Unit 4: Performance evaluation
ratings, and their respective advantages
Topic Learning Outcome:
Employee Performance
Evaluation
Topic Learning Outcome:
After reading and studying employee performance
evaluation, students should be able to:
• Define performance appraisals and their
purposes in work organizations.
• Describe issues involved in the measurement
of job performance, including the development
of performance criteria.
• Discuss various sources of performance ratings,
and their respective advantages and
disadvantages.
• Discuss the benefits and costs associated with
360-degree feedback.
• Discuss various methods of rating
performance, and their respective advantages
and disadvantages.
• Discuss the various problems and pitfalls
involved in the performance appraisal process.
• Discuss the influence of civil rights legislation on
the use of performance appraisals.
• Discuss the need for performance appraisals
systems that consider work teams.
Evaluating Employee
Performance
Evaluating Employee Performance
LEARNING OBJECTIVES
After reading and studying chapter 6, students
should be able to:
o Define performance appraisals and their
purposes in work organizations.
o Describe issues involved in the
measurement of job performance, including
the development of performance criteria.
o Discuss various sources of performance
and disadvantages.
o Discuss the benefits and costs associated
with 360-degree feedback.
o Discuss various methods of rating
performance, and their respective
advantages and disadvantages.
o Discuss the various problems and pitfalls
involved in the performance appraisal
process.
o Discuss the influence of civil rights
legislation on the use of performance
appraisals.
o Discuss the need for performance appraisals
systems that consider work teams.
Definition of Terms
• Performance appraisals are the formalized
means of assessing worker performance in
comparison to certain established organizational
standards.
• Performance criteria are measures used to
determine successful and unsuccessful job
performance.
• Objective performance criteria are measures of
job performance that are easily quantified (also
called “hard” criteria).
• Subjective performance criteria are measures
of job performance that typically consist of
ratings or judgments of performance (also
called “soft” criteria).
• Criterion relevance refers to the extent to which
the means of appraising performance are
•
pertinent to job success.
Criterion contamination refers to the extent to
which performance appraisals contain elements
that detract from the accurate assessment of job
effectiveness.
• Criterion deficiency refers to the degree to
which a criterion falls short of measuring job
performance.
• Criterion usefulness refers to the extent to
which a performance criterion is usable in
appraising a particular job.
• 360-degree feedback is a method of gathering
performance appraisals from a worker’s
 supervisors, subordinates, peers, customers,
and other parties.
• Comparative methods are performance
appraisal methods involving comparisons of one
worker’s performance against that of other
workers; include rankings, paired comparisons,
and forced distributions.
• Rankings are performance appraisal methods
involving rank ordering of supervisors from best
to worst.
• Paired comparison methods are performance
appraisal methods in which the rater compares
each worker with each other worker in
the group.
• Forced distributions are performance appraisal
methods that involve assigning workers to
established categories of poor to good
performance with fixed limitations on how many
employees can be assigned to each category.
• Individual methods are performance appraisal
methods that evaluate an employee
by himself or herself, without explicit
reference to other workers; include graphic
rating scales, behaviorally anchored ratings
scales, behavioral observation scales, checklists,
and narratives.
• Graphic rating scales are performance appraisal
methods using a predetermined scale to rate the
worker on important job dimensions.
• Behaviorally anchored rating scales (BARS) are
performance appraisal techniques using rating
scales with labels reflecting examples of poor,
average, and good behavioral incidents.
• Behavioral observation scales (BOS) are
performance appraisal methods that require
appraisers to recall how often a worker has
been observed performing key work behaviors.
• Checklists are performance appraisal methods
using a series of statements about job
performance.
• Narratives are open-ended written accounts of a
worker’s performance used in performance
appraisals.
• The leniency error is the tendency to give all
workers very positive performance appraisals,
while the severity error is the tendency to give
all workers very negative performance
appraisals.
• The central tendency error is the tendency to
give all workers the midpoint rating in
performance appraisals.
• The halo effect refers to the overall positive
evaluation of a worker based on one known
positive characteristic or action.
• The recency effect refers to the tendency to
give greater weight to recent performance and
lesser weight to earlier performance.
• Causal attribution is the process by which
people assign cause to events or behaviors.
• The actor-observer bias refers to the tendency
for observers to overattribute cause to
characteristics of the actor and the tendency for
the actor to overattribute cause to situational
characteristics.
• Performance feedback is the process of giving
information to a worker about performance level
with suggestions for future improvement.
Topic Summary:
• A thorough job analysis is the starting point for
measuring and evaluating actual job
performance.
• Performance appraisals involve the
assessment of worker performance on the
basis of predetermined organizational
standards.
- Performance appraisals serve many
important purposes, including being the
basis for personnel decisions and a means
of assessing performance.
• One way to categorize performance is in terms
of objective and subjective criteria.
- Objective performance criteria are more
quantifiable measurements of performance,
such as the number of units produced or
dollar sales.
- Subjective performance criteria typically
involve judgments or ratings of
performance.
- Concerns for a performance
criterion include:
- criterion relevance - whether it is
relevant to job success.
- criterion contamination; whether the
criterion contains elements that detract
 from the "pure" assessment of
performance,
- criterion deficiency the degree to which a
criterion falls short of perfect assessment
of job performance,
- criterion usefulness whether the criterion is
usable
• Research on ratings of job performance have
examined who is making performance ratings.
• Self-appraisals are ratings or evaluations made
by the workers themselves.
• Peer appraisals involve coworkers rating each
other's performance. In some instances,
subordinates may rate the performance of their
supervisors. Most common, of course, are
supervisory ratings of subordinates'
performance.
• 360-degree feedback involves getting multiple
performance evaluations, from supervisors,
peers, subordinates, and customers.
• There are a variety of methods for rating
performance.
• Comparative methods of appraisal, such as the
paired comparison and forced-distribution
techniques, directly compare one worker's
performance with that of other workers.
• Individual methods of appraisal do not make
direct comparisons with other workers.
- Individual methods include checklists and
forced choice scales, and are easy to use
methods of appraisal that require the
evaluator simply to check off statements’
characteristic or uncharacteristic of a
particular worker's job performance.
- The most common method of individual
performance appraisal involves the use
of graphic rating scales,
- graphic rating scales- is whereby an
appraiser uses a standardized rating
instrument to make a numerical and/or
verbal rating of various dimensions of job
performance.
o A specific type of rating technique,
the behaviorally anchored rating
scale (BARS), uses examples of
good and poor behavioral incidents
as substitutes for the scale anchors
found in traditional rating
instruments.
• A major problem in rating job performance is
caused by systematic biases and errors.
- Response tendency errors, such
as leniency/severity or central tendency
errors, lead to consistently good, bad, or
average ratings, respectively.
- Halo effects occur when appraisers make
overall positive (or negative) performance
appraisals because of one known out-
standing characteristic or action.
- recency effects- are errors caused by
giving greater weight to more recent
performance,
- various attribution errors, including
the actor-observer bias. The latter may
lead an appraiser to place greater emphasis
on dispositional factors and lesser
emphasis on situational factors that may
have affected performance.
• A good performance appraisal consists of two
parts: the performance assessment
and performance feedback.
- The feedback should occur in a face-to-face
situation in which the supervisor provides
constructive information, encouragement,
and guidelines for the improvement of the
worker's future performance.
- Because performance appraisals are
important to the worker's livelihood and
career advancement, there are considerable
legal overtones to the appraisal process.
- Performance appraisals must be valid
procedures, resulting from job analysis, that
do not unfairly discriminate against any
group of workers.
- Because of the proliferation of work teams,
organizations are developing team
appraisals–evaluating an interdependent
group of workers as a unit.
- The changing nature of work means that
performance appraisal systems need to be
constantly reviewed and revised to keep up
with changes in jobs.
Steps in
Performance
Appraisal
Performance Appraisal
• Evaluating employees’ performance
Steps in Performance Appraisal
STEP 1: DETERMINE THE REASON FOR
EVALUATING EMPLOYEE PERFORMANCE
• Providing employee training and feedback
o Strengths and weaknesses are discussed
during performance appraisal review
• Determining salary increases
o Performance appraisal results serves as
basis for salary increases
• Making promotion decisions
o Determine which employees will be
promoted
o Peter principle
▪ Promotion of employees until they reach
their highest level of incompetence
o Making termination decisions
o Conducting personnel research
▪ Test validation
STEP 2: IDENTIFY ENVIRONMENTAL AND
CULTURAL LIMITATIONS
• Work stress
• Time factors
• Employee relations
STEP 3: DETERMINE WHO WILL EVALUATE
PERFORMANCE
• 360-degree feedback
o From all people around including customers,
co-workers, supervisors and subordinates
• Supervisors
o Most common
o They see output and results of employees
• Peers
o From employees who work directly with an
employee
•
o See actual behavior
Subordinates
o Aka upward feedback, subordinate feedback
o Ratings may backlash
o Possible if:
▪ Supervisor is open to comments
▪ Done anonymously
▪ Employee feels confident and is
competent
o Customers
▪ Informally, done by filing complaints or
talking to manager
▪ Formally, done by completing evaluation
cards
o Self-appraisal
▪ Effective if appraisal is not used for
promotions and salary increases
STEP 4: SELECTING THE BEST APPRAISAL
METHODS TO ACCOMPLISH GOALS
• Criteria
o Ways of describing employee success
• Decisions to be made in selection
o Decision 1: Focus of the Appraisal
Dimension
▪ Trait-focused performance dimension
-Focuses on employee attributes such
as honesty, dependability and courtesy
▪ Poor feedback - attributes or traits are
personal
▪ Competency focused performance
dimension
▪ Focuses on KSAOs
▪ Easy to provide feedback and
suggest corrective measures
▪ Writing skills, driving skills
▪ Task-focused performance dimension
▪ Focuses on similarity of tasks
performed
▪ Example for a police officer:
 ▪ Testifying in court
▪ Following apprehending
procedures
▪ Easier to evaluate
▪ Difficult to give corrective
measures
▪ Source of incompetence is
ambiguous
▪ Goal focused performance
dimension
▪ Focuses on goals to be
accomplished
▪ Easier for employees to
understand why certain
behaviors are expected
▪ Contextual performance
▪ Focuses on effort of
employees to:
▪ Get along with peers
▪ Improve the organization
▪ Perform tasks that are
need but not necessarily
theirs
o Decision 2: Should dimensions be
weighed?
▪ Some dimensions are
more important than
others
o Decision 3: Use of Employee
comparisons, Objective Measures,
Ratings
• Employee comparison
- Employees are compared to each other
• Rank order
- Easiest and most common
- Employees are ranked in order by their
judged performance for each relevant
dimension
- Ranks are averaged across all dimension
• Paired Comparisons
- Pairing employees and choosing which of
the pair is better
• Forced Distribution
o Predetermined percentage of employees are
placed in each of the five categories
• Objective Measures
o Quantity of work
▪ Counting number of job relevant
behaviors
▪ Salesperson: number of units she sells
▪ Not applicable to all professions:
doctors, firefighters
o Quality of work
▪ Measured in terms of errors
▪ Errors - Anything that deviates from the
norm or standard
▪ Evaluated by comparing to a standard
o Attendance
▪ Three areas:
▪ Absenteeism
▪ Tardiness
▪ Tenure (length of stay of employee
with company)
o Safety
▪ Employees who follow rules do not
get into accidents thus do not cost
company
o Ratings of performance
▪ Most commonly used
▪ Supervisor rate employees in
dimensions
▪ Graphic rating scale
▪ Dimensions are rated from poor
to excellent
▪ Easy to use
▪ Susceptible to rating errors
▪ Behavioral checklists
▪ Consists of list of behaviors,
expectations and results for
each dimension
▪ To force supervisor to focus on
job related behaviors
▪ Constructed by taking task
statements from job description
and converting them into
behavioral performance
statements
 • Behavior based statements - Knows
customers
• Results-focused statement - Completed
report on time
o Problem: CONTAMINATION
- Factors outside of employee’s control can
affect employee’s performance
• Comparisons with other employees
- Supervisors rate an employee by comparing
his or her performance with other
employees
- Uses average, below average, above
average
• Frequency of desired behaviors
- How often does an employee do job
relevant behaviors
- Uses always, seldom, often
• Extent to which organizational expectations
are met
- Measures extent to which behaviors of
employees meet organizations’ expectations
STEP 5: TRAIN RATERS
• Purpose
o Increase accuracy of ratings
o Decrease rating errors
o Increase validity of tests validated against
ratings
o Increase employee satisfaction with ratings
STEP 6: OBSERVE AND DOCUMENT
PERFORMANCE
• Critical incidents
o Examples of poor and excellent behaviors of
employees
o Written in a CRITICAL INCIDENT LOG
- Formal accounts of excellent and poor
employee performance observed by the
supervisor
o Importance of documentation
▪ Forces supervisor to focus on behaviors
and not traits
▪ Helps supervisor recall behaviors
▪ Used as examples when reviewing
performance ratings with employees
▪ Helps organization defend against legal
actions
STEP 7: EVALUATE PERFORMANCE
• Obtaining and Reviewing Objective Data
o Obtain needed data according to job
▪ Sales record
▪ inventory
o Consider contamination
• Reading Critical Incidents Log
o To reduce primacy, recency, leniency error
• Completing rating form
o Assigning performance appraisal ratings
o Common errors in rating
• Distribution errors
- Rater uses only one part of rating scale
- Rating all dimensions as same
Kinds
❖ Leniency error
- Rating employees as very good or excellent
- Supervisors do not feel good rating
employees lowly
- Supervisors don’t know difference between
good and bad performance
❖ Central tendency error
- Rating employees as average or always in
the middle
❖ Strictness error
- Rates employee at low end of scale or poor
and below average
• To ELIMINATE: have SEVERAL raters
➢ Halo errors
- Rater allows single attribute to affect overall
impression or judgement
- Occurs when rater has little knowledge
about job and is not familiar with employee
- If rating in one dimension is highly
correlated with other dimensions then this
error may have occurred
• To ELIMINATE: rate dimensions at different Reasons: Behaviors remembered are
times those consistent with general impression
➢ Proximity errors Greater time between behaviour and
- Rating on one dimension affects rating on recall, tendency for error to occur
following dimension
- Only dimensions located next to each other • Emotional state
are affected - Stress experienced by supervisor
- Distance is the key - More stress, more errors

