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Human Behavior in Organization Instructional Material Human Behavior in Organization Instructional Material

The document introduces organizational behavior and discusses its importance for managers. It explains that OB studies how and why people behave differently in organizational settings and that understanding OB can help managers create a better workplace and improve performance. It also outlines the key topics that will be discussed in the subsequent chapters.

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moonjianne
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100% found this document useful (1 vote)
313 views121 pages

Human Behavior in Organization Instructional Material Human Behavior in Organization Instructional Material

The document introduces organizational behavior and discusses its importance for managers. It explains that OB studies how and why people behave differently in organizational settings and that understanding OB can help managers create a better workplace and improve performance. It also outlines the key topics that will be discussed in the subsequent chapters.

Uploaded by

moonjianne
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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HUMAN BEHAVIOR IN ORGANIZATION INSTRUCTIONAL


MATERIAL
Management Accounting (Polytechnic University of the Philippines)

Studocu is not sponsored or endorsed by any college or university


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REPUBLIC OF THE PHILIPPINES


Polytechnic University of the Philippines
College of Social Sciences and Development
DEPARTMENT OF PSYCHOLOGY

INSTRUCTIONAL MATERIAL
FOR PSYC 40033
HUMAN BEHAVIOR IN ORGANIZATION
Compiled by:

Filipinas Corazon B. Abadilla, Rpm Christ Michael C. Entienza, MPsy, RPm, RGC
Charlon T. Agos, MPsy Aimee Rose A. Manda, RPm, ICAP III, CMHFR
Girlie Rose C. Antonio, MPsy, RPm Arianne Nicole S. Nachor, MPsy, Rpm
Rafael Lou Carlos Chinchilla, RPm Alexander B. Prudente Jr., Mpsy
Artemus G. Cruz, RPsy, RGC, RPm Geraldine F. Santos, M.A., RPsy, RPm
Zaila C. Decin, MPsy, RPm Edgar S. Teovisio
Ma. Aurora P. De Leon

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INTRODUCTION

Why do people behave a certain way in an organizational environment? What factors


affect job performance, employee interaction, job commitment, leadership and managerial
styles? Individuals have studied this very topic for decades in order to find ways of increasing
organizational performance. Human Behavior in Organization is the study of both group and
individual performance and activity within an organization. This area of study examines human
behavior in a work environment and determines its impact on job structure, performance,
communication, motivation, leadership, etc. It gives insight on how employees behave and
perform in the workplace. It helps us develop an understanding of the aspects that can motivate
employees, increase their performance, and help organizations establish a strong and trusting
relationship with their employees.

TABLE OF CONTENTS

Chapter 1: What is Organizational Behavior? - 1


Chapter 2: Diversity in Organizations - 11
Chapter 3: Attitudes and Job Satisfaction - 16
Chapter 4: Emotions & Moods at Work - 24
Chapter 5: Personality and Values - 31
Chapter 6: Perception and Individual Decision Making - 41
Chapter 7: Motivation Concepts - 46
Chapter 8: Motivation from Concept - 52
Chapter 9: Foundations of Group Behavior - 57
Chapter 10: Understanding Work Teams - 63
Chapter 11: Communication - 69
Chapter 12: Leadership - 77
Chapter 13: Power and Politics - 82
Chapter 14: Conflict and Negotiation - 88
Chapter 15: Foundations of Organization Structure - 95
Chapter 16: Organizational Culture - 101
Chapter 17: Human Resource and Policies - 105
Chapter 18: Organizational Change and Stress Management - 112
References - 117

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Chapter 1: What is Organizational Behavior?

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:


1. Understand the importance of interpersonal skills in the workplace.
2. Know the manager’s functions, roles, and skills.
3. Explain organizational behavior (OB).
4. Show the value to OB of systematic study.
5. Understand the major behavioral science disciplines that contribute to OB.
6. Demonstrate why few absolutes apply to OB.
7. Identify the challenges and opportunities managers have in applying OB concepts.
8. Compare the three levels of analysis in this text’s OB model.

II. INTRODUCTION

This chapter introduces the concept of organizational behavior. The focus of the text is
that coupling individual understanding of behavior gained through experience with that gained
through systematic OB analysis will help managers become more effective.

Many of the important challenges being faced by today’s managers are described, as are
the three levels of OB study. The outline of the text is described in relation to these three levels.

III. LESSON PROPER

Since the late 1980s, business schools have recognized the link between understanding
human behavior and managerial effectiveness.

Managers cannot succeed on technical skills alone. They also need good people skills.

1. The Importance of Interpersonal Skills

v Good people skills are important

ü Good places to work have superior financial performance

Starbucks, Adobe Systems, Cisco, Whole Foods, Google, American Express,


Amgen, Pfizer, Facebook and Marriott (US)Smart, Globe, Jollibee (PH)

Creating a pleasant workplace also appears to make good economic sense, this
companies with good reputations generates superior financial performance.

ü Developing managers’ interpersonal skills helps attract and keep high-performing


employees
ü There is a strong association between the quality of workplace relationships and
employee job satisfaction, stress, and turnover

A survey of hundreds of workplaces showed the social relationships among co-workers


and supervisors were strongly related to overall job satisfaction. Positive social relationships also
were associated with lower stress at work and lower intentions to quit.

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ü Increasing OB principles can foster social responsibility awareness

So, having managers with good interpersonal skills is likely to make the workplace more
pleasant, makes it easier to hire and keep qualified people. CSR of each company

2. What Managers Do?


v Managers is an individual who achieves goals through other people.
ü Get things done through other people.
ü They allocate resources, and direct activities of others to attain goals.
ü They do their work in an organization.
ü The people who oversee the activities of others and who are responsible for attaining goals.
ü Sometimes called administrators (non-profit organizations)

v Organization is a consciously coordinated social unit, composed of 2 or more people


that functions on a relatively continuous basis to achieve a common goal or set of
goals.

Examples are:
ü manufacturing and service firms
ü Schools
ü Hospitals
ü Churches
ü Military units
ü Police departments
ü Retail stores
ü Local, State Government agencies

v Management Functions
French industrialist Henri Fayol:All managers perform 5 management
functions: Planning, Organizing, Commanding, Coordinating & Controlling
Presently condensed into 4:
1. Planning- a process that includes defining goals, establishing strategy, and developing
plans to coordinate activities.
2. Organizing- 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.
3. Leading- a function that includes motivating employees, directing others, selecting the
most effective communication channels, and resolving conflicts.
4. Controlling- monitoring activities to ensure they are being accomplished as planned and
correcting any significant deviations.

Because organizations exist to achieve goals, ‘someone’ has to define those goals and
the means for achieving them; MANAGEMENT is that someone.So using the functional approach,
the answer to the question” WHAT MANAGERS DO?” is that THEY PLAN, ORGANIZE, LEAD
and CONTROL.

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v Management Roles
In the late 1960’s, Henry Mintzberg(graduate student of MIT) took a careful study of 5
executives to determine WHAT THEY DID IN THEIR JOBS. He concluded 10 different interrelated
roles or sets of behaviors which was categorized into 3:

Interpersonal – duties that are ceremonial and symbolic.


ü Figurehead– ex: taking visitors to dinner and attending ribbon-cutting ceremonies.
when the president of the college hands out diplomas at commencement factory
supervisor gives a group of high school students a tour of the plant. ü Leadership – hiring,
training, motivating and disciplining employees.
ü Liaison – ex: a manager at Intel might be responsible for handling all price negotiations
with a key supplier at microchips. Sales manager who obtains information from quality
control manager in his/her own company has an internal liaison relationship.

Informational – collect information from outside organizations and institutions.


• Monitor role – scanning the news media (including the internet) and talking with other
people to learn of changes in the public tastes, what competitors may be planning, and
the like.
• Disseminator – transmits info to org members.
• Spokesperson – managers represent the org to outsiders.
• Decisional – roles that require for making choices
• Entrepreneur – managers initiate and oversee new projects that will improve their
organization’s performance.
• Disturbance Handler – managers take corrective action in response to unforeseen
problems.
• Resource Allocator – responsible for allocating human, physical and monetary
resources.
• Negotiator – they discuss issues and bargain with other units to gain advantages for their
own unit contracts between management and labor unions.

Decisional – roles that require for making choices


ü Entrepreneur – managers initiate and oversee new projects that will improve their
organization’s performance.
ü Disturbance Handler – managers take corrective action in response to unforeseen
problems.
ü Resource Allocator – responsible for allocating human, physical and monetary
resources.
ü Negotiator – they discuss issues and bargain with other units to gain advantages for their
own unit contracts between management and labor unions.

v Management Skills
Technical Skills- The ability to apply specialized knowledge or expertise.
ex: When you think of the skills of professionals such as civil engineers or oral surgeons,
you typically focus on the technical skills they have learned through extensive formal education.

Human Skills- The ability to work with, understand, and motivate other people
both individually and in groups.
ex: many people are technically proficient but poor listeners, unable to understand the

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needs of others, or weak at managing conflicts.

Conceptual/Diagnostic Skills- The mental ability to analyze and diagnose complex situations.
ex: decision-making requires managers to identify problems, develop alternative solutions, and
select the best one. After selecting, they must be able to organize a plan of action and then
execute it.The ability to integrate new ideas with existing processes and innovate on the job are
also crucial conceptual skills for today’s managers.

3. The Field of Organizational Behavior


Organizational behavior studies the influence that individuals, groups, and structure
have on behavior within organizations. Its chief goal is to apply that knowledge toward improving
an organization’s effectiveness

v Focal Points of OB
JOB mostly means paid work. – a piece of work, especially a specific task done as part of the
routine of one’s occupation or for the agreed price.
Ex – Myleen’s job is cleaning the university toilets.

WORK means exertion or effort directed to produce or accomplish something. Ex–


Mowing the lawn is work. Cleaning the toilet is work.

ABSENTEEISM is a measure of attendance. Some misses occasionally, some miss far more
than others. Some look for excuses to miss work and call in sick regularly just for sometimes off
Others miss work only when necessary.
Example- It is a failure to report to work, is a huge cost and disruption to employers.
TURN-OVER when a person leaves the organization. If the individual who leaves is a good
performer or if the organization has invested heavily in training for the person, turnover can be
costly.
Ex: Is voluntary or involuntary permanent withdrawal from an organization.
PRODUCTIVITY is a performance measure that includes effectiveness and efficiency.
Is an indicator of his/her efficiency, and is measured in terms of the products or services created
per unit of input?
Effectiveness – achievement of goals
Efficiency – the ratio of effective output to the input required to achieve it.

Ex: Bill makes 100 units of a product in a day and Sara makes only 90 units in a day, then
assuming that the units are of the same quality and that Bill and Sara make the same wages, Bill
is more productive than Sara.

Ex: A hospital is effective when it successfully meets the needs of its clientele. It is efficient when
it can do so at a low cost.

An organization is productive if it achieves its goals by transforming inputs into outputs at the
lower cost. Thus, it requires both effectiveness and efficiency.

PERFORMANCE – is made-up of all work-related factors.


For ex: Even though Bill is highly productive, it may also be that he refuses to work overtime,
expresses negative opinions about organization at every opportunity and will do nothing unless it

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falls precisely within the boundaries of his job. Sara, on the other hand, may always be willing to
work overtime, is a positive representative of the organization, and goes out of her way to make
as many contributions to the organization as possible. Based on their behaviors, then, we might
conclude that Sara actually is the better performer.

MANAGEMENT are all the activities done by the manager for getting things done through others.
It also the art of getting things done through people

4. Complementing Intuition with Systematic Study


Intuition is your “gut feeling” explanation of behavior. Often our intuition leads us in the
decision-making process. Our intuition relies on gut feelings, individual observation, and common
sense. Although our intuition is extremely useful in the decision-making process, it does not give
us the complete picture. By engaging in a systematic study of behavior we can enhance our
effectiveness. It is not an either/or relationship, rather intuition and systematic study can work
effectively together to predict behavior.

Systematic study improves ability to accurately predict behavior. When we talk about
engaging in a systematic study, we are talking about looking at relationships, attempting to
attribute causes and effects, and drawing conclusions based on scientific evidence. By doing so,
we can better determine cause and effect, and then by applying scientific evidence to our
conclusions, we are better able to predict behavior.

Evidence-Based Management (EBM) complements systematic study by applying


scientific evidence to managerial decisions. The basing of managerial decisions on the best
available evidence.

Big Data is the extensive use of statistical compilation and analysis. It Identifies Persistent
and predictive statistics. It Creates targeted marketing strategies.

Using big data for managerial practices:


ü Define objectives, develop theories of causality, test the theories to see which employee
activities are relevant to the objectives

5. Contributing Disciplines to the OB Field


Organizational Behavior (OB) is interdisciplinary in nature as it is an applied behavioral
science. The theory in OB relies on contributions from multiple behavioral disciplines. These
disciplines include Psychology, Social Psychology, Sociology, and Anthropology.

Psychology
-To measure, explain, and sometimes change the behavior of humans and other animals.
-Those who have contributed and continue to add to the knowledge of OB are learning theorists,
personality theorists, counseling psychologists, and most important, industrial and
organizational psychologists.
-Early industrial and organizational psychologists studied the problems of fatigue, boredom, and
other working conditions that could impede efficient work performance.
Recently, their contributions have expanded to include learning, perception, personality,
emotions, training, leadership effectiveness, needs and motivational forces, job satisfaction,

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decision-making process, performance appraisals, attitude measurement, employee-selection


techniques, work design and job stress.

Social Psychology
-a branch of psychology blends concepts from both psychology and sociology to focus on people’s
influence on one another.
One major study area is – change how to implement it and how to reduce barriers to its
acceptance. Social psychologists also contribute to measuring, understanding, and changing
attitudes; identifying communication patterns; and building trust.
Finally, they have made important contributions to our study of group behavior, power and conflict

Sociology
-studies people in relation to their social environment or culture.
Contributions of sociologists to OB are group behavior in organizations, particularly formal and
complex organizations.
The most important is organizational culture, formal organization theory and structure,
organizational technology, communications, power and conflict.

Anthropology
-study of societies to learn about human beings and their activities.
Anthropologists’ work on cultures and environments that has helped understand differences in
fundamental values, attitudes, and behavior between people in different countries and within the
organizations.
Understanding of organizational culture, organizational environments, and differences among
national cultures is a result of the work of anthropologists or those using their methods.

v FEW ABSOLUTES IN OB
There are few absolutes (rules, principles, solutions, truths, fundamentals) in organizational
behavior. When making decisions you must always take into account situational factors that can
change the relationship between two variables.
For example, as seen in this chart one message from a boss in an American culture can mean a
completely different thing in another culture. It is always important to take context into account.

SITUATIONAL or CONTINGENCY VARIABLES – variables that moderate the relationship


between 2 or more variables.
The science of OB was developed by applying general concepts to a particular situation, person,
or group.
For ex: OB scholars would avoid stating that everyone likes complex and challenging work (the
general concept). Why? Because not everyone wants a challenging job. Some people prefer
routine over varied, or simple over complex. A job attractive to one person may not be to another:
its appeal is contingent (depends) on the person who holds it.

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Impossible to make simple and accurate Contingency Independent Dependent


generalizations Variable (Z) Variable (X) Variable (Y)

Human beings are complex and diverse


OB concepts must reflect situational In American Boss Gives
“Thumbs Up”
Understood as
Culture Complimenting
Sign
conditions: contingency variables
In Iranian or Boss Gives Understood as
Australian “Thumbs Up” Insulting - “Up
Sign Yours!”
Cultures

In the workplace today there are many challenges and opportunities in the area of
Organizational Behavior. Understanding OB has never been more important for managers as
organizations are changing at a much more rapid pace than historically seen.

v Challenges and Opportunities for OB

Responding to economic pressures-recession, lay-offs, job losses, accept pay cuts. Effective
managers emphasize different skills depending on the economic situation. During ‘good’ times,
managers focus on rewarding, satisfying, and retaining employees. During ‘bad’ economic times,
managers need skills that help them address stress, decision making, and coping.

Responding to globalization- As foreign assignments increase, you will need to be able to


manage a workforce that is different than what you may be used to and may bring different needs,
aspirations, and attitudes to the workplace.

• Working w/ people from different culture- You will also have individuals coming to
work in your own country that come from different cultures, and you will need to
find ways to accommodate their needs and help them assimilate to your workplace
culture.
• Overseeing movement of Jobs to countries with low-cost labor - You may also
need to do the difficult task of moving jobs outside of your country to a country with
lower labor costs. This is a difficult process logistically but also emotionally for the
workers who will be losing their jobs. You will need to be aware of, and appreciate, the
cultural norms in each country in which you do business. In addition, it’s important to
consider country and local regulations that could affect how you do business.

Organizations now exist in an environment with no national borders. As a result, the manager’s
job has changed. They need to have a broader perspective when making decisions.

Managing workplace diversity-the concept that organizations are becoming more


heterogeneous in terms of gender, age, race, ethnicity, sexual orientation, and inclusion of other
diverse groups.

• Diversity poses great opportunities and challenging questions for managers and
employees in all countries. Managers must recognize differences and find ways to
utilize those differences to improve organizational performance.
As the borders are disappearing, we are seeing more and more heterogeneity in the workplace.
Managers today need to embrace diversity and find ways to manage it effectively. The changing
demographics have shifted management philosophy in a way that recognizes and utilizes
differences to create productivity, profitability, and welcoming cultures.

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Improving customer service- Most workers in developed nations will work in service-oriented
jobs. It is critical to organizational success that workers improve their customer service and
people skills.

• Service oriented jobs– tech support reps, fast food counter workers, sales clerks,
waiter and waitresses, nurses, automobile repair tech, consultants, credit reps,
financial planners and flight attendants.
• Management create a customer-responsive culture. – employees are friendly and
courteous, accessible, knowledgeable, prompt in responding to customer needs, and
willing to do what’s necessary to please the customer.
Patagonia’s sample retail philosophy: “Our store is a place where the word “no” does not exist.”
– staff to use best judgment.

Improving people skills


• People Skills– learn ways to design motivating jobs, techniques for improving your
listening skills, and how to create more effective teams.

Stimulating Innovation and Change-The challenge for managers is to stimulate their


employees’ creativity and tolerance for change. Success will be attained if organizations maintain
their flexibility, continually improve their quality and beat their competition to the marketplace with
a constant stream of innovative products and services.

• Domino’s pizza – single-handedly


• Amazon.com – independent bookstore
• Boeing – change business model

Coping with Temporariness- Globalization, expanded capacity and advances in technology


have required organizations to be fast and flexible if they are to survive. Worker must continually
update their knowledge and skills to perform new job requirements.
Working in networked organizations- As technology continues to become an integral part of
organizational effectiveness, workers will find that their communication styles and needs will
change as well. Managers must stay on top of what is needed to motivate workers in this
environment.

• Communication of employees even though they may be miles apart.


• Work from home / non-office locations.

Enhancing employee well-being at work- Recent studies suggest that employee want jobs that
give them flexibility in their work schedule so they can better manage work-life conflicts. Most
college and University students say attaining a balance between personal life and work is a
Primary Career Goal: they want a “LIFE” as well as a “JOB”. Organizations that don’t help their
people achieve work-life balance will find it increasingly difficult to attract and retain the most
capable and motivated employees.

Creating a positive work environment- Positive organizational behavior is a growing interest in


organizational behavior. It promotes the idea of exploiting employee strengths rather than
focusing on employee limitations or weaknesses.

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Improving ethical behavior- Managers facing ethical dilemmas or ethical choices are required
to identify right and wrong conduct. This can be difficult in a global economy where different
cultures approach decisions from different perspectives.
Companies promoting strong ethical missions:
• Encourage employees to behave with integrity. Provide strong leadership that influence
employee decisions to behave ethically

v Three Levels of OB Analysis

In Organizational Behavior (OB) we utilize the


representation of the world as broken down into three
levels. The first level of analysis we will look at is the
Individual level. At this level we look at individuals’
behavior. Next, recognizing that individuals make up
groups, we analyze how group behavior occurs.
Finally, organizations are made up of groups of
individuals, so we analyze the organization at a
systems level.

IV. ACTIVITIES / EXERCISES

I.Discuss a current event that was influenced by, or could have been positively influenced by
a clear understanding of OB. Prepare an essay that concisely describes that current
event and what you believe to be the impact of OB.
II.Choose an organization either local or abroad that you admire. Briefly describe your chosen
organization, discussing what goods or services are produced, how many employees it
has, what the structure looks like, and a general overview of how the organization of study
is managed. Explain why you chose that organization.

Answer in an essay format.

What do you hope to gain from the study of OB? How well do you think you currently
understand human behavior in organizations? Have you ever been surprised by the actions or
reactions of another person? Why? Describe what actually happened and what you were
expecting to happen. What do you think may have caused the difference?

V. ASSESSMENT

MODIFIED TRUE OR FALSE


_________________1. There are 10 Challenges and Opportunities in OB.
_________________2. Psychology, Social Psychology, Psychology and Anthropology are the
Contributing Disciplines to OB.
_________________3. In the late 1960’s, Henry Mintzberg, he concluded 10 different
interrelated roles or sets of behaviors which was categorized into 3: Interpersonal, Informational,
and Decisional.
_________________4. Sociology, studies people in relation to their social environment or culture.
_________________5. French industrialist Henri Fayol: All managers perform 5 management
functions that presently condensed into 4 namely; Planning, Organizing, Commanding, and

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Controlling. B) specialized technical processes


C) superior financial performance
MULTIPLE CHOICE D) long-lasting CEO's
E) all of the above
1) What are the three primary determinants
of behavior in organizations? 6) ________ is the study of the impact that
A) profit structure, organizational individuals, groups, and structure have on
complexity, and job satisfaction behavior within organizations. A) Leadership
B) individuals, profit structure, and job B) Organizational strategy
satisfaction C) Performance management
C) individuals, groups, and job D) Employee relations
satisfaction E) Organizational behavior
D) groups, structure, and profit structure
E) individuals, groups, and structure 7) Which of the following is not a topic or
concern related to OB? A) turnover
2) Which of the following is not a core topic B) leader behavior
of organizational behavior? A) motivation C) productivity
B) attitude development D) management
C) conflict E) family behavior
D) resource allocation
E) work design 8) In order to predict human behavior, it is
best to supplement your intuitive opinions
3) Until the late 1980s, business school with information derived in what fashion?
curricula emphasized the ________ aspects A) common sense
of management. B) direct observation
A) ethical C) systematic study
B) people D) speculation
C) technical E) organizational theory
D) human
E) global 9) Arianna believes that it is best to take the
casual or common-sense approach to
4) Which of the following is not a reason why reading others. She needs to remember that
business schools have begun to include ________.
classes on organizational behavior?
A) to increase manager effectiveness in A) the casual approach is nonsensical, and
organizations should be avoided as much as possible B)
B) to help organizations attract top the systematic approach and the casual
quality employees approach are one and the same
C) to expand organizations' consulting C) laboratory experiments on human
needs behavior often result in unreliable findings D)
D) to improve retention of quality the casual or common-sense approach to
workers reading others can often lead to erroneous
E) to help increase organizations' profits predictions
E) behavior is unpredictable, hence there is
5) There is a connection between companies no accurate way to analyze it
which have ________ and the incorporation
of organizational behavior principles. A) high
turnover rates

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10) Which of the following explains the C) Human behavior is not consistent.
usefulness of the systematic approach to the D) Human behavior is rarely predictable.
study of organizational behavior? E) Human behavior is often not sensible.
A) Human behavior does not vary a great
deal between individuals and situations. B)
Human behavior is not random.
VI. SUMMARY

1. Managers need to develop their interpersonal, or people, skills to be effective in their


jobs.
2. Organizational behavior (OB) investigates the impact that individuals, groups, and
structure have on behavior within an organization, and it applies that knowledge to make
organizations work more effectively.
3. Here are a few specific implications for managers:
• Resist the inclination to rely on generalizations; some provide valid insights into human
behavior, but many are erroneous.
• Use metrics and situational variables rather than hunches to explain cause-and-effect
relationships.
• Work on your interpersonal skills to increase your leadership potential.
• Improve your technical and conceptual skills through training and staying current with
organizational trends like big data.
• Organizational behavior can improve your employees’ work quality and productivity by
showing you how to empower your employees, design and implement change
programs, improve customer service, and address the work-life balance conflict.
4. OB’s goal is to understand and predict human behavior in organizations.

Chapter 2: Diversity in Organizations

I. LEARNING OBJECTIVES / OUTCOME

After studying this chapter, you should be able to:


1. Understand the two major forms of workforce diversity and give examples of how
workplace discrimination undermines diversity effectiveness.
2. Explain the key biographical characteristics and describe how they are relevant to OB.
3. Understand intellectual ability and demonstrate its relevance to OB.
4. Know the difference between intellectual and physical ability.
5. Understand how organizations manage diversity effectively.
6. Show how culture affects our understanding of biographical characteristics and intellectual
abilities

II. INTRODUCTION

In this chapter, we look at the two major forms of workforce diversity, identify the
key biological characteristics, and describe their relevance to OB, define intellectual capability
and explore its relevance in OB, and discuss how to manage a diverse workforce effectively.

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III. LESSON PROPER

The demographics of the U.S. workforce has changed over the last thirty-plus years.
Today’s workforce is not only more ethnically and racially diverse, it also includes more women
and older workers. Wage gaps persist across genders and racial and ethnic groups; however,
the gaps have begun to shrink.

