CHAPTER 1 - INTRODUCTION TO THE FIELD OF ORGANIZATIONAL BEHAVIOR

I. THE FIELD OF ORGANIZATIONAL BEHAVIOR

1. Organizational behavior defined.
   1. Study of what people think, feel, and do in and around organizations.
   2. Includes systematically studying individual, team, and structural characteristics that influence behavior within organizations.
   3. Emerged as a distinct field in the 1940’s.
   4. Origins can be traced back to ancient Greek with Plato.
2. Organizations defined
   1. Groups of people who work interdependently toward some purpose.
   2. Not buildings or physical structures, but rather people who interact with each other to achieve a set of goals.
   3. Origins date back to 3500 BC through archaeological findings of massive temples built in an organized manner.
   4. Examples of organizations include the Sydney Olympics, Hong Kong’s new airport at Chek Lap Kok, Internet coordinators, etc.
   5. Purpose for being is embodied in the organization’s mission statement.
3. Purpose for studying organizational behavior
   1. To understand, predict, and influence the behaviors of others.
   2. To influence organizational events.
      1. Should be embodied by all people within the organization.
      2. Less focus on management, but rather understanding and influencing behavior.

II. EMERGING TRENDS IN ORGANIZATIONAL BEHAVIOR

1. Globalization
   1. Definition
      1. Occurs when an organization extends its activities to other parts of the world, actively participates in other markets, and competes against organizations located in other countries.
   2. Implications for organizational behavior
      1. Requires new structures and different forms of communication to assist the organization’s global reach.
      2. Creates new career opportunities and potentially brings in new knowledge to improve the organization’s competitive advantage.
      3. Emphasizes the need to recognize the contingencies of effective OB practices in different cultures.
2. The Changing Work Force
   1. Trends
      1. Increase of minorities in the workforce.
      2. Increase of a multicultural workforce due to an increasing demographic diversity.
      3. Greater difficulty in discussing ethic differences as inter-racial marriages increase.
      4. Increasing representation of women in the workforce.
      5. More job security expected by baby boomers—people born between 1946 and 1964.
      6. Less loyalty to one organization expressed by Gen-Xers—people born between 1964 and 1977.
      7. Impact of how Generation-Y employees –those born in the decade or so since 1979—affect the workplace.
   2. How diversity impacts organizational behavior
      1. Can lead to a competitive advantage by improving decision-making and team performance on complex tasks.
      2. Can present new challenges for companies to overcome.
3. Emerging Employment Relationships
   1. Employability: employees perform a variety of work activities rather than hold specific jobs, and they are expected to continuously learn skills that will keep them employed.
   2. Contingent work: any job in which the individual does not have an explicit or implicit contract for long-term employment, or one in which the minimum hours of work can vary in a nonsystematic way.
   3. Telecommuting: working from home usually with a computer connection to the office.
   4. Virtual teams: cross-functional groups that operate across space, time, and organizational boundaries with members who communicate mainly through electronic technologies.
4. Information Technology
   1. Lead to rise in telecommuting and virtual teams.
   2. Creates opportunities to connect people around the plant.
   3. Allows small businesses in developing countries to compete in the global marketplace.
   4. Leads to the creation of a network organization –an alliance of several organizations for the purpose of creating a product or serving a client.
5. Workplace Values and Ethics
   1. Definitions
      1. Values – stable, long-lasting beliefs about what is important in a variety of situations.
      2. Cultural values – represent the dominant prescriptions of a society.
      3. Personal values – incorporate cultural values, as well as other values socialized by parents, friends, and personal life events.
      4. Organizational values – those which are widely and deeply shared by people within the organization.
      5. Ethics – the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad.
   2. Importance of values and ethics
      1. Rise of globalization leads to a multitude of different values and ethics in the workplace.
      2. Old “command-and-control” system of direct supervision is not congruent with today’s more independently-minded workforce.
      3. Increased societal pressure on organizations to engage in ethical practices.

III. FIVE ANCHORS OF ORGANIZATIONAL BEHAVIOR

1. The Multidisciplinary Anchor
   1. Premise: OB should develop from knowledge in other disciples, not just from its own isolated research.
   2. Emerging fields from which OB knowledge is acquired:
      1. Communications – e.g., knowledge management, electronic mail, corporate culture, and employee socialization.
      2. Information systems
      3. Marketing
2. The Systematic Research Anchor
   1. Premise: OB researchers believe in the systematic collection of data and information about organizations.
      1. Utilizes the scientific method by forming research questions, systematically collecting data, and testing hypotheses.
3. The Contingency Anchor
   1. Premise: Any particular action may have different consequences in different situations.
   2. No single solution is best in all situations.
4. The Multiple Levels of Anchor Analysis
   1. Organization behavior topics are grouped into three levels of analysis:
      1. Individual: includes the characteristics and behaviors of employees as well as the thought process attributed to them. Includes motivation, perceptions, personalities, attitudes, and values.
      2. Team – looks at the way people interact. Includes team dynamics, decisions, power, organizational politics, conflict, and leadership.
      3. Organization – focuses on how people structure their working relationships and on whom organizations interact with their environments.
5. The Open Systems Anchor
   1. Premise: Organizations are open systems because they take their sustenance from the environment, and, in turn, affect that environment through their output.
   2. External Environment and stakeholders
      1. External environment – the natural and social conditions outside the organization.
      2. Stakeholders – shareholders, customers, suppliers, governments, and any other group with a vested interest in the organization.
   3. Systems as interdependent parts
      1. Organizational systems: consist of many internal subsystems that need to be continuously aligned with each other.