➢ Contrast errors • Bias

- Rating of one employee can be affected by
rating of previous employee
- Occurs when rater sees employee and rates
employee on multiple occasions
➢ Assimilation
- Rater reads excellent on previous
evaluation; rater will still give excellent
evaluation even if he or she observe poor
performance
➢ Low reliability across raters
- Raters seldom agree with each other
- Reasons:
o Errors
o Different standards and ideals
o See different behaviors
• To ELIMINATE: training of raters
➢ Sampling problems
✓ Recency effect
- Appraisal conducted once or twice a year
- Recent behaviors are given more weight
than previous ones
✓ Infrequent observation
- Raters are not able to observe everything
- Reasons:
Busy with their work
• Hawthorne effect
- Cognitive processing of observed behavior
- Observation of behavior
Poor recall of behavior
- Feelings or affect or rater towards
employee may affect ratings
STEP 8: COMMUNICATE APPRAISAL RESULTS TO
EMPLOYEES
• Prior to interview
o Allocating time
▪ To prepare for interview
o Scheduling the interview
▪ Location should be private and secure
▪ Face to face, no barrier in between
▪ Feedback is given throughout year even
if appraisal is done once or twice a year
only
▪ Choose convenient time for both parties
o Preparing for the interview
▪ Supervisor check and review ratings and
reasons
▪ Feedback will affect satisfaction of
employee
▪ Employee prepare for reasons for
behaviour and ratings of self
o During the interview
▪ Things to communicate:
▪ Purpose of performance appraisal
▪ How it was conducted
▪ How process was achieved
▪ Expectation that interview will be
interactive
▪ Goals is to understand and improve
▪ Figure out reasons for behaviour,
consider external factors also
▪ Avoid FUNDAMENTAL ATTRIBUTION
ERROR
▪ Blame poor performance on
personal reasons and not consider
external factors
 • Proponents of the Total Quality Management
(TQM) movement view multiple perspective
• Figure out how to solve problem or how to appraisals as tools to enhance quality.
improve - Worker performance is evaluated by
• Lastly, set goals and how to achieve them subordinates, peers, customers, suppliers,
and superiors in what has become known
STEP 9: TERMINATE EMPLOYEES as the 360-degree feedback performance
appraisal.
• Probationary period • A recent article by London and Beatty (1993)
o Chance to prove self within specific time points out some of the advantages of such
• Violation of rules appraisals, and provides information on some
• Inability to perform of the methods used to conduct them.
• Layoff (reduction in force) • Some of the advantages of the method for
• Termination meeting supervisors and managers include the potential
o Prior to meeting to improve leadership behavior, customer
▪ Set time and date, location satisfaction, and organizational culture.
▪ Monday or Tuesday • Organizations clearly need to know whether or
▪ Prepare evidence for termination not their customers are satisfied, as customer
▪ Determine how company can help dissatisfaction can lead to undesirable
employee outcomes such as decreased profits and loss
o During the meeting of jobs.
▪ Straight to the point • Customer feedback can provide information on
▪ State reasons specific areas of satisfaction, and point out
▪ Express gratitude areas of discrepancy between organizational
▪ Offer help and customer perceptions of goods and
o After the meeting services.
▪ Be honest with other employees about • Customers may be asked to provide feedback
what happened concerning their perceptions of the
organization’s dependability, responsiveness,

What is 360-degree
flexibility, and availability of employees with
whom they communicate. Such feedback may
serve as the basis for programs to improve
feedback? customer satisfaction.

• Supervisors who participate in the use of 360-

What is 360-degree feedback?
• As noted in previous topics, multiple-
perspective performance appraisals are high in
reliability because multiple raters may notice
different particular aspects of a worker’s
performance, and because there is a higher
likelihood of counterbalancing raters’ individual
biases.
• In addition, workers tend to view such multiple-
perspective appraisals as being more fair than
single-rater evaluations.
degree feedback may become more sensitive
to the viewpoints of subordinates and
coworkers.
• Employees in supervisory positions may strive
to make favorable impressions on their
superiors, while treating subordinates with
indifference or lack of concern.
• Even when supervisors make the effort to
engage in positive leadership behavior, there
may be discrepancies between supervisor and
subordinate perceptions of these leader
behaviors.

• Such discrepancies may be identified through
feedback from subordinates.
• Further, such discrepancies can be used as the
basis of improving leadership skills.
• Subordinates may evaluate supervisors
concerning such areas as coaching, integrity,
sensitivity, decision making, communication,
and problem identification.
• Most progressive organizations strive to
establish a culture of teamwork, creativity, and
quality-mindedness.
• The 360-degree feedback evaluation can be an
excellent tool for diagnosis and intervention in
organizations that are experiencing lack of
organizational performance on many levels.
• London, M., & Beatty, R.W. (1993). 360-
degree feedback as a competitive
advantage. Human Resource Management,
32, 353-372.
Applications of 360-Degree
Feedback: Using It Successfully
• In a review of organizational 360-degree
feedback programs, Dalton (1998) outlines
several specific applications of 360-degree
feedback, as well as several principles for
effective use of the method. I
• n addition to its use as an overall
performance appraisal system, 360-degree
feedback programs are often used to assist
in succession (i.e., promotion) planning and
the development of high-potential
managers.
• The method provides baseline information
about an individual employee’s perceived
impact on the organization from a variety of
organizational perspectives.
• 360-degree performance appraisals are also
used to help employees take charge of their
careers.
• To recruit and retain good people,
organizations must at a minimum provide
employees with the opportunity to engage in
experiences that support individual
development.
• Some organizations have even developed
do-it-yourself development programs
involving 360-degree feedback.
• Finally, 360-degree feedback may be used
to change organizational cultures, being
used as a strategy to communicate to
employees that new skills will be needed to
effectively implement new business
strategies or directions.
• 360-degree feedback may be used to point
out new directions for employees and
highlight behaviors that are needed to
implement new strategies.
• Dalton also outlines four principles that
need to be followed if 360-degree feedback
is to be successful.
• First, the application must be “business-
driven,” and the process that it is a part of
must have a rationale that can be quickly
explained and understood by anyone.
• In other words, all employees should know
why 360-degree feedback is being used.
• Second, the organization must need the
behaviors that are being measured.
• Employees receiving feedback must be able
to make a connection between the skills
discussed in the appraisal and the work that
needs to be done currently and in the
future.
• Third, the instruments used in the feedback
process must be reliable and valid.
• Finally, conditions appropriate and
encouraging of learning new skills must
exist.
• That is, the organization must support
development and must be prepared to assist
employees in developing new required skills.
• Dalton, M.A. (1998). Using 360-degree
feedback successfully. Leadership in Action,
18, 2-11.
Unit 5: Theories of Work Motivation
TOPIC 8: Employee Motivation
EMPLOYEE MOTIVATION
LEARNING OBJECTIVES
• After reading and studying chapter 8, students
should be able to:
• Define motivation and discuss its importance to
workers and work organizations.
• Discuss the basic need theories of motivation,
and their respective strengths and weaknesses.
• Discuss the various behavior-based theories of
motivation, and their respective strengths and
weaknesses.
• Discuss the various job design theories of
motivation, and their respective strengths
and weaknesses.
• Discuss cognitive theories of motivation, and
their strengths and weaknesses.
• Compare and contrast the various types of
theories of worker motivation.
• Discuss the relationship between worker
motivation and job performance, including
the influence of various individual and situational
characteristics.
Definitions
• Motivation is the force that energizes, directs,
and sustains behavior.
• Needs are physiological or psychological
deficiencies that an organism is compelled to
fulfill.
• Need hierarchy theory is a motivation theory
proposed by Maslow that arranges needs in
hierarchy from lower, more basic needs to
higher-order needs.
• ERG theory is Alderfer’s motivation model that
categorizes needs into existence, relatedness,
and growth needs.
• Achievement motivation theory is McClelland’s
model of motivation that emphasizes the
importance of three needs - achievement,
power, and affiliation - in determining worker
motivation.
• The Thematic Apperception Test (TAT) is a
projective test that uses ambiguous pictures to
assess psychological motivation.
• Reinforcement theory is the theory that
behavior is motivated by its consequences.
• Positive reinforcers are desirable events that
strengthen the tendency to respond,
while negative reinforcers are events that
strengthen a behavior through the avoidance of
an existing negative state.
• Punishment is an unpleasant consequence that
reduces the tendency to respond.
• Extinction refers to the elimination of a
conditioned response through the withdrawal of
reinforcement.
• Fixed interval schedules involve administration
of reinforcement following the passage of a
specified amount of time.
• Variable interval
schedules involve administration of
reinforcement following the passage of a
specified amount of time, with exact time of
reinforcement varying.
• Fixed ratio schedules involve administration of
reinforcement contingent upon the performance
of a fixed number of behaviors.
• Variable ratio schedules involve administration
of reinforcement depending on the performance
of a specified by varying number of behaviors.
• Organizational behavior modification is the
application of conditioning principles to obtain
certain work outcomes.
• Intrinsic motivation refers to the notion that
people are motivated by internal rewards.
• Goal-setting theory is the motivational theory
that emphasizes the setting of specific and
challenging work performance goals.
• Two-factor theory is Herzberg’s motivational
theory that proposes that two factors
- motivators and hygienes - are important in
determining worker satisfaction and motivation.
• Motivators are elements related to job content
that, when present, lead to job satisfaction.
• Hygienes are elements related to job context
that, when absent, lead to job dissatisfaction.
• The job characteristics model is a theory that
emphasizes the role that certain aspects of jobs
play in influencing work motivation.
• Growth need strength is the need and desire for
personal growth on the job (a component of the
job characteristics model).
• The Job Diagnostic Survey (JDS) is a
questionnaire that measures core job
characteristics based on the job characteristics
model.
• Job enrichment is a motivational program that
involves redesigning jobs to give workers a
greater role in the planning, execution, and
evaluation of their work.
• Equity theory is the theory that workers are
motivated to reduce perceived inequalities
between work inputs and outcomes.
• According to equity theory, inputs are elements
that a worker invests in a job, such as
experience and effort. Outcomes are those
things that a worker expects to receive from a
job, such as pay and recognition. Comparison
others are persons used as a basis for
comparison in making judgments of
equity/inequity.
• Underpayment inequity is a worker’s perception
that inputs are greater than outcomes.
• Overpayment inequity is a worker’s perception
that outcomes are greater than inputs.
• Expectancy theory is a cognitive theory of
motivation that states that workers weigh
expected costs and benefits of particular
courses of action before they are motivated to
behave.
• According to expectancy theory, valence refers
to the desirability of an outcome to an
individual.
• Instrumentality refers to the perceived
relationship between the performance of a
particular behavior and the likelihood of
receiving a particular outcome.
• Expectancy refers to the perceived relationship
between the individual’s effort and performance
of a behavior.
Introduction
• A critical aspect at the workplace which leads to
the performance of the department and even the
company
• Needs to be a regular routine
• Research shows that many companies have
disengaged employees with low motivation;
only 13% of employees are engaged at work
• Can lead to increased productivity and allow an
organization to achieve higher levels of output
• HIGHT MOTIVATION= HIGH PRODUCTIVITY
• LOW MOTIVATION = LOW PRODUCTIVITY
Is an employee predisposed to being motivated?
Self – esteem
- the extent to which a person views himself as
valuable and worthy
Consistency Theory
- a positive correlation between self-esteem and
performance
- low self-esteem tend to underestimate: their
actual ability and performance
3 Types of Self-esteem
• Chronic Self-esteem
• Situational Self-esteem (Self-efficacy)
• Socially Influenced Self-esteem
Self-esteem Workshop
- The Enchanted Self
- Outdoor Experiential Training
- Outward Bound/
- Ropes Course
Experience with Success
- Self-fulfilling Prophecy
- Galatea Effect - relationship between self-
expectations and performance
Supervisor Behavior
• Pygmalion Effect (positive)
• Golem Effect (negative)
- Sandler argued that employees then adjust their
behaviors to be consistent with our expectations
and in a way that is self-sustaining
- If employees do indeed respond to their
managers’ expectations, then it becomes
reasonable to predict that managers who
communicate positive and optimistic feelings to
their employees will lead employees to perform
at higher level
Intrinsic Motivation
- when an employee becomes aware of others’
expectations and matches his own with them, he
will perform in a manner that is consistent with
those expectations
- When they are extrinsically motivated, they don’t
particularly enjoy the tasks but are motivated to
perform well to receive some type of reward or
to avoid negative consequences
- Individual orientations toward intrinsic and
extrinsic motivation can be measured by:
Work Preference Inventory (WPI) (Amabile, Hill,
Hennessey, & Tighe, 1994)
▪ The WPI yields scores on:
▪ Two dimensions of intrinsic motivation
(enjoyment, challenge)
▪ Two dimensions of extrinsic motivation
(compensation, outward orientation).
Needs for Achievement and Power
- Employees differ in the extent to which they are
motivated by the need for achievement,
affiliation, and power
- Employees who have a strong need for
achievement are motivated by jobs that are
challenging and over which they have some
control
- Employees who have minimal achievement
needs are more satisfied when jobs involve little
challenge and have a high probability of success
- Employees who have a strong need for affiliation
are motivated by jobs in which they can work
with and help other people
- Employees who have a strong need for power
are motivated by a desire to influence others
rather than simply to be successful.
- “Employees who believe that management is
concerned about them as a whole person – not
just an employee – are more productive, more
satisfied, more fulfilled. Satisfied employees
mean satisfied customers, which leads to
profitability.” – Anne M. Mulcahy
Have the Employee’s Values and Expectations
Been Met?
• Our work motivation and job satisfaction are
determined by the discrepancy between what
we want, value, and expect and what the job
actually provides
• Employee A values money and Employee B
values flexibility
Job Expectations
• A discrepancy between what an employee
expected a job to be like and the reality of the
job can affect motivation and satisfaction
• If the organization does less than it promised,
employees will be less motivated to perform
well and will retaliate by doing less than they
promised
• a recruiter tells an applicant how much fun
employees have at a particular company and
about the “unlimited potential” for advancement.
• After three months on the job, however, the
employee has yet to experience the fun and
can’t find any signs of potential advancement
opportunities. Because these expectations have
not been met, the employee will probably feel
unmotivated.
• If the organization does less than it promised,
employees will be less motivated to perform
 well and will retaliate by doing less than they
promised (Morrison & Robinson, 1997).
Job Characteristics
• Job Characteristics Theory:
- Employees desire jobs that are meaningful,
provide them with the opportunity to be
personally responsible for the outcome of their
work (autonomy), and provide them with
feedback of the results of their efforts
• Jobs will have motivation potential if they allow
employees:
1. To use a variety of skills (skill variety)
2. To connect their efforts to an outcome (task
identification)
3. Which has meaning, is useful, or is appreciated
by coworkers as well as by others in society
(task significance)
• Jobs with a high motivating potential score
result in higher levels of employee satisfaction
and performance, and lower levels of
absenteeism (Fried & Ferris, 1987).
Needs, Values, and Wants
• employee’s needs, values, and wants > what a
job offers
= low levels of motivation and satisfaction
Theories of Motivation
Need Theories of Motivation
o Basic Needs Theories
o McClelland's Achievement
o Motivation Theory
Behavior-Based Theories of Motivation
o Reinforcement Theory
o Extrinsic versus Intrinsic Motivation
o Goal Setting Theory
Job Design Theories of Motivation
o Herzberg's Two-factor Theory
o Job Characteristics Model
Cognitive Theories of Motivation
o Equity Theory of Motivation
o Expectancy (VIE) Theory of Motivation
--------------------------------------------------------------
A. Maslow’s Needs Hierarchy
Abraha m M. Maslow developed a comprehensive
view of individual motivation.
- Arranges human need into pyramid-shaped
model with basic physiological needs at the
bottom and self-actualization needs at the top.
- Lower- order needs (Deficiency Needs) must
be satisfied to ensure a person's existence,
security and requirements for human contact.
- Higher-order needs (Growth Needs) are
concerned with personal development and
reaching one's potential.
Basic Biological Needs
1. Safety Needs – physical and psychological
safety
- job security, followed by benefits,
compensation, and feeling safe in the work
environment
2. Social Needs - working with others, developing
friendships, and feeling needed
3. Ego/esteem Needs
- needs for recognition and success, and an
organization can help to satisfy them through
praise, awards, promotions, salary increases,
publicity, and many other ways
4. Self-Actualization Needs - An employee striving
for self-actualization wants to reach her potential
in every task
Potential problems of the theory
• The first concern was that Maslow’s five levels
may be too many, and that there are actually
only two or three levels (Aldefer, 1972)
• Some people do not progress up the hierarchy
as Maslow suggests they do
• The theory predicts that once the needs at one - The factors associated with job context are
level are satisfied, the next needs level should called Hygiene Factors which include the
become most important following:

