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What Is Organizational Behavior?

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Chapter Learning Objectives

  • After studying this chapter you should be able to:
  • Demonstrate the importance of interpersonal skills in the workplace.
  • Describe the manager’s functions, roles, and skills.
  • Define organizational behavior (OB).
  • Show the value to OB of systematic study.
  • Identify the major behavioral science disciplines that contribute to OB.
  • Demonstrate why there are few absolutes in OB.
  • Identify the challenges and opportunities managers have in applying OB concepts.
  • Compare the three levels of analysis in this book’s OB model.

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The Importance of Interpersonal Skills

  • Understanding OB helps determine manager effectiveness
  • Technical and quantitative skills are important
  • But leadership and communication skills are CRITICAL

  • Organizational benefits of skilled managers
  • Lower turnover of quality employees
  • Higher quality applications for recruitment
  • Better financial performance

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What Managers Do

  • They get things done through other people.

  • Management Activities:
  • Make decisions
  • Allocate resources
  • Direct activities of others to attain goals

  • Work in an organization
  • A consciously coordinated social unit composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals.

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Management Functions

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Management Functions: Plan

A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

As managers advance, they do this function more often.

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Management Functions: Organize

Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

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Management Functions: Lead

A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.

It is about PEOPLE!

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Management Functions: Control

Monitoring performance, comparing actual performance with previously set goals, and correcting any deviation.

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  • Discovered ten managerial roles

  • Separated into three groups:

  • Interpersonal
  • Informational
  • Decisional

Mintzberg’s Managerial Roles

E X H I B I T 1–1

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Mintzberg’s Managerial Roles: Interpersonal

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

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Mintzberg’s Managerial Roles: Informational

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

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Mintzberg’s Managerial Roles: Decisional

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

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Katz’s Essential Management Skills

  • Technical Skills
  • The ability to apply specialized knowledge or expertise

  • Human Skills
  • The ability to work with, understand, and motivate other people, both individually and in groups

  • Conceptual Skills
  • The mental ability to analyze and diagnose complex situations

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Luthans’ Study of Managerial Activities

  • Is there a difference in frequency of managerial activity between effective and successful managers?
  • Four types of managerial activity:
  • Traditional Management

Decision-making, planning, and controlling.

  • Communication

Exchanging routine information and processing paperwork

  • Human Resource Management

Motivating, disciplining, managing conflict, staffing and training.

  • Networking

Socializing, politicking, and interacting with others.

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Successful vs. Effective Allocation by Time

E X H I B I T 1–2

Managers who promoted faster (were successful) did different things than did effective managers (those who did their jobs well)

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Organizational Behavior

A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

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Intuition and Systematic Study

The two are complementary means of predicting behavior.

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An Outgrowth of Systematic Study…

Evidence-Based Management (EBM)

Basing managerial decisions on the best available scientific evidence

Must think like scientists:

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Managers Should Use All Three Approaches

The trick is to know when to go with your gut.

– Jack Welsh

  • Intuition is often based on inaccurate information
  • Faddism is prevalent in management
  • Systematic study can be time-consuming

Use evidence as much as possible to inform your intuition and experience. That is the promise of OB.

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Contributing Disciplines

See E X H I B I T 1–3 for details

Many behavioral sciences

have contributed to the

development of

Organizational

Behavior

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Psychology

The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

  • Unit of Analysis:
  • Individual
  • Contributions to OB:
  • Learning, motivation, personality, emotions, perception
  • Training, leadership effectiveness, job satisfaction
  • Individual decision making, performance appraisal attitude measurement
  • Employee selection, work design, and work stress

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Social Psychology

An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

  • Unit of Analysis:
  • Group
  • Contributions to OB:
  • Behavioral change
  • Attitude change
  • Communication
  • Group processes
  • Group decision making

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Sociology

  • Unit of Analysis:

-- Organizational System

  • Contributions to OB:
  • Group dynamics
  • Work teams
  • Communication
  • Power
  • Conflict
  • Intergroup behavior

-- Group

  • Formal organization theory
  • Organizational technology
  • Organizational change
  • Organizational culture

The study of people in relation to their fellow human beings.

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Anthropology

  • Unit of Analysis:

-- Organizational System

  • Contributions to OB:
  • Organizational culture
  • Organizational environment

-- Group

  • Comparative values
  • Comparative attitudes
  • Cross-cultural analysis

The study of societies to learn about human beings and their activities.

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Few Absolutes in OB

Situational factors that make the main relationship between two variables change—e.g., the relationship may hold for one condition but not another.

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Challenges and Opportunities for OB

  • Responding to Globalization
  • Managing Workforce Diversity
  • Improving Quality and Productivity
  • Improving Customer Service
  • Improving People Skills
  • Stimulating Innovation and Change
  • Coping with “Temporariness”
  • Working in Networked Organizations
  • Helping Employees Balance Work-Life Conflicts
  • Creating a Positive Work Environment
  • Improving Ethical Behavior

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Responding to Globalization

  • Increased foreign assignments
  • Working with people from different cultures
  • Coping with anti-capitalism backlash
  • Overseeing movement of jobs to countries with low-cost labor
  • Managing people during the war on terror

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Managing Workforce Diversity

  • The people in organizations are becoming more heterogeneous demographically
  • Embracing diversity
  • Changing U.S. demographics
  • Changing management philosophy
  • Recognizing and responding to differences

See E X H I B I T 1–4

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Developing an OB Model

  • A model is an abstraction of reality: a simplified representation of some real-world phenomenon.
  • Our OB model has three levels of analysis
  • Each level is constructed on the prior level

E X H I B I T 1–5

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Types of Study Variables

Independent (X)

  • The presumed cause of the change in the dependent variable (Y).
  • This is the variable that OB researchers manipulate to observe the changes in Y.

Dependent (Y)

  • This is the response to X (the independent variable).
  • It is what the OB researchers want to predict or explain.
  • The interesting variable!

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Interesting OB Dependent Variables

  • Productivity
  • Transforming inputs to outputs at lowest cost. Includes the concepts of effectiveness (achievement of goals) and efficiency (meeting goals at a low cost).
  • Absenteeism
  • Failure to report to work – a huge cost to employers.
  • Turnover
  • Voluntary and involuntary permanent withdrawal from an organization.
  • Deviant Workplace Behavior
  • Voluntary behavior that violates significant organizational norms and thereby threatens the well-being of the organization and/or any of its members.

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More Interesting OB Dependent Variables

  • Organizational Citizenship Behavior (OCB)
  • Discretionary behavior that is not part of an employee’s formal job requirements, but that nevertheless promotes the effective functioning of the organization.
  • Job Satisfaction
  • A general attitude (not a behavior) toward one’s job; a positive feeling of one's job resulting from an evaluation of its characteristics.

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The Independent Variables

The independent variable (X) can be at any of these three levels in this model:

  • Individual
  • Biographical characteristics, personality and emotions, values and attitudes, ability, perception, motivation, individual learning and individual decision making.
  • Group
  • Communication, group decision making, leadership and trust, group structure, conflict, power and politics, and work teams.
  • Organization System
  • Organizational culture, human resource policies and practices, and organizational structure and design.

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OB Model

E X H I B I T 1–6

Independent Variables (X)

Dependent Variables (Y)

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Summary and Managerial Implications

  • Managers need to develop their interpersonal skills to be effective.
  • OB focuses on how to improve factors that make organizations more effective.
  • The best predictions of behavior are made from a combination of systematic study and intuition.
  • Situational variables moderate cause-and-effect relationships – which is why OB theories are contingent.
  • There are many OB challenges and opportunities for managers today.
  • The textbook is based on the contingent OB model.

