Introduction to the Field of Organizational Behavior

Introduction to the Field of Organizational Behavior
MN201 Chapter I

Pixar Animation Studios
OB practices have helped Pixar Animation Studios to become the world’s most successful animation studio Employee competencies People-centered Teamwork and org learning Constructive conflict John Lassiter Chief Creative Officer of Pixar and Disney 1-2

Organizational Behavior and Organizations
The study of what people think, feel, and do in and around organizations Organizations Groups of people who work interdependently toward some purpose John Lassiter Chief Creative Officer of Pixar and Disney 1-3

Why Study OB? Understand and predict the need and to satisfy the need
Influence behavior – get things done OB improves an organization’s financial health OB is for everyone 1-4

Four Perspectives of Organizational Effectiveness
Open Systems Perspective Organizational Learning Perspective High-Performance WP Perspective Stakeholder Perspective NOTE: Need to consider all four perspectives when assessing a company’s effectiveness 1-5

Open Systems Perspective
Organizations are complex systems that “live” within (and depend upon) the external environment Effective organizations Maintain a close “fit” with changing conditions Transform inputs to outputs efficiently and flexibly Open systems perspective lays the foundation for the other three perspectives or organizational effectiveness 1-6

Open Systems Perspective
Feedback Environment 1-7

Organizational Learning Perspective
An organization’s capacity to acquire, share, use, and store valuable knowledge Need to consider both stock and flow of knowledge Stock: intellectual capital Flow: org learning processes of acquisition, sharing, and use 1-8

Intellectual Capital Human Capital Structural Capital
Knowledge that people possess and generate Structural Capital Knowledge captured in systems and structures Relationship Capital Value derived from satisfied customers, reliable suppliers, etc. 1-9

Organizational Learning Processes
KNOWLEDGE ACQUISITION KNOWLEDGE SHARING KNOWLEDGE USE Extracting information and ideas from its environment as well as through insight Distributing knowledge throughout the organization Applying knowledge to organizational processes in ways that improves the organization’s effectiveness Examples in practice Hiring skilled staff Posting case studies on intranet Giving staff freedom to try out ideas 1-10

Organizational Memory
The storage and preservation of intellectual capital Retain intellectual capital by: Keeping knowledgeable employees Transferring knowledge to others Transferring human capital to structural capital 1-11

High Performance Work Practices (HPWPs)
HPWPs are internal systems and structures that are associated with successful companies Employees are competitive advantage Value of employees increased through specific practices. Maximum benefit when org practices are bundled 1-12

High Performance Work Practices
HPWPs include: Employee involvement and job autonomy (and their combination as self-directed teams). Employee competence (training, selection, etc.). Performance-based rewards 1-13

Stakeholder Perspective
Stakeholders: any entity who affects or is affected by the firm’s objectives and actions Challenges with stakeholder perspective: Stakeholders have conflicting interests Firms have limited resources 1-14

Stakeholder Perspective
Lockheed Martin is rated by engineering students as an “ideal” employer Pays attention to its many stakeholders Relies on values and ethics to guide decisions Strong emphasis on corporate social responsibility (e.g. photo shows clean-up after hurricane Katrina) Lockheed Martin 1-15

Stakeholders: Values and Ethics
Values and ethics prioritize stakeholder interests Values Stable, evaluative beliefs, guide preferences for outcomes or courses of action in various situations Ethics Moral principles/values, determine whether actions are right/wrong and outcomes are good or bad Lockheed Martin 1-16

Stakeholders and CSR Stakeholder perspective includes corporate social responsibility (CSR) Benefit society and environment beyond the firm’s immediate financial interests or legal obligations Organization’s contract with society Triple bottom line Economy, society, environment Lockheed Martin 1-17

Types of Individual Behavior
Task Performance Goal-directed behaviors under person’s control Organizational Citizenship Contextual performance – cooperation and helpfulness beyond required job duties more 1-18

Types of Individual Behavior (con’t)
Counterproductive Work Behaviors Voluntary behaviors that potentially harm the organization Joining/staying with the Organization Agreeing to employment relationship; remaining in that relationship Maintaining Work Attendance Attending work at required times 1-19

Globalization Economic, social, and cultural connectivity with people in other parts of the world Effects of globalization on organizations New structures Increasing diversity Increasing competitive pressures, intensification 1-20

Increasing Workforce Diversity
Surface-level diversity Observable demographic and other overt differences in people (e.g. race, ethnicity, gender, age) Deep-level diversity Differences in psychological characteristics (e.g. personalities, beliefs, values, and attitudes) Example: Differences across age cohorts (e.g. Gen-Y) Implications Leveraging the diversity advantage Also diversity challenges (e.g. teams, conflict) Ethical imperative of diversity 1-21

Employment Relationships
Work/life balance Minimizing conflict between work and nonwork demands number one indicator of career success Virtual work Using information technology to perform one’s job away from the traditional physical workplace Telework – issues of replacing face time, clarifying employment expectations 1-22

Organizational Behavior Anchors
Multidisciplinary anchor Many OB concepts adopted from other disciplines OB develops its own theories, but scans other fields Systematic research anchor OB researchers rely on scientific method Should apply evidence-based management, but… Bombarded with theories and models Challenge translating general theories to specific situations Swayed by consultant marketing Perceptual biases -- ignoring evidence contrary to our beliefs 1-23

Organizational Behavior Anchors (con’t)
Contingency anchor A particular action may have different consequences in different situations Need to diagnose the situation and select best strategy under those conditions Multiple levels of analysis anchor Individual, team, organizational level of analysis OB topics usually relevant at all three levels of analysis 1-24

More About Organizations
An organization is a coordinated unit consisting of at least two people who function to achieve a common goal or sets of goals. Entities that enable society to pursue accomplishments that cannot be achieved by individuals acting alone. © 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Perception and Learning in Organizations
CHAPTER 3 Lecturer: LONG BUNTENG Organization Behavior MN201 Perception and Learning in Organizations

