Human Behavior in Organization

REPUBLIC OF THE PHILIPPINES
Polytechnic University of the Philippines

College of Social Sciences and Development
DEPARTMENT OF PSYCHOLOGY
INSTRUCTIONAL MATERIAL
FOR PSYC 40033
HUMAN BEHAVIOR IN
ORGANIZATION
Compiled by:
Christ Michael C. Entienza, MPsy, RPm,

Filipinas Corazon B. Abadilla, Rpm
RGC
Charlon T. Agos, MPsy
Aimee Rose A. Manda, RPm, ICAP III,
Girlie Rose C. Antonio, MPsy, RPm
CMHFR
Rafael Lou Carlos Chinchilla, RPm
Arianne Nicole S. Nachor, MPsy, Rpm
Artemus G. Cruz, RPsy, RGC, RPm
Alexander B. Prudente Jr., Mpsy
Zaila C. Decin, MPsy, RPm
Geraldine F. Santos, M.A., RPsy, RPm
Ma. Aurora P. De Leon
Edgar S. Teovisio
HUMAN BEHAVIOR IN ORGANIZATION 1
INTRODUCTION
Why do people behave a certain way in an organizational environment? What factors

affect job performance, employee interaction, job commitment, leadership and managerial
styles? Individuals have studied this very topic for decades in order to find ways of increasing
organizational performance. Human Behavior in Organization is the study of both group and
individual performance and activity within an organization. This area of study examines human
behavior in a work environment and determines its impact on job structure, performance,
communication, motivation, leadership, etc. It gives insight on how employees behave and
perform in the workplace. It helps us develop an understanding of the aspects that can
motivate employees, increase their performance, and help organizations establish a strong
and trusting relationship with their employees.
TABLE OF CONTENTS
Chapter 1: What is Organizational Behavior? - 1 Chapter 2: Diversity in

Organizations - 11 Chapter 3: Attitudes and Job Satisfaction - 16 Chapter 4:
Emotions & Moods at Work - 24
Chapter 5: Personality and Values - 31 Chapter 6: Perception and Individual Decision
Making - 41 Chapter 7: Motivation Concepts - 46 Chapter 8: Motivation from Concept
- 52 Chapter 9: Foundations of Group Behavior - 57 Chapter 10: Understanding Work
Teams - 63 Chapter 11: Communication - 69 Chapter 12: Leadership - 77 Chapter 13:
Power and Politics - 82 Chapter 14: Conflict and Negotiation - 88 Chapter 15:
Foundations of Organization Structure - 95 Chapter 16: Organizational Culture - 101
Chapter 17: Human Resource and Policies - 105 Chapter 18: Organizational Change
and Stress Management - 112 References - 117
Chapter 1: What is Organizational Behavior?
I. LEARNING OBJECTIVE / OUTCOME
At the end of this lesson you should be able to:

1. Understand the importance of interpersonal skills in the workplace.
2. Know the manager’s functions, roles, and skills.
3. Explain organizational behavior (OB).
4. Show the value to OB of systematic study.
5. Understand the major behavioral science disciplines that contribute to OB.
6. Demonstrate why few absolutes apply to OB.
7. Identify the challenges and opportunities managers have in applying OB concepts.
8. Compare the three levels of analysis in this text’s OB model.
II. INTRODUCTION
This chapter introduces the concept of organizational behavior. The focus of the text is
that coupling individual understanding of behavior gained through experience with that gained
through systematic OB analysis will help managers become more effective.
Many of the important challenges being faced by today’s managers are described, as
are the three levels of OB study. The outline of the text is described in relation to these three
levels.
III. LESSON PROPER
Since the late 1980s, business schools have recognized the link between understanding
human behavior and managerial effectiveness.
Managers cannot succeed on technical skills alone. They also need good people skills.
1. The Importance of Interpersonal Skills
❖ Good people skills are important

✔ Good places to work have superior financial performance
Starbucks, Adobe Systems, Cisco, Whole Foods, Google, American Express,

Amgen, Pfizer, Facebook and Marriott (US)Smart, Globe, Jollibee (PH)
Creating a pleasant workplace also appears to make good economic sense, this
companies with good reputations generates superior financial performance.
✔ Developing managers’ interpersonal skills helps attract and keep high-performing

employees
✔ There is a strong association between the quality of workplace relationships and
employee job satisfaction, stress, and turnover
A survey of hundreds of workplaces showed the social relationships among co-workers

and supervisors were strongly related to overall job satisfaction. Positive social relationships
also were associated with lower stress at work and lower intentions to quit.

✔ Increasing OB principles can foster social responsibility awareness
So, having managers with good interpersonal skills is likely to make the workplace more
pleasant, makes it easier to hire and keep qualified people. CSR of each company
2. What Managers Do?

❖ Managers is an individual who achieves goals through other people.
✔ Get things done through other people.
✔ They allocate resources, and direct activities of others to attain goals.
✔ They do their work in an organization.
✔ The people who oversee the activities of others and who are responsible for attaining
goals. ✔ Sometimes called administrators (non-profit organizations)
❖ Organization is a consciously coordinated social unit, composed of 2 or more people

that functions on a relatively continuous basis to achieve a common goal or set of
goals.
Examples are:
✔ manufacturing and service firms
✔ Schools
✔ Hospitals
✔ Churches
✔ Military units
✔ Police departments
✔ Retail stores
✔ Local, State Government agencies
❖ Management Functions
French industrialist Henri Fayol:All managers perform 5 management
functions: Planning, Organizing, Commanding, Coordinating & Controlling
Presently condensed into 4:
1. Planning- a process that includes defining goals, establishing strategy, and developing
plans to coordinate activities.
2. Organizing- determining what tasks are to be done, who is to do them, how the tasks are
to be grouped, who reports to whom, and where decisions are to be made.
3. Leading- a function that includes motivating employees, directing others, selecting the
most effective communication channels, and resolving conflicts.
4. Controlling- monitoring activities to ensure they are being accomplished as planned and
correcting any significant deviations.
Because organizations exist to achieve goals, ‘someone’ has to define those goals and
the means for achieving them; MANAGEMENT is that someone.So using the functional
approach, the answer to the question” WHAT MANAGERS DO?” is that THEY PLAN,
ORGANIZE, LEAD and CONTROL.

❖ Management Roles
In the late 1960’s, Henry Mintzberg(graduate student of MIT) took a careful study of 5
executives to determine WHAT THEY DID IN THEIR JOBS. He concluded 10 different
interrelated roles or sets of behaviors which was categorized into 3:
Interpersonal – duties that are ceremonial and symbolic.

✔ Figurehead– ex: taking visitors to dinner and attending ribbon-cutting ceremonies. when
the president of the college hands out diplomas at commencement factory supervisor gives
a group of high school students a tour of the plant.
✔ Leadership – hiring, training, motivating and disciplining employees.
✔ Liaison – ex: a manager at Intel might be responsible for handling all price negotiations
with a key supplier at microchips. Sales manager who obtains information from quality
control manager in his/her own company has an internal liaison relationship.
Informational – collect information from outside organizations and institutions. • Monitor role –
scanning the news media (including the internet) and talking with other people to learn of
changes in the public tastes, what competitors may be planning, and the like.
• Disseminator – transmits info to org members.
• Spokesperson – managers represent the org to outsiders.
• Decisional – roles that require for making choices
• Entrepreneur – managers initiate and oversee new projects that will improve their
organization’s performance.
• Disturbance Handler – managers take corrective action in response to unforeseen
problems.
• Resource Allocator – responsible for allocating human, physical and monetary
resources.
• Negotiator – they discuss issues and bargain with other units to gain advantages for their
own unit contracts between management and labor unions.
Decisional – roles that require for making choices
✔ Entrepreneur – managers initiate and oversee new projects that will improve their
organization’s performance.
✔ Disturbance Handler – managers take corrective action in response to unforeseen
problems.
✔ Resource Allocator – responsible for allocating human, physical and monetary
resources.
✔ Negotiator – they discuss issues and bargain with other units to gain advantages for their
own unit contracts between management and labor unions.
❖ Management Skills
Technical Skills- The ability to apply specialized knowledge or expertise. ex: When you think of
the skills of professionals such as civil engineers or oral surgeons, you typically focus on the
technical skills they have learned through extensive formal education.
Human Skills- The ability to work with, understand, and motivate other people both
individually and in groups.
ex: many people are technically proficient but poor listeners, unable to understand the

needs of others, or weak at managing conflicts.
Conceptual/Diagnostic Skills- The mental ability to analyze and diagnose complex situations.
ex: decision-making requires managers to identify problems, develop alternative solutions, and
select the best one. After selecting, they must be able to organize a plan of action and then
execute it.The ability to integrate new ideas with existing processes and innovate on the job are
also crucial conceptual skills for today’s managers.
3. The Field of Organizational Behavior

Organizational behavior studies the influence that individuals, groups, and structure
have on behavior within organizations. Its chief goal is to apply that knowledge toward improving
an organization’s effectiveness
❖ Focal Points of OB
JOB mostly means paid work. – a piece of work, especially a specific task done as part of the
routine of one’s occupation or for the agreed price.
Ex – Myleen’s job is cleaning the university toilets.
WORK means exertion or effort directed to produce or accomplish something. Ex–

Mowing the lawn is work. Cleaning the toilet is work.
ABSENTEEISM is a measure of attendance. Some misses occasionally, some miss far more
than others. Some look for excuses to miss work and call in sick regularly just for sometimes off
Others miss work only when necessary.
Example- It is a failure to report to work, is a huge cost and disruption to employers.
TURN-OVER when a person leaves the organization. If the individual who leaves is a good
performer or if the organization has invested heavily in training for the person, turnover can be
costly.
Ex: Is voluntary or involuntary permanent withdrawal from an organization. PRODUCTIVITY is
a performance measure that includes effectiveness and efficiency. Is an indicator of his/her
efficiency, and is measured in terms of the products or services created per unit of input?
Effectiveness – achievement of goals
Efficiency – the ratio of effective output to the input required to achieve it.
Ex: Bill makes 100 units of a product in a day and Sara makes only 90 units in a day, then
assuming that the units are of the same quality and that Bill and Sara make the same wages, Bill
is more productive than Sara.
Ex: A hospital is effective when it successfully meets the needs of its clientele. It is efficient
when it can do so at a low cost.
An organization is productive if it achieves its goals by transforming inputs into outputs at the
lower cost. Thus, it requires both effectiveness and efficiency.
PERFORMANCE – is made-up of all work-related factors.

For ex: Even though Bill is highly productive, it may also be that he refuses to work overtime,
expresses negative opinions about organization at every opportunity and will do nothing unless it

falls precisely within the boundaries of his job. Sara, on the other hand, may always be willing to
work overtime, is a positive representative of the organization, and goes out of her way to make
as many contributions to the organization as possible. Based on their behaviors, then, we might
conclude that Sara actually is the better performer.
MANAGEMENT are all the activities done by the manager for getting things done through
others. It also the art of getting things done through people
4. Complementing Intuition with Systematic Study

Intuition is your “gut feeling” explanation of behavior. Often our intuition leads us in the
decision-making process. Our intuition relies on gut feelings, individual observation, and
common sense. Although our intuition is extremely useful in the decision-making process, it
does not give us the complete picture. By engaging in a systematic study of behavior we can
enhance our effectiveness. It is not an either/or relationship, rather intuition and systematic
study can work effectively together to predict behavior.
Systematic study improves ability to accurately predict behavior. When we talk about
engaging in a systematic study, we are talking about looking at relationships, attempting to
attribute causes and effects, and drawing conclusions based on scientific evidence. By doing so,
we can better determine cause and effect, and then by applying scientific evidence to our
conclusions, we are better able to predict behavior.
Evidence-Based Management (EBM) complements systematic study by applying

scientific evidence to managerial decisions. The basing of managerial decisions on the best
available evidence.
Big Data is the extensive use of statistical compilation and analysis. It Identifies
Persistent and predictive statistics. It Creates targeted marketing strategies.
Using big data for managerial practices:

✔ Define objectives, develop theories of causality, test the theories to see which employee
activities are relevant to the objectives
5. Contributing Disciplines to the OB Field

Organizational Behavior (OB) is interdisciplinary in nature as it is an applied behavioral
science. The theory in OB relies on contributions from multiple behavioral disciplines. These
disciplines include Psychology, Social Psychology, Sociology, and Anthropology.
Psychology
-To measure, explain, and sometimes change the behavior of humans and other animals.
-Those who have contributed and continue to add to the knowledge of OB are learning theorists,
personality theorists, counseling psychologists, and most important, industrial and
organizational psychologists.
-Early industrial and organizational psychologists studied the problems of fatigue, boredom, and
other working conditions that could impede efficient work performance.
Recently, their contributions have expanded to include learning, perception, personality,
emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction,

decision-making process, performance appraisals, attitude measurement, employee-selection
techniques, work design and job stress.
Social Psychology
-a branch of psychology blends concepts from both psychology and sociology to focus on
people’s influence on one another.
One major study area is – change how to implement it and how to reduce barriers to its
acceptance. Social psychologists also contribute to measuring, understanding, and changing
attitudes; identifying communication patterns; and building trust.
Finally, they have made important contributions to our study of group behavior, power and conflict
Sociology
-studies people in relation to their social environment or culture.
Contributions of sociologists to OB are group behavior in organizations, particularly formal and
complex organizations.
The most important is organizational culture, formal organization theory and structure,
organizational technology, communications, power and conflict.
Anthropology
-study of societies to learn about human beings and their activities.
Anthropologists’ work on cultures and environments that has helped understand differences in
fundamental values, attitudes, and behavior between people in different countries and within the
organizations.
Understanding of organizational culture, organizational environments, and differences among
national cultures is a result of the work of anthropologists or those using their methods.
❖ FEW ABSOLUTES IN OB
There are few absolutes (rules, principles, solutions, truths, fundamentals) in organizational
behavior. When making decisions you must always take into account situational factors that can
change the relationship between two variables.
For example, as seen in this chart one message from a boss in an American culture can mean a
completely different thing in another culture. It is always important to take context into account.
SITUATIONAL or CONTINGENCY VARIABLES – variables that moderate the relationship

between 2 or more variables.
The science of OB was developed by applying general concepts to a particular situation, person,
or group.
For ex: OB scholars would avoid stating that everyone likes complex and challenging work (the
general concept). Why? Because not everyone wants a challenging job. Some people prefer
routine over varied, or simple over complex. A job attractive to one person may not be to
another: its appeal is contingent (depends) on the person who holds it.

Impossible to make simple Variable (X)
and accurate generalizations Contingency Variable (Y)

Dependent
Human beings are complex

and diverse Variable (Z)Independent
Cultures Complimenting
American Boss Gives “Thumbs
OB concepts must Culture Up” Sign
reflect situational In
Understood as
Insulting - “Up Yours!”

conditions: Iranian Boss Gives “Thumbs
contingency variables Up” Sign

Understood as
or Australian
In
In the workplace today there are many challenges and opportunities in the area of
Organizational Behavior. Understanding OB has never been more important for managers as
organizations are changing at a much more rapid pace than historically seen.
❖ Challenges and Opportunities for OB
Responding to economic pressures-recession, lay-offs, job losses, accept pay cuts. Effective
managers emphasize different skills depending on the economic situation. During ‘good’ times,
managers focus on rewarding, satisfying, and retaining employees. During ‘bad’ economic
times, managers need skills that help them address stress, decision making, and coping.
Responding to globalization- As foreign assignments increase, you will need to be able to

manage a workforce that is different than what you may be used to and may bring different
needs, aspirations, and attitudes to the workplace.
• Working w/ people from different culture- You will also have individuals coming to
work in your own country that come from different cultures, and you will need to find
ways to accommodate their needs and help them assimilate to your workplace
culture.
• Overseeing movement of Jobs to countries with low-cost labor - You may also
need to do the difficult task of moving jobs outside of your country to a country with
lower labor costs. This is a difficult process logistically but also emotionally for the
workers who will be losing their jobs. You will need to be aware of, and appreciate,
the cultural norms in each country in which you do business. In addition, it’s
important to consider country and local regulations that could affect how you do
business.
Organizations now exist in an environment with no national borders. As a result, the manager’s
job has changed. They need to have a broader perspective when making decisions.
Managing workplace diversity-the concept that organizations are becoming more

heterogeneous in terms of gender, age, race, ethnicity, sexual orientation, and inclusion of other
diverse groups.
• Diversity poses great opportunities and challenging questions for managers and
employees in all countries. Managers must recognize differences and find ways to
utilize those differences to improve organizational performance.
As the borders are disappearing, we are seeing more and more heterogeneity in the workplace.
Managers today need to embrace diversity and find ways to manage it effectively. The changing
demographics have shifted management philosophy in a way that recognizes and utilizes
differences to create productivity, profitability, and welcoming cultures.

Improving customer service- Most workers in developed nations will work in service-oriented
jobs. It is critical to organizational success that workers improve their customer service and
people skills.
• Service oriented jobs– tech support reps, fast food counter workers, sales clerks,
waiter and waitresses, nurses, automobile repair tech, consultants, credit reps,
financial planners and flight attendants.
• Management create a customer-responsive culture. – employees are friendly and
courteous, accessible, knowledgeable, prompt in responding to customer needs, and
willing to do what’s necessary to please the customer.
Patagonia’s sample retail philosophy: “Our store is a place where the word “no” does not exist.”
– staff to use best judgment.
Improving people skills

• People Skills– learn ways to design motivating jobs, techniques for improving your
listening skills, and how to create more effective teams.
Stimulating Innovation and Change-The challenge for managers is to stimulate their

employees’ creativity and tolerance for change. Success will be attained if organizations
maintain their flexibility, continually improve their quality and beat their competition to the
marketplace with a constant stream of innovative products and services.
• Domino’s pizza – single-handedly

• Amazon.com – independent bookstore
• Boeing – change business model
Coping with Temporariness- Globalization, expanded capacity and advances in technology

have required organizations to be fast and flexible if they are to survive. Worker must continually
update their knowledge and skills to perform new job requirements.
Working in networked organizations- As technology continues to become an integral part of
organizational effectiveness, workers will find that their communication styles and needs will
change as well. Managers must stay on top of what is needed to motivate workers in this
environment.
• Communication of employees even though they may be miles apart.