IV. KNOWLEDGE MANAGEMENT

1. Definitions
   1. Knowledge Management: any structured activity that improves an organization’s capacity to acquire, share, and utilize knowledge in ways that improve its survival and success.
   2. Intellectual capital: knowledge that resides in an organization. Includes:
      1. Human capital – knowledge that employees posses and generate including their skills, experience, and creativity.
      2. Structural capital – knowledge that is captured and retained in an organization’s systems and structures.
      3. Relationship capital – value derived from an organization’s relationships with customers, suppliers, and other external stakeholders who provide added value for the organization.
2. Knowledge Management Process
   1. Knowledge acquisition: includes the organization’s ability to extract information and ideas from its environment as well as through insight.
      1. Grafting – hiring individuals or acquiring entire companies. One of the fasted ways to acquire knowledge.
   2. Knowledge sharing
      1. Communities of practice – informal groups bound together by shared expertise and passion for a particular activity or interest.
   3. Knowledge use
3. Organizational Memory
4. Definition
   1. Refers to the storage and preservation of intellectual capital.
   2. Includes information that employees possess as well as knowledge embedded in the organization’s systems and structures.
   3. Includes documents, objects, and anything else that provides meaningful information about how the organization should operate.

CHAPTER 2 - INDIVIDUAL BEHAVIOR AND LEARNING IN ORGANIZATIONS

I. MARS MODLE OF INDIVIDUAL PERFORMANCE

The MARS model represents four factors that directly influence an employee’s voluntary behavior and resulting performance – motivation, ability, role perceptions, and situational factors.

1. Employee Motivation
   1. Motivation: represents the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior.
      1. Direction: refers to the fact that the motivation is goal-oriented, not random.
      2. Intensity: is the amount of effort allocated to a goal.
      3. Persistence: refers to continuing the effort for a certain amount of time.
2. Ability
   1. Includes both the natural aptitudes and learned capabilities required to successfully complete a task.
      1. Aptitudes: natural talents that help employees learn specific tasks more quickly and perform them better.
      2. Learned capabilities: the skills and knowledge that you have actually acquired.
3. Employee competencies
   1. Refer to the characteristics of people that lead to superior performance.
   2. Include not only the natural and learned abilities, but also the person’s values and personality traits.
4. Person-job matching
   1. Three basic strategies to match individual competencies with job requirements:
      1. Select applicants whose existing competencies best fit the required tasks.
      2. Provide training so employees develop required skills and knowledge.
      3. Redesign the job so employees are given tasks within their capabilities.
5. Role perceptions
   1. Enable employees to understand specific tasks assigned to them, the relative importance of those tasks, and the preferred behaviors to accomplish those tasks.
   2. Clarify the preferred direction of effort.
6. Situational Factors
   1. Affected by the situation in which the employee works.
   2. Include factors such as time, people, budget, and physical work facilities as well as external factors such as the state of the economy or demographics of the area.

II. TYPES OF WORK-RELATED BEHAVIOR

1. Joining the organization
   1. Organizations hire people to:
      1. achieve goals and objectives.
      2. avoid labor shortages.
      3. build a visionary team.
2. Remaining with the organization
   1. Intellectual capital provides a vast realm of important resources.
      1. Long-service employees have valuable information about work processes, corporate values, and customer needs.
      2. Some firms assess intellectual capital as 95% of its assets.
   2. Organizations experience difficulty in retaining employees.
      1. U.S Bureau of Labor Statistics reports that the typical American employee holds 9 different jobs by the time they are 32 years old.
      2. Retaining talented employees has been recognized as a top issue in companies.
      3. Main cause of employee turnover is job satisfaction – a person’s evaluation of his or her job and work content.
3. Maintaining Work Attendance
   1. Companies have various ways to reduce absenteeism:
      1. Free flu shots and health screenings.
      2. Telecommuting – working from home.
      3. Motivational rewards for good attendance.
4. Performing Required Tasks
   1. Task Performance – refers to goal-directed activities that are under the individual’s control.
   2. Performance standards – minimum acceptable levels of behaviors within the organization.
5. Exhibiting Organizational Citizenship
   1. Organizational Citizenship – refers to behaviors that extend beyond the employee’s normal job duties.
      1. Avoiding unnecessary conflicts
      2. Helping others without selfish intent
      3. Gracefully tolerating occasional impositions
      4. Being involved with organizational activities
      5. Performing tasks that are beyond normal role requirements.
   2. Two conditions essential for organizational citizenship:
      1. Perceived fairness of the company’s treatment of employees.
      2. Degree to which employees hold strong ethical values, particularly with a sense of social responsibility – a person’s or organization’s moral obligation toward others who are affected by his or her actions.
   3. Organizational citizenship is improved through employee involvement – getting employees involved in the decisions that affect them.

