Human Behavior in Organizations Reviewer

October 18, 2024

Lesson 1: Introduction to Human Behavior in Organizations

What is an Organization?
 Organization = consciously coordinated social unit, composed of two or more people, that functions on a
relatively continuous basis to achieve a common goal or set of goals.

What is Organizational Behavior (OB)?

 A field of study that investigates the impact individuals, groups, and structure have on behavior within
organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness
(S. P. Robbins)
o OB is the study of what people do in an organization and the way their behavior affects the
organization’s performance
 Organizational behavior is directly concerned with the understanding production and control of human
behavior in organization. (F. Luthans)

What is Organizational Behavior?

 it’s a systematic study (a science)
 interdisciplinary
 does not make generalizations

 Contingency Variables
o Variables that moderate
the relationship between 2 or more
variables (ex: situational factors)

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Importance of Organizational Behavior (OB)
 Organizational Behavior is crucial for the effective functioning of any enterprise.
o It provides insights into how individuals, groups, and structures interact within an organization,
influencing its overall success
 By understanding organizational behavior, leaders can foster a positive work culture, enhance productivity,
and improve employee satisfaction
 It also helps in managing conflicts, encouraging teamwork, and adapting to changes in the external
environment
 Ultimately, a deep understanding of organizational behavior enables organizations to achieve their goals
efficiently and sustainably in a competitive world

 The following describe the importance of OB:

o OB provides a road map to our lives in organizations
o A manager in a business establishment is concerned with getting things done through delegation
o The field of OB is useful for improving cordial industrial / labor relations
o OB helps in motivating employees
o OB helps effective utilization of human resources

Summary
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.

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 October 29, 2024

Lesson 2: Diversity in organizations

Organizational Behavior
 Organizational Behavior is the science that studies the harmony and impact of individuals, groups, and
structure in an organization to work efficiently towards a goal

Diversity
 Each one of us is unique and possesses a quality that differentiates us from others
 Diversity in the workplace has come a long way through time
 Two Levels of Diversity
(a) Surface Level Diversity – Easily perceived characteristics, such as gender, race, ethnicity, age, or
disability. Less significant overtime.
(b) Deep Level Diversity – Differences in values, personality, and work preferences. More important
in the long run.
 Why is it important?
o DISCRIMINATION
 Originally, refers to noting of a difference between things. In common usage, it means
making judgments about individuals based on stereotypes regarding their demographic
group.
 It is about making judgments about individuals based on stereotypes regarding their
demographic group.
 Discrimination in the Workplace
 It refers to the unfair judgment to the employees wherein instead of being judged
with their individual characteristics in the workplace, they are instead being judged
based on their demographic group.
 Forms of Discrimination in the Workplace
 Discriminatory Policies or Practices
 It is an act where it denies equal opportunity to perform, or it grants
unequal rewards for the performance of an employees
 Sexual Harassment
 It is an act of unwanted sexual advances or any kinds of sexual nature to the
employees.
 Intimidation
 It is an act of bullying or overt threatening to an employee because of their
demographic group.
 Mockery and Insult
 It is an act of joking or making offensive remarks to an employee because of
their demographic group
 Exclusion
 It is an act of excluding employees from partaking in any job related
activities.
 Incivility
 It is an act of rudeness or disrespectful treatment towards an employee.

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 o STEREOTYPING
 It means judging someone based on one’s perception of the group to which that person
belongs
 Stereotype Threat
 the degree to which individual internally agree with the generally negative
stereotyped perceptions of their groups, with that comes a fear of being judged
when they are identified with the negative connotations of that group

Biographical Characteristics
 This refers to personal characteristics that are objective and easily obtained from personnel records. These
characteristics are known as surface-level differences.
(a) Age
 Why is it an issue?
 Aging workforce
 Mandatory retirement is outlawed
 Effects of Age
 Regarding turnover, the older you are, the less likely you are to quit
 Older workers have longer tenure.
 Older employees have lower rates of avoidable absence versus younger employees
 No relationship between age and job performance
 Older workers tend to be more satisfied with their work, report better relationships
with co-workers, and are more committed to their organizations.
 Law
 Anti-Age Discrimination in Employment Act (Republic Act No. 10911) mandates
that no person should be discriminated against his/her age except in exempted
circumstances.
(b) Sex
 Gender Discrimination
 Glass Ceiling
 Gender bias
 Pay gap
 Maternal Wall Bias
 Law against sex discrimination
 Labor Code and Magna Carta for Women (Republic Act No. 9710): It is unlawful for
any employer to discriminate against any woman employee with respect to the
terms and conditions of employment solely on account of her sex.
(c) Race and Ethnicity
 Race is the heritage people use to identify themselves
 Ethnicity is the additional set of cultural characteristics that often overlaps with race.
 Racial and ethnic minorities report higher levels of discrimination in the workplace
 Some industries are less racially diverse than others
 Discrimination leads to increased turnover
 Positive Diversity Climate
 In an organization, an environment of inclusiveness and an acceptance of diversity.