Levels of Diversity ü Surface-level diversity - differences in age, race, gender, etc... Less
significant over time ü Deep-level diversity - differences in personality and values. More
important in the long run

v DISCRIMINATION
Discrimination is one of the primary factors that prevent diversity, whether the
discrimination is overt or covert. Recognizing diversity opportunities can lead to an effective
diversity management program and ultimately to a better organization. To discriminate is to note
a difference between things. While this in and of itself isn’t a bad thing, when we talk about
discrimination, we’re usually referring to stereotypes about groups of people and assumptions
that everyone in a group is the same. This type of discrimination can be harmful to organizations
and employees.

v BIOGRAPHICAL CHARACTERISTICS

1. Age
The relationship between age and performance is important because:
a. The workforce is aging
b. Mandatory retirement is outlawed
PHILS:
ü Military personnel must leave the service on reaching 56 years of age. ...
ü Under the Philippine Labor Code, the default mandatory retirement age is at least
60 years but not over 65 years old

2. Gender
Do women perform as well on the job as men?
Few, if any, important differences, but:
ü Women in male domains are perceived as less likeable, more
hostile, and less desirable as supervisors

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ü Women are less likely to be assigned challenging positons ü


Women often earn less than men in the same position ü Women
face maternal wall bias

3. Race and Ethnicity


U.S. Census Bureau:
a. Recognizes 7 racial groups
b. Distinguishes between native English speakers and Hispanics
Research shows that:
ü Individuals slightly favor colleagues of their own race in performance evaluations,
promotion decisions, and pay raises
ü Racial and ethnic minorities report higher levels of discrimination in the workplace
ü African Americans tend to fare worse than Whites in employment decisions ü
Some industries are less racially diverse than others

4. Disability
Americans with Disabilities Act ü requires employers to make reasonable
accommodations for people with physical or mental disabilities
Philippines – Magna Carta for the Disabled ü No disabled persons shall be denied access
to opportunities for suitable employment. ü A qualified disabled employee shall be
subject to the same terms and conditions of employment and the same compensation,
privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied
person

5. Other Biographical Characteristics

(1) Tenure expressed as work experience is a good predictor of employee productivity. Seniority
is negatively related to absenteeism. In addition, the longer an individual has been in a job, the
less likely the individual is to quit. Tenure and job satisfaction is positively related.

U.S. law prohibits employers from discriminating against employees based on their (2) religion.
Even so, religion is still an issue in OB, especially when it comes to Islam. Evidence shows that
people are discriminated against for their Islamic faith.
Muslims are not respectful of women.
Many Christians believe they do not need to work on Sundays.
Also, conservative Jews believe they should not work on Saturdays. (7th day Adventist)
Religious individuals also believe they have an obligation to express their beliefs in the workplace.

(3) Sexual Orientation is an inherent or immutable enduring emotional, romantic or sexual


attraction to other people. While federal law does not prohibit discrimination against employees
based on sexual orientation, many organizations have implemented their own policies protecting
employees on the basis of sexual orientation. In addition, many states and municipalities also
have laws to protect employees based on their sexual orientation.

(4) Transgender - An umbrella term for people whose gender identity and/or expression is
different from cultural expectations based on the sex they were assigned at birth. Being
transgender does not imply any specific sexual orientation. Therefore, transgender people may
identify as straight, gay, lesbian, bisexual, etc.) Companies are also beginning to establish policies

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regarding transgender employees. Today’s global companies do well to understand and respect
the cultural identities of their employees, both as groups and as individuals.

The assigned sex and gender do not match the person's (5) gender identity -One's innermost
concept of self as male, female, a blend of both or neither – how individuals perceive themselves
and what they call themselves. One's gender identity can be the same or different from their sex
assigned at birth.

A company seeking to be sensitive to the (6) cultural identities of its employees should look
beyond accommodating its majority groups and instead create as much of an individualized
approach to practices and norms as possible.

An act prohibiting discrimination on the basis of ethnicity, race, religion or belief, sex,
gender, sexual orientation, gender identity, gender expression, civil status and hiv status
Pending in the Committee (11/27/2017)
SOGIE Equality Act in the Lower House on its third and final reading (9/20/2017)

v ABILITY
An individual’s current capacity to
perform the various tasks in a job
ü Intellectual abilities: Abilities
needed to perform mental
activities

ü Physical Abilities– the


capacity to do tasks that demand
stamina, dexterity (skill, agility),
and strength, and similar
characteristics. Research on
hundreds of jobs has identified
nine basic abilities needed in the
performance of physical tasks.
Individuals differ in the extent to
which they have each of these
abilities.

v Implementing Diversity
Management Strategies
Diversity management: Makes
everyone more aware of and
sensitive to the needs and
differences of others.

v Attracting, Selecting, Developing, and Retaining Diverse Employees


To enhance workforce diversity, organizations should target underrepresented
groups through ads in publications geared toward certain demographic groups, recruiting at
universities and colleges with significant members of minorities, and forming partnerships with
associations that represent women and minorities.

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Organizations should also take care to ensure that hiring decisions are bias free, and that
career advancement decisions are fair and objective. Research shows that individuals who share
personality traits with their co-workers are more likely to be promoted, but that in collectivist
societies, similarity to supervisors is very important to career advancement, while in individualistic
cultures similarity to peers is more important.

Studies also show that a positive diversity climate is related to organizational commitment
(The degree of loyalty an individual feel toward the organization) and lower turnover intentions
among African American, Hispanic, and White managers.

v `Diversity in Groups
Does diversity help or hurt group performance? The answer is both– it depends on the
characteristic of interest. Diversity in some traits can hurt team performance, but in other cases
can facilitate it.

ü Leverage differences for superior performance – The most important way is to


emphasize the higher-level similarities among members. It means that groups of
diverse individuals will be much more effective if leaders can show how members can
have a common interest in the group’s success.
ü Transformational leaders are those who emphasize higher-order goals and values
in their leadership style are more effective at managing diverse teams.

v Effective Diversity Programs


Have Three distinct components.
ü Teach managers about the legal framework for equal employment opportunity and
encourage fair treatment of all people regardless of their demographic
characteristics
ü Teach managers how a diverse workforce will be better able to serve a diverse
group of customers and clients
ü Foster personal development practices that bring out the skills and abilities of all
workers

IV. ACTIVITIES / EXERCISES

1. Self-analysis. What is your position on diversity in the workplace? How would you
describe your attitude toward diversity? Be detailed in your analysis.
2. Web Crawling. Find and present an online article on diversity in a country other than the
United States. What commonalities are exposed and what differences are shown to exist?

V. ASSESSMENT

FILL IN THE BLANKS

1. Levels of Diversity
• _____________________________
• DEEP-LEVEL DIVERSITY
2. ______________________________
• DISCRIMINATORY POLICIES OR PRACTICIES
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• _____________________________
• _____________________________
• MOCKERY AND INSULTS
• _____________________________
• _____________________________
3. Diversity in Groups
• LEVERAGE DIFF, FOR SUPERIOR PERFORMANCES
• ______________________________
4. ___________________________
• BIOGRAPHICAL CHARACTERISTICS
§ AGE
§ GENDER
§ _______________________________
§ _______________________________

VI. SUMMARY
• There are two Levels of Diversity (1) Surface-level diversity and (2) Deep-level diversity
• Discrimination is one of the primary factors that prevent diversity, whether the
discrimination is overt or covert.
• There are 6 types of Discrimination (1) Discriminatory policies or practices (2) Sexual
Harassment (3) Intimidation (4) Mockery and Insults (5) Exclusion and (6) Incivility
• Biographical Characteristics covers Age, Gender, Race and Ethnicity and Disability
• Other biographical Characteristics covers tenure, religion, sexual orientation, transgender,
gender identity and cultural identities.
• Ability refers to an individual’s current capacity to perform the various tasks in a job
• It can be categorized as to Intellectual and Physical
• Diversity management means making everyone more aware of and sensitive to the needs
and differences of others.
• Having a Diverse population subjects the organization to an organization commitment and
lower turnover, done by Attracting, Selecting, Developing, and Retaining Diverse
Employees

• Diversity leverages differences for superior performance and Transformational Leaders

Chapter 3: Attitudes and Job Satisfaction

I. LEARNING OBJECTIVES / OUTCOME

At the end of this lesson you should be able to:


1. Understand the three components of an attitude.
2. Learn the relationship between attitudes and behavior.
3. Compare and contrast the major job attitudes.
4. Understand job satisfaction and show how we can measure it.
5. Summarize the main causes of job satisfaction.
6. Learn four employee responses to dissatisfaction.
7. Learn that job satisfaction is a relevant concept.

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II. INTRODUCTION

In this chapter, we look at attitudes, their link to behavior, and how employees’
satisfaction or dissatisfaction with their jobs affects the workplace.

III. LESSON PROPER

Attitude VS Behavior
Attitude is comparatively enduring organization of beliefs, feelings, and behavioral tendencies
towards socially important objects, groups, events or symbols" (Hogg & Vaughan 2005) while
Behavior is a manifestation or acting out of the attitudes an individual has.

SALOOBIN PAG-UUGALI
Attitude = a settled way of thinking or feeling Behavior = the way in which one acts or
about someone or something, typically one that conducts oneself, especially toward others.
is reflected in a person's behavior. "good behavior“
synonyms:
view, viewpoint, outlook, perspective, stance, st synonyms: conduct,
andpoint, position, inclination, temper, orientati deportment, bearing, actions, doings;
on, approach, reaction;

Note: VALUES are usually nouns, while VIRTUES are adjectives that describe positive and
desirable qualities which usually mirror a value it represents

VALUES are usually reflected through these VIRTUES, which in turn become eminent in the
attitude and behavior of a person.

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ATTITUDE is a predisposition or a tendency


VALUES VIRTUES to respond positively or negatively towards a
certain idea, object, person, or situation.
LOVE Loving, caring, Attitude influences an individual's choice of
action, and responses to challenges,
compassionate, gentle,
incentives, and rewards (together called
affectionate
stimuli).
RESPECT Respectful, civil
There are three components or structure
of attitudes Affective, Behavioral and
INTEGRITY Reputable, responsible,
Cognitive or also known as the ABC Model
believable, honest, trustworthy
of Attitude.
BALANCE Fair, objective, harmonious

PEACE Peaceful, calm

Affective Component this involves a


person’s feelings / emotions about the
attitude object. For example: “I am scared
of spiders”.

Behavioral Component the way the


attitude we have influences on how we act
or behave. For example: “I will avoid
spiders and scream if I see one”.
Cognitive Component this involves
a person’s belief / knowledge about
an attitude object. For
example: “I believe
spiders are dangerous”.

Moving forward with the lecture, in this part of the module you are to analyze the
relationship between attitudes and behavior. Supporting theory and phenomenon will be
discussed such as Theory of Planned Behavior and to further elaborate the significance of the
two to one another.

Attitudes Follow Behavior

Theory of Planned Behavior


The theory of planned behavior is a theory used to understand and predict behaviors, which posits
that behaviors are immediately determined by behavioral intentions and under certain
circumstances, perceived behavioral control. Behavioral intentions are determined by a
combination of three factors: attitudes toward the behavior, subjective norms, and perceived
behavioral control.

Given a situation of wanting to become the employee of the month, so you started surfing the
internet about the tips and needed skill. You may talk to your friends about their

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recommendations. You may attend some seminars to enhance your skill or being punctual at
work. You may do all of this and at some point, and be the employee of the month you desire. In
this situation how can
we apply the theory? Look at the photo on the
right.

What the theory now predicts is that positive


attitude towards the act or behavior, favorable
social norms, and a high level of perceived
behavioral control are the best predictors
performing a behavioral intention turned into a
display of behavior or act.

Behavior Follows Attitudes

Foot in the Door Phenomena assumes


agreeing to a small request increases the
likelihood of agreeing to a second, larger request. The foot-in-the-door technique works on the
principle of consistency. This means that as long as the request in consistent with or similar in
nature to the original small request, the technique will work.
For example, in employment, your co-worker asks you to photocopy a document for him/her just
for today and you said yes. A week later, the same co-worker asked you to photocopy documents
for your department and you agreed.

Summarize the relationship between attitudes

and behavior
Moderating Variables is the most powerful moderators of
the attitude-behavior relationships are:
ü Importance of the attitude ü Correspondence to behavior ü
Accessibility of the attitude ü Social pressures ü Direct personal
experience ü Knowing attitudes helps predict behavior

Cognitive Dissonance
is any inconsistency between two or more attitudes,
or between behavior and attitudes. Individuals seek
to minimize dissonance
Desire to reduce dissonance is determined
by:
ü The importance of the elements creating
the dissonance ü The degree of influence the
individual believes he or she has over the elements
ü The rewards that may be involved in
dissonance

Cognitive dissonance is experienced on an immense

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scale in a work environment. One example would be when a supervisor tells his junior that he
needs to get an almost impossible task done pronto, or he’ll basically be replaced by some other
subordinate. The worker now is caught between two thoughts― he has an impossible task to
finish instantly, which he knows he cannot, or let the supervisor replace him with his co-worker,
which would mean accepting that the co-worker is better than him. This psychological
restlessness is cognitive dissonance. The worker now either will change his original belief about
the difficulty level of the task and try it or will stick to his belief and let himself get replaced by his
co-worker to reduce the psychological discomfort.

Compare and contrast the major job attitudes Major Job Attitudes
Job Satisfaction - Is the attitude of content an employee possesses in his or her current
position in an organization
Job Involvement - Identifying with the job, actively participating in it, and considering
performance important to self-worth.
Psychological Empowerment - “intrinsic task motivation reflecting a sense of selfcontrol
in relation to one’s work and an active involvement with one’s work role”
Organizational Commitment – an individual's psychological bond to the organization,
including a sense of job involvement, loyalty and belief in the values of the organization

Affective commitment - Refers to one’s


feelings of loyalty to a company or
organization because he or she believes in
the organization. They typically identify with
the organizational goals, feel that they fit into
the organization and are satisfied with their
work. Employees who are affectively
committed feel valued, act as ambassadors
for their organization and are generally great
assets for organizations.

Continuance commitment - an employee that has already


vested many years in a company building up years of leave,
employee benefits (such as pension) and salary. If the
employee were to leave to the company, he/she may lose the
time vested, as well as seniority and pension loss. When
employees feel the need to stay with their organization because
their salary and fringe benefits won’t improve if they move to
another organization. Such examples can become an issue for
organizations as employees that are continuance committed
may become dissatisfied (and disengaged) with their work and
yet, are unwilling to leave the organization.
Normative commitment - an employee may feel a sense of
obligation to stay with their employer during its time of need
even though it is no longer advantageous to do so. They may
fear the potential disappointment in their employer or teammates.

Perceived Organizational Support - discusses the employees’ perception


concerning the degree to which the organization values their involvement and cares

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about their well-being. POS has been found to have important significances to
employee performance and well-being.

Employee Engagement - notion that employee engagement is a desirable condition,


has an organizational purpose, and connotes involvement, commitment, passion,
enthusiasm, focused effort, and energy, so it has both attitudinal and behavioral
components

Defining Job satisfaction and show how we can measure it

For this lecture you are to gain knowledge on the key elements in measuring of job satisfaction.
So why do employees need to be satisfied? According to the article Why Job satisfaction is an
Important Phenomenon of the Vicious Circle? a satisfied employee helps promote the
organization’s brand internally and externally. Employees are more loyal to the organization’s
objective and put an extra mile in achieving goals.
Let us first define what is Job Satisfaction
Job satisfaction: a positive feeling about a job resulting from an evaluation of its characteristics.

Measuring job satisfaction:

n Single global rating method- the single,


global rating method is nothing more
than asking individuals to respond to
one question such as; all things
considered, how satisfied are you with
your job?

• Only a few general questions


• Remarkably accurate

n Summation score method- It identifies key elements in a job and asks for the employee’s
feelings about each, nature of the work, supervision, present pay, promotion opportunities,
and relation with co-workers.

• Identifies key elements in the job and asks for specific feeling about them

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Average Job Satisfaction by Facets


Job Satisfaction by Country Main
causes of Job Satisfaction What
Causes Job Satisfaction?

ü The Work Itself – the


strongest correlation with overall
satisfaction
ü Social Component – there is
a strong correlation with how people
view the social context of their work
ü Pay – not correlated after
individual reaches a
level of
comfortable living
ü Personality – positive core
self-evaluations and negative core
self-evaluations.

Identifying four employee responses to dissatisfaction

The Consequences of Dissatisfaction


When employees are dissatisfied with their jobs, they have four basic responses they
can utilize. These options are divided into active and passive choices.

The active options are exit and voice:


ü If employees select to exit, they choose to leave or move in a direction of leaving the
organization.
ü In voice, the employees will work toward active and constructive attempts to improve
conditions.
The passive options are neglect and loyalty:
ü Employees may choose to neglect their work and just allow conditions to worsen,
ü Or they may choose to remain loyal to the organization and just wait for change.

The Benefits of Satisfaction


ü Better job and organizational performance
ü Better organizational citizenship behaviors
• (OCB – Discretionary behaviors that contribute to organizational
effectiveness but are not part of employees’ formal job description)
ü Greater levels of customer satisfaction
ü Generally lower absenteeism and turnover
ü Decreased instances of workplace deviance

Relevant concept of Job Satisfaction in countries other than the United States Are
Employees in Western Cultures More Satisfied with Their Jobs?
ü Evidence suggests employees in Western cultures have higher levels of job
satisfaction than those in Eastern cultures. The report included 23 countries and the
result appear the highest levels appear in the US and Western Europe.

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ü Eastern individuals find negative emotions less aversive more than do individuals in
Western cultures, who tend to emphasize positive emotions and individual happiness

IV. ACTIVITY / EXERCISES

Let’s see how the three components and see how these three works together. I have
written down an example on the left in showing how cognition, affect and behavior are closely
related. Now it’s your turn to reflect on the three components, you may write it in the figures
provided below.

V. ASSESSMENT
Answer the following:
1. A settled way of thinking or feeling about someone or something, typically one that is
reflected in a person's behavior.
2. A manifestation or acting out of the attitudes an individual has.
3. Any inconsistency between two or more attitudes, or between behavior and attitudes.
4. A positive feeling about a job resulting from an evaluation of its characteristics.
5. The attitude of content an employee possesses in his or her current position in an
organization.
6. Is the strongest correlation with overall satisfaction.
7. Is the sense of obligation to stay with their employer during its time of need even
though it is no longer advantageous to do so.
8. Refers to one’s feelings of loyalty to a company or organization because he or she
believes in the organization.
9. Identifying with the job, actively participating in it, and considering performance
important to self-worth
10. An individual's psychological bond to the organization, including a sense of job
involvement, loyalty and belief in the values of the organization.

VI. SUMMARY

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Implications for Managers


ü Pay attention to your employees’ job satisfaction levels as determinants of their
performance, turnover, absenteeism, and withdrawal behaviors.
ü Measure employee job attitudes objectively and at regular intervals in order to
determine how employees are reacting to their work.
ü To raise employee satisfaction, evaluate the fit between the employee’s work interests
and the intrinsic parts of the job to create work that is challenging and interesting to
the individual.
ü Consider the fact that high pay alone is unlikely to create a satisfying work
environment.
Keep in Mind…
ü Individuals have many kinds of attitudes about their job
ü Most employees are satisfied with their jobs, but when they are not, a host of actions
in response to the satisfaction might be expected
ü Job satisfaction is related to organizational effectiveness

Chapter 4: Emotions & Moods at Work

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:


1. Understand the difference between emotions and moods
2. Learn that emotions are rational and what functions they serve.
3. Know the sources of emotions and moods.
4. Know the impact emotional labor has on employees.
5. Learn the affective events theory and identify its applications.
6. Know the evidence for and against the existence of emotional intelligence.
7. Apply concepts about emotions and moods to specific OB issues.
8. Contrast the experience, interpretation, and expression of emotions across cultures

II. INRODUCTION

This chapter examines the effect of moods and emotions on the workplace. Humans are
emotional creatures, and to ignore this fact during work hours is inappropriate in the study of
organizational behavior. This chapter examines the causes of, and influences on, emotion.
Emotional intelligence is explored, as are the various ways emotions play out in the work
environment.

III. LESSON PROPER

Why Were Emotions Excluded from OB Study?

Historically the study of organizational behavior has not given much attention
(detrimentalunfavorable/avoided) to emotions. Emotions were typically seen as irrational, so
managers tended to work to make the workplace emotion-free.

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Often managers viewed emotions as disruptive to the workplace and therefore a hindrance
to productivity. However, when thinking about emotions, typically managers were focusing on
negative emotions. Even though there are some negative emotions that could hinder productivity,
there is no doubt that workers bring their emotions to the workplace. Therefore, any study in
organizational behavior would not be complete without considering the roles of emotions in the
workplace.

Affect, Emotions, and Moods

v Affect is a generic term that covers a


broad range of feelings people
experience. This includes both
emotions and moods. v Emotions
are intense feelings that are directed
at someone or something.
v Moods are the feelings that tend to be
less intense than emotions and that
lack a contextual stimulus.

Affect is the various emotional experiences such as emotions, moods and affective traits.
This is the emotion we express externally: can be a tone of voice, smile, frown or any facial
expression or body movements that indicates emotion.

Emotion
From the Latin verb “movare” means to move or be upset or agitated. Defined by Smith
(1973) referring to variations in level of arousal, affective state or mood, expressive
movements and attitudes.

As the brain releases neurotransmitters like dopamine and oxytocin, these activates
your emotions neurologically

• Neurotransmitter – a substance in the body that carries a signal from 1 nerve cell to
another.
• Dopamine – a monoamine that is a decarboxylated form of dopa and that occurs
especially as a neurotransmitter in the brain
• Oxytocin- a pituitary octapeptide hormone that stimulates esp. the contraction of
uterine muscle and secretion of milk

The Basic Emotions


Six universal emotions ü
Anger ü Fear ü
Sadness ü Happiness
ü Disgust
ü Surprise

Are feelings and emotions the same?

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According to him, Dr. Antonio R. Damasio (2005) Neurologist, feeling arises from the brain as
it interprets an emotion, which is usually caused by physical sensations experienced by the
body as a reaction to a certain external stimulus (event).

An example of this would be the emotion of being afraid, which produces a feeling of fear

The Basic Moods:

Positive affect: a mood dimension consisting of positive emotions such as


excitement, enthusiasm, and cheerfulness at the high end (high positive affect) and boredom,
sluggishness, and tiredness at the low end (low positive affect)

Negative affect: a mood dimension consisting of nervousness, stress, and anxiety at


the high end (high negative affect) and relaxation, tranquility and serenity at the low end (low
negative affect)

Experiencing Moods and Emotions

Positive moods are somewhat more common than negative moods

Positivity offset: at zero input, (when nothing in particular is going on) most people
experience a mildly positive mood

The Function of Emotions and Moods

ü Emotions and Rationality


• Emotions are critical to rational thought: they help us understand the world
around us
ü Emotions and Ethics
• New research suggests that ethical behavior may be based to some degree
on emotions and feelings

Strong emotion

The person’s physical responses including faster


heartbeat, profuse sweating and dilation of eye pupils,
higher blood pressure, and muscular tremors affecting the
nervous system in general.

Sources of Emotions and Moods

ü Personality - Some people experience certain moods and emotions more frequently
than others. Affect intensity: experiencing the same emotions with different intensities

ü Time of day- People vary in their moods by time of day

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Time-of-Day Effects on Moods of U.S.


Adults as Rated from Twitter Postings

ü Day of the week- People tend to be in their best mood on the weekend

Day-of-Week Mood Effects across Four Cultures

ü Weather- No impact according to research


ü Stress- Increased stress worsens moods
ü Social Activities- Physical (hiking), informal (night party), and epicurean activities (eat
out with friends) increase positive mood
ü Sleep- Lack of sleep increases negative emotions and impairs decision making
ü Exercise - Mildly enhances positive mood
ü Age- Older people experience negative emotions less frequently
ü Gender - Women show greater emotional expression, experience emotions more
intensely, and display more frequent expressions of emotions. Could be due to
socialization

v Emotional labor: an employee’s expression of organizationally desired emotions


during interpersonal transactions at work

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v Emotional dissonance: when an employee has to project one emotion while


simultaneously feeling another (inconsistencies between the emotions people feel and
the emotions they project)

Felt vs. Displayed Emotions

v Felt Emotions: The individual’s actual emotions.

v Displayed Emotions: The learned emotions that the organization requires workers to
show and considers appropriate in a given job
• Surface Acting - hiding one’s true emotions. Deals with displayed emotions.
• Deep Acting- trying to change one’s feelings based on display rules. Deals with felt
emotions.

Affective Events Theory

Affective Events Theory (AET) demonstrates that employees react emotionally to


things that happen to them at work, and this reaction influences their job performance and
satisfaction. This provides us with valuable insights into the role emotions play in primary
organizational outcomes of job satisfaction and job performance. The theory begins by
recognizing that emotions are a response to an event in the work environment.

The figure below is the framework of Affective Events Theory (AET):

This environment creates WORK EVENTS


that can be hassles or uplifting events or
both.