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Emotions and Moods

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Chapter Learning Objectives

  • After studying this chapter, you should be able to:
  • Differentiate emotions from moods, and list the basic emotions and moods.
  • Discuss whether emotions are rational and what functions they serve.
  • Identify the sources of emotions and moods.
  • Show the impact emotional labor has on employees.
  • Describe Affective Events Theory and identify its applications.
  • Contrast the evidence for and against the existence of emotional intelligence.
  • Apply concepts about emotions and moods to specific OB issues.
  • Contrast the experience, interpretation, and expression of emotions across cultures.

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Why Were Emotions Ignored in OB?

  • The “Myth of Rationality”
  • Emotions were seen as irrational
  • Managers worked to make emotion-free environments
  • View of Emotionality
  • Emotions were believed to be disruptive
  • Emotions interfered with productivity
  • Only negative emotions were observed

  • Now we know emotions can’t be separated from the workplace

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What are Emotions and Moods?

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See E X H I B I T 8-1

The Basic Emotions

  • While not universally accepted, there appear to be six basic emotions:

Anger

Fear

Sadness

Happiness

Disgust

Surprise

  • All other emotions are subsumed under these six
  • May even be placed in a spectrum of emotion:
  • Happiness – surprise – fear – sadness – anger - disgust

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Basic Moods: Positive and Negative Affect

  • Emotions cannot be neutral.
  • Emotions (“markers”) are grouped into general mood states.
  • Mood states affect perception and therefore perceived reality.

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E X H I B I T 8-2

What Is the Function of Emotion?

  • Do Emotions Make Us Irrational?
  • Expressing emotions publicly may be damaging to social status
  • Emotions are critical to rational decision-making
  • Emotions help us understand the world around us

  • What Functions Do Emotions Serve?
  • Darwin argued they help in survival problem-solving
  • Evolutionary psychology: people must experience emotions as there is a purpose behind them
  • Not all researchers agree with this assessment

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Sources of Emotion and Mood

  • Personality
  • There is a trait component – affect intensity
  • Day and Time of the Week
  • There is a common pattern for all of us

Happier in the midpoint of the daily awake period

Happier toward the end of the week

  • Weather
  • Illusory correlation – no effect
  • Stress
  • Even low levels of constant stress can worsen moods
  • Social Activities
  • Physical, informal, and dining activities increase positive moods

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See E X H I B I T 8-3 and 8-4 for Emotion Timing

More Sources of Emotion and Mood

  • Sleep
  • Poor sleep quality increases negative affect
  • Exercise
  • Does somewhat improve mood, especially for depressed people
  • Age
  • Older folks experience fewer negative emotions
  • Gender
  • Women tend to be more emotionally expressive, feel emotions more intensely, have longer-lasting moods, and express emotions more frequently than do men
  • Due more to socialization than to biology

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Emotional Labor

An employee’s expression of organizationally desired emotions during interpersonal transactions at work.

  • Emotional Dissonance:
  • Employees have to project one emotion while simultaneously feeling another
  • Can be very damaging and lead to burnout
  • Types of Emotions:
  • Felt: the individual’s actual emotions
  • Displayed: required or appropriate emotions

Surface Acting: displaying appropriately but not feeling those emotions internally

Deep Acting: changing internal feelings to match display rules - very stressful

2-*

See E X H I B I T 8-5 for Emotional Labor and Pay

Affective Events Theory (AET)

  • An event in the work environment triggers positive or negative emotional reactions
  • Personality and mood determine response intensity
  • Emotions can influence a broad range of work variables

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E X H I B I T 8-6

Implications of AET

An emotional episode is actually the result of a series of emotional experiences triggered by a single event

Current and past emotions affect job satisfaction

Emotional fluctuations over time create variations in job performance

Emotion-driven behaviors are typically brief and variable

Both negative and positive emotions can distract workers and reduce job performance

  • Emotions provide valuable insights about behavior
  • Emotions, and the minor events that cause them, should not be ignored at work: they accumulate

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Emotional Intelligence (EI)

  • A person’s ability to:
  • Be self-aware

Recognizing own emotions when experienced

  • Detect emotions in others
  • Manage emotional cues and information
  • EI plays an important role in job performance
  • EI is controversial and not wholly accepted
  • Case for EI:

Intuitive appeal; predicts criteria that matter; is biologically-based.

  • Case against EI:

Too vague a concept; can’t be measured; its validity is suspect.

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OB Applications of Emotions and Moods

  • Selection
  • EI should be a hiring factor, especially for social jobs.
  • Decision Making
  • Positive emotions can lead to better decisions.
  • Creativity
  • Positive mood increases flexibility, openness, and creativity.
  • Motivation
  • Positive mood affects expectations of success; feedback amplifies this effect.
  • Leadership
  • Emotions are important to acceptance of messages from organizational leaders.

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More OB Applications of Emotions and Moods

  • Negotiation
  • Emotions, skillfully displayed, can affect negotiations
  • Customer Services
  • Emotions affect service quality delivered to customers which, in turn, affects customer relationships
  • Emotional Contagion: “catching” emotions from others
  • Job Attitudes
  • Can carry over to home, but dissipate overnight
  • Deviant Workplace Behaviors
  • Negative emotions lead to employee deviance (actions that violate norms and threaten the organization)
  • Manager’s Influence
  • Leaders who are in a good mood, use humor, and praise employees increase positive moods in the workplace.

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Global Implications

  • Do people experience emotions equally?
  • No. Culture can determine type, frequency, and depth of experienced emotions
  • Do people interpret emotions the same way?
  • Yes. Negative emotions are seen as undesirable and positive emotions are desirable
  • However, value of each emotion varies across cultures
  • Do norms of emotional expression vary?
  • Yes. Some cultures have a bias against emotional expression; others demand some display of emotion
  • How the emotions are expressed may make interpretation outside of one’s culture difficult

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Summary and Managerial Implications

2-*

  • Moods are more general than emotions and less contextual
  • Emotions and moods impact all areas of OB
  • Managers cannot and should not attempt to completely control the emotions of their employees
  • Managers must not ignore the emotions of their co-workers and employees
  • Behavior predictions will be less accurate if emotions are not taken into account

Emotional Intelligence

It is the ability to monitor one’s own and others’ feelings and emotions, to discriminate among them and to use this information to guide one’s thinking and actions.

WHAT IS EMOTIONAL INTELLIGENCE?

FOUNDATION OF EMOTIONAL INTELLIGENCE

Self Awareness

  • Emotional Self-Awareness
  • Self-Regard
  • Reality Testing

Coping Skills

  • Impulse Control
  • Stress Tolerance
  • Problem Solving
  • Flexibility
  • Optimism

Effective Relationships

  • Interpersonal

Relationships

  • Independence

Interpersonal Skills

  • Empathy
  • Social Responsibility
  • Assertiveness

Personal & Interpersonal Effectiveness

  • Self-Actualization
  • Happiness

plus

is related to

which predicts

and results in

Increasing Emotional Intelligence makes individuals more efficient, productive and successful.

The workforce is using Emotional Intelligence all over the place

WHY STUDY EMOTIONAL INTELLIGENCE?

Organizations can become more productive by recruiting/hiring emotionally smart people and by offering opportunities to enhance these skills through involvement

Emotional Intelligence can be a way to help maximize the potential of your members and in turn your organization

WHY STUDY EMOTIONAL INTELLIGENCE Contd…

Possessing skills related to Emotional Intelligence can help you be prepared to lead others

Having the skills to lead are vital in managing complex organizations

Every day we will interact with others who possess varying degrees of Emotional Intelligence

Being able to work with challenging people is a necessity for the workplace and organization involvement

WHY STUDY EMOTIONAL INTELLIGENCE Contd…

You can assess the overall potential for your organization

Emotional Intelligence influences organizational culture as individuals know their abilities to interface with others .