Vodafone Executive Grahame Maher
Vodafone executive Grahame Maher keeps his perceptions in focus by discarding the executive suite and working alongside employees every day. Bob Finlayson/Newspix

Perception Defined The process of selecting, organizing, and interpreting information in order to make sense of the world around us. Bob Finlayson/Newspix

Perceptual Process Model
Environmental Stimuli Feeling Hearing Seeing Smelling Tasting Selective Attention Organization and Interpretation Attitudes and Behavior

Selective Attention Characteristics of the object Perceptual context
size, intensity, motion, repetition, novelty Perceptual context Characteristics of the perceiver attitudes perceptual defense expectations -- condition us to expect events

Perceptual Organization/Interpretation
Categorical thinking Mostly unconscious process of organizing people/things Perceptual grouping principles Closure -- filling in missing pieces Identifying trends Similarity or proximity Mental models Broad world-views or ‘theories-in-use’ Help us to quickly make sense of situations May block recognition of new opportunities/perspectives

Social Identity Theory
Oracle Corp. Employee Employees at other firms An Individual’s Social Identity Live in the United States People living in other countries Graduates from other schools University of Massachussetts Graduate

Social Identity Theory Features
Categorization process compare characteristics of our groups with other groups Homogenization process similar traits within a group; different traits across groups Differentiation process develop less favorable images of people in groups other than our own

Stereotyping & Social Identity in Engineering
Women are underrepresented in engineering and computer science partly because: Social identity Women dislike the ”geek” stereotype of engineers and computer scientists Sex role stereotyping Women discouraged from becoming engineers Prejudice Still some bias against female engineering students Mel Melcon/ Los Angeles Times

Stereotyping Process of assigning traits to people based on their membership in a social category Categorical thinking Strong need to understand and anticipate others’ behavior Enhances our self-perception and social identity Mel Melcon/ Los Angeles Times

Minimizing Stereotyping Biases
Diversity awareness training Educate employees about the benefits of diversity and dispel myths Meaningful interaction Contact hypothesis Decision-making accountability Making people accountable for their decisions motivates them to consider objective info rather than stereotypes

Attribution Process Internal Attribution External Attribution
Perception that person’s behavior is due to motivation/ability rather than situation or fate External Attribution Perception that behavior is due to situation or fate rather than the person

Rules of Attribution Internal Attribution External Attribution
Frequently Consistency Seldom Seldom Consensus Frequently Frequently Distinctiveness Seldom External Attribution

Attribution Errors Fundamental Attribution Error Self-Serving Bias
attributing own actions to external factors and other’s actions to internal factors Self-Serving Bias attributing our successes to internal factors and our failures to external factors

Self-Fulfilling Prophecy Cycle
Supervisor forms expectations Employee’s behavior matches expectations Expectations affect supervisor’s behavior Supervisor’s behavior affects employee

Self-Fulfilling Prophecy Contingencies
Self-fulfilling prophecy effect is strongest: At the beginning of the relationship (e.g. employee joins the team) When several people have similar expectations about the person When the employee has low rather than high past achievement

Other Perceptual Errors
Primacy first impressions Recency most recent information dominates perceptions Halo one trait forms a general impression Projection believe other people do the same things or have the same attitudes as you

Improving Perceptions
Empathy Sensitivity to the feelings, thoughts, and situation of others Cognitive and emotional component Self-awareness Awareness of your values, beliefs and prejudices Applying Johari Window

Know Yourself (Johari Window)
Feedback Known to Self Unknown to Self Known to Others Open Area Blind Hidden Unknown Open Area Blind Unknown Hidden Disclosure Unknown to Others

Definition of Learning
A relatively permanent change in behavior (or behavior tendency) that occurs as a result of a person’s interaction with the environment

Learning and Behavior Learning affected behavior through three MARS model elements: Ability -- learning increases skills and knowledge Role perceptions -- learning clarifies roles and priorities Motivation -- learning is necessary for some need fulfillment

Behavior Modification
We “operate” on the environment alter behavior to maximize positive and minimize adverse consequences Learning is viewed as completely dependent on the environment Human thoughts are viewed as unimportant

A-B-Cs of Behavior Modification
Antecedents What happens before behavior Warning light flashes Behavior What person says or does Machine operator turns off power Consequences What happens after behavior Co-workers thank operator Example

Contingencies of Reinforcement
Consequence is introduced No consequence Consequence is removed Behavior increases/ maintained Positive reinforcement Negative reinforcement Punishment Extinction Punishment Behavior decreases

Schedules of Reinforcement
behaviors Continuous Fixed ratio Variable ratio Time (Days) Fixed interval Variable interval

Behavior Modification in Practice
Behavior modification is used in: every day life to influence behavior of others company programs to reduce absenteeism, improve safety, etc. Behavior modification problems include: Reward inflation Ethical concern that variable ratio schedule is a lottery Behaviorist philosophy vs. learning through mental processes

Social Learning Theory
Behavioral modeling Observing and modeling behavior of others Learning behavior consequences Observing consequences that others experience Self-reinforcement Reinforcing our own behavior with consequences within our control

Kolb’s Experiential Learning Model
Concrete experience Active experimentation Reflective observation Abstract conceptualization

Developing a Learning Orientation
Value the generation of new knowledge Reward experimentation Recognize mistakes as part of learning Encourage employees to take reasonable risks

Action Learning Experiential learning in which employees, usually in teams, investigate and apply solutions to a situation that is both real and complex, with immediate relevance to the company Concrete experience Learning meetings Team conceptualizes and applies a solution to a problem

