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LEADERSHIPS &

ORGANIZATIONAL BEHAVIOR

Joko Mulyanto
DEPT. OF PUBLIC HEALTH AND COMMUNITY MEDICINE
FACULTY OF MEDICINE
UNIVERSITAS JENDERAL SOEDIRMAN
POWER, AUTHORITY &
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INFLUENCE
◻ Power is the ability to influence decisions and
control resources, it’s the potential to exert the
influence.
◻ Authority is the right inherent in a managerial
position to make decisions and control resources.
◻ Influence is the effect of someone has on others that
causes them to change their behavior and or
motivation.

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SOURCE OF AUTHORITY
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THE CLASSICAL VIEW THE ACCEPTANCE VIEW


OF AUTHORITY OF AUTHORITY
◻ Top-down ◻ Bottom-up
◻ Hierarchical ◻ Employee decide to
◻ Organization derives its comply the order or not,
authority from its depends on the order
stakeholders, and in turn legitimate or not.
grants its manager formal ◻ Zone of indifference
authority to carry out
specific responsibilities.
◻ Employee have an
obligation to follow
directives from their
above.
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SOURCE OF POWER
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J French & B Raven :


◻ Legitimate power
◻ Reward power POSITION
◻ Coercive power
POWER

◻ Expert power
◻ Referent (charismatic) power
PERSONAL
POWER

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SOURCE OF POWER (cont’d)
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◻ Power from providing resources (resource


dependence).
◻ Information power.
◻ Decision-making power
◻ Association power.

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THE MEANING OF LEADERSHIP
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◻ Leaderships in most definitions defined as a process


of influencing people to achieve particular goals.
◻ Are leaders different with managers ?
◻ “ Managers are people who do the things right and
leaders are people who do the right thing .“
◻ The difference may be summarized as activities of
vision and judgment-effectiveness (leading) versus
activities of mastering routine-efficiency
(managing).

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KOTTER’S DISTINCTION BETWEEN
MANAGERS AND LEADERS
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Three Basic Tasks LEADERS MANAGERS


Coping with change Coping with complexity

Deciding what Setting a Planning &


needs to be done direction Budgeting

Creating network Aligning people


Organizing & Staffing
and relationships to the vision

Controlling &
Ensuring people do Motivating
Problem Solving
the job people

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APPROACHES TO STUDY
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LEADERSHIP
◻ The study of leadership has followed several paths,
many approaches and perspectives.
◻ Leadership only can be understood by integrating
several theories or conceptual approaches.
◻ These perspectives or approaches include traditional
/ classical theories of leadership ( trait, behavioral,
situational) and modern theories of leadership
( transformational, romance, charismatic).

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PERSPECTIVES OF LEADERSHIPS
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Competency
(trait)
Romance perspective Behavioral
perspective perspective

Perspective
of
Leadership
Transformationa Contingency
l perspective perspective

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FRAMEWORK for STUDYING LEADERSHIP
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THE THE
LEADER’S LEADER’S
TRAITS BEHAVIOR EFFECTIVE
RESULTS
SITUATIONAL
VARIABLES

*
TRAIT (COMPETENCY) THEORY OF
LEADERSHIP
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◻ Emphasize on finding leader traits in physical


characteristic, personality and ability.
◻ It assumed that theoretically possible to identify traits
that distinguish leaders from followers or between
successful and unsuccessful leaders.
◻ At the first it tried to find “ universal leadership
trait”, but then changed to refine the traits that related
with leadership effectiveness.
◻ Despite of the limitations, there were evidences from
the studies that some traits of leadership associated
with the leadership success.

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COMPETENCIES OF EFFECTIVE LEADERS
(Kirkpatrick & Locke)
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◻ Drive
◻ Leadership motivation
◻ Integrity
◻ Self-confidence
◻ Intelligence
◻ Knowledge on the business
◻ Emotional Intelligence

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CRITICISM, LIMITATIONS OF TRAIT
THEORY
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◻ It assumed that great leaders have the same personal


characteristic, and all of those equally important in
all situations.
◻ Some traits are subjective, have some perceptional
distortions, defined imprecisely and maybe overlap.
◻ Trait score doesn’t predict the leadership
effectiveness, and amount of traits that needed is not
indicated.
◻ Traits did not specify about the different situation,
and pattern of behavior largely depend on different
situation.