Key points in the Theory 1. Organizational policies

2. Quality of supervision
• Needs at a given level are gratified they lose 3. Working conditions
their potency (strength) 4. Base wage salary
• Many people think that, for the vast majority of 5. Relationship with subordinates
workers, the only sensible way to motivate them 6. Relationship with peers
is to satisfy higher level needs. Many exceptions 7. Status
still exist. 8. Security

B. ERG Theory by Aldefer According to the two-factor theory, improving any

of the hygiene factors will not make people satisfied
The ERG Theory is a need hierarchy theory of
with their work; it will only prevent them from being
motivation that was developed by Clayton Alderfer,
dissatisfied.
He believed that in motivating people we
are confronted by three sets of needs: EXISTENCE Hygiene factors are those job-related elements that
(E), RELATEDNESS (R), and GROWTH (G) result from but do not involve the job itself.
These sets of needs may be briefly described as o For example, pay and benefits are
follows: consequences of work but do not involve
1. Existence- this refers to needs satisfied by such the work itself.
factors as food, air, water, pay and working o Similarly, making new friends may result
conditions. from going to work, but it is also not directly
involved with the tasks and duties of the job
2. Relatedness- this refers to the needs satisfied by
meaningful social and interpersonal relationships; • The job content relates more to what people
and actually do in their work. Those that are related
to job content are called Motivator Factors and
3. Growth- this refers to the needs satisfied by an they consists of the following:
individual making creative or productive
contributions. 1. Achievement
2. Recognition
• Alderfer, like Maslow, also believed that
3. Work Itself
individual progress up the hierarchy of needs as
4. Responsibility
a result of the satisfaction of lower order needs.
5. Advancement
C. Herzberg's Two Factor Theory 6. Growth