Perception and Learning in Organizations

Workplace Emotions, Attitudes, and Stress
© 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Positive Emotions at Mott MacDonald
To attract and keep talented employees, companies are finding creative ways to generate positive emotions in the workplace. Employees at Mott MacDonald have plenty of fun. For example, the Abu Dhabi oil and gas team has an annual desert safari, complete with camel rides (shown in photo). © 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Emotions Defined Psychological, behavioral, and physiological episodes experienced toward an object, person, or event that create a state of readiness. Most emotions occur without our awareness Moods – lower intensity emotions without any specific target source © 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Attitudes versus Emotions
Judgments about an attitude object Experiences related to an attitude object Based mainly on rational logic Based on innate and learned responses to environment Usually stable for days or longer Usually experienced for seconds or less

Traditional Model of Attitudes
Purely cognitive approach Beliefs: established perceptions of attitude object Feelings: calculation of good or bad based on beliefs about the attitude object Behavioral intentions: motivation to act in response to the attitude object Problem: Ignores important role of emotions in shaping attitudes

Attitudes: From Beliefs to Behavior
Perceived Environment Attitude Feelings Beliefs Behavioral Intentions Cognitive process Emotional process Emotional Episodes Behavior

Emotions, Attitudes, and Behavior
How emotions influence attitudes: Feelings are shaped by cumulative emotional episodes (not just evaluation of beliefs) We ‘listen in’ on our emotions when determining our attitude toward something Potential conflict between cognitive and emotional processes Emotions also directly affect behavior e.g. facial expression

Generating Positive Emotions at Work
The emotions-attitudes-behavior model illustrates that attitudes are shaped by ongoing emotional experiences. Thus, successful companies actively create more positive than negative emotional episodes. © 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Cognitive Dissonance A state of anxiety that occurs when an individual’s beliefs, feelings and behaviors are inconsistent with one another Most common when behavior is: known to others done voluntarily can’t be undone

Emotional Labor Defined
Effort, planning and control needed to express organizationally desired emotions during interpersonal transactions. Emotional labor is higher when job requires: frequent and long duration display of emotions displaying a variety of emotions displaying more intense emotions © 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Emotional Labor Across Cultures
Displaying or hiding emotions varies across cultures Minimal emotional expression and monotonic voice in Korea, Japan, Austria Encourage emotional expression in Kuwait, Egypt, Spain, Russia

Emotional Labor Challenges
Difficult to display expected emotions accurately, and to hide true emotions Emotional dissonance Conflict between true and required emotions Potentially stressful with surface acting Less stress through deep acting

Emotional Intelligence Defined
Ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others

Model of Emotional Intelligence
Relationship Management Managing other people’s emotions Highest Social Awareness Perceiving and understanding the meaning of others’ emotions Self-management Managing our own emotions Self-awareness perceiving and understanding the meaning of your own emotions Lowest

Emotional Intelligence Competencies
Self (personal competence) Other (social competence) Self-awareness Social awareness Recognition of emotions Self-management Relationship management Regulation of emotions

Improving Emotional Intelligence
Emotional intelligence is a set of competencies (aptitudes, skills) Can be learned, especially through coaching EI increases with age -- maturity

Job Satisfaction A person's evaluation of his or her job and work context A collection of attitudes about specific facets of the job

EVLN: Responses to Dissatisfaction
Exit • Leaving the situation • Quitting, transferring Voice • Changing the situation • Problem solving, complaining Loyalty • Patiently waiting for the situation to improve Neglect • Reducing work effort/quality • Increasing absenteeism

Job Satisfaction and Performance
Happy workers are somewhat more productive workers, but: General attitude is a poor predictor of specific behaviors Job performance affects satisfaction only when rewarded Effect on performance strongest in complex jobs because of greater employee influence on job performance (e.g. limited in assembly lines)

Happy Staff=Happy Customers at Wegman’s
Wegmans Food Market enjoys strong customer loyalty and low employee turnover by keeping employees happy. © 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Job Satisfaction and Customers
Job satisfaction increases customer satisfaction and profitability because: Job satisfaction affects mood, leading to positive behaviors toward customers Job satisfaction reduces employee turnover, resulting in more consistent and familiar service

Organizational Commitment
Affective commitment Emotional attachment to, identification with, and involvement in an organization Continuance commitment Calculative attachment – stay because too costly to quit

Building (Affective) commitment
Justice/ Support • Apply humanitarian values • Support employee wellbeing Shared Values • Values congruence Trust • Employees trust org leaders • Job security supports trust Organisational Comprehension • Know firm’s past/present/future • Open and rapid communication Employee Involvement • Employees feel part of company • Involvement demonstrates trust

What is Stress? An adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being A physiological and psychological condition that prepares us to adapt to hostile or noxious environmental conditions Eustress vs. distress

General Adaptation Syndrome
Stage 1 Alarm Reaction Stage 2 Resistance Stage 3 Exhaustion Normal Level of Resistance

Consequences of Distress
Physiological Cardiovascular disease, hypertension, headaches Behavioral Work performance, accidents, absenteeism, aggression, poor decisions Psychological Dissatisfaction, moodiness, depression, emotional fatigue

Job Burnout Process Interpersonal and Role-Related Stressors Emotional
Exhaustion Physiological, psychological, and behavioral consequences Cynicism Reduced Personal Accomplishment

What are Stressors? Stressors are the causes of stress -- any environmental condition that places a physical or emotional demand on the person. Some common workplace stressors include: Harassment an incivility Work overload Low task control

Psychological Harassment
Repeated and hostile or unwanted conduct, verbal comments, actions or gestures, that affect an employee's dignity or psychological or physical integrity and that result in a harmful work environment for the employee. © 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Sexual Harassment Unwelcome conduct -- detrimental effect on work environment or job performance Quid pro quo employment or job performance is conditional on unwanted sexual relations Hostile work environment an intimidating, hostile, or offensive working environment

