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ORGANISATIONAL BEHAVIOUR
What is Organizational Behavior? Organizational Behavior (OB) is the study: (I) of human behavior in organizational settings; (II) of the interface between human behavior and the organization; (III) of the organization itself. All these three areas are necessary for a comprehensive understanding or organizational behavior. We can study individual behavior without explicitly considering the organization. But the organization influences and is influenced by the individual, we cannot fully understand the individual’s behavior without learning something about the organization.
What is Organizational Behavior? Contd.,
An Open Systems View of Organizations and OB
What is Organizational Behavior? Insert Figure 1.1 here
Levels of Analysis Organizational Level Group Level Individual Level
Components of Organizational Behavior Understanding organizational behavior requires studying Individuals in Organizations Group and Team Processes Organizational Processes
Contributing Disciplines to the OB Field
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
Contributing Disciplines to the OB Field (cont’d)
Challenges and Opportunity for OB • • • • • Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Responding to the Labor Shortage Improving Customer Service
Challenges and Opportunity for OB (cont’d) • • • • • Improving People Skills Empowering People Coping with “Temporariness” Stimulation Innovation and Change Helping Employees Balance Work/Life Conflicts • Improving Ethical Behavior
Foundations of Individual Behavior
Biographical Characteristics Biographical Characteristics Personal characteristics—such as age, gender, and marital status—that are objective and easily obtained from personnel records.
Ability, Intellect, and Intelligence Ability An individual’s capacity to perform the various tasks in a job. Intellectual Ability The capacity to do mental activities. Multiple Intelligences Intelligence contains four subparts: cognitive, social, emotional, and cultural.
Dimensions of Intellectual Ability •Number aptitude •Verbal comprehension •Perceptual speed •Inductive reasoning •Deductive reasoning •Spatial visualization •Memory
Physical Abilities Physical Abilities The capacity to do tasks demanding stamina, dexterity, strength, and similar characteristics.
Nine Physical Abilities Strength Factors 1. Dynamic strength 2. Trunk strength 3. Static strength 4. Explosive strength Flexibility Factors 5. Extent flexibility Other Factors 6. Dynamic flexibility 7. Body coordination 8. Balance 9. Stamina Source: Adapted from HRMagazine published by the Society for Human Resource Management, Alexandria, VA.
The Ability-Job Fit Employee’s Abilities Ability-Job Fit Job’s Ability Requirements
What is Personality? Personality The sum total of ways in which an individual reacts and interacts with others. Personality Traits Enduring characteristics that describe an individual’s behavior. Personality Determinants • Heredity • Environment • Situation
The Myers-Briggs Type Indicator Myers-Briggs Type Indicator (MBTI) A personality test that taps four characteristics and classifies people into 1 of 16 personality types. Personality Types • Extroverted vs. Introverted (E or I) • Sensing vs. Intuitive (S or N) • Thinking vs. Feeling (T or F) • Judging vs. Perceiving (P or J)
The Big Five Model of Personality Dimensions Extroversion Sociable, gregarious, and assertive Agreeableness Good-natured, cooperative, and trusting. Conscientiousness Responsible, dependable, persistent, and organized. Emotional Stability Calm, self-confident, secure (positive) versus nervous, depressed, and insecure (negative). Openness to Experience Imaginativeness, artistic, sensitivity, and intellectualism.
Major Personality Attributes Influencing OB • Locus of control • Machiavellianism • Self-esteem • Self-monitoring • Risk taking • Type A personality
Locus of Control Locus of Control The degree to which people believe they are masters of their own fate. Internals Individuals who believe that they control what happens to them. Externals Individuals who believe that what happens to them is controlled by outside forces such as luck or chance.
Machiavellianism Machiavellianism (Mach) Degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means. Conditions Favoring High Machs •Direct interaction •Minimal rules and regulations •Emotions distract for others
Self-Esteem and Self-Monitoring Self-Esteem (SE) Individuals’ degree of liking or disliking themselves. Self-Monitoring A personality trait that measures an individuals ability to adjust his or her behavior to external, situational factors.
Risk-Taking • High Risk-taking Managers – Make quicker decisions – Use less information to make decisions – Operate in smaller and more entrepreneurial organizations • Low Risk-taking Managers – Are slower to make decisions – Require more information before making decisions – Exist in larger organizations with stable environments • Risk Propensity – Aligning managers’ risk-taking propensity to job requirements should be beneficial to organizations.
Personality Types Proactive Personality Identifies opportunities, shows initiative, takes action, and perseveres until meaningful change occurs. Creates positive change in the environment, regardless or even in spite of constraints or obstacles.
Achieving Person-Job Fit Personality-Job Fit Theory (Holland) Identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover. Personality Types •Realistic •Investigative •Social •Conventional •Enterprising •Artistic
Emotions- Why Emotions Were Ignored in OB • The “myth of rationality” – Organizations are not emotion-free. • Emotions of any kind are disruptive to organizations. – Original OB focus was solely on the effects of strong negative emotions that interfered with individual and organizational efficiency.
What Are Emotions? (cont’d) Emotional Labor A situation in which an employee expresses organizationally desired emotions during interpersonal transactions. Emotional Dissonance A situation in which an employee must project one emotion while simultaneously feeling another.
Felt versus Displayed Emotions Felt Emotions An individual’s actual emotions. Displayed Emotions Emotions that are organizationally required and considered appropriate in a given job.
Emotion Dimensions • Variety of emotions – Positive – Negative • Intensity of emotions – Personality – Job Requirements • Frequency and duration of emotions – How often emotions are exhibited. – How long emotions are displayed.
Gender and Emotions • Women – – – – – Can show greater emotional expression. Experience emotions more intensely. Display emotions more frequently. Are more comfortable in expressing emotions. Are better at reading others’ emotions. • Men – Believe that displaying emotions is inconsistent with the male image. – Are innately less able to read and to identify with others’ emotions. – Have less need to seek social approval by showing positive emotions.
Affective Events Theory (AET) • Emotions are negative or positive responses to a work environment event. – Personality and mood determine the intensity of the emotional response. – Emotions can influence a broad range of work performance and job satisfaction variables. • Implications of the theory: – Individual response reflects emotions and mood cycles. – Current and past emotions affect job satisfaction. – Emotional fluctuations create variations in job satisfaction. – Emotions have only short-term effects on job performance. – Both negative and positive emotions can distract workers and reduce job performance.
OB Applications of Understanding Emotions • Ability and Selection – Emotions affect employee effectiveness. • Decision Making – Emotions are an important part of the decisionmaking process in organizations. • Motivation – Emotional commitment to work and high motivation are strongly linked. • Leadership – Emotions are important to acceptance of messages from organizational leaders.
OB Applications… (cont’d) • Interpersonal Conflict – Conflict in the workplace and individual emotions are strongly intertwined. • Customer Services – Emotions affect service quality delivered to customers which, in turn, affects customer relationships. • Deviant Workplace Behaviors – Negative emotions lead to employee deviance (actions that violate norms and threaten the organization). • • • • Productivity failures Property theft and destruction Political actions Personal aggression
Ability and Selection Emotional Intelligence An assortment of noncognitive skills, capabilities, and competencies that influence a person’s ability to succeed in coping with environmental demands and pressures. • Emotional Intelligence (EI) – Self-awareness – Self-management – Self-motivation – Empathy – Social skills • Research Findings – High EI scores, not high IQ scores, characterize high performers.
What Is Perception, and Why Is It Important? Perception A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. • People’s behavior is based on their perception of what reality is, not on reality itself. • The world as it is perceived is the world that is behaviorally important.
Factors That Influence Perception
Person Perception: Making Judgments About Others Attribution Theory When individuals observe behavior, they attempt to determine whether it is internally or externally caused. Distinctiveness: shows different behaviors in different situations. Consensus: response is the same as others to same situation. Consistency: responds in the same way over time.
Attribution Theory
Errors and Biases in Attributions Fundamental Attribution Error The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others.
Errors and Biases in Attributions (cont’d) Self-Serving Bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.
Frequently Used Shortcuts in Judging Others Selective Perception People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.
Frequently Used Shortcuts in Judging Others Halo Effect Drawing a general impression about an individual on the basis of a single characteristic Contrast Effects Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.
Frequently Used Shortcuts in Judging Others Projection Stereotyping Attributing one’s own characteristics to other people. Judging someone on the basis of one’s perception of the group to which that person belongs.
Specific Applications in Organizations • Employment Interview – Perceptual biases of raters affect the accuracy of interviewers’ judgments of applicants. • Performance Expectations – Self-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities. • Ethnic Profiling – A form of stereotyping in which a group of individuals is singled out—typically on the basis of race or ethnicity—for intensive inquiry, scrutinizing, or investigation.
Specific Applications in Organizations (cont’d) • Performance Evaluations – Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance. • Employee Effort – Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.
The Link Between Perceptions and Individual Decision Making Problem A perceived discrepancy between the current state of affairs and a desired state. Decisions Choices made from among alternatives developed from data perceived as relevant. Perception of the decision maker Outcomes
Assumptions of the Rational Decision-Making Model Rational DecisionMaking Model Describes how individuals should behave in order to maximize some outcome. Model Assumptions • Problem clarity • Known options • Clear preferences • Constant preferences • No time or cost constraints • Maximum payoff
Steps in the Rational Decision-Making Model 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.
The Three Components of Creativity Creativity The ability to produce novel and useful ideas. Three-Component Model of Creativity Proposition that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation.
How Are Decisions Actually Made in Organizations Bounded Rationality Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.
How Are Decisions Actually Made in Organizations (cont’d) • How/Why problems are identified – Visibility over importance of problem • Attention-catching, high profile problems • Desire to “solve problems” – Self-interest (if problem concerns decision maker) • Alternative Development – Satisficing: seeking the first alternative that solves problem. – Engaging in incremental rather than unique problem solving through successive limited comparison of alternatives to the current alternative in effect.
Common Biases and Errors • Overconfidence Bias – Believing too much in our own decision competencies. • Anchoring Bias – Fixating on early, first received information. • Confirmation Bias – Using only the facts that support our decision. • Availability Bias – Using information that is most readily at hand. • Representative Bias – Assessing the likelihood of an occurrence by trying to match it with a preexisting category.
Common Biases and Errors • Escalation of Commitment – Increasing commitment to a previous decision in spite of negative information. • Randomness Error – Trying to create meaning out of random events by falling prey to a false sense of control or superstitions. • Hindsight Bias – Falsely believing to have accurately predicted the outcome of an event, after that outcome is actually known.
Intuition • Intuitive Decision Making – An unconscious process created out of distilled experience. • Conditions Favoring Intuitive Decision Making – – – – – – – – A high level of uncertainty exists There is little precedent to draw on Variables are less scientifically predictable “Facts” are limited Facts don’t clearly point the way Analytical data are of little use Several plausible alternative solutions exist Time is limited and pressing for the right decision
Decision-Style Model
Organizational Constraints on Decision Makers • Performance Evaluation – Evaluation criteria influence the choice of actions. • Reward Systems – Decision makers make action choices that are favored by the organization. • Formal Regulations – Organizational rules and policies limit the alternative choices of decision makers. • System-imposed Time Constraints – Organizations require decisions by specific deadlines. • Historical Precedents – Past decisions influence current decisions.
Cultural Differences in Decision Making • • • • Problems selected Time orientation Importance of logic and rationality Belief in the ability of people to solve problems • Preference for collect decision making
Ethics in Decision Making • Ethical Decision Criteria – Utilitarianism • Seeking the greatest good for the greatest number. – Rights • Respecting and protecting basic rights of individuals such as whistleblowers. – Justice • Imposing and enforcing rules fairly and impartially.
Ethics in Decision Making • Ethics and National Culture – There are no global ethical standards. – The ethical principles of global organizations that reflect and respect local cultural norms are necessary for high standards and consistent practices.
Ways to Improve Decision Making 1. Analyze the situation and adjust your decision making style to fit the situation. 2. Be aware of biases and try to limit their impact. 3. Combine rational analysis with intuition to increase decision-making effectiveness. 4. Don’t assume that your specific decision style is appropriate to every situation. 5. Enhance personal creativity by looking for novel solutions or seeing problems in new ways, and using analogies.
Toward Reducing Bias and Errors • Focus on goals. – Clear goals make decision making easier and help to eliminate options inconsistent with your interests. • Look for information that disconfirms beliefs. – Overtly considering ways we could be wrong challenges our tendencies to think we’re smarter than we actually are. • Don’t try to create meaning out of random events. – Don’t attempt to create meaning out of coincidence. • Increase your options. – The number and diversity of alternatives generated increases the chance of finding an outstanding one.
Learning Learning Any relatively permanent change in behavior that occurs as a result of experience. Learning •Involves change •Is relatively permanent •Is acquired through experience
Theories of Learning Classical Conditioning A type of conditioning in which an individual responds to some stimulus that would not ordinarily produce such a response. Key Concepts •Unconditioned stimulus •Unconditioned response •Conditioned stimulus •Conditioned response
Theories of Learning (cont’d) Operant Conditioning A type of conditioning in which desired voluntary behavior leads to a reward or prevents a punishment. Key Concepts •Reflexive (unlearned) behavior •Conditioned (learned) behavior •Reinforcement
Theories of Learning (cont’d) Social-Learning Theory People can learn through observation and direct experience. Key Concepts •Attentional processes •Retention processes •Motor reproduction processes •Reinforcement processes
Theories of Learning (cont’d) Shaping Behavior Systematically reinforcing each successive step that moves an individual closer to the desired response. Key Concepts •Reinforcement is required to change behavior. •Some rewards are more effective than others. •The timing of reinforcement affects learning speed and permanence.
Types of Reinforcement • Positive reinforcement – Providing a reward for a desired behavior. • Negative reinforcement – Removing an unpleasant consequence when the desired behavior occurs. • Punishment – Applying an undesirable condition to eliminate an undesirable behavior. • Extinction – Withholding reinforcement of a behavior to cause its cessation.
Schedules of Reinforcement Continuous Reinforcement A desired behavior is reinforced each time it is demonstrated. Intermittent Reinforcement A desired behavior is reinforced often enough to make the behavior worth repeating but not every time it is demonstrated.
Schedules of Reinforcement (cont’d) Fixed-Interval Schedule Rewards are spaced at uniform time intervals. Variable-Interval Schedule Rewards are initiated after a fixed or constant number of responses.
Schedules of Reinforcement (cont’d) Fixed-ratio
Intermittent Schedules of Reinforcement
Intermittent Schedules of Reinforcement (cont’d)
Behavior Modification OB Mod The application of reinforcement concepts to individuals in the work setting. Five Step Problem-Solving Model 1. Identify critical behaviors 2. Develop baseline data 3. Identify behavioral consequences 4. Develop and apply intervention 5. Evaluate performance improvement
OB MOD Organizational Applications • Well Pay versus Sick Pay – Reduces absenteeism by rewarding attendance, not absence. • Employee Discipline – The use of punishment can be counter-productive. • Developing Training Programs – OB MOD methods improve training effectiveness. • Self-management – Reduces the need for external management control.
Values Values Basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence. Value System A hierarchy based on a ranking of an individual’s values in terms of their intensity.
Importance of Values • Provide understanding of the attitudes, motivation, and behaviors of individuals and cultures. • Influence our perception of the world around us. • Represent interpretations of “right” and “wrong.” • Imply that some behaviors or outcomes are preferred over others.
Types of Values –- Rokeach Value Survey Terminal Values Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime. Instrumental Values Preferable modes of behavior or means of achieving one’s terminal values.
Values in the Rokeach Survey
Values in the Rokeach Survey (cont’d)
Mean Value Rankings of Executives, Union Members, and Activists
Dominant Work Values in Today’s Workforce
Values, Loyalty, and Ethical Behavior Ethical Values and Behaviors of Leaders Ethical Climate in the Organization
Hofstede’s Framework for Assessing Cultures Power Distance The extent to which a society accepts that power in institutions and organizations is distributed unequally. low distance: relatively equal distribution high distance: extremely unequal distribution
Hofstede’s Framework (cont’d) Individualism Collectivism The degree to which people prefer to act as individuals rather than a member of groups. A tight social framework in which people expect others in groups of which they are a part to look after them and protect them.
Hofstede’s Framework (cont’d) Achievement The extent to which societal values are characterized by assertiveness, materialism and competition. Nurturing The extent to which societal values emphasize relationships and concern for others.
Hofstede’s Framework (cont’d) Uncertainty Avoidance The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them.
Hofstede’s Framework (cont’d) Long-term Orientation A national culture attribute that emphasizes the future, thrift, and persistence. Short-term Orientation A national culture attribute that emphasizes the past and present, respect for tradition, and fulfilling social obligations.