III. LEARNING IN ORGANIZATIONS

1. Definition of learning
   1. Learning is a relatively permanent change in behavior (or behavior tendency) that occurs as the result of a person’s interaction with the environment.
   2. It occurs through the use of a person’s senses, study, observation, and experience.
2. Learning Explicit and Tacit Knowledge
   1. Explicit knowledge is organized and can be communicated from one person to another.
      1. An example is information you receive in a class lecture.
      2. Can be written down and given to others.
   2. Tacit knowledge is not documented; it is action oriented and known below the level of consciousness. Examples include:
      1. Organization’s culture.
      2. Team’s implicit norms.
      3. Skills acquired through observation and direct experience.
   3. Four perspectives of learning:
      1. Reinforcement
      2. Feedback
      3. Social learning (observation)
      4. Direct experience

IV. BEHAVIOR MODIFICATION: LEARNING THROUGH REINFORCEMENT

1. Definitions
   1. Behavior modification (a.k.a., operant conditioning, or reinforcement theory) implies that learning is completely dependent upon the environment.
   2. Behavior modification emphasizes voluntary behaviors, called operant behaviors, because they “operate” on the environment.
   3. Respondent behaviors are involuntary responses to the environment.
2. A-B-C’s of Behavior Modification
   1. Behavior is influenced by two environmental contingencies:
      1. The antecedents that precede behavior.
      2. The consequences that follow behavior.
   2. Central object of behavior modification is to change behavior (B) by managing antecedents (A) and consequences (C).
   3. Law of effect: the likelihood that an operant behavior will be repeated depends on its consequences.
3. Contingencies of Reinforcement – types of consequences to a behavior.
   1. Positive reinforcement – occurs when the introduction of a consequence increases or maintains the frequency or probability of a future behavior.
      1. Example: Receiving a bonus for successfully completing a project.
   2. Negative reinforcement –occurs when the removal or avoidance of a consequence increases or maintains the frequency or future probability of a behavior.
      1. A.K.A. avoidance learning because employees engage in the desired behaviors to avoid unpleasant consequences.
      2. Example: Being criticized by your supervisor or being fired from your job.
   3. Punishment – occurs when a consequence decreases the frequency or the probability of a future behavior.
   4. Extinction – occurs when the target behavior decreases because no consequence follows it.
4. Schedules of Reinforcement
   1. Continuous reinforcement – reinforcing every occurrence of the desired behavior.
   2. Fixed interval schedule – occurs when behavior is reinforced over a fixed time (example: paychecks).
   3. Variable interval schedule – involves administering the reinforcer after a varying length of time (example: promotions)
   4. Fixed ratio schedule – reinforces a behavior over a fixed number of times (example: piece rate systems)
   5. Variable ratio schedule – reinforces behavior after a varying number of times (sales incentive plans)
5. Behavior Modification in Practice
   1. International Paper plant in Moss Point, Mississippi provides training programs where supervisors learn about the power of positive reinforcement.
   2. VJS Foods reduces absenteeism by giving employees with perfect attendance each month two chances to win $500.
   3. Auto parts manufacturer, Dana Corp., reinforces work behaviors through a game called safety bingo.
6. Limitations of behavior modification
   1. It is more difficult to apply to conceptual activities than to observable behaviors.
   2. Reward inflation – the reinforcer is quickly forgotten or is eventually considered an entitlement.
   3. Raises ethical issues because some schedules resemble gambling practices.

V. LEARNING THROUGH FEEDBACK

Feedback is any information that people receive about the consequences of their behavior.

Corrective feedback improves ability by frequently providing information to correct performance problems.

1. Feedback Sources
   1. Social sources: supervisors, clients, coworkers, and anyone else who provides information about the employee’s behavior or results.
      1. 360-Degree Feedback: a multi-source feedback received from a full circle of people around the employee, including subordinates, coworkers, project leaders, and customers.
      2. Ways to conduct – anonymous performance appraisals.
   2. Nonsocial feedback sources: computer, job itself.
   3. The preferred feedback source depends on the purpose of information.
      1. To learn about one’s progress toward goal accomplishment, employees prefer nonsocial feedback sources.
      2. When employees want to improve their self-image, they seek out positive feedback from social sources.
2. Giving Feedback Effectively
   1. Specific feedback – should be quantifiable and precise.
   2. Frequent feedback – should coincide with the job structure.
   3. Timely feedback – should be available as soon as possible so that employees see a clear association between their behavior and consequences.
   4. Credible feedback – should be trustworthy and reliable.
   5. Relevant feedback – should relate to the individual’s behavior rather than to conditions beyond the individual’s control.
3. Seeking Feedback
   1. Inquiry – asking other people about performance and behavior.
   2. Monitoring – involves scanning the work environment and the behavior of others for information cues.
   3. Direct inquiry – powerful form of learning in a private setting and when the person providing the feedback communicates the information clearly.
4. Ethics of Employee Monitoring
   1. Critics argue that employee monitoring is an invasion of privacy.
   2. Employers argue that it serves to protect company assets.