Work Overload and Task Control Stressors
Work Overload Stressor Working more hours, more intensely than one can cope Affected by globalization, consumerism, ideal worker norm Task Control Stressor Due to lack control over how and when tasks are performed Stress increases with responsibility

Individual Differences in Stress
Different threshold levels of resistance to stressor Use different stress coping strategies Resilience to stress Due to personality and coping strategies Workaholism Highly involved in work Inner pressure to work Low enjoyment of work © Photodisc. With permission. © 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Managing Work-Related Stress
Remove the stressor Minimize/remove stressors Withdraw from the stressor Vacation, rest breaks Change stress perceptions Positive self-concept, humor Control stress consequences Healthy lifestyle, fitness, wellness Receive social support

Workplace Emotions, Attitudes, and Stress
© 2010 The McGraw-Hill Companies, Inc. All rights reserved McShane/Von Glinow OB 5e

Motivation in the Workplace

Motivation Through Recognition
Courtesy Sanova Panafric Hotel Panfric Hotel general manager David Gachuru (shown in photo giving an award to employee Matayo Moyale) motivates employees with good old-fashioned praise and recognition.

Challenges of Motivating Employees
Revised employment relationship Due to globalization, technology, restructuring Potentially undermines trust and commitment Flatter organizations Fewer supervisors to monitor performance Changing workforce Gen-X/Gen-Y bring different expectations

Maslow’s Needs Hierarchy Objectives
Holistic integrative view of needs rather than studying each need in isolation of others Humanistic responses to higher needs are influenced by social dynamics, not just instinct Positivistic need gratification is just as important as need deprivation

Maslow’s Needs Hierarchy Theory
Self-actual-ization Seven categories capture most needs Need to know Need for beauty Five categories placed in a hierarchy Esteem Belongingness Safety Physiological

Maslow’s Needs Hierarchy Theory
Self-actual-ization Physiological Safety Belongingness Esteem Need to know Need for beauty Lowest unmet need has strongest effect When lower need is satisfied, next higher need becomes the primary motivator Self-actualization -- a growth need because people desire more rather than less of it when satisfied

Evaluating Maslow’s Theory
Self-actual-ization Physiological Safety Belongingness Esteem Need to know Need for beauty Lack of support for theory Values influence needs People have different needs hierarchies -- not universal Maslow’s categories don’t cover all needs Needs change more rapidly than Maslow stated

Four-Drive Theory Drive to Acquire Drive to Bond Drive to Learn
• Need to take/keep objects and experiences • Basis of hierarchy and status Drive to Bond • Need to form relationships and social commitments • Basis of social identity Drive to Learn • Need to satisfy curiosity and resolve conflicting information • Basis of self-actualization Drive to Defend • Need to protect ourselves • Reactive (not proactive) drive • Basis of fight or flight

Features of Four Drives
Innate and hardwired -- everyone has them Independent of each other (no hierarchy of drives) Complete set -- no drives are excluded from the model

How Four Drives Affect Needs
Four drives determine which emotions are automatically tagged to incoming information Drives generate independent and often competing emotions that demand our attention Social skill set determines how to translate drives into needs and effort

Four Drive Theory of Motivation
Drive to Acquire Social norms Personal values Past experience Drive to Bond Mental skill set resolves competing drive demands Goal-directed choice and effort Drive to Learn Drive to Defend Mental skill set uses social norms, personal values, and experience to translate competing drives into needs and effort

Learned Needs Theory Some needs can be learned Need for achievement
Desire for challenging and somewhat risky goals, feedback, recognition Need for affiliation Desire to seek approval, conform, and avoid conflict Try to project a favorable self-image Need for power Desire to control one’s environment Personalized versus socialized power

Implications of Needs/Drives Theories
Four-drive theory provide a balanced opportunity for employees to fulfill drives employees continually seek fulfillment of drives avoid having conditions support one drive over others Maslow allow employees to self-actualize power of positive experiences Offer employees a choice of rewards

Expectancy Theory of Motivation
E-to-P Expectancy P-to-O Expectancy Outcomes & Valences Outcome 1 + or - Effort Performance Outcome 2 + or - Outcome 3 + or -

Increasing E-to-P Expectancy
Train employees Select people with required competencies Provide role clarification Provide sufficient resources Provide coaching and feedback

Increasing P-to-O Expectancy
Measure performance accurately Describe outcomes of good and poor performance Explain how rewards are linked to past performance

Increasing Outcome Valences
Ensure that rewards are valued Individualize rewards Minimize countervalent outcomes

Goal Setting at Speedera
Speedera Networks employees achieved a challenging revenue goal in one quarter, for which all employees in California and India were rewarded with a free Hawaiian trip. Courtesy of Akamai

Effective Goal Setting
Specific Relevant Challenging Task Effort Task Performance Commitment Participation Feedback

Goal Difficulty and Performance
High Area of Optimal Goal Difficulty Task Performance Low Moderate Challenging Impossible Goal Difficulty

Characteristics of Effective Feedback
Specific Effective Feedback Credible Relevant Sufficiently frequent Timely

Multisource (360-degree) Feedback
Supervisor Customer Project leader Evaluated Employee Co-worker Co-worker Subordinate Subordinate Subordinate

Executive Coaching Uses various behavioral methods to help clients identify and achieve goals Just-in-time personal development using feedback and other techniques Generally effective, but many techniques make it difficult to pinpoint what is effective

Preferred Feedback Sources
Depends on the situation Nonsocial sources (gauges, printouts) Better for goal progress Considered more accurate, less damaging Social sources (supervisor, co-workers) Better for ‘good news’ feedback Improves self-image and esteem

Keeping Pay Equitable at Costco
Costco Wholesale CEO Jim Sinegal (shown in this photo) thinks the large wage gap between many executives and employees is blatantly unfair. “Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor is wrong,” says Sinegal, whose salary and bonus are a much smaller multiple of what his staff earn.

