaviors -
consists of efforts by organizational
members that advance or promote the
work organization , its image , and its
goals.
➢ Positive affect and employee well-being
- the role of positive emotions , or
positive affect , in influencing employee
attitudes , such as job satisfaction and
fostering positive employee behaviors.
❖ Employees are more committed when
employers are committed to them.
➢ Perceived Organizational Support
➢ Fostered when Organizations
➢ Protect Job Security
➢ Provide Rewards
➢ Improve Work Conditions
➢ Minimize Politics
Stages of Organizational Commitment
1. Compliance Stage - employee accepting the
influence of others mainly to benefit from them,
through remuneration or promotion.
- At this stage, attitudes and behaviors are
adopted not because of shared beliefs but
simply to gain specific rewards.
- The nature of organizational commitment in
the compliance stage is associated with the
continuance dimension commitment, where
the employee is calculative with the need to
stay in the organization when evaluating the
rewards.
- This implies that at this stage employees stay
in the organization because of what they
receive.
2. Identification Stage - occurs when employees
accept the influence of others in order to
maintain a satisfying self-defining relationship
with the organization.
- Employees feel proud to be part of the
organization; they may regard the roles they
have in the organization as part of their self-
identity.
- Organizational commitment at this stage is
based on the normative dimension.
- The individual stays because he or she should
and is guided by a sense of duty and loyalty
towards the organization.
3. Internalization Stage - takes place when the
employee finds the values of the organization
to be intrinsically rewarding and congruent with
his or her personal values.
- Organizational commitment at this level is
based on the affective dimension.
- The employee at this stage develops not only
the sense of belonging but passion to belong
to the organization hence the commitment is
based on a “want to stay” basis.
- The values of the individual are therefore
congruent with those of the group and the
organization.
Levels of Organizational Commitment
There are different levels of organizational
commitment which are related to the individual’s
development of the individual’s organizational
commitment.
1. High Level of Organizational Commitment -
characterized by a strong acceptance of the
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 organization's values and willingness to exert
efforts to remain with the organization.
- “High Organizational Commitment means
identifying with one’s employing organization.”
- The “will to stay” suggests that the behavioral
tendencies at this level relate closely with the
affective dimension of commitment, where
individuals stay because they want.
2. Moderate Level of Organizational
Commitment - characterized by a reasonable
acceptance of organizational goals and values
as well as the willingness to exert effort to
remain in the organization.
- This level can be viewed as a reasonable or
average commitment, which implies partial
commitment.
- The willingness to stay is an attribution of a
moral commitment associated with the
normative dimension of commitment.
- The individuals stay in the organization
because they should do so.
3. Lower Level of Organizational Commitment
- characterized by a lack of acceptance of
organizational goals and values nor the
willingness to exert effort to remain with the
organization.
- The employee who operates on this level must
be disillusioned about the organization; such
an employee may stay because he or she
needs to stay as associated with the
continuance dimension.
- Given an option they will leave the
organization.
Factors affecting Organizational Commitment
● Job-Related Factor
○ Organizational commitment is an
important job-related outcome at the
individual level, which may have an
impact on other job-related outcomes
such as turnover, absenteeism, job
effort, job role and performance or vice
versa.
○ The job role that is ambiguous may
lead to lack of commitment to the
organization and promotional
opportunities can also enhance or
diminish organizational commitment.
○ Other job factors that could have an
impact on commitment are the level of
responsibility and autonomy.
○ The higher the level of responsibility
and autonomy connected with a given
job, the less repetitive and more
interesting it is, and the higher the level
of commitment expressed by the
person who fills it.