VI. SOCIAL LEARNING THEORY: LEARNING BY OBSERVING

Social learning theory states that much learning occurs by observing others.

1. Behavioral Modeling
   1. Premise is that people learn by observing the behaviors of a role model on the critical task, remembering the important elements and them practicing them.
   2. It is a valuable form of learning because tacit knowledge and skills can be acquired.
   3. It enhances self-efficacy, or a person’s belief that he or she has the ability, motivation, and situational contingencies to complete a task successfully.
2. Learning Behavior Consequences
   1. Premise is that people learn the consequences of behavior in ways other than direct experience.
   2. People learn to anticipate the consequences by observing the experiences of other people.
3. Self-Reinforcement
   1. It occurs whenever an employee has control over a reinforcer but doesn’t take the reinforcer until completing a self-set goal.
   2. It has become increasingly important because employees are given more control over their working lives and are less dependent on supervisors to give positive reinforcement and punishment.

VII. LEARNING THROUGH EXPERIENCE

1. Experiential Learning in Practice
   1. Works best where there is a strong learning orientation.
2. Action learning – the fastest growing form of experiential learning whereby employees are involved in real, complex, and stressful problems, usually in teams, with immediate relevance to the company.

CHAPTER 3 - PERCEPTION AND PERSONALITY IN ORGANIZATIONS

I. THE PERCEPTUAL PROCESS

1. Selective Attention
   1. Definition: process of filtering information received by one’s senses.
   2. Influences on selective attention include size, intensity, motion, repetition, and novelty of the target and by the context in which the target is perceived.
   3. Characteristics of the perceiver influence selective attention.
      1. Perceptual defense is a situation in which a person’s emotions screen out large blocks of information that threaten one’s values and beliefs.
      2. One way to minimize selective attention is by engaging in splatter vision – taking everything in as a whole while focusing on nothing.
2. Perceptual Organization and Interpretation
   1. Perceptual grouping involves organizing information into general categories and interpreting it.
   2. Mental models consist of the broad world views or “theories in use” that people rely on to guide their perceptions and behaviors.
      1. They create the screens through which people select information.
      2. They guide perceptions and alert people to deviations from the past.
      3. They help to make sense of one’s environment.
      4. A disadvantage is that they may blind people from seeing the world in different ways.

II. SOCIAL IDENTITY THEORY

1. Definition
   1. Social identify theory explains the process of self-perception and social perception.
   2. The theory proposes that people develop their perceptions through personal identity and social identity.
      1. Personal identity includes the individual’s unique characteristics and experiences, such as physical appearance, personality traits, and special talents.
      2. Social identity refers to a person’s self-perception as memberships in various social groups.
2. Perceiving Others through Social Identity
   1. Social identity theory explains the dynamics of social perception – how we perceive others.
   2. Social identity is a comparative process, meaning that we define ourselves in terms of our differences with people who belong to groups.
      1. People tend to homogenize others within social categories.
      2. Stereotypes developing from the grouping of traits.