Two-Factor Theory by Herzberg • According to the two-factor theory, when the

foregoing are not present, there is low job
Frederick Herzberg - developed his TWO FACTOR
satisfaction among workers and there is lack of
theory that identifies job context as a source of job
motivating to perform.
dissatisfaction and job content as the source of job
satisfaction. • Motivators are job elements that do concern
actual tasks and duties.
- The job context or work setting relates more to
o Examples of motivators would be the level
the environment in which people work.
of responsibility, the amount of job control,
 and the interest that the work holds for the
employee.
o Thus, an employee who is paid a lot of
money but has no control or responsibility
over her job will probably be neither
motivated nor unmotivated.
Key points in the theory:
• The two-factor theory has made lasting
contribution to work motivation
- it has helped managers realized that money is
not always the primary motivator
- it has spurred much of the interest in designing
jobs to make them more intrinsically satisfying
• A major problem with the two-factor theory is
that it does emphasize individual differences and
glosses over the importance of hygiene factors
in attracting and retaining workers
• Another problem with the two factors theory is
that some workers show no particular interest in
motivation such as opportunities for growth and
advancement.
D. Acquired Needs Theory
• David C. McClelland and his associates have
provided a useful explanation of several needs.
• They have proposed a theory of motivation
based upon the premise that people acquire or
learn certain needs from their culture. Among
the cultural influences are family, peer groups,
television shows and websites.
• Three key acquired needs or motives driving
workers are achievement, power, and
affiliation.
1. Need for Achievement- this refers to the desire
to do something better or more efficiently, to solve
problems, or to master complex tasks;
2. Need for affiliation- which refers to the desire to
establish and maintain friendly and warm relations
with others.
3. Need for power- which refers to the desire to
control others, to influence their behavior or to be
responsible for others.
a. People who have high achievement needs have
the drive to advance and to overcome challenging
situations such as those faced by entrepreneurs in
introducing innovative new business.
b. an affiliation motivated person prefers to work
with friends
c. the need for power drives successful managers.
E. Goal Setting Theory
• It may be defined as the theory that specific and
difficult goals with feedback lead to higher
performance.
• Goal setting theory is based on the premise that
behavior is regulated by values and goals. A
goal is the specific target that an individual is
trying to achieve
• It was EDWIN A. LOCKE and his associates who
developed a comprehensive framework linking
goals to performance.
• Their findings about the goals include the
following:
1. Specific goal lead to higher performance
than do generalized goals. "telling someone
to do your best" is a generalized goal.
2. Performance generally increases in direct
proportion to goal difficulty. The more
difficult one's goal, the more one
accomplishes.
3. For goals to improve performance, the
workers must accept them. If one rejects a
goal, one will incorporate it into planning.
4. Goals are more effective when they are used
to evaluate performance.
5. Goals should be linked to feedbacks and
rewards. Workers should receive feedback
on their progress toward goal and be
rewarded for reaching them.
6. Deadlines improve the effectiveness of
goals.
7. A learning goal orientation improves
performance more than a performance goal
orientation. A person with a learning goal
orientation wants to develop competence by
acquiring new skills and mastering new
situations.
 8. Group goals setting is as important as
individual goal setting.
F. Reinforcement Theory
• A well-established explanation of motivation
is reinforcement theory, the contention that
behavior id determined by its consequences.
The consequences are the rewards and
punishments people receive for behaving in
particular ways.
• At the foundation of reinforcement theory is
operant conditioning, learning takes place as a
consequence of behavior. More specifically,
people learn to repeat behaviors that bring them
pleasurable outcomes and to avoid behaviors
that lead to uncomfortable outcomes.
• According to the famous experimental
psychologists B.F. Skinner, to train or condition
people, and then later motivate them, the
manager does not have the study the inner
workings of the mind.
• Four Basic strategies exists which can modify
individual (or group) behavior:
o Positive Reinforcement is the application of
pleasurable or valued consequences when a
person exhibits the desired response.
o Avoidance motivation is rewarding people
by taking away uncomfortable consequence.
The process is also referred to as negative
reinforcement.
o Extinction is weakening or decreasing the
frequency of undesirable behavior by
removing the reward for such behavior. It is
the absence of reinforcement.
o Punishment is the presentation of an
undesirable consequences for a specific
behavior.
G. EXPECTANCY THEORY OF MOTIVATION
• According to expectancy theory, motivation
results from deliberate choices to engage in
activities in order to achieve worthwhile
outcomes. People will be well motivated if they
believe that as a strong effort will lead to good
performance and good performance will lead to
preferred outcomes.
• First proposed by Vroom and then modified by
others, including Porter and Lawler.
The key components of expectancy theory are
Expectancy, Instrumentality, and Valence
o An expectancy is a person's subjective
estimate of the probability that a given level
of performance will occur. The effort to
performance expectancy refers to the
individual subjective hunch about the
chances that increased effort will lead to the
desired performance.
o An Instrumentality is the individual's
estimate of the probability that performance
will lead to certain outcomes. It refers to the
person's subjective evaluation of the
chances that good performance will lead to
certain outcomes.
o Valence refers to the value a person places
on a particular outcome.
H. EQUITY THEORY
• It may be defined as theory that individuals
compare job inputs and outcomes with those of
others and then respond to eliminate
inequalities.
• Equity theory assumes that employees are
motivated by a desire to be equitably treated at
work.
• Equity exist when employees perceive that the
ratios of their inputs (efforts) to their outputs (or
rewards) are equivalent to the ratios of other
employees. In equity exist when these ratios are
not equivalent.
• Inequality leads to the experience of tension,
and tension motivates a person to act in a
manner to resolve the inequality. The person will
be confronted with any of the two types of
inequality.
o over rewarded; or
o under rewarded
• Employees who feel over rewarded will think
there is an imbalance through any of the
following:
o They might work harder
 o They might discount the value of the
rewards;
o they could try to convince other employees
to ask for more rewards; and
o they might choose someone else for
comparison purposes.
• When employees feel under rewarded, they will
seek to reduce their feelings of inequality
through any of the following:
o They might lower the quality of their
productivity
o They could inflate the perceived value of
rewards received
o they could find someone else to compare
themselves
o They could bargain for more rewards
o They might quit
I. Intrinsic and Extrinsic Motivation
• Motivating people through interesting work is
based on the principle of intrinsic motivation,
which refers to a person's beliefs about the
extent to which an activity can satisfy his or her
needs for competence and self-determination.
people who valued work tend to be intrinsically
motivated, while people who place a low value
on worked have low intrinsic motivation.
• The rationale behind intrinsic motivation theory
o Intrinsic motivation and self-determination
theory are closely related.
o According to self-determination theory,
workers are active agents of, rather than
passive reactors to, environments forces.
o Two factors influence the perception of
intrinsic motivation.
o Certain characteristics of a task, such as
challenges and autonomy, promote intrinsic
motivation because they allow a person to
satisfy the needs for competence and self-
determination.
Summary:
✓ Motivation is the force that energizes, directs,
and sustains behavior. The many theories of
work motivation can be classified as need
theories, behavior-based theories, job design
theories, and cognitive theories.
✓ Maslow's and Alderfer's basic need theories
propose that needs are arranged in a hierarchy
from the lowest, most basic needs, to
higher-order needs such as the need for esteem
or self-actualization.
✓ McClelland's achievement motivation
theory proposes that the three needs important
in work motivation are needs for achievement,
power, and affiliation, which can be measured
with a projective test known as the Thematic
Apperception Test.
✓ Unlike Maslow's and Alderfer's need theories,
McClelland's theory has been used extensively
in work settings to encourage worker
motivation.
✓ Behavior-based theories include both
reinforcement and goal-setting approaches to
motivation.
✓ Reinforcement theory stresses the role
that reinforcers and punishments play in
motivation. Reinforcement theory is evident in
the various schedules used to reward workers.
The theory is applied to increase motivation
through organizational behavior
modification programs.
✓ Goal-setting theory emphasizes setting
challenging goals for workers, and getting
workers committed to those goals as the keys to
motivation.
✓ Job design theories of motivation stress the
structure and design of jobs as key factors in
motivating workers.
✓ Herzberg's two-factor theory focuses on job
satisfaction and dissatisfaction as two
independent dimensions important in
determining motivation.
✓ Motivators are factors related to job content
that, when present, lead to job satisfaction.
✓ Hygienes are elements related to job context
that, when absent, cause job dissatisfaction.
According to Herzberg, the presence of
hygienes will prevent job dissatisfaction, but
motivators are needed for employee job
satisfaction and hence motivation.
✓ Hackman and Oldham have proposed the job
characteristics model, another job design theory
of motivation, which states that five core job
characteristics influence three critical
psychological states that in turn lead to
 motivation. This model can be affected by
certain moderators, including growth need
strength, the notion that certain workers feel a
need to grow on their jobs. Workers must be
high in growth need strength if programs such
as job enrichment are indeed going to produce
motivation.
✓ Job enrichment, which involves redesigning
jobs in order to give workers greater
responsibility in the planning, execution, and
evaluation of their work, is the application that
grew out of the job design models of
motivation.
✓ Cognitive theories of motivation emphasize the
role that cognition plays in determining worker
motivation.
✓ Equity theory states that workers are motivated
to keep their work inputs in proportion to their
outcomes. According to equity theory, workers
are motivated to reduce perceived inequities.
This perception of equity/inequity is determined
by comparing the worker’s input–outcome ratio
to similar comparison others.
✓ Expectancy theory (with its three core
components of valence, instrumentality, and
expectancy) is a complex model, which states
that motivation is dependent on expectations
concerning effort–performance–outcome
relationships.
✓ Motivation is indeed a complex construct. Yet,
despite the importance given to worker
motivation in determining work performance,
numerous variables related to
systems/technology, individual differences,
group dynamics, and organizational factors may
all affect work performance directly, without
regard to worker motivation. Thus, although
motivation is important, it is only one
determinant of work behavior.
References:
• Aamodt, M. G. (2010),
Industrial/Organizational Psychology: An
Applied Approach, 6th Ed. Cengage Learning
• Riggio, R.E (2013), Introduction to
Industrial/Organizational Psychology, 6th Ed.
Pearson
Motivational Methods and Programs
- It is normal for employers to want their
employees to do their best in the workplace.
- A major strategy for enhancing motivation is to
make the job so challenging and the worker so
responsible that he or she is motivated just by
performing the job.
- To keep employee sufficiently motivated, some
means of motivation should be designed and
implemented.
Four motivational methods and programs are
considered they are as follows:
1. Motivation through job design
2. Organization behavior modification
3. Motivation through recognition and pride
4. Motivation through financial incentives
1. Motivation through Job Design
- One way of motivating employees is to make
their job challenging so that worker who is
responsible for it enjoys it. This management
activity is called Job Design.
- Research and practice with motivation through
job design has its roots in the two-factor theory.
When it is undertaken some useful benefits will
accrue to the organization.
- Job design may be defined as the way the
elements in a job are organized.
• Three concepts are important in designing jobs.
They consist of the following:
o Job Enrichment
o Job Characteristics model
o Job Crafting
Job Enrichment
- This term refers to the practice of building
motivating factors like responsibility,
achievement and recognition into job content.
Job enrichment provides the worker with a more
exciting job and it increases his job satisfaction.
An enriched job has any or all of the following
characteristics:
1. Direct feedback- Which means employees
receive immediate evaluation of their work.
2. Client Relationship- which means an employee is
given a chance to serve an internal and external
client.
3. New Learning- Employee acquires new
knowledge while doing his work.
4. Control over method - employees has some
control over which method to choose to accomplish
a task.
5. Control over scheduling- employee has the
ability to schedule his work.
6. Unique Experience-the job has unique qualities
or features, like the opportunity to see the world.
7. Direct Communication authority- Job provides
the employee the opportunity to see the world.
8. Control over resources- employee has control
over resources such as money, material, or people.
9. Personal Accountability - employee is
responsible for his or her result. He accepts credits
for doing good job and blame for a poor job.
• Empowering and Involvement as a type of Job
Enrichment
- A managerial practice that leads to job
enrichment is to empower employees.
- Empowerment is the process of sharing power
with group members, thereby enhancing their
feelings of self-efficacy. Empowering workers
usually enhances their motivation because
having more power is intrinsically motivating
- Involving employees in decisions that affect
them in a form of empowerment and is also
motivational.
- Involvement leads to greater commitment and
therefore facilitates making a possible change
such as a new work method.
Job Characteristics Model - This term refers to the
method of a job design that focuses on the task and
interpersonal demand s of a job. This method
emphasizes the interaction between the individual
and the specific attributes of the job.
• The concept of job enrichment has been
expanded to the job characteristics model, a
method of job design that focuses on the task
and interpersonal demand of a job. The model is
based on both needs theory and expectancy
theory, with its emphasis on workers looking to
satisfy needs through the job.
• The job characteristics theory maintains that
there are five core job characteristics of special
importance to job design. When their core job
characteristics are high, the job is said to be
enriched.
The five core job characteristics are defined as
follows:
1. Skill variety- the degree to which there are many
skills to perform.
2. Task Identity- the degree to which one worker is
able to do a complete job, from beginning to end,
with the tangible and possible outcome.
3. Task Significance- the degree to which the job
has a substantial impact on the lives or work of
other people.
4. Autonomy- the degree which the job gives the
employee substantial freedom, independence and
discretion in scheduling the work and determining
the procedures used in carrying it out.
5. Feedback- The degree to which a job provides
direct information about performance.
Job Crafting - The traditional view of a job is that a
competent worker carefully follows a job
description, and good performance means that the
person accomplishes what is specified in the job
description.
- A contemporary view is that job description is
only a guideline: The competent worker is not
confined by the constraints of a job description.
He or she takes many constructive activities not
mentioned in the job description.
- Job crafting refers to the physical and mental
changes workers make it the task or relationship
aspects of their job.
- The most frequent purpose of crafting is to
make the job more meaningful or enriched.
• Three common types of job crafting are to make
the job more meaningful or enriched.
• Three common types of job crafting involve
changing
o Changing the number and type of job tasks
o Changing the interaction with others on the
job
o Changing ones view of the job
2. Organizational behavior Modification
- One of the more elaborate systems for motivating
employees is based on reinforcement theory
- Organizational behavior modification (OB MOD) is
the application of reinforcement theory for
motivating people in work settings.