● Employment Opportunities
○ The existence of employment
opportunities can affect organizational
commitment.
○ Individuals who have a strong
perception that they stand a chance of
finding another job may become less
committed to the organization as they
ponder on such desirable alternatives.
○ Where there is a lack of other
employment opportunities, there is a
tendency of high levels of
organizational commitment.
○ As a result, membership in the
organization is based on continuance
commitment, where employees are
continuously calculating the risks of
remaining and leaving.
● Personal Characteristics
○ Organizational commitment can also be
affected by the employee's personal
characteristics such as age, years of
service and gender.
○ Older employees, those with tenure or
seniority, and those who are satisfied
with their own levels of work
performance tend to report higher
levels of organizational commitment
than others.
○ This implies that older people are seen
to be more committed to the
organization than other age groups.
Another personal characteristic that
may affect organizational commitment
is associated with gender.
○ However, it is argued that gender
differences in commitment are due to
different work characteristics and
experiences that are linked to gender.
● Working Environment
○ One of the common working
environmental conditions that may
affect organizational commitment
positively is partial ownership of a
company.
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 ○ Ownership of any kind gives
employees a sense of importance and
they feel part of the decision-making
process
○ This concept of ownership which
includes participation in decision-
making on new developments and
changes in the working practices,
creates a sense of belonging.
○ Managers who participate in budget
decision-making tend to have a high
level of organizational commitment.
○ Another factor within the work
environment that may affect
organizational commitment is work
practices in relation to recruitment and
selection, performance appraisal,
promotions and management style.
● Positive Relationships
○ The organization as a workplace
environment is built up of working
relationships; one of which is the
supervisory relationship.
○ The supervisory relationship can affect
organizational commitment either
positively or negatively. A positive
supervisory relationship depends on
how work-related practices such as
performance management are being
implemented in the organization.
○ When individuals find the supervisory
relationship to be fair in its practices,
they tend to be more committed to the
organization.
○ Other work relationships, such as
teams or groups, which exist in the
workplace, can affect organizational
commitment. Organizational members
can demonstrate commitment when
they are able to find value through work
relationships.
● Organizational Structure
○ Bureaucratic structures tend to have a
negative effect on organizational
commitment.
○ "The removal of bureaucratic barriers
and the creation of a more flexible
structure are more likely to contribute to
the enhancement of employee
commitment both in terms of their
loyalty and attachment to the
organization".
○ The management can increase the
level of commitment by providing the
employees with greater direction and
influence.
Management Style I
"The answer to the question of employee
commitment, morale, loyalty and attachment may
consist not only in providing motivators, but also to
remove demotivators such as styles of management
not suited to their context and to contemporary
employee aspirations".
A management style that encourages
employee involvement can help to satisfy employee's
desire for empowerment and demand for a
commitment to organizational goals.
“More flexible and participatory management
styles can strongly and positively enhance
organizational commitment”.
Organizations need to ensure that their
management strategies are aimed at improving
employee commitment rather than compliance.
Effects of Organizational Commitment
Organizational commitment can have either a:
❖ Negative effect on the organization
➢ Implies that the level of organizational
commitment is low. Employees with a
low level of organizational commitment
tend to be unproductive and some
become loafers at work.
➢ “Lack of organizational commitment or
loyalty is cited as an explanation of
employee absenteeism, turnover,
reduced effort expenditure, theft, job
dissatisfaction and unwillingness to
relocate”.
➢ Organizational commitment is regarded
to be the best predictor of employees’