• Work from home / non-office locations.
Enhancing employee well-being at work- Recent studies suggest that employee want jobs
that give them flexibility in their work schedule so they can better manage work-life conflicts.
Most college and University students say attaining a balance between personal life and work is
a Primary Career Goal: they want a “LIFE” as well as a “JOB”. Organizations that don’t help
their people achieve work-life balance will find it increasingly difficult to attract and retain the
most
capable and motivated employees.
Creating a positive work environment- Positive organizational behavior is a growing interest

in organizational behavior. It promotes the idea of exploiting employee strengths rather than
focusing on employee limitations or weaknesses.

Improving ethical behavior- Managers facing ethical dilemmas or ethical choices are required
to identify right and wrong conduct. This can be difficult in a global economy where different
cultures approach decisions from different perspectives.
Companies promoting strong ethical missions:
• Encourage employees to behave with integrity. Provide strong leadership that influence
employee decisions to behave ethically
❖ Three Levels of OB Analysis
In Organizational Behavior (OB) we utilize the

representation of the world as broken down into three
levels. The first level of analysis we will look at is the
Individual level. At this level we look at individuals’
behavior. Next, recognizing that individuals make up
groups, we analyze how group behavior occurs.
Finally, organizations are made up of groups of
individuals, so we analyze the organization at a
systems level.
IV. ACTIVITIES / EXERCISES
I.Discuss a current event that was influenced by, or could have been positively influenced by
a clear understanding of OB. Prepare an essay that concisely describes that current
event and what you believe to be the impact of OB.
II.Choose an organization either local or abroad that you admire. Briefly describe your chosen
organization, discussing what goods or services are produced, how many employees it
has, what the structure looks like, and a general overview of how the organization of
study is managed. Explain why you chose that organization.
Answer in an essay format.
What do you hope to gain from the study of OB? How well do you think you currently
understand human behavior in organizations? Have you ever been surprised by the actions or
reactions of another person? Why? Describe what actually happened and what you were
expecting to happen. What do you think may have caused the difference?
V. ASSESSMENT
MODIFIED TRUE OR FALSE

_________________1. There are 10 Challenges and Opportunities in OB.
_________________2. Psychology, Social Psychology, Psychology and Anthropology are the
Contributing Disciplines to OB.
_________________3. In the late 1960’s, Henry Mintzberg, he concluded 10 different
interrelated roles or sets of behaviors which was categorized into 3: Interpersonal, Informational,
and Decisional.
_________________4. Sociology, studies people in relation to their social environment or
culture. _________________5. French industrialist Henri Fayol: All managers perform 5
management functions that presently condensed into 4 namely; Planning, Organizing,
Commanding, and

Controlling. individuals, groups, and structure
MULTIPLE CHOICE 2) Which of the following is not a core topic

of organizational behavior? A) motivation
1) What are the three primary determinants B) attitude development
of behavior in organizations? C) conflict
A) profit structure, organizational D) resource allocation
complexity, and job satisfaction E) work design
B) individuals, profit structure, and job
satisfaction 3) Until the late 1980s, business school
C) individuals, groups, and job satisfaction curricula emphasized the ________ aspects
D) groups, structure, and profit structure E) of management.
A) ethical
B) people 7) Which of the following is not a topic or
C) technical concern related to OB? A) turnover B)
D) human leader behavior
E) global C) productivity
D) management
4) Which of the following is not a reason why E) family behavior
business schools have begun to include
classes on organizational behavior? A) to 8) In order to predict human behavior, it is
increase manager effectiveness in best to supplement your intuitive opinions
organizations with information derived in what fashion? A)
B) to help organizations attract top quality common sense
employees B) direct observation
C) to expand organizations' consulting C) systematic study
needs D) speculation
D) to improve retention of quality workers E) organizational theory
E) to help increase organizations' profits
9) Arianna believes that it is best to take the
5) There is a connection between casual or common-sense approach to
companies which have ________ and the reading others. She needs to remember that
incorporation of organizational behavior ________.
principles. A) high turnover rates
B) specialized technical processes A) the casual approach is nonsensical, and
C) superior financial performance should be avoided as much as possible B)
D) long-lasting CEO's the systematic approach and the casual
E) all of the above approach are one and the same
C) laboratory experiments on human
6) ________ is the study of the impact that behavior often result in unreliable findings D)
individuals, groups, and structure have on the casual or common-sense approach to
behavior within organizations. A) Leadership reading others can often lead to erroneous
B) Organizational strategy predictions
C) Performance management E) behavior is unpredictable, hence there is
D) Employee relations no accurate way to analyze it
E) Organizational behavior

10) Which of the following explains the VI. SUMMARY
usefulness of the systematic approach to the C) Human behavior is not consistent. D)
study of organizational behavior? Human behavior is rarely predictable. E)
A) Human behavior does not vary a great Human behavior is often not sensible.
deal between individuals and situations. B)
Human behavior is not random.
1. Managers need to develop their interpersonal, or people, skills to be effective in their
jobs.
2. Organizational behavior (OB) investigates the impact that individuals, groups, and
structure have on behavior within an organization, and it applies that knowledge to
make organizations work more effectively.
3. Here are a few specific implications for managers:
• Resist the inclination to rely on generalizations; some provide valid insights into human
behavior, but many are erroneous.
• Use metrics and situational variables rather than hunches to explain cause-and-effect
relationships.
• Work on your interpersonal skills to increase your leadership potential. • Improve your
technical and conceptual skills through training and staying current with organizational
trends like big data.
• Organizational behavior can improve your employees’ work quality and productivity by
showing you how to empower your employees, design and implement change programs,
improve customer service, and address the work-life balance conflict. 4. OB’s goal is to
understand and predict human behavior in organizations.
Chapter 2: Diversity in Organizations
I. LEARNING OBJECTIVES / OUTCOME
After studying this chapter, you should be able to:

1. Understand the two major forms of workforce diversity and give examples of how
workplace discrimination undermines diversity effectiveness.
2. Explain the key biographical characteristics and describe how they are relevant to OB.
3. Understand intellectual ability and demonstrate its relevance to OB.
4. Know the difference between intellectual and physical ability.
5. Understand how organizations manage diversity effectively.
6. Show how culture affects our understanding of biographical characteristics and intellectual
abilities
II. INTRODUCTION
In this chapter, we look at the two major forms of workforce diversity, identify the key biological
characteristics, and describe their relevance to OB, define intellectual capability and explore
its relevance in OB, and discuss how to manage a diverse workforce effectively.

III. LESSON PROPER
The demographics of the U.S. workforce has changed over the last thirty-plus years.
Today’s workforce is not only more ethnically and racially diverse, it also includes more women
and older workers. Wage gaps persist across genders and racial and ethnic groups; however,
the gaps have begun to shrink.
Levels of Diversity ✔ Surface-level diversity - differences in age, race, gender, etc... Less
significant over time ✔ Deep-level diversity - differences in personality and values. More
important in the long run
❖ DISCRIMINATION
Discrimination is one of the primary factors that prevent diversity, whether the
discrimination is overt or covert. Recognizing diversity opportunities can lead to an effective
diversity management program and ultimately to a better organization. To discriminate is to note
a difference between things. While this in and of itself isn’t a bad thing, when we talk about
discrimination, we’re usually referring to stereotypes about groups of people and assumptions
that everyone in a group is the same. This type of discrimination can be harmful to organizations
and employees.
❖ BIOGRAPHICAL CHARACTERISTICS
1. Age
The relationship between age and performance is important because:
a. The workforce is aging
b. Mandatory retirement is outlawed
PHILS:
✔ Military personnel must leave the service on reaching 56 years of age. ... ✔
Under the Philippine Labor Code, the default mandatory retirement age is at least 60
years but not over 65 years old
2. Gender
Do women perform as well on the job as men?
Few, if any, important differences, but:
✔ Women in male domains are perceived as less likeable, more
hostile, and less desirable as supervisors

✔ Women are less likely to be assigned challenging positons ✔
Women often earn less than men in the same position ✔ Women
face maternal wall bias
3. Race and Ethnicity
U.S. Census Bureau:
a. Recognizes 7 racial groups
b. Distinguishes between native English speakers and Hispanics Research
shows that:
✔ Individuals slightly favor colleagues of their own race in performance evaluations,
promotion decisions, and pay raises
✔ Racial and ethnic minorities report higher levels of discrimination in the workplace
✔ African Americans tend to fare worse than Whites in employment decisions ✔
Some industries are less racially diverse than others
4. Disability
Americans with Disabilities Act ✔ requires employers to make reasonable
accommodations for people with physical or mental disabilities
Philippines – Magna Carta for the Disabled ✔ No disabled persons shall be denied
access to opportunities for suitable employment. ✔ A qualified disabled employee
shall be subject to the same terms and conditions of employment and the same
compensation, privileges, benefits, fringe benefits, incentives or allowances as a
qualified able-bodied person
5. Other Biographical Characteristics
(1) Tenure expressed as work experience is a good predictor of employee productivity. Seniority
is negatively related to absenteeism. In addition, the longer an individual has been in a job, the
less likely the individual is to quit. Tenure and job satisfaction is positively related.
U.S. law prohibits employers from discriminating against employees based on their (2) religion.
Even so, religion is still an issue in OB, especially when it comes to Islam. Evidence shows that
people are discriminated against for their Islamic faith.
Muslims are not respectful of women.
Many Christians believe they do not need to work on Sundays.
Also, conservative Jews believe they should not work on Saturdays. (7th day Adventist)
Religious individuals also believe they have an obligation to express their beliefs in the
workplace.
(3) Sexual Orientation is an inherent or immutable enduring emotional, romantic or sexual

attraction to other people. While federal law does not prohibit discrimination against employees
based on sexual orientation, many organizations have implemented their own policies protecting
employees on the basis of sexual orientation. In addition, many states and municipalities also
have laws to protect employees based on their sexual orientation.
(4) Transgender - An umbrella term for people whose gender identity and/or expression is
different from cultural expectations based on the sex they were assigned at birth. Being
transgender does not imply any specific sexual orientation. Therefore, transgender people may
identify as straight, gay, lesbian, bisexual, etc.) Companies are also beginning to establish
policies

regarding transgender employees. Today’s global companies do well to understand and respect
the cultural identities of their employees, both as groups and as individuals.
The assigned sex and gender do not match the person's (5) gender identity -One's innermost
concept of self as male, female, a blend of both or neither – how individuals perceive
themselves and what they call themselves. One's gender identity can be the same or different
from their sex assigned at birth.
A company seeking to be sensitive to the (6) cultural identities of its employees should look
beyond accommodating its majority groups and instead create as much of an individualized
approach to practices and norms as possible.
An act prohibiting discrimination on the basis of ethnicity, race, religion or belief, sex,
gender, sexual orientation, gender identity, gender expression, civil status and hiv status
Pending in the Committee (11/27/2017)
SOGIE Equality Act in the Lower House on its third and final reading (9/20/2017)
❖ ABILITY
An individual’s current capacity to
perform the various tasks in a job
✔ Intellectual abilities: Abilities
needed to perform mental
activities
✔ Physical Abilities– the

capacity to do tasks that demand
stamina, dexterity (skill, agility),
and strength, and similar
characteristics. Research on
hundreds of jobs has identified
nine basic abilities needed in the
performance of physical tasks.
Individuals differ in the extent to
which they have each of these
abilities.
❖ Implementing Diversity
Management Strategies
Diversity management: Makes
everyone more aware of and
sensitive to the needs and
differences of others.
❖ Attracting, Selecting, Developing, and Retaining Diverse Employees To enhance

workforce diversity, organizations should target underrepresented groups through ads in
publications geared toward certain demographic groups, recruiting at universities and colleges
with significant members of minorities, and forming partnerships with associations that
represent women and minorities.
Organizations should also take care to ensure that hiring decisions are bias free, and that
career advancement decisions are fair and objective. Research shows that individuals who
share personality traits with their co-workers are more likely to be promoted, but that in
collectivist societies, similarity to supervisors is very important to career advancement, while in
individualistic cultures similarity to peers is more important.
Studies also show that a positive diversity climate is related to organizational commitment
(The degree of loyalty an individual feel toward the organization) and lower turnover intentions
among African American, Hispanic, and White managers.
❖ `Diversity in Groups
Does diversity help or hurt group performance? The answer is both– it depends on the
characteristic of interest. Diversity in some traits can hurt team performance, but in other cases
can facilitate it.
✔ Leverage differences for superior performance – The most important way is to

emphasize the higher-level similarities among members. It means that groups of
diverse individuals will be much more effective if leaders can show how members can
have a common interest in the group’s success.
✔ Transformational leaders are those who emphasize higher-order goals and values
in their leadership style are more effective at managing diverse teams.
❖ Effective Diversity Programs

Have Three distinct components.
✔ Teach managers about the legal framework for equal employment opportunity and
encourage fair treatment of all people regardless of their demographic
characteristics
✔ Teach managers how a diverse workforce will be better able to serve a diverse
group of customers and clients
✔ Foster personal development practices that bring out the skills and abilities of all
workers
1. Self-analysis. What is your position on diversity in the workplace? How would you describe
your attitude toward diversity? Be detailed in your analysis.
2. Web Crawling. Find and present an online article on diversity in a country other than the
United States. What commonalities are exposed and what differences are shown to exist?
V. ASSESSMENT
FILL IN THE BLANKS
1. Levels of Diversity
• _____________________________
• DEEP-LEVEL DIVERSITY
2. ______________________________
• DISCRIMINATORY POLICIES OR PRACTICIES
• _____________________________
• _____________________________
• MOCKERY AND INSULTS
• _____________________________
• _____________________________
3. Diversity in Groups
• LEVERAGE DIFF, FOR SUPERIOR PERFORMANCES
• ______________________________
4. ___________________________
• BIOGRAPHICAL CHARACTERISTICS
▪ AGE
▪ GENDER
▪ _______________________________
▪ _______________________________
VI. SUMMARY
• There are two Levels of Diversity (1) Surface-level diversity and (2) Deep-level diversity •
Discrimination is one of the primary factors that prevent diversity, whether the discrimination
is overt or covert.
• There are 6 types of Discrimination (1) Discriminatory policies or practices (2) Sexual
Harassment (3) Intimidation (4) Mockery and Insults (5) Exclusion and (6) Incivility •
Biographical Characteristics covers Age, Gender, Race and Ethnicity and Disability • Other
biographical Characteristics covers tenure, religion, sexual orientation, transgender, gender
identity and cultural identities.
• Ability refers to an individual’s current capacity to perform the various tasks in a job •
It can be categorized as to Intellectual and Physical
• Diversity management means making everyone more aware of and sensitive to the needs
and differences of others.
• Having a Diverse population subjects the organization to an organization commitment and
lower turnover, done by Attracting, Selecting, Developing, and Retaining Diverse
Employees
• Diversity leverages differences for superior performance and Transformational Leaders
Chapter 3: Attitudes and Job Satisfaction
I. LEARNING OBJECTIVES / OUTCOME

1. Understand the three components of an attitude.
2. Learn the relationship between attitudes and behavior.
3. Compare and contrast the major job attitudes.
4. Understand job satisfaction and show how we can measure it.
5. Summarize the main causes of job satisfaction.
6. Learn four employee responses to dissatisfaction.
7. Learn that job satisfaction is a relevant concept.
II. INTRODUCTION
In this chapter, we look at attitudes, their link to behavior, and how employees’
satisfaction or dissatisfaction with their jobs affects the workplace.
III. LESSON PROPER
Attitude VS Behavior
Attitude is comparatively enduring organization of beliefs, feelings, and behavioral tendencies
towards socially important objects, groups, events or symbols" (Hogg & Vaughan 2005) while
Behavior is a manifestation or acting out of the attitudes an individual has.
SALOOBIN PAG-UUGALI
Attitude = a settled way of thinking or feeling Behavior = the way in which one acts or
about someone or something, typically one that conducts oneself, especially toward others.
is reflected in a person's behavior. "good behavior“
synonyms:
view, viewpoint, outlook, perspective, stance, st synonyms: conduct,
andpoint, position, inclination, temper, orientati deportment, bearing, actions, doings;
on, approach, reaction;
Note: VALUES are usually nouns, while VIRTUES are adjectives that describe positive and
desirable qualities which usually mirror a value it represents
VALUES are usually reflected through these VIRTUES, which in turn become eminent in the
attitude and behavior of a person.
to respond positively or negatively towards
VALUES VIRTUES a certain idea, object, person, or situation.
Attitude influences an individual's choice of
LOVE Loving, caring,
ATTITUDE is a predisposition or a tendency
stimuli).
compassionate, gentle,
affectionate action, and responses to
challenges, incentives, and There are three components
RESPECT Respectful, civil or structure
rewards (together called
example: “I believe
INTEGRITY Reputable, responsible,
spiders are dangerous”.
believable, honest, trustworthy
of attitudes Affective, Behavioral and
BALANCE Fair, objective, harmonious Cognitive or also known as the ABC
Model of Attitude.
PEACE Peaceful, calm
Affective Component this involves a

person’s feelings / emotions about the
attitude object. For example: “I am scared
of spiders”.
Behavioral Component the way the

attitude we have influences on how we act
or behave. For example: “I will avoid
spiders and scream if I see one”.
Cognitive Component this
involves a person’s belief /
knowledge about an attitude
object. For
Moving forward with the lecture, in this part of the module you are to analyze the
relationship between attitudes and behavior. Supporting theory and phenomenon will be
discussed such as Theory of Planned Behavior and to further elaborate the significance of the
two to one another.
Attitudes Follow Behavior
Theory of Planned Behavior