- Reinforcement theory may be briefly defined as

Effects on the contention that behavior is determined by its
Form Example
meaning work consequences.
Design
engineers Work is - Simply stated a person tends to repeat a behavior
engage in completed in a that is accompanied by a favorable consequence.
changing the timely fashion; Simply stated a person tends to repeat a behavior
quality or engineers that is accompanied by a favorable consequences
Changing and tends not to repeat behavior that is
amount of change the
number, scope accompanied by a favorable consequences and
interactions meaning of
and type tends not to repeat behavior that is accompanied by
with people their jobs to be
thereby guardians or unfavorable consequences.
moving a movers of the
project to projects. • Rules for the application of OB MOD
completion o Rule 1: Choose an appropriate reward or
punishment
Cleaners
Hospital o Rule 2: Reinforce the behaviors you really
change the
cleaners want to encourage
meaning of
Changing actively caring o Rule 3: Supply ample feedback
their jobs to be
quality and or for the patients o Rule 4: Rewards should be commensurate
helpers of the
amount of and families with the good deed
sick; see the
interaction with integrating o Rule 5: Schedule rewards intermittently
work of the
others themselves o Rule 6: Rewards and Punishments should
flow unit as an
encountered in into the follow the observed behavior closely in time
integrated
the job workflow of o Rule 7: Make rewards visible to the recipient
whole of which
their floor and to others.
they are a vital
units. o Rule 8: Change the rewards periodically
part.
• The four rewards groups in the study were
Nurses taking o Routine pays for performance
responsibility o Monetary incentives based on the behavior
Nurses change
for all mod
the way they
information o Social recognition, such as public
see the work to
and compliments
Changing the be more about
insignificant o Performance feedback
view of the job patient
tasks that may
advocacy is
help them to
well as quality
care more
technical care.
appropriately
for a patient
 2. Motivation through Recognition and Pride
- Motivating workers by giving them praise and
recognition can be considered a direct
application of positive reinforcement.
• Recognition as motivation
o Recognition is a strong motivator because it
is normal human need to crave recognition
o To appeal to the recognition, need of others,
identify a meritorious behavior and then
recognize that behavior with an oral, written,
or material reward.
o The following are several more points to
consider to better understand and
implement reward and recognition
programs:
▪ Feedback is an essential part of
recognition. (Specific feedback about
what the workers did right makes
recognition meaningful)
▪ Praise is one of the most powerful
forms of recognition. (Praise works well
because it enhances our self-esteem if
the praise is genuine)
▪ Reward and recognition programs
should be linked to organizational goals.
(Linked to business strategy)
▪ Employee input into what type or
rewards and recognition are valued is
useful. (Cross cultural factors can have
a strong impact on what form of reward
or recognition is motivation)
▪ It is important to evaluate the
effectiveness of the reward and
recognition program. (it is useful to
assess how well the reward and
recognition program is working)
o Pride as a motivator
▪ Wanting to feel proud motivates many
workers even if pride is not exactly
psychological need
▪ Being proud of what you accomplish is
more of an intrinsic motivator than an
extrinsic motivator such as receiving
gift.
4. Motivation through financial incentives
• Financial incentives are powerful tools of
motivation. They are monetary rewards paid to
employees because of the output the produce,
skills, knowledge and competencies or
combination of these factors.
• Financial incentives take the form of any or a
combination of the following:
o Time rates
o Payments by results
o Performance and profit related pay
o Skill/competency-based pay
o Cafeteria or flexible benefits system
Time rates
• this type of monetary reward uses the number
of hours worked as a means of determining
rewards. It may be classified as hourly rate or
weekly wage or monthly salary.
• The advantages of time rates are as follows:
o it is open to inspection and equitable
because employees doing the same job will
be on the same grade level
o It encourages the retention of human
resources by stability and this is because of
the gradual increases in rewards within the
given grades
o it is relatively easy to administer and allows
labor cost to be predicted
o it does not emphasize quantity of output to
the detriment of quality
Payment by results
- This scheme links pays to the quantity of the
individual output. An example is a commission
paid to a salesman for selling the company's
product
- There is fairness because the level of reward is
related to the level of output; and
- There are likely to be cost advantages since
wages are directly linked to production and less
supervision is required.
Performance Related Pay
- This scheme considers results or output plus
actual behavior in the job.
- Most often, rewards consist of a lump sum, or a
bonus as a percentage of basic salary, with
quality of performance determining the
magnitude of the percentage increase, or
alternatively accelerated movement up a pay
scale.
- The bonus is a reward given to employees from
recent performance rathe than historical
performance.
Profit related pay
- This is an organization wide scheme where pay
is linked to company profits.
- Profit related pay takes the form of direct cash
outlay, or allocation of stock options
- Stock option is a financial incentive that gives
employees the right to purchase a certain
number of companies shares at a specified
price, generally the market price of the stock on
the day the option is granted.
Skill Based Pay
- Also known as competency based or knowledge
based pay, this is a pay plan that sets pay levels
on the basis of how many skills employees have
or how many jobs they can do
Cafeteria or Flexible benefit System
- This is a benefit plan that allows each employee
to put together a benefit package individually
tailored to his or her own needs and situation
- Examples of benefits that may be included in the
plan are health and life insurance, company car,
additional holiday entitlement, membership to
social clubs, modification of working hours,
special pension arrangement, mortgage loan
subsidies, and others.
Topic Learning Outcome 9: Positive
Employee Attitudes and Behavior
Definitions
1. Employee engagement is a psychological state
by vigor, dedication, and absorption in one’s
work and work organization
2. Job satisfaction consists of the positive and
negative feelings and attitudes one has about
one's job.
2. The Minnesota Satisfaction Questionnaire
(MSQ) is a self-report measure of job
satisfaction that breaks satisfaction down into
20 job facets.
3. The Job Descriptive Index (JDI) is a self-report
job satisfaction rating scale measuring five job
facets.
4. The Porter-Lawler model is a theory where the
relationship between job satisfaction and
performance is mediated by work-related
rewards.
5. Organizational commitment is a worker’s
feelings and attitudes about the entire work
organization.
6. Job rotation is the systematic movement of
workers from one type of task to another to
alleviate boredom and monotony (as well as
training workers on different tasks).
7. Job enlargement is the expansion of a job to
include additional, more varied work tasks.
8. Skill-based pay is a system of compensation in
which workers are paid based on their
knowledge and skills rather than on their
positions in the organization.
9. Merit pay is a compensation system in which
employees receive a base rate and additional
pay based on performance.
10. Gainsharing is a compensation system based
on effective group performance.
11. Profit sharing is a plan where all employees
receive a small share of an organization’s
profits.
12. Compressed work weeks are schedules that
decrease the number of days in the work week
while increasing the number of hours worked
per day.
13. Flextime is a schedule that commits and
employee to working a specified number of
hours per week, but offers flexibility in regard to
the beginning and ending times for each day.
14. Employee ownership refers to ownership of all
or part of an organization by its workers,
typically through stock purchases.
15. Organizational citizenship behavior
(OCB) consists of efforts by organizational
members that advance or promote the work
organization and its goals.
SUMMARY:
✓ Employee engagement, a psychological state by
vigor, dedication, and absorption in one’s work
and work organization, is linked with many
positive outcomes for workers and
organizations.
✓ Engaged employees have positive attitudes
toward work and the organization; engage in
positive work behaviors, and are motivated and
productive.
✓ Employee engagement is positively related to
job satisfaction and organizational commitment,
and is negatively related to intentions to leave a
work organization.
✓ Job satisfaction involves the positive feelings
and attitudes one has about a job, can be
conceptualized in overall, or global, terms, or in
terms of specific components or facets, and can
be measured through interviews or with
self-report instruments.
✓ The most widely used self-report measures are
the Minnesota Satisfaction Questionnaire
(MSQ) and the Job Descriptive Index (JDI).
✓ Research indicates that there is a slight positive
relationship between job satisfaction and job
performance, although the link may be
moderated by a third variable, such as the
receipt of work rewards.
✓ Job satisfaction is positively correlated
with organizational commitment, or employees'
feelings and attitudes about the entire work
organization.
✓ Both job satisfaction and organizational
commitment tend to be negatively correlated
with voluntary employee absenteeism, however,
the relationships are complex and difficult to
decipher, partly due to the difficulty involved in
distinguishing voluntary absenteeism from
involuntary absenteeism.
✓ Job satisfaction and organizational
commitment are also related to voluntary
employee turnover.
✓ Programs designed to increase job satisfaction
include changes in job structure through
techniques such as job rotation, job
enlargement, and job enrichment.
✓ Other satisfaction-enhancing techniques suggest
changing the pay structure by using methods
such as skill-based pay, pay-for-performance
programs like merit pay, gainsharing, or profit
sharing, which are sometimes contingent on
effective group performance.
✓ Flexible work schedules, such as compressed
work weeks, and flextime, improve satisfaction
by giving workers greater control over their jobs.
✓ Still other methods of improving satisfaction
involve increasing job-related benefits.
✓ Positive employee behaviors beyond the normal
job routine are termed organizational
citizenship behaviors and these are positively
related to desirable work outcomes.
✓ Most recently, research has focused on the role
of positive affect in employee behavior, with job
satisfaction mediating the relationship between
affect and work outcomes. This emphasis on
positive employee attitudes, emotions, and
behaviors reflects I/O psychology’s concern with
both organizational functioning and employee
well-being.
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
GROUP PROCESSES AND TEAMS IN
WORK ORGANIZATIONS
DEFINITION OF TERMS
• A Group consists of two or more individuals engaged in
social interaction to achieve some goal.
• A Team consists of interdependent workers with
complimentary skills working toward a shared goal.
• Roles are patterns of behavior that are adopted based on
expectations about the functions of a position.
• Role Expectations are beliefs concerning the
responsibilities and requirements of a particular roles.
• Role Differentiation is the process by which group
members learn to perform various roles.
• Role Ambiguity is a sense of uncertainty over the
requirements of a particular role.
• Role Conflict is conflict that results when the
expectations associated with one role interfere with the
expectations another role.
• Norms are rules that groups adopt governing appropriate
and inappropriate behavior for members.
• Organizational Socialization is the process by which new
employees learn group roles and norms, and develop
specific work skills and abilities.
• Conformity is the process of following group norms.
• Cohesiveness is the degree of attraction among group
members.
• The we-they feeling is intragroup cohesiveness created
by the existence of a common threat, which is typically
another group.
• Group Efficacy is a group’s shared belief that they can
attain organizational outcomes.
• The Reciprocity Rule is the tendency for persons to pay
back those to whom they are indebted for assistance.
• Task Interdependence refers to the degree to which an
individual’s task performance depends on the efforts or
skills of others.
• Organizational Citizenship Behavior refers to efforts by
organizational members that advance or promote the
work organization and its goals.
• Social Loafing refers to the phenomenon whereby
individuals working in groups exert less effort than when
working alone.
• Competition is the process whereby group members are
pitted against one another to achieve individual goals.
• Conflict is behavior by a person or group that is intended
to inhibit the goal attainment of another person or group.
• Intraindividual Conflict is conflict that occurs when an
individual is faced with two sets of incompatible goals.
Interindividual Conflict is conflict that occurs when two
people are striving to attain their own goals, thus blocking
the other’s achievement. Intragroup Conflict is conflict
that arises when a person or faction within a group
attempts to achieve a goal that interferes with the group’s
goal attainment. Intergroup Conflict is conflict that
occurs between two groups trying to attain their
respective goals. Interorganizational Conflict is conflict
between organizations with incompatible goals.
• Accommodation is a conflict resolution strategy of
making a sacrifice to resolve a conflict. Compromise is
a conflict resolution strategy in which both parties give
up some part of their goals. Collaboration is a conflict
resolution strategy in which the parties cooperate to
reach a solution that satisfies both. Avoidance refers to
withdrawing from or avoiding a conflict situation.
• A Superordinate Goal is a goal that two conflicting parties
are willing to work together to attain.
• Autocratic Decision Making is a process by which group
decisions are made by the leader alone, based on
information the leader possesses.
• Democratic Decision Making is a strategy by which
decisions are made by the group members based on
majority-rule voting.
• Consensus refers to decision making based on 100
percent member agreement.
• Brainstorming is a group process generating creative
ideas or solutions through a noncritical and
nonjudgmental process.
• Groupthink refers to a syndrome characterized by a
concurrence-seeking tendency that overrides the ability
of a cohesive group to make critical decisions.
• Group Polarization is the tendency for groups to make
decisions that are more extreme than those made by
individuals.
• Self-Managing Work Teams are teams that have
complete responsibility for whole tasks.
SUMMARY
• A group is two or more individuals, engaged in social
interaction to achieve some goal. Teams consist of
interdependent workers with complimentary skills
working toward a shared goal. Within work groups,
members play various roles, which are patterns of
behavior adopted based on expectations held about the
function of a position. Work groups also develop norms,
or rules to help govern member behavior. The process of
organizational socialization refers to the integration of
individuals into work groups and organizations through
learning work procedures, work roles, and organizational
and group norms.
• Certain basic processes occur in all work groups. One is
conformity, the process of adhering to and following
group norms. Another basic process, cohesiveness, is
the degree of attraction among group members. A
number of factors, such as group size, member status,
member stability, and member similarity can influence
group cohesiveness.
• Two common yet opposing forces that are evident in all
groups are cooperation and competition. Cooperation is
critical to coordinating the activities of work group
members. However, social loafing can occur when
UNIT 6 | 1
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
workers in groups put in less effort than they would when
working alone. Competition can lead to conflict, which is
behavior by one party that is designed to inhibit the goal
attainment of another party. Conflict can occur at a
number of levels within work organizations, taking the
form of intraindividual, interindividual, intragroup,
intergroup, or interorganizational conflict. It can arise
from various sources, most notably from a scarcity of
desired resources and from individual and group
interdependence. The effect of conflict can be both
positive and negative; it is positive when it motivates
workers or stimulates them to be creative or innovative,
and negative when it disrupts group work activities and
social relationships. Managing conflict involves regulating
the level of conflict, resolving it when it is negative and
stimulating it when it is positive or productive. A number
of conflict resolution and conflict stimulation strategies
are used in organizations.
• An important function in work groups is group decision
making, which has several advantages and disadvantages
over individual decision making. While group decision
making is slow and conflict-ridden, it can lead to
high‑quality decisions and greater member satisfaction
with and commitment to the decision. Brainstorming is a
group process generating creative ideas or solutions
through a noncritical and nonjudgmental process. A type
of breakdown in the effectiveness of decision-making
groups is termed groupthink, which is a concurrence-
-seeking tendency that overrides the ability of a cohesive
group to make critical decisions. Group polarization is
the tendency for groups to make more extreme
decisions, either more risky or more cautious, than
in-dividuals.
• For teams to be effective, careful attention must be given
to the appropriateness of the task, the characteristics of
the team members, and organizational support for the
team. The use of self-managed work teams where
members work on a complete task, product, or service,
are on the rise.
GROUP DYNAMICS
• Group Dynamics – can be defined as field of inquiry
dedicated to the advancing knowledge about the nature
of groups, the laws of their development, and their
interrelations with individuals, other and larger
institutions.
o Based on their feelings and emotions, members of a
group form a common perception. The interactive
psychological relationship in which members of a
group form this common perception is called group
dynamics.
• Group Dynamics is a system of behaviors and
psychological processes occurring within a social group
(intragroup dynamics), or between social groups
(intergroup dynamics)
• Kurt Lewin, a social psychologist, coined the term to
describe the way groups and individuals act and react to
changing circumstances.
GROUP DYNAMICS CONTAINS TWO WORDS:
• Group – a social unit of two or more individuals who have
in common a set of beliefs and values, follow the same
norm and work for an established common aim.
• Dynamics – the flow of coherent activities which as
envisaged, may lead the group towards the establishment
of set goals.
• The history of group dynamics has a consistent
underlying premise "The whole is greater than the sum
of its parts."
INTRAGROUP DYNAMICS
• Referred to as in group, within group, or commonly just
group dynamics are the underlying processes that give
rise to a set of norms, roles, relations, and common goals
that characterize a particular social group. Ex. religious or
political groups.
• Group Formation starts with psychological bond between
individuals (interpersonal attraction)
• Social Identity approach individuals perceive that they
share some social category. Ex. smokers, nurses,
students)
• Emergent Groups arise form a relatively spontaneous
process of group formation. Ex. in response to a natural
disaster.
• Optimal Distinctiveness Theory – suggests that
individuals have a desire to be similar to other, but also a
desire to differentiate themselves, ultimately seeking
some balance of these two desires to obtain optimal
distinctiveness.
• Black Sheep Effect – based on how individuals in the
group see their members. (Upgrade likeable in-group
members and deviate from unlikeable group members).
• Group Influence on Individual Behavior – individuals
work harder, and faster when the others are present.
• Group Structure – is the internal framework that defines
member's relations to one another overtime.
GORDON (2001): believes that for a group of people to
be called a group, the following criteria must be met.
1. The members of a group must see themselves as a unit.
2. The group must provide reward to each member.
3. Anything that happens to one member of the group
affects every other member.
4. The members of the group must share a common goal.
ROLES WITHIN GROUP
1. Knowledge Contributor
o Is the person who provides useful and valid
information.
UNIT 6 | 2
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT

o He or she intents on helping with task
accomplishment and values sharing technical
expertise with team members.
2. Process Observer
o The person occupying this role forces members to
look at how the group functions.
o Might also point to excellent team progress.
3. People Supporter
o Is the person who provides an emotional support to
teammates and resolve conflicts.
o He or she serves as a model of active listening while
others make presentations.
4. Challenger
o Is the person who confronts and challenges bad
ideas. This will prevent complacency and non-critical
thinking.
o A challenger will criticize any decision or preliminary
thinking that is deficient in any ways.
o Antagonistic, attach oriented people who attempts
the challenger role lose their credibility quickly
because they appear more interested in attacking
than solving problems.
5. Listener
o The person who listens to whatever ideas and
proposals presented by any member of a group.
6. Mediator
o It is important to have someone assume the role of
mediator to avoid disputes between the group
members.
7. Gatekeeper
o Is the person who provides the opportunity for every
member to express his or her opinion.
8. Take-charge Leader
o A team member should assume the role of the take-
charge leader, so that the group can then move
forward by defining its mission and determining its
objectives.
REASONS FOR JOINING GROUPS
1. Assignment
o In the workplace, the most common reason for
joining groups is that employees are assigned to
them.
2. Physical Proximity
o People tend to form groups with people who either
live or work nearby.
3. Affiliation
o People's need for affiliation is very strong, thus, one
reason people join groups is to be near and talk to
other people.
4. Identification
o Desire for identification with some group or cause is
another reason we join a group.
5. Emotional Support
o We join groups to obtain emotional support (e.g.,
Alcoholic Anonymous).
6. Assistance or Help
o Example: students having problems with a particular
subject might form a study group.
FACTORS AFFECTING GROUP PERFORMANCE
• Group Homogeneity
o The extent to which its members are similar. A
homogeneous group contains members who are
similar in some or most ways, whereas a
heterogeneous group contains members who are
mere different than alike.
• Group Cohesiveness
o The extent to which group member like and trust one
another, are committed to accomplishing a team goal
and share a feeling of group pride. When employees
become too cohesive, they often lose sight of
organizational goals.
• Stability of Membership
o The greater the stability of the group, the greater the
cohesiveness. Thus, groups in which members
remains for long periods of time are more cohesive
and perform better than groups that have high
turnover (Bell, 2005), and groups whose members
have previously worked together perform better the
groups whose members are not familiar with one
another.
• Isolation
o Groups that are isolated or located away from other
groups tend to be highly cohesive.
• Outside Pressure
o Groups that are pressured by outside forces tend to
become highly cohesive. To some degree, this
response to outside pressure can be explained by
the phenomenon of psychological reactance (Brehm,
1966). When we believe that someone is trying to
intentionally influence us to take some action, we
often react by doing the opposite.
• Group Size
o Groups are most cohesive and perform best when
group size is small. Studies have shown that large
groups have lower productivity (Mullen, Johnson &
Drake, 1987).
o Thus, a large organization probably works best when
it is divided into smaller groups and committees and
when work groups contain approximately five
people.
• Group Status
o The higher the group's status, the greater its
cohesiveness. A group can be made more cohesive
by increasing group status. The group does not
actually have to have high status, but it is important
that its members believe they have high status.
• Group Ability and Confidence
o Groups consisting of high-ability members
outperform those with low ability members.
• Personality of the Group Members
o Meta-analysis results indicate that in general, groups
whose members have task-related experience and
UNIT 6 | 3
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
score high in the personality dimensions of
openness to experience, and emotional stability will
perform better than groups whose members do not
have these characteristics.
• Communication Structure
o For a group to perform successfully, good
communication among members is essential.
• Group Roles
o The extent to which its members assume different
roles. For a group to be successful, its members'
roles must fail into one of two categories:
▪ Task-oriented roles involves behavior such as
offering new ideas, coordinating activities, and
finding new information. (People high in
conscientiousness).
▪ Social oriented roles involve encouraging
cohesiveness and participation. (People high in
agreeableness).
PRESENCE OF OTHERS: SOCIAL FACILITATION AND
INHIBITION
• Norman Triplett (1898) noticed that cyclists rode faster
when competing against other cyclist that when
competing against clock.
o Social Facilitation involves the positive effects of the
presence of others on individual's behavior.
o Social Inhibition involves the negative effects of
other's presence.
o Audience Effects takes place when a group of people
passively watch an individual. Groups are most likely
to be affected by large audiences of experts who are
physically close to them. The presence of an
audience increases performance of one another. (2
runners competing against each other without a
crowded present).
EXPLANATION BEHIND SOCIAL FACILITATION
EFFECTS:
1. The mere presence of others naturally produces arousal.
This arousal, or increase in energy, helps an individual
perform well-learned tasks but hinders him in performing
poorly learned and unpracticed tasks.
2. A co-acting audience provides a means of comparison. If
an individual is working on a task with another individual,
He can directly compare his performance with the other
person's.
3. Evaluation Apprehension hypothesized that judgement
by others causes the different effects of social facilitation.
That is individuals are aware that the presence of others
can be rewarding (e.g., when a crowd cheers) or
punishing (when a crowd boos).
SOCIAL LOAFING THEORY
• Considers the effect on individual performance when
people work together on a task. Although it is clear that
social loafing occurs, especially in poor performers, it is
not clear why it occurs. Consider the following
theories/explanations:
1. Group members realize that their individual efforts
will not be noticed, there is little chance of individual
reward.
2. Free-Rider Theory postulates that when things are
going well, a group member realizes that their
individual efforts will not be noticed and thus does
not work as hard as he would if he were alone.
3. Sucker Effect hypothesizes that social loafing occurs
when a group member notices that other group
members are not working hard and thus are "playing
him for a sucker". To avoid this situation, the
individual lowers his work performance to match
those of the other members.
CHARACTERISTICS OF EFFECTIVE WORK GROUP
• Groups, like individuals, have characteristics that
contribute to their uniqueness and effectiveness.
1. Job Design – Task significance and task identity
should be strong. Group members therefore
perceive their work as having high intrinsic
motivation.
2. Interdependence – Clearly defined goals are a major
requirement for group effectiveness.
3. Team Efficacy – Refers to a team's beliefs that it can
successfully perform a specific task.
o When group cohesiveness was more important,
group self-confidence made a bigger
contribution.
4. Right Mix and Size – Groups should be large enough
to accomplish the work, but when groups become
too large, confusion and poor coordination may
result.
5. Emotional Intelligence – Building relationship both
inside and outside the team.
6. Support for the Work Group – Key support factors
include giving the group the information it needs,
coaching group members, providing the right
technology and receiving recognition and other
rewards.
7. Effective Processes Within the Group –
Effectiveness is also enhanced when workers
provide social support to one another through such
means as helping one another have positive
interactions.
8. Group Cohesiveness – Takes place when members
work closely with each other, in a unified,
cooperative manner.
9. Familiarity with Jobs, co-workers, and the
Environment – Refers to specific knowledge group
members have of their jobs, coworkers, and the
environment.
POTENTIAL PROBLEMS WITHIN GROUP
• Teams encounter problems which can affect their
effectiveness:
UNIT 6 | 4
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
o Changing membership
o Social loafing
o Group Polarization
o Group Think
GROUP THINK
• The term group think was coined by Janis (1972) after
studying the disastrous Bay of Pigs invasion in 1961. With
group think, members become so cohesive and like-
minded that they make poor decisions despite contrary
information that might reasonably lead them to other
options. Group think most often occurs when the group:
o is cohesive.
o is insulated from qualified outsiders.
o it has an illusion of vulnerability, infallibility, or both.
o believes that its morally superior to its adversaries.
o is under great pressure to conform.
o has a leader who promotes a favorable solution.
o has gatekeepers who keep information from other
group members.
GROUP THINK CAN BE REDUCED TO SEVERAL WAYS:
1. The group leader should not state his own position or
beliefs until late in the decision-making process.
2. The leader should promote open discussion and
encourage group members to speak.
3. A group or committee can be separated into subgroups
to increase the chance of disagreement.
4. Finally, one group member can be assigned the job of
devil's advocate-one who questions and disagrees with
group.
TEAMS AND WORK ORGANIZATION
TEAMS
• Work teams is a "collection of two or more individuals
who interact intensively to provide an organizational
product, plan, decision, or service."
• Teams work best in situations in which:
a) Job requires high levels of employee interaction.
b) Team approach will simplify the job.
c) A team can do something an individual cannot.
d) There is a time to create a team and properly train a
team member.
FACTORS TO BE CONSIDERED IN A TEAM
• Identification is the extent to which group members
identify with the team rather than with other groups.
o "We, our, us" for the committee to be considered a
team, those words would need to refer to the
committee.
• Interdependence in a team, members need and desire the
assistance, expertise and opinions of the other members.
• Power Differentiation – in a team, members try to
decrease power differentiation by treating others as
equals and taking steps to ensure equals and taking steps
to ensure equality.
• Social Distance – In a team, members try to decrease
social distance by being casual, using nicknames, and
increasing liking, empathy, and common views.
• Conflict Management Tactics – team members respond
to conflicts by collaborating, whereas non-team members
respond by forcing and accommodating.
• Negotiation Process – in teams, members negotiate in
win-win style in which the goal is for every person to
come out ahead.
TYPES OF TEAMS
• Work Teams – consist of group of employees who
manage themselves, assign jobs, plan, and schedule
work, make work-related decisions and solve work-
related problems (Kirkman & Shapiro, 2001).
• Parallel Teams – also called Cross functional teams,
consist of representatives from various department
(functions) within the organization (Keller, 2001).
• Project Teams – are formed to produce one-time outputs
such as creating a new project, installing a new software,
or hiring a new employee.
• Management Teams – management teams coordinate,
manage, advise, and direct employee and teams.
STAGES OF GROUP DEVELOPMENT
1. Forming Stage – team members get to know each other
and decide what role each member will play.
2. Storming Stage – the good behavior disappears.
o The storming stage is that stage when conflict within
the group happens. Members may get involved in
competition for desired assignments and
disagreement over appropriate behaviors and
responsibilities related task performance.
3. Norming Stage – the team works toward easing the
tension from the storming stage.
4. Performing Stage – The team begins to accomplish its
goals.
o In the performing stage, the group emerges as a
mature, organized, and well-functioning group, and
it is ready to focus on accomplishing its key tasks.
This stage is also referred to as the Total Integration
Stage.
5. Adjourning Stage – involves the termination of activities.
This stage is applicable to temporary groups such as
committees, project groups, task forces, and similar
entities. The termination of group's activities may be
triggered by any of the following:
o WHY TEAMS DON'T ALWAYS WORK?
▪ The team is not a team – teams often aren't
successful because they are teams in name
only.
▪ Excessive meeting requirements – they either
meet infrequently or meet so often that they
waste time when they do meet. (The tendency
UNIT 6 | 5
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT

to stretch a meeting can reduce the motivation
and enthusiasm of a team).
▪ Lack of empowerment – teams are not given
sufficient authority to conduct their business.
▪ Lack of skill – common for team members to
lack either the skills needed to work in a team.
▪ Distrust of the team process – many teams
don't succeed because management doesn't
trust the concept of teams.
▪ Unclear objectives – teams work best when
they know why they were formed, what they are
expected to accomplish and when they are
supposed to be finished.
CONFLICT
• Is the psychological and behavioral reaction to a
perception that another person is keeping you from
reaching a goal, taking away your right to behave in
particular way, or violating the expectancies in a
relationship.
TYPES OF CONFLICT
• Interpersonal Conflict – occurs between two individuals.
• Individual-Group Conflict – can occur between an
individual and a group just as easily as between two
individuals.
• Group-Group Conflict – occurs between two or more
groups.
▪ High need for perfection – obsessed with
completing a task correctly.
▪ High needs for approval – approval or attention
form.
CONFLICT STYLES
• Avoiding Styles – choose to ignore the conflict and how
it will resolve itself.
• Accommodating Style – when a person is so intent on
settling a conflict that he gives in and risks hurting
himself.
• Forcing Style – handles conflict in a win-lose fashion and
does what it takes to win with little regard for other
person.
• Collaborating Style – wants to win but also wants to see
the other person win.
• Compromising Style – adopts give-and-take tactics that
enable each side to get some of what it wants but not
everything it wants.
• Determining Conflict Style – a person’s method of
dealing with conflict at work can be measured by the
Rahim Organizational Conflict Inventory or the Cohen
Conflict Response Inventory.

CAUSES OF CONFLICT
• Competition for Resources – when the demand for a
resource exceeds its supply, conflict occurs.
• Task Interdependence – comes when the performance
of some group members depends on the performance of
other group members.
• Jurisdictional Authority – is found when geographical
boundaries or lines of authority are unclear.
• Communication Barriers – physical, cultural, and
psychological obstacles that interfere with successful
communication and create such conflict.
• Beliefs – beliefs systems of individuals or groups, conflict
is most likely to occur when individuals or groups believe
that they are superior to other people or group have
mistreated others are vulnerable to others and are in
harm's way cannot trust others are helpless or
powerless.
• Personality – relatively stable traits possessed by an
individual.
o Conflict is often the result of people with
incompatible personalities who must work together.
o Brinkman and Kirschner (2006) developed
classification of difficult people as a basis for the
difficult personality.
▪ High needs for control – obsessed with
completing a task and take pride in getting a job
done quickly.