turnover, than the far more frequently
used job satisfaction predictor.
➢ Employees who operate in a
continuance commitment dimension
are calculative of their stay, one would
deduce that such employees may
continuously stay away from work
when they feel like doing so.
❖ Positive effect on the organization
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 ➢ Committed organizational members
contribute positively to the organization
which is not the case with less
committed members. “organizations
whose members have higher levels of
commitment show higher performance
and productivity and lower levels of
absenteeism and tardiness”. This
implies that employees with a high level
of commitment tend to take greater
efforts to perform and invest their
resources in the organization.
➢ Organizational commitment can result
in a stable and productive workforce.
➢ It enables employees to release their
creativity and to contribute towards
organizational development initiatives.
➢ Employees who are highly committed
do not leave the organization because
they are dissatisfied and tend to take
on challenging work activities.
Committed members are normally
achievement and innovative orientated
with the ultimate aim of engaging in
and improving performance.
MANAGING ORGANIZATIONAL COMMITMENT
Organizations are continuously faced with the
demand and supply challenges of the changing
market. In order for the organization to adapt to the
intense competition in the market place and the rapid
changes in technology, it requires organizational
members to be internally committed.
The organization is then faced with a challenge
of managing its employees’ commitment throughout,
to ensure sustainability. The structural and job design
techniques can be used to foster organizational
commitment in the following ways.
Another important mechanism to manage
organizational commitment is through substantial
human resource policies and practices that are fair.
Five Component Commitment Model
More recently, scholars have proposed a five
component model of commitment, though it has been
developed in the context of product and service
consumption.
This model proposes habitual and forced
commitment as two additional dimensions which are
very germane in consumption settings.
It seems, however, that habitual commitment
or inertia may also become relevant in many job
settings. People get habituated to a job—the routine,
the processes, the cognitive schemas associated with
a job can make people develop a latent commitment
to the job – just as it may occur in a consumption
setting.
WEEK 11
Quality Management
Quality Management - It is a process that ensures
the quality of the product throughout its life cycle.
Component of Quality Management
❖ Quality Planning - The first step.
Requirements must be identified, a criteria
needs to be set, and important procedure must
be recognized as a part of the plan.
❖ Quality Control - Needed to review the quality
of the product or service. Inspection and
testing is necessary to identify problems and
defects that need correction. Quality Control
focuses on fulfilling quality requirements.
Objectives and Functions:
1. To establish the desired quality
standards which are acceptable to the
customers?
2. To discover flaws or variations in the
raw materials and the manufacturing
processes in order to ensure smooth
and uninterrupted production.
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 3. To evaluate the methods and the long-term success that stems from customer
processes of production and suggest satisfaction.
further improvements in their
functioning.
4. To study and determine the extent of
quality deviation in a product during the
manufacturing process.
5. To analyze in detail the causes
responsible for such deviation.
6. To undertake such steps which are
helpful in achieving the desired quality
of the product.
❖ Quality Assurance - Companies need to
ensure defects and mistakes are avoided in
the manufacturing of goods or the delivery of
service, and quality assurance guarantees
consistent results. Quality Control focused on Process of Quality Management
providing confidence that quality requirements 1. The organization sets quality targets to be met
will be fulfilled. and which are agreed upon with the customer
2. The organization then defines how the targets
will be measured. It takes the actions that are
required to measure quality. It then identifies
any quality issues that arise and initiates
improvements.
3. The final step involves reporting the overall
level of the quality achieved.