Organizations with high levels of Emotional Intelligence may be more apt to succeed.

WHY STUDY EMOTIONAL INTELLIGENCE Contd…

Emotional Intelligence is the ability to control and use one’s emotions in a constructive-rather than destructive manner.

Emotional Intelligence allows an individual achieve his/her best performance, while inspiring others.

EMOTIONAL INTELIGENCE:THE NEW SCIENCE OF SUCCESS

Emotional Intelligence is a composite of many other qualities, such as effective oral communication and ability to respond well to set backs.

The Four domains of Emotional Intelligence; SELF-AWARENESS, SELF-MANAGEMENT, SOCIAL AWARENESS and RELATIONSHIP MANAGEMENT.

EMOTIONAL INTELIGENCE:THE NEW SCIENCE OF SUCCESS Contd…

FOUR AREAS OF EMOTIONAL INTELLIGENCE

Self

Others

Awareness

Actions

Self

Awareness

Social

Awareness

Self

Management

Relationship

Management

Positive impact
on others

SELF-AWARENESS

The ability to read one’s own emotions and recognize their impact.

Self-awareness and self management are related to one’s own personal competence.

The Three (3) core dimensions are an EMOTIONAL SELF-AWARENESS, ACCURATE SELF ASSESSMENT and SELF CONFIDENCE.

EMOTIONAL INTELLIGENCE

Emotional Self-Awareness

Aware of one’s own feelings

Aware of triggers

Understands implications of emotions

Has emotional insight

SELF-AWARENESS

SELF ASSESEMENT

Accurate Self-Assessment

Aware of strengths and limitations

Open to feedback

Has a sense of humor about oneself

Solicits honest critiques

SELF CONFIDENCE

Self Confidence

Is confident in job capability

Believes in oneself

Is self-assured

Has presence

EMOTIONAL INTELLIGENCE:
SELF MANAGEMENT

Consists of Six (6) core dimensions:

EMOTIONAL SELF-CONTROL

TRANSPARENCY

ADAPTABILITY

ACHIEVEMENT

INITIATIVE

OPTIMISM

  • Emotional Self control
  • Shows restraint
  • Has patience
  • Responds calmly
  • Stays composed/positive

EMOTIONAL INTELLIGENCE:
SELF MANAGEMENT

  • Transparency
  • Keeps promises
  • Brings up ethical concerns
  • Publicly admits to mistakes
  • Acts on values

EMOTIONAL INTELLIGENCE:
SELF MANAGEMENT

  • Adaptability
  • Open to new ideas
  • Adapts to situations
  • Handles unexpected

demands

  • Adapts or changes strategy

EMOTIONAL INTELLIGENCE:
SELF MANAGEMENT

  • Achievement
  • Improves performance
  • Sets challenging goals
  • Anticipates obstacles
  • Takes calculated risks

EMOTIONAL INTELLIGENCE:
SELF MANAGEMENT

  • Initiative
  • Addresses current opportunities
  • Seeks information
  • Makes extra efforts
  • Initiates actions for the future

EMOTIONAL INTELLIGENCE:
SELF MANAGEMENT

  • Optimism
  • Has positive expectations
  • Is optimistic about the future
  • Is resilient
  • Learns from setbacks

EMOTIONAL INTELLIGENCE:
SELF MANAGEMENT

Social Awareness and relationship management have to do with ones competence in the social arena.

Consists of the following three (3) key components:

Empathy

Organizational Awareness

Service Orientation.

EMOTIONAL INTELLIGENCE:
SOCIAL AWARENESS

EMOTIONAL INTELLIGENCE:
SOCIAL AWARENESS COMPETENCES

Empathy

Listens

Reads nonverbal cues

Open to diversity

Sees others’ perspectives

EMOTIONAL INTELLIGENCE:
SOCIAL AWARENESS COMPETENCES

Organizational Awareness

Understands informal structures

Understands climate and culture

Understands organizational politics

Understands underlying issues

EMOTIONAL INTELLIGENCE:
SOCIAL AWARENESS COMPETENCIES

Service orientation

Makes self available

Monitors satisfaction

Takes personal

responsibility

Matches customer needs

Social Awareness and Relationship

Management have to do with ones competency in the Social arena.

It Consists of Six core (6) areas

EMOTIONAL INTELLIGENCE:
RELATIONSHIP MANAGEMENT

SIX CORE AREAS

  • INSPIRATIONAL LEADERSHIP
  • INFLUENCE.
  • DEVELOPING OTHERS .
  • CHANGE CATALYST .
  • CONFLICT MANAGEMENT.
  • TEAMWORK and COLLABORATION.

EMOTIONAL INTELLIGENCE:
RELATIONSHIP MANAGEMENT

LEADING OTHERS:

  • INSPIRATIONAL LEADERSHIP
  • INFLUENCE
  • DEVELOPING OTHERS

WORKING WITH OTHERS:

  • CHANGE CATALYST
  • CONFLICT MANAGEMENT
  • TEAMWORK and COLLABORATION

EMOTIONAL INTELLIGENCE:
RELATIONSHIP MANAGEMENT

EMOTIONAL INTELLIGENCE:
RELATIONSHIP MANAGEMENT

  • Inspirational leadership

Leads by example

Stimulates enthusiasm

Inspires others

Communicates a compelling vision

EMOTIONAL INTELLIGENCE:
RELATIONSHIP MANAGEMENT

Influence

Engages others

Anticipates impact of actions/words

Uses indirect influence

Develops behind the scenes support

EMOTIONAL INTELLIGENCE:
RELATIONSHIP MANAGEMENT

  • Developing others

Recognizes strengths

Provides support

Gives constructive feedback

Acts as a mentor

EMOTIONAL INTELLIGENCE:
RELATIONSHIP MANAGEMENT

  • Change catalyst

Defines general need for change

Acts to support change

Personally leads change

Champions change

EMOTIONAL INTELLIGENCE:
RELATIONSHIP MANAGEMENT

Conflict management

Airs disagreements

Maintains objectivity

Addresses conflict

Orchestrates win-win solutions

EMOTIONAL INTELLIGENCE:
RELATIONSHIP MANAGEMENT

Teamwork & collaboration

Cooperates

Solicits input

Encourages others

Builds bonds

GOOD NEWS!

  • You can develop Emotional Intelligence!
  • “Rewire” your responses to feelings.
  • Change how you think about this.
  • Alter your behavior.

Performance

Emotions

Thoughts

Behavior

IMPROVING YOUR EMOTIONAL INTELLIGENCE

  • Improving and sustaining Emotional Intelligence takes a concerted effort over several months.

Prepackaged
Seminars

Minimal
results

In-house
Training

Some behavioral results

Individual
Development

Sustained individual performance improvement

Integrated Initiatives
with Coaching and Measurement

Critical mass for sustained group performance improvement

Organizational Interventions

Sustained organizational improvement

Motivation Concepts

4-*

Chapter Learning Objectives

  • After studying this chapter, you should be able to:
  • Describe the three elements of motivation.
  • Identify four early theories of motivation and evaluate their applicability today.
  • Apply the predictions of Cognitive Evaluation theory to intrinsic and extrinsic rewards.
  • Compare and contrast goal-setting theory and Management by Objectives.
  • Contrast reinforcement theory and goal-setting theory.
  • Demonstrate how organizational justice is a refinement of equity theory.
  • Apply the key tenets of expectancy theory to motivating employees.
  • Compare contemporary theories of motivation.
  • Explain to what degree motivation theories are culture-bound.

4-*

Defining Motivation

The result of the interaction between the individual and the situation.

  • The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal – specifically, an organizational goal.