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IMPLICATION OF TRAIT THEORY OF
LEADERSHIP
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◻ Leadership traits may be existed but it just showed


the potency to be a successful leaders. It more likely
pre-conditions rather than requirements needed to be
an effective leader.
◻ People with these characteristics must develop and
master the necessary leadership behavior, before they
become effective leader.
◻ It should be avoided to inference about a person’s
leadership ability based on various traits only.

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BEHAVIORAL THEORIES OF LEADERSHIP
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◻ Focused on the specific behaviors or action that make


leadership effective.
◻ It assumed that successful leader behaved differently
with unsuccessful one, and if these specific behaviors
can be identified, it is possible to teach the specific
behaviors and develop a leader.
◻ These theories include :
- Ohio State University Leadership Study
- University of Michigan Leadership Study
- Likert’s System 4 Management Model
- Blake & McCanse’s Leadership Grid
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OHIO STATE STUDIES
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◻ This study identified two basic categories that


explained leader’s behavior.
◻ Initiating structure : the behavior of leaders who
define the leader-subordinate role so that everyone
know what is expected, establish formal
communication, and determine how tasks will be
performed. i.e. : criticizing poor works
◻ Consideration : the behavior of leaders who show
concern for subordinates and attempt to establish a
friendly and supportive climate. i.e. : treating
subordinate as an equal.
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OHIO STATE STUDIES cont’d
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◻ Initiating structure behavior associated with higher job


performance, but lower job satisfaction, higher absenteeism
and turnover.
◻ Consideration behavior associated with higher job
satisfaction, lower absenteeism and turnover.
◻ At the early, these patterns described as at opposite of
continuum.
◻ Later, it concluded that these two categories are independent
each other, and resulted “the hi-hi leadership hypothesis.”
◻ Recent version state that even leader has high level of two
behaviors, but they should choose appropriate level of
behavior for each different situation in order to lead
effectively.
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MICHIGAN STUDIES
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◻ This study identified two distinct styles of leadership


behaviors.
◻ “ Job centered ” or “ task-oriented “
◻ “ Employee centered or “relationship-oriented”
◻ These styles of leadership behaviors similar with
Ohio State Studies.
◻ At first it believed that these styles are mutually
exclusive, but as research progressed it was found
that leader could exhibit either set of behavior or a
combination of them.

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REVIEW OF MICHIGAN & OHIO
STUDIES
LEADERSHIP PRIME INIATOR OF METHOD OF SUBJECTS PRINCIPAL
FACTORS THEORY MEASUREMENT CONCLUSIONS

Employee centered and Likert Interview and Formal leaders and Employee-centered
job centered questionnaire responses followers in public and job-centered styles
of group followers utilities, bank, hospital, result in production
manufacturing, food, improvement However
government agencies after brief period of
time , the job-centered
styles create pressure
that is resisted through
absenteeism, turnover,
grievance, poor
attitudes. The best style
is employee-centered

Initiating structure and Fleishman, Stogdill, Questionnaire Formal leaders and The combination of
consideration and Shartle responses of group followers in military, initiating structure and
followers, peers, the education, public consideration
immediate superior and utilities, manufacturing, behaviours that
the leaders. and government achieves individual,
agencies. group and
organizational
effectiveness depend
largely on situation.
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LIKERT’S SYSTEM 4 MANAGEMENT MODEL
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◻ Developed by Rensis Lickert


◻ Concentrate in relationship behavior.
◻ The key element in effective leadership is the
degree to which the leaders allow followers to
influence their decision.
◻ It contains four distinct systems of interpersonal
relationship, and called System 4 management

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LIKERT’S SYSTEM 4 MANAGEMENT MODEL
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BLACK & McCANSE’S LEADERSHIP GRID
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◻ First developed by Robert Blake and Jane Mouton.