The GLOBE Framewor k for Assessing Cultures •Assertiveness •Future Orientation •Gender differentiation •Uncertainty avoidance •Power distance •Individual/collectivism •In-group collectivism •Performance orientation •Humane orientation
Attitudes Attitudes Evaluative statements or judgments concerning objects, people, or events. Cognitive component The opinion or belief segment of an attitude. Affective Component The emotional or feeling segment of an attitude. Behavioral Component An intention to behave in a certain way toward someone or something.
Types of Attitudes Job Satisfaction A collection of positive and/or negative feelings that an individual holds toward his or her job. Job Involvement Identifying with the job, actively participating in it, and considering performance important to self-worth. Organizational Commitment Identifying with a particular organization and its goals, and wishing to maintain membership in the organization.
The Theory of Cognitive Dissonance Cognitive Dissonance Any incompatibility between two or more attitudes or between behavior and attitudes. Desire to reduce dissonance • Importance of elements creating dissonance • Degree of individual influence over elements • Rewards involved in dissonance
Measuring the A-B Relationship • Recent research indicates that attitudes (A) significantly predict behaviors (B) when moderating variables are taken into account. Moderating Variables • Importance of the attitude • Specificity of the attitude • Accessibility of the attitude • Social pressures on the individual • Direct experience with the attitude
Self-Perception Theory Attitudes are used after the fact to make sense out of an action that has already occurred.
An Application: Attitude Surveys Attitude Surveys Eliciting responses from employees through questionnaires about how they feel about their jobs, work groups, supervisors, and the organization.
Sample Attitude Survey
Attitudes and Workforce Diversity • Training activities that can reshape employee attitudes concerning diversity: – Participating in diversity training that provides for self-evaluation and group discussions. – Volunteer work in community and social serve centers with individuals of diverse backgrounds. – Exploring print and visual media that recount and portray diversity issues.
Contemporary Issues in OB • Managing Generational Differences in the Workplace – Gen Y: individuals born after 1978 • Bring new attitudes to the workplace that reflect wide arrays of experiences and opportunities • Want to work, but don’t want work to be their life • Challenge the status quo • Have grown up with technology
Contemporary Issues in OB • Managing Negative Behavior in the Workplace – Tolerating negative behavior sends the wrong message to other employees – Both preventive and responsive actions to negative behaviors are needed: • Screening potential employees • Responding immediately and decisively to unacceptable behavior • Paying attention to employee attitudes
Defining Motivation Motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal. Key Elements 1. Intensity: how hard a person tries 2. Direction: toward beneficial goal 3. Persistence: how long a person tries
Hierarchy of Needs Theory (Maslow) Hierarchy of Needs Theory There is a hierarchy of five needs—physiological, safety, social, esteem, and selfactualization; as each need is substantially satisfied, the next need becomes dominant. Self-Actualization The drive to become what one is capable of becoming.
Maslow’s Hierarchy of Needs Lower-Order Needs Needs that are satisfied externally; physiological and safety needs. Higher-Order Needs Needs that are satisfied internally; social, esteem, and self-actualization needs.
Theory X and Theory Y (Douglas McGregor) Theory X Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to perform. Theory Y Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.
Two-Factor Theory (Frederick Herzberg) Two-Factor (Motivation-Hygiene) Theory Intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction. Hygiene Factors Factors—such as company policy and administration, supervision, and salary—that, when adequate in a job, placate workers. When factors are adequate, people will not be dissatisfied.
Comparison of Satisfiers and Dissatisfiers Factors characterizing events on the job that led to extreme job dissatisfaction Factors characterizing events on the job that led to extreme job satisfaction
Contrasting Views of Satisfaction and Dissatisfaction
ERG Theory (Clayton Alderfer) ERG Theory There are three groups of core needs: existence, relatedness, and growth. Core Needs Concepts: Existence: provision of basic material requirements. More than one need can be operative at the same time. Relatedness: desire for relationships. If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases. Growth: desire for personal development.
David McClelland’s Theory of Needs Need for Achievement Need for Affiliation The drive to excel, to achieve in relation to a set of standards, to strive to succeed. The desire for friendly and close personal relationships. Need for Power The need to make others behave in a way that they would not have behaved otherwise. nPow nAch nAff
Matching High Achievers and Jobs
Cognitive Evaluation Theory Cognitive Evaluation Theory Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation. The theory may only be relevant to jobs that are neither extremely dull nor extremely interesting.
Goal-Setting Theory (Edwin Locke) Goal-Setting Theory The theory that specific and difficult goals, with feedback, lead to higher performance. Factors influencing the goals– performance relationship: Goal commitment, adequate selfefficacy, task characteristics, and national culture. Self-Efficacy The individual’s belief that he or she is capable of performing a task.
Reinforcement Theory The assumption that behavior is a function of its consequences. Concepts: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated.
Job Design Theory Job Characteristics Model Identifies five job characteristics and their relationship to personal and work outcomes. Characteristics: 1. Skill variety 2. Task identity 3. Task significance 4. Autonomy 5. Feedback
Job Design Theory (cont’d) • Job Characteristics Model – Jobs with skill variety, task identity, task significance, autonomy, and for which feedback of results is given, directly affect three psychological states of employees: • Knowledge of results • Meaningfulness of work • Personal feelings of responsibility for results – Increases in these psychological states result in increased motivation, performance, and job satisfaction.
The Job Characteristics Model
Job Design Theory (cont’d) Skill Variety The degree to which a job requires a variety of different activities. Task Identity The degree to which the job requires completion of a whole and identifiable piece of work. Task Significance The degree to which the job has a substantial impact on the lives or work of other people.
Job Design Theory (cont’d) Autonomy The degree to which the job provides substantial freedom and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out.
Job Design Theory (cont’d) Feedback The degree to which carrying out the work activities required by a job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.
Computing a Motivating Potential Score People who work on jobs with high core dimensions are generally more motivated, satisfied, and productive. Job dimensions operate through the psychological states in influencing personal and work outcome variables rather than influencing them directly.
Job Design Theory (cont’d) Social Information Processing (SIP) Model The fact that people respond to their jobs as they perceive them rather than to the objective jobs themselves. Concept: Employee attitudes and behaviors are responses to social cues by others.
Social Information Processing Model (SIP) • Concepts of the SIP Model – Employees adopt attitudes and behaviors in response to the social cues provided by others (e.g., coworkers) with whom they have contact. – Employees’ perception of the characteristics of their jobs is as important as the actual characteristics of their jobs.
Equity Theory Equity Theory Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. Referent Comparisons: Self-inside Self-outside Other-inside Other-outside
Equity Theory (cont’d)
Equity Theory (cont’d) Choices for dealing with inequity: 1. Change inputs (slack off) 2. Change outcomes (increase output) 3. Distort/change perceptions of self 4. Distort/change perceptions of others 5. Choose a different referent person 6. Leave the field (quit the job)
Equity Theory (cont’d) Propositions relating to inequitable pay: 1. Overrewarded hourly employees produce more than equitably rewarded employees. 2. Overrewarded piece-work employees produce less, but do higher quality piece work. 3. Underrewarded hourly employees produce lower quality work. 4. Underrewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees
Equity Theory (cont’d) Distributive Justice Perceived fairness of the amount and allocation of rewards among individuals. Procedural Justice The perceived fairness of the process to determine the distribution of rewards.
Expectancy Theory Expectancy Theory (Victor Vroom) The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
Expectancy Theory Relationships • Effort–Performance Relationship – The probability that exerting a given amount of effort will lead to performance. • Performance–Reward Relationship – The belief that performing at a particular level will lead to the attainment of a desired outcome. • Rewards–Personal Goals Relationship – The degree to which organizational rewards satisfy an individual’s goals or needs and the attractiveness of potential rewards for the individual.
Performance Dimensions
Integrating Contemporary Theories of Motivation
Designing Motivating Jobs • Job Design – The way into which tasks can be combined to form complete jobs. – Factors influencing job design: • Changing organizational environment/structure • The organization’s technology • Employees’ skill, abilities, and preferences – Job enlargement • Increasing the job’s scope (number and frequency of tasks) – Job enrichment • Increasing responsibility and autonomy (depth) in a job.
Designing Motivating Jobs (cont’d) • Job Characteristics Model (JCM) – A conceptual framework for designing motivating jobs that create meaningful work experiences that satisfy employees’ growth needs. – Five primary job characteristics: • Skill variety: how many skills and talents are needed? • Task identity: does the job produce a complete work? • Task significance: how important is the job? • Autonomy: how much independence does the jobholder have? • Feedback: do workers know how well they are doing?
Job Characteristics Model
Guidelines for Job Redesign
Designing Motivating Jobs (cont’d) • Suggestions for Using the JCM – Combine tasks (job enlargement) to create more meaningful work. – Create natural work units to make employees’ work important and whole. – Establish external and internal client relationships to provide feedback. – Expand jobs vertically (job enrichment) by giving employees more autonomy. – Open feedback channels to let employees know how well they are doing.
Current Issues in Motivation • Cross-Cultural Challenges – Motivational programs are most applicable in cultures where individualism and quality of life are cultural characteristics • Uncertainty avoidance of some cultures inverts Maslow’s needs hierarchy. • The need for achievement (nAch) is lacking in other cultures. • Collectivist cultures view rewards as “entitlements” to be distributed based on individual needs, not individual performance. – Cross-Cultural Consistencies • Interesting work is widely desired, as is growth, achievement, and responsibility.
Current Issues in Motivation (cont’d) • Motivating Unique Groups of Workers – Motivating a diverse workforce through flexibility: • Men desire more autonomy than do women. • Women desire learning opportunities, flexible work schedules, and good interpersonal relations.
Current Issues in Motivation (cont’d) • Flexible Work/Job schedules – Compressed work week • Longer daily hours, but fewer days – Flexible work hours (flextime) • Specific weekly hours with varying arrival, departure, lunch and break times around certain core hours during which all employees must be present. – Job Sharing • Two or more people split a full-time job. – Telecommuting • Employees work from home using computer links.
Current Issues in Motivation (cont’d) • Motivating Professionals – Characteristics of professionals • Strong and long-term commitment to their field of expertise. • Loyalty is to their profession, not to the employer. • Have the need to regularly update their knowledge. • Don’t define their workweek as 8:00 am to 5:00 pm. – Motivators for professionals • Job challenge • Organizational support of their work
Current Issues in Motivation (cont’d) • Motivating Contingent Workers – Opportunity to become a permanent employee – Opportunity for training – Equity in compensation and benefits • Motivating Low-Skilled, Minimum-Wage Employees – Employee recognition programs – Provision of sincere praise
Current Issues in Motivation (cont’d) • Designing Appropriate Rewards Programs – Open-book management • Involving employees in workplace decision by opening up the financial statements of the employer. – Employee recognition programs • Giving personal attention and expressing interest, approval, and appreciation for a job well done. – Pay-for-performance • Variable compensation plans that reward employees on the basis of their performance: – Piece rates, wage incentives, profit-sharing, and lump-sum bonuses
Current Issues in Motivation (cont’d) • Designing Appropriate Rewards Programs (cont’d) – Stock option programs • Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price. • Options have value if the stock price rises above the option price; they become worthless if the stock price falls below the option price.
Recommendations for Designing Stock Options
Recommendations for Designing Stock Options
Work Stress and Its Management Stress A dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.
Work Stress and Its Management Constraints Forces that prevent individuals from doing what they desire. Demands The loss of something desired.
Potential Sources of Stress • Environmental Factors – Economic uncertainties of the business cycle – Political uncertainties of political systems – Technological uncertainties of technical innovations – Terrorism in threats to physical safety and security
Potential Sources of Stress • Organizational Factors – Task demands related to the job – Role demands of functioning in an organization – Interpersonal demands created by other employees – Organizational structure (rules and regulations) – Organizational leadership (managerial style) – Organization’s life stage (growth, stability, or decline)
Potential Sources of Stress (cont’d) • Individual Factors – Family and personal relationships – Economic problems from exceeding earning capacity – Personality problems arising for basic disposition • Individual Differences – Perceptual variations of how reality will affect the individual’s future. – Greater job experience moderates stress effects. – Social support buffers job stress. – Internal locus of control lowers perceived job stress. – Strong feelings of self-efficacy reduce reactions to job stress.
Consequences of Stress High Levels of Stress Physiological Symptoms Psychological Symptoms Behavioral Symptoms
Managing Stress • Individual Approaches – Implementing time management – Increasing physical exercise – Relaxation training – Expanding social support network
Managing Stress • Organizational Approaches – Improved personnel selection and job placement – Training – Use of realistic goal setting – Redesigning of jobs – Increased employee involvement – Improved organizational communication – Offering employee sabbaticals – Establishment of corporate wellness programs
What Is Organizational Structure? Organizational Structure How job tasks are formally divided, grouped, and coordinated. Key Elements: • Work specialization • Departmentalization • Chain of command • Span of control • Centralization and decentralization • Formalization
What Is Organizational Structure? (cont’d) Work Specialization The degree to which tasks in the organization are subdivided into separate jobs. Division of labor: • Makes efficient use of employee skills • Increases employee skills through repetition • Less between-job downtime increases productivity • Specialized training is more efficient. • Allows use of specialized equipment.
What Is Organizational Structure? (cont’d) Departmentalization The basis by which jobs are grouped together. Grouping Activities By: • Function • Product • Geography • Process • Customer
What Is Organizational Structure? (cont’d) Authority The rights inherent in a managerial position to give orders and to expect the orders to be obeyed. Chain of Command The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. Unity of Command A subordinate should have only one superior to whom he or she is directly responsible.
What Is Organizational Structure? (cont’d) Span of Control The number of subordinates a manager can efficiently and effectively direct. Concept: Wider spans of management increase organizational efficiency. Narrow Span Drawbacks: • Expense of additional layers of management. • Increased complexity of vertical communication. • Encouragement of overly tight supervision and discouragement of employee autonomy.
What Is Organizational Structure? (cont’d) Centralization The degree to which decision making is concentrated at a single point in the organization. Decentralization The degree to which decision making is spread throughout the organization. Formalization The degree to which jobs within the organization are standardized.
Common Organization Designs Simple Structure A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.
Common Organization Designs (cont’d) Bureaucracy A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.
The Bureaucracy • Strengths – Functional economies of scale – Minimum duplication of personnel and equipment – Enhanced communication – Centralized decision making • Weaknesses – Subunit conflicts with organizational goals – Obsessive concern with rules and regulations – Lack of employee discretion to deal with problems
Common Organization Designs (cont’d) Matrix Structure A structure that creates dual lines of authority and combines functional and product departmentalization. Key Elements: + Gains the advantages of functional and product departmentalization while avoiding their weaknesses. + Facilitates coordination of complex and interdependent activities. – Breaks down unity-of-command concept.
New Design Options Team Structure The use of teams as the central device to coordinate work activities. Characteristics: • Breaks down departmental barriers. • Decentralizes decision making to the team level. • Requires employees to be generalists as well as specialists. • Creates a “flexible bureaucracy.”
New Design Options (cont’d) Virtual Organization A small, core organization that outsources its major business functions. Highly centralized with little or no departmentalization. Concepts: Advantage: Provides maximum flexibility while concentrating on what the organization does best. Disadvantage: Reduced control over key parts of the business.
New Design Options (cont’d) Boundaryless Organization An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams. T-form Concepts: Eliminate vertical (hierarchical) and horizontal (departmental) internal boundaries. Breakdown external barriers to customers and suppliers.
Why Do Structures Differ? Mechanistic Model A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization. Organic Model A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.
Why Do Structures Differ? – Strategy Innovation Strategy A strategy that emphasizes the introduction of major new products and services. Cost-minimization Strategy A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. Imitation Strategy A strategy that seeks to move into new products or new markets only after their viability has already been proven.
Why Do Structures Differ? – Size Size How the size of an organization affects its structure. As an organization grows larger, it becomes more mechanistic. Characteristics of large organizations: • More specialization • More vertical levels • More rules and regulations
Why Do Structures Differ? – Technology Technology How an organization transfers its inputs into outputs. Characteristics of routineness (standardized or customized) in activities: • Routine technologies are associated with tall, departmentalized structures and formalization in organizations. • Routine technologies lead to centralization when formalization is low. • Nonroutine technologies are associated with delegated decision authority.
Why Do Structures Differ? – Environment Environment Institutions or forces outside the organization that potentially affect the organization’s performance. Key Dimensions• Capacity: the degree to which an environment can support growth. • Volatility: the degree of instability in the environment. • Complexity: the degree of heterogeneity and concentration among environmental elements.
“Bureaucracy Is Dead” • Why Bureaucracy Survives • Characteristics of Bureaucracies – Specialization – Formalization – Departmentalization – Centralization – Narrow spans of control – Adherence to a chain of command. – Large size prevails. – Environmental turbulence can be largely managed. – Standardization achieved through hiring people who have undergone extensive educational training. – Technology maintains control.