Ex. of hassles: colleagues who refuse to


carry their share of work; conflicting directions
from managers; and excessive time
pressures.

Ex. of uplifting events: meeting a goal, getting support from a colleague, and receiving
recognition for an accomplishment

Work events trigger positive or negative emotional reactions, to which employees’


personalities and moods predispose (influence) them to respond with greater or lesser
intensity.

Emotions influence performance and satisfaction variables such as organizational citizenship


behavior, organizational commitment, level of effort, intention to quit, and workplace deviance.

Example scenario: Lay-off news in your company that may possibly include you. Fear,
insecurity and anxiety will affect performance and satisfaction.

Emotional Intelligence (EI)

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Emotional Intelligence (otherwise known as emotional quotient or EQ) is the ability to


understand, use, and manage your own emotions in positive ways to relieve stress, communicate
effectively, empathize with others, overcome challenges and diffuse conflict. Emotional
Intelligence helps you build stronger relationships, succeed at school and work, and achieve your
career and personal goals. Individuals who are emotionally intelligent will have a strong sense of
self-awareness, recognizing their own emotions when experienced. By understanding their own
emotions and those of others, they can manage emotional cues and information to make
decisions. It can also help you connect with your feelings, turn intention into action, and make
informed decisions about what matters most to you.

OB Applications of Emotions and Moods

ü Selection – Employers should consider EI a factor in hiring for jobs that demand
a high degree of social interaction.
ü Decision Making – Positive emotions can increase problem-solving skills and help
us understand and analyze new information
ü Creativity – Positive moods and feedback may increase creativity
ü Motivation – Promoting positive moods may give a more motivated workforce
ü Leadership – Emotions help convey messages more effectively
ü Negotiation – Emotions may impair negotiator performance
ü Customer Service – Customers “catch” emotions from employees, called
emotional contagion
ü Job Attitudes – Emotions at work get carried home but rarely carry over to the
next day
ü Deviant Workplace Behaviors – Those who feel negative emotions are more
likely to engage in deviant behavior at work
ü Safety and Injury at Work – Bad moods can contribute to injuries on the job

How Managers can influence Moods?


• Managers can use humor and give their employees small tokens of appreciation
for work well done.
• When leaders are in good moods, group members are more positive, and as a
result they cooperate too.
• Selecting positive team members can have a contagion effect as positive moods
transmit from team member to team member.

Experience, Interpretation, and Expression of Emotions Across Culture

Emotions vary across culture. People in most cultures appear to experience certain positive and
negative emotions but the frequency and intensity varies in some degrees. People from all over
the world interpret negative and positive emotions in much the same way. Though, it is easier for
people to accurately recognize emotions within their own culture than in others. Thus, cultural
factors influence what manager’s think is emotionally appropriate. Managers need to know the
emotional norms in each culture they do business in or they don’t send unintended signals or
misread the reactions of others.

IV. ACTIVITY / EXERCISES

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Activity

1. Observe your own mood using the below table/format, wherein 10 is the most positive and
1 is the least:
2. Identify if surface (Carlos) or deep (Girlie) acting (10)
a. Joseph offered help to Nathan though he’s not familiar with his work. (deep)
b. Dina congratulated Ted when he got the promotion, they both applied in. (deep)
3. Give a personal experience wherein you felt you had applied a high level of emotional
intelligence.
4. Search the internet for actual cases involving affect (mood or emotion)

10
9
Level of Mood

8
7
6
5
4
3
2
1

V. ASSESSMENT

1. Describe the three major emotional terms. How are they related and how do they differ?
2. List the basic emotions along a continuum. What are the difficulties of using this continuum?
3. Of the eight sources of emotions and moods identified in your text, which do you feel is the
most critical and why?
4. What are the sources of stress and emotional labor for employees?
5. How valid do you consider the concept of emotional intelligence to be? Rationalize your
answer.
6. Consider the impact of emotions on customer service. What is the effect of emotions and
moods on customer satisfaction, and how does the concept of emotional contagion enter into
this?
7. Are emotions universal? Why or why not? Give examples in your answer.

VI. SUMMARY

Implications for Managers


ü Recognize that emotions are a natural part of the workplace and good management does
not mean creating an emotion-free environment
ü To foster creative decision making, creativity, and motivation in employees, model positive
emotions and moods as much as is authentically possible

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ü In the service sector, encourage positive displays of emotion, which make customers feel
more positive and thus improve customer service interactions and negotiations
ü Managers who understand the role of emotions and moods will significantly improve their
ability to explain and predict their coworkers’ and employees’ behavior

Chapter 5: Personality and Values

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:


1. Learn personality, describe how it is measured, and explain the factors that determine
an individual’s personality.
2. Know the key traits in the Big Five personality model.
3. Understand how the Big Five traits predict behavior at work.
4. Know the Myers-Briggs Type Indicator (MBTI) personality framework and assess its
strengths and weaknesses.
5. Learn other personality traits relevant to OB.
6. Know values, demonstrate the importance of values
7. Understand generational differences in values and identify the dominant values in
today’s workforce.

II. INTRODUCTION

Personality and values are major shapers of behavior. In order for managers to predict
behavior, they must know the personalities of those who work for them. The chapter starts out
with a review of the research on personality and its relationship to behavior and ends by describing
how values shape many of our work-related behaviors.

III. LESSON PROPER

PERSONALITY

As June Peterson’s dilemma illustrates, different people behave differently in their everyday lives.
Personality, or personal style, is a very complex subject, yet in our daily lives we use trait
adjectives such as warm, aggressive, and easygoing to describe people’s behavior. Personality
is the word commonly used to describe an individual’s collection (total person) of such behavioral
traits or characteristics. Personal style or personality is a relatively stable set of traits that aids in
explaining and predicting individual behavior. As noted, individuals are all different, yet similar, in
many ways.

In this section you will learn about personality and the personality classifications of Type A and
Type B; locus of control; the Big Five Model of Personality; and the MBTI. Throughout this chapter
and book, you will gain a better understanding of your personality traits, which will help explain
why you and others do the things you do (behavior). Employers are checking social media sites,
such as Facebook, to get a feel for job candidates’ personality.

Personality Development and Classification Methods

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Why are some people outgoing and others shy, some loud and others quiet, some aggressive
and others passive? This list of behaviors is made up of individual traits. Traits are distinguishing
personal characteristics. Personality development is based on genetics and environmental
factors. The genes you received before you were born influence your personality traits. Your
family, friends, school, and work also influence your personality. In short, personality is the sum
of genetics and a lifetime of learning. Personality traits, however, can be changed, with work. For
example, people who are shy can become more outgoing.

Type A, Type B, and Locus of Control

Type A and Type B Personalities Let’s begin here with the simple two-dimensional method
Type A, Type B. A Type A personality is characterized as fast moving, hard driving, time
conscious, competitive, impatient, and preoccupied with work. Because a Type B personality is
the opposite of Type A, often it is called laid-back or easygoing.

The Big Five Model of Personality

Let’s begin by completing Self-Assessment Exercise 1-2 to determine your personality profile.
The purpose of the Big Five model is to reliably categorize most, if not all, of the traits that you
would use to describe someone. The model is organized into five dimensions, and each
dimension includes multiple traits. The Big Five Model of Personality categorizes traits into the
dimensions of surgency, agreeableness, adjustment, conscientiousness, and openness to
experience. The dimensions are listed and described below. Note, however, that the five
dimensions are sometimes published with slightly different descriptor names.

Surgency How strong is your desire to be a leader? The surgency personality dimension includes
leadership and extroversion traits. (1) People strong in leadership, more commonly called
dominance, personality traits want to be in charge. They are energetic, assertive, active, and
ambitious, with an interest in getting ahead and leading through competing and influencing. The
late Steve Jobs had a high surgency personality type. People weak in surgency want to be
followers, and they don’t like to compete or influence. (2) Extroversion is on a continuum between
being an extrovert and being an introvert. Extroverts are outgoing, sociable, and gregarious, like
to meet new people, and are willing to confront others, whereas introverts are shy.

Agreeableness How important is having good relationships to you? Unlike the surgency behavior
trait of wanting to get ahead of others, the agreeableness personality dimension includes traits
related to getting along with people. Agreeable personality behavior is strong when someone is
called warm, easy-going, courteous, good-natured, cooperative, tolerant, compassionate,
friendly, and sociable; it is weak when someone is called cold, difficult, uncompassionate,
unfriendly, and unsociable. Strong agreeable personality types are sociable, spend most of their
time with other people, and have lots of friends.

Adjustment How emotionally stable are you? The adjustment personality dimension includes
traits related to emotional stability. Adjustment is on a continuum between being emotionally
stable and being emotionally unstable. Stability refers to self-control, calmness—good under
pressure, relaxed, secure, and positive—and a willingness to praise others. Being emotionally
unstable means being out of control—poor under pressure, nervous, insecure, moody,
depressed, angry, and negative and quick to criticize others. Bill Gates is said to be more in

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control of his emotions than Steve Jobs, who was sometimes emotional. People with poor
adjustment are often called narcissists and tend to cause problems.

Conscientiousness How strong is your desire to be successful? The conscientiousness


personality dimension includes traits related to achievement. Conscientiousness is on a
continuum between being responsible and dependable and being irresponsible and
undependable. Other traits of high conscientiousness include persistence, credibility, conformity,
and organization. This trait is characterized as the willingness to work hard and put in extra time
and effort to accomplish goals to achieve success. Conscientiousness is a good predictor of job
success.

Openness to Experience How willing are you to change and try new things? The openness to
experience personality dimension includes traits related to being willing to change and try new
things. People strong in openness to experience are imaginative, intellectual, open-minded,
autonomous, and creative, they seek change, and they are willing to try new things, while those
who are weak in this dimension avoid change and new things.

Personality Profiles

Personality profiles identify individual strong and weak traits. Defining your personality can help
you find the right career. Students completing Self-Assessment Exercise 1-2 tend to have a range
of scores for the five dimensions. Review your personality profile. Do you have high scores (strong
traits) and low scores (weak traits) on some dimensions? Think about the people you enjoy being
with the most at school and work. Are their personalities similar to or different from yours?

The Big Five Model of Personality Has Universal Applications Across Cultures

Studies have shown that people from Asian, Western European, Middle Eastern, Eastern
European, and North and South American cultures seem to exhibit the same five personality
dimensions. However, some cultures do place varying importance on different personality
dimensions. Overall, the best predictor of job success on a global basis is the conscientiousness
dimension.

Using Behavior That Matches the Big Five Personality Types

We need to be able to work well with people that have different personalities than ours. To improve
our human relations, it is helpful for us to adjust our behavior based on the other person’s
personality type, especially our bosses, because they evaluate our performance, which affects
our career. That subject is what this section is all about.

1. Determine Personality Type — First, we have to understand the personality types and
determine an individual’s personality profile. As you know, people are complex, and identifying a
person’s personality type is not always easy, especially when they are between the two ends of
the personality type continuum. However, understanding personality can help you understand
and predict behavior, human relations, and performance in a given situation.

2. Match Personality Type—Next, we select the behavior we will use to match the other
person’s personality type. How to deal with each personality type is presented below.

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Surgency

Extroverts: They like to talk, so be talkative while showing an interest in them and talking
about things they are interested in. If you are not really talkative, ask them questions to get
them to do the talking.

Introverts: Take it slow. Be laid-back and don’t pressure them, but try to draw them out by
asking questions they can easily answer. Ask for ideas and opinions. Don’t worry about
moments of silence; introverts often like to think before they respond.

Agreeableness

Agreeable: They are easy to get along with, so be friendly and supportive of them.
However, remember that they don’t tend to disagree with you to your face, so don’t assume
that just because they don’t disagree with you, it means that they actually do agree with
you. Asking direct questions helps, and be sure to watch for nonverbal behavior that does
not match a verbal statement of “I agree with you.”

Disagreeable: Try not to do things that will get them upset, but don’t put up with
mistreatment; be assertive (you will learn how in Chapters). Be patient and tolerant, because
their behavior is sometimes defensive to keep them from being hurt, but inside, they do want
friends. So keep being friendly and trying to win them over.

Adjustment

Emotionally stable: They tend to be easy to get along with.

Emotionally unstable: They tend to be highly emotional and unpredictable, so try to be


calm yourself and keep them calm by being supportive while showing concern for them.
Also, follow the guidelines of dealing with disagreeable types. You will learn how to deal
with emotions and emotional people in Chapter 4.

Conscientiousness

Conscientious: They will come through for you, so don’t nag; be supportive and thank them
when the task is done.

Unconscientious: They tend to need prompting to complete tasks. Set clear deadlines and
follow up regularly; express appreciation for progress and task completion.

Open to Experience

Open: They like change and trying new things. Focus on sharing information, ideas, and
creative problem solving.

Closed: They don’t want change and tend to focus on the short-term without considering
how things will be better in the long-term if they change now. Focus on telling them what

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they have to lose and how they will benefit from the change, and use facts and figures to
support the need for change. You will learn how to overcome resistance to change in other
chapters.

The Myers-Briggs Type Indicator (MBTI)

Our fourth, and most complex, personality classification method is the Myers-Briggs Type
Indicator (MBTI). The MBTI model of personality identifies your personality preferences. It is
based on your four preferences (or inclinations) for certain ways of thinking and behaving.

Big Five Traits and OB Trait Activation Theory

BIG FIVE / FIVE FACTOR MODEL a categorized scheme that describes personality developed
by McRae and Costa in 1992. Five universal and widely agreed upon dimensions of personality
and described using its most positive traits in acronym O.C.E.A.N:
O– OPENNESS to Experience – curiosity, interest, imagination and creativity to new ideas.
C– CONSCIENTIOUSNESS – planning, organizing, hard-working, controlling, persevering, and
punctuality.
E– EXTRAVERSION – sociable, talkative, active, outgoing, and fun-loving.
A– AGREEABLENESS – friendly, warm, trusting, generous, and kind-hearted.
N– NEUROTICISM (Emotional Stability) –taps a person’s ability to withstand stress. People with
positive emotional stability tend to be calm, relaxed and comfortable. Those with high negative
scores tend to be nervous, anxious, depressed and insecure.

Other Personality Traits Relevant to OB


✓ Core self-evaluation - People with positive core self-evaluation like themselves and see
themselves as capable and effective in the workplace.
✓ Self-monitoring - Adjusts behavior to meet external, situational factors. High monitors are
more likely to become leaders in the workplace.
✓ Risk-taking - People differ in their willingness to take chances, a quality that affects how
much time and information managers make to make a decision.
✓ Proactive personality
- Identifies opportunities, shows initiative, takes action, and perseveres

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VALUES
In this section, we cover individual values and how they are related to, yet different from,
attitudes. A person’s values are the things that have worth for or are important to the individual,
and a value system is the set of standards by which the individual lives. Values concern what
“should be”; they influence the choices we make among alternative behaviors. Values direct the
form that motivated behavior will take. For example, if you have three job offers, you will select
the one that is of the highest value to you.
Values help shape your attitudes. When something is of value to you, you tend to have positive
attitudes toward it. What is of value to you? Take time and identify what is truly important to you,
and be sure you devote time to your values. Complete Self-Assessment Exercise 1-4 to identify
your personal values in eight broad areas of life.
Values are developed in much the same way as attitudes. However, values are more
stable than attitudes. Attitudes reflect multiple, often changing, opinions. Values about some
things do change, but the process is usually slower than a change in attitude. Society influences
our value system. What was considered unacceptable in the past may become commonplace in
the future, or vice versa. For example, the percentage of smokers and the social acceptance of
smoking have decreased over the years. Value changes over the years are often a major part of
what is referred to as the generation gap.
Getting to know people and understanding their values can improve human relations. For
example, if Juan knows that Carla has great respect for the president, he can avoid making
negative comments about the president in front of her.
Discussions over value issues, such as abortion and homosexuality, rarely lead to
changes in others’ values. They usually just end in arguments. Therefore, you should try to be
open-minded about others’ values and avoid arguments that will only hurt human relations.

Spirituality in the Workplace


People want to be happy. Many people are seeking spirituality as a means of fullfillment
in their lives. Dr. Edward Wilson, Harvard University professor and two-time Pulitzer Prize–
winning expert on human nature, says, “I believe the search for spirituality is going to be one of
the major historical episodes of the 21st century.” NBA 11-ring- winning coach Phil Jackson says:
“Much of my outlook in life is from a spiritual direction.”

Defining Spirituality in the Workplace


Spirituality in the workplace is about people seeing their work as a spiritual path, as an
opportunity to grow personally and to contribute to society in a meaningful way. It is about learning
to be more caring and compassionate with fellow employees, with bosses, with subordinates, and
with customers. It is about having integrity, being true to oneself, and telling the truth to others.
Spirituality in the workplace can refer to an individual’s attempts to live his or her values more fully
in the workplace. Or it can refer to the way’s organizations structure themselves to support the
spiritual growth of employees. In the final analysis, your understanding of spirit and of spirituality
in the workplace is a very individual and personal matter.

Guidelines for Leading from a Spiritual Perspective Here are five spiritual principles that have
been useful in personal and professional development:
1. Know thyself. All spiritual growth processes incorporate the principle of self- awareness.
2. Act with authenticity. Be yourself.
3. Respect and honor the beliefs of others. Be open to other’s beliefs and values.

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4. Be as trusting as you can be. This means trusting yourself and that there is a Higher
Power in your life and that if you ask, you will receive guidance on important issues.
5. Maintain a spiritual practice. Examples include spending time in nature, attending
religious services, meditating, praying, and reading inspirational literature.

Secular institutional research has found that during moments of anger and distress,
turning to prayer or meditation, encouraged in nearly all religions, diminishes the harmful effects
of negative emotions and stress. Also, people who attend religious services regularly enjoy
betterthan-average health and wealth, have better marriages, and are happier. One survey
reported that the majority of Americans pray.
By implementing the ideas presented in this chapter, you can develop positive attitudes and a
more positive self-concept, as well as clarify your values. Begin today.

Still on VALUES:
Rokeach Value Survey (RVS)

❖ Terminal values: desirable end-states of existence Goals that a person would like
to achieve during his or her lifetime

❖ Instrumental values: preferable modes of behavior or means of achieving the


terminal values

Terminal and Instrumental Values in the RVS

Terminal Values Instrumental Values

A comfortable life (a prosperous life) Ambitious (hardworking, aspiring)

Equality (brotherhood, equal Responsible(dependable, reliable)


opportunity for all)

Freedom (independence, Helpful (working for the welfare of


free choice) others)

Happiness (contentedness) Courageous (standing up for your


beliefs)

Self-respect Honest (sincere, truthful)

❖ Generational Values

Dominant Work Values


Cohort/Generation Entered Approx.
s Workforce Current Age

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1950’s or Hardworking, conservative,


Veterans early conforming; loyalty to the
(Traditionali 1960’s 65+ organization
sts)

Boomers Mid-40’s Success, achievement,


1965-
(Baby to mid- ambition, dislike of authority;
1985
Boomers) 60’s loyalty to career

Work/life balance,
Late 20’s team oriented, dislike of
1985-
Xers (Gen X) to early rules; loyalty to relationships
2000
40’s

Confident, financial success,


self-reliant but team-oriented;
Nexters loyalty to both self and
2000presen relationships
(Gen Y)/ Under 30
t
Millennials

Person-Organization Fit
This idea can be further linked to the workplace by looking at person-organization fit. The
employee’s personality needs to fit with the organizational culture. When employees find
organizations that match their values, they are more likely to be selected and correspondingly be
more satisfied with their work. The big five personality types are often helpful in matching the
individuals with organizational culture.

International Values
There are global implications to personality and values in the workplace. Frameworks
such as the Big Five are transferable across cultures; in fact, it has been used worldwide.
However, the applicability is higher in some cultures than others. Values, on the other hand, differ
to a great degree across cultures.

Hofstede’s Framework for Assessing Cultures Five


factors:
1. Power Distance
2. Individualism vs. Collectivism
3. Masculinity vs. Femininity
4. Uncertainty Avoidance
5. Long-term vs. Short-term Orientation

Geert Hofstede developed a framework for assessing culture. He breaks up his


framework of understanding into five value dimensions: power distance, individualism vs.
collectivism, masculinity vs. femininity, uncertainty avoidance, and long-term vs. short-
term orientation.

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The GLOBE, as discussed earlier, is also helpful in framing differences between


cultures. Global Leadership and Organizational Behavior Effectiveness Ongoing study
with nine factors:

Assertiveness Individualism/ collectivism


Future orientation In-group collectivism
Gender differentiation Performance orientation
Uncertainty avoidance Humane orientation
Power distance

ETHICS
As related to values, ethics refers to the moral standard of right and wrong behavior.
Business is often viewed as being unethical, and today more businesses are focusing on ensuring
ethical business practices. In this section, we discuss whether ethical behavior does pay, how
personality and attitudes affect ethical behavior, how people justify unethical behavior, some
ethical guidelines, the stakeholders’ approach to ethics, and global ethics.
Does Ethical Behavior Pay?
Generally, the answer is yes. Ethical or unethical behavior is linked directly to bottom-line
performance. Organizational scandals have become too common. Greed and materialism have
led to distrust, if not disdain, for business leaders. An ethical scan- dal can lead to having a hard
time attracting customers, investors, and employees and may lead to lawsuits, financial losses
through settlements and sales declines, increases in the cost of capital, market share decline,
loss of network partners, and other costs associated with a negative reputation.
On a personal level, it may be incredibly tempting to be unethical, but the long- term
consequences can impose dramatic costs. Lying is common, but it’s generally best not to lie.
Being truthful can enhance your well-being, as honest people have fewer mental health and
physical complaints.
How Personality Traits and Attitudes, Moral Development, and the Situation Affect Ethical
Behavior
Personality Traits and Attitudes The use of ethical behavior is related to our individual
needs and personality traits. Leaders with surgency dominance personality traits have two
choices: to use power for personal benefit or to help others. To gain power and to be conscientious
with high achievement, some people will use unethical behavior. An agreeableness personality,
sensitive to others, can lead to following the crowd in either ethical or unethical behavior.
Emotionally unstable people and those with an external locus of control are more likely to use
unethical behavior. People open to new experiences are often ethical.
People with positive attitudes about ethics tend to be more ethical than those with negative or
weak attitudes about ethics. The firm’s internal ethical context can help or hurt employee attitudes
and behavior—being ethical or unethical.
When you complete Self-Assessment Exercise 1-6 at the end of this section, you will have a
better understanding of how your personality affects your ethical behavior. But before that,
complete Self-Assessment Exercise 1-5 to determine how ethical your behavior is.
Moral Development A second factor affecting ethical behavior is moral development,
which refers to understanding right from wrong and choosing to do the right thing. Our ability to
make ethical decisions is related to our level of moral development when we face moral issues.
There are three levels of personal moral development, as discussed in Exhibit 1.1. Although most
of us have the ability to reach this third level, only about 20 percent of people actually do reach it.

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Most people behave at the second level, conventional. How do you handle peer pressure? What
level of moral development have you attained? What can you do to further develop your ethical
behavior?
The Situation People respond to “incentives” and can often be manipulated to do the
ethical or unethical thing based on the situation’s circumstances. Highly competitive and
unsupervised situations increase the odds of unethical behavior. Unethical behavior occurs more
often when there is no formal ethics policy or code of ethics and when unethical behavior is not
punished. Unethical behavior is especially prevalent when it is rewarded. People are also less
likely to report unethical behavior (blow the whistle) when they perceive the violation as not being
serious and when the violator is a friend.
To tie together the three factors affecting ethical behavior, you need to realize that
personality traits and attitudes and your moral development interact with the situa- tion to
determine if you will use ethical or unethical behavior. In this chapter we use the individual level
of analysis: Am I ethical? How can I improve my ethical behavior? At the organizational level,
many firms offer training programs and develop codes of

Exhibit 1.1 Levels of Moral Development

Level 3: Postconventional
Behavior is motivated by universal principles of right and wrong, regardless of the expectations
of the leader or group. One seeks to balance the concerns for self with those of others and the
common good. At the risk of social rejection, economic loss, and physical punishment, the
individual will follow ethical principles even if they violate the law (Martin Luther King, Jr., for
example, broke what he considered unjust laws and spent time in jail seeking universal dignity
and justice).
“I don’t lie to customers because it is wrong.”
The common leadership style is visionary and committed to serving others and a higher cause
while empowering followers to reach this level.
Level 2: Conventional
Living up to expectations of acceptable behavior defined by others motivates behavior to fulfill
duties and obligations. It is common for followers to copy the behavior of the leaders and group.
If the group (this could be society, an organization, or a department) accepts lying, cheating, and
stealing when dealing with customers, suppliers, the government, or competitors, so will the
individual. On the other hand, if these behaviors are not accepted, the individual will not do them
either. Peer pressure is used to enforce group norms. “I lie to customers because the other sales
reps do it too.”
It is common for lower-level managers to use a leadership style similar to that of the higher-level
managers.
Level 1: Preconventional
Self-interest motivates behavior to meet one’s own needs and to gain rewards while following
rules and being obedient to authority to avoid punishment.
“I lie to customers to sell more products and get higher commission checks.”
The common leadership style is autocratic toward others while using one’s position for personal
advantage.
Source: Based on Lawrence Kohlberg, “Moral Stages and Moralization: The
CognitiveDevelopment Approach,” in Moral Development and Behavior: Theory, Research, and
Social Issues, ed. Thomas Likona (Austin, TX: Holt, Rinehart and Winston, 1976), pp. 31–53.