◻ Revised by Black and McCanse.
◻ Using two variables of leadership : concern for
people and concern for production
◻ Identified five styles of leadership :
- 1.1. Impoverished Management.
- 1.9. Country Club Management
- 5.5. Middle of the Road Management.
- 9.1. Authority Compliance.
- 9.9. Team Management

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BLACK & McCANSE’S LEADERSHIP GRID
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LIMITATIONS OF BEHAVIORAL THEORIES
OF LEADERSHIP
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◻ Based on very subjective questionnaire, easy for


stereotype and high possibility of bias.
◻ Universal approach, there is “ one best way”
leadership.
◻ Ignore the situational factor, that the best leadership
style may depends on the situation.

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SITUATIONAL THEORIES OF LEADER TRAITS &
BEHAVIOR (Contingency Perspectives)
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◻ Based on the idea that most appropriate leadership style


depends on situation.
◻ It assume that effective leaders must be both insightful and
flexible, they must be able to adapt their behaviors and styles
to the immediate situations.
◻ These theories include :
- Tannenbaum & Schmidt’s Continuum Leader
Decision-Making Authority.
- Fiedler’s Contingency Theory
- Hershey & Blanchard’s Situational Leadership Model
- Vroom-Yetton Model
- Leader-member Exchange (LMX) Theory
- House-Mitchell Path-Goal Theory of Leadership
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Tannenbaum & Schmidt’s Continuum Leader
Decision-Making Authority
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◻ It has two polar ends with varying amount of decision making


authority.
◻ Depend on how much participation leaders want from
subordinate
◻ It ranges from more authoritarian (left side) to more
participative (right side)
◻ Based on this continuum, there are five styles of leadership :
- Autocratic
- Consultative
- Participative
- Democratic
- Laissez-faire

*
Tannenbaum & Schmidt’s Continuum Leader
Decision-Making Authority
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*
Tannenbaum & Schmidt’s Continuum Leader
Decision-Making Authority
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◻ It describe behavior of leadership, but does not


search the best style (difference with behavior
theory)
◻ The best style depend on the particular situation,
and forces of leader, follower and situation.
◻ No single leader decision-making is correct all the
time.
◻ This theory give contribution providing a bridge
between behavior and contingency theory.

*
Fiedler’s Contingency Theory
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◻ Focused on specifying situations in which certain


leader traits situation would be particularly effective.
◻ Fiedler hypothesize that effective leadership is
contingent upon whether the elements in a particular
situation in which leadership being exercised fit
particular traits of the leader.
◻ Fiedler divides leaders personality into task-
motivated and relations-motivated, and examines
how the leader change their personality to fit the
different situations.
◻ Leader personality measured by least preferred co-
worker (LPC) score.
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Fiedler’s Contingency Theory
30

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Fiedler’s Contingency Theory
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◻ According to this theory, the relationship between a


leader’s LPC score and leadership effectiveness
depend on complex situation variable called
situational favorability.
◻ This situation depends on, three factors :
- Leader-member relations
- Task structure
- Position power

*
Fiedler’s Contingency Theory
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*
Fiedler’s Contingency Theory
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Assumptions in Fiedler’s Contingency Theory :


◻ Focused on the leader
◻ Leader’s traits are difficult or maybe impossible to
change.
◻ The situation should be changed to fit with the
leader’s trait.

*
Hershey & Blanchard’s Situational Leadership
Model
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◻ Developed by Paul Hershey and Kenneth Blanchard.


◻ This model try to explain effective leadership as
interplay among :
- Leader’s relationship behavior
- Leader’s task behavior
- Follower’s readiness level.
◻ The premise is that the leadership style a person
should use with individuals or groups depends on the
readiness level of the people the leader attempt to
influence.
*
Hershey & Blanchard’s Situational Leadership
Model
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◻ The leadership behavior divide into two type; task


or relationship behavior similar with Ohio studies.
◻ Based on these two behavior, there are four distinct
leadership styles, as follow :
- S1 : telling : high task – low relationship.
- S2 : selling : high task – high relationship.
- S3 : participating : low task – high relationship
- S4 : delegating : low task – low relationship

*
Hershey & Blanchard’s Situational Leadership
Model
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◻ Follower’s readiness assessed by two factors ;


ability and willingness.
◻ Based on two factors, this model develop four stage
continuum of follower’s readiness ;
R1 : Unable and Unwilling
R2 : Unable but Willing
R3 : Able but Unwilling
R3 : Able and Willing

*
Hershey & Blanchard’s Situational Leadership
Model
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*
Vroom-Yetton Model

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◻ Developed by Victor Vroom and Phillip Yetton.