III. ERRORS IN THE PERCEPTUAL PROCESS

1. Stereotyping in Organizational Settings
   1. Stereotyping is an extension of social identity.
   2. It is the process of assigning traits to people based upon their membership in a social category.
      1. Scholars say that stereotypes generally have some inaccuracies, some overestimation or underestimation of real differences, and some degree of accuracy.
      2. One problem with stereotyping is that stereotyped traits do not accurately describe every person in that social category.
      3. People also develop inaccurate stereotypes under certain conditions, such as the degree to which they interact with people in that group.
      4. Another problem is that we develop inaccurate stereotypes of groups to enhance our own social identity.
   3. Ethical problems with stereotypes.
      1. The greatest concern is that stereotyping lays the foundation for prejudice – unfounded negative emotions toward people belonging to a particular stereotyped group.
      2. Stereotyping could also be partly responsible for sexual harassment – the unwelcome conduct of a sexual nature that detrimentally affects the work environment or leads to adverse job-related consequences for victims.
   4. Attribution Theory
      1. The attribution process involves deciding whether an observed behavior or event is largely caused by internal or external factors.
      2. Internal attribution involves believing that an employee performs the job poorly because he or she lacks the necessary competencies or motivation.
      3. External attribution occurs if people believe the employee performs the job poorly because he or she lacks sufficient resources to do the task.
      4. There are three attribution rules:
         1. Internal attributions are made when the observed individual behaved this way in the past (high consistency),
         2. Did not behave like this toward other people or in different situations (low distinctiveness),
         3. Other people do not behave this way in similar situations (low consensus).
   5. Attribution errors
      1. Fundamental attribution error refers to the tendency to attribute the behavior of other people more to internal than external factors.
         1. It occurs when there is limited information about the situational factors affecting other people.
      2. Self-serving bias is the tendency to attribute our favorable outcomes to internal factors and our failures.
   6. Self-fulfilling prophesy
      1. It occurs when our expectations about another person cause that person to act in a way that is consistent with those expectations.
      2. There are four steps in the self-fulfilling prophecy process:
         1. Expectations formed.
         2. Behavior toward employees.
         3. Effects on the employee.
         4. Employee behavior and performance.
   7. Primacy Effect
      1. It relates to the saying that “first impressions are lasting impressions.”
      2. It is our tendency to quickly form an opinion of people based on the first information we receive about them.
   8. Recency Effect
      1. It occurs when the most recent information dominates our perception of others.
      2. It is stronger than the primacy effect when there is a long delay between the time when the first impression is formed and the person is evaluated.
      3. It is found in performance appraisals, for which supervisors must recall every employee’s performance over the previous year.
   9. Halo Error
      1. It occurs when our general impression of a person, usually based on one prominent characteristic, colors our perception of other characteristics of that person.
      2. One trait important to the perceiver forms a general impression.
      3. It is most likely to occur when concrete information about the perceived target is missing.
   10. Projection
       1. It occurs when we believe other people have the same beliefs and behaviors that we do.
       2. It is a defense mechanism to protect our self-esteem.

IV. IMPROVING PERCEPTIONS

1. Diversity Initiatives
   1. Companies have been introducing diversity initiatives in order to have a deeply embedded set of values that embrace workforce diversity.
   2. The most common initiative is to actively recruit people with diverse backgrounds.
   3. Another initiative is to provide reasonable accommodations in the workplace. Examples include:
      1. Adjusting work hours, job sharing, allowing non-traditional breaks for religious reasons, and on-site childcare.
      2. Diversity awareness activities that range from celebrations of workplace diversity to focused awareness training.
2. Empathize with Others
   1. Empathy refers to a person’s ability to understand and be sensitive to the feelings, thoughts, and situation of others.
   2. It helps people to become more sensitive to external causes of another person’s performance and behavior, thereby minimizing attribution errors.
   3. It narrows the psychological distance between prejudiced people and the targets of their prejudice.
3. Postpone Impression Formation
   1. By delaying impression formation until more information is collected, we rely less on stereotyped inferences to understand others.
   2. It also enables people to engage in a developmental learning process that forms a better understanding of others.
4. Compare Perceptions with Others
   1. By sharing perceptions, people learn different points of view and potentially gain a better understanding of the situation.
5. Know Yourself: Applying the Johari Window
   1. Johari Window is a popular model for understanding how co-workers can increase their mutual understanding.
      1. Developed by Joseph Luft and Harry Ingram.
      2. Divides information about yourself into four windows –open, blind, hidden, and unknown – based on whether you own values, beliefs and experiences are know to you.
         1. Open area includes information about you that is known to both you and others.
         2. Blind area refers to information that is known to others but not to yourself.
         3. Hidden area is information known to you but unknown to others.
         4. Unknown area includes your values, beliefs, and experiences that aren’t know to you or others.
      3. Main objective is to increase the size of the open area so that both you and colleagues are aware of your perceptual limitations.

V. PERSONALITY IN ORGANIZATIONS

Personality refers to the stable of behavior and consistent internal states that explain a person’s behavioral tendencies.

1. Personality and Organizational Behavior
   1. Scholars often explain employee behavior in terms of personality traits and companies regularly administered personality tests to job applicants.
   2. Recent studies have reported that certain personality traits predict certain work-related behaviors, stress reactions, and emotions fairly well under certain conditions.
2. Big Five Personality Dimensions
   1. Conscientiousness – refers to people who are careful, dependable, and self-disciplined.
   2. Emotional stability – characteristics include are poised, secure, and calm.
   3. Openness to experience -- the extent that people are sensitive, flexible, creative, and curious.
   4. Agreeableness – includes the traits of being courteous, good-natured, empathic, and caring.
   5. Extroversion – characterizes people who are outgoing, talkative, sociable, and assertive.
      1. Introversion – opposite of extroversion – refers to people who are quiet, shy, and cautious.
      2. Introverts feel comfortable being alone, whereas extroverts do not.
3. Jung’s Psychological Types and the Myers-Briggs Type Indicator
   1. Jung’s personality theory that identifies the way people prefer to perceive their environment as well as obtain and process information.
   2. MBTI (Myers-Briggs Type Indicator) – a personality test that measures how people focus their attention (extroversion vs. introversion), collect information (sensing vs. intuition), process and evaluate information (thinking vs. feeling), and orient themselves to the outer world (judging vs. perceiving).
      1. Sensing/Intuition
      2. Thinking/Feeling
      3. Judging/Perceiving
   3. Effectiveness of the MBTI
      1. It does a reasonably good job of measuring Jung’s psychological types.
      2. There is indication of a person’s preferences or skills for particular occupations.
4. Other Personality Traits
   1. Locus of control – refers to a generalized belief about the amount of control people have over their own lives.
      1. Internal locus of control – individuals who feel that they are very much in charge of their own destiny.
      2. External locus of control --those who think that events in their life are due to fate or luck.
   2. Self-monitoring – refers to an individual’s level of sensitivity and ability to adapt to situational cues.
      1. High self-monitors: adjust behavior quite easily and show little stability in other underlying personality traits; conversationalists, better organizational leaders, and better in boundary-spanning positions.
      2. Low self-monitors – more likely to reveal their moods and personal characteristics.