Organizational Designs and Employee Behavior Research Findings: • Work specialization contributes to higher employee productivity, but it reduces job satisfaction. • The benefits of specialization have decreased rapidly as employees seek more intrinsically rewarding jobs. • The effect of span of control on employee performance is contingent upon individual differences and abilities, task structures, and other organizational factors. • Participative decision making in decentralized organizations is positively related to job satisfaction.
Managing Planned Change Change Making things different. Planned Change Activities that are intentional and goal oriented. Change Agents Persons who act as catalysts and assume the responsibility for managing change activities. Goals of Planned Change: Improving the ability of the organization to adapt to changes in its environment. Changing the behavior of individuals and groups in the organization.
Resistance to Change Forms of Resistance to Change • Overt and immediate • Voicing complaints, engaging in job actions • Implicit and deferred – Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism
Overcoming Resistance to Change Tactics for dealing with resistance to change: • Education and communication • Participation • Facilitation and support • Negotiation • Manipulation and cooptation • Coercion
The Politics of Change • Impetus for change is likely to come from outside change agents. • Internal change agents are most threatened by their loss of status in the organization. • Long-time power holders tend to implement only incremental change. • The outcomes of power struggles in the organization will determine the speed and quality of change.
Lewin’s Three-Step Change Model Unfreezing Refreezing Change efforts to overcome the pressures of both individual resistance and group conformity. Stabilizing a change intervention by balancing driving and restraining forces. Driving Forces Restraining Forces Forces that direct behavior away from the status quo. Forces that hinder movement from the existing equilibrium.
Action Research Action Research A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate. Process Steps: Action research benefits: 1. Diagnosis 2. Analysis Problem-focused rather than solution-centered. 3. Feedback 4. Action 5. Evaluation Heavy employee involvement reduces resistance to change.
Organizational Development Organizational Development (OD) A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being. OD Values: 1. Respect for people 2. Trust and support 3. Power equalization 4. Confrontation 5. Participation
Organizational Development Techniques Sensitivity Training Training groups (T-groups) that seek to change behavior through unstructured group interaction. Provides increased awareness of others and self. Increases empathy with others, improves listening skills, greater openess, and increased tolerance for others.
Organizational Development Techniques (cont’d) Survey Feedback Approach The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested. Process Consultation (PC) A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.
Organizational Development Techniques (cont’d) Team Building High interaction among team members to increase trust and openness. Team Building Activities: • Goal and priority setting. • Developing interpersonal relations. • Role analysis to each member’s role and responsibilities. • Team process analysis.
Organizational Development Techniques (cont’d) Intergroup Development OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other. Intergroup Problem Solving: • Groups independently develop lists of perceptions. • Share and discuss lists. • Look for causes of misperceptions. • Work to develop integrative solutions.
Organizational Development Techniques (cont’d) Appreciative Inquiry Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance. Appreciative Inquiry (AI): • Discovery: recalling the strengths of the organization. • Dreaming: speculation on the future of the organization. • Design: finding a common vision. • Destiny: deciding how to fulfill the dream.
Contemporary Change Issues For Today’s Managers • How are changes in technology affecting the work lives of employees? • What can managers do to help their organizations become more innovative? • How do managers create organizations that continually learn and adapt? • Is managing change culture-bound?
Technology in the Workplace • Continuous Improvement Processes – Good isn’t good enough. – Focus is on constantly reducing the variability in the organizational processes to produce more uniform products and services. • Lowers costs and raises quality. • Increases customer satisfaction. – Organizational impact • Additional stress on employees to constantly excel. • Requires constant change in organization.
Technology in the Workplace • Process Reengineering – “Starting all over” – Rethinking and redesigning organizational processes to produce more uniform products and services. • Identifying the organization’s distinctive competencies—what it does best. • Assessing core processes that add value to the organization’s distinctive competencies. • Reorganizing horizontally by process using crossfunctional and self-managed teams.
Contemporary Change Issues for Today’s Managers: Stimulating Innovation Innovation A new idea applied to initiating or improving a product, process, or service. Sources of Innovation: • Structural variables • Organic structures • Long-tenured management • Slack resources • Interunit communication • Organization’s culture • Human resources
Contemporary Change Issues for Today’s Managers: Stimulating Innovation (cont’d) Idea Champions Individuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.
Creating a Learning Organization Single-Loop Learning Errors are corrected using past routines and present policies. Double-Loop Learning Errors are corrected by modifying the organization’s objectives, policies, and standard routines.
Creating a Learning Organization Fundamental Problems in Traditional Organizations: • Fragmentation based on specialization. • Overemphasis on competition. • Reactiveness that misdirects attention to problem-solving rather than creation.
Managing a Learning Organization Establish a strategy Redesign the organization’s structure Managing Learning Reshape the organization’s culture
Mastering Change: It’s CultureBound Questions for culture-bound organizations: 1. Do people believe change is even possible? 2. How long will it take to bring about change in the organization? 3. Is resistance to change greater in this organization due to the culture of the society in which it operates? 4. How will the societal culture affect efforts to implement change? 5. How will idea champions in this organization go about gathering support for innovation efforts?
What Is Organizational Culture? Organizational Culture A common perception held by the organization’s members; a system of shared meaning. Characteristics: 1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability
Do Organizations Have Uniform Cultures? Dominant Culture Expresses the core values that are shared by a majority of the organization’s members. Subcultures Minicultures within an organization, typically defined by department designations and geographical separation.
Do Organizations Have Uniform Cultures? (cont’d) Core Values The primary or dominant values that are accepted throughout the organization. Strong Culture A culture in which the core values are intensely held and widely shared.
What Is Organizational Culture? (cont’d) • Culture Versus Formalization – A strong culture increases behavioral consistency and can act as a substitute for formalization. • Organizational Culture Versus National Culture – National culture has a greater impact on employees than does their organization’s culture. – Nationals selected to work for foreign companies may be atypical of the local/native population.
What Do Cultures Do? Culture’s Functions: 1. Defines the boundary between one organization and others. 2. Conveys a sense of identity for its members. 3. Facilitates the generation of commitment to something larger than self-interest. 4. Enhances the stability of the social system. 5. Serves as a sense-making and control mechanism for fitting employees in the organization.
What Do Cultures Do? Culture as a Liability: 1. Barrier to change. 2. Barrier to diversity 3. Barrier to acquisitions and mergers
How Culture Begins • Founders hire and keep only employees who think and feel the same way they do. • Founders indoctrinate and socialize these employees to their way of thinking and feeling. • The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.
Keeping Culture Alive • Selection – Concern with how well the candidates will fit into the organization. – Provides information to candidates about the organization. • Top Management – Senior executives help establish behavioral norms that are adopted by the organization. • Socialization – The process that helps new employees adapt to the organization’s culture.
Stages in the Socialization Process Prearrival Stage The period of learning in the socialization process that occurs before a new employee joins the organization. Encounter Stage The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. Metamorphosis Stage The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization.
How Employees Learn Culture • Stories • Rituals • Material Symbols • Language
Creating An Ethical Organizational Culture • Characteristics of Organizations that Develop High Ethical Standards – High tolerance for risk – Low to moderate in aggressiveness – Focus on means as well as outcomes • Managerial Practices Promoting an Ethical Culture – Being a visible role model. – Communicating ethical expectations. – Providing ethical training. – Rewarding ethical acts and punishing unethical ones. – Providing protective mechanisms.
Creating a Customer-Responsive Culture • Key Variables Shaping Customer-Responsive Cultures 1. The types of employees hired by the organization. 2. Low formalization: the freedom to meet customer service requirements. 3. Empowering employees with decision-making discretion to please the customer. 4. Good listening skills to understand customer messages. 5. Role clarity that allows service employees to act as “boundary spanners.” 6. Employees who engage in organizational citizenship behaviors.
Creating a Customer-Responsive Culture (cont’d) Managerial Actions : • Select new employees with personality and attitudes consistent with high service orientation. • Train and socialize current employees to be more customer focused. • Change organizational structure to give employees more control. • Empower employees to make decision about their jobs.
Creating a Customer-Responsive Culture (cont’d) Managerial Actions (cont’d) : • Lead by conveying a customer-focused vision and demonstrating commitment to customers. • Conduct performance appraisals based on customer-focused employee behaviors. • Provide ongoing recognition for employees who make special efforts to please customers.
Spirituality and Organizational Culture Workplace Spirituality The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community. Characteristics: • Strong sense of purpose • Focus on individual development • Trust and openness • Employee empowerment • Toleration of employee expression
Job Satisfaction • Measuring Job Satisfaction – Single global rating – Summation score • How Satisfied Are People in Their Jobs? – Job satisfaction declined to 50.4% in 2002 – Decline attributed to: • Pressures to increase productivity and meet tighter deadlines • Less control over work
The Effect of Job Satisfaction on Employee Performance • Satisfaction and Productivity – Satisfied workers aren’t necessarily more productive. – Worker productivity is higher in organizations with more satisfied workers. • Satisfaction and Absenteeism – Satisfied employees have fewer avoidable absences. • Satisfaction and Turnover – Satisfied employees are less likely to quit. – Organizations take actions to retain high performers and to weed out lower performers.
How Employees Can Express Dissatisfaction Exit Voice Behavior directed toward leaving the organization. Active and constructive attempts to improve conditions. Loyalty Neglect Passively waiting for conditions to improve. Allowing conditions to worsen.
Responses to Job Dissatisfaction
Job Satisfaction and OCB • Satisfaction and Organizational Citizenship Behavior (OCB) – Satisfied employees who feel fairly treated by and are trusting of the organization are more willing to engage in behaviors that go beyond the normal expectations of their job.
Job Satisfaction and Customer Satisfaction • Satisfied employees increase customer satisfaction because: – They are more friendly, upbeat, and responsive. – They are less likely to turnover which helps build long-term customer relationships. – They are experienced. • Dissatisfied customers increase employee job dissatisfaction.
Conflict • Conflict Defined – Is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. • Is that point in an ongoing activity when an interaction “crosses over” to become an interparty conflict. – Encompasses a wide range of conflicts that people experience in organizations • Incompatibility of goals • Differences over interpretations of facts • Disagreements based on behavioral expectations
Transitions in Conflict Thought Traditional View of Conflict The belief that all conflict is harmful and must be avoided. Causes: • Poor communication • Lack of openness • Failure to respond to employee needs
Transitions in Conflict Thought (cont’d) Human Relations View of Conflict The belief that conflict is a natural and inevitable outcome in any group. Interactionist View of Conflict The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively.
Functional versus Dysfunctional Conflict Functional Conflict Conflict that supports the goals of the group and improves its performance. Dysfunctional Conflict Conflict that hinders group performance.
Types of Conflict Task Conflict Conflicts over content and goals of the work. Relationship Conflict Conflict based on interpersonal relationships. Process Conflict Conflict over how work gets done.
The Conflict Process
Stage I: Potential Opposition or Incompatibility • Communication – Semantic difficulties, misunderstandings, and “noise” • Structure – – – – – – Size and specialization of jobs Jurisdictional clarity/ambiguity Member/goal incompatibility Leadership styles (close or participative) Reward systems (win-lose) Dependence/interdependence of groups • Personal Variables – Differing individual value systems – Personality types
Stage II: Cognition and Personalization Perceived Conflict Felt Conflict Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise. Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility. Conflict Definition Negative Emotions Positive Feelings
Stage III: Intentions Intentions Decisions to act in a given way. Cooperativeness: • Attempting to satisfy the other party’s concerns. Assertiveness: • Attempting to satisfy one’s own concerns.
Dimensions of Conflict-Handling Intentions
Stage III: Intentions (cont’d) Competing A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict. Collaborating A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties. Avoiding The desire to withdraw from or suppress a conflict.
Stage III: Intentions (cont’d) Accommodating The willingness of one party in a conflict to place the opponent’s interests above his or her own. Compromising A situation in which each party to a conflict is willing to give up something.
Stage IV: Behavior Conflict Management The use of resolution and stimulation techniques to achieve the desired level of conflict.
Conflict-Intensity Continuum
Conflict Management Techniques Conflict Resolution Techniques • Problem solving • Superordinate goals • Expansion of resources • Avoidance • Smoothing • Compromise • Authoritative command • Altering the human variable • Altering the structural variables
Conflict Management Techniques Conflict Resolution Techniques • Communication • Bringing in outsiders • Restructuring the organization • Appointing a devil’s advocate
Stage V: Outcomes • Functional Outcomes from Conflict – Increased group performance – Improved quality of decisions – Stimulation of creativity and innovation – Encouragement of interest and curiosity – Provision of a medium for problem-solving – Creation of an environment for self-evaluation and change • Creating Functional Conflict – Reward dissent and punish conflict avoiders.
Stage V: Outcomes • Dysfunctional Outcomes from Conflict – Development of discontent – Reduced group effectiveness – Retarded communication – Reduced group cohesiveness – Infighting among group members overcomes group goals
Negotiation Negotiation A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. BATNA The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
Bargaining Strategies Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation. Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win solution.
Distributive Versus Integrative Bargaining Bargaining Characteristic Distributive Characteristic Integrative Characteristic Available resources Fixed amount of resources to be divided Variable amount of resources to be divided Primary motivations I win, you lose I win, you win Primary interests Opposed to each other Convergent or congruent with each other Focus of relationships Short term Long term
Staking Out the Bargaining Zone
The Negotiation Process
Issues in Negotiation • The Role of Personality Traits in Negotiation – Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes. • Gender Differences in Negotiations – Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. – Men and women with similar power bases use the same negotiating styles. – Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.
Why American Managers Might Have Trouble in CrossCultural Negotiations  Italians, Germans, and French don’t soften up executives with   praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis, accustomed to fastpaced meetings, have no patience for American small talk. British executives often complain that their U.S. counterparts chatter too much. Indian executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians can feel the Americans aren’t paying attention. Americans often mix their business and personal lives. They think nothing, for instance, about asking a colleague a question like, “How was your weekend?” In many cultures such a question is seen as intrusive because business and private lives are totally compartmentalized.
Third-Party Negotiations Mediator A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives. Arbitrator A third party to a negotiation who has the authority to dictate an agreement.
Third-Party Negotiations (cont’d) Conciliator A trusted third party who provides an informal communication link between the negotiator and the opponent. Consultant An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis.
Conflict and Unit Performance
Conflict-Handling Intention: Competition • When quick, decisive action is vital (in emergencies); on important issues. • Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline). • On issues vital to the organization’s welfare. • When you know you’re right. • Against people who take advantage of noncompetitive behavior.
Conflict-Handling Intention: Collaboration • To find an integrative solution when both sets of concerns are too important to be compromised. • When your objective is to learn. • To merge insights from people with different perspectives. • To gain commitment by incorporating concerns into a consensus. • To work through feelings that have interfered with a relationship.
Conflict-Handling Intention: Avoidance • When an issue is trivial, or more important issues are pressing. • When you perceive no chance of satisfying your concerns. • When potential disruption outweighs the benefits of resolution. • To let people cool down and regain perspective. • When gathering information supersedes immediate decision. • When others can resolve the conflict effectively • When issues seem tangential or symptomatic of other issues.
Conflict-Handling Intention: Accommodation • When you find you’re wrong and to allow a better position to be heard. • To learn, and to show your reasonableness. • When issues are more important to others than to yourself and to satisfy others and maintain cooperation. • To build social credits for later issues. • To minimize loss when outmatched and losing. • When harmony and stability are especially important. • To allow employees to develop by learning from mistakes.
Conflict-Handling Intention: Compromise • When goals are important but not worth the effort of potential disruption of more assertive approaches. • When opponents with equal power are committed to mutually exclusive goals. • To achieve temporary settlements to complex issues. • To arrive at expedient solutions under time pressure. • As a backup when collaboration or competition is unsuccessful.
Where We Are Now
Project Management Structures • Challenges to Organizing Projects – The uniqueness and short duration of projects relative to ongoing longer-term organizational activities – The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas. • Choosing an Appropriate Project Management Structure – The best system balances the needs of the project with the needs of the
Project Management Structures • Organizing Projects: Functional organization – Different segments of the project are delegated to respective functional units. – Coordination is maintained through normal management channels. – Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success.
Functional Organizations FIGURE 3.1
Functional Organization of Projects • Advantages • Disadvantages 1. No Structural Change 1. Lack of Focus 2. Flexibility 2. Poor Integration 3. In-Depth Expertise 3. Slow 4. Easy Post-Project Transition 4. Lack of Ownership
Project Management Structures (cont’d) • Organizing Projects: Dedicated Teams – Teams operate as separate units under the leadership of a full-time project manager. – In a projectized organization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.