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IV. ACTIVITY / EXERCISES

Teamwork. As individuals, search for “Free Holland Career Model Assessment” on the
web and take one of the assessments. Get the list of jobs you are most likely to enjoy doing and
those you are least likely to enjoy. Bring your results into the team.
As a team, find out which team members are currently in jobs (or if they are not working
now, were in jobs) that Holland’s assessment indicates they should enjoy and which are
in jobs that the assessment says they would not enjoy. Determine:
a. How accurately does the assessment match your own experiences?
b. How well do your degree fields match the suggested careers?
c. What is the group’s opinion of the personality field in which each person was
placed? How accurately does it describe each of you?

Compile your results and share them with the class.

V. ASSESSMENT

1. Describe the two most common methods of assessing a personality. Which is likely to be
the most accurate? Why?
2. Describe the Myers-Briggs Type Indicator personality framework. Based on the
framework, what would you think was your personality type? Why?
3. Identify and describe the five traits of the Big Five personality model.
4. What are two attributes of values? Why are values important in OB?
5. Describe the relationship between terminal and instrumental values.

VI. SUMMARY

A. Personality. Managers need to evaluate the job, the work group, and the organization in
order to determine what the optimum Big Five personality type would be for a new
employee. The MBTI could be helpful in training and development.
B. Values. Values strongly influence attitudes, behaviors, and perceptions, so knowing a
person’s values may help improve prediction of behavior.
C. Additionally, matching an individual’s values to organizational culture can result in positive
organizational outcomes.

Chapter 6: Perception and Individual Decision Making

I. LEARNING OBJECTIVES/OUTCOMES

At the end of this lesson, you should be able to:

1. Understand perception and the factors that influence it and its link to decision
making;
2. Learn how individual differences and organizational constraints affect decision
making; and
3. Becoming a great decision maker in the workplace.

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II. INTRODUCTION

Perception is a process by which individuals organize and interpret their sensory


impressions in order to give meaning to their environment. In relation to decision making process,
perception affects our way of thinking on how we deal with situations like making a decision. We
may make decisions based on our experiences because there are some that has already the
knowledge on how they will respond to that situation. There are also some that they based their
decision making skills on their interest or their motives with it. Perception affects our decision
making process because in order to make an accurate decision, you need to think properly if this
one will work or not. There are a lot of things that should be consider in making a decision. One
thing that makes decision making difficult is our perception to what will be the outcome after
making this decision.

III. LESSON PROPER

PERCEPTION - A process by which individuals organize and interpret their sensory


impressions in order to give meaning to their environment. The world as it is perceived is the
world that is behaviorally important

Factors Influencing Perception


PERSON PERCEPTION:
Perceiver
Attribution Theory- Suggests that perceivers try to “attribute” the
Situation Target
observed behavior to a type of cause:
Internal – behavior is believed to be under the personal control of
Perception the individual
External – the person is forced into the behavior by outside
events/causes

Determinants of Attribution ü Distinctiveness– whether an individual displays different


behavior in different situations (the uniqueness of the act)
ü Consensus – does everyone who faces a similar situation respond in the same way
as the individual did ü Consistency– does the person respond the same way over
time
This chart looks at the elements of the attribution
theory and helps us to make the connection
between external or internal driven factors.

Attribution Errors

• Fundamental attribution error: Tendency


to underestimate the influence of external factors
and overestimate that of internal factors.
• Self-Serving Bias: Occurs when individuals

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overestimate their own (internal) influence on successes and overestimate the external
influences on their failures. The basic process of attribution applies across cultures, but
Western cultures tend to be more individualist, while Asian cultures are more group oriented

SHORTCUTS USED IN JUDGING OTHERS

ü Selective Perception: A perceptual filtering process based on interests, background,


and attitude.
ü Halo Effect: Drawing a general impression based on a single characteristic ü
Contrast Effects: Our reaction is influenced by others we have recently encountered
(the context of the observation) ü Stereotyping: Judging someone on the basis of
the perception of the group to which they belong

THE LINK BETWEEN PERCEPTION AND DECISION MAKING

In organizational behavior we are concerned with how decisions are made and
perceptions play a significant role in that process. Often decision making occurs as a reaction
to a problem or a perceived discrepancy between the way things are and the way we would
like them to be. A decision is then made based on various alternatives that have been
developed from the data collected. Perception influences this entire process from problem
recognition to data selection to alternative chosen.

q Rational Decision-Making Model


This model is seldom actually used: it’s more of a goal than a practical method. This model
assumes a perfect world in order to make decisions. It assumes that there is complete
information, that every option has been identified and that there is a maximum payoff.
1. Define the problem
2. Identify the decision criteria
3. Allocate weights to the criteria
4. Develop the alternatives
5. Evaluate the alternatives
6. Select the best alternative
q Bounded Rationality
The limited information-processing capability of human beings makes it impossible to
assimilate and understand all the information necessary to optimize. People seek solutions that
are satisfactory and sufficient, rather than optimal (they “satisfice”). Bounded rationality is
constructing simplified models that extract the essential features from problems without capturing
all their complexity

Simpler than rational decision making, decision making under bounded rationality is composed
of three steps:
1. Limited search for criteria and alternatives – familiar criteria and easily found
alternatives
2. Limited review of alternatives – focus on alternatives, similar to those already in
effect
3. Satisficing – selecting the first alternative that is “good enough” q Intuitive
Decision Making
The third model is based on intuition. This is the non-conscious process that occurs as a
result of experiences that result in quick decisions.

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1. Increases with experience


2. Can be a powerful complement to rational analysis in decision making

Common Biases and Errors


1. Overconfidence Bias
As managers and employees become more knowledgeable about an issue, the less
likely they are to display overconfidence
2. Anchoring Bias
A tendency to fixate on initial information and fail to adequately adjust for subsequent
information
3. Confirmation Bias
Seeking out information that reaffirms our past choices and discounting information
that contradicts past judgments
4. Availability Bias
Basing judgments on information that is readily available
5. Escalation of Commitment
Staying with a decision even when there is clear evidence that it is wrong
6. Risk Aversion
Preferring a sure thing over a risky outcome
7. Hindsight Bias
Believing falsely that we could have predicted the outcome of an event after that
outcome is already known

Organizational Constraints on Decision Making


There are many organizational constraints to good decision making that create deviations
from the rational model defined earlier. Managers shape their decisions on performance
evaluations, reward systems, and formal regulations. They also base decisions on
systemimposed time constraints and historical precedents. All these factors may influence
the decisions that are made.

Ethical Frameworks for Decision Making


ü Utilitarianism - Provide the greatest good for the greatest number
ü Rights- Make decisions consistent with fundamental liberties and privileges
ü Justice- Impose and enforce rules fairly and impartially so that there is equal distribution of
benefits and costs

CREATIVITY IN ORGANIZATIONS
Better decisions are those that incorporate novel and useful ideas, or creativity. An organization
will tend to make better decisions when creative people are involved in the process. So, it is
important to identify people who have that creative potential. Some of the methods and theories
identified in earlier chapters can help in this process. For example, those who score high in
openness to experience tend to be more creative.

CREATIVITY - The ability to produce novel and useful ideas Helps


people:
• See problems others can’t see
• Better understand the problem
• Identify all viable alternatives

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• Identify alternatives that aren’t readily apparent

Three-Stage Model of Creativity


Creative behavior occurs in four steps, each of which
leads to the next. Problem formulation, information
gathering, idea generation, and idea evaluation.
Steps:
1. Problem formulation: identify a problem or
opportunity that requires a solution as yet unknown
2. Information gathering possible solutions incubate in
an individual’s mind
3. Idea generation: develop possible solutions from
relevant information and knowledge
4. Idea evaluation: evaluate potential solutions and identify the best one Cause of creative
behavior:
ü Creative potential- Expertise is the single most important predictor of creative
potential
ü Creative environment- Motivation and Rewards and recognition

Off-the-wall solutions are creative only if they help solve the problem. Creative ideas do
not implement themselves; translating them into creative outcomes is a social process that
requires utilizing other concepts addressed in the text.

IV. ACTIVITY: International OB

East–West Differences: It’s Perceptual


1. Divide into groups of three to five people or Individual.
2. View the ad as an individual or as a group. http://www.youtube.com/watch?v=--BwPz574MA
3. Discuss in the group how differences in culture might result in differences of interpretation.
4. If you decide there is a possibility of misinterpretation, what would you suggest as a solution to
meet the advertiser’s goals while ensuring more similar interpretations globally?
5. Present your conclusion to the class to open discussion to each group’s interpretations.

V. ASSESSMENT

1-2.) Perception is a process by which individuals______________ and ______________ their


sensory impressions in order to give meaning to their environment.

3.) Stereotyping: _________________ someone on the basis of the perception of the group
to which they belong.
4, 5 and 6.) Determinants of Attribution

7.) Internal – behavior is believed to be under the _________________ of the individual.

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8.) External – the person is forced into the behavior by_____________ events/causes.

9 and 10. Three Stages of Creativity

VI. SUMMARY

Behavior follows perception, so to influence employee behavior at work, assess how


employees perceive their work. As individuals have inherent biases in their perceptions and
corresponding decision making. Make a better decision by recognizing perceptual biases and
decision-making errors we tend to commit because biases can be helpful if used effectively.
Adjust your decision-making approach to the national culture you’re operating in and to the criteria
your organization values. Combine rational analysis with intuition. Try to enhance your creativity
as it aids in arriving at better decisions as it allows for new perspectives and ideas.

Chapter 7: Motivation Concepts

I. LEARNING OBJECTIVES/OUTCOMES

At the end of this lesson, you should be able to:

1. Understand the reasons why Filipino workers take on the daily challenges of their work
and how organizations respond in return;
2. Learn the different components that make up an employer-employee relationship and
how both sides contribute to sustaining it; and
3. Learn more about the different forms of organizational rewards which are cornerstones
of motivation in the workplace.

II. INTRODUCTION

In 2013, 38.5 million or nearly 60% of Filipinos of working age were employed (Philippine
Statistics Office 2013). Among these three in every five employed persons are full-time workers
while one in every five seek more hours of work. For the most part, work is a means to satisfy
the requirements of everyday living and maintaining a lifestyle (Henderson 2000). Enriquez
(1993) said that work also gives a person a sense of identity and provides opportunities to make
friends and expand one’s social network. On a more abstract level, some people even find a
more purposeful and meaningful life through work (Tiglao-Torres 1990).

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III. LESSON PROPER

Understanding Filipino Work Motivation


In understanding the motivations of Filipino employees, it is important to consider what is
important in their lives as this may guide their work activities and goals.
Sense of familialism (pagkakamag-anak) – a central feature in Filipino culture that is
reflected in the different interactions that they engage in. The family interest is foremost in making
decisions on the type of work that one engages in; thus, Filipino overseas workers may give more
importance to the economic gain for their families over their personal feelings of separation. The
benefits of the financial rewards are contextualized in terms of how these will improve the
conditions of the family and contribute to their social mobility.
The tenacity to improve one’s self and their condition in society reflects the
Filipino’s pagsusumikap – a valued social trait (Jocano 2001). One is expected to work hard
to improve their lot. The be perceived otherwise is a stigma and is avoided in Filipino society.
This desire to further one’s self (kaunlaran) applies even if it means leaving the country to seek
this advancement (Jocano 2001).
More recently, a research of Ilagan et al. in 2014 identified several motivating factors of
Filipino employees to come up with Filipino Needs Theory of Motivation:

1. Job related – needs concern those that are specific to the worker’s immediate tasks
(e.g., co-worker relations)
2. Organization related – considers the larger working environment (e.g. being a role
model to others)
3. Family related – needs include education for family members and having good pay
and benefits
4. Career related – needs are those that contribute to their professional development
Total Rewards for Filipino Employees
The presence of both intrinsic and extrinsic rewards in an organization underlies the
concept of total rewards. Total rewards refer to all the rewards that the employer gives to the
employee, which include all forms of financial returns, benefits, tangible services, and intangible
returns that employees receive as part of an employment relationship (Milkovich et.al 2014). Two
main parts of Employee Compensation:

1. FINANCIAL REMUNERATION or CASH


Base pay – refers to the cash compensation that an employer pays for the work
performed.
Merit pay – is a performance-based increment to the base pay which can substantially
increase it in the long run.
Individual incentives – are given on the achievement of objective, pre-established
performance standards such as commissions.

2. INDIRECT FINANCIAL COMPENSATION


Pay for time not worked, services and protection programs given to the employees that
are either mandated by the government or at the discretion of the company (Martires
1988).

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BENEFITS
Government-mandated benefits: social security, thirteenth month pay, paid
vacation/holidays, retirement benefit, housing benefit, medical care and paternity leave.
Additional benefits: access to medical service, allowance for rice and groceries, life
insurance, savings plan, training programs, work life balance programs, and scholarships.

FLEXIBLE BENEFITS
The study of Martires (1988) says that a growing trend in the crafting of benefits program in an
organization is the flexible benefits also known as the cafeteria plan. For a specified amount, an
employee is given freedom to choose the benefits he or she would like to avail of from a list
provided by the company – turo-turo or pointing style.
The FLEXIBLE BENEFIT program gives the organization a better control on cost while
making the employees more aware of the benefits that they receive (Watson Wyatt Worldwide
2009).
This program adheres to the understanding that different rewards will motivate different
employees. For instance, a working mother may be more interested in health coverage for
her family, while a single employee may be more interested on self-development activities
such as a scholarship or gym membership.
Ensuring top performance from Filipino workers therefore requires an understanding of their
culture and beliefs. Below are some ways to enhance the motivation of Filipino employees:

1. Identify the most pressing needs of employees. It is important for organizations to


understand the needs of their employees and the extent to which they believe these
needs are being met. Such data can guide the development of programs, policies and
interventions.
2. Introduce challenging activities where the employee can potentially learn a new
skill or acquire a new set of knowledge. Engaging the employees in tasks that
maximize their potential can add to their interest at work. Not only would this contribute
to their growth but this can also reflect the organization’s concern on their continued
financial sustainability.
3. Give meaningful rewards. Rewards are most appreciated when it is perceived as
valuable. Taking the extra effort to identify which rewards are most needed by the
employees will ensure that it generates the most impact. Filipino workers in general,
place a high value on cash (Asundion 2000), travel, and recognition as powerful
motivators for them to do productive work (Yao, Franco and Hechanova 2005).
4. Respect the cultural norms and behavior that they have and use these as a
vehicle to get through them. Filipinos are known to be family-oriented (Medina
2001). Work activities that have the potential to conflict with this aspect of the person,
such as requiring work when they are supposed to spend time with the family, may not
be received favorably.
5. Harness Congenial Relationships. An employer should harness the congenial
relationships in the office that can facilitate productive collaboration on work activities.
6. Build relationships with leaders and employees. Leaders need to take the time
and effort to know their employees – their lives, dreams and plans for the future.
Addressing their need for belongingness can make them feel cared for which leads to
a feeling of oneness with the organization.
EARLY THEORIES OF MOTIVATION

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There are a number of theories of motivation that help us gain a better understanding of
the concept. Some of the earlier theories are not entirely valid anymore but they are still used by
many managers.

• Maslow’s Hierarchy of Needs Theory


• McGregor’s Theory X and Theory Y
• Herzberg’s Two-Factor (Motivation-Hygiene) Theory
• McClelland’s Theory of Needs (Three Needs Theory)

The first theory was developed by Abraham Maslow in the


1950s. His theory states that with every individual there is a
hierarchy of five needs. As each need is met or satisfied the
next need becomes dominant. His theory posits that
individuals are stuck in their existing need level until it is
satisfied and then they can move on to the next level. For
example, until their safety needs are met they will not be able
to move on to the social level. The organization of these need
levels may vary across cultures.

Douglas McGregor added to the motivation work done in the


1950s and developed the theory called Theory X, Theory Y.
He believed that there are two distinct views of human beings
that managers hold. The Theory X view is basically negative
and holds that workers have little ambition, dislike work, and Theory X Theory Y
avoid responsibility. The Theory Y view is in contrast to X and
sets forth that workers tend to be self-directed, enjoy work,
and accept responsibility. Managers will modify their behavior
toward employees based on what view they hold about them.

Herzberg’s Two-Factor theory is another one of the earlier


developed theories. This theory sets forth that satisfaction
and dissatisfaction are not opposites, but two separate ideas.
There are a set of factors that when present will help to avoid
dissatisfaction in workers. This group is called the hygiene
factors and includes such things as salary, working conditions,
and company policies. There is another set of factors that
when present will help to cause satisfaction in workers. This
group is called motivators and includes things such as growth,
responsibility, and achievement. These sets are distinct and
the presence of hygiene factors does not cause satisfaction;
it just helps avoid dissatisfaction.
The final earlier theory of needs we will look at is McClelland’s need theory. He bases
his theory on the idea that people are motivated in the workplace by three main needs. The first
need is the need for achievement or the drive to excel in relation to a set of defined standards.
The second is the need for power, to make others behave in a way that they would not have
behaved otherwise. The final need addressed in this theory is the need for affiliation. Affiliation
looks at the relationship aspect and the desire for close relationships. People will have varying
levels of these needs, which makes this theory difficult to measure.

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CONTEMPORARY THEORIES OF MOTIVATION

v Self-determination theory: People prefer to have control over their actions so when they
feel they are forced to do something they previously enjoyed, motivation will decrease

• Cognitive evaluation theory: Proposes that the introduction of extrinsic rewards


for work (pay) that was previously intrinsically rewarding tends to decrease overall
motivation
• Self-concordance: considers how strongly people’s reasons for pursuing goals
are consistent with their interests and core values

v Goal-Setting Theory- Edwin Locke developed what is called the goal-setting theory. The
idea behind this theory is that goals that are specific and effectively difficult can lead to
higher performance if they include self-generated feedback. A difficult goal will help the
individual to focus and direct attention as well as energize them to work harder. The
difficulty of the goal will increase persistence and force people to be more effective and
efficient.

v Self-efficacy theory- An individual’s belief that he or she is capable of performing a task


also known as social cognitive theory or social learning theory. Developed by Albert
Bandura. This theory is based on an individual’s belief that he or she is capable of
performing a task. This theory is a complement to the goal-setting theory, as it
incorporates goals into the process. Higher efficacy is related to greater confidence,
greater persistence in the face of difficulties, and responding to negative feedback by
working harder, not shutting down.

Self-efficacy increased by:


ü Enactive mastery: gain experience
ü Vicarious modeling: see someone else do the task
ü Verbal persuasion: someone convinces you that you have the skills ü Arousal: get
energized

v Equity Theory- Adam’s equity theory utilizes the perception theory that we looked at in
previous chapters. The idea is that employees compare their ratios of outcomes to inputs
of others they see as relevant. When they see the ratios as equal, there is a perceived
state of equity and no tension arises. However, when they perceive the ratios to be
unequal, they may experience anger or guilt depending on the result of the equity analysis,
and then tension can arise. This tension can motivate people to act in a way to bring the
situation into a more equitable state.

Equity theory suggests employees who perceive inequity will make one of six choices:
1. Change inputs 4. Distort perceptions of others
2. Change outcomes 5. Choose a different referent
3. Distort perceptions of self 6. Leave the field

Equity theory is popular in the United States because U.S. style reward systems assume that
employees are highly sensitive to equity in reward allocation. Research shows, however, that in
other cultures inputs and outputs may be valued differently. Managers need to determine what

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is considered “fair” in a particular culture. Managers need to be transparent, consistent, and


unbiased in their decision making.

v Expectancy Theory- The most commonly used and widely accepted theory of motivation
is Victor Vroom’s Expectancy Theory. This theory argues that the strength of a tendency
to act in a certain way is dependent on the strength of the expectation that they will receive
a given outcome and that the outcome is desired.

Employees are willing to work harder if they believe that their actions will get them an outcome
they desire. For example, employees are willing to work long and hard hours if they know that
they will be rewarded through promotion, recognition, or pay in response to their hard work

Three key relationships:


1. Effort-performance: perceived probability that exerting effort leads to successful
performance
2. Performance-reward: the belief that successful performance leads to desired
outcome
3. Rewards-personal goals: the attractiveness of organizational outcome (reward)
to the individual

IV. ACTIVITIES/EXERCISES

• Pick a company and find the most benefits information and list out those benefits. Estimate
the approximate worth of those benefits. Calculate the total worth of an entry-level job
(salary plus benefits).
• Talk to an adult about any company benefits he or she may have. Ask if this person had a
choice over any of the benefits and, if so, what influenced his or her final decisions about
the job and benefits.
• List at least three companies or organizations for which you would consider working. Go
online and search for the companies’ websites (or interview a local employer) to learn about
what employee benefits the company provides.
• What employee benefits are particularly important to you now? What additional benefits will
you want when considering future jobs?

V. ASSESSMENT
Answer the following:

1. Define motivation. How does this explain the behavior of a worker in the organization?
2. How does adopting a Total Rewards perspective benefit the employee and the
organization?
3. What are the advantages and pitfalls of using a flexible benefits program?

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VI. SUMMARY
I. IMPLICATIONS FOR MANAGERS
A. Make sure extrinsic rewards for employees are not viewed as coercive and recognize
the importance of intrinsic motivators that appeal to employees’ desires for autonomy,
relatedness, and competence.
B. Consider goal setting theory: Within reason, clear and difficult goals often lead to higher
levels of employee productivity.
C. In accordance with self-efficacy theory, efforts you make to help your employees feel
successful in completing tasks will result in their increased motivation.
D. As suggested by justice theory, ensure that employees feel fairly treated; sensitivity to
processes and interactions are particularly important when rewards are distributed
unequally.
E. Expectancy theory offers a partial means of enhancing employee productivity,
absenteeism, and turnover. Employees are more motivated to engage in behaviors they
think they can perform, and which in turn lead to valued rewards. II. KEEP IN MIND
A. Make goals specific and difficult.
B. Motivation can be increased by raising employee confidence in their own abilities
(selfefficacy).
C. Openly share information on allocation decisions, especially when the outcome is likely to
be viewed negatively.

Suggested Further Readings


Riggio, Ronald. 2013. Introduction to Industrial/Organizational Psychology. 6th Ed. New
Jersey, USA: Prentice Hall.
Jocano, F. Landa. 1999. Management by Culture: Fine-tuning Modern Management to
Filipino Culture. Quezon City, Philippines: Punlad Research House Inc.

Chapter 8: Motivation from Concept to Application

I. LEARNING OBJECTIVES / OUTCOMES

1. Understand how job characteristics model and the way it motivates by changing the work
environment.
2. Learn how specific alternative work arrangements, different types of variable-pay
programs and employee involvement measures can motivate employees.
3. Becoming a motivator by means of flexible benefits and intrinsic rewards.

II. INTRODUCTION

Simply knowing about motivational theories is not enough to make managers effective.
Managers must be able to apply these theories in the workplace to increase worker motivation.
This chapter will review the job characteristics model, discuss some ways jobs can be
redesigned, and then explore some alternative work arrangements.

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III. LESSON PROPER

The Job Characteristics Model


The job characteristics model looks at describing any job in terms of five core job dimensions.
These job dimensions include;
ü Skill variety, which is the degree to which the job incorporates a number of different skills
and talents.
ü Task identity is another dimension that looks at the degree to which the job requires the
completion of a whole and identifiable piece of work.
ü Task significance is included and looks at how the job impacts the lives of others.
ü Autonomy, the fourth dimension, identifies how much freedom and independence
workers have over their jobs. And finally,
ü Feedback is how much the job generates direct and clear information about the worker’s
performance.

Much evidence supports the JCM concept


that the presence of a set of job
characteristics—variety, identity, significance,
autonomy, and feedback—does generate
higher and more satisfying job performance.
JCM creates motivational jobs as they
are designed to give internal rewards. Positive
outcomes are moderated by individual growth
needs as each individual will respond differently.
In order for the jobs to increase motivation there should be a high degree of autonomy, feedback,
and a least one meaningfulness factor such as significance, identity, or variety. Note that because
the JCM is relatively individualistic, job enrichment strategies might not have the same effect in
collectivistic cultures as they do in individualistic cultures like the United States.

How Can Jobs Be Redesigned?


There are some helpful ways to redesign a job to increase the motivation of the
employees. Two common practices are job rotation and job enrichment.
v Job Rotation
-The periodic shifting of an employee from one task to another
v Job Enrichment
-Increasing the degree to which the worker controls the planning, execution, and
evaluation of the work
• Enrichment reduces turnover and absenteeism while increasing
satisfaction

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Guidelines for Enriching a Job


Job enrichment is helpful in keeping the worker
engaged in their work. There are many actions a
manager can take to help the worker. These actions
help to achieve core job dimensions. For example, if
the manager combines tasks for the worker, it can help
the worker increase the amount of skills they are
utilizing and help the worker to identify tasks that need
to be completed. This action can help the worker have
a better understanding of the job and how it helps the
organization complete its goals as well as help the
worker enjoy his work more because he is using more of his skill set.

v Relational Job Design


-Designing work so employees are motivated to promote the well-being of the
organization’s beneficiaries
• Relate stories from customers who have benefited from the company’s products
or services
• Connect employees directly with beneficiaries

v Alternative Work Arrangements


q Flextime- Some discretion over
when worker starts and leaves

q Job Sharing- Two or more


individuals split a traditional job

q Telecommuting- Work remotely


at least two days per week

Employee Involvement- A participative process that uses the input of employees to increase
their commitment to the organization’s success Two types:

1. Participative management- occurs when managers include employees in the


decisionmaking process. Subordinates share a significant degree of decision-making
power with superiors. Only a modest influence on productivity, motivation, and job
satisfaction.