The theory of planned behavior is a theory used to understand and predict behaviors, which
posits that behaviors are immediately determined by behavioral intentions and under certain
circumstances, perceived behavioral control. Behavioral intentions are determined by a
combination of three factors: attitudes toward the behavior, subjective norms, and perceived
behavioral control.
Given a situation of wanting to become the employee of the month, so you started surfing the
internet about the tips and needed skill. You may talk to your friends about their

recommendations. You may attend some seminars to enhance your skill or being punctual at
work. You may do all of this and at some point, and be the employee of the month you desire. In
this situation how can
we apply the theory? Look at the photo on the
right.
What the theory now predicts is that positive

attitude towards the act or behavior, favorable
social norms, and a high level of perceived
behavioral control are the best predictors
performing a behavioral intention turned into a
display of behavior or act.
Behavior
Follows Attitudes Foot in the Door
Phenomena assumes
agreeing to a small request increases the
likelihood of agreeing to a second, larger request. The foot-in-the-door technique works on the
principle of consistency. This means that as long as the request in consistent with or similar in
nature to the original small request, the technique will work.
For example, in employment, your co-worker asks you to photocopy a document for him/her just
for today and you said yes. A week later, the same co-worker asked you to photocopy
documents for your department and you agreed.
Summarize the relationship between attitudes
and behavior
Moderating Variables is the most powerful moderators of
the attitude-behavior relationships are:
✔ Importance of the attitude ✔ Correspondence to behavior ✔
Accessibility of the attitude ✔ Social pressures ✔ Direct personal
experience ✔ Knowing attitudes helps predict behavior
Cognitive Dissonance
is any inconsistency between two or more attitudes,
or between behavior and attitudes. Individuals seek
to minimize dissonance
Desire to reduce dissonance is determined
by:
✔ The importance of the elements creating
the dissonance ✔ The degree of influence the
individual believes he or she has over the elements
✔ The rewards that may be involved in
dissonance
Cognitive dissonance is experienced on an immense

scale in a work environment. One example would be when a supervisor tells his junior that he
needs to get an almost impossible task done pronto, or he’ll basically be replaced by some other
subordinate. The worker now is caught between two thoughts― he has an impossible task to
finish instantly, which he knows he cannot, or let the supervisor replace him with his co-worker,
which would mean accepting that the co-worker is better than him. This psychological
restlessness is cognitive dissonance. The worker now either will change his original belief about
the difficulty level of the task and try it or will stick to his belief and let himself get replaced by his
co-worker to reduce the psychological discomfort.
Compare and contrast the major job attitudes Major Job Attitudes
Job Satisfaction - Is the attitude of content an employee possesses in his or her current
position in an organization
Job Involvement - Identifying with the job, actively participating in it, and considering
performance important to self-worth.
Psychological Empowerment - “intrinsic task motivation reflecting a sense of selfcontrol
in relation to one’s work and an active involvement with one’s work role”
Organizational Commitment – an individual's psychological bond to the organization,
including a sense of job involvement, loyalty and belief in the values of the organization
Affective commitment - Refers to one’s

feelings of loyalty to a company or
organization because he or she believes in
the organization. They typically identify with
the organizational goals, feel that they fit into
the organization and are satisfied with their
work. Employees who are affectively
committed feel valued, act as ambassadors
for their organization and are generally great
assets for organizations.
Continuance commitment - an employee that has already

vested many years in a company building up years of leave,
employee benefits (such as pension) and salary. If the
employee were to leave to the company, he/she may lose the
time vested, as well as seniority and pension loss. When
employees feel the need to stay with their organization because
their salary and fringe benefits won’t improve if they move to
another organization. Such examples can become an issue for
organizations as employees that are continuance committed
may become dissatisfied (and disengaged) with their work and
yet, are unwilling to leave the organization.
Normative commitment - an employee may feel a sense of
obligation to stay with their employer during its time of need
even though it is no longer advantageous to do so. They may
fear the potential disappointment in their employer or teammates.
Perceived Organizational Support - discusses the employees’ perception

concerning the degree to which the organization values their involvement and cares

about their well-being. POS has been found to have important significances to
employee performance and well-being.
Employee Engagement - notion that employee engagement is a desirable condition,

has an organizational purpose, and connotes involvement, commitment, passion,
enthusiasm, focused effort, and energy, so it has both attitudinal and behavioral
components
Defining Job satisfaction and show how we can measure it
For this lecture you are to gain knowledge on the key elements in measuring of job satisfaction.
So why do employees need to be satisfied? According to the article Why Job satisfaction is an
Important Phenomenon of the Vicious Circle? a satisfied employee helps promote the
organization’s brand internally and externally. Employees are more loyal to the organization’s
objective and put an extra mile in achieving goals.
Let us first define what is Job Satisfaction
Job satisfaction: a positive feeling about a job resulting from an evaluation of its
characteristics. Measuring job
satisfaction:
■ Single global rating method- the

single,
global rating method is nothing
more
than asking individuals to respond to
one question such as; all things
considered, how satisfied are you with
your job?
• Only a few general questions

• Remarkably accurate
■ Summation score method- It identifies key elements in a job and asks for the employee’s
feelings about each, nature of the work, supervision, present pay, promotion opportunities,
and relation with co-workers.
• Identifies key elements in the job and asks for specific feeling about them

Average Job Satisfaction by Facets
Job Satisfaction by Country Main
causes of Job Satisfaction What
Causes Job Satisfaction?
✔ The Work Itself – the

strongest correlation with overall
satisfaction
✔ Social Component – there is
a strong correlation with how people
view the social context of their work
✔ Pay – not correlated after
individual reaches a
level of
comfortable living
✔ Personality – positive core
self-evaluations and negative core
self-evaluations.
Identifying four employee responses to dissatisfaction
The Consequences of Dissatisfaction

When employees are dissatisfied with their jobs, they have four basic responses they
can utilize. These options are divided into active and passive choices.
The active options are exit and voice:

✔ If employees select to exit, they choose to leave or move in a direction of leaving the
organization.
✔ In voice, the employees will work toward active and constructive attempts to improve
conditions.
The passive options are neglect and loyalty:
✔ Employees may choose to neglect their work and just allow conditions to worsen,
✔ Or they may choose to remain loyal to the organization and just wait for change.
The Benefits of Satisfaction

✔ Better job and organizational performance
✔ Better organizational citizenship behaviors
• (OCB – Discretionary behaviors that contribute to organizational
effectiveness but are not part of employees’ formal job description)
✔ Greater levels of customer satisfaction
✔ Generally lower absenteeism and turnover
✔ Decreased instances of workplace deviance
Relevant concept of Job Satisfaction in countries other than the United States Are
Employees in Western Cultures More Satisfied with Their Jobs?
✔ Evidence suggests employees in Western cultures have higher levels of job
satisfaction than those in Eastern cultures. The report included 23 countries and the
result appear the highest levels appear in the US and Western Europe.

✔ Eastern individuals find negative emotions less aversive more than do individuals in
Western cultures, who tend to emphasize positive emotions and individual happiness
IV. ACTIVITY / EXERCISES
Let’s see how the three components and see how these three works together. I have
written down an example on the left in showing how cognition, affect and behavior are closely
related. Now it’s your turn to reflect on the three components, you may write it in the figures
provided below.
V. ASSESSMENT
Answer the following:
1. A settled way of thinking or feeling about someone or something, typically one that is
reflected in a person's behavior.
2. A manifestation or acting out of the attitudes an individual has.
3. Any inconsistency between two or more attitudes, or between behavior and attitudes.
4. A positive feeling about a job resulting from an evaluation of its characteristics. 5. The
attitude of content an employee possesses in his or her current position in an
organization.
6. Is the strongest correlation with overall satisfaction.
7. Is the sense of obligation to stay with their employer during its time of need even
though it is no longer advantageous to do so.
8. Refers to one’s feelings of loyalty to a company or organization because he or she
believes in the organization.
9. Identifying with the job, actively participating in it, and considering performance
important to self-worth
10. An individual's psychological bond to the organization, including a sense of job
involvement, loyalty and belief in the values of the organization.
VI. SUMMARY

Implications for Managers
✔ Pay attention to your employees’ job satisfaction levels as determinants of their
performance, turnover, absenteeism, and withdrawal behaviors.
✔ Measure employee job attitudes objectively and at regular intervals in order to
determine how employees are reacting to their work.
✔ To raise employee satisfaction, evaluate the fit between the employee’s work interests
and the intrinsic parts of the job to create work that is challenging and interesting to
the individual.
✔ Consider the fact that high pay alone is unlikely to create a satisfying work
environment.
Keep in Mind…
✔ Individuals have many kinds of attitudes about their job
✔ Most employees are satisfied with their jobs, but when they are not, a host of actions
in response to the satisfaction might be expected
✔ Job satisfaction is related to organizational effectiveness
Chapter 4: Emotions & Moods at Work

1. Understand the difference between emotions and moods
2. Learn that emotions are rational and what functions they serve.
3. Know the sources of emotions and moods.
4. Know the impact emotional labor has on employees.
5. Learn the affective events theory and identify its applications.
6. Know the evidence for and against the existence of emotional intelligence.
7. Apply concepts about emotions and moods to specific OB issues.
8. Contrast the experience, interpretation, and expression of emotions across cultures
II. INRODUCTION
This chapter examines the effect of moods and emotions on the workplace. Humans are
emotional creatures, and to ignore this fact during work hours is inappropriate in the study of
organizational behavior. This chapter examines the causes of, and influences on, emotion.
Emotional intelligence is explored, as are the various ways emotions play out in the work
environment.
III. LESSON PROPER
Why Were Emotions Excluded from OB Study?
Historically the study of organizational behavior has not given much attention
(detrimentalunfavorable/avoided) to emotions. Emotions were typically seen as irrational, so
managers tended to work to make the workplace emotion-free.

Often managers viewed emotions as disruptive to the workplace and therefore a
hindrance to productivity. However, when thinking about emotions, typically managers were
focusing on negative emotions. Even though there are some negative emotions that could
hinder productivity, there is no doubt that workers bring their emotions to the workplace.
Therefore, any study in organizational behavior would not be complete without considering the
roles of emotions in the workplace.
Affect, Emotions, and Moods
❖ Affect is a generic term that

covers a
broad range of feelings people
experience. This includes both
emotions and moods. ❖ Emotions
are intense feelings that are directed
at someone or something.
❖ Moods are the feelings that tend to be
less intense than emotions and that
lack a contextual stimulus.
Affect is the various emotional experiences such as emotions, moods and affective traits.
This is the emotion we express externally: can be a tone of voice, smile, frown or any facial
expression or body movements that indicates emotion.
Emotion
From the Latin verb “movare” means to move or be upset or agitated. Defined by
Smith (1973) referring to variations in level of arousal, affective state or mood, expressive
movements and attitudes.
As the brain releases neurotransmitters like dopamine and oxytocin, these activates
your emotions neurologically
• Neurotransmitter – a substance in the body that carries a signal from 1 nerve cell to
another.
• Dopamine – a monoamine that is a decarboxylated form of dopa and that occurs
especially as a neurotransmitter in the brain
• Oxytocin- a pituitary octapeptide hormone that stimulates esp. the contraction of
uterine muscle and secretion of milk
The
Basic Emotions
Six universal emotions ✔
Anger ✔ Fear ✔
Sadness ✔ Happiness
✔ Disgust
✔ Surprise
Are feelings and emotions the same?

According to him, Dr. Antonio R. Damasio (2005) Neurologist, feeling arises from the brain
as it interprets an emotion, which is usually caused by physical sensations experienced by
the body as a reaction to a certain external stimulus (event).
An example of this would be the emotion of being afraid, which produces a feeling of
fear The Basic Moods:
Positive affect: a mood dimension consisting of positive emotions such as

excitement, enthusiasm, and cheerfulness at the high end (high positive affect) and
boredom, sluggishness, and tiredness at the low end (low positive affect)
Negative affect: a mood dimension consisting of nervousness, stress, and anxiety at

the high end (high negative affect) and relaxation, tranquility and serenity at the low end (low
negative affect)
Experiencing Moods and Emotions
Positive moods are somewhat more common than negative moods
Positivity offset: at zero input, (when nothing in particular is going on) most people
experience a mildly positive mood
The Function of Emotions and Moods
✔ Emotions and Rationality

• Emotions are critical to rational thought: they help us understand the world
around us
✔ Emotions and Ethics
• New research suggests that ethical behavior may be based to some degree
on emotions and feelings
Strong
emotion
The person’s physical responses including faster

heartbeat, profuse sweating and dilation of eye
pupils,
higher blood pressure, and muscular tremors affecting the
nervous system in general.
Sources of Emotions and Moods
✔ Personality - Some people experience certain moods and emotions more frequently
than others. Affect intensity: experiencing the same emotions with different intensities
✔ Time of day- People vary in their moods by time of day

Time-of-Day Effects on Moods of U.S.
Adults as Rated from Twitter Postings
✔ Day of the week- People tend to be in their best mood on the weekend
Day-of-Week Mood Effects across Four Cultures
✔ Weather- No impact according to research

✔ Stress- Increased stress worsens moods
✔ Social Activities- Physical (hiking), informal (night party), and epicurean activities
(eat out with friends) increase positive mood
✔ Sleep- Lack of sleep increases negative emotions and impairs decision making
✔ Exercise - Mildly enhances positive mood
✔ Age- Older people experience negative emotions less frequently
✔ Gender - Women show greater emotional expression, experience emotions more
intensely, and display more frequent expressions of emotions. Could be due to
socialization
❖ Emotional labor: an employee’s expression of organizationally desired emotions

during interpersonal transactions at work
❖ Emotional dissonance: when an employee has to project one emotion while
simultaneously feeling another (inconsistencies between the emotions people feel
and the emotions they project)
Felt vs. Displayed Emotions
❖ Felt Emotions: The individual’s actual emotions.
❖ Displayed Emotions: The learned emotions that the organization requires workers to
show and considers appropriate in a given job
• Surface Acting - hiding one’s true emotions. Deals with displayed emotions. • Deep
Acting- trying to change one’s feelings based on display rules. Deals with felt
emotions.
Affective Events Theory
Affective Events Theory (AET) demonstrates that employees react emotionally to

things that happen to them at work, and this reaction influences their job performance and
satisfaction. This provides us with valuable insights into the role emotions play in primary
organizational outcomes of job satisfaction and job performance. The theory begins by
recognizing that emotions are a response to an event in the work environment.
The figure below is the framework of Affective Events Theory (AET):
This environment creates WORK EVENTS

that can be hassles or uplifting events or
both.
Ex. of hassles: colleagues who refuse to

carry their share of work; conflicting directions
from managers; and excessive time
pressures.
Ex. of uplifting events: meeting a goal, getting support from a colleague, and receiving
recognition for an accomplishment
Work events trigger positive or negative emotional reactions, to which employees’

personalities and moods predispose (influence) them to respond with greater or lesser
intensity.
Emotions influence performance and satisfaction variables such as organizational citizenship

behavior, organizational commitment, level of effort, intention to quit, and workplace
deviance.
Example scenario: Lay-off news in your company that may possibly include you. Fear,
insecurity and anxiety will affect performance and satisfaction.
Emotional Intelligence (EI)

Emotional Intelligence (otherwise known as emotional quotient or EQ) is the ability to
understand, use, and manage your own emotions in positive ways to relieve stress,
communicate effectively, empathize with others, overcome challenges and diffuse conflict.
Emotional Intelligence helps you build stronger relationships, succeed at school and work, and
achieve your career and personal goals. Individuals who are emotionally intelligent will have a
strong sense of self-awareness, recognizing their own emotions when experienced. By
understanding their own emotions and those of others, they can manage emotional cues and
information to make decisions. It can also help you connect with your feelings, turn intention
into action, and make informed decisions about what matters most to you.
OB Applications of Emotions and Moods
✔ Selection – Employers should consider EI a factor in hiring for jobs that demand
a high degree of social interaction.
✔ Decision Making – Positive emotions can increase problem-solving skills and
help us understand and analyze new information
✔ Creativity – Positive moods and feedback may increase creativity
✔ Motivation – Promoting positive moods may give a more motivated workforce
✔ Leadership – Emotions help convey messages more effectively
✔ Negotiation – Emotions may impair negotiator performance
✔ Customer Service – Customers “catch” emotions from employees, called
emotional contagion
✔ Job Attitudes – Emotions at work get carried home but rarely carry over to the
next day
✔ Deviant Workplace Behaviors – Those who feel negative emotions are more
likely to engage in deviant behavior at work
✔ Safety and Injury at Work – Bad moods can contribute to injuries on the job
How Managers can influence Moods?

• Managers can use humor and give their employees small tokens of appreciation
for work well done.
• When leaders are in good moods, group members are more positive, and as a
result they cooperate too.
• Selecting positive team members can have a contagion effect as positive moods
transmit from team member to team member.
Experience, Interpretation, and Expression of Emotions Across Culture
Emotions vary across culture. People in most cultures appear to experience certain positive
and negative emotions but the frequency and intensity varies in some degrees. People from all
over the world interpret negative and positive emotions in much the same way. Though, it is
easier for people to accurately recognize emotions within their own culture than in others. Thus,
cultural factors influence what manager’s think is emotionally appropriate. Managers need to
know the emotional norms in each culture they do business in or they don’t send unintended
signals or misread the reactions of others.