Dedicated Project Team FIGURE 3.2
Project Organization: Dedicated Team • Advantages • Disadvantages 1. Simple 1. Expensive 2. Fast 2. Internal Strife 3. Cohesive 3. Limited Technological Expertise 4. Cross-Functional Integration 4. Difficult Post-Project Transition
Projectized Organizational Structure FIGURE 3.3
Project Management Structures (cont’d) • Organizing Projects: Matrix Structure – Hybrid organizational structure (matrix) is overlaid on the normal functional structure. • Two chains of command (functional and project) • Project participants report simultaneously to both functional and project managers. – Matrix structure optimizes the use of resources. • Allows for participation on multiple projects while performing normal functional duties. • Achieves a greater integration of expertise and project requirements.
Matrix Organization Structure FIGURE 3.4
Division of Project Manager and Functional Manager Responsibilities in a Matrix Structure Project Manager Negotiated Issues Functional Manager What has to be done? Who will do the task? How will it be done? When should the task be done? Where will the task be done? How much money is available to do the task? Why will the task be done? How will the project involvement impact normal functional activities? How well has the total project been done? Is the task satisfactorily completed? How well has the functional input been integrated? TABLE 3.1
Different Matrix Forms • Weak Form – The authority of the functional manager predominates and the project manager has indirect authority. • Balanced Form – The project manager sets the overall plan and the functional manager determines how work to be done. • Strong Form – The project manager has broader control and
Project Organization: Matrix Form • Advantages 1. Efficient 2. Strong Project Focus 3. Easier Post-Project Transition 4. Flexible • Disadvantages 1. Dysfunctional Conflict 2. Infighting 3. Stressful 4. Slow
Choosing the Appropriate Project Management Structure • Organization (Form) Considerations – How important is the project to the firm’s success? – What percentage of core work involves projects? – What level of resources (human and physical) are available?
Choosing the Appropriate Project Management Structure (cont’d) • Project Considerations – Size of project – Strategic importance – Novelty and need for innovation – Need for integration (number of departments involved) – Environmental complexity (number of external interfaces) – Budget and time constraints
Key Dimensions Defining an Organization’s Culture FIGURE 3.5
Organizational Culture • Organizational Culture Defined – A system of shared norms, beliefs, values, and assumptions which bind people together, thereby creating shared meanings. – The “personality” of the organization that sets it apart from other organizations. • Provides a sense of identify to its members. • Helps legitimize the management system of the organization. • Clarifies and reinforces standards of behavior.
Identifying Cultural Characteristics • Study the physical characteristics of an organization. • Read about the organization. • Observe how people interact within the organization. • Interpret stories and folklore surrounding the organization.
Organizational Culture Diagnosis Worksheet Power Corp. I. Physical Characteristics: Architecture, office layout, décor, attire Corporate HQ is 20 Story modern building—president on top floor. Offices are bigger in the top floors than lower floors. Formal business attire (white shirts, ties, power suits, . . . ) Power appears to increase the higher up you are. II. Public Documents: Annual reports, internal newsletters, vision statements At the heart of the Power Corp. Way is our vision . . . to be the global energy company most admired for its people, partnership and performance. Integrity. We are honest with others and ourselves. We meet the highest ethical standards in all business dealings. We do what we say we will do. III. Behavior: Pace, language, meetings, issues discussed, decision-making style, communication patterns, rituals Hierarchical decision-making, pace brisk but orderly, meetings start on time and end on time, subordinates choose their words very carefully when talking to superiors, people rarely work past 6:00 P.M., president takes top performing unit on a boat cruise each year . . . IV. Folklore: Stories, anecdotes, heroines, heroes, villains Young project manager was fired after going over his boss’s head to ask for additional funds. Stephanie C. considered a hero for taking complete responsibility for a technical error. Jack S. was labeled a traitor for joining chief competitor after working for Power Corp. for 15 years. FIGURE 3.6
Implications of Organizational Culture for Organizing Projects • Challenges for Project Managers in Navigating Organizational Cultures – Interacting with the culture and subcultures of the parent organization – Interacting with the project’s clients or customer organizations – Interacting with other organizations connected to the project
Cultural Dimensions of an Organization Supportive of Project Management FIGURE 3.7
Key Terms Balanced matrix Dedicated project team Matrix Organizational culture Projectitis Projectized organization Project Office (PO) Strong matrix Weak matrix
Organization of Product Development Projects at ORION FIGURE C3.1
Traditional Master Plan at ORION FIGURE C3.2
Proposed Project Organization for the Jaguar Project FIGURE C3.3
Jaguar Master Plan FIGURE C3.4
Mechanisms for Sustaining Organizational Culture FIGURE A3.1
Project Management Structures (cont’d) • Organizing Projects: Network Organizations – An alliance of several organizations for the purpose of creating products or services. • A “hub” or “core” firm with strong core competencies outsources key activities to a collaborative cluster of satellite organizations.
Project Organization: Network Form • Advantages – Cost Reduction – High Level of Expertise – Flexible • Disadvantages – Coordination of Breakdowns – Loss of Control – Conflict
McDonald’s Thinks Globally and Acts Locally • What are your thoughts on McDonald’s approach to international business? • What about their concept of thinking globally but acting locally. Why is it a good idea? • What can other businesses learn from McDonald’s example? Exploring Behavior in Action
Knowledge Objectives 1. Define globalization and discuss the forces that influence this phenomenon. 2. Discuss three types of international involvement by associates and managers and describe problems that can arise with each. 3. Explain how international involvement by associates and managers varies across firms. 4. Describe high-involvement management in the international arena, emphasizing the adaptation of this management approach to different cultures. 5. Identify and explain the key ethical issues in international business.
Forces of Globalization Globalization – The trend toward a unified global economy involving free trade and a free flow of capital between countries • Products, services, people, technologies, and financial capital move • • relatively freely across national borders Tariffs, currency laws, travel restrictions, immigration restrictions, and other barriers to these international flows become less difficult to manage Unified world market in which to sell products and services, and acquire resources
Culture Shared values and taken-for-granted assumptions that govern acceptable behavior and thought patterns in a country and that give a country much of its uniqueness. “Many fear that unique cultures around the world will disappear over time if the world becomes one unified market for goods and services.” Thoughts?
Opportunities and Challenges Political Risks Growth Diversification of Risk Economic Risks Challenges Opportunities Economies of Scale Managerial Risks Location Advantages Exhibit 3-1: Opportunities and Challenges for Firms with International Involvement
Risks Political Risks Economic Risks Managerial Risks
Internationally Focused Jobs Well suited to associates who thrive on challenge Typically member of geographically dispersed teams Individual Issues Virtual Teams Swift Trust
Learning About a Counterpart’s Culture • Don’t attempt to identify another’s culture too quickly • Beware of the Western bias toward taking actions • Avoid the tendency to formulate simple perceptions of others’ cultural values • Don’t assume that your values are the best for the organization • Recognize that norms for interactions involving outsiders may differ from those for interactions between compatriots • Be careful about making assumptions regarding cultural values and expected behaviors based on the published dimensions of a person’s national culture Adapted from Exhibit 3-2: Learning about a Counterpart’s Culture
Foreign Job Assignments Expatriates Culture Shock Ethnocentrism Building Relationships Spousal Adjustment Adjusting to Local Culture Effectiveness at Developing a Feeling of Being at Home
Training for Expatriates • Train the entire family, if there is one • Departure orientation • Key cultural information • Conversational language training • Convince busy families of need for training
After Arrival • • • • Additional training Continued language training Social support Reintegration process
Glass Border • Historically, fewer international assignments • • for women Results in issues of development and knowledge for higher-level jobs Impact on human capital
Are Asian Women Breaking the Glass Border? • What role do cultural values and traditions still • • play in the Asian business world? Are more Asian women taking on leadership roles? How will this impact business in the future? What are the potential negative consequences for Asian companies that do not make the best use of all their human capital? Experiencing Strategic OB
Foreign Nationals as Colleagues Some issues involve different: Values Ways of Thinking Norms Thought Patterns Working Styles Decision Styles
Context Cultures High-context culture Low-context culture • Value personal relationships • Develop agreements based on trust • Favor slow, ritualistic negotiations • Value performance and expertise • Develop formal agreements • Engage in efficient negotiations Japan South Korea United States Germany
Time Orientation Monochronic • Prefer to do one task in a give time period • Dislike multi-tasking • Prefer to do one task without interruption • Prompt, schedule driven and time-focused North America Northern Europe Many Japanese Polychronic • Comfortable doing more than one task at a time • Not troubled by interruptions • Time is less of a guiding force • Plans are flexible Latin America Southern Europe South Asia Southeast Asia
Cultural Intelligence The ability to separate the aspects of behavior that are based in culture as opposed to unique to the individual or all humans in general.
Opportunities for International Participation Multi-domestic strategy Global strategy Transnational strategy
Local Responsiveness Local Multi-domestic Global Transnational Production High Low Medium R&D High Low Medium Product Modification High Low Medium/High Adaptation of Marketing High Low/Medium Medium/High Adapted from Exhibit 3-3: International Approaches and Related Organizational Characteristics
Organizational Design Multi-domestic Global Transnational Delegation of power to local units High Low Medium/Low Inter-unit resource flows between and among local units Low Low/ Medium High International resource flows from and/or controlled by corporate HQ Low High Low/ Medium Adapted from Exhibit 3-3: International Approaches and Related Organizational Characteristics
International Participation Multi-domestic Opportunities for Associates and Managers Global Transnational Low High High Adapted from Exhibit 3-3: International Approaches and Related Organizational Characteristics
Dimensions of National Culture Power Distance Individualism Uncertainty Avoidance In-group Collectivism Gender Egalitarianism Assertiveness National Culture Future Orientation Exhibit 3-4: Dimensions of National Culture Humane Orientation Performance Orientation
National Cultures Culture Dimension India Germany United States M H M M/H M M/L Individualism M H M Assertiveness L/M H H In-group collectivism H L/M M/L Gender egalitarianism L M/L M Future orientation M M M Performance orientation M M H H/M L M Uncertainty avoidance Power distance Humane orientation L – Low M – Medium Adapted from Exhibit 3-5: National Culture in India, Germany, and the United States H – High
Managing Diverse Cultures What are your thoughts about Hofstede’s studies on culture? Geert Hofstede What are your thoughts about the cultural issues in the companies mentioned? Experiencing Strategic OB
National Culture and High-Involvement Management Must be implemented according to a country’s cultural characteristics. Information sharing and decision power can be adapted to different levels of: • • • • Power-distance Uncertainty avoidance Individualism Assertiveness
National Culture and High-Involvement Management Information Sharing Decision Power and Individual Autonomy Decision Power and Self-Managing Teams What are your thoughts regarding AES’s process?
Ethics in the International Context Principles of proper conduct focused on issues such as: Corruption Exploitation of Labor Environmental Impact
Absence of Corruption Rankings Top Five Bottom Five 1. Iceland 155. Turkmenistan 2. Finland 155. Myanmar 2. New Zealand 155. Haiti 4. Denmark 158. Bangladesh 5. Singapore 158. Chad United States 17 Adapted from Exhibit 3-6: Absence of Corruption in Select Countries
Managerial Advice Caux Round Table: Ethical Principles for Business Responsibilities Business Behavior Support for Multilateral Trade Economic and Social Impact Respect for Rules Respect for the Environment Avoidance of Illicit Operations
The Strategic Lens 1. Given the complexity and challenges in operating in foreign countries, why do organizations enter international markets? 2. How can understanding and managing cultural diversity among associates contribute positively to an organization’s performance? 3. How can being knowledgeable of diverse cultures enhance an individual’s professional career?
The specific objectives of this chapter are: Motivation Across Cultures 1. DEFINE motivation, and explain it as a psychological process. 2. EXAMINE the hierarchy-of-needs, twofactor, and achievement motivation theories, and assess their value to international human resource management.
The specific objectives of this chapter are: Motivation Across Cultures 3. DISCUSS how an understanding of employee satisfaction can be useful in human resource management throughout the world. 4. EXAMINE the value of process theories in motivating employees worldwide.
The specific objectives of this chapter are: Motivation Across Cultures 5. RELATE the importance of job design, work centrality, and rewards to understanding how to motivate employees in an international context.
The Nature of Motivation • Motivation A psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives. The Basic Motivation Process Unsatisfied need Drive toward goal to satisfy need Attainment of goal (need satisfaction) Adapted from Figure Figure 12–1: The Basic Motivation Process McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
The Nature of Motivation The Universalist Assumption • The first assumption is that the motivation process is universal, that all people are motivated to pursue goals they value—what the work-motivation theorists call goals with “high valence” or “preference” – The process is universal – Culture influences the specific content and goals pursued – Motivation differs across cultures
The Nature of Motivation The Assumption of Content and Process • Content Theories of Motivation Theories that explain work motivation in terms of what arouses, energizes, or initiates employee behavior. • Process Theories of Motivation Theories that explain work motivation by how
The Hierarchy-of-Needs Theory The Maslow Theory • Maslow’s theory rests on a number of basic assumptions: – Lower-level needs must be satisfied before higherlevel needs become motivators – A need that is satisfied no longer serves as a motivator – There are more ways to satisfy higher-level than there are ways to satisfy lower-level needs
Maslow’s Need Hierarchy Self-Actualization Needs Esteem Needs Social Needs Safety Needs Physiological Needs Desires to reach one’s full potential, to become every thing one is capable of becoming as a human being. Needs for power and status. Desires to interact and affiliate with others and to feel wanted by others. Desires for security, stability, and the absence of pain. Basic physical needs for water, food, clothing, and shelter. Adapted from Figure 12–2: Maslow’s Need Hierarchy McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
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Ob ppt

  • 2. What is Organizational Behavior? Organizational Behavior (OB) is the study: (I) of human behavior in organizational settings; (II) of the interface between human behavior and the organization; (III) of the organization itself. All these three areas are necessary for a comprehensive understanding or organizational behavior. We can study individual behavior without explicitly considering the organization. But the organization influences and is influenced by the individual, we cannot fully understand the individual’s behavior without learning something about the organization.
  • 3. What is Organizational Behavior? Contd.,
  • 4. An Open Systems View of Organizations and OB
  • 5. What is Organizational Behavior? Insert Figure 1.1 here
  • 6. Levels of Analysis Organizational Level Group Level Individual Level
  • 7. Components of Organizational Behavior Understanding organizational behavior requires studying Individuals in Organizations Group and Team Processes Organizational Processes
  • 9. Contributing Disciplines to the OB Field (cont’d)
  • 10. Contributing Disciplines to the OB Field (cont’d)
  • 11. Contributing Disciplines to the OB Field (cont’d)
  • 12. Contributing Disciplines to the OB Field (cont’d)
  • 13. Challenges and Opportunity for OB • • • • • Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Responding to the Labor Shortage Improving Customer Service
  • 14. Challenges and Opportunity for OB (cont’d) • • • • • Improving People Skills Empowering People Coping with “Temporariness” Stimulation Innovation and Change Helping Employees Balance Work/Life Conflicts • Improving Ethical Behavior
  • 16. Biographical Characteristics Biographical Characteristics Personal characteristics—such as age, gender, and marital status—that are objective and easily obtained from personnel records.
  • 17. Ability, Intellect, and Intelligence Ability An individual’s capacity to perform the various tasks in a job. Intellectual Ability The capacity to do mental activities. Multiple Intelligences Intelligence contains four subparts: cognitive, social, emotional, and cultural.
  • 18. Dimensions of Intellectual Ability •Number aptitude •Verbal comprehension •Perceptual speed •Inductive reasoning •Deductive reasoning •Spatial visualization •Memory
  • 19. Physical Abilities Physical Abilities The capacity to do tasks demanding stamina, dexterity, strength, and similar characteristics.
  • 20. Nine Physical Abilities Strength Factors 1. Dynamic strength 2. Trunk strength 3. Static strength 4. Explosive strength Flexibility Factors 5. Extent flexibility Other Factors 6. Dynamic flexibility 7. Body coordination 8. Balance 9. Stamina Source: Adapted from HRMagazine published by the Society for Human Resource Management, Alexandria, VA.
  • 22. What is Personality? Personality The sum total of ways in which an individual reacts and interacts with others. Personality Traits Enduring characteristics that describe an individual’s behavior. Personality Determinants • Heredity • Environment • Situation
  • 23. The Myers-Briggs Type Indicator Myers-Briggs Type Indicator (MBTI) A personality test that taps four characteristics and classifies people into 1 of 16 personality types. Personality Types • Extroverted vs. Introverted (E or I) • Sensing vs. Intuitive (S or N) • Thinking vs. Feeling (T or F) • Judging vs. Perceiving (P or J)
  • 24. The Big Five Model of Personality Dimensions Extroversion Sociable, gregarious, and assertive Agreeableness Good-natured, cooperative, and trusting. Conscientiousness Responsible, dependable, persistent, and organized. Emotional Stability Calm, self-confident, secure (positive) versus nervous, depressed, and insecure (negative). Openness to Experience Imaginativeness, artistic, sensitivity, and intellectualism.