Elements of Equity Theory
Outcome/input ratio inputs -- what employee contributes (e.g., skill) outcomes -- what employee receives (e.g., pay) Comparison other person/people against whom we compare our ratio not easily identifiable Equity evaluation compare outcome/input ratio with the comparison other

Overreward vs Underreward Inequity
Comparison Other You Outcomes Inputs Overreward Inequity Outcomes Inputs Underreward Inequity

Correcting Inequity Feelings
Actions to correct inequity Example Reduce out inputs Less organizational citizenship Increase our outcomes Ask for pay increase Increase other’s inputs Ask coworker to work harder Reduce other’s outputs Ask boss to stop giving other preferred treatment Change our perceptions Start thinking that other’s perks aren’t really so valuable Change comparison other Compare self to someone closer to your situation Leave the field Quit job

Equity Sensitivity Benevolents Equity Sensitives Entitleds
Tolerant of being underrewarded Equity Sensitives Want ratio to be equal to the comparison other Entitleds Prefer receiving proportionately more than others

Organizational Justice Components
Distribution Principles • Emotions • Attitudes • Behaviors Distributive Justice Perceptions Structural Rules Procedural Justice Perceptions Social Rules

Procedural Justice Structural Rules
Voice Consistent Bias-Free Listens to all Knowledgeable Appealable

Motivation in the Workplace

Work-Related Stress and Stress Management

High Stress in Electronic Games
Josh Holmes has fond memories of working at electronic games giant Electronic Arts, but admits that the long hours were stressful. “From the minute I joined the company (EA), I put every waking hour of my day into my work…It definitely took its toll,” says Holmes, who now runs an electronic games company that emphasizes work-life balance.

What is Stress? An adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being

General Adaptation Syndrome
Stage 1 Alarm Reaction Stage 2 Resistance Stage 3 Exhaustion Normal Level of Resistance

Stressors and Stress Outcomes
Work Stressors Interpersonal Role-related Task control Organizational/ Physical Environment Individual Differences Consequences of Stress Physiological Behavioral Psychological Stress Nonwork Stressors

What are Stressors? Stressors are the causes of stress -- any environmental condition that places a physical or emotional demand on the person.

Interpersonal Stressors
Considered the most common group of workplace stressors Include: Team dynamics Organizational politics Bad bosses Workplace violence Psychological and sexual harassment

Psychological Harassment
Repeated and hostile or unwanted conduct, verbal comments, actions or gestures, that affect an employee's dignity or psychological or physical integrity and that result in a harmful work environment for the employee

Sexual Harassment Unwelcome conduct -- detrimental effect on work environment or job performance Quid pro quo employment or job performance is conditional on unwanted sexual relations Hostile work environment an intimidating, hostile, or offensive working environment

Minimizing Harassment
Develop policies and culture of a more respectful workplace Screen job applicants for past incidents where they have harassed others Use multi-source (360-degree) feedback to identify harassing behavior Develop a trustworthy conflict resolution process

Role-Related Stressors
Role conflict Incongruity or incompatibility of expectations associated with the person’s role Occurs when two roles conflict with each other Occurs when personal values conflict with work roles Role ambiguity uncertain task and social expectations Work overload increased hours and intensity

Task Control Stressors
Stress increases when employees lack control over: How and when tasks are performed Pace of work activity Low task control is a higher stressor when job also has high responsibility

Org & Physical Environment Stressors
Organizational Most prevalent is downsizing, which affects layoff survivors reduced job security chaos of change additional workloads guilt of having a job as others lose theirs Physical Environment Due to excessive noise, poor lighting and hazards

Blackberry Divorce Nick Salaysay (shown in photo) admits that his work routinely gets mixed in with his personal time. “I have a BlackBerry, so I check my a lot when I'm supposed to be on vacation," says the corporate lawyer. Research indicates that when electronic devices spill work into home life, they increase the risk of strain-based stress. Calgary Herald/Mikael Kjellstrom

Work-Nonwork Stressors
Time-based conflict due to business travel, inflexible and/or rotating work schedules for women -- still do most household chores Strain-based conflict work stress affects home, and vice versa Role behavior conflict incompatible work and family roles Calgary Herald/Mikael Kjellstrom

Stress and Occupations
Accountant Artist Car Mechanic Forest Ranger Hospital manager Doctor (GP) Psychologist School principal President Prison officer Teacher Nurse Low-Stress Occupations Medium-Stress Occupations High-Stress Occupations

Individual Differences in Stress
Different threshold levels of resistance to stressor Use different stress coping strategies Perceive the situation differently Knowledge and skill Natural optimism and confidence (resilience) © Photodisc. With permission.

Individual Differences: Resilience
Capability of individuals to cope successfully in the face of significant change, adversity, or risk Personality traits extroversion, low neuroticism, internal locus of control, high tolerance of change, and high self-esteem Adaptability to stressors high emotional intelligence good problem-solving skills productive coping strategies Inner strength/sense of purpose Workplace spirituality

Workaholism Work addicts (classic workaholics)
Highly involved in work High drive to succeed Low enjoyment of work Have “Type A” behavior pattern -- impatient, competitive, temper, interrupts others Enthusiastic workaholics Highly involved in work, high drive to succeed, and high enjoyment of work Work enthusiasts High work involvement and work enjoyment, but LOW drive to succeed

Consequences of Stress
Physiological Cardiovascular disease, hypertension, headaches Behavioral Work performance, accidents, absenteeism, aggression, poor decisions Psychological Dissatisfaction, moodiness, depression, emotional fatigue

Role-Related Stressors
Job Burnout Process Interpersonal and Role-Related Stressors Emotional Exhaustion Physiological, psychological, and behavioral consequences Cynicism Reduced Efficacy

Stress Management Strategies
Remove the Stressor Stress Management Strategies Withdraw from the Stressor Receive Social Support Control Stress Consequences Change Stress Perceptions

Remove the Stressor Stress audits -- investigate sources of stress
Change corporate culture and reward system Provide environment that supports empowerment Person-job matching Work-life balance initiatives

Work-Life Balance Flexible work time Job sharing Teleworking
Personal leave Childcare support

Stress Mgt. At Liggett-Stashower
When employees at Liggett-Stashower, Inc. in Cleveland need a short break from the daily stresses of work, they retreat to one of three theme rooms, including this karaoke room. “The higher the stress level, the more singing there is going on,” says Liggett’s art director. Courtesy of Liggett Stashower, Inc.