  • Three key elements:
  • Intensity – how hard a person tries
  • Direction – effort that is channeled toward, and consistent with, organizational goals
  • Persistence – how long a person can maintain effort

4-*

Early Theories of Motivation

These early theories may not be valid, but they do form the basis for contemporary theories and are still used by practicing managers.

  • Maslow’s Hierarchy of Needs Theory
  • Alderfer’s ERG (Existence, Relatedness, and Growth)
  • McGregor’s Theory X and Theory Y
  • Herzberg’s Two-Factor Theory
  • McClelland’s Theory of Needs

4-*

Maslow’s Hierarchy of Needs

There is a hierarchy of five needs. As each need is substantially satisfied, the next need becomes dominant.

Assumptions

  • Individuals cannot move to the next higher level until all needs at the current (lower) level are satisfied
  • Must move in hierarchical order

4-*

Lower Order

External

Higher Order

Internal

See E X H I B I T 6-1

Alderfer’s ERG Theory

A reworking of Maslow to fit empirical research.

  • Three groups of core needs:
  • Existence (Maslow: physiological and safety)
  • Relatedness (Maslow: social and status)
  • Growth (Maslow: esteem and self-actualization)
  • Removed the hierarchical assumption
  • Can be motivated by all three at once

  • Popular, but not accurate, theory

4-*

McGregor’s Theory X and Theory Y

  • Two distinct views of human beings: Theory X (basically negative) and Theory Y (positive).
  • Managers used a set of assumptions based on their view
  • The assumptions molded their behavior toward employees

  • No empirical evidence to support this theory.

4-*

Herzberg’s Two-Factor Theory

4-*

See E X H I B I T S 6-2 and 6-3

Key Point: Satisfaction and dissatisfaction are not opposites but separate constructs

Extrinsic and Related to Dissatisfaction

Intrinsic and Related to Satisfaction

Criticisms of Two-Factor Theory

Herzberg says that hygiene factors must be met to remove dissatisfaction. If motivators are given, then satisfaction can occur.

  • Herzberg is limited by his procedure
  • Participants had self-serving bias
  • Reliability of raters questioned
  • Bias or errors of observation
  • No overall measure of satisfaction was used
  • Herzberg assumed, but didn’t research, a strong relationship between satisfaction and productivity

4-*

McClelland’s Three Needs Theory

  • Need for Achievement (nAch)
  • The drive to excel, to achieve in relation to a set of standards, to strive to succeed
  • Need for Power (nPow)
  • The need to make others behave in a way that they would not have behaved otherwise
  • Need for Affiliation (nAff)
  • The desire for friendly and close interpersonal relationships
  • People have varying levels of each of the three needs.
  • Hard to measure

4-*

Performance Predictions for High nAch

  • People with a high need for achievement are likely to:
  • Prefer to undertake activities with a 50/50 chance of success, avoiding very low- or high-risk situations
  • Be motivated in jobs that offer high degree of personal responsibility, feedback, and moderate risk
  • Not necessarily make good managers – too personal a focus. Most good general managers do NOT have a high nAch
  • Need high level of nPow and low nAff for managerial success
  • Good research support, but it is not a very practical theory

4-*

  • Cognitive Evaluation Theory
  • Goal-Setting Theory
  • Management by Objectives (MBO)
  • Self-Efficacy Theory
  • Also known as Social Cognitive Theory or Social Learning Theory
  • Reinforcement Theory
  • Equity Theory
  • Expectancy Theory

Contemporary Theories of Motivation

4-*

Cognitive Evaluation Theory

Providing an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation

  • Major Implications for work rewards
  • Intrinsic and extrinsic rewards are not independent
  • Extrinsic rewards decrease intrinsic rewards
  • Pay should be noncontingent on performance
  • Verbal rewards increase intrinsic motivation; tangible rewards reduce it
  • Self-concordance
  • When the personal reasons for pursuing goals are consistent with personal interests and core values (intrinsic motivation), people are happier and more successful

4-*

See E X H I B I T 6-4

Locke’s Goal-Setting Theory

  • Basic Premise:
  • That specific and difficult goals, with self-generated feedback, lead to higher performance
  • Difficult Goals:
  • Focus and direct attention
  • Energize the person to work harder
  • Difficulty increases persistence
  • Force people to be more effective and efficient
  • Relationship between goals and performance depends on:
  • Goal commitment (the more public the better!)
  • Task characteristics (simple, well-learned)
  • Culture (best match is in North America)

4-*

  • MBO is a systematic way to utilize goal-setting.
  • Goals must be:
  • Tangible
  • Verifiable
  • Measurable
  • Corporate goals are broken down into smaller, more specific goals at each level of organization.
  • Four common ingredients to MBO programs:
  • Goal specificity
  • Participative decision making
  • Explicit time period
  • Performance feedback

Implementation: Management by Objectives

4-*

See E X H I B I T 6-5

Bandura’s Self-Efficacy Theory

  • An individual’s belief that he or she is capable of performing a task.
  • Higher efficacy is related to:

Greater confidence

Greater persistence in the face of difficulties

Better response to negative feedback (work harder)

  • Self-Efficacy complements Goal-Setting Theory.

4-*

See E X H I B I T 6-6

Given Hard Goal

Higher Self-Set Goal

Increased Confidence

Higher Performance

Increasing Self-Efficacy

  • Enactive mastery
  • Most important source of efficacy
  • Gaining relevant experience with task or job
  • “Practice makes perfect”
  • Vicarious modeling
  • Increasing confidence by watching others perform the task
  • Most effective when observer sees the model to be similar to him- or herself
  • Verbal persuasion
  • Motivation through verbal conviction
  • Pygmalion and Galatea effects - self-fulfilling prophecies
  • Arousal
  • Getting “psyched up” – emotionally aroused – to complete task
  • Can hurt performance if emotion is not a component of the task

4-*

  • Similar to Goal-Setting Theory, but focused on a behavioral approach rather than a cognitive one.

  • Behavior is environmentally caused
  • Thought (internal cogitative event) is not important

Feelings, attitudes, and expectations are ignored

  • Behavior is controlled by its consequences – reinforcers
  • Is not a motivational theory but a means of analysis of behavior
  • Reinforcement strongly influences behavior but is not likely to be the sole cause

Reinforcement Theory

4-*

Adams’ Equity Theory

  • Employees compare their ratios of outcomes-to-inputs of relevant others.
  • When ratios are equal: state of equity exists – there is no tension as the situation is considered fair
  • When ratios are unequal: tension exists due to unfairness

Underrewarded states cause anger

Overrewarded states cause guilt

  • Tension motivates people to act to bring their situation into equity

4-*

See E X H I B I T 6-7

  • Can be four different situations:

  • Self-Inside

The person’s experience in a different job in the same organization

  • Self-Outside

The person’s experience in a different job in a different organization

  • Other-Inside

Another individual or group within the organization

  • Other-Outside

Another individual or group outside of the organization

Equity Theory’s “Relevant Others”

4-*

Reactions to Inequity

  • Employee behaviors to create equity:
  • Change inputs (slack off)
  • Change outcomes (increase output)
  • Distort/change perceptions of self
  • Distort/change perceptions of others
  • Choose a different referent person
  • Leave the field (quit the job)
  • Propositions relating to inequitable pay:
  • Paid by time:

Overrewarded employees produce more

Underrewarded employees produce less with low quality

  • Paid by quality:

Overrewarded employees give higher quality

Underrewarded employees make more of low quality

4-*

Justice and Equity Theory

4-*

See E X H I B I T 6-8

Overall perception of what is fair in the workplace.


Vroom’s Expectancy Theory

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 the outcome to the individual.