  • 25. Major Personality Attributes Influencing OB • Locus of control • Machiavellianism • Self-esteem • Self-monitoring • Risk taking • Type A personality
  • 26. Locus of Control Locus of Control The degree to which people believe they are masters of their own fate. Internals Individuals who believe that they control what happens to them. Externals Individuals who believe that what happens to them is controlled by outside forces such as luck or chance.
  • 27. Machiavellianism Machiavellianism (Mach) Degree to which an individual is pragmatic, maintains emotional distance, and believes that ends can justify means. Conditions Favoring High Machs •Direct interaction •Minimal rules and regulations •Emotions distract for others
  • 28. Self-Esteem and Self-Monitoring Self-Esteem (SE) Individuals’ degree of liking or disliking themselves. Self-Monitoring A personality trait that measures an individuals ability to adjust his or her behavior to external, situational factors.
  • 29. Risk-Taking • High Risk-taking Managers – Make quicker decisions – Use less information to make decisions – Operate in smaller and more entrepreneurial organizations • Low Risk-taking Managers – Are slower to make decisions – Require more information before making decisions – Exist in larger organizations with stable environments • Risk Propensity – Aligning managers’ risk-taking propensity to job requirements should be beneficial to organizations.
  • 30. Personality Types Proactive Personality Identifies opportunities, shows initiative, takes action, and perseveres until meaningful change occurs. Creates positive change in the environment, regardless or even in spite of constraints or obstacles.
  • 31. Achieving Person-Job Fit Personality-Job Fit Theory (Holland) Identifies six personality types and proposes that the fit between personality type and occupational environment determines satisfaction and turnover. Personality Types •Realistic •Investigative •Social •Conventional •Enterprising •Artistic
  • 32. Emotions- Why Emotions Were Ignored in OB • The “myth of rationality” – Organizations are not emotion-free. • Emotions of any kind are disruptive to organizations. – Original OB focus was solely on the effects of strong negative emotions that interfered with individual and organizational efficiency.
  • 33. What Are Emotions? (cont’d) Emotional Labor A situation in which an employee expresses organizationally desired emotions during interpersonal transactions. Emotional Dissonance A situation in which an employee must project one emotion while simultaneously feeling another.
  • 34. Felt versus Displayed Emotions Felt Emotions An individual’s actual emotions. Displayed Emotions Emotions that are organizationally required and considered appropriate in a given job.
  • 35. Emotion Dimensions • Variety of emotions – Positive – Negative • Intensity of emotions – Personality – Job Requirements • Frequency and duration of emotions – How often emotions are exhibited. – How long emotions are displayed.
  • 36. Gender and Emotions • Women – – – – – Can show greater emotional expression. Experience emotions more intensely. Display emotions more frequently. Are more comfortable in expressing emotions. Are better at reading others’ emotions. • Men – Believe that displaying emotions is inconsistent with the male image. – Are innately less able to read and to identify with others’ emotions. – Have less need to seek social approval by showing positive emotions.
  • 37. Affective Events Theory (AET) • Emotions are negative or positive responses to a work environment event. – Personality and mood determine the intensity of the emotional response. – Emotions can influence a broad range of work performance and job satisfaction variables. • Implications of the theory: – Individual response reflects emotions and mood cycles. – Current and past emotions affect job satisfaction. – Emotional fluctuations create variations in job satisfaction. – Emotions have only short-term effects on job performance. – Both negative and positive emotions can distract workers and reduce job performance.
  • 38. OB Applications of Understanding Emotions • Ability and Selection – Emotions affect employee effectiveness. • Decision Making – Emotions are an important part of the decisionmaking process in organizations. • Motivation – Emotional commitment to work and high motivation are strongly linked. • Leadership – Emotions are important to acceptance of messages from organizational leaders.
  • 39. OB Applications… (cont’d) • Interpersonal Conflict – Conflict in the workplace and individual emotions are strongly intertwined. • Customer Services – Emotions affect service quality delivered to customers which, in turn, affects customer relationships. • Deviant Workplace Behaviors – Negative emotions lead to employee deviance (actions that violate norms and threaten the organization). • • • • Productivity failures Property theft and destruction Political actions Personal aggression
  • 40. Ability and Selection Emotional Intelligence An assortment of noncognitive skills, capabilities, and competencies that influence a person’s ability to succeed in coping with environmental demands and pressures. • Emotional Intelligence (EI) – Self-awareness – Self-management – Self-motivation – Empathy – Social skills • Research Findings – High EI scores, not high IQ scores, characterize high performers.
  • 41. What Is Perception, and Why Is It Important? Perception A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. • People’s behavior is based on their perception of what reality is, not on reality itself. • The world as it is perceived is the world that is behaviorally important.
  • 43. Person Perception: Making Judgments About Others Attribution Theory When individuals observe behavior, they attempt to determine whether it is internally or externally caused. Distinctiveness: shows different behaviors in different situations. Consensus: response is the same as others to same situation. Consistency: responds in the same way over time.
  • 45. Errors and Biases in Attributions Fundamental Attribution Error The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others.
  • 46. Errors and Biases in Attributions (cont’d) Self-Serving Bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.
  • 47. Frequently Used Shortcuts in Judging Others Selective Perception People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.
  • 48. Frequently Used Shortcuts in Judging Others Halo Effect Drawing a general impression about an individual on the basis of a single characteristic Contrast Effects Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.
  • 49. Frequently Used Shortcuts in Judging Others Projection Stereotyping Attributing one’s own characteristics to other people. Judging someone on the basis of one’s perception of the group to which that person belongs.
  • 50. Specific Applications in Organizations • Employment Interview – Perceptual biases of raters affect the accuracy of interviewers’ judgments of applicants. • Performance Expectations – Self-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities. • Ethnic Profiling – A form of stereotyping in which a group of individuals is singled out—typically on the basis of race or ethnicity—for intensive inquiry, scrutinizing, or investigation.
  • 51. Specific Applications in Organizations (cont’d) • Performance Evaluations – Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance. • Employee Effort – Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.
  • 52. The Link Between Perceptions and Individual Decision Making Problem A perceived discrepancy between the current state of affairs and a desired state. Decisions Choices made from among alternatives developed from data perceived as relevant. Perception of the decision maker Outcomes
  • 53. Assumptions of the Rational Decision-Making Model Rational DecisionMaking Model Describes how individuals should behave in order to maximize some outcome. Model Assumptions • Problem clarity • Known options • Clear preferences • Constant preferences • No time or cost constraints • Maximum payoff
  • 54. Steps in the Rational Decision-Making Model 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.
  • 55. The Three Components of Creativity Creativity The ability to produce novel and useful ideas. Three-Component Model of Creativity Proposition that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation.
  • 56. How Are Decisions Actually Made in Organizations Bounded Rationality Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.
  • 57. How Are Decisions Actually Made in Organizations (cont’d) • How/Why problems are identified – Visibility over importance of problem • Attention-catching, high profile problems • Desire to “solve problems” – Self-interest (if problem concerns decision maker) • Alternative Development – Satisficing: seeking the first alternative that solves problem. – Engaging in incremental rather than unique problem solving through successive limited comparison of alternatives to the current alternative in effect.
  • 58. Common Biases and Errors • Overconfidence Bias – Believing too much in our own decision competencies. • Anchoring Bias – Fixating on early, first received information. • Confirmation Bias – Using only the facts that support our decision. • Availability Bias – Using information that is most readily at hand. • Representative Bias – Assessing the likelihood of an occurrence by trying to match it with a preexisting category.
  • 59. Common Biases and Errors • Escalation of Commitment – Increasing commitment to a previous decision in spite of negative information. • Randomness Error – Trying to create meaning out of random events by falling prey to a false sense of control or superstitions. • Hindsight Bias – Falsely believing to have accurately predicted the outcome of an event, after that outcome is actually known.
  • 60. Intuition • Intuitive Decision Making – An unconscious process created out of distilled experience. • Conditions Favoring Intuitive Decision Making – – – – – – – – A high level of uncertainty exists There is little precedent to draw on Variables are less scientifically predictable “Facts” are limited Facts don’t clearly point the way Analytical data are of little use Several plausible alternative solutions exist Time is limited and pressing for the right decision
  • 62. Organizational Constraints on Decision Makers • Performance Evaluation – Evaluation criteria influence the choice of actions. • Reward Systems – Decision makers make action choices that are favored by the organization. • Formal Regulations – Organizational rules and policies limit the alternative choices of decision makers. • System-imposed Time Constraints – Organizations require decisions by specific deadlines. • Historical Precedents – Past decisions influence current decisions.
  • 63. Cultural Differences in Decision Making • • • • Problems selected Time orientation Importance of logic and rationality Belief in the ability of people to solve problems • Preference for collect decision making
  • 64. Ethics in Decision Making • Ethical Decision Criteria – Utilitarianism • Seeking the greatest good for the greatest number. – Rights • Respecting and protecting basic rights of individuals such as whistleblowers. – Justice • Imposing and enforcing rules fairly and impartially.
  • 65. Ethics in Decision Making • Ethics and National Culture – There are no global ethical standards. – The ethical principles of global organizations that reflect and respect local cultural norms are necessary for high standards and consistent practices.
  • 66. Ways to Improve Decision Making 1. Analyze the situation and adjust your decision making style to fit the situation. 2. Be aware of biases and try to limit their impact. 3. Combine rational analysis with intuition to increase decision-making effectiveness. 4. Don’t assume that your specific decision style is appropriate to every situation. 5. Enhance personal creativity by looking for novel solutions or seeing problems in new ways, and using analogies.
  • 67. Toward Reducing Bias and Errors • Focus on goals. – Clear goals make decision making easier and help to eliminate options inconsistent with your interests. • Look for information that disconfirms beliefs. – Overtly considering ways we could be wrong challenges our tendencies to think we’re smarter than we actually are. • Don’t try to create meaning out of random events. – Don’t attempt to create meaning out of coincidence. • Increase your options. – The number and diversity of alternatives generated increases the chance of finding an outstanding one.
  • 68. Learning Learning Any relatively permanent change in behavior that occurs as a result of experience. Learning •Involves change •Is relatively permanent •Is acquired through experience
  • 69. Theories of Learning Classical Conditioning A type of conditioning in which an individual responds to some stimulus that would not ordinarily produce such a response. Key Concepts •Unconditioned stimulus •Unconditioned response •Conditioned stimulus •Conditioned response
  • 70.
  • 71. Theories of Learning (cont’d) Operant Conditioning A type of conditioning in which desired voluntary behavior leads to a reward or prevents a punishment. Key Concepts •Reflexive (unlearned) behavior •Conditioned (learned) behavior •Reinforcement
  • 72. Theories of Learning (cont’d) Social-Learning Theory People can learn through observation and direct experience. Key Concepts •Attentional processes •Retention processes •Motor reproduction processes •Reinforcement processes
  • 73. Theories of Learning (cont’d) Shaping Behavior Systematically reinforcing each successive step that moves an individual closer to the desired response. Key Concepts •Reinforcement is required to change behavior. •Some rewards are more effective than others. •The timing of reinforcement affects learning speed and permanence.
  • 74. Types of Reinforcement • Positive reinforcement – Providing a reward for a desired behavior. • Negative reinforcement – Removing an unpleasant consequence when the desired behavior occurs. • Punishment – Applying an undesirable condition to eliminate an undesirable behavior. • Extinction – Withholding reinforcement of a behavior to cause its cessation.
  • 75. Schedules of Reinforcement Continuous Reinforcement A desired behavior is reinforced each time it is demonstrated. Intermittent Reinforcement A desired behavior is reinforced often enough to make the behavior worth repeating but not every time it is demonstrated.
  • 76. Schedules of Reinforcement (cont’d) Fixed-Interval Schedule Rewards are spaced at uniform time intervals. Variable-Interval Schedule Rewards are initiated after a fixed or constant number of responses.
  • 77. Schedules of Reinforcement (cont’d) Fixed-ratio
  • 79. Intermittent Schedules of Reinforcement (cont’d)
  • 80. Behavior Modification OB Mod The application of reinforcement concepts to individuals in the work setting. Five Step Problem-Solving Model 1. Identify critical behaviors 2. Develop baseline data 3. Identify behavioral consequences 4. Develop and apply intervention 5. Evaluate performance improvement
  • 81. OB MOD Organizational Applications • Well Pay versus Sick Pay – Reduces absenteeism by rewarding attendance, not absence. • Employee Discipline – The use of punishment can be counter-productive. • Developing Training Programs – OB MOD methods improve training effectiveness. • Self-management – Reduces the need for external management control.
  • 82. Values Values Basic convictions that a specific mode of conduct or end-state of existence is personally or socially preferable to an opposite or converse mode of conduct or end-state of existence. Value System A hierarchy based on a ranking of an individual’s values in terms of their intensity.
  • 83. Importance of Values • Provide understanding of the attitudes, motivation, and behaviors of individuals and cultures. • Influence our perception of the world around us. • Represent interpretations of “right” and “wrong.” • Imply that some behaviors or outcomes are preferred over others.
  • 84. Types of Values –- Rokeach Value Survey Terminal Values Desirable end-states of existence; the goals that a person would like to achieve during his or her lifetime. Instrumental Values Preferable modes of behavior or means of achieving one’s terminal values.
  • 87. Mean Value Rankings of Executives, Union Members, and Activists
  • 88. Dominant Work Values in Today’s Workforce
  • 89. Values, Loyalty, and Ethical Behavior Ethical Values and Behaviors of Leaders Ethical Climate in the Organization
  • 90. Hofstede’s Framework for Assessing Cultures Power Distance The extent to which a society accepts that power in institutions and organizations is distributed unequally. low distance: relatively equal distribution high distance: extremely unequal distribution
  • 91. Hofstede’s Framework (cont’d) Individualism Collectivism The degree to which people prefer to act as individuals rather than a member of groups. A tight social framework in which people expect others in groups of which they are a part to look after them and protect them.
  • 92. Hofstede’s Framework (cont’d) Achievement The extent to which societal values are characterized by assertiveness, materialism and competition. Nurturing The extent to which societal values emphasize relationships and concern for others.
  • 93. Hofstede’s Framework (cont’d) Uncertainty Avoidance The extent to which a society feels threatened by uncertain and ambiguous situations and tries to avoid them.
  • 94. Hofstede’s Framework (cont’d) Long-term Orientation A national culture attribute that emphasizes the future, thrift, and persistence. Short-term Orientation A national culture attribute that emphasizes the past and present, respect for tradition, and fulfilling social obligations.
  • 95. The GLOBE Framewor k for Assessing Cultures •Assertiveness •Future Orientation •Gender differentiation •Uncertainty avoidance •Power distance •Individual/collectivism •In-group collectivism •Performance orientation •Humane orientation
  • 96. Attitudes Attitudes Evaluative statements or judgments concerning objects, people, or events. Cognitive component The opinion or belief segment of an attitude. Affective Component The emotional or feeling segment of an attitude. Behavioral Component An intention to behave in a certain way toward someone or something.
  • 97. Types of Attitudes Job Satisfaction A collection of positive and/or negative feelings that an individual holds toward his or her job. Job Involvement Identifying with the job, actively participating in it, and considering performance important to self-worth. Organizational Commitment Identifying with a particular organization and its goals, and wishing to maintain membership in the organization.
  • 98. The Theory of Cognitive Dissonance Cognitive Dissonance Any incompatibility between two or more attitudes or between behavior and attitudes. Desire to reduce dissonance • Importance of elements creating dissonance • Degree of individual influence over elements • Rewards involved in dissonance
  • 99. Measuring the A-B Relationship • Recent research indicates that attitudes (A) significantly predict behaviors (B) when moderating variables are taken into account. Moderating Variables • Importance of the attitude • Specificity of the attitude • Accessibility of the attitude • Social pressures on the individual • Direct experience with the attitude
  • 100. Self-Perception Theory Attitudes are used after the fact to make sense out of an action that has already occurred.
  • 101. An Application: Attitude Surveys Attitude Surveys Eliciting responses from employees through questionnaires about how they feel about their jobs, work groups, supervisors, and the organization.
  • 103. Attitudes and Workforce Diversity • Training activities that can reshape employee attitudes concerning diversity: – Participating in diversity training that provides for self-evaluation and group discussions. – Volunteer work in community and social serve centers with individuals of diverse backgrounds. – Exploring print and visual media that recount and portray diversity issues.