◻ Analyzed how leader decision-making behavior
affect the quality of decision making in problem
solving situation, based in the degree of acceptance
by followers.
◻ This model assumes that five leader behaviors can be
used; two types of autocratic (AI, AII), two types of
consultative ( CI, CII), one type of group decision-
making (GI).
◻ The choices of among five type behaviors, guided by
seven different questions (a – g).

*
Vroom-Yetton Model

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Leader-member Exchange (LMX) Theory
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◻ It proposes that there’s no such thing as consistent leader


behavior across subordinates.
◻ Leader have different relationships among different
subordinates, each relationship is unique, and it’s the one-on-
one relationship that determines subordinate behavior.
◻ The leaders classify subordinates into in-group members and
out-group members.
◻ In-group members share a common bond and value system,
and interact with the leader.
◻ Out-group members have less in common with leader and not
share to much with the leader.
◻ The group member status measured by LMX questionnaire.
*
Leader-member Exchange (LMX)
Questionnaire
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◻ Consist of 5 questions
◻ With 4 options of answer every question, and score range
from 1 – 4 for every answer.
◻ The possible total score range for 5 – 20.
◻ Example :
1. How would you characterize your working relationship
with your supervisor ?
4 = extremely effective.
3 = better than average
2 = about average
1 = less than average
*
House-Mitchell Path-Goal Theory of Leadership
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◻ Developed by Robert House and Terence Mitchell.


◻ According this theory, leaders are effective because
their impact on subordinates motivation, ability to
perform effectively and satisfaction.
◻ It major concern on is how the leader influence the
subordinate’s perceptions of their work goals,
personal goals and path to goal attainment.
◻ It’s a situational theory because of its basic premise
that effect of leader behavior on follower
performance and satisfaction depends on the
situation, especially follower characteristic and task
characteristic.
*
House-Mitchell Path-Goal Theory of Leadership
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◻ There are four categories of leader behavior; each


is best suited to a particular situation :
- Directive leadership
- Supportive leadership
- Participative leadership
- Achievement-oriented leadership

*
House-Mitchell Path-Goal Theory of Leadership
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PATH CLARIFICATION INCREASE REWARD

Leader define what followers Leader learns follower needs


must do to attain work outcome
Leader matches followers need
Leader clarifies followers work
to reward if work outcomes are
role
accomplished
Follower has increased
Leader increases value of
knowledge and confidence to
work outcomes for follower
accomplish the outcomes.

Follower displays increased effort


and motivation.

Organizational work outcomes


are accomplished *
House-Mitchell Path-Goal Theory of Leadership
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Situation Leader Behavior Impact on Outcome


follower
Follower’s Increase confidence
lack of self Supportive to achieve work
confidence outcome
More effort;
Ambiguous Directive Clarify path improve
Job to reward satisfaction and
performance
Lack of Participativ Set of high
job e goals
challenge
Incorrect Clarify follower’s
Achievemen
reward need and change
t oriented
reward
*
TRANSACTIONAL vs TRANSFORMATIONAL
LEADERSHIPS
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TRANSACTIONAL TRANSFORMATIONAL
◻ Leader identifies what ◻ Ability to inspire and
follower want and help motivate followers to
them achieve the level of achieve result greater than
performance that result in originally planned and for
reward that satisfy them. internal rewards.
◻ Contingent reward ◻ Charisma
◻ Management by exception ◻ Inspiration
(active) ◻ Intellectual stimulation
◻ Management by exception ◻ Individual consideration
(passive)
◻ Laissez-faire
*
CHARISMATIC LEADERSHIP
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◻ The ability to influence followers based on supernatural gift


and attractive powers. Followers enjoy being with charismatic
leader because they feel inspired, correct and important.
◻ Three important elements :
◻ Needs to be able to envision the future, set high expectation
and to model behavior that meet with those expectation
◻ Must be able to energize others through demonstration of
personal excitement, personal confidence and pattern of
success.
◻ Enables others by supporting, empathizing with and
expressing confidence in them.