4-*

See E X H I B I T 6-9

Expectancy of performance success

Instrumentality of success in getting reward

Valuation of the reward in employee’s eyes

Integrating Contemporary Motivation Theories

  • Based on Expectancy Theory

4-*

See E X H I B I T 6-10

Global Implications

  • Motivation theories are often culture-bound.
  • Maslow’s Hierarchy of Needs Theory

Order of needs is not universal

  • McClelland’s Three Needs Theory

nAch presupposes a willingness to accept risk and performance concerns – not universal traits

  • Adams’ Equity Theory

A desire for equity is not universal

“Each according to his need” – socialist/former communists

  • Desire for interesting work seems to be universal.
  • There is some evidence that the intrinsic factors of Herzberg’s Two-Factor Theory may be universal

4-*

Summary and Managerial Implications

  • Need Theories (Maslow, Alderfer, McClelland, Herzberg)
  • Well known, but not very good predictors of behavior
  • Goal-Setting Theory
  • While limited in scope, good predictor
  • Reinforcement Theory
  • Powerful predictor in many work areas
  • Equity Theory
  • Best known for research in organizational justice
  • Expectancy Theory
  • Good predictor of performance variables but shares many of the assumptions as rational decision making

4-*

Motivation: From Concepts to Applications

Chapter Learning Objectives

  • After studying this chapter, you should be able to:
  • Describe the Job Characteristics Model and evaluate the way it motivates by changing the work environment.
  • Compare and contrast the three main ways jobs can be redesigned.
  • Identify three alternative work arrangements and show how they might motive employees.
  • Give examples of employee involvement measures and show how they can motivate employees.
  • Demonstrate how the different types of variable-pay programs can increase employee motivation.
  • Show how flexible benefits turn benefits into motivators.
  • Identify the motivational benefits of intrinsic rewards.

Motivation by Job Design: The JCM

  • Job Characteristics Model (JCM)
  • Hackman and Oldham’s concept that any job can be described through five core job dimensions:

Skill variety – Requirements for different tasks in the job.

Task identity – Completion of a whole piece of work.

Task significance – The job’s impact on others.

Autonomy – Level of discretion in decision making.

Feedback – Amount of direct and clear information on performance.

  • The way elements in a job are organized (job design) impacts motivation, satisfaction, and performance.

The Job Characteristics Model

E X H I B I T 7-1

Source: J.R. Hackman and G.R. Oldham, Work Design (excerpted from pp. 78–80). © 1980 by Addison-Wesley Publishing Co., Inc. Reprinted by permission of Addison-Wesley Longman, Inc.

Employee growth-need strength moderates the relationships.

Motivating Potential Score (MPS)

  • Five dimensions combined into a single predictive index of motivation.
  • 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.

  • While the JCM framework is supported by research, the MPS model isn’t practical and doesn’t work well.

How Can Jobs Be Redesigned?

  • Job Rotation
  • The periodic shifting of a worker from one task to another

  • Job Enlargement
  • The horizontal expansion of jobs

  • Job Enrichment
  • The vertical expansion of jobs

Guidelines for Enriching a Job

E X H I B I T 7-2

Source: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138.

Alternative Work Arrangements

  • Flextime
  • Employees work during a common core time period each day but have discretion in forming their total workday from a flexible set of hours outside the core.

  • Job Sharing
  • The practice of having two or more people split a 40-hour-a-week job

E X H I B I T 7-3

Another Alternative: Telecommuting

  • Telecommuting
  • Employees do their work at home at least two days a week on a computer that is linked to their office.
  • The Virtual Office
  • Employees work out of their home on a relatively permanent basis.
  • Typical Telecommuting Jobs
  • Professional and other knowledge-related tasks
  • Routine information-handling tasks
  • Mobile activities

Reasons for and against Telecommuting

Advantages

  • Larger labor pool
  • Higher productivity
  • Less turnover
  • Improved morale
  • Reduced office-space costs

Disadvantages

  • Employer
  • Less direct supervision of employees
  • Difficult to coordinate teamwork
  • Difficult to evaluate non-quantitative performance
  • Employee
  • May not be as noticed for his or her efforts

Motivation Is Not the Whole Story

P = f(A x M x O)

Employee Involvement

A participative process that uses the input of employees to increase their commitment to the organization’s success.

  • By increasing worker autonomy and control over work lives (involvement), organizations:
  • Increase employee motivation
  • Gain greater organizational commitment
  • Experience greater worker productivity
  • Observe higher levels of job satisfaction

Types of Employee Involvement Programs

  • Participative Management
  • Subordinates share a significant degree of decision-making power with their immediate superiors
  • Representative Participation
  • Works councils

Groups of nominated or elected employees who must be consulted for any personnel decisions

  • Board representative

An employee sits on a company’s board of directors and represents the interests of the firm’s employees

  • Quality Circle
  • A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions

Motivational Theory Links to EI Programs

Four Major Strategic Reward Decisions

What to pay? (pay structure)

How to pay individuals? (variable pay plans and skill-based pay plans)

What benefits to offer? Do we offer choice of benefits? (flexible benefits)

How to build recognition programs?

1. What to Pay – Pay Structure

  • Internal equity
  • The worth of the job to the organization
  • Determined by job evaluations
  • External equity
  • The competitiveness of the company’s pay relative to pay elsewhere in the industry
  • Determined through pay surveys
  • Choose organizational position
  • Pay leaders

Greater employee loyalty

Attracts better-quality employees

  • Pay laggards – accept high turnover for low hourly costs

2. How to Pay - Variable Pay Programs

  • Types of Variable Pay Programs

A portion of an employee’s pay is based on some individual and/or organizational measure of performance

  • Piece Rate:

Workers are paid a fixed sum for each unit of production completed

Weakness: not feasible for many jobs

  • Merit-Based:

Based on performance appraisal ratings

Gap increasing between average and top-performers

Weaknesses: validity of system based on annual appraisals, pay pool can be small, unions strongly resist

  • Bonuses:

Rewards recent performance

Weakness: employees consider this a pay

2. How to Pay - Skill-Based Pay Programs

  • Types of Skill-Based Programs:

Also known as competency- or knowledge-based pay - sets pay based on skills or number of jobs an employee can perform

  • Profit Sharing:

Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability

  • Gain Sharing:

An incentive plan in which improvements in group productivity determine the total amount of money that is allocated

  • Employee Stock Ownership Plans (ESOPs)

Company-established benefit plans in which employees acquire stock as part of their benefits

Evaluation of Variable and Skill-based Pay

To some extent, variable pay does increase motivation and productivity

  • Benefits of Skill-based Pay Plans
  • Provide staffing flexibility
  • Facilitate communication across the organization
  • Lessen “protection of territory” behaviors
  • Meet the needs of employees for advancement
  • Lead to performance improvements
  • Drawbacks:
  • Lack of additional learning opportunities
  • Continuing to pay employees for obsolete skills
  • Paying for skills of no immediate use to the organization
  • Paying for a skill, not for performance of the skill

3. What Benefits to Offer - Flexible Benefits

Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options.

  • Modular Plans
  • Predesigned benefits packages for specific groups of employees
  • Core-Plus Plans
  • A core of essential benefits and a menu-like selection of other benefit options
  • Flexible Spending Plans
  • Allow employees to use their tax-free benefit dollars to purchase benefits and pay service premiums

4. How to Build Recognition Programs

  • Intrinsic Rewards: Stimulate Intrinsic Motivation
  • Personal attention given to employee
  • Approval and appreciation for a job well done
  • Growing in popularity and usage
  • Benefits of Programs
  • Fulfill employees’ desire for recognition
  • Inexpensive to implement
  • Encourage repetition of desired behaviors
  • Drawbacks of Programs
  • Susceptible to manipulation by management

See E X H I B I T 7-4

Global Implications

  • Job Characteristics and Job Enrichment
  • Inconsistent results across cultures
  • Telecommuting
  • U.S. does this more, but EU workers are interested in it
  • Variable Pay
  • Not much research available, but some possible hypotheses on relationships
  • Flexible Benefits
  • This concept is becoming more prevalent globally
  • Employee Benefits
  • Practices must be modified to match culture

Summary and Managerial Implications

  • To Motivate Employees
  • Recognize individual differences
  • Use goals and feedback
  • Allow employees to participate in decisions that affect them
  • Link rewards to performance
  • Check the reward system for equity

Attitudes and Job Satisfaction

Chapter Learning Objectives

  • After studying this chapter, you should be able to:
  • Contrast the three components of an attitude.
  • Summarize the relationship between attitudes and behavior.
  • Compare and contrast the major job attitudes.
  • Define job satisfaction and show how it can be measured.
  • Summarize the main causes of job satisfaction.
  • Identify four employee responses to dissatisfaction.
  • Show whether job satisfaction is a relevant concept in countries other than the United States.