  • 104. Contemporary Issues in OB • Managing Generational Differences in the Workplace – Gen Y: individuals born after 1978 • Bring new attitudes to the workplace that reflect wide arrays of experiences and opportunities • Want to work, but don’t want work to be their life • Challenge the status quo • Have grown up with technology
  • 105. Contemporary Issues in OB • Managing Negative Behavior in the Workplace – Tolerating negative behavior sends the wrong message to other employees – Both preventive and responsive actions to negative behaviors are needed: • Screening potential employees • Responding immediately and decisively to unacceptable behavior • Paying attention to employee attitudes
  • 106. Defining Motivation Motivation The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal. Key Elements 1. Intensity: how hard a person tries 2. Direction: toward beneficial goal 3. Persistence: how long a person tries
  • 107. Hierarchy of Needs Theory (Maslow) Hierarchy of Needs Theory There is a hierarchy of five needs—physiological, safety, social, esteem, and selfactualization; as each need is substantially satisfied, the next need becomes dominant. Self-Actualization The drive to become what one is capable of becoming.
  • 108. Maslow’s Hierarchy of Needs Lower-Order Needs Needs that are satisfied externally; physiological and safety needs. Higher-Order Needs Needs that are satisfied internally; social, esteem, and self-actualization needs.
  • 109. Theory X and Theory Y (Douglas McGregor) Theory X Assumes that employees dislike work, lack ambition, avoid responsibility, and must be directed and coerced to perform. Theory Y Assumes that employees like work, seek responsibility, are capable of making decisions, and exercise self-direction and self-control when committed to a goal.
  • 110. Two-Factor Theory (Frederick Herzberg) Two-Factor (Motivation-Hygiene) Theory Intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction. Hygiene Factors Factors—such as company policy and administration, supervision, and salary—that, when adequate in a job, placate workers. When factors are adequate, people will not be dissatisfied.
  • 111. Comparison of Satisfiers and Dissatisfiers Factors characterizing events on the job that led to extreme job dissatisfaction Factors characterizing events on the job that led to extreme job satisfaction
  • 112. Contrasting Views of Satisfaction and Dissatisfaction
  • 113. ERG Theory (Clayton Alderfer) ERG Theory There are three groups of core needs: existence, relatedness, and growth. Core Needs Concepts: Existence: provision of basic material requirements. More than one need can be operative at the same time. Relatedness: desire for relationships. If a higher-level need cannot be fulfilled, the desire to satisfy a lower-level need increases. Growth: desire for personal development.
  • 114. David McClelland’s Theory of Needs Need for Achievement Need for Affiliation The drive to excel, to achieve in relation to a set of standards, to strive to succeed. The desire for friendly and close personal relationships. Need for Power The need to make others behave in a way that they would not have behaved otherwise. nPow nAch nAff
  • 116. Cognitive Evaluation Theory Cognitive Evaluation Theory Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation. The theory may only be relevant to jobs that are neither extremely dull nor extremely interesting.
  • 117.
  • 118. Goal-Setting Theory (Edwin Locke) Goal-Setting Theory The theory that specific and difficult goals, with feedback, lead to higher performance. Factors influencing the goals– performance relationship: Goal commitment, adequate selfefficacy, task characteristics, and national culture. Self-Efficacy The individual’s belief that he or she is capable of performing a task.
  • 119. Reinforcement Theory The assumption that behavior is a function of its consequences. Concepts: Behavior is environmentally caused. Behavior can be modified (reinforced) by providing (controlling) consequences. Reinforced behavior tends to be repeated.
  • 120. Job Design Theory Job Characteristics Model Identifies five job characteristics and their relationship to personal and work outcomes. Characteristics: 1. Skill variety 2. Task identity 3. Task significance 4. Autonomy 5. Feedback
  • 121. Job Design Theory (cont’d) • Job Characteristics Model – Jobs with skill variety, task identity, task significance, autonomy, and for which feedback of results is given, directly affect three psychological states of employees: • Knowledge of results • Meaningfulness of work • Personal feelings of responsibility for results – Increases in these psychological states result in increased motivation, performance, and job satisfaction.
  • 123. Job Design Theory (cont’d) Skill Variety The degree to which a job requires a variety of different activities. Task Identity The degree to which the job requires completion of a whole and identifiable piece of work. Task Significance The degree to which the job has a substantial impact on the lives or work of other people.
  • 124. Job Design Theory (cont’d) Autonomy The degree to which the job provides substantial freedom and discretion to the individual in scheduling the work and in determining the procedures to be used in carrying it out.
  • 125. Job Design Theory (cont’d) Feedback The degree to which carrying out the work activities required by a job results in the individual obtaining direct and clear information about the effectiveness of his or her performance.
  • 126. Computing a Motivating Potential Score People who work on jobs with high core dimensions are generally more motivated, satisfied, and productive. Job dimensions operate through the psychological states in influencing personal and work outcome variables rather than influencing them directly.
  • 127. Job Design Theory (cont’d) Social Information Processing (SIP) Model The fact that people respond to their jobs as they perceive them rather than to the objective jobs themselves. Concept: Employee attitudes and behaviors are responses to social cues by others.
  • 128. Social Information Processing Model (SIP) • Concepts of the SIP Model – Employees adopt attitudes and behaviors in response to the social cues provided by others (e.g., coworkers) with whom they have contact. – Employees’ perception of the characteristics of their jobs is as important as the actual characteristics of their jobs.
  • 129. Equity Theory Equity Theory Individuals compare their job inputs and outcomes with those of others and then respond to eliminate any inequities. Referent Comparisons: Self-inside Self-outside Other-inside Other-outside
  • 131. Equity Theory (cont’d) Choices for dealing with inequity: 1. Change inputs (slack off) 2. Change outcomes (increase output) 3. Distort/change perceptions of self 4. Distort/change perceptions of others 5. Choose a different referent person 6. Leave the field (quit the job)
  • 132. Equity Theory (cont’d) Propositions relating to inequitable pay: 1. Overrewarded hourly employees produce more than equitably rewarded employees. 2. Overrewarded piece-work employees produce less, but do higher quality piece work. 3. Underrewarded hourly employees produce lower quality work. 4. Underrewarded employees produce larger quantities of lower-quality piece work than equitably rewarded employees
  • 133. Equity Theory (cont’d) Distributive Justice Perceived fairness of the amount and allocation of rewards among individuals. Procedural Justice The perceived fairness of the process to determine the distribution of rewards.
  • 134. Expectancy Theory Expectancy Theory (Victor Vroom) The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual.
  • 135. Expectancy Theory Relationships • Effort–Performance Relationship – The probability that exerting a given amount of effort will lead to performance. • Performance–Reward Relationship – The belief that performing at a particular level will lead to the attainment of a desired outcome. • Rewards–Personal Goals Relationship – The degree to which organizational rewards satisfy an individual’s goals or needs and the attractiveness of potential rewards for the individual.
  • 138. Designing Motivating Jobs • Job Design – The way into which tasks can be combined to form complete jobs. – Factors influencing job design: • Changing organizational environment/structure • The organization’s technology • Employees’ skill, abilities, and preferences – Job enlargement • Increasing the job’s scope (number and frequency of tasks) – Job enrichment • Increasing responsibility and autonomy (depth) in a job.
  • 139. Designing Motivating Jobs (cont’d) • Job Characteristics Model (JCM) – A conceptual framework for designing motivating jobs that create meaningful work experiences that satisfy employees’ growth needs. – Five primary job characteristics: • Skill variety: how many skills and talents are needed? • Task identity: does the job produce a complete work? • Task significance: how important is the job? • Autonomy: how much independence does the jobholder have? • Feedback: do workers know how well they are doing?
  • 141. Guidelines for Job Redesign
  • 142. Designing Motivating Jobs (cont’d) • Suggestions for Using the JCM – Combine tasks (job enlargement) to create more meaningful work. – Create natural work units to make employees’ work important and whole. – Establish external and internal client relationships to provide feedback. – Expand jobs vertically (job enrichment) by giving employees more autonomy. – Open feedback channels to let employees know how well they are doing.
  • 143. Current Issues in Motivation • Cross-Cultural Challenges – Motivational programs are most applicable in cultures where individualism and quality of life are cultural characteristics • Uncertainty avoidance of some cultures inverts Maslow’s needs hierarchy. • The need for achievement (nAch) is lacking in other cultures. • Collectivist cultures view rewards as “entitlements” to be distributed based on individual needs, not individual performance. – Cross-Cultural Consistencies • Interesting work is widely desired, as is growth, achievement, and responsibility.
  • 144. Current Issues in Motivation (cont’d) • Motivating Unique Groups of Workers – Motivating a diverse workforce through flexibility: • Men desire more autonomy than do women. • Women desire learning opportunities, flexible work schedules, and good interpersonal relations.
  • 145. Current Issues in Motivation (cont’d) • Flexible Work/Job schedules – Compressed work week • Longer daily hours, but fewer days – Flexible work hours (flextime) • Specific weekly hours with varying arrival, departure, lunch and break times around certain core hours during which all employees must be present. – Job Sharing • Two or more people split a full-time job. – Telecommuting • Employees work from home using computer links.
  • 146. Current Issues in Motivation (cont’d) • Motivating Professionals – Characteristics of professionals • Strong and long-term commitment to their field of expertise. • Loyalty is to their profession, not to the employer. • Have the need to regularly update their knowledge. • Don’t define their workweek as 8:00 am to 5:00 pm. – Motivators for professionals • Job challenge • Organizational support of their work
  • 147. Current Issues in Motivation (cont’d) • Motivating Contingent Workers – Opportunity to become a permanent employee – Opportunity for training – Equity in compensation and benefits • Motivating Low-Skilled, Minimum-Wage Employees – Employee recognition programs – Provision of sincere praise
  • 148. Current Issues in Motivation (cont’d) • Designing Appropriate Rewards Programs – Open-book management • Involving employees in workplace decision by opening up the financial statements of the employer. – Employee recognition programs • Giving personal attention and expressing interest, approval, and appreciation for a job well done. – Pay-for-performance • Variable compensation plans that reward employees on the basis of their performance: – Piece rates, wage incentives, profit-sharing, and lump-sum bonuses
  • 149. Current Issues in Motivation (cont’d) • Designing Appropriate Rewards Programs (cont’d) – Stock option programs • Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price. • Options have value if the stock price rises above the option price; they become worthless if the stock price falls below the option price.
  • 152. Work Stress and Its Management Stress A dynamic condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important.
  • 153. Work Stress and Its Management Constraints Forces that prevent individuals from doing what they desire. Demands The loss of something desired.
  • 154. Potential Sources of Stress • Environmental Factors – Economic uncertainties of the business cycle – Political uncertainties of political systems – Technological uncertainties of technical innovations – Terrorism in threats to physical safety and security
  • 155. Potential Sources of Stress • Organizational Factors – Task demands related to the job – Role demands of functioning in an organization – Interpersonal demands created by other employees – Organizational structure (rules and regulations) – Organizational leadership (managerial style) – Organization’s life stage (growth, stability, or decline)
  • 156. Potential Sources of Stress (cont’d) • Individual Factors – Family and personal relationships – Economic problems from exceeding earning capacity – Personality problems arising for basic disposition • Individual Differences – Perceptual variations of how reality will affect the individual’s future. – Greater job experience moderates stress effects. – Social support buffers job stress. – Internal locus of control lowers perceived job stress. – Strong feelings of self-efficacy reduce reactions to job stress.
  • 157. Consequences of Stress High Levels of Stress Physiological Symptoms Psychological Symptoms Behavioral Symptoms
  • 158. Managing Stress • Individual Approaches – Implementing time management – Increasing physical exercise – Relaxation training – Expanding social support network
  • 159. Managing Stress • Organizational Approaches – Improved personnel selection and job placement – Training – Use of realistic goal setting – Redesigning of jobs – Increased employee involvement – Improved organizational communication – Offering employee sabbaticals – Establishment of corporate wellness programs
  • 160. What Is Organizational Structure? Organizational Structure How job tasks are formally divided, grouped, and coordinated. Key Elements: • Work specialization • Departmentalization • Chain of command • Span of control • Centralization and decentralization • Formalization
  • 161. What Is Organizational Structure? (cont’d) Work Specialization The degree to which tasks in the organization are subdivided into separate jobs. Division of labor: • Makes efficient use of employee skills • Increases employee skills through repetition • Less between-job downtime increases productivity • Specialized training is more efficient. • Allows use of specialized equipment.
  • 162. What Is Organizational Structure? (cont’d) Departmentalization The basis by which jobs are grouped together. Grouping Activities By: • Function • Product • Geography • Process • Customer
  • 163. What Is Organizational Structure? (cont’d) Authority The rights inherent in a managerial position to give orders and to expect the orders to be obeyed. Chain of Command The unbroken line of authority that extends from the top of the organization to the lowest echelon and clarifies who reports to whom. Unity of Command A subordinate should have only one superior to whom he or she is directly responsible.
  • 164. What Is Organizational Structure? (cont’d) Span of Control The number of subordinates a manager can efficiently and effectively direct. Concept: Wider spans of management increase organizational efficiency. Narrow Span Drawbacks: • Expense of additional layers of management. • Increased complexity of vertical communication. • Encouragement of overly tight supervision and discouragement of employee autonomy.
  • 165. What Is Organizational Structure? (cont’d) Centralization The degree to which decision making is concentrated at a single point in the organization. Decentralization The degree to which decision making is spread throughout the organization. Formalization The degree to which jobs within the organization are standardized.
  • 166. Common Organization Designs Simple Structure A structure characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization.
  • 167. Common Organization Designs (cont’d) Bureaucracy A structure of highly operating routine tasks achieved through specialization, very formalized rules and regulations, tasks that are grouped into functional departments, centralized authority, narrow spans of control, and decision making that follows the chain of command.
  • 168. The Bureaucracy • Strengths – Functional economies of scale – Minimum duplication of personnel and equipment – Enhanced communication – Centralized decision making • Weaknesses – Subunit conflicts with organizational goals – Obsessive concern with rules and regulations – Lack of employee discretion to deal with problems
  • 169. Common Organization Designs (cont’d) Matrix Structure A structure that creates dual lines of authority and combines functional and product departmentalization. Key Elements: + Gains the advantages of functional and product departmentalization while avoiding their weaknesses. + Facilitates coordination of complex and interdependent activities. – Breaks down unity-of-command concept.
  • 170. New Design Options Team Structure The use of teams as the central device to coordinate work activities. Characteristics: • Breaks down departmental barriers. • Decentralizes decision making to the team level. • Requires employees to be generalists as well as specialists. • Creates a “flexible bureaucracy.”
  • 171. New Design Options (cont’d) Virtual Organization A small, core organization that outsources its major business functions. Highly centralized with little or no departmentalization. Concepts: Advantage: Provides maximum flexibility while concentrating on what the organization does best. Disadvantage: Reduced control over key parts of the business.
  • 172. New Design Options (cont’d) Boundaryless Organization An organization that seeks to eliminate the chain of command, have limitless spans of control, and replace departments with empowered teams. T-form Concepts: Eliminate vertical (hierarchical) and horizontal (departmental) internal boundaries. Breakdown external barriers to customers and suppliers.
  • 173. Why Do Structures Differ? Mechanistic Model A structure characterized by extensive departmentalization, high formalization, a limited information network, and centralization. Organic Model A structure that is flat, uses cross-hierarchical and cross-functional teams, has low formalization, possesses a comprehensive information network, and relies on participative decision making.
  • 174. Why Do Structures Differ? – Strategy Innovation Strategy A strategy that emphasizes the introduction of major new products and services. Cost-minimization Strategy A strategy that emphasizes tight cost controls, avoidance of unnecessary innovation or marketing expenses, and price cutting. Imitation Strategy A strategy that seeks to move into new products or new markets only after their viability has already been proven.
  • 175. Why Do Structures Differ? – Size Size How the size of an organization affects its structure. As an organization grows larger, it becomes more mechanistic. Characteristics of large organizations: • More specialization • More vertical levels • More rules and regulations
  • 176. Why Do Structures Differ? – Technology Technology How an organization transfers its inputs into outputs. Characteristics of routineness (standardized or customized) in activities: • Routine technologies are associated with tall, departmentalized structures and formalization in organizations. • Routine technologies lead to centralization when formalization is low. • Nonroutine technologies are associated with delegated decision authority.
  • 177. Why Do Structures Differ? – Environment Environment Institutions or forces outside the organization that potentially affect the organization’s performance. Key Dimensions• Capacity: the degree to which an environment can support growth. • Volatility: the degree of instability in the environment. • Complexity: the degree of heterogeneity and concentration among environmental elements.
  • 178. “Bureaucracy Is Dead” • Why Bureaucracy Survives • Characteristics of Bureaucracies – Specialization – Formalization – Departmentalization – Centralization – Narrow spans of control – Adherence to a chain of command. – Large size prevails. – Environmental turbulence can be largely managed. – Standardization achieved through hiring people who have undergone extensive educational training. – Technology maintains control.