CHAPTER 4 - WORKPLACE VALUES, ETHICS, and EMOTIONS

I. VALUES AT WORK

1. Definitions
   1. Values -- dictate a person’s priorities, preferences, and actions.
   2. Terminal values – desired states of existence that a person tries to achieve.
   3. Instrumental values – desirable modes of behavior that help people reach terminal values.
   4. Personal values – formed from a person’s past experience and interaction with others.
   5. Organizational values – basic pattern of shared assumptions, values, and beliefs considered to be the correct way of thinking about and acting on problems and opportunities facing the organization.
   6. Professional values – values held within an occupational group.
   7. Espoused values – values that people want others to believe they abide by.
   8. Enacted values – represent the values-in-use.
2. The Importance of Values in the Workplace
   1. Globalization raises awareness of and sensitivity to differences in values across cultures.
   2. Values represent a powerful potential way to keep employees’ decisions and actions aligned with corporate goals.
   3. Organizations are under increasing pressure to engage in ethical practices.
3. Aligning Values
   1. Needed to assist employees in making decisions that conflict with organizational goals.
   2. Reduces levels of stress and employee turnover.
   3. Helpful to align values between the organization and society to minimize difficulties in attracting and retaining employees.
4. Cultural Differences in Values
   1. Five cross-cultural values
      1. Individualism versus collectivism – refers to the degree that people value their individual versus group goals.
      2. Power distance – extent to which people accept unequal distribution of power in a society.
      3. Uncertainty avoidance – degree to which people tolerate ambiguity (low uncertainty avoidance) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance).
      4. Achievement versus nurturing orientation
         • Achievement-orientation: values are assertive, competitive, and materialistic.
         • Nurturing orientation: emphasize relationships and the well-being of others. Focus on human interaction and caring rather than competition and personal success.
      5. Long versus short-term orientation
         • Long-term orientation: places more emphasis on the future than on the past and present. Focuses on thrift, savings, and persistence.
         • Short-term orientation: places more emphasis on the past and present, such as respect for tradition and fulfilling social obligations.

II. ETHICAL VALUES AND BEHAVIORS

Emphasis is placed on an organization’s values, ethics, and social responsibility.

1. Three Ethical Principles
   1. Utilitarianism – principle that advises people to seek the greatest good for the greatest number of people.
      1. A.K.A. consequential principle – focuses on the consequences of our actions, not on how people achieve those consequences.
      2. Occasionally results in unethical choices because it judges morality by the results, not the means to attaining those results.
   2. Individual rights – belief that everyone has entitlements that let them act in a certain way.
      1. Widely cited rights are freedom of movement, physical security, freedom of speech, fair trial, and freedom from torture.
      2. Potential problem: individual rights may conflict with others.
   3. Distributive justice – suggests that inequality is acceptable if:
      1. Everyone has equal access to the more favored positions in society, AND
      2. The inequalities are ultimately in the best interest of the least well off in society.
2. Moral Intensity, Ethical Sensitivity, and Situational Influences
   1. Moral intensity – degree to which an issue demands the application of ethical principles.
      1. Factors influencing moral intensity include the extent that the issue clearly produces good or bad consequences, others in society think it is good or evil, issue quickly affects people, decision maker feels close to the issue, and the person is able to influence the issue.
   2. Ethical sensitivity – personal characteristic that enables people to recognize the presence and determine the relative importance of an ethical issue.
   3. Situational influences – the situation or circumstances dictate the choice of values.
3. Cultural Differences in Business Ethics Fundamental ethical principles are fairly similar across cultures, but people interpret the ethical implications of specific situations differently.
4. Supporting Ethical Behavior
   1. Ethical codes establish the organization’s ethical standards.
   2. Values and ethics represent an important part of organizational life.