Activity
1. Observe your own mood using the below table/format, wherein 10 is the most positive and
1 is the least:
2. Identify if surface (Carlos) or deep (Girlie) acting (10)
a. Joseph offered help to Nathan though he’s not familiar with his work. (deep) b. Dina
congratulated Ted when he got the promotion, they both applied in. (deep) 3. Give a
personal experience wherein you felt you had applied a high level of emotional intelligence.
4. Search the internet for actual cases involving affect (mood or emotion)
1
0
9
8765432 1
V. ASSESSMENT
1. Describe the three major emotional terms. How are they related and how do they differ?
2. List the basic emotions along a continuum. What are the difficulties of using this continuum?
3. Of the eight sources of emotions and moods identified in your text, which do you feel is the
most critical and why?
4. What are the sources of stress and emotional labor for employees?
5. How valid do you consider the concept of emotional intelligence to be? Rationalize your
answer.
6. Consider the impact of emotions on customer service. What is the effect of emotions and
moods on customer satisfaction, and how does the concept of emotional contagion enter into
this?
7. Are emotions universal? Why or why not? Give examples in your answer.
VI. SUMMARY

✔ Recognize that emotions are a natural part of the workplace and good management does
not mean creating an emotion-free environment
✔ To foster creative decision making, creativity, and motivation in employees, model positive
emotions and moods as much as is authentically possible

✔ In the service sector, encourage positive displays of emotion, which make customers feel
more positive and thus improve customer service interactions and negotiations ✔ Managers
who understand the role of emotions and moods will significantly improve their ability to
explain and predict their coworkers’ and employees’ behavior
Chapter 5: Personality and Values

1. Learn personality, describe how it is measured, and explain the factors that determine
an individual’s personality.
2. Know the key traits in the Big Five personality model.
3. Understand how the Big Five traits predict behavior at work.
4. Know the Myers-Briggs Type Indicator (MBTI) personality framework and assess its
strengths and weaknesses.
5. Learn other personality traits relevant to OB.
6. Know values, demonstrate the importance of values
7. Understand generational differences in values and identify the dominant values in
today’s workforce.
II. INTRODUCTION
Personality and values are major shapers of behavior. In order for managers to predict
behavior, they must know the personalities of those who work for them. The chapter starts out
with a review of the research on personality and its relationship to behavior and ends by
describing how values shape many of our work-related behaviors.
III. LESSON PROPER

PERSONALITY
As June Peterson’s dilemma illustrates, different people behave differently in their everyday
lives. Personality, or personal style, is a very complex subject, yet in our daily lives we use trait
adjectives such as warm, aggressive, and easygoing to describe people’s behavior. Personality
is the word commonly used to describe an individual’s collection (total person) of such
behavioral traits or characteristics. Personal style or personality is a relatively stable set of traits
that aids in explaining and predicting individual behavior. As noted, individuals are all different,
yet similar, in many ways.
In this section you will learn about personality and the personality classifications of Type A and
Type B; locus of control; the Big Five Model of Personality; and the MBTI. Throughout this
chapter and book, you will gain a better understanding of your personality traits, which will help
explain why you and others do the things you do (behavior). Employers are checking social
media sites, such as Facebook, to get a feel for job candidates’ personality.
Personality Development and Classification Methods

Why are some people outgoing and others shy, some loud and others quiet, some aggressive
and others passive? This list of behaviors is made up of individual traits. Traits are distinguishing
personal characteristics. Personality development is based on genetics and environmental
factors. The genes you received before you were born influence your personality traits. Your
family, friends, school, and work also influence your personality. In short, personality is the sum
of genetics and a lifetime of learning. Personality traits, however, can be changed, with work.
For example, people who are shy can become more outgoing.
Type A, Type B, and Locus of Control
Type A and Type B Personalities Let’s begin here with the simple two-dimensional method
Type A, Type B. A Type A personality is characterized as fast moving, hard driving, time
conscious, competitive, impatient, and preoccupied with work. Because a Type B personality is
the opposite of Type A, often it is called laid-back or easygoing.
The Big Five Model of Personality
Let’s begin by completing Self-Assessment Exercise 1-2 to determine your personality profile.
The purpose of the Big Five model is to reliably categorize most, if not all, of the traits that you
would use to describe someone. The model is organized into five dimensions, and each
dimension includes multiple traits. The Big Five Model of Personality categorizes traits into the
dimensions of surgency, agreeableness, adjustment, conscientiousness, and openness to
experience. The dimensions are listed and described below. Note, however, that the five
dimensions are sometimes published with slightly different descriptor names.
Surgency How strong is your desire to be a leader? The surgency personality dimension
includes leadership and extroversion traits. (1) People strong in leadership, more commonly
called dominance, personality traits want to be in charge. They are energetic, assertive, active,
and ambitious, with an interest in getting ahead and leading through competing and influencing.
The late Steve Jobs had a high surgency personality type. People weak in surgency want to be
followers, and they don’t like to compete or influence. (2) Extroversion is on a continuum
between being an extrovert and being an introvert. Extroverts are outgoing, sociable, and
gregarious, like to meet new people, and are willing to confront others, whereas introverts are
shy.
Agreeableness How important is having good relationships to you? Unlike the surgency
behavior trait of wanting to get ahead of others, the agreeableness personality dimension
includes traits related to getting along with people. Agreeable personality behavior is strong
when someone is called warm, easy-going, courteous, good-natured, cooperative, tolerant,
compassionate, friendly, and sociable; it is weak when someone is called cold, difficult,
uncompassionate, unfriendly, and unsociable. Strong agreeable personality types are sociable,
spend most of their time with other people, and have lots of friends.
Adjustment How emotionally stable are you? The adjustment personality dimension includes
traits related to emotional stability. Adjustment is on a continuum between being emotionally
stable and being emotionally unstable. Stability refers to self-control, calmness—good under
pressure, relaxed, secure, and positive—and a willingness to praise others. Being emotionally
unstable means being out of control—poor under pressure, nervous, insecure, moody,
depressed, angry, and negative and quick to criticize others. Bill Gates is said to be more in

control of his emotions than Steve Jobs, who was sometimes emotional. People with poor
adjustment are often called narcissists and tend to cause problems.
Conscientiousness How strong is your desire to be successful? The conscientiousness

personality dimension includes traits related to achievement. Conscientiousness is on a
continuum between being responsible and dependable and being irresponsible and
undependable. Other traits of high conscientiousness include persistence, credibility, conformity,
and organization. This trait is characterized as the willingness to work hard and put in extra time
and effort to accomplish goals to achieve success. Conscientiousness is a good predictor of job
success.
Openness to Experience How willing are you to change and try new things? The openness to
experience personality dimension includes traits related to being willing to change and try new
things. People strong in openness to experience are imaginative, intellectual, open-minded,
autonomous, and creative, they seek change, and they are willing to try new things, while those
who are weak in this dimension avoid change and new things.
Personality Profiles
Personality profiles identify individual strong and weak traits. Defining your personality can help
you find the right career. Students completing Self-Assessment Exercise 1-2 tend to have a
range of scores for the five dimensions. Review your personality profile. Do you have high
scores (strong traits) and low scores (weak traits) on some dimensions? Think about the people
you enjoy being with the most at school and work. Are their personalities similar to or different
from yours?
The Big Five Model of Personality Has Universal Applications Across Cultures
Studies have shown that people from Asian, Western European, Middle Eastern, Eastern
European, and North and South American cultures seem to exhibit the same five personality
dimensions. However, some cultures do place varying importance on different personality
dimensions. Overall, the best predictor of job success on a global basis is the conscientiousness
dimension.
Using Behavior That Matches the Big Five Personality Types
We need to be able to work well with people that have different personalities than ours. To
improve our human relations, it is helpful for us to adjust our behavior based on the other
person’s personality type, especially our bosses, because they evaluate our performance,
which affects our career. That subject is what this section is all about.
1. Determine Personality Type — First, we have to understand the personality types and
determine an individual’s personality profile. As you know, people are complex, and identifying a
person’s personality type is not always easy, especially when they are between the two ends of
the personality type continuum. However, understanding personality can help you understand
and predict behavior, human relations, and performance in a given situation.
2. Match Personality Type—Next, we select the behavior we will use to match the other
person’s personality type. How to deal with each personality type is presented below.

Surgency
Extroverts: They like to talk, so be talkative while showing an interest in them and talking
about things they are interested in. If you are not really talkative, ask them questions to get
them to do the talking.
Introverts: Take it slow. Be laid-back and don’t pressure them, but try to draw them out by
asking questions they can easily answer. Ask for ideas and opinions. Don’t worry about
moments of silence; introverts often like to think before they respond.
Agreeableness
Agreeable: They are easy to get along with, so be friendly and supportive of them.
However, remember that they don’t tend to disagree with you to your face, so don’t
assume that just because they don’t disagree with you, it means that they actually do
agree with you. Asking direct questions helps, and be sure to watch for nonverbal
behavior that does not match a verbal statement of “I agree with you.”
Disagreeable: Try not to do things that will get them upset, but don’t put up with
mistreatment; be assertive (you will learn how in Chapters). Be patient and tolerant,
because their behavior is sometimes defensive to keep them from being hurt, but inside,
they do want friends. So keep being friendly and trying to win them over.
Adjustment
Emotionally stable: They tend to be easy to get along with.
Emotionally unstable: They tend to be highly emotional and unpredictable, so try to be

calm yourself and keep them calm by being supportive while showing concern for them.
Also, follow the guidelines of dealing with disagreeable types. You will learn how to deal
with emotions and emotional people in Chapter 4.
Conscientiousness
Conscientious: They will come through for you, so don’t nag; be supportive and thank
them when the task is done.
Unconscientious: They tend to need prompting to complete tasks. Set clear deadlines
and follow up regularly; express appreciation for progress and task completion.
Open to Experience
Open: They like change and trying new things. Focus on sharing information, ideas, and
creative problem solving.
Closed: They don’t want change and tend to focus on the short-term without considering
how things will be better in the long-term if they change now. Focus on telling them what

they have to lose and how they will benefit from the change, and use facts and figures to
support the need for change. You will learn how to overcome resistance to change in other
chapters.
The Myers-Briggs Type Indicator (MBTI)
Our fourth, and most complex, personality classification method is the Myers-Briggs Type
Indicator (MBTI). The MBTI model of personality identifies your personality preferences. It is
based on your four preferences (or inclinations) for certain ways of thinking and behaving.
Big Five Traits and OB Trait Activation Theory
BIG FIVE / FIVE FACTOR MODEL a categorized scheme that describes personality developed
by McRae and Costa in 1992. Five universal and widely agreed upon dimensions of personality
and described using its most positive traits in acronym O.C.E.A.N:
O– OPENNESS to Experience – curiosity, interest, imagination and creativity to new ideas.
C– CONSCIENTIOUSNESS – planning, organizing, hard-working, controlling, persevering, and
punctuality.
E– EXTRAVERSION – sociable, talkative, active, outgoing, and fun-loving. A–
AGREEABLENESS – friendly, warm, trusting, generous, and kind-hearted. N– NEUROTICISM
(Emotional Stability) –taps a person’s ability to withstand stress. People with positive emotional
stability tend to be calm, relaxed and comfortable. Those with high negative scores tend to be
nervous, anxious, depressed and insecure.
Other Personality Traits Relevant to OB
✓ Core self-evaluation - People with positive core self-evaluation like themselves and see
themselves as capable and effective in the workplace.
✓ Self-monitoring - Adjusts behavior to meet external, situational factors. High monitors are
more likely to become leaders in the workplace.
✓ Risk-taking - People differ in their willingness to take chances, a quality that affects how
much time and information managers make to make a decision.
✓ Proactive personality
- Identifies opportunities, shows initiative, takes action, and perseveres

VALUES
In this section, we cover individual values and how they are related to, yet different from,
attitudes. A person’s values are the things that have worth for or are important to the individual,
and a value system is the set of standards by which the individual lives. Values concern what
“should be”; they influence the choices we make among alternative behaviors. Values direct the
form that motivated behavior will take. For example, if you have three job offers, you will select
the one that is of the highest value to you.
Values help shape your attitudes. When something is of value to you, you tend to have positive
attitudes toward it. What is of value to you? Take time and identify what is truly important to you,
and be sure you devote time to your values. Complete Self-Assessment Exercise 1-4 to identify
your personal values in eight broad areas of life.
Values are developed in much the same way as attitudes. However, values are more
stable than attitudes. Attitudes reflect multiple, often changing, opinions. Values about some
things do change, but the process is usually slower than a change in attitude. Society influences
our value system. What was considered unacceptable in the past may become commonplace in
the future, or vice versa. For example, the percentage of smokers and the social acceptance of
smoking have decreased over the years. Value changes over the years are often a major part of
what is referred to as the generation gap.
Getting to know people and understanding their values can improve human relations. For
example, if Juan knows that Carla has great respect for the president, he can avoid making
negative comments about the president in front of her.
Discussions over value issues, such as abortion and homosexuality, rarely lead to
changes in others’ values. They usually just end in arguments. Therefore, you should try to be
open-minded about others’ values and avoid arguments that will only hurt human relations.
Spirituality in the Workplace

People want to be happy. Many people are seeking spirituality as a means of fullfillment
in their lives. Dr. Edward Wilson, Harvard University professor and two-time Pulitzer Prize–
winning expert on human nature, says, “I believe the search for spirituality is going to be one of
the major historical episodes of the 21st century.” NBA 11-ring- winning coach Phil Jackson
says: “Much of my outlook in life is from a spiritual direction.”
Defining Spirituality in the Workplace

Spirituality in the workplace is about people seeing their work as a spiritual path, as an
opportunity to grow personally and to contribute to society in a meaningful way. It is about
learning to be more caring and compassionate with fellow employees, with bosses, with
subordinates, and with customers. It is about having integrity, being true to oneself, and telling
the truth to others. Spirituality in the workplace can refer to an individual’s attempts to live his or
her values more fully
in the workplace. Or it can refer to the way’s organizations structure themselves to support the
spiritual growth of employees. In the final analysis, your understanding of spirit and of spirituality
in the workplace is a very individual and personal matter.
Guidelines for Leading from a Spiritual Perspective Here are five spiritual principles that
have been useful in personal and professional development:
1. Know thyself. All spiritual growth processes incorporate the principle of self- awareness. 2.
Act with authenticity. Be yourself.
3. Respect and honor the beliefs of others. Be open to other’s beliefs and values.

4. Be as trusting as you can be. This means trusting yourself and that there is a Higher
Power in your life and that if you ask, you will receive guidance on important issues. 5.
Maintain a spiritual practice. Examples include spending time in nature, attending religious
services, meditating, praying, and reading inspirational literature.
Secular institutional research has found that during moments of anger and distress,
turning to prayer or meditation, encouraged in nearly all religions, diminishes the harmful effects
of negative emotions and stress. Also, people who attend religious services regularly enjoy
betterthan-average health and wealth, have better marriages, and are happier. One survey
reported that the majority of Americans pray.
By implementing the ideas presented in this chapter, you can develop positive attitudes and a
more positive self-concept, as well as clarify your values. Begin today.
Still on VALUES:
Rokeach Value Survey (RVS)
❖ Terminal values: desirable end-states of existence Goals that a person would like
to achieve during his or her lifetime
❖ Instrumental values: preferable modes of behavior or means of achieving the

terminal values
Terminal and Instrumental Values in the RVS
Terminal Values Instrumental Values
A comfortable life (a prosperous life) Ambitious (hardworking, aspiring)

Responsible(dependable, reliable)
Equality (brotherhood, equal
opportunity for all)
Helpful (working for the welfare of
Freedom (independence, others)
free choice)
Happiness (contentedness) Courageous (standing up for your beliefs)
Self-respect Honest (sincere, truthful)
❖ Generational Values
Dominant Work Values

Cohort/Generati Workforce Current Age
on s Approx.
Entered

organization
Veterans (Traditionali sts) 1960’s 65+
1950’s or Hardworking, conservative,
early conforming; loyalty to the
Boomers) Success, career
achievement,
1965- 1985
Boomers (Baby ambition, dislike of Work/life balance,
Mid-40’s to mid 60’s
authority; loyalty to
rules; loyalty to relationships self-reliant but
Xers (Gen X) 1985- 2000 team-oriented;
Late 20’s to early 40’s Nexters
team oriented, dislike of Confident, financial success, (Gen Y)/
Millennials
2000presen
t Under 30
loyalty to both self
Person-Organization Fit and relationships
This idea can be further linked to the workplace by looking at person-organization fit. The
employee’s personality needs to fit with the organizational culture. When employees find
organizations that match their values, they are more likely to be selected and correspondingly
be more satisfied with their work. The big five personality types are often helpful in matching the
individuals with organizational culture.
International Values
There are global implications to personality and values in the workplace. Frameworks
such as the Big Five are transferable across cultures; in fact, it has been used worldwide.
However, the applicability is higher in some cultures than others. Values, on the other hand,
differ to a great degree across cultures.
Hofstede’s Framework for Assessing Cultures Five

factors:
1. Power Distance
2. Individualism vs. Collectivism
3. Masculinity vs. Femininity
4. Uncertainty Avoidance
5. Long-term vs. Short-term Orientation
Geert Hofstede developed a framework for assessing culture. He breaks up his

framework of understanding into five value dimensions: power distance, individualism vs.
collectivism, masculinity vs. femininity, uncertainty avoidance, and long-term vs. short
term orientation.

The GLOBE, as discussed earlier, is also helpful in framing differences between
cultures. Global Leadership and Organizational Behavior Effectiveness Ongoing study
with nine factors:
Individualism/ collectivism Assertiveness
In-group collectivism Future orientation Gender
Performance orientation differentiation Uncertainty avoidance
Humane orientation Power distance
ETHICS
As related to values, ethics refers to the moral standard of right and wrong behavior.
Business is often viewed as being unethical, and today more businesses are focusing on
ensuring ethical business practices. In this section, we discuss whether ethical behavior does
pay, how personality and attitudes affect ethical behavior, how people justify unethical behavior,
some ethical guidelines, the stakeholders’ approach to ethics, and global ethics.
Does Ethical Behavior Pay?
Generally, the answer is yes. Ethical or unethical behavior is linked directly to bottom-line
performance. Organizational scandals have become too common. Greed and materialism have
led to distrust, if not disdain, for business leaders. An ethical scan- dal can lead to having a hard
time attracting customers, investors, and employees and may lead to lawsuits, financial losses
through settlements and sales declines, increases in the cost of capital, market share decline,
loss of network partners, and other costs associated with a negative reputation.
On a personal level, it may be incredibly tempting to be unethical, but the long- term
consequences can impose dramatic costs. Lying is common, but it’s generally best not to lie.
Being truthful can enhance your well-being, as honest people have fewer mental health and
physical complaints.
How Personality Traits and Attitudes, Moral Development, and the Situation Affect Ethical
Behavior
Personality Traits and Attitudes The use of ethical behavior is related to our individual
needs and personality traits. Leaders with surgency dominance personality traits have two
choices: to use power for personal benefit or to help others. To gain power and to be
conscientious with high achievement, some people will use unethical behavior. An
agreeableness personality, sensitive to others, can lead to following the crowd in either ethical
or unethical behavior. Emotionally unstable people and those with an external locus of control
are more likely to use unethical behavior. People open to new experiences are often ethical.
People with positive attitudes about ethics tend to be more ethical than those with negative or
weak attitudes about ethics. The firm’s internal ethical context can help or hurt employee
attitudes and behavior—being ethical or unethical.
When you complete Self-Assessment Exercise 1-6 at the end of this section, you will have a
better understanding of how your personality affects your ethical behavior. But before that,
complete Self-Assessment Exercise 1-5 to determine how ethical your behavior is.
Moral Development A second factor affecting ethical behavior is moral development,
which refers to understanding right from wrong and choosing to do the right thing. Our ability to
make ethical decisions is related to our level of moral development when we face moral issues.
There are three levels of personal moral development, as discussed in Exhibit 1.1. Although
most of us have the ability to reach this third level, only about 20 percent of people actually do
reach it.