  • 179. Organizational Designs and Employee Behavior Research Findings: • Work specialization contributes to higher employee productivity, but it reduces job satisfaction. • The benefits of specialization have decreased rapidly as employees seek more intrinsically rewarding jobs. • The effect of span of control on employee performance is contingent upon individual differences and abilities, task structures, and other organizational factors. • Participative decision making in decentralized organizations is positively related to job satisfaction.
  • 180. Managing Planned Change Change Making things different. Planned Change Activities that are intentional and goal oriented. Change Agents Persons who act as catalysts and assume the responsibility for managing change activities. Goals of Planned Change: Improving the ability of the organization to adapt to changes in its environment. Changing the behavior of individuals and groups in the organization.
  • 181. Resistance to Change Forms of Resistance to Change • Overt and immediate • Voicing complaints, engaging in job actions • Implicit and deferred – Loss of employee loyalty and motivation, increased errors or mistakes, increased absenteeism
  • 182. Overcoming Resistance to Change Tactics for dealing with resistance to change: • Education and communication • Participation • Facilitation and support • Negotiation • Manipulation and cooptation • Coercion
  • 183. The Politics of Change • Impetus for change is likely to come from outside change agents. • Internal change agents are most threatened by their loss of status in the organization. • Long-time power holders tend to implement only incremental change. • The outcomes of power struggles in the organization will determine the speed and quality of change.
  • 184. Lewin’s Three-Step Change Model Unfreezing Refreezing Change efforts to overcome the pressures of both individual resistance and group conformity. Stabilizing a change intervention by balancing driving and restraining forces. Driving Forces Restraining Forces Forces that direct behavior away from the status quo. Forces that hinder movement from the existing equilibrium.
  • 185. Action Research Action Research A change process based on systematic collection of data and then selection of a change action based on what the analyzed data indicate. Process Steps: Action research benefits: 1. Diagnosis 2. Analysis Problem-focused rather than solution-centered. 3. Feedback 4. Action 5. Evaluation Heavy employee involvement reduces resistance to change.
  • 186. Organizational Development Organizational Development (OD) A collection of planned interventions, built on humanistic-democratic values, that seeks to improve organizational effectiveness and employee well-being. OD Values: 1. Respect for people 2. Trust and support 3. Power equalization 4. Confrontation 5. Participation
  • 187. Organizational Development Techniques Sensitivity Training Training groups (T-groups) that seek to change behavior through unstructured group interaction. Provides increased awareness of others and self. Increases empathy with others, improves listening skills, greater openess, and increased tolerance for others.
  • 188. Organizational Development Techniques (cont’d) Survey Feedback Approach The use of questionnaires to identify discrepancies among member perceptions; discussion follows and remedies are suggested. Process Consultation (PC) A consultant gives a client insights into what is going on around the client, within the client, and between the client and other people; identifies processes that need improvement.
  • 189. Organizational Development Techniques (cont’d) Team Building High interaction among team members to increase trust and openness. Team Building Activities: • Goal and priority setting. • Developing interpersonal relations. • Role analysis to each member’s role and responsibilities. • Team process analysis.
  • 190. Organizational Development Techniques (cont’d) Intergroup Development OD efforts to change the attitudes, stereotypes, and perceptions that groups have of each other. Intergroup Problem Solving: • Groups independently develop lists of perceptions. • Share and discuss lists. • Look for causes of misperceptions. • Work to develop integrative solutions.
  • 191. Organizational Development Techniques (cont’d) Appreciative Inquiry Seeks to identify the unique qualities and special strengths of an organization, which can then be built on to improve performance. Appreciative Inquiry (AI): • Discovery: recalling the strengths of the organization. • Dreaming: speculation on the future of the organization. • Design: finding a common vision. • Destiny: deciding how to fulfill the dream.
  • 192. Contemporary Change Issues For Today’s Managers • How are changes in technology affecting the work lives of employees? • What can managers do to help their organizations become more innovative? • How do managers create organizations that continually learn and adapt? • Is managing change culture-bound?
  • 193. Technology in the Workplace • Continuous Improvement Processes – Good isn’t good enough. – Focus is on constantly reducing the variability in the organizational processes to produce more uniform products and services. • Lowers costs and raises quality. • Increases customer satisfaction. – Organizational impact • Additional stress on employees to constantly excel. • Requires constant change in organization.
  • 194. Technology in the Workplace • Process Reengineering – “Starting all over” – Rethinking and redesigning organizational processes to produce more uniform products and services. • Identifying the organization’s distinctive competencies—what it does best. • Assessing core processes that add value to the organization’s distinctive competencies. • Reorganizing horizontally by process using crossfunctional and self-managed teams.
  • 195. Contemporary Change Issues for Today’s Managers: Stimulating Innovation Innovation A new idea applied to initiating or improving a product, process, or service. Sources of Innovation: • Structural variables • Organic structures • Long-tenured management • Slack resources • Interunit communication • Organization’s culture • Human resources
  • 196. Contemporary Change Issues for Today’s Managers: Stimulating Innovation (cont’d) Idea Champions Individuals who take an innovation and actively and enthusiastically promote the idea, build support, overcome resistance, and ensure that the idea is implemented.
  • 197. Creating a Learning Organization Single-Loop Learning Errors are corrected using past routines and present policies. Double-Loop Learning Errors are corrected by modifying the organization’s objectives, policies, and standard routines.
  • 198. Creating a Learning Organization Fundamental Problems in Traditional Organizations: • Fragmentation based on specialization. • Overemphasis on competition. • Reactiveness that misdirects attention to problem-solving rather than creation.
  • 199. Managing a Learning Organization Establish a strategy Redesign the organization’s structure Managing Learning Reshape the organization’s culture
  • 200. Mastering Change: It’s CultureBound Questions for culture-bound organizations: 1. Do people believe change is even possible? 2. How long will it take to bring about change in the organization? 3. Is resistance to change greater in this organization due to the culture of the society in which it operates? 4. How will the societal culture affect efforts to implement change? 5. How will idea champions in this organization go about gathering support for innovation efforts?
  • 201. What Is Organizational Culture? Organizational Culture A common perception held by the organization’s members; a system of shared meaning. Characteristics: 1. Innovation and risk taking 2. Attention to detail 3. Outcome orientation 4. People orientation 5. Team orientation 6. Aggressiveness 7. Stability
  • 202. Do Organizations Have Uniform Cultures? Dominant Culture Expresses the core values that are shared by a majority of the organization’s members. Subcultures Minicultures within an organization, typically defined by department designations and geographical separation.
  • 203. Do Organizations Have Uniform Cultures? (cont’d) Core Values The primary or dominant values that are accepted throughout the organization. Strong Culture A culture in which the core values are intensely held and widely shared.
  • 204. What Is Organizational Culture? (cont’d) • Culture Versus Formalization – A strong culture increases behavioral consistency and can act as a substitute for formalization. • Organizational Culture Versus National Culture – National culture has a greater impact on employees than does their organization’s culture. – Nationals selected to work for foreign companies may be atypical of the local/native population.
  • 205. What Do Cultures Do? Culture’s Functions: 1. Defines the boundary between one organization and others. 2. Conveys a sense of identity for its members. 3. Facilitates the generation of commitment to something larger than self-interest. 4. Enhances the stability of the social system. 5. Serves as a sense-making and control mechanism for fitting employees in the organization.
  • 206. What Do Cultures Do? Culture as a Liability: 1. Barrier to change. 2. Barrier to diversity 3. Barrier to acquisitions and mergers
  • 207. How Culture Begins • Founders hire and keep only employees who think and feel the same way they do. • Founders indoctrinate and socialize these employees to their way of thinking and feeling. • The founders’ own behavior acts as a role model that encourages employees to identify with them and thereby internalize their beliefs, values, and assumptions.
  • 208. Keeping Culture Alive • Selection – Concern with how well the candidates will fit into the organization. – Provides information to candidates about the organization. • Top Management – Senior executives help establish behavioral norms that are adopted by the organization. • Socialization – The process that helps new employees adapt to the organization’s culture.
  • 209. Stages in the Socialization Process Prearrival Stage The period of learning in the socialization process that occurs before a new employee joins the organization. Encounter Stage The stage in the socialization process in which a new employee sees what the organization is really like and confronts the possibility that expectations and reality may diverge. Metamorphosis Stage The stage in the socialization process in which a new employee changes and adjusts to the work, work group, and organization.
  • 210. How Employees Learn Culture • Stories • Rituals • Material Symbols • Language
  • 211. Creating An Ethical Organizational Culture • Characteristics of Organizations that Develop High Ethical Standards – High tolerance for risk – Low to moderate in aggressiveness – Focus on means as well as outcomes • Managerial Practices Promoting an Ethical Culture – Being a visible role model. – Communicating ethical expectations. – Providing ethical training. – Rewarding ethical acts and punishing unethical ones. – Providing protective mechanisms.
  • 212. Creating a Customer-Responsive Culture • Key Variables Shaping Customer-Responsive Cultures 1. The types of employees hired by the organization. 2. Low formalization: the freedom to meet customer service requirements. 3. Empowering employees with decision-making discretion to please the customer. 4. Good listening skills to understand customer messages. 5. Role clarity that allows service employees to act as “boundary spanners.” 6. Employees who engage in organizational citizenship behaviors.
  • 213. Creating a Customer-Responsive Culture (cont’d) Managerial Actions : • Select new employees with personality and attitudes consistent with high service orientation. • Train and socialize current employees to be more customer focused. • Change organizational structure to give employees more control. • Empower employees to make decision about their jobs.
  • 214. Creating a Customer-Responsive Culture (cont’d) Managerial Actions (cont’d) : • Lead by conveying a customer-focused vision and demonstrating commitment to customers. • Conduct performance appraisals based on customer-focused employee behaviors. • Provide ongoing recognition for employees who make special efforts to please customers.
  • 215. Spirituality and Organizational Culture Workplace Spirituality The recognition that people have an inner life that nourishes and is nourished by meaningful work that takes place in the context of the community. Characteristics: • Strong sense of purpose • Focus on individual development • Trust and openness • Employee empowerment • Toleration of employee expression
  • 216. Job Satisfaction • Measuring Job Satisfaction – Single global rating – Summation score • How Satisfied Are People in Their Jobs? – Job satisfaction declined to 50.4% in 2002 – Decline attributed to: • Pressures to increase productivity and meet tighter deadlines • Less control over work
  • 217. The Effect of Job Satisfaction on Employee Performance • Satisfaction and Productivity – Satisfied workers aren’t necessarily more productive. – Worker productivity is higher in organizations with more satisfied workers. • Satisfaction and Absenteeism – Satisfied employees have fewer avoidable absences. • Satisfaction and Turnover – Satisfied employees are less likely to quit. – Organizations take actions to retain high performers and to weed out lower performers.
  • 218. How Employees Can Express Dissatisfaction Exit Voice Behavior directed toward leaving the organization. Active and constructive attempts to improve conditions. Loyalty Neglect Passively waiting for conditions to improve. Allowing conditions to worsen.
  • 219. Responses to Job Dissatisfaction
  • 220. Job Satisfaction and OCB • Satisfaction and Organizational Citizenship Behavior (OCB) – Satisfied employees who feel fairly treated by and are trusting of the organization are more willing to engage in behaviors that go beyond the normal expectations of their job.
  • 221. Job Satisfaction and Customer Satisfaction • Satisfied employees increase customer satisfaction because: – They are more friendly, upbeat, and responsive. – They are less likely to turnover which helps build long-term customer relationships. – They are experienced. • Dissatisfied customers increase employee job dissatisfaction.
  • 222. Conflict • Conflict Defined – Is a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about. • Is that point in an ongoing activity when an interaction “crosses over” to become an interparty conflict. – Encompasses a wide range of conflicts that people experience in organizations • Incompatibility of goals • Differences over interpretations of facts • Disagreements based on behavioral expectations
  • 223. Transitions in Conflict Thought Traditional View of Conflict The belief that all conflict is harmful and must be avoided. Causes: • Poor communication • Lack of openness • Failure to respond to employee needs
  • 224. Transitions in Conflict Thought (cont’d) Human Relations View of Conflict The belief that conflict is a natural and inevitable outcome in any group. Interactionist View of Conflict The belief that conflict is not only a positive force in a group but that it is absolutely necessary for a group to perform effectively.
  • 225. Functional versus Dysfunctional Conflict Functional Conflict Conflict that supports the goals of the group and improves its performance. Dysfunctional Conflict Conflict that hinders group performance.
  • 226. Types of Conflict Task Conflict Conflicts over content and goals of the work. Relationship Conflict Conflict based on interpersonal relationships. Process Conflict Conflict over how work gets done.
  • 228. Stage I: Potential Opposition or Incompatibility • Communication – Semantic difficulties, misunderstandings, and “noise” • Structure – – – – – – Size and specialization of jobs Jurisdictional clarity/ambiguity Member/goal incompatibility Leadership styles (close or participative) Reward systems (win-lose) Dependence/interdependence of groups • Personal Variables – Differing individual value systems – Personality types
  • 229. Stage II: Cognition and Personalization Perceived Conflict Felt Conflict Awareness by one or more parties of the existence of conditions that create opportunities for conflict to arise. Emotional involvement in a conflict creating anxiety, tenseness, frustration, or hostility. Conflict Definition Negative Emotions Positive Feelings
  • 230. Stage III: Intentions Intentions Decisions to act in a given way. Cooperativeness: • Attempting to satisfy the other party’s concerns. Assertiveness: • Attempting to satisfy one’s own concerns.
  • 232. Stage III: Intentions (cont’d) Competing A desire to satisfy one’s interests, regardless of the impact on the other party to the conflict. Collaborating A situation in which the parties to a conflict each desire to satisfy fully the concerns of all parties. Avoiding The desire to withdraw from or suppress a conflict.
  • 233. Stage III: Intentions (cont’d) Accommodating The willingness of one party in a conflict to place the opponent’s interests above his or her own. Compromising A situation in which each party to a conflict is willing to give up something.
  • 234. Stage IV: Behavior Conflict Management The use of resolution and stimulation techniques to achieve the desired level of conflict.
  • 236. Conflict Management Techniques Conflict Resolution Techniques • Problem solving • Superordinate goals • Expansion of resources • Avoidance • Smoothing • Compromise • Authoritative command • Altering the human variable • Altering the structural variables
  • 237. Conflict Management Techniques Conflict Resolution Techniques • Communication • Bringing in outsiders • Restructuring the organization • Appointing a devil’s advocate
  • 238. Stage V: Outcomes • Functional Outcomes from Conflict – Increased group performance – Improved quality of decisions – Stimulation of creativity and innovation – Encouragement of interest and curiosity – Provision of a medium for problem-solving – Creation of an environment for self-evaluation and change • Creating Functional Conflict – Reward dissent and punish conflict avoiders.
  • 239. Stage V: Outcomes • Dysfunctional Outcomes from Conflict – Development of discontent – Reduced group effectiveness – Retarded communication – Reduced group cohesiveness – Infighting among group members overcomes group goals
  • 240. Negotiation Negotiation A process in which two or more parties exchange goods or services and attempt to agree on the exchange rate for them. BATNA The Best Alternative To a Negotiated Agreement; the lowest acceptable value (outcome) to an individual for a negotiated agreement.
  • 241. Bargaining Strategies Distributive Bargaining Negotiation that seeks to divide up a fixed amount of resources; a win-lose situation. Integrative Bargaining Negotiation that seeks one or more settlements that can create a win-win solution.
  • 242. Distributive Versus Integrative Bargaining Bargaining Characteristic Distributive Characteristic Integrative Characteristic Available resources Fixed amount of resources to be divided Variable amount of resources to be divided Primary motivations I win, you lose I win, you win Primary interests Opposed to each other Convergent or congruent with each other Focus of relationships Short term Long term
  • 243. Staking Out the Bargaining Zone
  • 245. Issues in Negotiation • The Role of Personality Traits in Negotiation – Traits do not appear to have a significantly direct effect on the outcomes of either bargaining or negotiating processes. • Gender Differences in Negotiations – Women negotiate no differently from men, although men apparently negotiate slightly better outcomes. – Men and women with similar power bases use the same negotiating styles. – Women’s attitudes toward negotiation and their success as negotiators are less favorable than men’s.
  • 246. Why American Managers Might Have Trouble in CrossCultural Negotiations  Italians, Germans, and French don’t soften up executives with   praise before they criticize. Americans do, and to many Europeans this seems manipulative. Israelis, accustomed to fastpaced meetings, have no patience for American small talk. British executives often complain that their U.S. counterparts chatter too much. Indian executives are used to interrupting one another. When Americans listen without asking for clarification or posing questions, Indians can feel the Americans aren’t paying attention. Americans often mix their business and personal lives. They think nothing, for instance, about asking a colleague a question like, “How was your weekend?” In many cultures such a question is seen as intrusive because business and private lives are totally compartmentalized.