Attitudes

Evaluative statements or judgments concerning objects, people, or events.

Three components of an attitude:

The emotional or feeling segment of an attitude

The opinion or belief segment of an attitude

An intention to behave in a certain way toward someone or something

See E X H I B I T 3–1

Does Behavior Always Follow from Attitudes?

Leon Festinger – No, the reverse is sometimes true!

Cognitive Dissonance: Any incompatibility between two or more attitudes or between behavior and attitudes

Individuals seek to reduce this uncomfortable gap, or dissonance, to reach stability and consistency

Consistency is achieved by changing the attitudes, modifying the behaviors, or through rationalization

Desire to reduce dissonance depends on:

Importance of elements

Degree of individual influence

Rewards involved in dissonance

Moderating Variables

  • The most powerful moderators of the attitude-behavior relationship are:
  • Importance of the attitude
  • Correspondence to behavior
  • Accessibility
  • Existence of social pressures
  • Personal and direct experience of the attitude.

Predicting Behavior from Attitudes

  • Important attitudes have a strong relationship to behavior.
  • The closer the match between attitude and behavior, the stronger the relationship:

Specific attitudes predict specific behavior

General attitudes predict general behavior

  • The more frequently expressed an attitude, the better predictor it is.
  • High social pressures reduce the relationship and may cause dissonance.
  • Attitudes based on personal experience are stronger predictors.

What are the Major Job Attitudes?

  • Job Satisfaction
  • A positive feeling about the job resulting from an evaluation of its characteristics
  • Job Involvement
  • Degree of psychological identification with the job where perceived performance is important to self-worth
  • Psychological Empowerment
  • Belief in the degree of influence over the job, competence, job meaningfulness, and autonomy

Another Major Job Attitude

  • Organizational Commitment
  • Identifying with a particular organization and its goals, while wishing to maintain membership in the organization.
  • Three dimensions:

Affective – emotional attachment to organization

Continuance Commitment – economic value of staying

Normative - moral or ethical obligations

  • Has some relation to performance, especially for new employees.
  • Less important now than in past – now perhaps more of occupational commitment, loyalty to profession rather than a given employer.

And Yet More Major Job Attitudes…

  • Perceived Organizational Support (POS)
  • Degree to which employees believe the organization values their contribution and cares about their well-being.
  • Higher when rewards are fair, employees are involved in decision-making, and supervisors are seen as supportive.
  • High POS is related to higher OCBs and performance.
  • Employee Engagement
  • The degree of involvement with, satisfaction with, and enthusiasm for the job.
  • Engaged employees are passionate about their work and company.

Are These Job Attitudes Really Distinct?

  • No: these attitudes are highly related.
  • Variables may be redundant (measuring the same thing under a different name)
  • While there is some distinction, there is also a lot of overlap.

Be patient, OB researchers are working on it!

Job Satisfaction

  • One of the primary job attitudes measured.
  • Broad term involving a complex individual summation of a number of discrete job elements.
  • How to measure?
  • Single global rating (one question/one answer) - Best
  • Summation score (many questions/one average) - OK
  • Are people satisfied in their jobs?
  • In the U. S., yes, but the level appears to be dropping.
  • Results depend on how job satisfaction is measured.
  • Pay and promotion are the most problematic elements.

See E X H I B I T 3–2

  • Pay influences job satisfaction only to a point.
  • After about $40,000 a year (in the U. S.), there is no relationship between amount of pay and job satisfaction.
  • Money may bring happiness, but not necessarily job satisfaction.

  • Personality can influence job satisfaction.
  • Negative people are usually not satisfied with their jobs.
  • Those with positive core self-evaluation are more satisfied with their jobs.

Causes of Job Satisfaction

See E X H I B I T 3–3

Employee Responses to Dissatisfaction

See E X H I B I T 3–4

Active

Passive

Constructive

Destructive

Outcomes of Job Satisfaction

  • Job Performance
  • Satisfied workers are more productive AND more productive workers are more satisfied!
  • The causality may run both ways.
  • Organizational Citizenship Behaviors
  • Satisfaction influences OCB through perceptions of fairness.
  • Customer Satisfaction
  • Satisfied frontline employees increase customer satisfaction and loyalty.
  • Absenteeism
  • Satisfied employees are moderately less likely to miss work.

More Outcomes of Job Satisfaction

  • Turnover
  • Satisfied employees are less likely to quit.
  • Many moderating variables in this relationship.

Economic environment and tenure

Organizational actions taken to retain high performers and to weed out lower performers

  • Workplace Deviance
  • Dissatisfied workers are more likely to unionize, abuse substances, steal, be tardy, and withdraw.

Despite the overwhelming evidence of the impact of job satisfaction on the bottom line, most managers are either unconcerned about or overestimate worker satisfaction.

Global Implications

  • Is Job Satisfaction a U. S. Concept?
  • No, but most of the research so far has been in the U. S.

  • Are Employees in Western Cultures More Satisfied With Their Jobs?
  • Western workers appear to be more satisfied than those in Eastern cultures.
  • Perhaps because Westerners emphasize positive emotions and individual happiness more than do those in Eastern cultures.

See E X H I B I T 3–5

Summary and Managerial Implications

  • Managers should watch employee attitudes:
  • They give warnings of potential problems
  • They influence behavior
  • Managers should try to increase job satisfaction and generate positive job attitudes
  • Reduces costs by lowering turnover, absenteeism, tardiness, theft, and increasing OCB
  • Focus on the intrinsic parts of the job: make work challenging and interesting
  • Pay is not enough

Understanding Work Teams

Chapter Learning Objectives

  • After studying this chapter, you should be able to:
  • Analyze the growing popularity of teams in organizations.
  • Contrast groups and teams.
  • Compare and contrast four types of teams.
  • Identify the characteristics of effective teams.
  • Show how organizations can create team players.
  • Decide when to use individuals isntead of teams.
  • Show how our understanding of teams differs in a global context.

Why Have Teams Become So Popular?

  • Great way to use employee talents
  • Teams are more flexible and responsive to changes in the environment
  • Can quickly assemble, deploy, refocus, and disband
  • Facilitate employee involvement
  • Increase employee participation in decision making
  • Democratize an organization and increase motivation
  • Note: teams are not ALWAYS effective

Differences between Groups and Teams

  • Work Group
  • A group that interacts primarily to share information and to make decisions to help each group member perform within his or her area of responsibility
  • No joint effort required
  • Work Team
  • Generates positive synergy through coordinated effort. The individual efforts result in a performance that is greater than the sum of the individual inputs

Comparing Work Groups and Work Teams

E X H I B I T 10-1

2.bin

Types of Teams

  • Problem-Solving Teams
  • Groups of 5 to 12 employees from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment
  • Self-Managed Work Teams
  • Groups of 10 to 15 people who take on the responsibilities of their former supervisors

See E X H I B I T 10-2

3.bin

4.bin

More Types of Teams

  • Cross-Functional Teams
  • Employees from about the same hierarchical level, but from different work areas, who come together to accomplish a task

  • Very common
  • Task forces
  • Committees

5.bin

A Final Type of Team

  • Virtual Teams
  • Teams that use computer technology to tie together physically dispersed members in order to achieve a common goal
  • Characteristics
  • Limited socializing
  • The ability to overcome time and space constraints
  • To be effective, needs:
  • Trust among members
  • Close monitoring
  • To be publicized

A Team-Effectiveness Model

E X H I B I T 10-3

Caveat 1: This is a general guide only.