Withdraw from the Stressor
Permanent withdrawal Remove employees from jobs not aligned with their competencies Temporary withdrawal Coffee/lunch breaks Karaoke breaks (photo) Sabbaticals Courtesy of Liggett Stashower, Inc.

Other Stress Mgt Strategies
Change stress perceptions Self-confidence, self-leadership Control stress consequences Relaxation and meditation Fitness and wellness programs Social support Emotional and informational

Work-Related Stress and Stress Management

Decision Making and Creativity

Decision Making at Radical
Ron Sangha/ BC Business Radical Entertainment founder Ian Wilkinson (third from right) meets with employees every week to reinforce the electronic games developer’s emphasis on creative decision making and employee involvement.

Decision Making Defined
Ron Sangha/ BC Business Decision making is a conscious process of making choices among one or more alternatives with the intention of moving toward some desired state of affairs.

Rational Choice Decision Process

Problem Identification Process
Problems and opportunities are not announced or pre-defined need to interpret ambiguous information Problem identification uses both logical analysis and unconscious emotional reaction during perceptual process need to pay attention to both logic and emotional reaction in problem identification

Famous Missed Opportunities
The top-rated television commercial in history -- the Apple Macintosh “Why won’t be like 1984” -- almost wasn’t aired because every outside director on Apple’s board despised it. The ad violated the mental models that they held of what a good ad should look like. Apple Computer Inc. Used with permission

Problem Identification Challenges
Stakeholder framing Perceptual defense Mental models Decisive leadership Solution-focused problems Apple Computer Inc. Used with permission

Identifying Problems Effectively
Be aware of perceptual and diagnostic limitations Understand mental models Discussing the situation with colleagues -- see different perspectives Apple Computer Inc. Used with permission

Making Choices: Rational vs OB Views
Goals Rational: Clear, compatible, agreed upon OB: Ambiguous, conflicting, lack agreement Processing Information Rational: People can process all information OB: People process only limited information Evaluation Timing Rational: Choices evaluated simultaneously OB: Choices evaluated sequentially more

Making Choices: Rational vs OB (con’t)
Standards Rational: Evaluate against absolute standards OB: Evaluate against implicit favorite Info Quality Rational: People rely on factual information OB: Rely on perceptually distorted information Decision Objective Rational: Maximization -- the optimal choice OB: Satisficing -- a “good enough” choice

Emotions and Making Choices
Emotional marker process forms preferences before we consciously think about choices Moods and emotions influence the decision process affects vigilance, risk aversion, etc. We ‘listen in’ on our emotions and use that information to make our choices

Intuitive Decision Making
Ability to know when a problem or opportunity exists and select the best course of action without conscious reasoning Intuition as emotional experience Gut feelings are emotional signals Not all emotional signals are intuition Intuition as rapid unconscious analysis Uses action scripts

Making Choices more Effectively
Systematically evaluate alternatives Balance emotions and rational influences Scenario planning

Escalation of Commitment
Escalation of commitment occurred when the British government continued funding the Concorde supersonic jet long after it’s lack of commercial viability was apparent. Some scholars refer to escalation of commitment as the “Concorde fallacy.” © Corel Corp. With permission

Escalation of Commitment Causes
Self-justification Prospect theory effect Perceptual blinders Closing costs © Corel Corp. With permission

Evaluating Decisions Better
Separate decision choosers from evaluators Establish a preset level to abandon the project Involve several people in the evaluation process

Employee Involvement Defined
The degree to which employees influence how their work is organized and carried out Level of control over decision making Different levels and forms of involvement

Employee Involvement Model
Potential Involvement Outcomes Better problem identification More/better solutions generated Best choice more likely Higher decision commitment Employee Involvement Contingencies of Involvement

Contingencies of Involvement
Higher employee involvement is better when: Decision Structure Problem is new & complex (i.e nonprogrammed decision) Knowledge Source Employees have relevant knowledge beyond leader Decision Commitment Employees would lack commitment unless involved Risk of Conflict Norms support firm’s goals Employee agreement likely

Creative Process Model
Verification Insight Incubation Preparation

Characteristics of Creative People
Above average intelligence Persistence Relevant knowledge and experience Inventive thinking style

Creative Work Environments
Learning orientation Encourage experimentation Tolerate mistakes Intrinsically motivating work Task significance, autonomy, feedback Open communication and sufficient resources Team competition and time pressure have complex effect on creativity

Creative Activities Review abandoned projects
• Explore issue with other people Redefine the Problem • Storytelling • Artistic activities • Morphological analysis Associative Play • Diverse teams • Information sessions Internal tradeshows Cross- Pollination

Decision Making and Creativity

Solutions to Creativity Brainbusters

Double Circle Problem

Nine Dot Problem

Nine Dot Problem Revisited

Word Search FCIRVEEALTETITVEERS

Burning Ropes One Hour to Burn Completely After first rope burned
i.e. 30 min. One Hour to Burn Completely

Chapter 8 Extras

Levels of Employee Involvement
High involvement Employees have complete decision making power (e.g.. SDWTs) Full consultation Employees offer recommendations (e.g.. gain sharing) Selective consultation Employees give information, but don’t know the problem High Medium Low

Foundations of Team Dynamics

Teamwork In the Securities Industry
Paul Tramontano (2nd from left) and other professionals in the securities industry have formed teams to better serve clients. Tramontano heads a 12-person team (called the Topeka Wealth Management Group) at Citigroup’s Smith Barney.