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 (d) Disabilities
 Refer to observable characteristics such as missing limbs, illnesses requiring the use of a
wheelchair, or blindness.
 Hidden Disabilities
 Disabilities that is not obvious unless disclosed by the individual, allowing employees
discretion over whether to reveal their disabilities
 Individuals with disabilities tend to encounter lower performance expectations and are less
likely to be hired
 Technology and workplace advancements have greatly increased the scope of available jobs
for those with all types of disabilities.
 Laws supporting individuals with disabilities:
 Americans with Disabilities Act (ADA, 1990): Employers are required to make
reasonable accommodations so workplaces are accessible to individuals with
physical or mental disabilities.
 Americans with Disabilities Act Amendments Act of 2008 (ADAAA): U.S.
organizations must accommodate employees with a broad range of impairments;
however, employees must disclose their conditions to be eligible for workplace
accommodations and employment protection.
 Magna Carta for Disabled Persons (Republic Act No. 7277):
o Section 5. stipulates equal employment opportunities for persons with
disabilities (PWDs), subject to the same terms and conditions as regular
workers, including equal compensation, benefits, allowances, and
incentives.
o Section 8.provides tax incentives for private companies hiring PWD workers,
with an additional deduction of 25% of the total amount paid in salaries and
wages for PWD workers.

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Other Differentiating Characteristics
 These are deep-level differences that provide opportunities for workplace diversity, as long as
discrimination can be overcome.
(a) Tenure
 Seniority and tenure, meaning time spent in a job, organization, or field.
 Good predictor of employee productivity.
 Not linear
(b) Religion
 Employers are prohibited by law from discriminating against employees based on religion in
many countries.
(c) Sexual Orientation and Gender Identity
 QUILTBAG
 to describe individuals who are queer/questioning, undecided, intersex, lesbian,
transgender, bisexual, asexual, or gay
 SEXUAL ORIENTATION
 an inherent or immutable enduring emotional, romantic or sexual attraction to
other people
 GENDER IDENTITY
 One's innermost concept of self as male, female, a blend of both or neither.
 One's gender identity can be the same or different from their sex assigned at birth
 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
(d) Cultural Identity
 A link with the culture of family ancestry or youth that lasts a lifetime, no matter where the
individual may live in the world

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Ability
 It refers to an individual' s capacity to perform the various tasks in a job
 It has two set factors: intellectual & physical
(a) Intellectual Ability
 It refers to the capacity to do mental activities, such as thinking, reasoning, and problem
solving.
 IQ Test
 One of the common tool in measuring someone’s intellectual capabilities that is
quantifiable.
 Dimensions of Intellectual Ability

Verbal Comprehension Perceptual Speed

Number Aptitude
It is an ability to understand what is It is an ability to identify visual
It is an ability to do speedy and
read or heard and the relationship of similarities and differences quickly
accurate arithmetic
words to each other and accurately

Inductive Reasoning
Deductive Comprehension
It is an ability to identify a logical DIMENSIONS OF
It is an ability to use logic and assess
sequence in a problem and then INTELLECTUAL ABILITY
the implications of an argument.
solve the problem

Spatial Visualization
Memory
It is an ability to imagine how an
It is an ability to retain and recall
object would look if its position in
past experiences
space were changed

 General Mental Ability

 Also known as ‘GMA’
 It refers to an overall factor of intelligence, as suggested by the positive correlations
among specific intellectual ability dimensions.