III. EMOTIONS IN THE WORKPLACE

1. Emotions, Attitudes, and Behavior
   1. Beliefs – perceptions about the attitude object.
   2. Feelings – positive or negative evaluations of the attitude object.
   3. Behavioral intentions – represent one’s motivation to engage in a particular behavior with respect to the attitude object.
   4. Linking emotions to behavior
      1. Beliefs and emotions influence one’s feelings toward something or someone.
      2. Beliefs and emotions have a direct influence on behavioral intentions.
   5. Cognitive dissonance – occurs when people perceive an inconsistency between their people’s beliefs, feelings, and behavior.
   6. Emotions and personality
      1. Positive affectivity (PA) – tendency to experience positive emotional states. Similar to extroversion.
      2. Negative affectivity (NA) – tendency to experience negative emotions. Employees with high NA tend to be more distressed and unhappy.

IV. MANAGING EMOTIONS

1. Conditions requiring emotional labor
   1. Occurs more often when job requires frequent and long durations of voice or face-to-face contact with clients and others.
   2. More challenging where the job requires employees to display a variety of emotions and intense emotions.
2. Emotional Dissonance
   1. Conflict between required and true emotions.
   2. Significant cause of stress and job burnout.
3. Supporting Emotional Labor
   1. Involves teaching employees the subtle behaviors that express appropriate emotions.
   2. Consists of hiring employees whose individual values and personalities match the job’s emotional labor requirements.
4. Emotional Intelligence
   1. 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.
   2. Self-awareness: ability to recognize and understand one’s moods, emotions, and needs.
   3. Self-regulation: ability to control or redirect emotional outbursts or other impulse behaviors.
   4. Self-motivation: includes stifling impulses, directing our emotions toward personal goals, and delaying gratification.
   5. Empathy: ability to understand and be sensitive to the feelings, thoughts, and situation of others.
   6. Social skill: ability to manage the emotions of other people.
   7. Improving emotional intelligence

V. JOB SATISFACTION AND ORGANIZAITONAL COMMITMENT

1. Job Satisfaction
   1. Job satisfaction and work behavior
   2. Job satisfaction and customer satisfaction
   3. Improving job satisfaction
2. Organizational Commitment
   1. Refers to the employee’s emotional attachment to, identification with, and involvement in a particular organization.
   2. Continuance commitment: occurs when employees believe it is in their own personal interest to remain with the organization.
   3. Consequences of organizational commitment
      1. Advantage: research indicates a loyal workforce can be a significant competitive advantage.
      2. Disadvantage: highly loyal workforce limits the organization’s opportunity to hire new employees with new knowledge and fresh ideas.
   4. Building organizational commitment
      1. Fairness and satisfaction – most important ingredient for a loyal workforce.
      2. Job security – needed for employees to feel permanence and mutuality in the employment relationship.
      3. Organizational comprehension – person’s identification with the company in order to fully comprehend the goals and objectives.
      4. Employee involvement – getting employees involved in the making decisions that guide the organization’s future.
      5. Trusting employees – occurs when there are positive expectations about another party’s intentions and actions toward us in risky situations.

CHAPTER 5 - FOUNDATIONS OF EMPLOYEE MOTIVATION

I. OVERVIEW

1. Definitions
   1. Motivation -- refers to the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior.
   2. Content theories of motivation – explain the dynamics of employee needs, such as why people have different needs at different times.
   3. Process theories of motivation – describe the processes through which needs are translated into behavior.