UNIT 6 | 6
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
WORK LEADERSHIP
DEFINITION OF TERMS
• Leadership is the ability to guide a group to the
achievement of goals.
• Universalist Theories of leadership look for the major
characteristics common to all effective leaders.
• Great Man/Woman Theory is a universalist theory of
leadership that maintains that great leaders are born, not
made.
• Traits are enduring attributes associated with an
individual’s make-up or personality.
• Trait Theory attempts to discover the traits shared by all
effective leaders.
• Behavioral Theories of Leadership are theories derived
from studies at Ohio State and Michigan that focus on the
behaviors common to effective leaders.
• Initiating Structure are leader behaviors that define,
organize, and structure the work situation.
• Consideration Behaviors are leader behaviors that show
a concern for the feelings, attitudes, and needs of
followers.
• Task-Oriented Behaviors are leader behaviors that
concentrate on performing the job that the work group
faces.
• Relationship-Oriented Behaviors are leader behaviors
focused on maintaining interpersonal relationships on the
job.
• The Leadership Grid is an application of the findings from
the behavioral theories of leadership that stresses that
effective leaders should be both task-oriented and
relationship-oriented.
• Contingency Theories are theories that look at the
interaction of characteristics of both the leader and the
situation.
• Fiedler’s Contingency Model is a leadership theory that
maintains that effective leadership depends on a match
between the leader’s style and the degree to which the
work situation gives control and influence on the leader.
• The Least Preferred Coworker (LPC) is a measure that
assess leaders’ task or relationship orientation by having
them rate their most difficult fellow worker.
• According to Fiedler, Leader-Member Relations refer to
the quality of the relationship between leaders and
followers. Task Structure refers to an assessment of
how well elements of the work task are structured.
Position Power refers to the leader’s authority to punish
or reward followers.
• The Path-Goal Theory states that a leader’s job is to help
the work group achieve their desired goals.
• According to path-goal theory, Directive Behavior is
leader behavior that provides instructions and
suggestions for performing a job. Achievement-
Oriented Behavior is leader behavior that is concentrated
on particular work outcomes. Supportive Behavior is
leader behavior focusing on interpersonal relationships
and showing concern for workers’ well-being.
Participative Behavior is leader behavior that
encourages members to assume an active role in group
planning and decision making.
• The Decision-Making Model is a theory that matches
characteristics of the situation with leader decision-
making strategies.
• The Leader-Member Exchange Model (LMX) is a theory
that effective leadership is determined by the quality of
the interaction between the leader and particular group
members.
• Charismatic Leadership Theory states that leaders
possess some exceptional characteristics that cause
followers to be loyal and inspired.
• Transactional Leadership views leadership as based on
some transaction, such as exchanging money for work.
• Transformational Leadership focuses on the leader’s
ability to provide shared values and a vision for the future
for the work group.
• Shared Leadership is where leadership is shared among
the group members rather than being centralized in one
person.
LEADERSHIP
• The process of guiding and directing the behavior of
people in the organization in order to achieve certain
objectives.
• Leadership also spells the difference between success
and failure in terms in competitive situation.
• It is the element that convinces member of an
organization to behave in such a manner that will facilitate
the accomplishment of the goal of an organization.
DIFFERENCE BETWEEN LEADERSHIP AND
MANAGEMENT
1. Managers are rational problem solvers, while leaders are
intuitive and more visionary.
2. Mangers perform other administrative function such as
planning, organizing, decision-making, and
communicating.
3. Leaders are primarily concerned with results, while
managers are concerned with the efficiency of result.
4. And last, leaders obtain their power from below,
managers obtain theirs from above.
NATURE OF LEADERSHIP
• Leadership is an important part of management. The
absence of leaders is commensurate to chaos.
• The primary role of the leader is to influence others to
seek defined objectives enthusiastically.
• Strong leader's maybe weak managers if their poor
planning causes their group to move into wrong
directions.
• Weak leaders and still relatively become effective
managers if the subordinates have strong drive to work.
UNIT 7 | 1
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
• Thus, we expect excellent managers to have a reasonable
high leadership ability which can be acquired through
training and work experience.
PERSONAL CHARACTERISTICS ASSOCIATED WITH
LEADERSHIP
• Leader Emergence – is the idea that people who become
leader possess traits or characteristics different from
people who do not become leaders. Recent reviews
suggest that:
o People high in openness, conscientiousness and
extraversion and low in neuroticism are more likely
to emerge as leaders that their counterparts.
o High Self-monitors (people who adapts their
behavior to the social situation) emerge as leaders
more often than low self-monitors.
o More intelligent people are more likely to emerge as
leaders than are less intelligent people.
o Looking at patterns of abilities and personality traits
is more useful than looking at single abilities and
traits.
• Research on the relationship between personal
characteristics and leader performance has concentrated
on three areas : TRAITS, NEEDS, and ORIENTATION.
TRAITS
• Judge et.al. (2002) found that extraversion, openness,
agreeableness, and conscientiousness were positively
related to leader performance and that neuroticism was
negatively related to leader performance.
• Youngjohn and Woehr (2001) found that management,
decision-making, and oral-communication skills were
highly correlated with leadership effectiveness.
• Self-Monitoring – a personality trait characterized by the
tendency to adapt one's behavior to fit a particular social
situation.
COGNITIVE ABILITY
• Judge et.al. (2004) found a moderate but significant
corrected between cognitive ability and leadership
performance.
• It was further discovered that cognitive ability is most
important when the leader is not distracted by stressful
situations and when the leader uses a more directive
leadership style.
• Studies conducted the performance of U.S Presidents, it
was found that the president rated by historians as being
the most successful were smart and open to experience,
had high goals and interestingly had the ability to bend
the truth.
NEEDS
• Need for Power – the extent to which a person desires to
be in control of other people.
• Need for Achievement – the extent to which a person
desires to be successful.
• Need for Affiliation – the extent to which a person
desires to be around other people.
o McClelland and Boyatzis (1982) demonstrates that
high performance manager has a leadership Motive
Pattern,w hich is a high need for power and a low
need for affiliation.
o Leaders with high affiliation needs may decide that
being liked is more important than being successful,
causing conflict with their decisions. (This would
also explain why internal promotion often do not
work out).
o Significance:
▪ Successful leaders will not place their need to
be liked above the goals of the organization.
▪ Ex. President Richard Nixon – high need for
affiliation made tough decisions but later would
apologize because he wanted to be liked by both
public and the press.
▪ Needs for power affiliation, and needs can be
measured by various psychological test:
 Thematic Apperception Test (TAT) – a
projective test in which a person is shown
a series of pictures and asked to tell a story
about what is a happening in each. Trained
psychologist analyzes the stories, identify
the need’s themes showing results for the
need for power, achievement, and affiliation
by shwoing a series of pictures.
 Job Choice Exercise (JCE) developed by
Stahl and Harrell (1982) – a person reads
descriptions of jobs involving varying
degrees of power, achievement, and
affiliation needs and rates how desirable he
finds each particular job.
 Examining the Themes that occur in their
writing speeches – it was found that
President Franklin Roosevelt, Kennedy, and
Reagan had high needs for power,
President Harding, Nixon and Truman had
high needs for affiliation: President Wilson,
Hoover and Carter had high needs for
achievement.
TASK VERSUS PERSON ORIENTATION
• Three major schools of thought – Ohio State Students,
Theory X and managerial Grid have postulated that
differences in leader performance was attributable to
differences in the extent to which leaders are task versus
person oriented.
• Managerial Grid – a measure of leadership that classifies
a leader into one of five leadership.
o Person-Oriented Leaders – act in warm and
supportive manner, show concern to their
subordinates, believe that employees are intrinsically
motivated, seek responsibility, self-controlled, do not
necessarily dislike work.
UNIT 7 | 2
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
o Person-Oriented Leaders – consult their
subordinates before making decisions, praise their
work, ask about their families, do not look over their
shoulder and use more “hands off” approach to
leadership. Under pressure, person-oriented leaders
tend to become socially withdrawn. Tend to
appreciate humor by listening to others, jokes.
o Task Oriented Leaders – define and structure their
own roles and those of their subordinates to attain
the group’s formal goals. See their employees as
lazy, extrinsically motivated, wanting security,
undisciplined and shirking responsibility.
▪ Tend to manage or lead by giving directives,
setting goals, and making decisions without
consulting their subordinates.
▪ Tend to manage or lead by giving directives,
setting goals, and making decisions without
consulting their subordinates.
o Significance:
▪ Task oriented leaders tend to produce humor
(e.g., tell jokes and stories)
▪ Person oriented leaders tend to appreciate
humor.
o Tools to measure task or person orientation:
▪ Leadership Opinion Questionnaire (LOQ) – is
filled out by supervisors or leaders who want to
know their leadership styles.
▪ Leader Behavior Description Questionnaire
(LBDQ) – is completed by subordinates to
provide picture of how they perceive their
leader’s behavior.
UNSUCCESSFUL LEADERS
• The traits and behaviors of unsuccessful leaders are not
necessarily the opposite of those of successful leaders
(Hackman & Wagerman, 2007).
• Hogan (1989) attempted to identify traits of unsuccessful
leaders.
• The most employees’ greatest source of stress is their
supervisors’ poor performance, strange behavior, or
both.
o Lack of Training – lack of leadership training given
to supervisors.
o Cognitive Deficiencies:
▪ Poor leaders are unable to learn from
experience.
▪ Unable to think strategically.
▪ They consistently make the same mistakes
▪ Do not plan ahead. (Story of the burned ear)
(story of a manager without system- (no sched,
changes it intermittently).
▪ Personality – Hogan believes that many
unsuccessful leaders are insecure and adopt
one of the three personality types:
 Paranoid or Passive-Aggressive – has
deeply rooted but unconscious resentment
or anger. On the surface, these leaders are
charming, quiet people, often compliment
subordinates and fellow workers. But they
resent the successes of others and are
likely to act against them in a passive-
aggressive manner.
 High Likability Floater – an insecure leader
who seldom rocks the boat. He goes along
the group, friendly with everyone and never
challenges anyone’s ideas. He travels
through life with many friends and no
enemies because he never challenges
anyone or stands up for the rights of the
employees.
 The Narcissist – overcome their insecurity
by overconfidence. They like to be the
center of attention, promote their own
accomplishments take the credit for the
success of the group. While avoiding blame
for any failure.
LEADERSHIP THEORIES
• Situational Favorability – the best known and most
controversial situational theory, developed by Fred
Fiedler.
o A theory of leadership states that leadership
effectiveness is dependent on the interaction
between the leader and the situation.
o Fiedler’s Contingency Model – That leadership style
is only effective in certain situations.
o Instead of teaching people to change leadership
styles, leadership training should concentrate on
helping people understand their style of leadership
and learn how to manipulate a situation to make both
ends meet.
o To help people understand their leadership style
fielder developed the Least-Preferred Coworker
(LPC) Scale.
o Least-Preferred Coworker (LPC) Scale:
▪ Leaders identify the subordinates or employee
with whom they would least want to work.
▪ From nice to nasty and from friendly to
unfriendly.
▪ The higher the leaders rate their Least-Preferred
Co-Worker, the higher the LPC score. Then the
score is compared with the favorableness of the
situation is determined by Three variables:
 Task Structuredness – refers to the extent
to which tasks have clear goals and
problems can be solved
 Leader Position Power – the greater the
position or legitimate power of the leader,
the more favorable the situation.
 Leader Member Relations – the more
subordinate likes the leader, the more
favorable the situation.
• Organizational Climate – known as the IMPACT Theory,
was developed by Geier Downey and Johnson (1980).
UNIT 7 | 3
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
• Each leader has one of six behavioral styles:
o Informational Style – provides information in a
climate of ignorance, where important information is
missing from the group.
o Magnetic Style – a style of leadership in which the
leader has influence because of his or her
charismatic personality, most effective in a climate
of despair.
o Position Style – a leadership style in which the
leader influence others by virtue of their appointed
or elected authority; most effective in a climate of
instability.
o Affiliation Style – a leadership style in which the
individual leads by caring others and that is most
effective in a climate of anxiety.
o Coercive Style – a leadership style in which the
individual leads by controlling reward and
punishment, most effective in a climate of crisis.
o Tactical Style – a leadership style in which a person
leads through organization and strategy, most
effective in a climate of disorganization.
• Each style is effective only in a particular organizational
climate.
SUBORDINATE ABILITY
• House (1971) believed a leader’s behavior will be
accepted by subordinates only to the extent to which the
behavior helps the subordinate achieve their goals.
• Path Goal Theory – A theory of leadership stating that
leaders will be effective if their behavior helps
subordinate achieve relevant goals.
o Four Behavioral Leadership Styles:
▪ Instrumental Style – a leadership style in which
the leader plans and organizes the activities of
employees.
▪ Supportive Style – a leadership style in which
leaders show concern for their employees.
▪ Participative Style – a leadership style in which
leader allows employees to participate in
decisions.
▪ Achievement Oriented Style – a leadership stye
in which the leader sets challenging goals and
regards achievement.
SITUATIONAL LEADERSHIP THEORY – DEVELOPED BY
HERSEY AND BLANCHARD (1988)
• A theory of leadership stating that effective leaders mist
adapts their style of leadership to fit both the situation
and followers.
• Termed the most important follower characteristics
follower readiness, or the ability and willingness to
perform a particular task.
• A leader typically uses one of the four behavior styles:
o Delegating
o Directing
o Supporting
o Coaching
LEADER-MEMBER EXCHANGE (LMX) THEORY – WAS
DEVELOPED BY DANSEREAU, GRAIN AND HAGA (1975)
• Was originally called vertical dyad linkage (VDL).