Most people behave at the second level, conventional. How do you handle peer pressure? What
level of moral development have you attained? What can you do to further develop your ethical
behavior?
The Situation People respond to “incentives” and can often be manipulated to do the
ethical or unethical thing based on the situation’s circumstances. Highly competitive and
unsupervised situations increase the odds of unethical behavior. Unethical behavior occurs
more often when there is no formal ethics policy or code of ethics and when unethical behavior
is not punished. Unethical behavior is especially prevalent when it is rewarded. People are also
less likely to report unethical behavior (blow the whistle) when they perceive the violation as not
being serious and when the violator is a friend.
To tie together the three factors affecting ethical behavior, you need to realize that
personality traits and attitudes and your moral development interact with the situation to
determine if you will use ethical or unethical behavior. In this chapter we use the individual level
of analysis: Am I ethical? How can I improve my ethical behavior? At the organizational level,
many firms offer training programs and develop codes of
Exhibit 1.1 Levels of Moral Development
Level 3: Postconventional
Behavior is motivated by universal principles of right and wrong, regardless of the expectations
of the leader or group. One seeks to balance the concerns for self with those of others and the
common good. At the risk of social rejection, economic loss, and physical punishment, the
individual will follow ethical principles even if they violate the law (Martin Luther King, Jr., for
example, broke what he considered unjust laws and spent time in jail seeking universal dignity
and justice).
“I don’t lie to customers because it is wrong.”
The common leadership style is visionary and committed to serving others and a higher cause
while empowering followers to reach this level.
Level 2: Conventional
Living up to expectations of acceptable behavior defined by others motivates behavior to fulfill
duties and obligations. It is common for followers to copy the behavior of the leaders and group.
If the group (this could be society, an organization, or a department) accepts lying, cheating, and
stealing when dealing with customers, suppliers, the government, or competitors, so will the
individual. On the other hand, if these behaviors are not accepted, the individual will not do them
either. Peer pressure is used to enforce group norms. “I lie to customers because the other
sales reps do it too.”
It is common for lower-level managers to use a leadership style similar to that of the higher-level
managers.
Level 1: Preconventional
Self-interest motivates behavior to meet one’s own needs and to gain rewards while following
rules and being obedient to authority to avoid punishment.
“I lie to customers to sell more products and get higher commission checks.” The common
leadership style is autocratic toward others while using one’s position for personal advantage.
Source: Based on Lawrence Kohlberg, “Moral Stages and Moralization: The
CognitiveDevelopment Approach,” in Moral Development and Behavior: Theory, Research, and
Social Issues, ed. Thomas Likona (Austin, TX: Holt, Rinehart and Winston, 1976), pp. 31–53.

Teamwork. As individuals, search for “Free Holland Career Model Assessment” on the
web and take one of the assessments. Get the list of jobs you are most likely to enjoy doing and
those you are least likely to enjoy. Bring your results into the team.
As a team, find out which team members are currently in jobs (or if they are not working
now, were in jobs) that Holland’s assessment indicates they should enjoy and which are
in jobs that the assessment says they would not enjoy. Determine:
a. How accurately does the assessment match your own experiences?
b. How well do your degree fields match the suggested careers?
c. What is the group’s opinion of the personality field in which each person was
placed? How accurately does it describe each of you?
Compile your results and share them with the class.
V. ASSESSMENT
1. Describe the two most common methods of assessing a personality. Which is likely to be
the most accurate? Why?
2. Describe the Myers-Briggs Type Indicator personality framework. Based on the
framework, what would you think was your personality type? Why?
3. Identify and describe the five traits of the Big Five personality model.
4. What are two attributes of values? Why are values important in OB?
5. Describe the relationship between terminal and instrumental values.
VI. SUMMARY
A. Personality. Managers need to evaluate the job, the work group, and the organization in
order to determine what the optimum Big Five personality type would be for a new
employee. The MBTI could be helpful in training and development.
B. Values. Values strongly influence attitudes, behaviors, and perceptions, so knowing a
person’s values may help improve prediction of behavior.
C. Additionally, matching an individual’s values to organizational culture can result in positive
organizational outcomes.
Chapter 6: Perception and Individual Decision Making
I. LEARNING OBJECTIVES/OUTCOMES
At the end of this lesson, you should be able to:
1. Understand perception and the factors that influence it and its link to decision
making;
2. Learn how individual differences and organizational constraints affect decision
making; and
3. Becoming a great decision maker in the workplace.

II. INTRODUCTION
Perception is a process by which individuals organize and interpret their sensory

impressions in order to give meaning to their environment. In relation to decision making
process, perception affects our way of thinking on how we deal with situations like making a
decision. We may make decisions based on our experiences because there are some that has
already the knowledge on how they will respond to that situation. There are also some that they
based their decision making skills on their interest or their motives with it. Perception affects our
decision making process because in order to make an accurate decision, you need to think
properly if this one will work or not. There are a lot of things that should be consider in making a
decision. One thing that makes decision making difficult is our perception to what will be the
outcome after making this decision.
III. LESSON PROPER
PERCEPTION - A process by which individuals organize and interpret their sensory

impressions in order to give meaning to their environment. The world as it is perceived is the
world that is behaviorally important
Factors Influencing Perception

to be under the personal control
of the individual
Target
Perception
PERSON PERCEPTION:
Attribution Theory-
Situation
Suggests that perceivers try to
Perceiver “attribute” the observed External – the person is forced
behavior to a type of cause: into the behavior by outside
Internal – behavior is believed events/causes
Determinants of Attribution ✔ Distinctiveness– whether an individual displays different

behavior in different situations (the uniqueness of the act)
✔ Consensus – does everyone who faces a similar situation respond in the same
way as the individual did ✔ Consistency– does the person respond the same way
over time
This chart looks at the elements of the attribution
theory and helps us to make the connection
between external or internal driven factors.
Attribution Errors
• Fundamental attribution error: Tendency

to underestimate the influence of external factors
and overestimate that of internal factors.
• Self-Serving Bias: Occurs when individuals

overestimate their own (internal) influence on successes and overestimate the external
influences on their failures. The basic process of attribution applies across cultures, but
Western cultures tend to be more individualist, while Asian cultures are more group oriented
SHORTCUTS USED IN JUDGING OTHERS
✔ Selective Perception: A perceptual filtering process based on interests, background,

and attitude.
✔ Halo Effect: Drawing a general impression based on a single characteristic ✔
Contrast Effects: Our reaction is influenced by others we have recently encountered
(the context of the observation) ✔ Stereotyping: Judging someone on the basis of the
perception of the group to which they belong
THE LINK BETWEEN PERCEPTION AND DECISION MAKING
In organizational behavior we are concerned with how decisions are made and
perceptions play a significant role in that process. Often decision making occurs as a
reaction to a problem or a perceived discrepancy between the way things are and the way
we would like them to be. A decision is then made based on various alternatives that have
been developed from the data collected. Perception influences this entire process from
problem recognition to data selection to alternative chosen.
❑ Rational Decision-Making Model

This model is seldom actually used: it’s more of a goal than a practical method. This
model assumes a perfect world in order to make decisions. It assumes that there is complete
information, that every option has been identified and that there is a maximum payoff. 1. Define
the problem
2. Identify the decision criteria
3. Allocate weights to the criteria
4. Develop the alternatives
5. Evaluate the alternatives
6. Select the best alternative
❑ Bounded Rationality
The limited information-processing capability of human beings makes it impossible to
assimilate and understand all the information necessary to optimize. People seek solutions that
are satisfactory and sufficient, rather than optimal (they “satisfice”). Bounded rationality is
constructing simplified models that extract the essential features from problems without
capturing all their complexity
Simpler than rational decision making, decision making under bounded rationality is composed
of three steps:
1. Limited search for criteria and alternatives – familiar criteria and easily found
alternatives
2. Limited review of alternatives – focus on alternatives, similar to those already in
effect
3. Satisficing – selecting the first alternative that is “good enough” ❑ Intuitive
Decision Making
The third model is based on intuition. This is the non-conscious process that occurs as a
result of experiences that result in quick decisions.

1. Increases with experience
2. Can be a powerful complement to rational analysis in decision making
Common Biases and Errors
1. Overconfidence Bias
As managers and employees become more knowledgeable about an issue, the less
likely they are to display overconfidence
2. Anchoring Bias
A tendency to fixate on initial information and fail to adequately adjust for subsequent
information
3. Confirmation Bias
Seeking out information that reaffirms our past choices and discounting information
that contradicts past judgments
4. Availability Bias
Basing judgments on information that is readily available
5. Escalation of Commitment
Staying with a decision even when there is clear evidence that it is wrong 6.
Risk Aversion
Preferring a sure thing over a risky outcome
7. Hindsight Bias
Believing falsely that we could have predicted the outcome of an event after that
outcome is already known
Organizational Constraints on Decision Making

There are many organizational constraints to good decision making that create
deviations from the rational model defined earlier. Managers shape their decisions on
performance evaluations, reward systems, and formal regulations. They also base
decisions on systemimposed time constraints and historical precedents. All these factors
may influence the decisions that are made.
Ethical Frameworks for Decision Making

✔ Utilitarianism - Provide the greatest good for the greatest number
✔ Rights- Make decisions consistent with fundamental liberties and privileges ✔ Justice-
Impose and enforce rules fairly and impartially so that there is equal distribution of benefits
and costs
CREATIVITY IN ORGANIZATIONS
Better decisions are those that incorporate novel and useful ideas, or creativity. An organization
will tend to make better decisions when creative people are involved in the process. So, it is
important to identify people who have that creative potential. Some of the methods and theories
identified in earlier chapters can help in this process. For example, those who score high in
openness to experience tend to be more creative.
CREATIVITY - The ability to produce novel and useful ideas Helps

people:
• See problems others can’t see
• Better understand the problem
• Identify all viable alternatives

• Identify alternatives that aren’t readily apparent
Three-Stage Model of Creativity
Creative behavior occurs in four steps, each of which
leads to the next. Problem formulation, information
gathering, idea generation, and idea evaluation.
Steps:
1. Problem formulation: identify a problem or
opportunity that requires a solution as yet unknown
2. Information gathering possible solutions incubate in
an individual’s mind
3. Idea generation: develop possible solutions from
relevant information and knowledge
4. Idea evaluation: evaluate potential solutions and identify the best one Cause of creative
behavior:
✔ Creative potential- Expertise is the single most important predictor of creative
potential
✔ Creative environment- Motivation and Rewards and recognition
Off-the-wall solutions are creative only if they help solve the problem. Creative ideas do
not implement themselves; translating them into creative outcomes is a social process that
requires utilizing other concepts addressed in the text.
IV. ACTIVITY: International OB
East–West Differences: It’s Perceptual

1. Divide into groups of three to five people or Individual.
2. View the ad as an individual or as a group. http://www.youtube.com/watch?v=--BwPz574MA
3. Discuss in the group how differences in culture might result in differences of interpretation. 4.
If you decide there is a possibility of misinterpretation, what would you suggest as a solution to
meet the advertiser’s goals while ensuring more similar interpretations globally? 5.
Present your conclusion to the class to open discussion to each group’s interpretations.
V. ASSESSMENT
1-2.) Perception is a process by which individuals______________ and ______________ their

sensory impressions in order to give meaning to their environment.
3.) Stereotyping: _________________ someone on the basis of the perception of the group to
which they belong.
4, 5 and 6.) Determinants of Attribution 7.)

Internal – behavior is believed to be under the _________________ of the individual.
8.) External – the person is forced into the behavior by_____________ events/causes.
9 and 10. Three Stages of Creativity
VI. SUMMARY
Behavior follows perception, so to influence employee behavior at work, assess how

employees perceive their work. As individuals have inherent biases in their perceptions and
corresponding decision making. Make a better decision by recognizing perceptual biases and
decision-making errors we tend to commit because biases can be helpful if used effectively.
Adjust your decision-making approach to the national culture you’re operating in and to the
criteria your organization values. Combine rational analysis with intuition. Try to enhance your
creativity as it aids in arriving at better decisions as it allows for new perspectives and ideas.
Chapter 7: Motivation Concepts
I. LEARNING OBJECTIVES/OUTCOMES
1. Understand the reasons why Filipino workers take on the daily challenges of their work
and how organizations respond in return;
2. Learn the different components that make up an employer-employee relationship and
how both sides contribute to sustaining it; and
3. Learn more about the different forms of organizational rewards which are cornerstones
of motivation in the workplace.
II. INTRODUCTION
In 2013, 38.5 million or nearly 60% of Filipinos of working age were employed (Philippine
Statistics Office 2013). Among these three in every five employed persons are full-time workers
while one in every five seek more hours of work. For the most part, work is a means to satisfy
the requirements of everyday living and maintaining a lifestyle (Henderson 2000). Enriquez
(1993) said that work also gives a person a sense of identity and provides opportunities to make
friends and expand one’s social network. On a more abstract level, some people even find a
more purposeful and meaningful life through work (Tiglao-Torres 1990).

III. LESSON PROPER
Understanding Filipino Work Motivation

In understanding the motivations of Filipino employees, it is important to consider what is
important in their lives as this may guide their work activities and goals.
Sense of familialism (pagkakamag-anak) – a central feature in Filipino culture that is
reflected in the different interactions that they engage in. The family interest is foremost in
making decisions on the type of work that one engages in; thus, Filipino overseas workers may
give more importance to the economic gain for their families over their personal feelings of
separation. The benefits of the financial rewards are contextualized in terms of how these will
improve the conditions of the family and contribute to their social mobility.
The tenacity to improve one’s self and their condition in society reflects the
Filipino’s pagsusumikap – a valued social trait (Jocano 2001). One is expected to work hard
to improve their lot. The be perceived otherwise is a stigma and is avoided in Filipino society.
This desire to further one’s self (kaunlaran) applies even if it means leaving the country to seek
this advancement (Jocano 2001).
More recently, a research of Ilagan et al. in 2014 identified several motivating factors of
Filipino employees to come up with Filipino Needs Theory of Motivation:
1. Job related – needs concern those that are specific to the worker’s immediate tasks
(e.g., co-worker relations)
2. Organization related – considers the larger working environment (e.g. being a role
model to others)
3. Family related – needs include education for family members and having good pay
and benefits
4. Career related – needs are those that contribute to their professional development
Total Rewards for Filipino Employees
The presence of both intrinsic and extrinsic rewards in an organization underlies the
concept of total rewards. Total rewards refer to all the rewards that the employer gives to the
employee, which include all forms of financial returns, benefits, tangible services, and intangible
returns that employees receive as part of an employment relationship (Milkovich et.al 2014).
Two main parts of Employee Compensation:
1. FINANCIAL REMUNERATION or CASH

Base pay – refers to the cash compensation that an employer pays for the work
performed.
Merit pay – is a performance-based increment to the base pay which can substantially
increase it in the long run.
Individual incentives – are given on the achievement of objective, pre-established
performance standards such as commissions.
2. INDIRECT FINANCIAL COMPENSATION

Pay for time not worked, services and protection programs given to the employees that
are either mandated by the government or at the discretion of the company (Martires
1988).

BENEFITS
Government-mandated benefits: social security, thirteenth month pay, paid
vacation/holidays, retirement benefit, housing benefit, medical care and paternity leave.
Additional benefits: access to medical service, allowance for rice and groceries, life
insurance, savings plan, training programs, work life balance programs, and scholarships.
FLEXIBLE BENEFITS
The study of Martires (1988) says that a growing trend in the crafting of benefits program in an
organization is the flexible benefits also known as the cafeteria plan. For a specified amount, an
employee is given freedom to choose the benefits he or she would like to avail of from a list
provided by the company – turo-turo or pointing style.
The FLEXIBLE BENEFIT program gives the organization a better control on cost while
making the employees more aware of the benefits that they receive (Watson Wyatt Worldwide
2009).
This program adheres to the understanding that different rewards will motivate different
employees. For instance, a working mother may be more interested in health coverage for
her family, while a single employee may be more interested on self-development activities
such as a scholarship or gym membership.
Ensuring top performance from Filipino workers therefore requires an understanding of their
culture and beliefs. Below are some ways to enhance the motivation of Filipino employees:
1. Identify the most pressing needs of employees. It is important for organizations to

understand the needs of their employees and the extent to which they believe these
needs are being met. Such data can guide the development of programs, policies
and interventions.
2. Introduce challenging activities where the employee can potentially learn a new
skill or acquire a new set of knowledge. Engaging the employees in tasks that
maximize their potential can add to their interest at work. Not only would this
contribute to their growth but this can also reflect the organization’s concern on their
continued financial sustainability.
3. Give meaningful rewards. Rewards are most appreciated when it is perceived as
valuable. Taking the extra effort to identify which rewards are most needed by the
employees will ensure that it generates the most impact. Filipino workers in general,
place a high value on cash (Asundion 2000), travel, and recognition as powerful
motivators for them to do productive work (Yao, Franco and Hechanova 2005).
4. Respect the cultural norms and behavior that they have and use these as a
vehicle to get through them. Filipinos are known to be family-oriented (Medina
2001). Work activities that have the potential to conflict with this aspect of the person,
such as requiring work when they are supposed to spend time with the family, may
not be received favorably.
5. Harness Congenial Relationships. An employer should harness the congenial
relationships in the office that can facilitate productive collaboration on work activities. 6.
Build relationships with leaders and employees. Leaders need to take the time and
effort to know their employees – their lives, dreams and plans for the future. Addressing
their need for belongingness can make them feel cared for which leads to a feeling of
oneness with the organization.
EARLY THEORIES OF MOTIVATION

There are a number of theories of motivation that help us gain a better understanding of
the concept. Some of the earlier theories are not entirely valid anymore but they are still used by
many managers.
• Maslow’s Hierarchy of Needs Theory

• McGregor’s Theory X and Theory Y
• Herzberg’s Two-Factor (Motivation-Hygiene) Theory
• McClelland’s Theory of Needs (Three Needs Theory)
The first theory was developed by Abraham Maslow in the

1950s. His theory states that with every individual there is a
hierarchy of five needs. As each need is met or satisfied the
next need becomes dominant. His theory posits that
individuals are stuck in their existing need level until it is
satisfied and then they can move on to the next level. For
example, until their safety needs are met they will not be
able
to move on to the social level. The organization of these need
levels may vary across cultures.
Douglas McGregor added to the motivation work done in the

1950s and developed the theory called Theory X, Theory Y.
He believed that there are two distinct views of human beings
that managers hold. The Theory X view is basically negative
and holds that workers have little ambition, dislike
work, and avoid responsibility. The Theory Y view
is in contrast to X and sets forth that workers tend
to be self-directed, enjoy work, and accept
responsibility. Managers will modify their behavior
toward employees based on what view they hold Theory X
about them.
Herzberg’s Two-Factor theory is another one of

the earlier developed theories. This theory sets
forth that satisfaction and dissatisfaction are not Theory Y
opposites, but two separate ideas. There are a set
of factors that when present will help to avoid
dissatisfaction in workers. This group is called the
hygiene factors and includes such things as
salary, working conditions, and company policies.
There is another set of factors that when present
will help to cause satisfaction in workers. This
group is called motivators and includes things such
as growth, responsibility, and achievement. These
sets are distinct and the presence of hygiene
factors does not cause satisfaction; it just helps
avoid dissatisfaction.
The final earlier theory of needs we will look at is McClelland’s need theory. He bases
his theory on the idea that people are motivated in the workplace by three main needs. The first
need is the need for achievement or the drive to excel in relation to a set of defined standards.
The second is the need for power, to make others behave in a way that they would not have
behaved otherwise. The final need addressed in this theory is the need for affiliation. Affiliation
looks at the relationship aspect and the desire for close relationships. People will have varying
levels of these needs, which makes this theory difficult to measure.