Caveat 2: The model assumes that teamwork is preferable to individual work.

6.bin

7.bin

Key Components of Effective Teams

  • Context
  • Composition
  • Work Design
  • Process Variables

Creating Effective Teams: Context

  • Adequate Resources
  • Need the tools to complete the job
  • Effective Leadership and Structure
  • Agreeing to the specifics of work and how the team fits together to integrate individual skills
  • Even “self-managed” teams need leaders
  • Leadership especially important in multi-team systems
  • Climate of Trust
  • Members must trust each other and the leader
  • Performance and Rewards Systems that Reflect Team Contributions
  • Cannot just be based on individual effort

Creating Effective Teams: Composition

  • Abilities of Members
  • Need technical expertise, problem-solving, decision-making, and good interpersonal skills
  • Personality of Members
  • Conscientiousness, openness to experience, and agreeableness all relate to team performance
  • Allocating Roles and Diversity
  • Many necessary roles must be filled
  • Diversity can often lead to lower performance
  • Size of Team
  • The smaller the better: 5 to 9 is optimal
  • Member’s Preference for Teamwork
  • Do the members want to be on teams?

Key Roles On Teams

E X H I B I T 10-4

8.bin

Creating Effective Teams: Work Design

  • Freedom and Autonomy
  • Ability to work independently
  • Skill Variety
  • Ability to use different skills and talents
  • Task Identity
  • Ability to complete a whole and identifiable task or product
  • Task Significance
  • Working on a task or project that has a substantial impact on others

Creating Effective Teams: Process

  • Commitment to a Common Purpose
  • Create a common purpose that provides direction
  • Have reflexivity: willing to adjust plan if necessary
  • Establishment of Specific Team Goals
  • Must be specific, measurable, realistic, and challenging
  • Team Efficacy
  • Team believes in its ability to succeed
  • Mental Models
  • Have an accurate and common mental map of how the work gets done
  • A Managed Level of Conflict
  • Task conflicts are helpful; interpersonal conflicts are not
  • Minimized Social Loafing
  • Team holds itself accountable both individually and as a team

E X H I B I T 10-5

Turning Individuals into Team Players

  • Selection
  • Make team skills one of the interpersonal skills in the hiring process.
  • Training
  • Individualistic people can learn
  • Rewards
  • Rework the reward system to encourage cooperative efforts rather than competitive (individual) ones
  • Continue to recognize individual contributions while still emphasizing the importance of teamwork

Beware! Teams Aren’t Always the Answer

Teams take more time and resources than does individual work.

  • Three tests to see if a team fits the situation:

Is the work complex and is there a need for different perspectives: will it be better with the insights of more than one person?

Does the work create a common purpose or set of goals for the group that is larger than the aggregate of the goals for individuals?

Are members of the group involved in interdependent tasks?

Global Implications

  • Extent of Teamwork
  • Other countries use teams more often than does the U.S.

  • Self-Managed Teams
  • Do not work well in countries with low tolerance for ambiguity and uncertainty and a high power distance

  • Team Cultural Diversity and Team Performance
  • Diversity caused by national differences interferes with team efficiency, at least in the short run
  • After about three months the differences between diverse and non-diverse team performance disappear

Summary and Managerial Implications

  • Effective teams have common characteristics:
  • Adequate resources
  • Effective leadership
  • A climate of trust
  • Appropriate reward and evaluation systems
  • Composed of members with correct skills and roles
  • Are smaller
  • Do work that provides freedom, autonomy, and the chance to contribute
  • The tasks are whole and significant
  • Has members who believe in the team’s capabilities
  • Managers should modify the environment and select team-oriented individuals to increase the chance of developing effective teams.

Chapter 8

Creativity

*

WELCOME

TO THE WORLD OF

CREATIVE SKILLS - ADSM

A REASONABLE PERSON ADAPTS HIMSELF/HERSELF TO THE WORLD; (IN-BOX)

AN UNREASONABLE PERSON ADAPTS THE WORLD TO HIMSELF/HERSELF. (OUT-0F-THE-BOX)

SO ALL THE PROGRESS DEPENDS ON THE UNREASONABLE PERSON

This MBA programme aims at making you unreasonable

PERFORMANCE VERSES SYSTEMS

SYSTEMS

100 %

0 %

High

PERFORMANCE

Low

Reasonable

(Analytical)

Unreasonable

(Creative)

I Positive Traits

III Lateral Thinking

IIII Problem Solving

II Mental Blocks

CREATIVE SKILLS

  • Situations with no ready-made solutions

PROBLEMS

  • Situations that call for extra efforts
  • Sudden deviations / Unexpected happenings
  • Things that are blocking our way
  • Situations where we don’t have control
  • Situations where there are risks involved
  • Confusing situations
  • Things not going as per your wish
  • Lack of resources

P R O B L E M

Symptoms: BOTHERATION / UNEASINESS /

WORRY / ANGER / FEAR /

SADNESS / TENSION / IRRITATION

A PROBLEM IS THE

DIFFERENCE BETWEEN

WHAT I HAVE AND

WHAT I WANT

B R A I N S

RIGHT

Imagination

Music

Rhythm

Color

Humor

Daydreaming

LEFT

Logic

Analysis

Language

Number

Reasoning

Reading

Writing

CLOSE-ENDED – Definite number of

RIGHT answers

NATURE OF PROBLEMS

  • How much you have to pay income tax?
  • Which is the capital of India?
  • How much does the shirt cost?
  • How did it happen?

OPEN-ENDED – As many answers

- No RIGHT or WRONG

- More or less appropriate

  • What are the different ways by which we can reduce income-tax?

2 How can terrorism be eliminated?

3 How to bring down the electricity bill?

4 How can we increase customer satisfaction?

5 How to make India an honest country?

Which is more in number –

Open-ended or Close-ended ?

Among the problems,

how many of them are

of your own creation ?

ARE YOU LAZY?

LEFT ORIENTED RIGHT ORIENTED

Love structure, systems, Get a kick in breaking rules

orderliness, rules etc.

Like stability Love changes

Focus on “what” (words) Focus on “how” (body language,

tone etc.)

Left Thumb up Right thumb up

Right-eyed Left-eyed

Source is important Content (Not insisting on

evidence)

Want data / proof Go by gut feelings

LEFT ORIENTED RIGHT ORIENTED

Good memory Absentminded

Choose to be a physician Explorer

Make good team members Soloists

Yes, but Yes, and

Prefer algebra Prefer geometry

Love competition Thrive on freedom

Digital Analogue

(Right / Wrong)

WHAT IS CREATIVITY?

* CONCEIVING OF NEW IDEAS

* A TOOL FOR SURVIVOL

* LOOKING WHERE ALL HAVE LOOKED

AND SEEING WHAT NO ONE HAS SEEN

* CONSCIOUS ESCAPE FROM ROUTINE

* SHAKING HANDS WITH TOMORROW

* RELATING OF UNRELATED THINGS

* DOING WHAT OTHERS HAVE NOT DONE

* LISTENING FOR SMELLS

WHAT IS CREATIVITY?

* EXPECTING THE UNEXPECTED

* MAKING YOUR OWN PRODUCT OBSOLETE

WHAT IS CREATIVITY?