• A unique situational theory that makes use of intuitive
sense. It concentrates on interactions between leaders
and subordinates which is termed: Leader-Member
Exchange (LMX).
• Relationship between 2 People:
o The position of the leader above the subordinate =
vertical
o Their interrelated behavior = linkage
• Norm: Leaders develop different roles and relationships
with their subordinates and act differently with different
subordinates.
CHOOSING AN APPROPRIATE LEADERSHIP MODEL
• Specific Leadership Skills – Yukl (1982), Hemphill &
Coons (1950), Gibb (1969) proposed a "behavioral theory
of what leaders must do:
o Initiates ideas
o Informally interact with employees
o Take responsibility
o Stand up for and support subordinates
o Develop a group atmosphere
o Organize and structure work
o Communicate formally with subordinates
o Reward and punish
o Set goals
o Make decisions
o Train and develop employee skills
o Solve problems
o Generate enthusiasm
LEADERSHIP THROUGH DECISION MAKING – VROOM
& YETTON, (1973)
• Leadership performance can be achieved by teaching
decision making skills to leaders. When to make a
decision alone or to make it with the help of others.
o Vroom-Yetton Model – a theory of leadership that
concentrates on helping a leader choose how to
make a decision.
▪ Developed a decision tree. A flowchart that can
tell a leader what process to go through to make
decision in a particular situation.
LEADERSHIP THROUGH CONTACT – MANAGEMENT BY
WALKING AROUND (MBWA)
• This holds true when leaders are most effective when
they are out of their offices, walking around, and meeting
with and talking to employees/customers about their
needs and progress.
UNIT 7 | 4
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
LEADERSHIP THROUGH POWER: MANAGEMENT BY
POWER
• Power is important to a leader because as it increases so
does the leader's potential to influence others.
• Raven (1992) Five Basic types of Power:
o Expert Power – power that individuals have because
they have knowledge.
o Legitimate Power – power that individuals have
because of their elected or appointed position.
o Reward or Coercive Power – power to the extent that
they can reward and punish others.
o Referent Power – leadership power that exist when
followers can identify with a leader and the leader
goals.
LEADERSHIP THROUGH VISION:
TRANSFORMATIONAL LEADERSHIP
• Two Types of Leadership:
o Transactional Leadership – leadership style in which
the leader focuses on task oriented behaviors.
▪ Have three dimensions: contingent reward,
management by exception – active and
management by exception – passive.
o Transformational Leadership
▪ Focuses on changing and transforming goals,
values, ethics, standards, and the performance
of others (Northouse, 2003).
▪ They are labeled as "charismatic", "visionary"
and "inspirational leaders" They lead by
inculcating a vision, are confident and are
convinced of their beliefs and ideas as correct
(Bryman, 1992).
▪ They innovate, challenge status qou, focus on
people and are flexible, look for the future,
analyze problem and trust their intuition (Bass,
1997; Nanus, 1992; Yuki, 1994).
HIGHLY RELATED DIMENSION TO
TRANSFORMATIONAL LEADERSHIP ARE:
• Charisma – uses enthusiasm to motivate followers.
• Intellectual Stimulation – encourages change, open
thinking appreciate adversity.
• Individual Consideration
SUMMARY
• Leadership is the ability to direct a group toward the
attainment of goals. Leadership theories can be divided
into three categories: universalist theories, behavioral
theories, and contingency theories. The great
man/woman theory, a universalist theory, holds that
some people are nat-ural, born leaders. The trait theory
specifies certain personality traits, or characteristics that
are common to all effective leaders. These universalist
theories suffer from the facts that they are simplistic and
that they focus on individual leader characteristics.
• The behavioral theories of leadership are typified by
studies conducted at Ohio State and University of
Michigan that looked directly at leader behavior, rather
than at inferred leader characteristics. Two dimensions of
leader behavior emerged: initiating structure (also called
task‑oriented behaviors), which focuses on work task
production, and consideration (also known as
relationship‑oriented behaviors), which emphasizes
interpersonal relationships among workers. The
Leadership Grid is an application of the findings from the
behavioral theories – a program that stresses both
task‑oriented and relationship‑oriented behaviors as the
keys to leader success.
• Next to emerge were the contingency theories of
leadership. Fiedler's Contingency Model states that
effective leadership depends on a match between the
leader's style and the favorableness of the work situation.
Leader style is assessed through the Least Preferred
Co‑Worker (LPC) measure. Task‑oriented leaders are
most effective in either very favorable or very unfavorable
situations, while relationship-oriented leaders do better
in moderately favorable situations. The favorability of
situations in Fiedler's model is determined by three
variables: leader‑member relations, task structure, and
the leader's position power. The Path‑Goal Theory
asserts that the leader is a facilitator who chooses the
type of behavior that will most help the work group to
achieve their goals. According to the path‑goal theory, the
leader can adopt four types of leaders behavior:
directive, achievement‑oriented, supportive, or
participative.
• The Decision-Making Model sees the leader's main role
as making work‑related decisions. This prescriptive
model contains a decision tree framework for the leader
to follow to decide the appropriate decision‑making
strategy (ranging from autocratic to democratic) to use
in a particular situation. The Leader‑Member Ex-Change
Model examines the quality of the relationship between
the leader and each subordinate, which leads to a more
precise determination of work outcomes. Finally,
transformational and charismatic leadership theories
focus on exceptional characteristics or qualities that
leaders possess that inspire loyalty in followers and
motivate them to achieve extraordinary goals.
• The application of leadership theories involves one of two
strategies: instituting leadership training programs or
redesigning the job to fit the leader. The majority of the
theories advocate leadership training, either by teaching
specific leader behaviors (for example, task‑oriented or
rela-tionship‑oriented) or by training leaders to diagnose
situations that call for task‑oriented or
relationship‑oriented behaviors. Job redesign usually
involves changing characteristics of the situation to fit the
leader's typical style or orientation. However, work
situations that are amenable to such job redesigns may
be limited. In other situations, particularly where roles
and procedures are well-defined, substitutes for
UNIT 7 | 5
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
leadership, such as self-managing work teams or shared
leadership, may be appropriate.
FLEXIBILITY AS A LEADERSHIP TRAIT
• As noted in chapter 13 of the text, early attempts to
identify the universal traits of leaders ended in
inconclusive evidence. However, as also noted, since the
1980's, there has been a resurgence of interest in
leadership traits. One of the traits recently studied is
flexibility – a trait which may, in fact, be a complex set of
abilities rather than a single trait.
• It is worthwhile to look more closely at the possible
reasons why flexibility emerges as an important
characteristic of leaders. If only one words could be used
to describe the workforce of the 21st century, that words
would have to be "diverse." As stated in the text, leaders
of the future will be required to be culturally flexible and
adaptable if they are going to be effective in leading
diverse work groups.
• If flexibility is a set of abilities, when then, are the
underlying abilities that enable an individual to be
flexible? A recent study by Zaccaro, Foti, & Kenny (1991)
found self- monitoring to be associated with leader
emergence. In other words, individuals who scored
higher on a measure of self-monitoring were more likely
to be identified as leaders by participants in the study.
• Self-monitoring refers to the tendency or ability to sense
and correctly interpret social cues, and to engage in
appropriate behaviors based on those cues. According
to Thomas (1992), traditionally, employees endeavored
to fit in or "shed their differences" upon joining an
organization. However, there is a growing tendency for
people to celebrate their differences rather than conceal
them.
• This "celebration of differences" coupled with the
increasing diversity in the workforce, will no doubt call
for leaders who are flexible in ways that enable them to
perceive and understand social situations, to
communicate effectively, and act wisely in a variety of
social settings (Riggio, 1986).
INTEGRATING LEADERSHIP THEORY
• A recent book by Chemers (1997) presents an integrated
theory of leadership based on functions of leadership in
the organization and reviews of research on various
models of leadership. Chemers suggests two integrative
frameworks for understanding apparently opposing
approaches to understanding leadership. One integration
adopts a functional perspective that posits that apparent
divergences between theoretical approaches result from
attempts to use one theoretical orientation to explain
separate and distinct leadership functions with different
processes and effectiveness criteria. Functional aspects
of leadership include image management, relationship
development (including coaching, guidance, making
attributions and judgments), and resource utilization.
• A second integration ties together the central processes
that underlie team leadership in an attempt to provide a
coherent understanding of the dynamic qualities of
effective leadership. This approach focuses on processes
of leadership as they occur in the organization, including
self-deployment (or the interface of the leader with the
environment), transactional relationship processes (the
dynamic interaction of leader and followers), and team
deployment (including focus on organizational
performance). Chemers’ integrative approach may serve
as a useful additional source of information in lecturing
to advanced students about leadership as a theoretical
construct.
OTHER RELATED THEORIES
VARIOUS THEORIES RELATED TO SITUATIONAL
APPROACH TO LEADERSHIP CONSIST OF THE
FOLLOWING:
I. Continuum of Leadership Behavior by Tannenbaum and
Schmidt.
• It is the first contingency model of leadership.
• It was developed by Robert Tannenbaum and Schmidt.
• It is referred to as the continuum of leadership behavior.
• Three Factors that the Leader Choices depend:
1. Forces in the manager
2. Forces in subordinates
3. Forces in the situation
II. The Contingency Leadership Model by Fiedler
• It was developed by Fred Fiedler.
• It proposes that the effective group performance
depends on the proper match between the leader’s style
and the degree to which the situation favors the leader.
• Fiedler depend on these three factors:
1. Leader-member relations
2. Task Structure
3. Position Power
III. The Path-Goal by House and Mitchell
• It is developed by House and Mitchell.
• States that the leader’s job is to create a work
environment through structure, support, and rewards
that helps employees reach the organizations goals.
• Two major roles of Path-Goal Model:
1. The creation of a good orientation
2. The improvement of the path toward the goals so
that they will be attained.
• Four Leadership Behavior of House and Mitchell:
1. The Directive Leader
2. The Supportive Leader
3. The Participative Leader
4. The Achievement-Oriented Leader
UNIT 7 | 6
 UNIVERSITY OF THE CORDILLERAS
BACHELOR OF SCIENCE IN PSYCHOLOGY (2022)
INDUSTRIAL PSYCHOLOGY
PROFESSOR: ISIDRO ALINDAYU, JR.
COLLATED BY: RUTH MARGARET
ADAPTED FROM: HANDOUT
IV. The Hershey-Blanchard Situational Leadership
Theories
• Developed by Paul Hershey and Kenneth Blanchard.
• SLT suggests that a leader’s style should be determined
by matching it with the maturity level of each subordinate.
o The Readiness consists of two concerns:
▪ Job readiness or task competence
▪ Psychological readiness or commitment
o Subordinate may be classified as follows:
▪ Those with low competence and low
commitment D-1.
▪ Those with low competence and high
commitment D-2.
▪ Those with high competence but with low
commitment D-3.
▪ Those with high competence but with high
commitment D-4.
V. The Leader-Member Exchange Approach by Graen
• A leadership theory was developed by George Grean and
his associates.
• It recognizes that leaders develop unique working
relationship with each group members.
• Leaders and their followers exchange information,
resources and role expectations that determine the
quality of their interpersonal relationships.
VI. The Normative Decision Model by Vroom and Jago
• Also known as the leader Participation Model and
Decision-Making Model of Leadership.
• It was developed by Victor and Philip Yetton but later on
the model was revised by Vroom and Arthur Jago to
make it more accurate.
• It views leadership as a decision-making process in which
the leader examines certain factors within the situation to
determine which decision-making style will be most
effective.
• Five decisions making styles that presented by
Normative Model, each reflecting a different degree of
participation by group members:
1. Autocratic I – the leader individually solves the
problem using the information already available.
2. Autocratic II – the leader obtains the data from
subordinates and then decides.
3. Consultative I – the leader explains the problem to
individual subordinates and obtains ideas from each
other before deciding.
4. Consultative II – the leader meets with group of
subordinates to share the problem and obtain inputs
and then decide.
5. Group II – the leader shares problem with group and
facilitate a discussion of alternatives aiming to reach
a group agreement on a solution.
• Normative decision model is based on the following
assumptions:
1. The leader can accurately classify problems
according to the criteria offered.
2. The leader is able and willing to adapt his or her
leadership style to fit the contingency condition he
or she faces.
3. The leader is willing to use a rather complex method.
4. The employees will accept the legitimacy of different
styles being use for different problems as well as the
validity of the leader’s classifications of the situation
at hand.
VII. The Muczyk-Reiman Model
• This model was developed by Jan P. Muczyk and Bernard
C. Reinmann.
• It suggests that participation behavior is concerned with
the degree to which subordinates are allowed to be
involved in decision making.
• It is separated from direction which is viewed as the
degree of supervision exercised in the execution of the
tasks associated with carrying out the decision.
• Four Leadership are considered to make delegation
effective.
1. The Directive Autocrat – the leader makes decisions
unilaterally and closely supervises the activities of
subordinates.
2. The Permissive Autocrat – this leader makes
decisions unilaterally but allows subordinates a great
deal of latitude in execution.
3. The Directive Democrat – this leader wants full
participation but closely supervises subordinate
activity.
4. The Permissive Democrat – this leader allows high
participation in decision making and in execution.
IMPLICATION FOR MANAGERIAL PRACTICE
• Combing all the leadership theories: leadership emerges
as a set of interaction between a leaders' traits and skills,
between situations demand and character and between
followers' needs and characteristics.
• Looking into the interactions between a leader's traits and
skills, who are successful leaders?
o Have received leadership training and mastered the
skills of 4 leadership strategies.
o Are high self-monitors.
o Are high in both task and person orientations.
o Have a leadership motive pattern (high need for
power, low in affiliation).
o Are intelligent.
o Are emotionally stable (don't possess problematic
personality traits like high likability floater, the
narcissist, or the passive-aggressive person.
o Possesses the skill and personality to be a
transformational leader.
UNIT 7 | 7