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ORGANIZATIONAL
BEHAVIOR
DEFINITION
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◻ Broad area of management that studies how people


act in organization.
◻ It is an interdisciplinary field that draws ideas and
research of many disciplines that are concerned
with human behavior and interaction.
◻ These include psychology, sociology,
communication and anthropology.

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IMPORTANCE OF ORGANIZATIONAL
BEHAVIOR
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◻ The most successful organization make the best use


of their employees’ talents and energies.
◻ Employees are key to an organization’s success.
◻ How well manager interacts and works with variety
of individuals is key to a manager’s success.

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HUMAN THINKING
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◻ Human behavior mostly draw from human


thinking.
◻ To understand behavior, we have to understand the
thoughts, assumptions, and attributes of a situation
that precede behavior.
◻ Humans have limited capacity to process
information, causing them to simplify and take
shortcuts.
◻ The foremost management task is to create
common understanding among organization
*
members.
COGNITIVE PRINCIPLES
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◻ Perception
◻ Cognitive biases
◻ Theory X and Theory Y
◻ Expectancy and Expectancy theory
◻ Attribution theory
◻ Schemas and mental models
◻ Sensemaking

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PERCEPTION
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◻ How a person perceives and thinks about a situation


◻ How a person makes sense of a situation affects his
or her attitudes, attributions, and behaviors.
◻ Attention process will be influenced and filtered by
assumptions, values, knowledge, goals, past
experiences, other personal differences.
◻ Take in partial information, act upon partial
information.
◻ Other subsequent mental processes can create
further distortions.
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COGNITIVE BIASES
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◻ Humans mostly are heuristics.


◻ Systematic errors of perception and judgment, used
inappropriately, diminishing the quality of thinking,
by limiting the amount and richness of information.
◻ Prior beliefs and assumptions, oversimplifying,
flawed assessment, overestimating.
◻ Manager must monitor and recognize situations
with the potential of inappropriate bias.

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THEORY X & THEORY Y
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Theory X Theory Y

◻ Dislike work, avoid it if ◻ Work may be source of


possible. satisfaction or
◻ Must be coerced,
punishment.
controlled, directed, ◻ External control and
threatened with punishment is not the only
punishment means.
◻ Commitment = reward x
◻ Closely directed, avoid achievements
responsibility, little
ambition, want security ◻ Under proper condition,
above all. accept and seek
responsibility
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CONT’D
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◻ Managers must examine their deepest believe about


people and nature of work.
◻ Research support the merits of intrinsically
motivating approach to engaging employees.
◻ Organization policies and practices promote
employee growth, development, engagement, and
contribution.

*
EXPECTANCY & EXPECTANCY THEORY
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◻ “Believing is Seeing”
◻ Prior knowledge or experience tend to make us
perceive what we expect to perceive.
◻ Employee’s motivation to put forth effort on job
depends on the expectations that the individual will
be able to perform tasks, and that successful
performance will result in valued outcome.
◻ Manager’s role: providing appropriate
encouragement, rewarding appropriately.
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ATTRIBUTION THEORY
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◻ To make inference, to explain what causes


something.
◻ People naturally seek to explain the likely cause of
another’s behavior.
◻ Perception influence attribution.
◻ Fundamental attribution error, cognitive bias in
which an observer makes incorrect causal
attribution.

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SCHEMAS
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◻ Schemas are mental representation of one’s general


knowledge and expectation about a concept,
including the concept’s attribute and relation
among those attributes.
◻ Person schemas, role schemas, event schemas.
◻ It is a form of cognitive simplification.
◻ Can be inaccurate, incomplete, difficult to change,
lead to opportunity of distortion.
◻ Organizational schemas = common schemas
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MENTAL MODEL
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◻ Deeply held internal images how the world works.


◻ Expectancies and schemas are concerned with how
we receive and store information.
◻ Mental model are concerned with how we use the
information in reasoning.

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SENSEMAKING
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◻ Process by which organizations arrive at a plausible


explanation of what an equivocal situation means.
◻ Determining what is important in a situation.
◻ Develop understanding.
◻ Organize information to create plausible
understanding about a situation.

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MANAGER’S KEY IN ORGANIZATIONAL
BEHAVIOR
62

◻ Communication
◻ Problem solving

*
THANK YOU
joko.mulyanto@unsoed.ac.id

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