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 (b) Physical Ability
 It refers to the capacity to do tasks that demand stamina, dexterity, strength, and similar
characteristics.
 Nine Basic Physical Ability
Strength Factors Flexibility Factors Other Factors

Dynamic Strength Extent Flexibility Body Coordination

It is an ability to exert muscular force It is an ability to move the trunk and It is an ability to coordinate the
repeatedly or continuously over time back muscles as far as possible simultaneous actions of different
parts of the body

Trunk Strength Dynamic Flexibility Balance

It is an ability to exert muscular It is an ability to make rapid, It is an ability to maintain equilibrium
strength using the trunk (particularly repeated flexing movements. despite forces pulling off balance.
abdominal) muscles

Static Strength Stamina

It is an ability to exert force against It is an ability to continue maximum
external objects effort requiring prolonged effort
over time

Explosive Strength
It is an ability to expend a maximum
of energy in one or a series of
explosive acts

 Implementing Diversity Management Strategies

i) Diversity – refers to variety of origins or backgrounds; differences
ii) Management – process of organizing, planning, leading, and controlling
resources within an entity
iii) Diversity Management – are organizational actions to promote inclusion of diverse
employees in organization’s structure through specific policies and programs

 Attracting, Selecting, Developing, and Retaining Diverse Employees

 According to Rally Recruitment Marketing (2023), there are 12 strategies in
Attracting and Retaining Diverse Talents
 But, the first step that should be done is Diversify Talent Pipeline
1. Build relationships with affinity organizations
2. Seek out minorities at academic institutions
3. Partner with state workforce agencies
4. Utilize online directories and platforms
5. Meet people where they congregate
6. Be thoughtful about how your interacting with diverse talent

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  Attracting, Selecting, Developing, and Retaining Diverse Employees
 Next step is to Ensure a fair and unbiased selection process
7. Consider you selection criteria
8. Look at your job postings
9. Blind screening applications
10. Celebrate and observe all holidays and heritage months
11. Go beyond just acknowledging a holiday or heritage month
12. Encourage dialogue

 Diversity in Groups
 Because of increased awareness and sensitivity among different origins, hence the
increasing diversity in organizations
 But, when groups try to increase diversity by adding just one person from a
“different” background, it tends to be very hard for that person to contribute
effectively
 “The Rule of Three”
o It is an idea about power and tokenism, and how to increase diversity in
groups. Broadly speaking, it suggests that you need 3 people from any
minority group before they feel confident enough to speak. The idea seems
to be rooted from Iceland, “feminist paradise” since a lot of research focuses
on how organizations have more women in positions of authority
o “Until 3 members of the non-dominant group are present, they typically
won’t speak up, and if they do, they will often not be heard”
 Diversity means consciously building groups with people from and within a wide
range of:
o Background
o Age
o Race
o Skills
o Specialties
o Finally, organizations must also be mindful of biases.

 Effective Diversity Programs

 Organizations use a variety of diversity programs in recruiting and selection policies,
as well as training and development practices. Effective and comprehensive
workforce programs encouraging diversity have 3 distinct components: Legal
Framework and Job Opportunities, Better Service to Customers, and Personal
Development Practices.
 What does an Effective Diversity Program look like?
o 1.Information-based
o 2.Mentoring
o 3.Targeted Recruiting
o 4.Diversity and Inclusion Training
o 5.Diversity Managers
o 6.Frequent Reassessment

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Summary
This chapter discussed how our differences compliments each other and saw diversity from a different perspective.
Diversity management must be an on-going commitment in companies to improve the climate for diversity
effectively. Also, to ensure that awareness and sensitivity is applied to create a safe space for the workforce without
bias or discrimination.

October 29, 2024

Lesson 3: Attitudes and Job Satisfaction

3.1 Attitudes
What is Attitude?
 Attitudes are evaluative statements— either favorable or unfavorable— about objects, people, or events. it
represents how people feel and think about aspects of their job, organization, and colleagues, influencing
how they behave.
 3 Components of an Attitude
a. Cognitive Component – Our thoughts, beliefs, and ideas about something
b. Affective Component – Feelings or emotions that something evokes
c. Conative or Behavioral Component – Tendency or disposition to act in certain ways toward
something. Emphasis is on the tendency to act, not the actual acting; what we intend and what we
do may be quite different

3.2 Attitudes and Behavior

Attitude and Behavior
A. The attitudes that people hold determine what they do
 Attitude >> Behavior
B. Leon Festinger - argued that attitudes follow behavior
 Behavior >> Attitude
 Note: Other researchers agreed that attitudes predict future behavior.