CONTEMPORARY THEORIES OF MOTIVATION
❖ Self-determination theory: People prefer to have control over their actions so when they
feel they are forced to do something they previously enjoyed, motivation will decrease
• Cognitive evaluation theory: Proposes that the introduction of extrinsic rewards

for work (pay) that was previously intrinsically rewarding tends to decrease overall
motivation
• Self-concordance: considers how strongly people’s reasons for pursuing goals
are consistent with their interests and core values
❖ Goal-Setting Theory- Edwin Locke developed what is called the goal-setting theory. The
idea behind this theory is that goals that are specific and effectively difficult can lead to
higher performance if they include self-generated feedback. A difficult goal will help the
individual to focus and direct attention as well as energize them to work harder. The
difficulty of the goal will increase persistence and force people to be more effective and
efficient.
❖ Self-efficacy theory- An individual’s belief that he or she is capable of performing a task

also known as social cognitive theory or social learning theory. Developed by Albert
Bandura. This theory is based on an individual’s belief that he or she is capable of
performing a task. This theory is a complement to the goal-setting theory, as it
incorporates goals into the process. Higher efficacy is related to greater confidence,
greater persistence in the face of difficulties, and responding to negative feedback by
working harder, not shutting down.
Self-efficacy increased by:

✔ Enactive mastery: gain experience
✔ Vicarious modeling: see someone else do the task
✔ Verbal persuasion: someone convinces you that you have the skills ✔ Arousal: get
energized
❖ Equity Theory- Adam’s equity theory utilizes the perception theory that we looked at in
previous chapters. The idea is that employees compare their ratios of outcomes to inputs
of others they see as relevant. When they see the ratios as equal, there is a perceived
state of equity and no tension arises. However, when they perceive the ratios to be
unequal, they may experience anger or guilt depending on the result of the equity
analysis, and then tension can arise. This tension can motivate people to act in a way to
bring the situation into a more equitable state.
Equity theory suggests employees who perceive inequity will make one of six choices:
1. Change inputs 4. Distort perceptions of others
2. Change outcomes 5. Choose a different referent
3. Distort perceptions of self 6. Leave the field
Equity theory is popular in the United States because U.S. style reward systems assume that
employees are highly sensitive to equity in reward allocation. Research shows, however, that in
other cultures inputs and outputs may be valued differently. Managers need to determine what

is considered “fair” in a particular culture. Managers need to be transparent, consistent, and
unbiased in their decision making.
❖ Expectancy Theory- The most commonly used and widely accepted theory of motivation
is Victor Vroom’s Expectancy Theory. This theory argues that the strength of a tendency
to act in a certain way is dependent on the strength of the expectation that they will
receive a given outcome and that the outcome is desired.
Employees are willing to work harder if they believe that their actions will get them an outcome
they desire. For example, employees are willing to work long and hard hours if they know that
they will be rewarded through promotion, recognition, or pay in response to their hard work
Three key relationships:

1. Effort-performance: perceived probability that exerting effort leads to successful
performance
2. Performance-reward: the belief that successful performance leads to desired
outcome
3. Rewards-personal goals: the attractiveness of organizational outcome (reward)
to the individual
IV. ACTIVITIES/EXERCISES
• Pick a company and find the most benefits information and list out those benefits. Estimate
the approximate worth of those benefits. Calculate the total worth of an entry-level job
(salary plus benefits).
• Talk to an adult about any company benefits he or she may have. Ask if this person had a
choice over any of the benefits and, if so, what influenced his or her final decisions about
the job and benefits.
• List at least three companies or organizations for which you would consider working. Go
online and search for the companies’ websites (or interview a local employer) to learn
about what employee benefits the company provides.
• What employee benefits are particularly important to you now? What additional benefits will
you want when considering future jobs?
V. ASSESSMENT
Answer the following:
1. Define motivation. How does this explain the behavior of a worker in the organization?
2. How does adopting a Total Rewards perspective benefit the employee and the
organization?
3. What are the advantages and pitfalls of using a flexible benefits program?

VI. SUMMARY
I. IMPLICATIONS FOR MANAGERS
A. Make sure extrinsic rewards for employees are not viewed as coercive and recognize
the importance of intrinsic motivators that appeal to employees’ desires for autonomy,
relatedness, and competence.
B. Consider goal setting theory: Within reason, clear and difficult goals often lead to higher
levels of employee productivity.
C. In accordance with self-efficacy theory, efforts you make to help your employees feel
successful in completing tasks will result in their increased motivation.
D. As suggested by justice theory, ensure that employees feel fairly treated; sensitivity to
processes and interactions are particularly important when rewards are distributed
unequally.
E. Expectancy theory offers a partial means of enhancing employee productivity,
absenteeism, and turnover. Employees are more motivated to engage in behaviors they
think they can perform, and which in turn lead to valued rewards. II. KEEP IN MIND A.
Make goals specific and difficult.
B. Motivation can be increased by raising employee confidence in their own abilities
(selfefficacy).
C. Openly share information on allocation decisions, especially when the outcome is likely to
be viewed negatively.
Suggested Further Readings

Riggio, Ronald. 2013. Introduction to Industrial/Organizational Psychology. 6th Ed. New
Jersey, USA: Prentice Hall.
Jocano, F. Landa. 1999. Management by Culture: Fine-tuning Modern Management to
Filipino Culture. Quezon City, Philippines: Punlad Research House Inc.
Chapter 8: Motivation from Concept to Application
I. LEARNING OBJECTIVES / OUTCOMES
1. Understand how job characteristics model and the way it motivates by changing the work
environment.
2. Learn how specific alternative work arrangements, different types of variable-pay
programs and employee involvement measures can motivate employees. 3. Becoming a
motivator by means of flexible benefits and intrinsic rewards.
II. INTRODUCTION
Simply knowing about motivational theories is not enough to make managers effective.
Managers must be able to apply these theories in the workplace to increase worker motivation.
This chapter will review the job characteristics model, discuss some ways jobs can be
redesigned, and then explore some alternative work arrangements.

III. LESSON PROPER
The Job Characteristics Model

The job characteristics model looks at describing any job in terms of five core job
dimensions. These job dimensions include;
✔ Skill variety, which is the degree to which the job incorporates a number of different skills
and talents.
✔ Task identity is another dimension that looks at the degree to which the job requires the
completion of a whole and identifiable piece of work.
✔ Task significance is included and looks at how the job impacts the lives of others. ✔
Autonomy, the fourth dimension, identifies how much freedom and independence workers
have over their jobs. And finally,
✔ Feedback is how much the job generates direct and clear information about the worker’s
performance.
Much evidence supports the JCM concept

that the presence of a set of job
characteristics—variety, identity, significance,
autonomy, and feedback—does generate
higher and more satisfying job performance.
JCM creates motivational jobs as they
are designed to give internal rewards. Positive
outcomes are moderated by individual growth
needs as each individual will respond differently.
In order for the jobs to increase motivation there should be a high degree of autonomy,
feedback, and a least one meaningfulness factor such as significance, identity, or variety. Note
that because the JCM is relatively individualistic, job enrichment strategies might not have the
same effect in collectivistic cultures as they do in individualistic cultures like the United States.
How Can Jobs Be Redesigned?

There are some helpful ways to redesign a job to increase the motivation of the
employees. Two common practices are job rotation and job enrichment. ❖ Job Rotation
-The periodic shifting of an employee from one task to another
❖ Job Enrichment
-Increasing the degree to which the worker controls the planning, execution, and
evaluation of the work
• Enrichment reduces turnover and absenteeism while increasing
satisfaction
Guidelines for Enriching a Job
Job enrichment is helpful in keeping the worker
engaged in their work. There are many actions a
manager can take to help the worker. These actions
help to achieve core job dimensions. For example, if
the manager combines tasks for the worker, it can help
the worker increase the amount of skills they are
utilizing and help the worker to identify tasks that need
to be completed. This action can help the worker have
a better understanding of the job and how it helps the
organization complete its goals as well as help the
worker enjoy his work more because he is using more of his skill set.
❖ Relational Job Design

-Designing work so employees are motivated to promote the well-being of the
organization’s beneficiaries
• Relate stories from customers who have benefited from the company’s products or
services
• Connect employees directly with beneficiaries
❖ Alternative Work Arrangements

❑ Flextime- Some discretion over
when worker starts and leaves
❑ Job Sharing- Two or more

individuals split a traditional job
❑ Telecommuting- Work remotely

at least two days per week
Employee Involvement- A participative process that uses the input of employees to increase
their commitment to the organization’s success Two types:
1. Participative management- occurs when managers include employees in the

decisionmaking process. Subordinates share a significant degree of decision-making
power with superiors. Only a modest influence on productivity, motivation, and job
satisfaction.
To be effective:
✔ Followers must have confidence and trust in leaders
✔ Leaders should avoid coercion and stress organizational consequences of decisions
2. Representative participation- tries to redistribute power by putting labor on a more equal
footing with the interests of managers and stockholders. This is achieved by letting
workers be represented by small groups of employees who participate in decisions.
Workers are represented by a small group of employees who participate in decisions
affecting personnel

a. Works councils
b. Board membership
Employee Involvement Programs and Motivation Theories

❑ Theory Y: consistent with participative management
❑ Theory X: consistent with the more autocratic style of managing
❑ Two-factor theory: employee involvement programs could provide intrinsic motivation by
increasing opportunities for growth, responsibility, and involvement in the work itself
Using Pay to Motivate Employees
As we saw in previous chapters, money is not the primary driver for job satisfaction.
However, it does motivate individuals, and companies often underestimate its impact in keeping
top talent.
It is critical to figure out what to pay and to establish a pay structure that makes sense for your
industry and organization. Then it is imperative that the organization utilizes this pay system and
applies it to the pay of individual employees.
Major strategic rewards decisions:

✔ What to pay employees
✔ How to pay individual employees
✔ What benefits to offer
✔ How to construct employee recognition programs
What to Pay?
❑ Establishing a pay structure
✔ Balance between:
• Internal equity – the worth of the job to the organization
• External equity – the external competitiveness of an organization’s pays relative to
pay elsewhere in its industry
✔ A strategic decision with trade-offs
How to Pay?
Variable-Pay Programs-Base a portion of the pay on a given measure of performance Seven
types:
1. Piece-rate pay plan- workers are paid a fixed sum for each unit of production completed
2. Merit-based pay-pay is based on individual performance appraisal ratings 3. Bonuses-
rewards employees for recent performance
4. Skill-based pay-pay is based on skills acquired instead of job title or rank – doesn’t
address the level of performance
5. Profit-sharing plans- organization-wide programs that distribute compensation based on
an established formula designed around profitability
6. Gain-sharing- compensation based on sharing of gains from improved productivity 7.
Employee-stock ownership plan (ESOP)-plans in which employees acquire stock, often
at below-market prices

Using Benefits to Motivate
Flexible benefits allow employees choices between different benefits. This allows them
to customize their options and create a plan that best meets their needs and situation. This
increases their motivation because they realize the organization has their best interest in mind.
Using Intrinsic Rewards to Motivate
A method of motivation that has been highly successful is employee recognition

programs. This idea recognizes the importance of coupling extrinsic and intrinsic methods to
help motivate employees. Recognition is an intrinsic motivation technique that can range from
giving an employee the proverbial pat on the back to a more public recognition ceremony.
Recognition programs are highly effective and cost very little to administer. There are critics of
such programs, however, who say that they can be politically motivated and if the perception is
that they are applied unfairly, they can cause more harm than good.
As a small group, assume you are a consultancy firm that specializes in motivational techniques
and job redesign. The college administration has come to you and asked that you examine the
college bookstore (or some other entity on the campus) and can provide them with suggestions
for increasing the motivation of the employees there. Assess the current work environment and
write up your suggestions using the motivational theories and techniques given in Chapters 6
and 7.
V. ASSESSMENT
Identification
1. Some discretion over when worker starts and leaves.

2. Two or more individuals split a traditional job.
3. Work remotely at least two days per week.
4. Occurs when managers include employees in the decision-making process. 5. This is
achieved by letting workers be represented by small groups of employees who participate in
decisions.
6. It is a type of Variable-Pay Program which is based on individual performance appraisal
ratings.
7. It is a type of Variable-Pay Program which is based on skills acquired instead of job title
or rank – doesn’t address the level of performance.
8. It is a type of Variable-Pay Program which is based on sharing of gains from improved
productivity.
9. It is a type of Variable-Pay Program where workers are paid a fixed sum for each unit of
production completed
10. It is a type of Variable-Pay Program which employees acquire stock, often at
below-market prices

VI. SUMMARY
D. Understanding what motivates individuals is key to organizational performance. E.

Employees whose differences are recognized, who feel valued, and who have the
opportunity to work in jobs tailored to their strengths and interests will be motivated to
perform at the highest levels.
F. Employee participation and recognition can increase employee productivity, commitment
to work goals, motivation, and job satisfaction.
Chapter 9: Foundations of Group Behavior

1. Define group and identify the five stages of group development.
2. Show how role requirements change in different situations.
3. Demonstrate how norms exert influence on an individual’s behavior.
4. Discuss the dynamics of status in group behavior.
5. Show how group size affects group performance.
6. Contrast the benefits and disadvantages of cohesive groups.
7. Explain the implications of diversity for group effectiveness.
8. Contrast the strengths and weaknesses of group decision making.
9. Compare the effectiveness of interacting, brainstorming, and the nominal group technique.
II. INTRODUCTION
People turn to groups when they must solve problems and make decisions. Groups often
make better decisions than individuals, for groups can process more information more
thoroughly. But groups, like individuals, sometimes make mistakes.
When a group sacrifices rationality in its pursuit of unity, the decisions it makes can yield
calamitous consequences.
■ Why make decisions in groups?
■ What problems undermine the effectiveness of decision making in groups?
■ Why do groups make riskier decisions than individuals?
■ What is groupthink, and how can it be prevented?
III. LESSON PROPER
Groups are defined as two or more individuals who come together to achieve a set goal.
There are two main types of groups. The first is a formal group where the organization
establishes the group with defined work tasks and outcomes. The second group is an informal
group that is not part of the organizational structure. They are often established in reaction to a
need for social interaction and form naturally. Informal groups can have a significant influence
on behavior and performance
The Five-Stage Model
STAGE ACTIVITY
Forming Orientation: members getting to know one another
Storming Conflict: disagreement about roles and procedures
Norming Structure: establishment of rules and social relationships
Performing Work: focus on completing the task
Adjourning Dissolution: completion of task and end of the group
SOURCE: Adapted from Tuckman, B., & Jensen, M. (1977). Stages of small group
development revisited. Group and Organizational Studies, 2, 419-427).
The forming stage is filled with

uncertainty
as group members figure out their roles and the
group norms. The storming stage occurs as the
roles continue to be developed and conflict arises
between group members. As members develop
closer relationships and a sense of cohesiveness,
they move into the norming stage. When the
group is functioning well together and achieving
their goals they are in the performing stage. If it
is a temporary group, they will wrap up activities
and adjourn in the final stage.
Temporary groups usually do not follow the
five-stage model. Instead, they follow a
punctuated equilibrium model. The first meeting sets the group’s direction, after which a period
of inertia sets in until about half the group’s allotted time is used up. At that point, a transition
initiates major changes, followed by a second period of inertia. The group’s last meeting is
characterized by a much higher level of activity
Work groups have properties including roles, norms, status, size, and cohesiveness that
shape the behavior of members. These properties can help explain and predict behavior within
the group and the performance of the group itself.
Group Property 1: Role-The set of expected behavior patterns that are attributed to occupying
a given position in a social unit.
✔ Role perception– our view of how we’re supposed to act in a given

situation ✔ Role expectations– how others believe you should act in a given
situation ✔ Role conflict– conflict experienced when multiple roles are
incompatible
Group Property 2: Norms-Acceptable standards of behavior within a group that are shared by
the group’s members.