* DYNAMIC TENSION BETWEEN OPPOSING

FORCES

* NOT ACCEPTING THE EXISTING AS BEST

* CHALLENGING ACCEPTED THINGS

* BRINGING OUT PRODUCTS THAT

CONSUMERS DIDN’T KNOW THEY NEEDED

A Necessary Condition to the Development of Critical and Creative Thinking is:

A Questioning Mind

Understanding the Mind of Isaac Newton

  • At the age of 19 Newton drew up a list of questions under 45 headings.
  • His title, Questions, signaled his goal: to constantly question the nature of matter, place, time, and motion.
  • He worked hard to understand the thinking of others working on his list of problems.
  • For example, he bought Descartes's Geometry and read it by himself.
  • After two or three pages, when he could understand no further, “he began again and advanced farther and continued doing so till he made himself master of the whole.”

Understanding the Mind of Albert Einstein

Einstein failed his entrance exam to Zurich Polytechnic. When he finally passed (by attending a cram school) he did not want to think about scientific problems for a year. His final exam was so non-distinguished that afterward he was refused a post as an assistant.

Thus critical thinking has a creative component: to produce a better product of thought

And creative thinking has a critical component: to reshape thinking in keeping with criteria of excellence.

Critical thinking without a creative output is merely negative thinking.

  • Creative thinking without a critical component is merely novel thinking.

  • It is easy to be merely negative or novel in one’s thought.

Every genuine act of figuring out anything is a new making, a new series of creative acts, however mundane.

To come to understand anything requires that the mind construct new connections in the mind.

No one can be given knowledge or understanding; they must all create or construct it for themselves.

Didactic teaching does not work because it violates the essential conditions under which the mind learns by acts of construction in the mind.

Didactic teaching refers to engaging students in the subject being taught. This can be done through various methods like diagrams, photos and pictures of what's being taught.

At even the most fundamental level of learning, at the earliest age of learning, the learner must actively construct (create) to learn.

We must abandon the notion that knowledge can be “transmitted” without active creative construction on the part of the learner.

At even the most fundamental level of learning, at the earliest age of learning, the learner must actively assess its construction to take genuine ownership.

  • Am I being clear?
  • Am I being accurate?
  • These are minimal criteria for the construction of knowledge.

The essential need for criticality and creativity applies to the work of the most humble student as well as that of the greatest genius

If we study the development of the greatest minds Aristotle, Beethoven, Curie, Da Vinci, Galileo, Michelangelo, Newton, Einstein we will discover that each went through a period of growth in which they internalized high standards of criticality that played a significant role in the manner in which they went about their later creative production.

Creativity in Entrepreneurship

What is creativity?

  • Creative behaviors possessing an element of newness, novelty, and difference.

  • Creativity is an act, an idea, or product that changes an existing domain, or that transforms an existing domain into a new one, and creative person is whose thoughts or actions bring these changes.

What is creativity?

  • Wallas’ description of creative thinking, suggests a model in four stages:
  • Preparation: problem definition
  • Incubation: resting phase, subconscious mind
  • Illumination: idea of a solution comes to mind
  • Verification: solutions are tested

Creativity and Innovation

  • Creativity leads to innovation

  • “Innovation is the specific instrument of entrepreneurship. The act endows resources with a new capacity to create wealth. Innovation, indeed, creates a resource.” (Drucker)

  • Entrepreneurship is all about innovation

  • Innovation is economic or social, rather than a technical term

Entrepreneurship

  • “Entrepreneurship is a way of thinking, reasoning and acting that is opportunity obsessed, holistic in approach and leadership balanced.”

  • Entrepreneurial qualities
  • commitment and determination, leadership, opportunity obsession, tolerance of risk, ambiguity and uncertainty, creativity, self-reliance and ability to adapt, and the motivation to excel, ability to use failure experience as a way of learning

Entrepreneurship and Creativity

  • Creative in figuring out a way to work in a joint venture

  • Creativity comes in writing an amazing sales letter or visualizing the perfect logo

  • For practicing innovation, they need to be aware of change, and creatively use it to their advantage
  • The Unexpected, Incongruities, Process Need, Industry and Market Structures, Demographics, Changes in Perception, New Knowledge (Drucker)

Entrepreneurship and Creativity

  • Tolerance for ambiguity is related to certain entrepreneurial styles

  • “Creative destruction”
  • procedures and destroys or reallocates amassed resources

  • Creative in identifying the gap in the market and think up a product

Nurturing Creativity

  • Several techniques to encourage creative thinking:
  • Ask Questions, Lateral Thinking, Six Thinking Hats, Brainstorming etc

  • Technology and business incubators
  • “complete innovation system”
  • Provide financial, marketing and design support
  • Generation of new creative ideas and business plans
  • joint and cross-disciplinary learning

Negotiating

Creative Negotiating, Stephen Kozicki, Adams Press, 1998

“Negotiating is the art of

reaching an agreement by

resolving differences

through creativity”

Negotiating Process

Style

Outcome

Principles

Style

  • Style is a continuum between two styles:
  • Quick
  • Deliberate
  • Middle is compromise

Quick Style

  • Negotiate in a hurry
  • Use when you won’t negotiate with these people again
  • Get the best deal without regard to the other side’s “win”

Deliberate Style

  • Use when long term relationship likely
  • Involves cooperation and relationship building to reach agreement
  • Needs much prep, hard work
  • May move in fits and starts

Outcomes

  • Realistic
  • Both sides satisfied, win/win situation
  • Usually results from deliberate style
  • Acceptable
  • Likely to result from quick style
  • Something is better than nothing
  • Always ask for a better deal
  • Worst
  • When you’re too stubborn to be flexible
  • Usually from quick style

Outcomes

  • Predetermine the outcomes before you start negotiations, you have a better chance of getting a better result

  • “Think carefully, think creatively, and think ahead”

Principles

  • There are no rules
  • Establish an agenda
  • Everything is negotiable
  • Ask for a better deal
  • Be creative
  • Learn to say “NO” yourself

Are you a Motivated Negotiator?

  • Enthusiasm
  • Confidence
  • Engaged
  • Recognition
  • Accomplishment
  • Pat on the back
  • Integrity
  • No trickery
  • Trustworthiness
  • Social Skills
  • Enjoy people
  • Interest in others
  • Teamwork
  • Better as a team
  • Self-control
  • Creativity
  • Always looking for ways to complete the deal

Negotiation Model

  • Investigate
  • Presentation
  • Bargaining
  • Agreement

Investigate

  • What do you want?
  • What does the other side need?
  • Decide on style
  • What are the consequences of each choice.

Presentation

  • Prepare other side’s case
  • Present the reasons for your side better
  • Planning sheet
  • Issues involved
  • Realistic, possible, worst

“The” Presentation

  • Creative title
  • Reduce to “must know” items
  • Keywords
  • Mini-speeches around keywords
  • Visuals
  • Don’t give concessions just to keep things going
  • Make note of concerns and keep going

Bargaining

  • When in doubt, ask questions!
  • Open questions
  • Reflective questions
  • Tactics

Tactics

  • Use
  • Walk out
  • Don’t use
  • Emotional outburst
  • Argue special case
  • Pretend ignorance
  • Play for time
  • Nibble and retreat
  • “You go first”
  • Bad environment
  • Defer to higher authority
  • Not willing to make any changes
  • Silence
  • Good guy/bad buy

Agreement

  • Arrangements should be neutral and comfortable
  • Pay attention to what others say
  • Screen out all visual distractions
  • Ask open ended questions
  • Listen to responses
  • Proactive vs. reactive behavior

A Good Negotiator Is..

  • Creative
  • Versatile
  • Motivated
  • Has the ability to walk away