Total Quality Management

“Total Quality management is defined as a
Stages of Quality Assurance: continuous effort by the management as well as
1. Understand the customer needs employees of a particular organization to ensure long
2. Define the objectives term customer loyalty and customer satisfaction. ”
3. Designing the product
4. Prototyping
5. Quality Testing
6. Customer approval
7. Product pilot test
8. Quality test
9. Customer feedback
10. Manufacturing
11. Follow up customer feedback
❖ Quality Improvement - There is always room
for improvement. Through quality
improvement, the results can be measured and Principles of Quality Management
possible improvements in products or services There are several principles of quality
can be made. management that the International Standard for
Quality Management adopts. These principles are
Aim of Quality Management used by top management to guide an organization’s
To ensure that all the organization’s processes towards improved performance. They
stakeholders work together to improve the company’s include:
processes, products, services, and culture to achieve

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1. Customer Focus - The primary focus of any
organization should be to meet and exceed the
customers’ expectations and needs. When an
organization can understand the customers’
current and future needs and cater to them,
that results in customer loyalty, which in turn
increases revenue. The business is also able
to identify new customer opportunities and
satisfy them. When business processes are
more efficient, quality is higher and more
customers can be satisfied.
2. Leadership - Good leadership results in an
organization’s success. Great leadership
establishes unity and purpose among the
workforce and shareholders. Creating a
thriving company culture provides an internal
environment that allows employees to fully
realize their potential and get actively involved
in achieving company objectives. Leaders
should involve the employees in setting clear
organizational goals and objectives. This
motivates employees, who may significantly
improve their productivity and loyalty.
3. Engagement of People - Staff involvement is
another fundamental principle. The
management engages staff in creating and
delivering value whether they are full-time,
part-time, outsourced, or in-house. An
organization should encourage the employees
to constantly improve their skills and maintain
consistency. The principle also involves
empowering the employees, involving them in
decision making, and recognizing their
achievements. When people are valued, they
work to their best potential because it boosts
their confidence and motivation. When
employees are wholly involved, it makes them
feel empowered and accountable for their
actions.
4. Process Approach - The performance of an
organization is crucial according to the process
approach principle. The approach principle
emphasizes achieving efficiency and
effectiveness in the organizational processes.
The approach entails an understanding that
good processes result in improved
consistency, quicker activities, reduced costs,
waste removal, and continuous improvement.
An organization is enhanced when leaders can
manage and control the inputs and the outputs
of an organization, as well as the processes
used to produce the outputs.
5. Continuous Improvement - Every
organization should come up with an objective
to be actively involved in continuous
improvement. Businesses that improve
continually experience improved performance,
organizational flexibility, and increased ability
to embrace new opportunities. Businesses
should be able to create new processes
continually and adapt to new market situations.
6. Evidence-Based Decision Making -
Businesses should adopt a factual approach to
decision-making. Businesses that make
decisions based on verified and analyzed data
have an improved understanding of the
marketplace.
7. Relationship Management - Relationship
management is about creating mutually
beneficial relations with suppliers and retailers.
Benefits of Quality Management
➢ It helps an organization achieve greater
consistency in tasks and activities that are
involved in the production of products and
services.
➢ It increases efficiency in processes, reduces
wastage, and improves the use of time and
other resources.
➢ It helps improve customer satisfaction.
➢ It enables businesses to market their business
effectively and exploit new markets.
➢ It makes it easier for businesses to integrate
new employees, and thus helps businesses
manage growth more seamlessly.
➢ It enables a business to continuously improve
its products, processes, and systems.
Benefits to the Company
✘ Improvement in quality
✘ Reduces waste and defects hence
reduced cost
✘ Increases productivity
✘ Results in Faster growth of the company
Benefits to the employee
✘ More training and improved abilities
✘ More recognitions and rewards
Benefits to Customers
✘ Greater satisfaction
✘ Better service
✘ Less no. of problems with product
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Quality Circle - a group of workers who do the same (driving toward six standard deviations between the
or similar work, who meet regularly to identify, analyze mean and the nearest specification limit) in any
and solve work-related problems. process – from manufacturing to transactional and
Properties: from product to service.
● Participative management technique within the
framework of a company 6 Sigma DMAIC Principle
● Teams of 6 to 12 employees voluntarily
● Define and solve a quality or performance D - Define the problem and
related problem the objectives.
Objectives: M - Measure; What do we
● To improve quality, productivity, safety and need to improve? Can we
reduce the cost. measure this?
● To give opportunity to the employees to use A - Analyze the process.
their wisdom and creativity Define the factors of influence.
● To Promote team spirit, cohesive culture I - Improve; Identify and implement improvements.
among different levels and sections of the C - Control; Assure that improvements will sustain.
employees.
● To endorse self and mutual development and The 5S System
leadership quality
● To fulfill the self esteem and motivation needs Sort - Eliminate unnecessary
of employees items from the workspace.
● To develop the quality of work-life of Set in Order - Arrange items
employees so that they are easy to use,
find and put away.
Shine - Keep the items and
work area neat and clean.
Standardize - Create a consistent approach to tasks
and procedures.
Sustain - Make a habit of maintaining the correct
procedures.

Benefits of Quality Circle

● Self-development
● Opportunity to attain knowledge
● Potential Leader
● Enhanced communication skills
● Job-satisfaction
● Healthy work environment
● Organizational benefits: The individual benefits
create a synergistic effect, leading to cost
effectiveness, reduction in waste, better
quality, and higher productivity

6 Sigma
Six Sigma is a disciplined, data-driven
approach and methodology for eliminating defects

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