What are Teams? Groups of two or more people
Exist to fulfill a purpose Interdependent -- interact and influence each other Mutually accountable for achieving common goals Perceive themselves as a social entity

Groups versus Teams All teams are groups
Some groups are just people assembled together Teams have task interdependence whereas some groups do not (e.g., group of employees enjoying lunch together)

Many Types of Teams Departmental teams
Production/service/ leadership teams Self-directed teams Advisory teams Skunkworks Task force (project) teams Virtual teams Communities of practice

Why Rely on Teams Compared with individuals working alone, teams tend to: Make better decisions Make better products and services due to more knowledge and expertise Increase employee engagement

Why Informal Groups Exist
Innate drive to bond Social identity We define ourselves by group memberships Goal accomplishment Emotional support

Team Effectiveness Defined
Fulfills objectives assigned to the team Fulfills satisfaction and well-being of team members Maintains team’s survival

Team Effectiveness Model
Organizational and Team Environment Reward systems Communication systems Physical space Organizational environment Organizational structure Organizational leadership Task characteristics Team size Team composition Team Design Achieve organizational goals Satisfy member needs Maintain team survival Team Effectiveness Team development Team norms Team roles Team cohesiveness Team Processes

Team’s Task and Size Task characteristics Team size
Better when tasks are clear, easy to implement Share common inputs, processes, or outcomes Task interdependence Team size Smaller teams are better But large enough to accomplish task

Levels of Task Interdependence
High Reciprocal A B C Sequential A B C Pooled Resource A B C Low

Shell Looks for Team Players
Shell holds the 5-day Gourami Business Challenge in Europe, North America, and Asia to observe how well the university students work in teams. One of the greatest challenges is for students from different cultures and educational specializations to work together. Gourami session in Asia -- Courtesy of Shell International Ltd Gourami session in U.S.A. -- Courtesy of Shell U.S.

Team Composition Motivation Competencies
To perform task To work cooperatively the team Competencies Skills and knowledge to perform the task Ability to work effectively with each other Homogeneous or heterogeneous, depending on task requirements Gourami session in Asia -- Courtesy of Shell International Ltd Gourami session in U.S.A. -- Courtesy of Shell U.S.

Homogeneous vs. Heterogeneous Teams
Homogeneous Teams Heterogeneous Teams Less conflict Faster team development Performs better on cooperative tasks Better coordination High satisfaction of team members More conflict Longer team development Performs better on complex problems More creative Better representation outside the team

Stages of Team Development
Performing Adjourning Existing teams might regress back to an earlier stage of development Norming Storming Forming

Team Norms Informal rules and expectations team establishes to regulate member behaviors Norms develop through: Initial team experiences Critical events in team’s history Experience/values members bring to the team

Changing Team Norms Introduce norms when forming teams
Select members with preferred norms Discuss counter-productive norms Reward behaviors representing desired norms Disband teams with dysfunctional norms

Conformity to Team Norms
100 Day 12: Peer pressure begins Day 28: Employee has doubled performance 75 Units Pressed per Hour 50 Day 20: Employee begins working alone Day 1: Employee begins job with team 25 4 8 12 16 20 24 28 32 36 40 Production Days

Team Roles Role -- set of behaviors people are expected to perform in certain positions Formally assigned or informally acquired based on personality preferences Belbin’s Team Role Model Nine team roles -- all needed for optimal team performance People choose preferred role based on their personality Some roles more important at particular stages

Team Cohesiveness at Lighthouse
Photo: Robert Hirtie. Courtesy of Atlantic Business Magazine & Lighthouse Publishing The staff at Lighthouse Publishing is a highly cohesive group that successfully keeps its much larger competitors off-guard. This cohesiveness has particularly come through when faced with new and unexpected challenges, such as new products or machine breakdowns.

Team Cohesiveness Defined
Photo: Robert Hirtie. Courtesy of Atlantic Business Magazine & Lighthouse Publishing The degree of attraction people feel toward the team and their motivation to remain members Calculative -- members believe the team will fulfill goals and needs Emotional -- team is part of person’s social identity

Influences on Team Cohesiveness
Member Similarity Increasing Team Cohesiveness External Challenges Team Size Team Success Member Interaction Somewhat Difficult Entry

Team Cohesiveness Outcomes
Want to remain members Willing to share information Strong interpersonal bonds Resolve conflict effectively Better interpersonal relationships

Cohesiveness and Performance
Moderately high task performance High task performance Team Norms Support Company Goals Moderately low task performance Low task performance Team Norms Oppose Company Goals Low Team Cohesiveness High Team Cohesiveness

The Trouble With Teams Individuals better/faster on some tasks
Process losses - cost of developing and maintaining teams Companies don’t support best work environment for team dynamics Social loafing

How to Minimize Social Loafing
Make individual performance more visible Form smaller teams Specialize tasks Measure individual performance Increase employee motivation Increase job enrichment Select motivated employees

Foundations of Team Dynamics

Developing High-Performance Teams

Self-Directed Teams at Chrysler
Chrysler CEO Tom La Sorda is pushing the automaker into an era of “smart manufacturing” which relies more on self-directed work teams (SDWTs). This photo shows La Sorda meeting employees at the company’s plant in Saltillo, Mexico, which has already introduced SDWTs.

Self-Directed Teams Defined
Formal groups that complete an entire piece of work requiring several interdependent tasks and have substantial autonomy over the execution of these tasks.