To be effective:
ü Followers must have confidence and trust in leaders
ü Leaders should avoid coercion and stress organizational consequences of decisions

2. Representative participation- tries to redistribute power by putting labor on a more equal


footing with the interests of managers and stockholders. This is achieved by letting
workers be represented by small groups of employees who participate in decisions.
Workers are represented by a small group of employees who participate in decisions
affecting personnel

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a. Works councils
b. Board membership

Employee Involvement Programs and Motivation Theories


q Theory Y: consistent with participative management
q Theory X: consistent with the more autocratic style of managing
q Two-factor theory: employee involvement programs could provide intrinsic motivation by
increasing opportunities for growth, responsibility, and involvement in the work itself

Using Pay to Motivate Employees

As we saw in previous chapters, money is not the primary driver for job satisfaction.
However, it does motivate individuals, and companies often underestimate its impact in keeping
top talent.
It is critical to figure out what to pay and to establish a pay structure that makes sense for your
industry and organization. Then it is imperative that the organization utilizes this pay system and
applies it to the pay of individual employees.

Major strategic rewards decisions:


ü What to pay employees
ü How to pay individual employees
ü What benefits to offer
ü How to construct employee recognition programs

What to Pay?
q Establishing a pay structure
ü Balance between:
• Internal equity – the worth of the job to the organization
• External equity – the external competitiveness of an organization’s pays relative to
pay elsewhere in its industry
ü A strategic decision with trade-offs

How to Pay?
Variable-Pay Programs-Base a portion of the pay on a given measure of performance Seven
types:
1. Piece-rate pay plan- workers are paid a fixed sum for each unit of production completed
2. Merit-based pay-pay is based on individual performance appraisal ratings
3. Bonuses- rewards employees for recent performance
4. Skill-based pay-pay is based on skills acquired instead of job title or rank – doesn’t
address the level of performance
5. Profit-sharing plans- organization-wide programs that distribute compensation based on
an established formula designed around profitability
6. Gain-sharing- compensation based on sharing of gains from improved productivity
7. Employee-stock ownership plan (ESOP)-plans in which employees acquire stock, often
at below-market prices

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Using Benefits to Motivate

Flexible benefits allow employees choices between different benefits. This allows them
to customize their options and create a plan that best meets their needs and situation. This
increases their motivation because they realize the organization has their best interest in mind.

Using Intrinsic Rewards to Motivate

A method of motivation that has been highly successful is employee recognition programs.
This idea recognizes the importance of coupling extrinsic and intrinsic methods to help motivate
employees. Recognition is an intrinsic motivation technique that can range from giving an
employee the proverbial pat on the back to a more public recognition ceremony. Recognition
programs are highly effective and cost very little to administer. There are critics of such programs,
however, who say that they can be politically motivated and if the perception is that they are
applied unfairly, they can cause more harm than good.

IV. ACTIVITIES / EXERCISES

As a small group, assume you are a consultancy firm that specializes in motivational techniques
and job redesign. The college administration has come to you and asked that you examine the
college bookstore (or some other entity on the campus) and can provide them with suggestions
for increasing the motivation of the employees there. Assess the current work environment and
write up your suggestions using the motivational theories and techniques given in Chapters 6 and
7.

V. ASSESSMENT

Identification

1. Some discretion over when worker starts and leaves.


2. Two or more individuals split a traditional job.
3. Work remotely at least two days per week.
4. Occurs when managers include employees in the decision-making process.
5. This is achieved by letting workers be represented by small groups of employees who
participate in decisions.
6. It is a type of Variable-Pay Program which is based on individual performance appraisal
ratings.
7. It is a type of Variable-Pay Program which is based on skills acquired instead of job title
or rank – doesn’t address the level of performance.
8. It is a type of Variable-Pay Program which is based on sharing of gains from improved
productivity.
9. It is a type of Variable-Pay Program where workers are paid a fixed sum for each unit of
production completed
10. It is a type of Variable-Pay Program which employees acquire stock, often at below-market
prices

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VI. SUMMARY

D. Understanding what motivates individuals is key to organizational performance.


E. Employees whose differences are recognized, who feel valued, and who have the
opportunity to work in jobs tailored to their strengths and interests will be motivated to
perform at the highest levels.
F. Employee participation and recognition can increase employee productivity, commitment
to work goals, motivation, and job satisfaction.

Chapter 9: Foundations of Group Behavior

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:


1. Define group and identify the five stages of group development.
2. Show how role requirements change in different situations.
3. Demonstrate how norms exert influence on an individual’s behavior.
4. Discuss the dynamics of status in group behavior.
5. Show how group size affects group performance.
6. Contrast the benefits and disadvantages of cohesive groups.
7. Explain the implications of diversity for group effectiveness.
8. Contrast the strengths and weaknesses of group decision making.
9. Compare the effectiveness of interacting, brainstorming, and the nominal group technique.

II. INTRODUCTION

People turn to groups when they must solve problems and make decisions. Groups often
make better decisions than individuals, for groups can process more information more thoroughly.
But groups, like individuals, sometimes make mistakes.
When a group sacrifices rationality in its pursuit of unity, the decisions it makes can yield
calamitous consequences.
■ Why make decisions in groups?
■ What problems undermine the effectiveness of decision making in groups?
■ Why do groups make riskier decisions than individuals?
■ What is groupthink, and how can it be prevented?

III. LESSON PROPER

Groups are defined as two or more individuals who come together to achieve a set goal.
There are two main types of groups. The first is a formal group where the organization
establishes the group with defined work tasks and outcomes. The second group is an informal
group that is not part of the organizational structure. They are often established in reaction to a
need for social interaction and form naturally. Informal groups can have a significant influence
on behavior and performance

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The Five-Stage Model

STAGE ACTIVITY who i am who are you


Forming Orientation: members getting to know one another
how are we
Storming Conflict: disagreement about roles and procedures what are we doing going to do it
NormingencourageStructure:
and supportestablishment of rules and social relationships who does what, when where
Performing Work: focus on completing the task stop? continue dping? start doing. continue to learn
Adjourning Dissolution: completion of task and endand improve
of the group
SOURCE: Adapted from Tuckman, B., & Jensen, M. (1977). Stages of small group
development revisited. Group and Organizational Studies, 2, 419-427).
get acquainted
The forming stage is filled with uncertainty
as group members figure out their roles and the
group norms. The storming stage occurs as the
challenging
roles continue to be developed and conflict arises e=period
between group members. As members develop
closer relationships and a sense of cohesiveness,
they move into the norming stage. allWhen come the
to an agreement
group is functioning well together and achieving
their goals they are in the performing stage.worksIf in
it an open and
is a temporary group, they will wrap up activities
trust athmosphere
and adjourn in the final stage.
completion Temporary groups usually do not follow the
five-stage model. Instead, they follow a
punctuated equilibrium model. The first meeting sets the group’s direction, after which a period
of inertia sets in until about half the group’s allotted time is used up. At that point, a transition
initiates major changes, followed by a second period of inertia. The group’s last meeting is
characterized by a much higher level of activity
Work groups have properties including roles, norms, status, size, and cohesiveness that
shape the behavior of members. These properties can help explain and predict behavior within
the group and the performance of the group itself.

Group Property 1: Role-The set of expected behavior patterns that are attributed to occupying
a given position in a social unit.

ü Role perception– our view of how we’re supposed to act in a given situation
ü Role expectations– how others believe you should act in a given situation
ü Role conflict– conflict experienced when multiple roles are incompatible

Group Property 2: Norms-Acceptable standards of behavior within a group that are shared by
the group’s members.

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Powerful means of influencing behavior


ü Performance norms
ü Appearance norms
ü Social arrangement norms
ü Resource allocation norms

The Hawthorne studies were conducted in the 1920s and 1930s. This research has
been widely used in the understanding of group interactions. These studies found that worker
behavior was highly influenced by group norms and that individual productivity was influenced by
the standards the group set forth. Also, money was not as important in determining worker output
as group standards and sentiments were.
The Asch studies, which were conducted in the early 1950s, found that groups can
encourage members to change their attitudes and behaviors to be more in line with those of the
other group members. Since this research was done, new studies show that levels of conformity
have been steadily declining, and that Asch’s findings were specific to the United States. In
general, though, conformity tends to be greater in collectivist cultures.
Deviant Workplace Behavior: Voluntary behavior that violates significant organizational
norms and, in doing so, threatens the well-being of the organization or its members

Group Property 3: Status- A socially defined position or rank given to groups or group members
by others.
Determined by:
ü The power a person wields over others
ü A person’s ability to contribute to a group’s goals
ü An individual’s personal characteristics

Status can have an impact on a few things in groups.

First, it can impact norms within a group where high-status members don’t feel the need
to conform to group norms but can pressure others to conform.
Second, it can impact group interaction where members who hold more status tend to
be more assertive and can hinder new ideas being presented.
Finally, it impacts perceived equity in a group, which will influence how engaged others
are in the group process.

Group Property 4: Size- Size is an important factor in group behavior as well and impacts the
behavior in groups. The larger the group, the harder it is to get contributions from all members in
a timely manner. In contrast, small groups can be limited in their problem-solving ability and the
availability of resources could be limited. There are some detrimental behaviors that can occur
around group size. For example, as groups get larger, social loafing can occur. Some
individuals may put in less effort because they think others in the group will make up for them.

Group Property 5: Cohesiveness- The degree to which members of the group are attracted to
each other and motivated to stay in the group

v Performance-related norms are the moderating variable for productivity and cohesiveness
ü High cohesiveness with high norms gives higher productivity

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Encouraging Cohesiveness
1. Make the group smaller
2. Encourage agreement with group goals
3. Increase the time spent together
4. Increase the status and perceived difficulty of group membership
5. Stimulate competition with other groups
6. Give rewards to the group rather than to individual members
7. Physically isolate the group

Group Property 6: Diversity- refers to the degree to which members of a group are similar or
different from one another. These differences, which may be cultural or demographic, can
increase group conflict in the short term, but once the conflicts are resolved, the group may
actually perform better than a non-diverse group.

v Faultlines: perceived divisions that split groups into two or more subgroups based on
individual differences such as gender, race, age, work experience, and education ü Splits
are generally detrimental to group functioning and performance.

v Groupthink: relates to norms and describes situations in which group pressures for
conformity deter the group from critically appraising unusual, minority, or unpopular views.
A common problem with groups is groupthink. This occurs when the group is seeking
conformity and there is pressure to come to a conclusion without critically appraising
alternative viewpoints.
Groupthink, a term coined by Janis (1972). Janis used the analysis of historical decisions
to show how decision-making processes can go wrong.

Groupthink occurs when group members' desire to maintain good relations becomes more
important than reaching a good decision. Instead of searching for a good answer, they search for
an outcome that preserves group harmony. This leads to a bad decision that is then accompanied
by other actions designed to insulate the group from corrective feedback.

Members are more likely to engage in groupthink when they tend to rationalize away any
resistance to assumptions, and they feel pressure to support the majority. Doubters tend to keep
silent and minimize their thoughts on what might be wrong with a proposed solution, and the rest
of the group interprets this to be a yes vote.

Groupthink can be minimized by limiting the group size, having a leader who actively
seeks input from all members, and by appointing a devil’s advocate, or someone who is always
trying to look at things from a different perspective.

v Group-shift: describes the way group members tend to exaggerate their initial positions
when discussing alternatives and arriving at solutions. Another phenomenon in the group
decision-making process is group shift, where once a solution is selected, group members
tend to exaggerate the initial positions that they hold. This can cause a shift to a more
conservative or risky decision.

Group Decision-Making Techniques

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ü Interacting groups- Meet face to face and rely on verbal and non-verbal interactions to
communicate

ü Brainstorming-Generates a list of creative alternatives


Problem: production blocking
ü Nominal Group Technique (NGT)- Restricts discussion during the decision-making
process to encourage independent thinking. Allows a group of people to focus on the task of
making a decision without developing any social relations. It is called nominal because it does
not require a true group. This technique can be used by a collection of people who are brought
together to make a decision.

ü Delphi Technique uses a series of written surveys to make a decision. A group of experts
is given a survey containing several open-ended questions about the problem to be
solved. The results of this survey summarized and organized into a set of proposed
solutions. These solutions are sent to the participants, who are then asked to comment on
the solutions, which are based on the first survey. The process is repeated until the
participants start to reach agreement on a solution to the problem.

ü Ringi Technique - is a Japanese decision-making technique used for dealing with


controversial topics.
n It allows a group to deal with conflict while avoiding a face-to- face confrontation.

Sample in Evaluating Group Effectiveness

This exhibit shows that an interacting group is good for achieving commitment to a
solution, brainstorming develops group cohesiveness, and the nominal group technique is an
inexpensive means for generating a large number of ideas.

IV. ACTIVITY / EXERCISES

ACTIVITY: Riddle Me This!


Choose a fighter per team and the one who guess those given riddles within 10 mins. is
the winner.
• What comes once in a minute, twice in a moment, but never in a thousand years?
• You see a boat filled with people. It has not capsized, but when you look again you don't
see a single person on the boat. Why?
• What always ends everything?

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• I have keys, but no locks. I have space, but no room. You can enter, but you can’t go
outside. What am I?
• I have seas without water, coasts without sand, towns without people, and mountains
without land. What am I?

V. ASSESSMENT

Fill in the blanks.


1. ______________ refers to the degree to which members of a group are similar or
different from one another.
2. ______________the first group where the organization establishes the group with
defined work tasks and outcomes.
3. ______________ our view of how we’re supposed to act in a given situation.
4. ______________ studies found that worker behavior was highly influenced by
group norms.
5. ______________ some individuals may put in less effort because they think others
in the group will make up for them.
6. ______________ allows a group of people to focus on the task of making a
decision without developing any social relations.
7. ______________ describes the way group members tend to exaggerate their
initial positions when discussing alternatives and arriving at solutions.
8. _______________ occurs when group members' desire to maintain good relations
becomes more important than reaching a good decision.
9. _______________ refers to perceived divisions that split groups into two or more
subgroups based on individual differences such as gender, race, age, work
experience, and education
10. _______________ studies found that groups can encourage members to change
their attitudes and behaviors to be more in line with those of the other group
members.

VI. SUMMARY

Groups are defined as two or more individuals who come together to achieve a set goal.
There are two main types of groups as either formal group or informal groups can have a
significant influence on behavior and performance.
Groups develop in a standardized five stage model consisting of: The forming stage,
storming stage, norming stage, performing stage and adjourning stage.
Work groups have properties including roles, norms, status, size, and cohesiveness that
shape the behavior of members. Group properties includes role, norms, status, size,
cohesiveness and diversity.
Hawthorne studies found that worker behavior was highly influenced by group norms
and that individual productivity was influenced by the standards the group set forth.
Asch studies found that groups can encourage members to change their attitudes and
behaviors to be more in line with those of the other group members.
Deviant Workplace Behavior: Voluntary behavior that violates significant organizational
norms and, in doing so, threatens the well-being of the organization or its members

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Groupthink: relates to norms and describes situations in which group pressures for
conformity deter the group from critically appraising unusual, minority, or unpopular views. A
common problem with groups is groupthink.
Group-shift: describes the way group members tend to exaggerate their initial positions
when discussing alternatives and arriving at solutions. Another phenomenon in the group
decision-making process is group shift, where once a solution is selected, group members tend
to exaggerate the initial positions that they hold. This can cause a shift to a more conservative or
risky decision.
The techniques used in group decision-making are: interacting groups, brainstorming,
nominal group technique, delphi technique and ringi technique.

Chapter 10: Understanding Work Teams

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:


1. Analyze the growing popularity of teams in organizations.
2. Contrast groups and teams.
3. Contrast the five types of teams.
4. Identify the characteristics of effective teams.
5. Show how organizations can create team players.
6. Decide when to use individuals instead of teams.

II. INTRODUCTION

Teams are increasingly becoming the primary means for organizing work in contemporary
business firms. Understanding how and when to create these work teams is the purpose of this
chapter.

III. LESSON PROPER

What Is a Team? The word team is used to describe a wide assortment of human
aggregations. For example, in business settings, work units are sometimes referred to as
production teams or management teams. At a university, professors and graduate students may
form a research team to conduct experiments cooperatively. In the military, a small squad of
soldier's train as a special operations team.
In schools, a teaching team may handle the
education of 500 students. In multiplayer
games, people use computers to join
carefully composed teams to try challenges
(“instances”) that require the skills of many
types of characters. Over the last decade we
have seen the use of teams grow
exponentially in organizations. There are a

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number of reasons why this is true. Teams can enhance the use of employee talents and tend
to be more flexible and responsive to change. Teams can help to keep employees engaged in
their work and increase their participation in decision making, thus increasing their motivation.
However, teams are not always effective, and so it is important to take a look at how to deploy
teams effectively.
Work group: Interacts primarily to share information and to make decisions to help one another
perform within each member’s area of responsibility
Work team: Generates positive synergy through coordinated effort; individual efforts result in a
level of performance that is greater than the sum of those individual inputs

Work groups and work teams differ on their goals, level of synergy, accountability, and
skills. Their function is different. Work groups share information while work teams work together
for a collective performance. The synergy in groups is neutral whereas work teams have a
positive synergy. Accountability can be individual in both, but it is more often mutual in teams.
The skills in a group can be varied whereas the skills on a team need to be complementary.
Different Types of work teams, Teams come in a wide variety of forms, and they fulfill
many different functions in military, educational, industrial, corporate, research, and leisure
settings. A general distinction, however, can be made between teams that process information
and teams that plan, practice, and perform activities (Devine, 2002). Table 12.1 offers an even
more fine-grained analysis of teams within these two general categories, distinguishing between
management, project, and advisory teams within the information cluster and service, production,
and action teams within the performance cluster.
■ Executive teams and command teams such as administrative units, review panels, boards of
directors, and corporate executive teams, are management teams. They identify and solve
problems, make decisions about day-to-day operations and production, and set the goals for the
organization’s future.
■ Project teams, or cross-functional teams, include individuals with different backgrounds and
areas of expertise who join together to develop TEAMS 353 Copyright 2009 Cengage Learning.
All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. innovative
products and identify new solutions to existing problems. These teams are extremely common in
organizational settings, for they often are composed of individuals from a variety of departments
and are deliberately organized to reduce the lack of communication that isolates units within the
overall organization.
Negotiation teams represent their constituencies; commissions are special task forces that make
judgments, in some cases about sensitive matters; and design teams are charged with developing
plans and strategies.
■ Advisory teams, such as review panels, quality circles, and steering committees are sometimes
called parallel teams because they work outside the usual supervisory structures of the company.
■ Work teams, such as assembly lines, manufacturing teams, and maintenance crews, are
responsible for the organization’s tangible output; they create products (production teams) or
deliver services (service teams). Some of these teams can also be considered action teams.
■ Action teams include sports teams, surgery teams, police squads, military units, and orchestras.
All are specialized teams that generate a product or a service through highly coordinated actions
(Devine, 2002; Sundstrom et al., 2000).

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Four Types of Teams

q Problem-solving teams are a very popular method used in many organizations. Typically
this type of team meets for a few hours each week to solve a particular problem. Members
often from the same department. Share ideas or suggest improvements. Rarely given
authority to unilaterally implement any of their suggested actions.
q Self-managed work teams are comprised of a group of people who perform highly related
or inter-dependent jobs and take on the responsibilities of their former supervisors.
Team takes on supervisory responsibilities: Work planning and scheduling, assigning
tasks, Operating decisions/actions, working with customer. The effectiveness of this type
of group greatly depends on the situation and the goals of the group.
q Cross-functional teams gather workers from many different work areas to come together
to accomplish a task that needs to utilize multiple perspectives. This type of group is good
at developing new ideas and solving problems or coordinating complex projects. Given
that their tasks are normally complex and diverse, it may take some time for the group to
develop into an effective and productive team.
q Virtual teams are increasing in their use. This type of team uses computer technology to
bring people together to achieve a common goal. Typically, these types of teams get right
to work with little socializing but need to overcome time and space constraints to
accomplish the task. In order to be effective, virtual teams need to find ways to establish
trust among the members, have close monitoring, and results need to be publicized.
Dispersing information can be challenging. Research shows that virtual teams are better
at sharing unique information, but they tend to share less information overall. It can also
be challenging to find the best amount of communication. Low levels of virtual
communication can mean high levels of information sharing, but high levels of virtual
communication can hinder information sharing.

Multi-team systems perform better when they have “boundary spanners” whose job is to
coordinate with members of other sub-teams. Multi-team systems can be the best choice when
teams are too large to be effective, or when teams with distinct functions need to be highly
coordinated.

The three key components of effective teams are context, composition, and process variables.
Next we will look at each one of these
components individually.
Context Factors in Team Success
ü Presence of adequate resources
ü Effective leadership and structure
ü Climate of trust in the team
ü Performance evaluation and reward system that reflects team contributions

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Team Composition and Success


A manager must pay close
attention to how a team is put together to
assure group cohesiveness and
effectiveness. Each member should be
selected based on the type of skills and
abilities needed to accomplish the task at
hand. However,
abilities are not the only characteristic that
managers need to pay attention to;
personality is also important so that the
team can bond and form trust.
In addition, the manager must be
sure he assigns the right people to fill the
roles needed, but maintain adequate
diversity so that idea generation still occurs.
The manager must also pay attention to the
size of the team and ensure that members want to be on the team and enjoy teamwork.
Organizational demography suggests that diversity in attributes such as age or the date
of joining should help us to predict turnover.

1. Abilities of Members 3. Allocation of roles


a. Technical Expertise 4. Diversity of Members
b. Problem Solving a. Organizational Demography
c. Interpersonal 5. Size of Teams
2. Personality of Members 6. Member Preferences
a. Conscientious and
Openminded

Team Process and Success

Teams should create outputs greater than the sum of their inputs. This exhibit shows how
group processes can have an impact on a group’s actual effectiveness.

A team’s processes can have a big impact on its effectiveness. Teams must have a strong
commitment to a common purpose that provides direction, but yet incorporates reflexivity so that
plans can be adjusted if necessary. The goals of the team must be set up, so they are specific,
measurable, and realistic yet challenging in order to keep the team members engaged.
Members must believe they can succeed and have a mental map of how to get the work
done to assist in the process of accomplishing their task.
Finally, members must navigate through conflict and social loafing to encourage a healthy and
effective group.

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TURNING INDIVIDUALS INTO TEAM PLAYERS

Team players are indispensable human assets of many organizations, and these
organizations would want to make sure that they are available when their services are needed.
An important concern, however, is to turn individuals into team players. The available options
consist of the following:

q Selection: Need employees who have the interpersonal as well as technical skills

q Training: Workshops on problem-solving, communications, negotiation, conflict


management, and coaching skills
q Rewards: Encourage cooperative efforts rather than individual ones

IV. ACTIVITY / EXERCISES

If your team needs motivation activities to sharpen their communication skills, this game
is an easy way to encourage that! You can play this game in pairs of 2 partners or in small groups.
The aim of the game is for one person to describe a random image and have their partner or
group draw what is being described. This activity to motivate employees can give your team great
insight into how people might interpret directions differently. If you need a fun office game for
employees, you’ll want to pick this idea. Time Required: 20 minutes Materials Needed:
• Random images that can be verbally described
• Pens or markers
• Sheets of paper

How to Play: One person will receive a random image. They will be tasked with describing
what they see to their partner or small group. Without seeing the image or asking questions, the
group must draw the image based on the verbal descriptions they receive. Give your teams
around 10 minutes to draw, and 10 minutes to reveal their drawings and talk about how
communication could be improved for next time.

V. ASSESSMENT

I. Find and Choose the correct answer inside the box. Write the letter only in the blank before
the number.
A. Context B. Composition C. Process

_________ 1. Allocating roles


_________ 2. Social loafing
_________ 3. Leadership and structure
_________ 4. Conflict levels
_________ 5. Climate of trust
_________ 6. Size of teams
_________ 7. Common purpose
_________ 8. Adequate resources
_________ 9. Diversity

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_________ 10. Specific goals

II. Answer the following:


1. Recall the time when you were at school and your teacher told the class to create groupings
for a specific project. Each group should also select a leader or set of officers to make the
project more efficient. Unfortunately, despite your efforts, your project was a failure…Share
your story and answer the following questions: ü What was the project all about?
______________________________________________________________________
__________________________________________________________
ü What was your role in the project?
______________________________________________________________________
__________________________________________________________ ü How can
you describe your group members and your leaders?
______________________________________________________________________
__________________________________________________________ ü Did your
group met problems or conflict while doing your project?
______________________________________________________________________
__________________________________________________________ ü How did
your group solve it?
______________________________________________________________________
__________________________________________________________
ü Which part did your group fall short that caused the project unsuccessful?
______________________________________________________________________
__________________________________________________________ ü If you will be
in the same scenario, what would you do to make it successful?
______________________________________________________________________
__________________________________________________________

2. Write a short story about your favorite sports and the specific team you cheered on every
time they are playing. Describe the role of each member how they are doing their part in
the game. Does this team always win and what do you think is their strategy/ies in winning?
When the odds are on their side, how do they resolve it?