Powerful means of influencing behavior
✔ Performance norms
✔ Appearance norms
✔ Social arrangement norms
✔ Resource allocation norms
The Hawthorne studies were conducted in the 1920s and 1930s. This research has
been widely used in the understanding of group interactions. These studies found that worker
behavior was highly influenced by group norms and that individual productivity was influenced
by the standards the group set forth. Also, money was not as important in determining worker
output as group standards and sentiments were.
The Asch studies, which were conducted in the early 1950s, found that groups can
encourage members to change their attitudes and behaviors to be more in line with those of the
other group members. Since this research was done, new studies show that levels of conformity
have been steadily declining, and that Asch’s findings were specific to the United States. In
general, though, conformity tends to be greater in collectivist cultures.
Deviant Workplace Behavior: Voluntary behavior that violates significant organizational
norms and, in doing so, threatens the well-being of the organization or its members
Group Property 3: Status- A socially defined position or rank given to groups or group
members by others.
Determined by:
✔ The power a person wields over others
✔ A person’s ability to contribute to a group’s goals
✔ An individual’s personal characteristics
Status can have an impact on a few things in groups.
First, it can impact norms within a group where high-status members don’t feel the need
to conform to group norms but can pressure others to conform.
Second, it can impact group interaction where members who hold more status tend to
be more assertive and can hinder new ideas being presented.
Finally, it impacts perceived equity in a group, which will influence how engaged others
are in the group process.
Group Property 4: Size- Size is an important factor in group behavior as well and impacts the
behavior in groups. The larger the group, the harder it is to get contributions from all members in
a timely manner. In contrast, small groups can be limited in their problem-solving ability and the
availability of resources could be limited. There are some detrimental behaviors that can occur
around group size. For example, as groups get larger, social loafing can occur. Some
individuals may put in less effort because they think others in the group will make up for them.
Group Property 5: Cohesiveness- The degree to which members of the group are attracted to
each other and motivated to stay in the group
❖ Performance-related norms are the moderating variable for productivity and cohesiveness
✔ High cohesiveness with high norms gives higher productivity

Encouraging Cohesiveness
1. Make the group smaller
2. Encourage agreement with group goals
3. Increase the time spent together
4. Increase the status and perceived difficulty of group membership
5. Stimulate competition with other groups
6. Give rewards to the group rather than to individual members
7. Physically isolate the group
Group Property 6: Diversity- refers to the degree to which members of a group are similar or
different from one another. These differences, which may be cultural or demographic, can
increase group conflict in the short term, but once the conflicts are resolved, the group may
actually perform better than a non-diverse group.
❖ Faultlines: perceived divisions that split groups into two or more subgroups based on
individual differences such as gender, race, age, work experience, and education ✔
Splits are generally detrimental to group functioning and performance.
❖ Groupthink: relates to norms and describes situations in which group pressures for
conformity deter the group from critically appraising unusual, minority, or unpopular
views. A common problem with groups is groupthink. This occurs when the group is
seeking conformity and there is pressure to come to a conclusion without critically
appraising alternative viewpoints.
Groupthink, a term coined by Janis (1972). Janis used the analysis of historical decisions
to show how decision-making processes can go wrong.
Groupthink occurs when group members' desire to maintain good relations becomes
more important than reaching a good decision. Instead of searching for a good answer, they
search for an outcome that preserves group harmony. This leads to a bad decision that is then
accompanied by other actions designed to insulate the group from corrective feedback.
Members are more likely to engage in groupthink when they tend to rationalize away any
resistance to assumptions, and they feel pressure to support the majority. Doubters tend to keep
silent and minimize their thoughts on what might be wrong with a proposed solution, and the
rest of the group interprets this to be a yes vote.
Groupthink can be minimized by limiting the group size, having a leader who actively
seeks input from all members, and by appointing a devil’s advocate, or someone who is always
trying to look at things from a different perspective.
❖ Group-shift: describes the way group members tend to exaggerate their initial positions
when discussing alternatives and arriving at solutions. Another phenomenon in the group
decision-making process is group shift, where once a solution is selected, group
members tend to exaggerate the initial positions that they hold. This can cause a shift to
a more conservative or risky decision.
Group Decision-Making Techniques

✔ Interacting groups- Meet face to face and rely on verbal and non-verbal interactions to
communicate
✔ Brainstorming-Generates a list of creative alternatives

Problem: production blocking
✔ Nominal Group Technique (NGT)- Restricts discussion during the decision-making
process to encourage independent thinking. Allows a group of people to focus on the task of
making a decision without developing any social relations. It is called nominal because it
does not require a true group. This technique can be used by a collection of people who are
brought together to make a decision.
✔ Delphi Technique uses a series of written surveys to make a decision. A group of

experts is given a survey containing several open-ended questions about the problem to
be solved. The results of this survey summarized and organized into a set of proposed
solutions. These solutions are sent to the participants, who are then asked to comment
on the solutions, which are based on the first survey. The process is repeated until the
participants start to reach agreement on a solution to the problem.
✔ Ringi Technique - is a Japanese decision-making technique used for dealing with

controversial topics.
■ It allows a group to deal with conflict while avoiding a face-to- face confrontation.
Sample in Evaluating Group Effectiveness
This exhibit shows that an interacting group is good for achieving commitment to a
solution, brainstorming develops group cohesiveness, and the nominal group technique is an
inexpensive means for generating a large number of ideas.
ACTIVITY: Riddle Me This!

Choose a fighter per team and the one who guess those given riddles within 10 mins. is
the winner.
• What comes once in a minute, twice in a moment, but never in a thousand years? • You
see a boat filled with people. It has not capsized, but when you look again you don't see a
single person on the boat. Why?
• What always ends everything?
• I have keys, but no locks. I have space, but no room. You can enter, but you can’t go
outside. What am I?
• I have seas without water, coasts without sand, towns without people, and mountains
without land. What am I?
V. ASSESSMENT
Fill in the blanks.

1. ______________ refers to the degree to which members of a group are similar or
different from one another.
2. ______________the first group where the organization establishes the group with
defined work tasks and outcomes.
3. ______________ our view of how we’re supposed to act in a given situation. 4.
______________ studies found that worker behavior was highly influenced by group
norms.
5. ______________ some individuals may put in less effort because they think others
in the group will make up for them.
6. ______________ allows a group of people to focus on the task of making a
decision without developing any social relations.
7. ______________ describes the way group members tend to exaggerate their
initial positions when discussing alternatives and arriving at solutions.
8. _______________ occurs when group members' desire to maintain good relations
becomes more important than reaching a good decision.
9. _______________ refers to perceived divisions that split groups into two or more
subgroups based on individual differences such as gender, race, age, work
experience, and education
10. _______________ studies found that groups can encourage members to change
their attitudes and behaviors to be more in line with those of the other group
members.
VI. SUMMARY
Groups are defined as two or more individuals who come together to achieve a set goal.
There are two main types of groups as either formal group or informal groups can have a
significant influence on behavior and performance.
Groups develop in a standardized five stage model consisting of: The forming stage,
storming stage, norming stage, performing stage and adjourning stage.
Work groups have properties including roles, norms, status, size, and cohesiveness that
shape the behavior of members. Group properties includes role, norms, status, size,
cohesiveness and diversity.
Hawthorne studies found that worker behavior was highly influenced by group norms
and that individual productivity was influenced by the standards the group set forth. Asch
studies found that groups can encourage members to change their attitudes and behaviors to
be more in line with those of the other group members.
Deviant Workplace Behavior: Voluntary behavior that violates significant organizational
norms and, in doing so, threatens the well-being of the organization or its members
Groupthink: relates to norms and describes situations in which group pressures for
conformity deter the group from critically appraising unusual, minority, or unpopular views. A
common problem with groups is groupthink.
Group-shift: describes the way group members tend to exaggerate their initial positions
when discussing alternatives and arriving at solutions. Another phenomenon in the group
decision-making process is group shift, where once a solution is selected, group members tend
to exaggerate the initial positions that they hold. This can cause a shift to a more conservative or
risky decision.
The techniques used in group decision-making are: interacting groups, brainstorming,
nominal group technique, delphi technique and ringi technique.
Chapter 10: Understanding Work Teams

1. Analyze the growing popularity of teams in organizations.
2. Contrast groups and teams.
3. Contrast the five types of teams.
4. Identify the characteristics of effective teams.
5. Show how organizations can create team players.
6. Decide when to use individuals instead of teams.
II. INTRODUCTION
Teams are increasingly becoming the primary means for organizing work in
contemporary business firms. Understanding how and when to create these work teams is the
purpose of this chapter.
III. LESSON PROPER
What Is a Team? The word team is used to describe a wide assortment of human aggregations.
For example, in business settings, work units are sometimes referred to as production teams or
management teams. At a university, professors and graduate students may form a research
team to conduct experiments cooperatively. In the
military, a small squad of soldier's train as a
special operations team.
In schools, a teaching team may handle the
education of 500 students. In multiplayer
games, people use computers to join
carefully composed teams to try challenges
(“instances”) that require the skills of many
types of characters. Over the last decade we
have seen the use of teams grow
exponentially in organizations. There are a
number of reasons why this is true. Teams can enhance the use of employee talents and tend
to be more flexible and responsive to change. Teams can help to keep employees engaged in
their work and increase their participation in decision making, thus increasing their motivation.
However, teams are not always effective, and so it is important to take a look at how to deploy
teams effectively.
Work group: Interacts primarily to share information and to make decisions to help one another
perform within each member’s area of responsibility
Work team: Generates positive synergy through coordinated effort; individual efforts result in a
level of performance that is greater than the sum of those individual inputs
Work groups and work teams differ on their goals, level of synergy, accountability, and
skills. Their function is different. Work groups share information while work teams work together
for a collective performance. The synergy in groups is neutral whereas work teams have a
positive synergy. Accountability can be individual in both, but it is more often mutual in teams.
The skills in a group can be varied whereas the skills on a team need to be complementary.
Different Types of work teams, Teams come in a wide variety of forms, and they fulfill
many different functions in military, educational, industrial, corporate, research, and leisure
settings. A general distinction, however, can be made between teams that process information
and teams that plan, practice, and perform activities (Devine, 2002). Table 12.1 offers an even
more fine-grained analysis of teams within these two general categories, distinguishing between
management, project, and advisory teams within the information cluster and service, production,
and action teams within the performance cluster.
■ Executive teams and command teams such as administrative units, review panels, boards of
directors, and corporate executive teams, are management teams. They identify and solve
problems, make decisions about day-to-day operations and production, and set the goals for the
organization’s future.
■ Project teams, or cross-functional teams, include individuals with different backgrounds and
areas of expertise who join together to develop TEAMS 353 Copyright 2009 Cengage Learning.
All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. innovative
products and identify new solutions to existing problems. These teams are extremely common in
organizational settings, for they often are composed of individuals from a variety of departments
and are deliberately organized to reduce the lack of communication that isolates units within the
overall organization.
Negotiation teams represent their constituencies; commissions are special task forces that
make judgments, in some cases about sensitive matters; and design teams are charged with
developing plans and strategies.
■ Advisory teams, such as review panels, quality circles, and steering committees are
sometimes called parallel teams because they work outside the usual supervisory structures of
the company. ■ Work teams, such as assembly lines, manufacturing teams, and maintenance
crews, are responsible for the organization’s tangible output; they create products (production
teams) or deliver services (service teams). Some of these teams can also be considered action
teams.
■ Action teams include sports teams, surgery teams, police squads, military units, and
orchestras. All are specialized teams that generate a product or a service through highly
coordinated actions (Devine, 2002; Sundstrom et al., 2000).
Four Types of Teams
❑ Problem-solving teams are a very popular method used in many organizations. Typically
this type of team meets for a few hours each week to solve a particular problem.
Members often from the same department. Share ideas or suggest improvements.
Rarely given authority to unilaterally implement any of their suggested actions.
❑ Self-managed work teams are comprised of a group of people who perform highly
related or inter-dependent jobs and take on the responsibilities of their former
supervisors. Team takes on supervisory responsibilities: Work planning and scheduling,
assigning tasks, Operating decisions/actions, working with customer. The effectiveness
of this type of group greatly depends on the situation and the goals of the group.
❑ Cross-functional teams gather workers from many different work areas to come together
to accomplish a task that needs to utilize multiple perspectives. This type of group is
good at developing new ideas and solving problems or coordinating complex projects.
Given that their tasks are normally complex and diverse, it may take some time for the
group to develop into an effective and productive team.
❑ Virtual teams are increasing in their use. This type of team uses computer technology to
bring people together to achieve a common goal. Typically, these types of teams get right
to work with little socializing but need to overcome time and space constraints to
accomplish the task. In order to be effective, virtual teams need to find ways to establish
trust among the members, have close monitoring, and results need to be publicized.
Dispersing information can be challenging. Research shows that virtual teams are better
at sharing unique information, but they tend to share less information overall. It can also
be challenging to find the best amount of communication. Low levels of virtual
communication can mean high levels of information sharing, but high levels of virtual
communication can hinder information sharing.
Multi-team systems perform better when they have “boundary spanners” whose job is to
coordinate with members of other sub-teams. Multi-team systems can be the best choice when
teams are too large to be effective, or when teams with distinct functions need to be highly
coordinated.
The three key components of effective teams are context, composition, and process variables.
Next we will look at each one of these
components individually.
Context Factors in Team Success
✔ Presence of adequate resources
✔ Effective leadership and structure
✔ Climate of trust in the team
✔ Performance evaluation and reward system that reflects team contributions
Team Composition and
Success
A manager must pay close
attention to how a team is put together to
assure group cohesiveness and
effectiveness. Each member should be
selected based on the type of skills and
abilities needed to accomplish the task at
hand. However,
abilities are not the only characteristic that
managers need to pay attention to;
personality is also important so that the
team can bond and form trust.
In addition, the manager must be
sure he assigns the right people to fill the
roles needed, but maintain adequate
diversity so that idea generation still occurs.
The manager must also pay attention to the
size of the team and ensure that members want to be on the team and enjoy teamwork.
Organizational demography suggests that diversity in attributes such as age or the date of
joining should help us to predict turnover.
1. Abilities of Members 3. Allocation of roles

a. Technical Expertise 4. Diversity of Members
b. Problem Solving a. Organizational Demography
c. Interpersonal 5. Size of Teams
2. Personality of Members a. 6. Member Preferences
Conscientious and
Openminded
Team Process and Success
Teams should create outputs greater than the sum of their inputs. This exhibit shows
how group processes can have an impact on a group’s actual effectiveness.
A team’s processes can have a big impact on its effectiveness. Teams must have a
strong commitment to a common purpose that provides direction, but yet incorporates reflexivity
so that plans can be adjusted if necessary. The goals of the team must be set up, so they are
specific, measurable, and realistic yet challenging in order to keep the team members engaged.
Members must believe they can succeed and have a mental map of how to get the work
done to assist in the process of accomplishing their task.
Finally, members must navigate through conflict and social loafing to encourage a healthy and
effective group.

TURNING INDIVIDUALS INTO TEAM PLAYERS
Team players are indispensable human assets of many organizations, and these
organizations would want to make sure that they are available when their services are needed.
An important concern, however, is to turn individuals into team players. The available options
consist of the following:
❑ Selection: Need employees who have the interpersonal as well as technical skills
❑ Training: Workshops on problem-solving, communications, negotiation, conflict

management, and coaching skills
❑ Rewards: Encourage cooperative efforts rather than individual ones
If your team needs motivation activities to sharpen their communication skills, this game
is an easy way to encourage that! You can play this game in pairs of 2 partners or in small
groups. The aim of the game is for one person to describe a random image and have their
partner or group draw what is being described. This activity to motivate employees can give
your team great insight into how people might interpret directions differently. If you need a fun
office game for employees, you’ll want to pick this idea. Time Required: 20 minutes Materials
Needed:
• Random images that can be verbally described
• Pens or markers
• Sheets of paper
How to Play: One person will receive a random image. They will be tasked with
describing what they see to their partner or small group. Without seeing the image or asking
questions, the group must draw the image based on the verbal descriptions they receive. Give
your teams around 10 minutes to draw, and 10 minutes to reveal their drawings and talk about
how communication could be improved for next time.
V. ASSESSMENT
I. Find and Choose the correct answer inside the box. Write the letter only in the blank before
the number.
A. Context B. Composition C. Process
_________ 1. Allocating roles
_________ 2. Social loafing
_________ 3. Leadership and structure
_________ 4. Conflict levels
_________ 5. Climate of trust
_________ 6. Size of teams
_________ 7. Common purpose
_________ 8. Adequate resources
_________ 9. Diversity

_________ 10. Specific goals
II. Answer the following:

1. Recall the time when you were at school and your teacher told the class to create
groupings for a specific project. Each group should also select a leader or set of officers to
make the project more efficient. Unfortunately, despite your efforts, your project was a
failure…Share your story and answer the following questions: ✔ What was the project all
about?
______________________________________________________________________
__________________________________________________________ ✔ What was your
role in the project?
______________________________________________________________________
__________________________________________________________ ✔ How can you
describe your group members and your leaders?
______________________________________________________________________
__________________________________________________________ ✔ Did your group
met problems or conflict while doing your project?
______________________________________________________________________
__________________________________________________________ ✔ How did your
group solve it?
______________________________________________________________________
__________________________________________________________ ✔ Which part did
your group fall short that caused the project unsuccessful?
______________________________________________________________________
__________________________________________________________ ✔ If you will be in
the same scenario, what would you do to make it successful?
_____________________________________________________________________
_ __________________________________________________________
2. Write a short story about your favorite sports and the specific team you cheered on every
time they are playing. Describe the role of each member how they are doing their part in
the game. Does this team always win and what do you think is their strategy/ies in
winning? When the odds are on their side, how do they resolve it?
VI. SUMMARY
Team is used to describe a wide assortment of human aggregations. Work group:
Interacts primarily to share information and to make decisions to help one another perform
within each member’s area of responsibility Work team: Generates positive synergy through
coordinated effort; individual efforts result in a level of performance that is greater than the sum
of those individual inputs. Different types of work teams are: Executive teams and command
teams, Project teams, or cross-functional teams, Negotiation teams, Advisory teams, Work
teams and action teams. Teams may be classified as Problem-solving teams Self-managed
work teams Cross-functional teams’ virtual teams Multi-team systems perform better when they
have “boundary spanners” whose job is to coordinate with members of other sub-teams. The
three key components of effective teams are context, composition, and process variables.
Context Factors in Team Success includes the presence of adequate resources, Effective
leadership and

structure, Climate of trust in the team and Performance evaluation and reward system that
reflects team contributions. A manager must pay close attention to how a team is put together
to assure group cohesiveness and effectiveness. Each member should be selected based on
the type of skills and abilities needed to accomplish the task at hand.
Organizational demography suggests that diversity in attributes such as age or the date of
joining should help us to predict turnover such as the abilities of members, and personality of
members. The potential problems of teams consist of changing membership and social loafing.
Individuals may be developed into team players by means of selection, training, and rewards.
Chapter 11: Communication