Self-Directed Work Team Attributes
Complete an entire piece of work requiring interdependent tasks Clusters team members together Minimal interdependence with other teams Substantial autonomy over execution of the team’s tasks Control most work inputs, flow, and outputs Little or no supervision

Sociotechnical Systems Elements
Responsible for entire work process Make entire product, component, or provide service fairly independent from other work units Sufficient autonomy freedom to divide up and coordinate work empowers team members Control key variances team controls factors affecting work quality/quantity Joint optimization balancing social and technical systems

SDWTs at Standard Motor Products
Standard Motor Products successfully introduced self- directed work teams (SDWTs) at its Kansas plant, but some supervisors had difficulty changing from a command-and-control to mentor/facilitator management style. Courtesy of Standard Motor Products

Challenges to SDWTs Cross-cultural issues Management resistance
Difficult in some cultures Management resistance Concerned about losing power, status, job security Shift from command/control to mentor/facilitator Employee and labor union resistance Employees uncomfortable with new roles, skills Union concerns -- more stress, lost work rules Courtesy of Standard Motor Products

PricewaterhouseCooper’s Virtual Teams
Peter Nicolas (shown in photo) and many employees at PricewaterhouseCoopers spend much of their time working in virtual teams. “Virtual teaming is the norm for us,” says Nicolas, a Learning Solutions manager at the accounting firm’s offices in New Jersey. Courtesy of PricewaterhouseCoopers

Virtual Teams Defined Teams whose members operate across space, time, and organizational boundaries and are linked through information technologies to achieve organizational tasks. Courtesy of PricewaterhouseCoopers

Why Virtual Teams? Increasingly possible because of:
Information technologies Knowledge-based work Increasingly necessary because of: Knowledge management Globalization

High-Performance Virtual Teams
Virtual teams perform better with: Team Environment Creative combination of communication channels Team Tasks Structured tasks Moderate interdependence Team Size Smaller size than traditional team performing similar tasks more

High-Performance Virtual Teams (con’t)
Virtual teams perform better with: Team Composition Good communication and cross-cultural skills in team members Team Processes Some face-to-face meetings to assist team development Team Trust Important in all teams, but especially virtual teams

Trust Defined A psychological state comprising the intention to accept vulnerability based upon positive expectations of the intent or behavior of another person

Knowledge-based Trust
Three Levels of Trust High Identity-based Trust Knowledge-based Trust Calculus-based Trust Low

Three Levels of Trust (con’t)
Calculus-based trust Based on deterrence Fragile, limited, dependent on punishment Knowledge-based trust Based on predictability and competence Fairly robust, develops over time Identification-based trust Based on common mental models and values Increases with person’s social identity with team

Propensity to Trust Some people are inherently more willing to trust others Propensity to trust influenced by personality, values, and socialization experiences Also varies with emotions at the moment

Swift Trust in Teams People typically join a virtual or conventional team with a moderate or high level of trust Explanations for this swift trust: people usually believe their team-mates are reasonably competent (knowledge-based trust) people tend to develop some degree of social identify with the team But swift trust is fragile

Team Decision Making Constraints
Time constraints Time to organize/coordinate Production blocking Evaluation apprehension Belief that other team members are silently evaluating you Conformity to peer pressure Suppressing opinions that oppose team norms

Team Constraints: Groupthink
Tendency in highly cohesive teams to value consensus at the price of decision quality More common when the: Team is highly cohesive Team is isolated from outsiders Team leader is opinionated Team faces external threats Team has recent failures Team lacks clear guidance

Team Constraints: Group Polarization
Tendency for teams to make more extreme decisions than individuals alone Riskier options usually taken because of prospect theory effect fallacy -- dislike losing more than they like winning

Group Polarization Process
Team discussion processes High risk Social support Persuasive arguments Shifting responsibility High risk Individual opinions after meeting Individual opinions before meeting Low risk Low risk

General Guidelines for Team Decisions
Team norms should encourage critical thinking Sufficient team diversity Ensure neither leader nor any member dominates Maintain optimal team size Introduce effective team structures

NASA Encourages Constructive Conflict
Courtesy of Johnson Space Center/NASA NASA replaced the assigned seating rectangular table at the Johnson Space Center with a C-shaped arrangement where people sit wherever they want (shown in photo). The table is intended to avoid hierarchy so NASA managers can have more constructive debate.

Constructive Conflict
Courtesy of Johnson Space Center/NASA Occurs when team members debate their different perceptions about an issue in a way that keeps the conflict focused on the task rather than people. Problem: constructive conflict easily slides into personal attacks

Rules of Brainstorming
Speak freely Don’t criticize Provide as many ideas as possible Build on others’ ideas

Evaluating Brainstorming
Strengths Produces more innovative ideas Strengthens decision acceptance and team cohesiveness Sharing positive emotions encourages creativity Higher customer satisfaction if clients participate Weaknesses Production blocking still exists Evaluation apprehension exists in many groups Fewer ideas generated than when people work alone

Electronic Brainstorming
Participants share ideas using software Usually in the same room, but may be dispersed Question posted, then participants submit their ideas or comments on computer Comments/ideas appear anonymously on computer screens or at front of room

Evaluating Electronic Brainstorming
Strengths Less production blocking Less evaluation apprehension More creative synergy More satisfaction with process Weaknesses Too structured Technology-bound Candid feedback is threatening Not applicable to all decisions

Nominal Group Technique
Individual Activity Team Activity Individual Activity Describe problem Write down possible solutions Possible solutions described to others Vote on solutions presented

Team Building Any formal intervention directed toward improving the development and functioning of a work team Accelerates team development Applied to existing teams that have regressed in team development

Types of Team Building Role definition Goal setting Problem solving
Interpersonal process

Making Team Building Effective
Some team building activities are successful, but just as many fail because: Team-building activities need to target specific team problems Team building is a continuous process, not a one-shot inoculation Team building needs to occur on-the-job, not just away from the workplace

Developing High-Performance Teams

Introduction to the Field of Organizational Behavior

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