VI. SUMMARY

Team is used to describe a wide assortment of human aggregations. Work group:


Interacts primarily to share information and to make decisions to help one another perform within
each member’s area of responsibility Work team: Generates positive synergy through coordinated
effort; individual efforts result in a level of performance that is greater than the sum of those
individual inputs. Different types of work teams are: Executive teams and command teams,
Project teams, or cross-functional teams, Negotiation teams, Advisory teams, Work teams and
action teams. Teams may be classified as Problem-solving teams Self-managed work teams
Cross-functional teams’ virtual teams Multi-team systems perform better when they have
“boundary spanners” whose job is to coordinate with members of other sub-teams. The three key
components of effective teams are context, composition, and process variables. Context Factors
in Team Success includes the presence of adequate resources, Effective leadership and

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structure, Climate of trust in the team and Performance evaluation and reward system that reflects
team contributions. A manager must pay close attention to how a team is put together to assure
group cohesiveness and effectiveness. Each member should be selected based on the type of
skills and abilities needed to accomplish the task at hand.
Organizational demography suggests that diversity in attributes such as age or the date of joining
should help us to predict turnover such as the abilities of members, and personality of members.
The potential problems of teams consist of changing membership and social loafing. Individuals
may be developed into team players by means of selection, training, and rewards.

Chapter 11: Communication

I. LEARNING OBJECTIVE / OUTCOME

At the end of this lesson you should be able to:


1. Understand the communication process and formal and informal communication.
2. Explain downward, upward, and lateral communication.
3. Know how to compare and contrast formal small-group networks and the grapevine
4. Understand oral, written, and nonverbal communication.
5. Explain how channel richness underlies the choice of communication channel.
6. Understand the differences between automatic and controlled processing of persuasive
messages.
7. Know common barriers to effective communication.
8. Show how to overcome the potential problems in cross-cultural communication.

II. INTRODUCTION

In order to be successful, managers must be able to communicate effectively. This chapter


describes the communication process and the various ways managers communicate to
employees. Additionally, barriers to communication are presented.

III. LESSON PROPER

Communication is the process of transmitting information and common understanding


from one person to another (Keyton, 2011). In another study According to Fred Lunenburg,
communication from studies is important, because every administrative function and activity
involves some form of direct or indirect communication.
The Communication Process

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This graph outlines the communication process between the sender and the receiver. The
sender encodes the ideas by selecting words, symbols, or gestures with which to compose a
message. The message is the outcome of the encoding which takes the form or verbal nonverbal
or written language. The message is sent through a medium or channel, which is the carrier of
communication. The medium can be face-to-face conversation, telephone call, email, or written
report. The receiver decodes the received message into meaningful information.

Sometimes during the transmission of a message, distortion happens from the sender to
the receiver which we call noise. Noise is anything that distorts a message (different perception
of the message, language barriers, interruptions, emotions, attitudes and even how we interpret
one’s message)
Lastly feedback allows the sender to determine whether the message has been received and
understood.

The communication process consists of a sender who encodes a message and


transmits it through a channel to a receiver who decodes it and may give feedback. Exhibit 5.3
illustrates the communication process. Below is a brief explanation of each step in the
communication process; you will learn the details of each step-in separate sections of this chapter.

In step 1, the sender encodes the message and selects the transmission channel. The
sender of the message is the person who initiates the communication. Encoding is the sender’s
process of putting the message into a form that the receiver will understand.
The
message is the physical form of the encoded
information. The message is transmitted through a
channel. The three primary communication channels
you can use are oral, nonverbal, and written. See
Exhibit 5.4 for the various transmission channel options.
When selecting a channel, you need to remember that
people do have different preferences for example,
many younger people like to text, whereas older people
do not.

In step 2, the sender transmits the message


through a channel. As the sender, after you
encode the message and
select the channel, you transmit the
message through the channel to one or
more receivers.

In step 3, the receiver decodes the message


and decides whether feedback is needed.
The person receiving the message decodes
it. Decoding is the receiver’s process of
translating the message into a meaningful

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form. We all decode words so that the message makes sense to us. The receiver decides if
feedback, a response, or a new message is needed.

There are a few different channels of communication in the workplace. The first type is
formal channels. These channels transmit messages that are related to the professional
activities of the members, such as email, memos, and planned speeches. The second type is
informal channels, used to transmit personal or social messages. This channel is more
spontaneous in nature and a result of individual choices such as who you eat lunch with.

Direction of Communication
In an organization
Upward communication flows in three
different directions. It can flow
Lateral
downward from the top
management to people in
lower levels of the
organization. It can flow up
from workers on the ground
floor to the CEO or it can flow
Downward between or within
departments in a
lateral movement.

Downward Communication
✓ Is that of superior to subordinate or management to employees o One-way
communication
✓ Managers explain why a decision was made, but do not solicit advice or
opinions of employees
Upward Communication
✓ Is a communication of subordinates to superior or of employees to managers
✓ Keeps managers aware of how employees feel about their jobs, coworkers, and the
organization
Lateral Communication
✓ Communication that occurs between members of a work group, members at the same level
in separate work groups, or any other horizontally equivalent workers o Saves time and
facilitates coordination

Formal Small-Group Networks


In an organizational context communication is commonly broken down into three formal small-
group networks.

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❑ The chain is a very formal and rigid chain of


command. Employees know who the next person in
the chain is and that is where they give and get their
information.
❑ The wheel is a network where there is a central
figure who controls all the communication. This type of group requires a very strong leader
who can communicate effectively.
❑ The all-channel network is a much more fluid arrangement where all group members
communicate actively with each other and there is no formal channel or single person.
This works best in a situation such as a self-managed team.

The effectiveness of each network depends on


the dependent variable that concerns you.

The Grapevine
The grapevine an unofficial, informal communication and not controlled by
management nor do they feed it information. However, employees see it as a very believable and
reliable form of communication. The grapevine has no formal purpose but is mainly there to serve
the self-interests of those who use it, developing from a need for these individuals to get more
information about an important, but ambiguous situation. The grapevine can be a way to receive
information about the situation and reduce anxiety as well as fill a social need to connect.
• Gossip Grapevine -a pattern of grapevine communication in which a message is passed to only
a select group of individuals.

MODES OF COMMUNICATION
Three modes of communication

Oral Communication - A primary means of conveying messages. Speeches, formal one-on-one


and group discussions, and the informal rumor mill or grapevine are popular communications.

✓ Advantages o Speed
o Feedback
o Simple to correct

✓ Disadvantages o Potential for distorted message when passed through a number of


people

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Written Communication - Includes letters, e-mails, instant messaging, organizational


periodicals, and any other method that convey written words or symbols.

✓ Any method that conveys written words or symbols


✓ The longest lasting form of communication

Nonverbal

✓ Body language conveys


o The extent of affinity for another
o The relative perceived status between a sender and receiver

✓ Meaning changes with


o Intonation o Facial expression o Physical distance

Channel Richness

Channel Richness is the amount of


information that can be transmitted during a
communication episode. It transmits the
most information per
communication episode – multiple
information cues (words, postures, facial
expressions, gestures, intonations),
immediate feedback (both verbal and
nonverbal) and the personal touch of being
present.

Choosing Communication Method


The choice of channel depends on whether the message is routine.
Routine messages tend to be straightforward and have minimal ambiguity.
Nonroutine communication are likely complicated and have the potential for
misunderstanding.
Choosing your mode of communication is not always easy to know when to choose oral
rather than written communication. Your communication choice is worth a moment’s thought: Is
the message you need to communicate better suited to a discussion, or a diagram?
Also consider the receiver’s preferred mode of communications; some individuals focus
on content better in written form and other prefer discussion.

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PERSUASIVE COMMUNICATION
❑ Automatic processing: superficial consideration of evidence and information making use
of heuristics

o Takes little time and minimal


effort
o But, it’s easy to be fooled

❑ Controlled processing: detailed consideration of evidence and information relying on


facts, figures, and logic

o Requires effort and energy


o But, less likely to be fooled

Barriers to Effective Communication

• Now that we have a foundation in organizational structure and communication flow


organization wide, for the rest of the chapter, let’s focus more on interpersonal
communications, which are often between two people. In this section, we begin with an
explanation of the communication process, followed by barriers to communications. Next
we discuss differences in communications between genders, and end with difference by
culture.

There are a number of barriers to effective communication that can distort the message being
sent. Let’s look at a few of those.
• Physical Barriers – distances between people, could be because of a wall, internet
connection, signal from different networks. Is the environmental and natural condition that
act as barrier in communication in sending message from sender and receiver
• Sematic Barriers – the words we choose, how we use them and the meaning we attach
to them cause many communication barriers. o Ex. Increased efficiency, management
prerogatives
• Psychosocial Barriers – associated with psychological and social barriers o Experience
– different sets of values, beliefs and perception of different individuals o Filtering – we
see and hear what we are emotionally tuned in to see and hear o Psychological distance
between people that is similar to actual physical distance

▪ Example – The school administrator talks down to a staff member, who


resents this attitude, and this resentment separates them, thereby blocking
opportunity for effective communication

• Major areas where communication breakdown most frequently:


o Sincerity – is the foundation on which all true communication rests. Without
sincerity-honesty, straightforwardness, and authenticity- all attempts at
communication are destined to fail.

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o Empathy – research shows that lack of empathy is one of the major obstacle to
effective communication. o Role Perception – Unless people know what their role
is (most especially in an organization or in a group), the importance of their role,
and what is expected of them, they will not know what to communicate, when to
communicate, or to whom to communicate.
o Self-Perception – how we see ourselves affects our ability to communicate
effectively
o Culture – our cultural heritage, biases, and prejudices often serve as barrier to
communication.
▪ Filipino often communicate indirectly in order to prevent a loss of
face(muhka) and evoking hiya on either side of an exchange. They tend to
avoid interrupting other and are more attentive to posture, expression and
tone of voice to draw meaning.
▪ Filipinos rarely give a direct answer of ‘no’ and will avoid disagreement,
rejection and confrontational behavior, especially when a superior is
involved.
o Listening – frequently, people fail to appreciate the importance of listening, do not
care enough to become actively involved with what others are saying, and are not
sufficiently motivated to develop the skills necessary to acquire the art of listening.
o

IV. ACTIVITY / EXERCISES

Analyzing Your Organization (Cumulative Project). Discuss with various members of your
organization where they think the communication breakdowns occur, either in their department or
in the organization itself. Analyze their answers in the context of the communications model.
Where in the process do you feel these breakdowns tend to occur most often? Write up your
results and prepare suggestions on “fixing” the process in your organization. If your instructor
directs, be ready to share your suggestions in class.

V. ASSESSMENT

MULTIPLE CHOICE
________1. Juan here is the report you asked me to complete. Let me know if I need to make
any changes.
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
________2. “Jackson, I just closed a larger sales order with Tyson, but I had to guarantee
delivery by next Tuesday. Can you produce 100 units on time?
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
_______3. “Hi Tyler, please take this over to the mail room right away for me”
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
_______4. “Jamal, have you heard that President Flynn is using the company jet to take his
mistress out on dates?
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine

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_______5. “Judy, will you please hold this so I can put it together-the way I help you all the
time”
a. vertical-downward b. vertical-upward c. Horizontal d. Grapevine
_______6. A type of channel that used to transmit personal or social messages.
a. Formal Channel b. Informal Channel c. Channel
________7. A Communication that flows to a higher level.
a. Upward Communication b. Lateral Communication c. Channel
________8. A Communication that flows from one level to a lower level.
a. Upward Communication b. Channel c. Downward Communication
________9. A network which is very formal and rigid chain of command.
a. The Chain b. The All-Channel c. The Wheel
________10. It is a superficial consideration of evidence and information making use of
heuristics.
a. Controlled Processing b. The Chain c. Automatic Processing

II. Select the most appropriate channel for each message


a. Face-to-Face b. Telephone c. Meeting d. Presentation
e. Memo f. Letter g. Report h. Poster
________1. An employee came in late for work again today. This is not acceptable behavior
and needs to stop.
________2. The supervisors is getting together with a few employees to discuss a new
procedure that will be going into effect in a week
________3. Shelly, the supervisor, is expecting needed material for production this afternoon.
She wants to know whether it will arrive on time to make the product
________4. Employees have been leaving the lights on when no one is in the break room. As
the manager concerned for saving electricity, you want employees to shut off the light when
they leave
_______5. The boss asked for the sales data for the quarter.

VI. SUMMARY

Implications for Managers


✓ Remember that your communication mode will partly determine your communication
effectiveness.
✓ Obtain feedback from your employees to make certain your messages are understood.
✓ Remember that written communication creates more misunderstandings than oral
communication.
✓ Make sure you use communication strategies appropriate to your audience and the type
of message you’re sending.
✓ Keep in mind communication barriers such as gender and culture.

Keep in Mind…
✓ Each communication direction has its own challenge that must be overcome

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✓ Each form of communication has an optimal purpose and specific limitations – use
appropriately
✓ Communication barriers often retard or distort communication

Chapter 12: Leadership

I. LEARNING OUTCOMES

At the end of this lesson, you should be able to:


1. Understand the differences between leadership and management;
2. Learn the different central tenets and main limitations of behavioral theories and
contingency theories of leadership; and
3. Becoming an effective leader in the organization

II. INTRODUCTION

Leaders help themselves and others to do the right things. They set direction, build an
inspiring vision, and create something new. Leadership is about mapping out where you need to
go to "win" as a team or an organization; and it is dynamic, exciting, and inspiring. Yet, while
leaders set the direction, they must also use management skills to guide their people to the right
destination, in a smooth and efficient way.

III. LESSON PROPER

LEADERSHIP is the ability to influence a group toward the achievement of goals. A leader
does not have to be someone who holds a formal position or title. Leaders can emerge from a
group and provide vision and motivation to those around them. They are critical in helping people
cope with change by establishing direction that relates to the vision. In order to achieve the vision,
they align resources and inspire workers to work toward organizational goals.
Management deals with the complexity of the organization and works with planning,
organizing, leading, and controlling to bring about order and consistency in the organization. Even
though the two roles have different areas of focus, both are necessary for organizational success.
TRAIT THEORIES of Leadership focus on personal qualities and characteristics
Big Five Personality Framework

ü Extraversion has strongest relation to leadership


ü Conscientiousness and Openness to Experience also strongly related to leadership ü
Agreeableness and Emotional Stability are not correlated with leadership
ü Emotional Intelligence is correlated with leadership; however, this link is underinvestigated

Two conclusions:
1. Traits can predict leadership
2. Traits do a better job predicting the emergence of leaders and the appearance of
leadership than distinguishing between effective and ineffective leaders

BEHAVIORAL THEORIES of leadership- we can determine leadership effectiveness by leader


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behavior, and perhaps train people to be leaders


ü Behaviors can be taught – traits cannot
ü Leaders are trained – not born
ü
Two key studies of leadership

The Ohio State Studies

Attempts to organize Initiating


Structure
Consideration Concern for followers’
work, work relationships, and goals comfort, well-being, status,
and satisfaction

The University of Michigan Studies

Emphasize the technical or the task Production Employee Emphasize interpersonal are
aspects of the job. Oriented Oriented means to an end and accept
individual differences

CONTINGENCY THEORIES of leadership

n Fiedler leadership model: Effective group performance depends on the proper match
between the leader’s style and the degree to which the situation gives the leader control In this
theory Fielder is trying to match the leader to the context. He proposes that leadership style is
fixed. So, if the situation demands a charismatic leader and your current leader does not exhibit
that style, you need to change leaders. This leadership style can be determined by taking the
LPC questionnaire (least preferred co-worker).
After the leadership style is determined, you can match the leader to the situation. There are three
dimensions to find a successful match.

• The first situational factor is the leader-member relationship; this tie back to our behavioral
studies by looking at the degree of trust and respect employees have for the leader.
• The second factor is the amount of structure that is embedded in job assignments.
• The last factor is the amount of influence the leader has over decisions that represent power
such as hiring, firing, and rewards. (Position Power)

In Fiedler’s model you need to find a leader to fit the situation or change the situation to fit the leader
in order to achieve effective leadership for the organization.
n Situational leadership theory (SLT): successful leadership depends on selecting the right
leadership style contingent on the followers’ readiness to accomplish a task
1. Unable and unwilling
2. Unable but willing
3. Able but unwilling 4. Able and willing

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n Path-goal theory: it’s the leader’s job to provide followers with information, support, or other
resources necessary to achieve goals

• Directive leadership yields greater satisfaction when tasks are ambiguous or stressful
• Supportive leadership results in high performance and satisfaction when tasks are
structured
• Directive leadership is perceived as redundant by employees with high ability or
experience

Matching Leaders to Situations

This graph helps to visually determine the situational factors and what type of leader would succeed
in this situation. There are eight possible situations in which leaders can find themselves in. By
matching their LPC score with these eight different situations a leader can see where they will be most
effective. For example, categories four through six would be better suited to relationship-oriented
leaders because Fielder proposes that they perform best in moderately favorable situations.

CHARISMATIC LEADERSHIP
Charisma comes from the Greek
word meaning gift. When talking about a
charismatic leader one will refer to someone
with certain gifts or abilities. A charismatic
leader will often gain followers through
personality rather than through power or
authority.

There are four key characteristics that are


associated with a charismatic leader.

1. Vision and Articulation The leader must


have vision, expressed as an idealized goal.
2. Personal risk-taking The leader
must be willing to take on high personal risk
and engage in self-sacrifice to achieve the vision.
3. Sensitivity towards followers in doing so the leader needs to remain sensitive to the
feelings and needs of their followers.
4. Unconventional Behaviors Throughout the process the leader may be engaging in
behaviors that are perceived as counter to norms, thereby extraordinary.

The charismatic traits are often traits that a leader is born with, thus continuing the debate
whether leaders are born or developed. In reality it is a mix of genetics, training, and experience.
Charisma can be created. One way is to develop an aura of charisma by being optimistic,
passionately enthusiastic, and to communicate with behaviors and words. A leader can
also create charisma by drawing in others through inspiration, as well as by tapping into the
emotions of individuals to bring out their potential.

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TRANSFORMATIONAL/TRANSACTIONAL LEADERSHIP

Transformational leaders help followers to look at the bigger picture and commit to the good
of the organization, even if it means setting their own goals aside.
Transactional leaders motivate their follower towards the goals set by clarifying their roles in
the process and what they need to do to reach the goals set.

These two approaches are not contradictory in nature; in fact, they can complement each
other. Transformational leadership often is built upon transactional leadership. Good leadership will
incorporate both transactional and transformational components.

Full Range of Leadership Model


This exhibit shows the full range of the leadership model. The first four behaviors
represent transactional approaches and begins with the Laissez-Faire approach, which is the
most passive. As a leader progresses on the scale, she moves toward more active behaviors.
The final four behaviors on the model represent transformational actions. This model shows that as
leaders utilize more transformational behaviors, they become more effective.

Evaluation of Transformational
Leadership
Transformational leadership
works in a variety of contexts but
tends to be more effective in smaller
companies. It does work better
when the leader is more closely
connected to the followers and can
understand their situation. The link
between transformational
leadership and positive
job outcomes is solid. They tend to
be creative and inspire creativity.
They create a “can-do” spirit.

Transformational vs. Transactional Leadership


Transformational leadership is more strongly correlated with:
ü Lower turnover ü Higher productivity
ü Lower employee stress and burnout
ü Higher employee satisfaction

AUTHENTIC LEADERSHIP: Ethics and Trust

Authentic leadership is a growing area of research. There are several components that need
to be addressed when discussing authenticity in leadership.
First, we must look at authentic leaders. These are leaders who engage in reflection and
understand who they are and what they believe and bring those two aspects together in their
actions. Next, authentic leaders are able to create trust with their followers and encourage a

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culture of open communication. These factors will help to create an authentic leader that people
will follow.

Ethics and Leadership

There is a strong intersection of ethics and leadership. Over the past several years we
have been involved in what many have called an ethical crisis in the business community. When
we look at leadership, we need to look at more than the results of the leader. We must also look
at the steps the leader took to achieve those results. Executives set the moral tone for an
organization so they must set and adhere to high ethical values. Leadership is not value free, and
the means by which a leader achieves their goal must be framed by ethics.

n Socialized charismatic leadership: leadership that conveys other-centered values by


leaders who model ethical conduct
n Servant Leaders: Go beyond their own self-interest and focus on opportunities to help
followers grow and develop. They don’t use power to achieve their goal; instead they focus
on persuading followers. The effects of servant leadership include higher levels of
commitment to the supervisor, self-efficacy, and perceptions of justice, all of which are
related to organizational citizenship behavior. Servant leaders increase team potency, which
leads to higher levels of group performance, and also a greater focus on growth and
advancement which leads to higher levels of creative performance. This type of leadership
may be more prevalent in East Asian cultures.

Trust
Trust is defined as a state that exists when you agree to make
yourself vulnerable to another because you have a positive
expectation for how things are going to turn out. Over the
years this has been found to be a foundational characteristic
of leadership. When trust is present followers are willing to
do as the leader asks and engage in behaviors that are for
the benefit of the organization. In short, followers will do a lot
more for a leader they trust than for one that does not hold their trust.
Trust is developed over time. The interactions between the leaders and the followers are part of
the development of trust; it goes both ways. Research has shown that the three main
characteristics of a leader that instill trust are integrity, ability, and benevolence.
These three characteristics are important in developing trust between leaders and followers. If
followers perceive these characteristics as strong in their leaders, it will encourage positive
behaviors such as risk taking, information sharing, group interactions, and productivity.

IV. ACTIVITIES / EXERCISES

Watch this video on Ted Talks:


https://www.ted.com/talks/simon_sinek_why_good_leaders_make_you_feel_safe

V. ASSESSMENT

Reflection
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1. Describe your mental model of leadership.


2. What is the difference between leadership and management?
3. For you, are leaders born or made?

VI. SUMMARY

Leaders can influence a group toward the achievement of goals. The best leaders are
ethical and authentic in addition to being charismatic. For maximum leadership effectiveness,
ensure that your preferences on the initiating structure and consideration dimensions are a match
for your work dynamics and culture. Hire candidates who exhibit transformational leadership
qualities and who have demonstrated success in working through others to meet a long-term
vision. For management role, hire candidates whom you believe are ethical and trustworthy; and
train managers in your organization’s ethical standards. Seek to develop trusting relationships
with followers. Consider investing in leadership training.

Chapter 13: Power and Politics

I. LEARNING OBJECTIVE / OUTCOME

After studying this chapter, you should be able to:


1. Define power and contrast leadership and power.
2. Contrast the five bases of power.
3. Identify nine power or influence tactics and their contingencies.
4. Show the connection between sexual harassment and the abuse of power.
5. Distinguish between legitimate and illegitimate political behavior.
6. Identify the causes and consequences of political behavior.
7. Apply impression management techniques.
8. Determine whether a political action is ethical.
9. Show the influence of culture on the uses and perceptions of politics.

II. INTRODUCTION

For anything to be accomplished in an organization people must use both power and
politics. While often looked at as negative aspects of organizations, both power and politics are
the means by which organizations and individuals get objectives accomplished.

III. LESSON PROPER

POWER refers to the capacity of one person who has over the other person to get the
individual to do something. Inherent in this definition is the idea of dependency. The stronger the
relationship or the dependency that one person has when the other possesses something they
want or requires, the greater the dependency on that person.

Contrasting Leadership and Power

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Differences Leadership Power Leadership and power are two


different concepts and need to be
defined separately. Leadership is
Goal Requires goal Only needs
focusing on goal achievement along
Compatibility congruence dependence with followers. Power is
Focuses on Concerned with used as a way to accomplish the
Direction of
downward influence in all goal and often followers are also
Influence
influence directions meaning to accomplish the goal.
Leadership will focus on using
Broader topic: leadership downward to influence
focuses on tactics others to help them achieve their
Research Emphasizes used by
Emphasis leadership style individuals and tasks, whereas power uses
influence to gain
groups something upward or laterally.

TWO MAIN BASES OF POWER

v Formal power is based on an individual’s organizational position. Formal power is defined


more by the position a person will hold in the organization. People with formal power can
utilize different power bases to accomplish their tasks.
q Coercive Power: Complies from fear of the negative results
q Reward Power: Complies due to desire for positive benefits
q Legitimate Power: From the formal authority to control and use organizational
resources
v Personal power stems from an individual’s unique characteristics
q Expert Power: Influence wielded as a result of expertise, special skill, or knowledge
q Referent Power: Based on identification with a person who has desirable resources
or personal traits. Ex. Charisma

Effective Power Bases:


ü Expert and referent power are positively related to performance and commitment
ü Reward and legitimate power are unrelated to organizational outcomes
ü Coercive power is negatively related to employee satisfaction and commitment

POWER TACTICS
There are a number of power tactics an individual can use or ways in which they can make
the power base work for them by moving people into specific actions. Some are more effective
than others. There are 9 major power or influence tactics. They are legitimacy, rational
persuasion, inspirational appeals, consultation, exchange, personal appeals, ingratiation,
pressure, and coalitions.