1. Understand the communication process and formal and informal communication.
2. Explain downward, upward, and lateral communication.
3. Know how to compare and contrast formal small-group networks and the grapevine
4. Understand oral, written, and nonverbal communication.
5. Explain how channel richness underlies the choice of communication channel. 6.
Understand the differences between automatic and controlled processing of persuasive
messages.
7. Know common barriers to effective communication.
8. Show how to overcome the potential problems in cross-cultural communication.
II. INTRODUCTION
In order to be successful, managers must be able to communicate effectively. This

chapter describes the communication process and the various ways managers communicate to
employees. Additionally, barriers to communication are presented.
III. LESSON PROPER
Communication is the process of transmitting information and common understanding

from one person to another (Keyton, 2011). In another study According to Fred Lunenburg,
communication from studies is important, because every administrative function and activity
involves some form of direct or indirect communication.
The Communication Process

This graph outlines the communication process between the sender and the receiver.
The sender encodes the ideas by selecting words, symbols, or gestures with which to compose
a message. The message is the outcome of the encoding which takes the form or verbal
nonverbal or written language. The message is sent through a medium or channel, which is
the carrier of communication. The medium can be face-to-face conversation, telephone call,
email, or written report. The receiver decodes the received message into meaningful
information.
Sometimes during the transmission of a message, distortion happens from the sender to
the receiver which we call noise. Noise is anything that distorts a message (different perception
of the message, language barriers, interruptions, emotions, attitudes and even how we interpret
one’s message)
Lastly feedback allows the sender to determine whether the message has been received and
understood.
The communication process consists of a sender who encodes a message and

transmits it through a channel to a receiver who decodes it and may give feedback. Exhibit 5.3
illustrates the communication process. Below is a brief explanation of each step in the
communication process; you will learn the details of each step-in separate sections of this
chapter.
In step 1, the sender encodes the message and selects the transmission channel. The
sender of the message is the person who initiates the communication. Encoding is the sender’s
process of putting the
message into a form that
the receiver will
understand. The
message is the physical form of the
encoded
information. The message is
transmitted through a
channel. The three primary
communication channels
you can use are oral, nonverbal,
and written. See
Exhibit 5.4 for the various transmission channel options.
When selecting a channel, you need to remember that
people do have different preferences for example,
many younger people like to text, whereas older people
do not.
In step 2, the sender transmits the message

through a channel. As the sender, after you
encode the message and
select the channel, you transmit the
message through the channel to one or
more receivers.
In step 3, the receiver decodes the message

and decides whether feedback is needed.
The person receiving the message decodes
it. Decoding is the receiver’s process of
translating the message into a meaningful

form. We all decode words so that the message makes sense to us. The receiver decides if
feedback, a response, or a new message is needed.
There are a few different channels of communication in the workplace. The first type is
formal channels. These channels transmit messages that are related to the professional
activities of the members, such as email, memos, and planned speeches. The second type is
informal channels, used to transmit personal or social messages. This channel is more
spontaneous in nature and a result of individual choices such as who you eat lunch with.
Direction of
Communication
In an organization
Downward Communication
Lateral
communication flows in three
different directions. It can flow
downward from the top
management to people in
lower levels of the
organization. It can flow up
from workers on the ground
Upward floor to the CEO or it can flow
Downwardbetween or within departments
in a lateral movement.
✓ Is that of superior to subordinate or management to employees □ One-way

communication
✓ Managers explain why a decision was made, but do not solicit advice or
opinions of employees
Upward Communication
✓ Is a communication of subordinates to superior or of employees to managers ✓ Keeps
managers aware of how employees feel about their jobs, coworkers, and the organization
Lateral Communication
✓ Communication that occurs between members of a work group, members at the same
level in separate work groups, or any other horizontally equivalent workers o Saves
time and facilitates coordination
Formal Small-Group Networks

In an organizational context communication is commonly broken down into three formal small
group networks.

❑ The chain is a very formal and rigid chain of
command. Employees know who the next person in
the chain is and that is where they give and get their
information.
❑ The wheel is a network where there is a central
figure who controls all the communication. This type of group requires a very strong
leader who can communicate effectively.
❑ The all-channel network is a much more fluid arrangement where all group members
communicate actively with each other and there is no formal channel or single person.
This works best in a situation such as a self-managed team.
The effectiveness of each network depends on

the dependent variable that concerns you.
The Grapevine
The grapevine an unofficial, informal communication and not controlled by management
nor do they feed it information. However, employees see it as a very believable and reliable
form of communication. The grapevine has no formal purpose but is mainly there to serve the
self-interests of those who use it, developing from a need for these individuals to get more
information about an important, but ambiguous situation. The grapevine can be a way to receive
information about the situation and reduce anxiety as well as fill a social need to connect.
• Gossip Grapevine -a pattern of grapevine communication in which a message is passed to
only a select group of individuals.
MODES OF COMMUNICATION
Three modes of communication
Oral Communication - A primary means of conveying messages. Speeches, formal

one-on-one and group discussions, and the informal rumor mill or grapevine are popular
communications.
✓ Advantages o Speed
o Feedback
o Simple to correct
✓ Disadvantages o Potential for distorted message when passed through a number of

people

Written Communication - Includes letters, e-mails, instant messaging, organizational
periodicals, and any other method that convey written words or symbols.
✓ Any method that conveys written words or symbols

✓ The longest lasting form of communication
Nonverbal
✓ Body language conveys

o The extent of affinity for another
o The relative perceived status between a sender and receiver
✓ Meaning changes with

o Intonation o Facial expression o Physical distance
Channel Richness
Channel Richness is the amount of

information that can be transmitted during a
communication episode. It transmits the
most information per
communication episode – multiple
information cues (words, postures, facial
expressions, gestures, intonations),
immediate feedback (both verbal and
nonverbal) and the personal touch of being
present.
Choosing Communication Method

The choice of channel depends on whether the message is routine.
Routine messages tend to be straightforward and have minimal ambiguity. Nonroutine
communication are likely complicated and have the potential for misunderstanding.
Choosing your mode of communication is not always easy to know when to choose oral
rather than written communication. Your communication choice is worth a moment’s thought: Is
the message you need to communicate better suited to a discussion, or a diagram?
Also consider the receiver’s preferred mode of communications; some individuals focus
on content better in written form and other prefer discussion.

PERSUASIVE COMMUNICATION
❑ Automatic processing: superficial consideration of evidence and information making
use of heuristics
o Takes little time and minimal

effort
o But, it’s easy to be fooled
❑ Controlled processing: detailed consideration of evidence and information relying on

facts, figures, and logic
o Requires effort and energy

o But, less likely to be fooled
Barriers to Effective Communication
• Now that we have a foundation in organizational structure and communication flow

organization wide, for the rest of the chapter, let’s focus more on interpersonal
communications, which are often between two people. In this section, we begin with an
explanation of the communication process, followed by barriers to communications. Next
we discuss differences in communications between genders, and end with difference by
culture.
There are a number of barriers to effective communication that can distort the message being
sent. Let’s look at a few of those.
• Physical Barriers – distances between people, could be because of a wall, internet
connection, signal from different networks. Is the environmental and natural condition
that act as barrier in communication in sending message from sender and receiver
• Sematic Barriers – the words we choose, how we use them and the meaning we attach
to them cause many communication barriers. o Ex. Increased efficiency, management
prerogatives
• Psychosocial Barriers – associated with psychological and social barriers o Experience
– different sets of values, beliefs and perception of different individuals o Filtering – we
see and hear what we are emotionally tuned in to see and hear o Psychological
distance between people that is similar to actual physical distance
▪ Example – The school administrator talks down to a staff member, who

resents this attitude, and this resentment separates them, thereby
blocking opportunity for effective communication
• Major areas where communication breakdown most frequently:

o Sincerity – is the foundation on which all true communication rests. Without
sincerity-honesty, straightforwardness, and authenticity- all attempts at
communication are destined to fail.

o Empathy – research shows that lack of empathy is one of the major obstacle to
effective communication. o Role Perception – Unless people know what their
role is (most especially in an organization or in a group), the importance of their
role, and what is expected of them, they will not know what to communicate,
when to communicate, or to whom to communicate.
o Self-Perception – how we see ourselves affects our ability to communicate
effectively
o Culture – our cultural heritage, biases, and prejudices often serve as barrier to
communication.
▪ Filipino often communicate indirectly in order to prevent a loss of

face(muhka) and evoking hiya on either side of an exchange. They tend to
avoid interrupting other and are more attentive to posture, expression and
tone of voice to draw meaning.
▪ Filipinos rarely give a direct answer of ‘no’ and will avoid disagreement,
rejection and confrontational behavior, especially when a superior is
involved.
o Listening – frequently, people fail to appreciate the importance of listening, do not
care enough to become actively involved with what others are saying, and are not
sufficiently motivated to develop the skills necessary to acquire the art of
listening. o
Analyzing Your Organization (Cumulative Project). Discuss with various members of your
organization where they think the communication breakdowns occur, either in their department
or in the organization itself. Analyze their answers in the context of the communications model.
Where in the process do you feel these breakdowns tend to occur most often? Write up your
results and prepare suggestions on “fixing” the process in your organization. If your instructor
directs, be ready to share your suggestions in class.
V. ASSESSMENT
MULTIPLE CHOICE
________1. Juan here is the report you asked me to complete. Let me know if I need to
make any changes.
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
________2. “Jackson, I just closed a larger sales order with Tyson, but I had to guarantee
delivery by next Tuesday. Can you produce 100 units on time?
_______3. “Hi Tyler, please take this over to the mail room right away for me”
_______4. “Jamal, have you heard that President Flynn is using the company jet to take his
mistress out on dates?

_______5. “Judy, will you please hold this so I can put it together-the way I help you all the
time”
_______6. A type of channel that used to transmit personal or social messages.
a. Formal Channel b. Informal Channel c. Channel ________7. A
Communication that flows to a higher level.
a. Upward Communication b. Lateral Communication c. Channel
________8. A Communication that flows from one level to a lower level.
a. Upward Communication b. Channel c. Downward Communication ________9. A
network which is very formal and rigid chain of command. a. The Chain b. The All-Channel
c. The Wheel ________10. It is a superficial consideration of evidence and information
making use of heuristics.
a. Controlled Processing b. The Chain c. Automatic Processing
II. Select the most appropriate channel for each message

a. Face-to-Face b. Telephone c. Meeting d. Presentation
e. Memo f. Letter g. Report h. Poster
________1. An employee came in late for work again today. This is not acceptable behavior
and needs to stop.
________2. The supervisors is getting together with a few employees to discuss a new
procedure that will be going into effect in a week
________3. Shelly, the supervisor, is expecting needed material for production this
afternoon. She wants to know whether it will arrive on time to make the product
________4. Employees have been leaving the lights on when no one is in the break room.
As the manager concerned for saving electricity, you want employees to shut off the light
when they leave
_______5. The boss asked for the sales data for the quarter.
VI. SUMMARY
✓ Remember that your communication mode will partly determine your communication
effectiveness.
✓ Obtain feedback from your employees to make certain your messages are understood.
✓ Remember that written communication creates more misunderstandings than oral
communication.
✓ Make sure you use communication strategies appropriate to your audience and the type
of message you’re sending.
✓ Keep in mind communication barriers such as gender and culture.
Keep in Mind…
✓ Each communication direction has its own challenge that must be overcome

✓ Each form of communication has an optimal purpose and specific limitations – use
appropriately
✓ Communication barriers often retard or distort communication
Chapter 12: Leadership
I. LEARNING OUTCOMES

1. Understand the differences between leadership and management;
2. Learn the different central tenets and main limitations of behavioral theories and
contingency theories of leadership; and
3. Becoming an effective leader in the organization
II. INTRODUCTION
Leaders help themselves and others to do the right things. They set direction, build an
inspiring vision, and create something new. Leadership is about mapping out where you need to
go to "win" as a team or an organization; and it is dynamic, exciting, and inspiring. Yet, while
leaders set the direction, they must also use management skills to guide their people to the right
destination, in a smooth and efficient way.
III. LESSON PROPER
LEADERSHIP is the ability to influence a group toward the achievement of goals. A

leader does not have to be someone who holds a formal position or title. Leaders can emerge
from a group and provide vision and motivation to those around them. They are critical in
helping people cope with change by establishing direction that relates to the vision. In order to
achieve the vision, they align resources and inspire workers to work toward organizational
goals.
Management deals with the complexity of the organization and works with planning,
organizing, leading, and controlling to bring about order and consistency in the organization.
Even though the two roles have different areas of focus, both are necessary for organizational
success. TRAIT THEORIES of Leadership focus on personal qualities and characteristics
Big Five Personality Framework
✔ Extraversion has strongest relation to leadership

✔ Conscientiousness and Openness to Experience also strongly related to leadership ✔
Agreeableness and Emotional Stability are not correlated with leadership ✔ Emotional
Intelligence is correlated with leadership; however, this link is underinvestigated
Two conclusions:
1. Traits can predict leadership
2. Traits do a better job predicting the emergence of leaders and the appearance of
leadership than distinguishing between effective and ineffective leaders
BEHAVIORAL THEORIES of leadership- we can determine leadership effectiveness by leader

behavior, and perhaps train people to be leaders
✔ Behaviors can be taught – traits cannot ✔
Leaders are trained – not born
✔
Two key studies of leadership
The Ohio State Studies

Michigan Studies and satisfaction
Attempts to organize
work, work relationships, and
Initiating
goals The University of
Structure Consideration
Concern for followers’
comfort, well-being, status,
Emphasize the technical or the task Emphasize interpersonal are
Production Employee
aspects of the job. means to an end and accept
CONTINGENCY THEORIES of
leadership
Oriented
Oriented
individual differences
■ Fiedler leadership model: Effective group performance depends on the proper match
between the leader’s style and the degree to which the situation gives the leader control In this
theory Fielder is trying to match the leader to the context. He proposes that leadership style is
fixed. So, if the situation demands a charismatic leader and your current leader does not exhibit
that style, you need to change leaders. This leadership style can be determined by taking the
LPC questionnaire (least preferred co-worker).
After the leadership style is determined, you can match the leader to the situation. There are three
dimensions to find a successful match.
• The first situational factor is the leader-member relationship; this tie back to our behavioral
studies by looking at the degree of trust and respect employees have for the leader. • The
second factor is the amount of structure that is embedded in job assignments. • The last factor
is the amount of influence the leader has over decisions that represent power such as hiring,
firing, and rewards. (Position Power)
In Fiedler’s model you need to find a leader to fit the situation or change the situation to fit the leader
in order to achieve effective leadership for the organization.
■ Situational leadership theory (SLT): successful leadership depends on selecting the right
leadership style contingent on the followers’ readiness to accomplish a task
1. Unable and unwilling
2. Unable but willing
3. Able but unwilling 4. Able and willing
78
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Human Behavior in Organization

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REPUBLIC OF THE PHILIPPINES

Polytechnic University of the Philippines

Christ Michael C. Entienza, MPsy, RPm,

Why do people behave a certain way in an organizational environment? What factors

Chapter 1: What is Organizational Behavior? - 1 Chapter 2: Diversity in

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:

III. LESSON PROPER

1. The Importance of Interpersonal Skills

❖ Good people skills are important

Starbucks, Adobe Systems, Cisco, Whole Foods, Google, American Express,

✔ Developing managers’ interpersonal skills helps attract and keep high-performing

A survey of hundreds of workplaces showed the social relationships among co-workers

HUMAN BEHAVIOR IN ORGANIZATION 1

2. What Managers Do?

❖ Organization is a consciously coordinated social unit, composed of 2 or more people

HUMAN BEHAVIOR IN ORGANIZATION 2

Interpersonal – duties that are ceremonial and symbolic.

HUMAN BEHAVIOR IN ORGANIZATION 3

3. The Field of Organizational Behavior

WORK means exertion or effort directed to produce or accomplish something. Ex–

PERFORMANCE – is made-up of all work-related factors.

HUMAN BEHAVIOR IN ORGANIZATION 4

4. Complementing Intuition with Systematic Study

Evidence-Based Management (EBM) complements systematic study by applying

Using big data for managerial practices:

5. Contributing Disciplines to the OB Field

HUMAN BEHAVIOR IN ORGANIZATION 5

SITUATIONAL or CONTINGENCY VARIABLES – variables that moderate the relationship

HUMAN BEHAVIOR IN ORGANIZATION 6

and accurate generalizations Contingency Variable (Y)

Human beings are complex

Insulting - “Up Yours!”

contingency variables Up” Sign

❖ Challenges and Opportunities for OB

Responding to globalization- As foreign assignments increase, you will need to be able to

Managing workplace diversity-the concept that organizations are becoming more

HUMAN BEHAVIOR IN ORGANIZATION 7

Improving people skills

Stimulating Innovation and Change-The challenge for managers is to stimulate their

• Domino’s pizza – single-handedly

Coping with Temporariness- Globalization, expanded capacity and advances in technology

• Communication of employees even though they may be miles apart.

Creating a positive work environment- Positive organizational behavior is a growing interest

HUMAN BEHAVIOR IN ORGANIZATION 8

❖ Three Levels of OB Analysis

In Organizational Behavior (OB) we utilize the

IV. ACTIVITIES / EXERCISES

Answer in an essay format.

MODIFIED TRUE OR FALSE

HUMAN BEHAVIOR IN ORGANIZATION 9

MULTIPLE CHOICE 2) Which of the following is not a core topic

HUMAN BEHAVIOR IN ORGANIZATION 10

Chapter 2: Diversity in Organizations

I. LEARNING OBJECTIVES / OUTCOME

After studying this chapter, you should be able to:

HUMAN BEHAVIOR IN ORGANIZATION 11

HUMAN BEHAVIOR IN ORGANIZATION 12

5. Other Biographical Characteristics

(3) Sexual Orientation is an inherent or immutable enduring emotional, romantic or sexual

HUMAN BEHAVIOR IN ORGANIZATION 13

✔ Physical Abilities– the

❖ Attracting, Selecting, Developing, and Retaining Diverse Employees To enhance

✔ Leverage differences for superior performance – The most important way is to