II. CONTENT THEORIES OF MOTIVATION

1. Needs Hierarchy Theory
   1. Theory which condenses the numerous needs that scholars have identified into a hierarchy of five basic categories:
      1. Physiological needs – the need to satisfy the requirements for food, air, water, and shelter.
      2. Safety needs – the need for a secure and stable environment and the absence of pain, threat, or illness.
      3. Belongingness – includes the need for love, affection, and interaction with other people.
      4. Esteem – includes self-esteem through personal achievement as well as social esteem through recognition and respect from others.
      5. Self-actualization – represents the need for self-fulfillment – a sense that the person’s potential has been realized.
   2. Satisfaction-progression process states that even if a person is unable to satisfy a higher need, he or she will be motivated by it until it is eventually satisfied.
   3. Physiological needs are initially the most important and people are motivated to satisfy them first.
2. ERG Theory
   1. Developed by organizational behavior scholar Clayton Alderfer to overcome the problems with the needs hierarchy theory.
   2. The theory groups human needs into three broad categories: existence, relatedness, and growth.
      1. Growth needs – correspond to Maslow’s esteem and self-actualization needs.
      2. Existence needs – include a person’s physiological and physically related safety needs, such as the need for food, shelter, and safe working conditions.
      3. Relatedness – include a person’s need to interact with other people, receive public recognition, and feel secure around people.
   3. Includes a frustration-regression process whereby those who are unable to satisfy a higher need become frustrated and regress back to the next lower need level.
   4. ERG is used to explain the dynamics of human need sin organizations.
3. Motivator-Hygiene Theory
   1. Differs from Maslow’s and Alderfer’s needs hierarchy models because it does not suggest that people change their needs over time.
   2. Developed by OB scholar Frederick Herzberg.
   3. Proposes that employees are motivated by growth and esteem needs.
      1. Motivators include recognition, responsibility, advancement, achievement, and personal growth. Employees experience job satisfaction when they are received and are therefore motivated to obtain them.
      2. Hygienes affect the extent that employees feel job dissatisfaction. They include job security, working conditions, company policies, coworker relations, and supervisor relations.
   4. Limitations
      1. Some studies show that employees are motivated more by the job itself.
      2. Hygiene factors are widely used to motivate people to join organizations, attend work on time, perform their jobs better, and learn new skills.
4. McClelland’s Theory of Learned Needs
   1. Definition
      1. A theory developed by David McClelland which discusses three secondary needs that he considered important as sources of motivation: need for achievement, need for affiliation, need for power.
   2. Need for achievement (nAch)
      1. People with a high nAch want to accomplish reasonably challenging goals through their own efforts.
      2. People prefer working alone rather than in teams and to choose tasks with moderate risk.
      3. Money is a weak motivator.
      4. High nAch people may perform well in large companies where they are given considerable independence.
   3. Need for affiliation (nAff)
      1. Refers to a desire to seek approval from others, conform to their wishes and expectations, and avoid conflict and confrontation.
      2. High nAff employees are more effective in coordinating roles and in jobs requiring social interaction.
   4. Need for power (nPow)
      1. Refers to a desire to control one’s environment, including people and material resources.
      2. People with high nPow want to exercise control over others and are concerned about maintaining their leadership position.
      3. Some people have a high need for personalized power, while others have a high need for socialized power.
   5. Learning needs
      1. Achievement, affiliation, and power needs are learned rather than instinctive.
5. Practical Implications of Content Motivation Theories
   1. Corporate leaders need to be sure that the rewards fulfill needs, or they will have little value.
   2. Content theories of motivation suggest that different people have different needs at different times.
   3. These theories also warn against relying too heavily on financial rewards as a source of employee motivation.
   4. Critics argue that the theories sometimes are not culture bound because different people have different needs.

III. PROCESS THEORIES OF MOTIVATION

Process theories describe the processes through which need deficiencies are translated into behavior.

1. Expectancy Theory
   1. A process motivation theory based on the idea that work effort is directed toward behaviors that people believe will lead to desired outcomes.
   2. Key variable of interest is effort – the individual’s actual exertion of energy.
   3. Individuals effort level depends on:
      1. Effort-to-performance (E P)
         1. Individual’s perception that his or her effort will result in a particular level of performance.
         2. Expectancy is defined as probability, and ranges from .0 to 1.0.
      2. Performance-to-outcome (P O)
         • Perceived probability that a specific behavior or performance level will lead to specific outcomes.
      3. Outcome values (V)
         1. Valence refers to the anticipated satisfaction or dissatisfaction that an individual feels toward an outcome.
         2. Outcomes have a positive valence when they directly or indirectly satisfy our needs, and have a negative valence when they inhibit need fulfillment.
   4. Expectancy Theory in Practice
      1. The E P expectancies are influenced by the individual’s self-efficacy, therefore organizations strive to highlight an employee’s necessary competencies, role perceptions, and favorable conditions.
      2. To increase the P O expectancies, organizations measure employee performance accurately and distribute more valued rewards to those with higher job performance.
      3. Performance outcomes influence work effort only when they are valued by employees.
2. EQUITY THEORY
   1. Definition: explains how people develop perceptions of fairness in the distribution and exchange of resources.
   2. It explains what employees are motivated to do when they feel inequitably treated.
   3. Outcome/Input Ratio is the value of outcomes you receive divided by the value of inputs you provide in the exchange relationship.
      1. Inputs include skills, effort, experience, amount of time worked, performance results, and other employee contributions to the organization.
      2. Outcomes are the things employees receive from the organization in exchange for the inputs, such as pay, promotion, recognition, or an office with a window.
   4. Equity theory states that we compare our situation with a comparison other, but it doesn’t define the comparison other.
   5. Equity evaluations are formed after determining one’s outcome/input ration and comparing this with the other’s ratio.
   6. Consequences of Inequity
      1. Changing inputs
      2. Changing outcomes
      3. Changing perceptions
      4. Leaving the field
      5. Acting on the comparison other
      6. Changing the comparison other
   7. Ethics of inequity
      1. Inequity relates to the organization’s ethical conduct through distributive justice.
      2. If everyone has equal access to more favored positions in society, and the inequalities are ultimately in the best interest of the least well off in society, then inequity is acceptable.
   8. Individual Differences in Equity
      1. People vary in their equity sensitivity –their outcome/input preferences and reaction to various outcome/input ratios.
      2. Differences operate on an equity sensitivity continuum with “Benevolents” on one end and “Equity Sensitives” on the other.
3. Goal Setting
   1. Goals are the immediate or ultimate objectives that employees are trying to accomplish from their work effort.
   2. Goal setting is the process of motivating employees and...
      
      
      
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