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Preferred Power Tactics by Influence Direction


While rational persuasion may work for
you, the effectiveness of some influence
tactics depends on the direction of
influence. This exhibit shows that rational
persuasion is the only tactic effective
across organizational levels.

Unequal Power in the Workplace: Sexual


Harassment and Abuse of Power

Sexual Harassment is any unwanted activity which is sexual in nature that affects an individual’s
employment and creates a hostile environment. It is wrong and has legal danger, also it can have
a negative impact on the work environment too.

Organizations’ limiting sexual harassment includes limiting:


- Unwanted physical touching
- Recurring request for dates when it is made clear the person is uninterested
- Coercive threats that he or she will lose job when refusing sexual preposition

Sexual harassment is more likely to occur when there are large power differential.
However, although co-workers don’t have legitimate power, they can have influence and use it to
sexually harass peers. Individuals who are sexually harassed report lower job satisfaction and
diminished organizational commitment as a result.

Some ways can protect themselves and their employees from sexual harassment:
1. Make sure to have an active policy, inform employees, and establish procedures for how
complaints can be made
2. Ensure employees that they will not encounter retaliation if they issue a complaint.
3. Investigate every complaint and include the legal and human resource departments.
4. Make sure offenders are disciplined or terminated.
5. Set up in-house seminars to raise employee awareness of the issues surrounding sexual
harassment.

How Power Affects People


Power doesn’t affect everyone in the same way.

The toxic effects of power depend on one’s personality. Power doesn’t corrupt those with
anxious personalities because they are less likely to think that using power benefits them. The
corrosive effects of power can be contained by organizational systems. We have the power to
blunt the negative effects of power. The people who are most likely to abuse power are those
who are low in status and gain power

POLITICAL SKILL: ability to influence others to enhance one’s own objectives


• Politically skilled are more effective users of all the influence tactics
• Political skill is more effective when the stakes are high

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• Those with political skill can exert their influence without others detecting it

POLITICAL BEHAVIOR: consists of activities that are not required as part of an individual’s
formal role but that influence, or attempt to influence, the distribution of advantages and
disadvantages within the organization

The Reality of Politics

Politics often occurs when resources are low; the excess demand for the resources leads
to competition and political behaviors. When the scarce resources are distributed, there will be
varying views regarding how “fairly” or “effectively” the distribution was done. Perceptions can be
distorted such that the manager feels he is documenting decisions and the employee just feels
that the manager is covering his rear.

Most of the time, managers are making decisions under ambiguous conditions and there
is not a readily available objective standard. This creates a context in which political maneuvering
is encouraged.

Politicking: Twisting facts to support one’s own goals and interests

Individual Factors Contributing to Political Behavior

ü Traits that encourage political action:


o High self-monitors o Internal locus of control
o High need for power

ü Situational influences leading to illegitimate political actions o Lower


organizational investment o Greater number of perceived alternatives o
Greater expectations of success

Organizational Factors Contributing to Political Behavior

ü Organizational resources declining or distribution shifting ü Opportunity


for promotion exists ü Organizational culture issues o Low trust o Role
ambiguity o Zero-sum reward allocation o Democratic decision making
o High performance pressures o Leading by poor example
o Unclear performance evaluation systems

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This exhibit summarizes the extensive


Responses to Organizational Politics research on the relationship between
organizational politics and individual
outcomes. Most employees will not engage
in a high level of politics and often react
negatively to politics. Their reactions
include decreased job satisfaction,
increased anxiety and stress, increased
turnover, and a reduction in performance.
Even though the given outcome for the
individual employee who engages in
politics may be favorable, it is often a
negative impact for the group as a whole.

IMPRESSION MANAGEMENT: The process by which individuals attempt to control the


impression others form of them
ü People may misrepresent themselves in situations of high uncertainty or
ambiguity
ü Misrepresentations may discredit the individuals – seen as insincere or
manipulative

Using Impression Management

q IM and interviews:
o Self-promotion and ingratiation work well
q IM and performance evaluations:
o Ingratiation positively related o Self-promotion is
negatively related
Impression management has shown to be effective in different situations, such as job
interviews and performance evaluations. It is important that in an interview you set forth a positive
impression. Many applicants utilize IM to get the interviewer to like them. Self-promotion is seen
as important because it shows confidence; however, in an interview, ingratiation is not as
effective. Albeit, in performance evaluations ingratiation has been found to be a positive
technique and linked to higher rankings. However, self-promotion does not work as well in this
context. Most research on employee reactions to organizational politics is U.S.-based; the few
studies that have been done elsewhere suggest minor modifications may be necessary to our
understanding.
You must be aware of your context when utilizing IM techniques in order to get the outcome
desired.

The Ethics of Behaving Politically

Is political behavior ethical in the workplace? Well, the answer is probably yes and no. It
is difficult to tell ethical from unethical politicking. There are three questions that can help define
ethical/unethical political behavior:
1. What is the utility of engaging in the behavior?
2. Does the utility balance out any harm done by the action?
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3. Does the action conform to standards of equity and justice?

The answers to these questions can help you decide if the behavior is ethical or unethical. One
of the most useful ways to think about power and politics is in terms of your own career.

IV. ACTIVITIES / EXERCISES

1. Which “bases of power” are most effective in your opinion? Justify your answer.
2. Make an exhibit of a political map based on your hypothetical relationships with one of your
major subject professors upon whom your career depends. Use the below diagram as an
example:

V. ASSESSMENT

Answer the following


1. Contrast leadership and power.
2. Define the five bases of power.
3. List and define nine influence tactics.
4. Describe the effective use of influence tactics.
5. List the individual and organizational factors that stimulate political behavior.
6. Identify and describe the seven techniques for managing the impression one makes
7. List the three questions that can help determine if a political action is ethical.

VI. SUMMARY

Implications for Managers


ü As a manager who wants to maximize your power, you will want to increase others’
dependence on you.
ü You will not be alone in attempting to build your power bases.
ü Try to avoid putting others in a position where they feel they have no power.
ü By assessing behavior in a political framework, you can better predict the actions of others and
use that information to formulate political strategies that will gain advantages for you and your
work unit.
ü Help others understand the importance of becoming politically savvy.

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Keep in Mind…
Informal, expert, and referent power are the most important.
Use consultation and inspirational appeals.
The effectiveness of IM techniques depends on the setting.

Chapter 14: Conflict and Negotiation

I. LEARNING OBJECTIVES / OUTCOMES

After studying this chapter, you should be able to:


1. Understand the nature of conflict.
2. Know the differences between the traditional, interactionist and managed-conflict views of
conflict.
3. Learn the conflict process.
4. Understand the nature of negotiation.
5. Learn distributive and integrative bargaining.
6. Know the five steps of the negotiation process.
7. Understand how individual differences influence negotiations.
8. Explain the roles and functions of third-party negotiations.
9. Understand cultural differences in negotiations.

II. INTRODUCTION

Managers in organizations need to be able to effectively deal with conflict and to negotiate with
people inside and outside of the organization. These two skill sets are critical for managerial success.

III. LESSON PROPER

CONFLICT is a process that begins when one party perceives that another party has
negatively affected, or is about to negatively affect, something that the first party cares about.
Primarily deals with perception. If nobody thinks there is conflict, then no conflict exists.
Conflict can be experienced in an organization through many different avenues. It can be that the
goals of the individuals are incompatible or there is a difference of opinion over the interpretation of
facts. Many conflicts also arise through disagreements about how people should behave.
The traditional view of conflict believes that conflict is bad and should be avoided as much
as possible. This view was more prevalent in the 1930s and 40s than it is today. This view held that
conflict was the result of poor communication, lack of openness, or failure to respond to employee
needs. All these things are negative and can be fixed. Thus, management thought that conflict could
be fixed and should be fixed.
The interactionist view of conflict does recognize that even though functional conflict can
support the group’s goals and improve its performance there is also dysfunctional conflict that hinders
group performance. This type of conflict should be avoided, controlled, or minimized as much as
possible.
Functional conflict will work toward improving group performance while dysfunctional conflict
will hinder group performance.

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Types of Conflict
Three categories of conflict:
1. Task conflict: Work content and goals. Arises when there is conflict over the
content and/or goals of the work. If this type of conflict exists at low to moderate
levels, then this is a functional conflict that can help individuals seek clarification
or new ideas on how to accomplish their goals.
1. Relationship conflict: Interpersonal relationships. Based on problems between
individuals and is almost always dysfunctional.
2. Process conflict: How the work is done. Occurs when there is disagreement on how
the work gets done. Low levels of process conflict represent functional conflict.

Loci of Conflict

Desired Conflict Levels Another way


Level of Conflict to understand conflict is to
Source of consider where it occurs – its
Conflict locus.
Low Moderate High
Three sources of conflict:
Dyadic conflict: Conflict between two
Task Functional Dysfunctional people
Intragroup conflict: Conflict
Relationship Dysfunctional
occurring within a group or team
Process Functional Dysfunctional Intergroup conflict: Conflict
between groups or teams
In sum, the traditional view that all conflict should be eliminated is short-sighted. The
interactionist view that conflict can stimulate active discussion without spilling over into negative,
disruptive emotions is incomplete. Thinking about conflict in terms of type and locus help us
realize that conflict is probably inevitable in most organizations. Therefore, it’s important to
manage the variables of the conflict process.

The Conflict Process

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Stage I: Potential Opposition


Stage I of the conflict process is potential opposition or incompatibility. In this stage there
are three main conditions that can cause conflict to arise. They are communication, structure,
and personal variables.
Ø Communication
o Barriers exist
o Too much or too little
Ø Structure
o Group size, age, diversity
o Organizational rewards, goals, group dependency
Ø Personal Variables
o Personality types
o Emotionality

Stage II: Cognition and Personalization


Stage II looks at the recognition or cognition of the conflict and the personalization or the
emotional part of the conflict. As stated earlier, in order for conflict to be present there must be
an awareness of its existence, defined as perceived conflict. Once people are aware of the
conflict, emotions are expressed that can impact the outcome of the conflict; this is defined as felt
conflict. Emotions can include anxiety, tension, frustration, or hostility.

q Perceived conflict: awareness needed for actualization


q Felt conflict: emotional involvement - parties experience anxiety, tension, frustration, or hostility

Stage III: Intentions


Stage III starts to look at the intentions of the individuals involved. These intentions include the
determination to act in a certain way, but it is important to realize behavior does not always
accurately reflect intention. Sometimes people act out of emotion and not rational thinking.
Five conflict handling intentions:

1. Competing
2. Collaborating
3. Avoiding
4. Accommodating
5. Compromising

Using two dimensions – cooperativeness (the degree to which one party attempts to
satisfy the other party’s concerns) and assertiveness (the degree to which one party attempts to
satisfy her own concerns) – we can identify five conflict handling intentions: competing (assertive
and uncooperative); collaborating (assertive and cooperative); avoiding (unassertive and
uncooperative); accommodating (unassertive and cooperative); and compromising (midrange on
both assertiveness and cooperativeness).

Stage IV: Behavior


Stage IV moves us beyond intentions to the chosen behavior in the conflict. This is when conflict
becomes visible. Usually each party is using overt attempts to implement their own intentions.

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This step may cause a reaction in


others, either because the individual
miscalculated someone’s intentions
or he or she was not skilled in
translating his or her intentions into
behavior. This can cause functional
conflicts that may be helpful, or
dysfunction conflicts that can be
highly destructive.
Functional conflicts are usually at
the lower range of the continuum,
while conflicts that reach the upper
range of the continuum are almost always
dysfunctional.

Stage V: Outcomes
Stage V looks at the outcomes of conflict resolution.

q Functional Outcomes:
o Improves decision quality o Stimulates creativity and innovation
o Encourages interest and curiosity o Problems are aired
o Accepts change and self-evaluation
q Dysfunctional Outcomes:
o Group is less effective
o Reduces cohesiveness and communications o Leads to the
destruction of the group

Managing Functional Conflict


If managers recognize that in some situations conflict can be beneficial, they can encourage people
to challenge the system and develop fresh ideas.
Minimize counterproductive conflict:

ü Recognize when there really is a disagreement


ü Encourage open, frank discussion focused on interests
ü Have opposing groups pick important issues and work for
mutual satisfaction
ü Emphasize shared interests

NEGOTIATION: Process that occurs when two or more parties decide how to allocate scarce
resources

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There are two main


approaches:
Distributive bargainingseeks
to divide up a fixed amount of
resources and often creates a
win/lose situation.
Integrative bargaining seeks
one or more settlements that
can create a win-win situation
for all parties involved.
This exhibit depicts distributive bargaining. Each negotiator has a target point that defines
his goals and a resistance point that marks the lowest acceptable outcome. The area between
these points is the settlement range in which both parties’ goals can be met.

Integrative bargaining: A win-win solution is possible But:


• Parties must be open with information and candid about their concerns
• Both parties must be sensitive regarding the other’s needs
• Parties must be able to trust each other
• Both parties must be willing to be flexible

The Negotiation Process


The negotiation process is best
understood through
the negotiation process. The
grid in this slide outlines the
steps:

1. Preparation and planning,


2. Definition of ground rules,
3. Clarification and justification,
4. Bargaining and problem solving, and 5. Closure and
implementation.

You should determine your BATNA and that of the other party
before proceeding with negotiations.

BATNA represents the Best Alternative To a Negotiated


Agreement or the lowest acceptable value you will take for a
negotiated agreement. Then anything above your BATNA is a good
negotiated outcome.

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Individual Differences in Negotiation Effectiveness


Many individual differences are interwoven in the negotiation process and impact the effectiveness of
the outcomes.

q Personality traits will impact outcomes as extroverts tend to be weaker at negotiation


because they will want people to like them. Intelligence is not an indicator of effective
negotiation skills.
q Mood and emotion can impact negotiations as anger is often an effective tool in distributive
bargaining, whereas positive moods are helpful in integrative bargaining situations. q
Culture also plays a role in negotiations and the styles utilized. American negotiators will
often make the first offer where Japanese negotiators will often wait. North Americans
use facts to persuade, Arabs use emotions, and Russians speak more in ideals. Brazilians
tend to say no when negotiating much more than Americans or Japanese negotiators will
do so.
q Gender can also impact negotiation effectiveness. Men and women tend to approach
negotiations in the same way but may view the outcomes differently. Women may appear
more tender in the process where men come across as tough. On the average, men are
more likely to be negotiators than women.

IV. ACTIVITIES / EXERCISES

Self-analysis
Remember your last negotiation activity. This activity could have been as simple as asking
someone out for a date or as complex as trying to purchase a home. Describe that negotiation
using the terms and concepts from this chapter. What could you have done better to increase
your likelihood of success in the negotiation? Be specific.

V. ASSESSMENT

Using the table below, write the possible interventions for the five Sources of Conflict:

NATURE OF CONFLICT POSSIBLE INTERVENTION


Data Conflict

Values Conflict

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Relationship Conflict

Structural Conflict

Interest Conflict

VI. SUMMARY

Implications for Managers ü Choose an


authoritarian management style:
§ In emergencies
§ When unpopular actions need to be implemented § When the
issue is vital to the organization’s welfare
ü Seek integrative solutions:
§ When your objective is to learn
§ When you want to merge insights from people with different perspectives
§ When you need to gain commitment by incorporating concerns into a
consensus
§ When you need to work through feelings that have interfered with a relationship
ü Build trust by accommodating others:
• When you find you’re wrong
• When you need to demonstrate reasonableness
• When other positions need to be heard
• When issues are more important to others than to yourself
• When you want to satisfy others and maintain cooperation
• When you can build social credits for later issues
• To minimize loss when you are outmatched and losing
• When employees should learn from their mistakes
ü Consider compromising when:
• Goals are important but not worth potential disruption
• Opponents with equal power are committed to mutually exclusive goals
• You need temporary settlements to complex issues

Keep in Mind… ü Conflict is an inherent part of organizational life: probably necessary for optimal
organizational function
ü Task conflict is the most constructive
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ü Most effective negotiators use both types of bargaining and know the appropriate tactics

Chapter 15: Foundations of Organization Structure

I. LEARNING OBJECTIVE / OUTCOME

After studying this chapter, you should be able to:


1. Know the six elements of an organization’s structure.
2. Understand the characteristics of the three most common organizational designs.
3. Learn the characteristics of the virtual organization, the boundaryless organization, and leaner
organizations.
4. Understand how organizational structures differ and contrast mechanistic and organic
structural models.
5. Learn the behavioral implications of different organizational designs.

II. INTRODUCTION

The theme of this chapter is that organizations have different structures and the
structures have a bearing on employee attitudes and behavior. Therefore, it is important that
managers be able to identify the correct structure to use in a given situation.

III. LESSON PROPER

ORGANIZATIONAL STRUCTURE depicts how job tasks are formally divided, grouped,
and coordinated. The key elements of organizational structure include work specialization,
departmentalization, chain of command, span of control, centralization, decentralization, and
formalization.

Key Questions and Answers


This exhibit presents each element as an answer to
an important structural question.

v Work Specialization

A key part of organizational structure is


understanding the degree to which tasks are
divided into separate jobs or work specialization.
Also known as the division of labor, which is
helpful in creating the most efficient way to
utilize employee skills, increase their skills, and maximize their input.

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Work specialization can cause


greater economies, but in some cases it can
cause diminishing returns due to repetition,
which can lead to boredom. Job
enlargement can be more effective at
creating greater efficiencies than work
specialization.

This exhibit shows economies and


diseconomies of work specialization.

v Departmentalization
It is defining how jobs are grouped together. There are a number of options to choose
from when grouping jobs; you could organize around function, product, location, process, or
customer. When jobs are grouped, departments are formed.

v Chain of Command
Represents the line of authority present in decision making. Embedded in the chain of
command is the inherent right of a manager to give orders and expect the orders to be followed.
Unity of command is the idea that a subordinate should have only one superior to report to so
that directions and the chain of command are clear. As organizations change this concept is
becoming less and less important.

v Span Of Control
This concept looks at how many workers a manager can effectively direct toward
organizational goals. Wider span allows for more efficiency because you need fewer managers.
However, it can also limit the amount of time and direction managers can give to their employees.
A narrow span can allow for more direction but can add layers of management, increase the
complexity of the vertical communication, and encourage overly tight supervision, limiting employee
autonomy.

The exhibit illustrates that wider spans of control have fewer levels and fewer managers.

v Centralization and Decentralization


Centralization is the degree to which decision making is concentrated at a single point in
the organization, typically at the top. Decentralization represents an organization that spreads
decision making throughout the organization.
Only includes formal authority: positional rights. Highly centralized when top managers
make all the decisions. Decentralized when front-line employees and supervisors make decisions.
Trend is toward increased decentralization

v Formalization
_Is the degree to which jobs within the organization are standardized. When there is high
formalization workers have very little control over how they do their work and they will be required
to follow a number of rules and procedures. Lower formalization will tend to allow for different job
behaviors to get the job done, giving workers more control over their work.

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Common Organizational Designs


Three common organizational designs:
1. Simple structure
ü Low degree of departmentalization
ü Wide spans of control
ü Authority centralized in a single
person
ü Little formalization
ü Difficult to maintain in anything other
than small organizations
2. Bureaucracy
ü Highly routine operating tasks achieved
through specialization
• Formal rules and regulations
• Centralized authority
• Narrow spans of control
• Tasks grouped by functional
departments
• Decision making follows the
chain of command
3. Matrix structure
ü Combines two forms of departmentalization
- Functional
- Product
- Dual chain of command
Advantages:
- Facilitates coordination and efficient allocation of specialists
Disadvantages:
- Possible confusion, fosters power struggles, stress

Matrix Structure for a College of Business Administration

New Design Options


1. Virtual Organization-A small core organization that outsources its major business functions
ü Highly centralized with little or no departmentalization
ü Provides maximum flexibility while concentrating on what the organization does
best

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ü Reduced control over key parts


of the business
2.Boundaryless organization:
ü Eliminates the chain of
command
ü Has limitless spans of control
ü Replaces departments
with empowered teams
ü Breaks down geographical
barriers

The Leaner Organization: Downsizing- In


the midst of tough economic times and the
need for companies to be leaner, downsizing
has been on the rise.
Downsizing is a systematic effort to make an organization leaner by ridding itself of
business units, excessive locations, and staff. It has been very controversial because of the
strong negative impact on employees. Because of this negative impact, the link to performance
enhancement has been questioned.

Two Models of Organizational Design

This slide shows two extreme


models of organizational design – the
mechanistic model and the organic model.
Several factors discussed next influence
which type of structure is best for an
organization.

Determinants of Structure

1. Organizational Strategy

Ø Innovation strategy: introduce new offerings – prefer organic structures


Ø Cost-minimization strategy: cost control – prefer mechanistic structures
Ø Imitation strategy: minimal risk and maximum profit – both structures used

2. Organization Size - Move toward mechanistic structure as size increases


3. Technology- Routine activities prefer mechanistic structures, non-routine prefer organic
structures
4. Environment- Dynamic environments lead to organic structures

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Organizational Designs and Employee Behavior


• Cannot generalize any link between structure and performance o
Too much individual variance
• Consider employee preferences for:
o Work specialization
o Span of control
o Centralization
• National culture influences organizational structure
o High power distance cultures accept mechanistic structures

IV. ACTIVITY / EXERCISES

Choose one activity.


1. Brick & Mortar vs. Brick & Click vs. Click & Buy. Today’s retail world is increasingly
moving online in an effort to woo customers. Research and identify a retailer from
each of these three types: (1) brick & mortar: on-ground presence only, (2) brick &
click: on-ground and online presence, (3) click & buy: online presence only. Describe
the structures of each of these three firms in terms of the six key elements given in the
chapter. Draw a generalized organizational chart for each type of retail organization
based on your research.
2. (If the student has internet connection available.) Search the web to find three
articles on an organization that has changed its structure in the recent past (downsized
or increased in scale). Carefully read the articles and describe what happened using
structural terms from this chapter. What kinds of internal and external reactions were
there to the structural change? What was the impact of the change on the
organization’s effectiveness (e.g., perhaps as measured by its stock price)?

REFLECTION
Examine your own work/student life: consider the jobs/positions you have held and
organizations with which you have been associated. Based on your experiences, what type of
organizational structure appears to suit your best? Why? Relate your own attitudes, behaviors,
and values to the organizational structures described in this chapter.

V. ASSESSMENT

ENUMERATION
Organizational Structure Key Common Organizational Designs
Elements 1. SIMPLE STRUCTURE
• _______________________ 2.______________________
• DEPARTMENTALIZATION 3.______________________
• _______________________ •
_______________________ • Determinants of Structure
_______________________ 1.______________________
• _______________________ 2.______________________
• FORMALIZATION 3. TECHNOLOGY

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4._______________________ B) departmentalization
C) chain of command
MULTIPLE CHOICE D) span of control
1) Which of the following is not one of the six
key elements of organizational structure? 6) Which one of the following is not one of the
A) chain of command primary ways to group jobs?
B) departmentalization A) skill
C) work specialization B) customer
D) span of control C) function
E) location of authority D) product
E) service
2) A task that is subdivided into many
separate jobs is considered to have 7) A manufacturing manager organizes a
________. plant into engineering, accounting,
A) a high degree of departmentalization manufacturing, personnel, and supply
B) a low degree of decentralization specialists’ departments. This division of an
C) a high degree of work specialization organization into groups according to work
D) a wider span of control functions is an example of ________.
E) a high degree of formalization A) social clustering
B) bureaucracy
3) A ________ allows management to make C) specialization
the most efficient use of its employees' skills D) centralization
and even successfully improve them through E) departmentalization
repetition.
A) low degree of centralization 8) Agri Producers provides services related
B) high degree of formalization to the testing of soil and crops. It also
C) wider span of control provides advice to its customers for
D) low degree of departmentalization improving the productivity of the soil and the
E) high degree of work specialization quality of the crops. It has customers all over
the United States. The crops and soil are
4) Which of the following statements is true different in the various large areas of the
regarding work specialization? nation, such as the west coast and the
A) Work specialization indicates to what Midwest. Which type of departmentalization
degree there will be rules and formalization would be best for Agri Producers?
regulations to direct employees and A) functional
managers. B) process
B) Work specialization decreases the C) product
time spent in changing tasks. D) geographic
C) Work specialization increases the E) temporal
cost of finding and training workers to do
specific and repetitive tasks. 9) Some of the departments in Procter &
D) Work specialization provides an Gamble are Tide, Pampers, Charmin, and
unending source of increased productivity. Pringles. This is an
E) Work specialization hinders efficient example of departmentalization
use of employee skills. by ________.
A) function
5) The basis by which jobs are grouped is B) process
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D) product E) interest
A) product
10) Aeronautics Inc., a parts supplier, has B) function
departments for government aircraft and C) geography
contracts, large commercial aircraft clients, D) customer
and small personal aircraft clients. This is an E) service
example of ________ departmentalization.