  • 247. Third-Party Negotiations Mediator A neutral third party who facilitates a negotiated solution by using reasoning, persuasion, and suggestions for alternatives. Arbitrator A third party to a negotiation who has the authority to dictate an agreement.
  • 248. Third-Party Negotiations (cont’d) Conciliator A trusted third party who provides an informal communication link between the negotiator and the opponent. Consultant An impartial third party, skilled in conflict management, who attempts to facilitate creative problem solving through communication and analysis.
  • 250. Conflict-Handling Intention: Competition • When quick, decisive action is vital (in emergencies); on important issues. • Where unpopular actions need implementing (in cost cutting, enforcing unpopular rules, discipline). • On issues vital to the organization’s welfare. • When you know you’re right. • Against people who take advantage of noncompetitive behavior.
  • 251. Conflict-Handling Intention: Collaboration • To find an integrative solution when both sets of concerns are too important to be compromised. • When your objective is to learn. • To merge insights from people with different perspectives. • To gain commitment by incorporating concerns into a consensus. • To work through feelings that have interfered with a relationship.
  • 252. Conflict-Handling Intention: Avoidance • When an issue is trivial, or more important issues are pressing. • When you perceive no chance of satisfying your concerns. • When potential disruption outweighs the benefits of resolution. • To let people cool down and regain perspective. • When gathering information supersedes immediate decision. • When others can resolve the conflict effectively • When issues seem tangential or symptomatic of other issues.
  • 253. Conflict-Handling Intention: Accommodation • When you find you’re wrong and to allow a better position to be heard. • To learn, and to show your reasonableness. • When issues are more important to others than to yourself and to satisfy others and maintain cooperation. • To build social credits for later issues. • To minimize loss when outmatched and losing. • When harmony and stability are especially important. • To allow employees to develop by learning from mistakes.
  • 254. Conflict-Handling Intention: Compromise • When goals are important but not worth the effort of potential disruption of more assertive approaches. • When opponents with equal power are committed to mutually exclusive goals. • To achieve temporary settlements to complex issues. • To arrive at expedient solutions under time pressure. • As a backup when collaboration or competition is unsuccessful.
  • 255. Where We Are Now
  • 256. Project Management Structures • Challenges to Organizing Projects – The uniqueness and short duration of projects relative to ongoing longer-term organizational activities – The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas. • Choosing an Appropriate Project Management Structure – The best system balances the needs of the project with the needs of the
  • 257. Project Management Structures • Organizing Projects: Functional organization – Different segments of the project are delegated to respective functional units. – Coordination is maintained through normal management channels. – Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success.
  • 259. Functional Organization of Projects • Advantages • Disadvantages 1. No Structural Change 1. Lack of Focus 2. Flexibility 2. Poor Integration 3. In-Depth Expertise 3. Slow 4. Easy Post-Project Transition 4. Lack of Ownership
  • 260. Project Management Structures (cont’d) • Organizing Projects: Dedicated Teams – Teams operate as separate units under the leadership of a full-time project manager. – In a projectized organization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.
  • 262. Project Organization: Dedicated Team • Advantages • Disadvantages 1. Simple 1. Expensive 2. Fast 2. Internal Strife 3. Cohesive 3. Limited Technological Expertise 4. Cross-Functional Integration 4. Difficult Post-Project Transition
  • 264. Project Management Structures (cont’d) • Organizing Projects: Matrix Structure – Hybrid organizational structure (matrix) is overlaid on the normal functional structure. • Two chains of command (functional and project) • Project participants report simultaneously to both functional and project managers. – Matrix structure optimizes the use of resources. • Allows for participation on multiple projects while performing normal functional duties. • Achieves a greater integration of expertise and project requirements.
  • 266. Division of Project Manager and Functional Manager Responsibilities in a Matrix Structure Project Manager Negotiated Issues Functional Manager What has to be done? Who will do the task? How will it be done? When should the task be done? Where will the task be done? How much money is available to do the task? Why will the task be done? How will the project involvement impact normal functional activities? How well has the total project been done? Is the task satisfactorily completed? How well has the functional input been integrated? TABLE 3.1
  • 267. Different Matrix Forms • Weak Form – The authority of the functional manager predominates and the project manager has indirect authority. • Balanced Form – The project manager sets the overall plan and the functional manager determines how work to be done. • Strong Form – The project manager has broader control and
  • 268. Project Organization: Matrix Form • Advantages 1. Efficient 2. Strong Project Focus 3. Easier Post-Project Transition 4. Flexible • Disadvantages 1. Dysfunctional Conflict 2. Infighting 3. Stressful 4. Slow
  • 269. Choosing the Appropriate Project Management Structure • Organization (Form) Considerations – How important is the project to the firm’s success? – What percentage of core work involves projects? – What level of resources (human and physical) are available?
  • 270. Choosing the Appropriate Project Management Structure (cont’d) • Project Considerations – Size of project – Strategic importance – Novelty and need for innovation – Need for integration (number of departments involved) – Environmental complexity (number of external interfaces) – Budget and time constraints
  • 271. Key Dimensions Defining an Organization’s Culture FIGURE 3.5
  • 272. Organizational Culture • Organizational Culture Defined – A system of shared norms, beliefs, values, and assumptions which bind people together, thereby creating shared meanings. – The “personality” of the organization that sets it apart from other organizations. • Provides a sense of identify to its members. • Helps legitimize the management system of the organization. • Clarifies and reinforces standards of behavior.
  • 273. Identifying Cultural Characteristics • Study the physical characteristics of an organization. • Read about the organization. • Observe how people interact within the organization. • Interpret stories and folklore surrounding the organization.
  • 274. Organizational Culture Diagnosis Worksheet Power Corp. I. Physical Characteristics: Architecture, office layout, décor, attire Corporate HQ is 20 Story modern building—president on top floor. Offices are bigger in the top floors than lower floors. Formal business attire (white shirts, ties, power suits, . . . ) Power appears to increase the higher up you are. II. Public Documents: Annual reports, internal newsletters, vision statements At the heart of the Power Corp. Way is our vision . . . to be the global energy company most admired for its people, partnership and performance. Integrity. We are honest with others and ourselves. We meet the highest ethical standards in all business dealings. We do what we say we will do. III. Behavior: Pace, language, meetings, issues discussed, decision-making style, communication patterns, rituals Hierarchical decision-making, pace brisk but orderly, meetings start on time and end on time, subordinates choose their words very carefully when talking to superiors, people rarely work past 6:00 P.M., president takes top performing unit on a boat cruise each year . . . IV. Folklore: Stories, anecdotes, heroines, heroes, villains Young project manager was fired after going over his boss’s head to ask for additional funds. Stephanie C. considered a hero for taking complete responsibility for a technical error. Jack S. was labeled a traitor for joining chief competitor after working for Power Corp. for 15 years. FIGURE 3.6
  • 275. Implications of Organizational Culture for Organizing Projects • Challenges for Project Managers in Navigating Organizational Cultures – Interacting with the culture and subcultures of the parent organization – Interacting with the project’s clients or customer organizations – Interacting with other organizations connected to the project
  • 276. Cultural Dimensions of an Organization Supportive of Project Management FIGURE 3.7
  • 277. Key Terms Balanced matrix Dedicated project team Matrix Organizational culture Projectitis Projectized organization Project Office (PO) Strong matrix Weak matrix
  • 278. Organization of Product Development Projects at ORION FIGURE C3.1
  • 279. Traditional Master Plan at ORION FIGURE C3.2
  • 280. Proposed Project Organization for the Jaguar Project FIGURE C3.3
  • 282. Mechanisms for Sustaining Organizational Culture FIGURE A3.1
  • 283. Project Management Structures (cont’d) • Organizing Projects: Network Organizations – An alliance of several organizations for the purpose of creating products or services. • A “hub” or “core” firm with strong core competencies outsources key activities to a collaborative cluster of satellite organizations.
  • 284. Project Organization: Network Form • Advantages – Cost Reduction – High Level of Expertise – Flexible • Disadvantages – Coordination of Breakdowns – Loss of Control – Conflict
  • 285. McDonald’s Thinks Globally and Acts Locally • What are your thoughts on McDonald’s approach to international business? • What about their concept of thinking globally but acting locally. Why is it a good idea? • What can other businesses learn from McDonald’s example? Exploring Behavior in Action
  • 286. Knowledge Objectives 1. Define globalization and discuss the forces that influence this phenomenon. 2. Discuss three types of international involvement by associates and managers and describe problems that can arise with each. 3. Explain how international involvement by associates and managers varies across firms. 4. Describe high-involvement management in the international arena, emphasizing the adaptation of this management approach to different cultures. 5. Identify and explain the key ethical issues in international business.
  • 287. Forces of Globalization Globalization – The trend toward a unified global economy involving free trade and a free flow of capital between countries • Products, services, people, technologies, and financial capital move • • relatively freely across national borders Tariffs, currency laws, travel restrictions, immigration restrictions, and other barriers to these international flows become less difficult to manage Unified world market in which to sell products and services, and acquire resources
  • 288. Culture Shared values and taken-for-granted assumptions that govern acceptable behavior and thought patterns in a country and that give a country much of its uniqueness. “Many fear that unique cultures around the world will disappear over time if the world becomes one unified market for goods and services.” Thoughts?
  • 289. Opportunities and Challenges Political Risks Growth Diversification of Risk Economic Risks Challenges Opportunities Economies of Scale Managerial Risks Location Advantages Exhibit 3-1: Opportunities and Challenges for Firms with International Involvement
  • 291. Internationally Focused Jobs Well suited to associates who thrive on challenge Typically member of geographically dispersed teams Individual Issues Virtual Teams Swift Trust
  • 292. Learning About a Counterpart’s Culture • Don’t attempt to identify another’s culture too quickly • Beware of the Western bias toward taking actions • Avoid the tendency to formulate simple perceptions of others’ cultural values • Don’t assume that your values are the best for the organization • Recognize that norms for interactions involving outsiders may differ from those for interactions between compatriots • Be careful about making assumptions regarding cultural values and expected behaviors based on the published dimensions of a person’s national culture Adapted from Exhibit 3-2: Learning about a Counterpart’s Culture
  • 293. Foreign Job Assignments Expatriates Culture Shock Ethnocentrism Building Relationships Spousal Adjustment Adjusting to Local Culture Effectiveness at Developing a Feeling of Being at Home
  • 294. Training for Expatriates • Train the entire family, if there is one • Departure orientation • Key cultural information • Conversational language training • Convince busy families of need for training
  • 295. After Arrival • • • • Additional training Continued language training Social support Reintegration process
  • 296. Glass Border • Historically, fewer international assignments • • for women Results in issues of development and knowledge for higher-level jobs Impact on human capital
  • 297. Are Asian Women Breaking the Glass Border? • What role do cultural values and traditions still • • play in the Asian business world? Are more Asian women taking on leadership roles? How will this impact business in the future? What are the potential negative consequences for Asian companies that do not make the best use of all their human capital? Experiencing Strategic OB
  • 298. Foreign Nationals as Colleagues Some issues involve different: Values Ways of Thinking Norms Thought Patterns Working Styles Decision Styles
  • 299. Context Cultures High-context culture Low-context culture • Value personal relationships • Develop agreements based on trust • Favor slow, ritualistic negotiations • Value performance and expertise • Develop formal agreements • Engage in efficient negotiations Japan South Korea United States Germany
  • 300. Time Orientation Monochronic • Prefer to do one task in a give time period • Dislike multi-tasking • Prefer to do one task without interruption • Prompt, schedule driven and time-focused North America Northern Europe Many Japanese Polychronic • Comfortable doing more than one task at a time • Not troubled by interruptions • Time is less of a guiding force • Plans are flexible Latin America Southern Europe South Asia Southeast Asia
  • 301. Cultural Intelligence The ability to separate the aspects of behavior that are based in culture as opposed to unique to the individual or all humans in general.
  • 302. Opportunities for International Participation Multi-domestic strategy Global strategy Transnational strategy
  • 304. Organizational Design Multi-domestic Global Transnational Delegation of power to local units High Low Medium/Low Inter-unit resource flows between and among local units Low Low/ Medium High International resource flows from and/or controlled by corporate HQ Low High Low/ Medium Adapted from Exhibit 3-3: International Approaches and Related Organizational Characteristics
  • 305. International Participation Multi-domestic Opportunities for Associates and Managers Global Transnational Low High High Adapted from Exhibit 3-3: International Approaches and Related Organizational Characteristics
  • 306. Dimensions of National Culture Power Distance Individualism Uncertainty Avoidance In-group Collectivism Gender Egalitarianism Assertiveness National Culture Future Orientation Exhibit 3-4: Dimensions of National Culture Humane Orientation Performance Orientation
  • 307. National Cultures Culture Dimension India Germany United States M H M M/H M M/L Individualism M H M Assertiveness L/M H H In-group collectivism H L/M M/L Gender egalitarianism L M/L M Future orientation M M M Performance orientation M M H H/M L M Uncertainty avoidance Power distance Humane orientation L – Low M – Medium Adapted from Exhibit 3-5: National Culture in India, Germany, and the United States H – High
  • 308. Managing Diverse Cultures What are your thoughts about Hofstede’s studies on culture? Geert Hofstede What are your thoughts about the cultural issues in the companies mentioned? Experiencing Strategic OB
  • 309. National Culture and High-Involvement Management Must be implemented according to a country’s cultural characteristics. Information sharing and decision power can be adapted to different levels of: • • • • Power-distance Uncertainty avoidance Individualism Assertiveness
  • 310. National Culture and High-Involvement Management Information Sharing Decision Power and Individual Autonomy Decision Power and Self-Managing Teams What are your thoughts regarding AES’s process?
  • 311. Ethics in the International Context Principles of proper conduct focused on issues such as: Corruption Exploitation of Labor Environmental Impact
  • 312. Absence of Corruption Rankings Top Five Bottom Five 1. Iceland 155. Turkmenistan 2. Finland 155. Myanmar 2. New Zealand 155. Haiti 4. Denmark 158. Bangladesh 5. Singapore 158. Chad United States 17 Adapted from Exhibit 3-6: Absence of Corruption in Select Countries
  • 313. Managerial Advice Caux Round Table: Ethical Principles for Business Responsibilities Business Behavior Support for Multilateral Trade Economic and Social Impact Respect for Rules Respect for the Environment Avoidance of Illicit Operations
  • 314. The Strategic Lens 1. Given the complexity and challenges in operating in foreign countries, why do organizations enter international markets? 2. How can understanding and managing cultural diversity among associates contribute positively to an organization’s performance? 3. How can being knowledgeable of diverse cultures enhance an individual’s professional career?
  • 315. The specific objectives of this chapter are: Motivation Across Cultures 1. DEFINE motivation, and explain it as a psychological process. 2. EXAMINE the hierarchy-of-needs, twofactor, and achievement motivation theories, and assess their value to international human resource management.
  • 316. The specific objectives of this chapter are: Motivation Across Cultures 3. DISCUSS how an understanding of employee satisfaction can be useful in human resource management throughout the world. 4. EXAMINE the value of process theories in motivating employees worldwide.
  • 317. The specific objectives of this chapter are: Motivation Across Cultures 5. RELATE the importance of job design, work centrality, and rewards to understanding how to motivate employees in an international context.
  • 318. The Nature of Motivation • Motivation A psychological process through which unsatisfied wants or needs lead to drives that are aimed at goals or incentives. The Basic Motivation Process Unsatisfied need Drive toward goal to satisfy need Attainment of goal (need satisfaction) Adapted from Figure Figure 12–1: The Basic Motivation Process McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.
  • 319. The Nature of Motivation The Universalist Assumption • The first assumption is that the motivation process is universal, that all people are motivated to pursue goals they value—what the work-motivation theorists call goals with “high valence” or “preference” – The process is universal – Culture influences the specific content and goals pursued – Motivation differs across cultures
  • 320. The Nature of Motivation The Assumption of Content and Process • Content Theories of Motivation Theories that explain work motivation in terms of what arouses, energizes, or initiates employee behavior. • Process Theories of Motivation Theories that explain work motivation by how
  • 321. The Hierarchy-of-Needs Theory The Maslow Theory • Maslow’s theory rests on a number of basic assumptions: – Lower-level needs must be satisfied before higherlevel needs become motivators – A need that is satisfied no longer serves as a motivator – There are more ways to satisfy higher-level than there are ways to satisfy lower-level needs
  • 322. Maslow’s Need Hierarchy Self-Actualization Needs Esteem Needs Social Needs Safety Needs Physiological Needs Desires to reach one’s full potential, to become every thing one is capable of becoming as a human being. Needs for power and status. Desires to interact and affiliate with others and to feel wanted by others. Desires for security, stability, and the absence of pain. Basic physical needs for water, food, clothing, and shelter. Adapted from Figure 12–2: Maslow’s Need Hierarchy McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.