VI. SUMMARY

Implications for Managers


ü Excessive specialization can create dissatisfaction and reduced motivation
ü Avoid designing rigid hierarchies that overly limit employees’ empowerment and autonomy
ü Balance the advantages of virtual and boundaryless organizations against the potential pitfalls
before adding flexible workplace options
ü Downsize your organization to realize major cost savings, and focus the company around
core competencies – but only if necessary because downsizing can have a significant
negative impact on employee affect

Keep in Mind…
ü As tasks become more complex and required skills more diverse, more use of
crossfunctional teams
ü Simple structures are easy to create but difficult to grow
ü External boundaries can be reduced through globalization, strategic alliances,
customerorganizational links, and telecommuting

Chapter 16: Organizational Culture

I. LEARNING OBJECTIVES / OUTCOMES

At the end of this lesson you should be able to:


1. Understand organizational culture and describe its common characteristics.
2. Learn and compare the functional and dysfunctional effects of organizational culture on
people and the organization.
3. Explain the factors that create and sustain an organization’s culture.
4. Know how culture is transmitted to employees.
5. Understand how an ethical culture can be created.
6. Know what a positive organizational culture is.
7. Understand the characteristics of a spiritual culture.
8. Understand how national culture may affect the way organizational culture is transported
to a different country.

II. INTRODUCTION

This chapter examines organizational culture: the effects culture has on members within
the organization; how members learn the culture; and how it can be changed.

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III. LESSON PROPER

ORGANIZATIONAL CULTURE is an important concept in studying how organizations


behave. Culture is defined as a common perception held by the members of the organization or
a sense of shared meaning.
There are seven primary characteristics define organizational culture. They are:
innovation and risk taking, attention to detail, outcome orientation, people orientation, team
orientation, aggressiveness, and stability.
Culture is concerned with the way employees perceive their culture, not whether they like
it or not. Job satisfaction, in contrast, is evaluative in nature and gets at how employees respond
to certain factors in their work context.

Do Organizations Have Uniform Cultures?


The dominant culture expresses the core values that are shared by a majority of the
organization’s members
Ø Subcultures tend to develop in large organizations to reflect common problems,
situations, or experiences of members. Subcultures mirror the dominant culture
but may add to or modify the core values

In a strong culture, the organization’s core values are both intensely held and widely shared
Strong cultures will: o Have great influence on the behavior of members o Increase
cohesiveness
o Result in lower employee turnover

Culture versus Formalization


Formalization and culture are two different roads to a common destination. The stronger
an organization’s culture, the less management needs to be concerned with developing formal
rules and regulations to guide employee behavior. Those guides will be internalized in employees
when they accept the organization’s culture.

The Functions of Culture


• Defines boundaries
• Conveys a sense of identity
• Generates commitment beyond oneself
• Enhances social stability
• Sense-making and control mechanism

Organizational climate: The shared perceptions organizational members have about their
organization and work environment
Ø Positive climate is linked to higher customer satisfaction and financial performance

Culture as a Liability
• Institutionalization- Behaviors and habits go unquestioned – can stifle innovation
• Barriers to change- Culture is slow to change – even in a dynamic environment
• Barriers to diversity- Culture seeks to minimize diversity. Can embed prevalent bias and
prejudice

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• Barriers to acquisitions and mergers- Cultural incompatibility can be a problem

How a Culture Begins


Ultimate source of an organization’s culture is its founders.

Founders create culture in three ways:


1. Hiring and keeping those who think and feel the same way they do
2. Indoctrinating and socializing those employees to their way of
thinking and feeling
3. Acting as a role model and encouraging employees to identify with
them A culture is kept alive in three main ways.
n Selection: seek out those who fit in
n Top management: establish norms of behavior by their actions
n Socialization: help new employees adapt to the existing culture

A Socialization Model
The socialization process involves a few
steps. The employee will learn about the
organization through literature, interviews and
other people in the pre-arrival stage. Once the
employee starts interacting with other
employees, the employee enters the encounter
stage where he or she sees what the
organization is really like. Expectations are
measured against reality during this stage, and
a misalignment may emerge. During the third
stage, metamorphosis, the new employee
adjusts to the organization and work.

Entry Socialization Options

There are a number of possible socialization programs. Each organization needs to select
one that best fits its culture. When the socialization process matches an organization’s culture, it
will have positive outcomes including higher productivity, greater commitment, and lower turnover.

How Cultures Form


• Formal: new workers separated for • Informal: new workers immediately put to
• training • work
Collective: group basis Individual: one-on-one

Fixed: planned activities Variable: no timetables
• •
Serial: role models used Random: on your own
• Divestiture: strip away characteristics to • Investiture: accepts and confirms existing
• build up new ones characteristics

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How Employees Learn Culture


Employees learn the organizational culture
through a number of avenues.
n Stories: provide explanations
n Rituals: reinforce key values
n Material symbols: convey importance,
degree of egalitarianism desired, and
appropriate behaviors
n Language: identify and segregate members

As cultures are created, it is important to incorporate ethics into cultural norms early on.
Certain characteristics will help develop high ethical standards, such as a high tolerance for risk
so people are not afraid to make mistakes; low to moderate in aggressiveness so that unethical
behaviors are avoided, and a focus on the means as well as the outcomes so that ethics is
embedded in both.
Managers must be visible role models and communicate ethical expectations. Training
on ethical behavior and guidelines must be done and ethical acts must be rewarded while
unethical acts need to be punished. In addition, protective mechanisms must be in place to assist
the workers in behaving ethically.
A positive organizational culture is one that builds on employee strengths so that
employees can develop and grow. It also rewards more than it punishes, so employees are not
afraid to try new things and feel good about what they are contributing. Finally, it emphasizes
individual vitality and growth so that employees are operating at full potential. The idea of a
positive organizational culture is new and the jury is still out on how and when it works best. We
do know, however, that not all national cultures value being positive as much as U.S. culture does.
Moreover, even within U.S. cultures, there are limits as to how far U.S. companies should go.
These limits may be dictated by industry.

IV. ACTIVITIES / EXERCISES

Select a Philippine company, read its Mission and Vision Statement. Interview some managers
and employees from that organization:

1. Find out what their corporate culture is;


2. Classify the organization’s culture using the typology model (below). Explain your
classification decision; and
3. What Filipino values are at work in the company?

TYPES/QUADRANT PHILIPPINE INDUSTRIES


I – Organic – Internal Maintenance (CLAN) Architecture, Healthcare, Pharmaceuticals,
Retail, Social Welfare
II – Organic – External Positioning Computer Hardware/Software, Consulting,
(ADHOCRACY) Education, Engineering, Print/Publishing
III – Mechanistic – Internal Maintenance Banking and Finance, Government, Social
(HIERARCHY) Welfare, Transport

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IV – Mechanistic – External Positioning Architecture, Chemicals/Oils, Distribution,


(MARKET) Food and Beverage, Manufacturing, Property
Development, Services, Utilities

V. ASSESSMENT

Answer the following:

1. Describe the seven key characteristics that capture the essence of the organization's
culture.
2. Contrast organizational culture and job satisfaction.
3. Identify the functional and dysfunctional effects of organizational culture on employees.
4. List the factors that maintain an organization's culture.
5. Identify and describe the phases of organizational socialization.
6. How can culture be transmitted to employees? Provide examples for each.
7. Explain how an ethical culture can be established.
8. What is a positive organizational culture and what key variables are used in creating it?
9. What is the relationship between national culture and a global organization’s
organizational culture?

VI. SUMMARY

Implications for Managers ü Realize that an organization’s culture is relatively fixed in the short
term. To effect change, involve top management and strategize a long-term plan.
ü Hire individuals whose values align with those of the organization; these employees will
tend to remain committed and satisfied.
ü Understand that employees’ performance and socialization depend to a considerable
degree on their knowing what to do and not do. Train your employees well and keep them
informed of changes to their job roles.
ü Your company’s organizational culture may not be transportable to other countries.
Understand the cultural relevance of your organization’s norms before introducing new
plans or initiatives overseas.
Keep in Mind… ü Organizational culture develops over time and reflects deeply held values to
which employees are strongly committed
ü Ethical and positive organizational cultures can be created – methods differ ü National
culture influences organizational culture

Chapter 17: Human Resource and Policies

I. LEARNING OBJECTIVE / OUTCOME

After studying this chapter, you should be able to:


1. Know initial selection and understand the most useful methods.
2. Understand substantive selection and learn the most useful methods.
3. Know contingent selection and understand the arguments for and against drug testing.
4. Understand the four main types of training.

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5. Understand formal and informal training methods.


6. Learn on- the-job and off-the-job
7. Understand the purposes of performance evaluation and methods by which it can be done.
8. Know how managers can improve performance evaluations.
9. Learn how organizations can manage work-family conflicts.
10. Understand how a global context affects human resource management.

II. INTRODUCTION

This chapter is about change. We describe environmental forces that require managers
to implement comprehensive change programs. We also consider why people and organizations
often resist change and how this resistance can be overcome. We review various processes for
managing organizational change. We also discuss contemporary work stress issues for today’s
managers.

III. LESSON PROPER

How does the selection process work?

q After the applicant applies for a job, he/she then goes to the initial selection to decide
whether an applicant meets the basic qualifications using application forms and
background checks. If not, applicant is rejected.

In the initial selection, applicants submit their first information devices used for
preliminary rough cuts to decide whether the applicant meets the basic qualifications for a job.
Initial selection devices include application forms (including letters of recommendation).
Background checks, although can be considered a contingent selection device, some HR prefer
to look into an applicant’s background right away. About 80% of employers conduct background
checks on their applicants at some point in the hiring process because they want to know how an
applicant did in past jobs and whether former employers would recommend hiring the person.
About 2/3 of employers only give general reference information on applicants because they are
afraid of being sued for saying something bad about a former employee.
Application forms, although not a very good predictor of performance might be a good
initial screen. For example, applicants who are not registered nurse for a registered nurse position
has no sense spending time for an interview because he/she doesn’t have a proper credentials.
Questions about race, gender and nationality is not allowed and might put the company and
manager in jeopardy.
Letters of recommendation are also a form of background check but most of them tends
to be favorable and biased to the applicants’ side so the employer would either ignore them or
“read between the lines” to extract the hidden meaning in them. Some employers would also
check the applicants’ credit histories and criminal records because not checking can carry a legal
cost.

q Applicant that meets the basic qualifications will proceed to the substantive selection
where the HR determines the most qualified from those who passed the basic qualification

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using written tests, performance tests and interviews. Applicants who are less qualified
than others are rejected.

Substantive selection is the heart of the selection process where applicant that passes
the initial screen advances. It includes written tests, performance- simulation tests and interviews.
Written tests called “paper-and-pencil” tests have been fluctuating in the past several
decades. Typical written tests include: (1) intelligence or cognitive ability tests (2) personality test
(3) integrity tests (4) interest inventories. Intelligence tests have proven to be particularly good
predictors for jobs that include cognitively complex tasks. Personality tests are inexpensive and
simple to administer.
Performance- Simulation tests have higher face validity which measures whether
applicants perceive the measures to be accurate. Two best known examples are the work sample
tests and assessment centers.

- Work sample tests are hands-on simulations of part or all of the work that applicants for
routine jobs must perform. Each work sample element is matched with a job-performance
element of measure applicants’ knowledge, skills, and abilities with more validity than
written aptitude and personality tests. Work sample test is usually done in hiring welders,
machinists, carpenters, and electricians.

- Assessment centers are specifically designed to evaluate a candidate’s managerial


potential. This is done by line executives, supervisors, and trained psychologists. To
reduce the cost of job simulations, many organizations have started to use situational
judgement tests, which ask applicants how they would perform in a variety of job situations
and compare their answers to those of high-performing employees.

Interviews are the most common method of substantive selection. To reduce bias and
improve the validity of interviews, managers should adopt a standardized set of questions, a
uniform method of recording information, and standardized ratings of applicants’ qualifications.
Interview effectiveness also improves when employers use behavioral structured interviews.

q Applicants who is among the best qualified will advance to the contingent selection where
the HR will make a final check before making offer to applicants like drug tests and
background check. Those who fail contingent selection will be rejected.

If applicants pass the substantive selection methods, they are ready to be hired,
contingent on a final check. One common contingent method is a drug test.

Drug testing is controversial. Some think that testing without reasonable suspicion is
invasive or unfair and say they should be tested on job-performance factors, not lifestyle choices
that may not be relevant.
Employers may require applicants to have medical exams to determine whether an
applicant is physically fit and mentally stable to do the job or sometimes employers use medical
exams to find out whether and how they can accommodate employees with disabilities. Some
jobs that require medical exams because of exposure to heavy physical or psychological
demands are traffic controllers and firefighters.

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Types of Training

1. Basic Literacy skills


-Statistics showed that 40% of US labor force and 50% of high school graduates don’t
possess the basic work skills needed in workplace.

2. Technical skills
-Reasons to improve technical skills: Ø
New technology
Ø New structural designs in the organization.

3. Interpersonal skills
-Others require training to improve listening, communicating and team-building skills.

4. Problem- Solving skills


-To sharpen their logic, reasoning, and problem-defining skills as well as their abilities to
assess causation, develop and analyze alternatives, and select solutions.

Ethics training
To recognize ethical dilemmas and become aware of the ethical issues underlying their actions.

Formal Training vs. Informal Training


Historically, training is deemed to be formal, planned in advance and having a structured formal.
However, recent study suggests that about 70% of workplace takes informal training –
unstructured, unplanned, and easily adapted to situations and individuals – for teaching skills and
keeping employees current. In reality, informal training is helping fellow employee out. They share
information and solve work-related problems together.

On-the-Job Training vs. Off-the-Job Training


On-the-job training methods include job rotation, apprenticeships, understudy assignments, and
formal monitoring programs. But because they often disrupt the workplace, organizations invest
in off-the-job training. Off-the-job training includes live classroom lectures, videotapes, public
seminars, self-study programs, internet courses, satellite-beamed television classes, and group
activities that use role-plays and case studies.
The fastest-growing training medium is probably computer-based training or e-training.
Computer-based training let learners actively participate in exercises and quizzes was more
effective than a traditional classroom instruction. E-training increases flexibility because
organizations can deliver materials anywhere, anytime. Fast and efficient. But it is expensive to
design self-paced online materials. Employees miss the social interaction of a classroom, online
learners are more susceptible to distractions, and “clicking through” training without actually
engaging in practice activities provides no assurance employees have actually learned anything.

Individualizing Formal Training to Fit the Employee’s Learning Style

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Some people absorb information better when they read about it. Some people learn by
observation. Some heavily rely on their auditory senses. And some people prefer a participating
style learn by doing. We can translate these learning styles into teaching methods that maximize
learning. Good teachers recognize that students learn differently and use multiple teaching
methods: they assign readings before class; give lectures; use visual aids to illustrate concepts;
and have students participate in group projects, case analysis, role-plays, and experiential
learning exercises.

Not all training methods are equally effective. The success of training also depends on the
individual. Personality is important: those with an internal locus of control, high conscientiousness,
high cognitive ability, and high self-efficacy learn more. Climate is also important: when trainees
believe there are opportunities and resources to let them apply their newly learned skills, they are
more motivated and do better in training programs.

Performance Evaluation

Three major types of behavior that constitutes performance at work.

q Task performance is performing the duties and responsibilities that contribute to the
production of a good or service or to administrative tasks.

q Citizenship are actions that contribute to the psychological environment of the


organization, such as helping others when not required, supporting organizational
objectives, treating co-workers with respect, making constructive suggestions, and saying
positive things about the workplace.

q Counter-productivity are actions that actively damage the organization such as stealing,
damaging company property, behaving aggressively toward co-workers, and avoidable
absences.

Most managers believe good performance means doing well on the first two dimensions and
avoiding the third.

Purposes of Performance Evaluation

n To help management make general human resource decisions about promotions,


transfers, and terminations.

n To identify training and development needs.

n To provide feedback to employees for the basis for reward allocations including merit pay
increases.

What do we evaluate?

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Management should evaluate an employee’s task on outcomes such as quantity


produced, scrap generated, and cost per unit of production for a plant manager or on overall sales
volume in the territory, dollar increase in sales, and number of new accounts established for a
salesperson.

Organizational citizenship behavior, helping others, making suggestions for


improvements, and volunteering for extra duties make work groups and organizations more
effective and often are incorporated into evaluations of employee performance.

Having good attitude, showing confidence, being dependable, looking busy, or possessing
a wealth of experience may or may not be highly correlated with positive task outcomes, but it’s
naïve to ignore the reality that organizations still use such traits to assess job performance.

Who should do the evaluating?


Top
management
Manager ( Internal Suppliers
( Internal customer) ( External
customer) customer)

Subordinates Clients
(Internal (External
customer) customer)

Co-workers or Other
team department
members Employee representativ
(Internal es (Internal
customer) customer)

It’s advisable to use multiple sources of ratings. The latest approach to performance
evaluation provides performance feedback from the employee’s full circle of daily contacts, from
mailroom workers to customers to bosses to peers. By relying on feedback from co-workers,
customers, and subordinates, these organizations are hoping to give everyone a sense of
participation in the review process and gain more accurate readings on employee performance.

Methods of Performance Evaluation

q Written essays is the simplest method to evaluate performance by writing a narrative


describing an employee’s strengths, weaknesses, past performance, potential, and
suggestions for improvement.
q Critical incidents is way of evaluating the behaviors that are key in making the difference
between executing a job effectively and executing it ineffectively. The appraiser describes
what the employee did in a situation that was especially effective or ineffective.
q Graphic rating scales is an evaluation method in which the evaluator rates performance
factors such as quantity and quality of work, depth of knowledge, cooperation, attendance,
and initiative and rates each on an incremental scale.
q BARS (Behaviorally anchored rating scales) are scales that combine major elements
from the critical incident and graphic rating scale approaches. The appraiser rates the
employees based on items along a continuum, but the points are examples of actual
behavior on the given job rather than general descriptions or traits.

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q Forced comparison is a method of performance evaluation where an employee’s


performance is made in explicit comparison to others (e.g., an employee may rank third
out of 10 employees in her work unit.) Two most popular comparisons are group order
ranking and individual ranking. Group order ranking is an evaluation method that places
employees into a particular classification, such as quartiles. Individual ranking is an
evaluation method that tank-orders employees from best to worst

The following suggestions can make the process more objective and fairer:
• As the number of evaluators increases, the probability of attaining more accurate
information increases.
• To increase agreement among them, appraisers should evaluate only where they have
some expertise.
• Training evaluators can produce more accurate raters. Most rater training courses
emphasize changing the rater’s frame of reference by teaching them what to look for, so
everyone in the organization defines good performance in the same way.
• The concept of due process can be applied to appraisals to increase the perception that
employees are being treated fairly. 3 features characterize due process systems:
1. Individuals are provided with adequate notice of what is expected to them
2. All evidence relevant to a proposed violation is aired in a fair hearing so the
individuals affected can respond
3. The final decision is based on the evidence and free of bias.

Providing Performance Feedback

Managers are likely to ignore this responsibility:


1. Fear of confrontation when presenting negative feedback
2. Employees become defensive when weaknesses are pointed out
3. Employees have inflated assessment of their own performance

Managing work-life conflicts in organizations


1. Work-life conflicts grabbed management’s attention in the 1980s.
2. Most major organizations made their workplaces family friendly.
3. Modifying with scheduling options and benefits to accommodate the varied needs of a
diverse workforce

IV. ACTIVITY / EXERCISES


1.

Briefly explain the below initial selection process:


2. Why is training necessary? Defend your answer.

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3. Give an example of a (1) formal and (2)


informal training.

4. Among the methods of


Performance Evaluation, what do you think is
the most effective? Explain.

V. ASSESSMENT

Answer the following


1. Describe forces that act as stimulants to change.
2. Describe the sources of resistance to change.
3. Summarize Lewin's three-step change model.
4. Explain the relationship between Lewin's change model and Kotter’s plan for
implementing change.
5. Describe potential sources of, and ways of managing, work stress.
6. Explain the values underlying most organizational development (OD) efforts.

VI. SUMMARY

Implications for Managers ü If selection practices is properly designed, an organization’s


selection will identify competent candidate and accurately match them to the job and the
organization.
ü The most obvious effect of training programs is direct improvement in the skills necessary
to successfully complete the job. Increased ability thus improve potential, but whether that
potential becomes realized is largely an issue of motivation. It also increases an
employee’s self- efficacy, a person’s expectation that he or she can successfully execute
the behaviors required to produce an outcome.
ü The major goal of performance evaluation is to asses an individual’s performance
accurately as a basis for allocating rewards. If evaluation is inaccurate or emphasizes the
wrong criteria, employees will be over- or under rewarded.

Chapter 18: Organizational Change and Stress Management

I. LEARNING OBJECTIVE / OUTCOME

After studying this chapter, you should be able to:


1. Know forces that act as stimulants to change.
2. Understand the sources of resistance to change.
3. Learn the three main approaches to managing organizational change.
4. Know the two ways of creating a culture for change.

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5. Understand the potential sources and consequences of stress and describe techniques
for managing stress.
6. Learn the consequences of stress.
7. Know the individual and organizational approaches to managing stress.
8. Understand global differences in organizational change and work stress.

II. INTRODUCTION

There are many forces that stimulate change including the nature of the workforce,
technology, economic shocks, competition, social trends, and world politics. All these
things can create change in a workplace.

III. LESSON PROPER

Whenever change is present there is resistance to change. Individuals and groups


become comfortable with things that are familiar, and change threatens the status quo. There are
different ways that change is resisted by employees. It is important to note that not all change is
good. Speed can lead to bad decisions; sometimes those initiating change fail to realize the full
magnitude of the effects or their true costs. Change can be good, but change agents need to
carefully think through its implications.

Sources of Resistance
Overcoming Resistance to
Change
1. Education and communication
2. Participation
3. Building support and commitment
4. Developing positive relationships
5. Implementing changes fairly
6. Manipulation and cooptation
7. Selecting people who accept change
8. Coercion

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Approaches to Managing Organizational Change

n Lewin’s Three-Step Model of Change

In the unfreezing stage, Lewin identifies driving and


restraining forces. Driving forces are those that direct
behavior away from the status quo. Restraining forces
are those that hinder movement from the existing
equilibrium.

n Kotter’s Eight-Step Model of the Change Process

OD Interventions
1. Survey Feedback Gathering data and acting on it
2. Process Consultation Using outside consultants
3. Team Building Increase trust and openness
4. Intergroup Development Change attitudes, stereotypes, and perceptions
5. Appreciative Inquiry Discovering what the organization does right

Organizational Development

It is an area of study that is set up to determine what an organization needs to improve its
effectiveness and employee well-being.

Based on humanistic-democratic values


• Respect for people
• Trust and support
• Power equalization
• Confrontation
• Participation

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Stimulating a Culture of Innovation


q Innovation: A new idea applied to initiating or improving a product, process, or service
Sources of innovation include:
• Structure
• Culture
• Human resources

q Idea champions: Managers who actively and enthusiastically promote an idea, build
support, overcome resistance, and ensure that innovation is implemented
• Have high self-confidence, persistence, energy, and acceptance of risk
• Use inspiration and vision to gain commitment
• Have decision-making discretion

q Stress: A dynamic condition in which an individual is confronted with an opportunity,


demand, or resource related to what is desired and for which the outcome is perceived to
be both uncertain and important

Types of Work Stress:


ü Challenge Stress: associated with workload, pressure to complete tasks, and time
urgency o Can be positive
ü Hindrance Stress: comes from obstacles to achieving goals o Mostly negative
ü Usually stress is associated with demands and resources

Consequences of Stress
Stress shows itself in a number of ways, such as high blood pressure, ulcers,
irritability, difficulty making routine decisions, loss of appetite, accident proneness, and so
on. These symptoms fit under three general categories:

ü Physiological symptoms
ü Psychological symptoms
ü Behavioral symptoms

Managing Stress
Stress needs to be managed and maintained at a healthy level. Individuals often manage
stress through time management techniques, physical exercise, or expanding their social support
network. Organizations can also help employees manage stress by providing training, realistic
goal setting, solid designing of jobs, offering employee sabbaticals, and establishing a wellness
program.

IV. ACTIVITY / EXERCISES

Critical thinking questions:

1. The school you are currently attending is currently undergoing some sort of change to
adopt more closely with its environment. Discuss the external forces that are driving the
change. What internal drivers for change also exist?

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2. Any form of resistance is a symptom, not a problem, in the change process. What are
some of the real problems that may underlie resistance?

3. Change is often not a welcomed reality and we often say that individuals, like
organizations, do not like change. For example, who wants to change from a recently that
individuals (perhaps like organizations) are embracing change. Please give several
concrete examples of this phenomenon and suggest reasons as to why his might be the
case.

V. ASSESSMENT

Answer the following


1. Describe forces that act as stimulants to change.
2. Describe the sources of resistance to change.
3. Summarize Lewin's three-step change model.
4. Explain the relationship between Lewin's change model and Kotter’s plan for 5. Explain the
values underlying most organizational development (OD) efforts.
6. Describe potential sources of, and ways of managing, work stress.

VI. SUMMARY

Implications for Managers


ü You are a change agent for your organization. The decisions that you make, and your role-
modeling will help shape the organization’s change culture.
ü Your management policies and practices will determine the degree to which the
organization learns and adapts to changing environmental factors.
ü Some stress is good.
ü You can help alleviate harmful workplace stress for you and any employees you supervise
by accurately matching workloads to employees, providing employees with stress-coping
resources, and responding to their concerns.
ü You can identify extreme stress when performance declines, turnover increases,
healthrelated absenteeism increases, and engagement declines. Stay alert for early
indicators and be proactive.

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