Cognitive Dissonance
 Cognitive dissonance is any incompatibility an individual might perceive between two or more attitudes or
between behavior and attitudes.
 When there is a dissonance, people will alter either the attitudes or the behavior, or they will develop a
rationalization for the discrepancy.
 Festinger proposed that the desire to reduce dissonance is determined by three moderating factors:
o Importance of the elements creating dissonance
o Degree of influence we believe we have over the elements.
o rewards of dissonance

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Most Powerful Moderators of the Attitudes relationship:
(1) Importance of Attitude – If an attitude is not very important then it' s gonna have a lesser relationship with
the behavior
(2) Correspondence to behavior – Attitudes are more likely to predict behavior when they are specific and
relevant to the behavior in question.
(3) Accessibility – Attitudes that are easily accessible in memory are more likely to influence behavior
(4) Presence of social pressures – The relationship between attitude and behavior is stronger, when the social
pressure is more present.
(5) Whether a person has direct experience with the attitude – Attitudes based on personal experience tend to
be stronger and more predictive of behavior than those based on indirect information

3.3 Job Attitudes

What is a Job Attitude?
 Refers to an individual’s evaluation or emotional orientation toward their job, organization, or specific
aspects of their work. It encompasses how employees feel, think, and intend to act in their workplace.
 The Major Job Attitudes
(a) Job Satisfaction – Reflects how content employees are with their job roles, responsibilities, and work
environment; how happy or content an employee is with their job
(b) Job Involvement – Represents how much an individual identifies with their job and is invested in its
performance
(c) Psychological Empowerment – The extent to which employees feel that their work is meaningful
and they have a sense of control to their works
(d) Organizational Commitment – The degree to which an employee is loyal to, identifies with, and is
willing to remain with their organization
 Has three types
o Affective – Emotional
o Continuance – Practical, or in need of the benefits
o Normative – Sense of Responsibility
(e) Perceived Organizational Support – Reflects how much employees believe their organization values
their contributions and cares about their well-being.
(f) Employee Engagement – The level of enthusiasm, dedication, and effort employees put into their
work

Why do they matter? Why should they be considered and be studied?

Performance Organizational Culture

Positive job attitudes can boost productivity and Positive job attitudes contribute to a healthy, supportive
efficiency, while negative attitudes can lead to poor culture that fosters teamwork and cooperation. Negative
performance and reduced work quality attitudes can create a toxic environment with conflicts
and dissatisfaction

Retention and Turnover Adaptability to Change

Employees with positive job attitudes are more likely to Employees with positive attitudes are often more
stay with the organization, while negative attitudes can adaptable to organizational changes, while negative
increase turnover rates. attitudes can create resistance

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3.4 Job Satisfaction
How do we measure Job Satisfaction?
 There are two approaches that are popular:
(a) The single global rating
(b) The summation of job facets

3.5 Causes of Job Satisfaction

(a) Job Condition
o the intrinsic nature of the work itself, social interactions, and supervision.
o strongest correlation with overall satisfaction.
(b) Personality
o measured thru core self-evaluations (CSEs) that evaluates an individual’s believe in their inner worth
and capabilities
o positive CSEs employees are more satisfied with their job
(c) Pay
o correlates with job satisfaction and overall happiness of many people
o its effect may be smaller once an individual reaches a standard level of comfort living
(d) Corporate Social Responsibility (CSR)
o self-regulated actions to benefit the society or the environment beyond what is required by the law
increases job satisfaction to employees whose personal values fits the company ' s CSR
o must be managed well to be most effective as there are issues towards the employees

3.6 Outcomes of Job Satisfaction

What results from Job Satisfaction?
(a) Job Performance
o happy workers are more likely to be. productive workers
o increases company’s effectivity.
(b) Organizational Citizenship Behavior (OCB)
o workers positively talking about their organization, helping co-workers, and going beyond the
expectations of their jobs
(c) Customer Satisfaction
o A measurement that determines how happy customers are with a company ' s products, services,
and capabilities.
o A study shows that satisfied frontline employees, who regularly interact with customers, tend to
increase customer satisfaction and loyalty.
(d) Life Satisfaction
o Life satisfaction is a cognitive evaluation which is particularly dependent on social comparisons with
other important reference groups as well as an individual' s desires, expectations, and hopes. It is
also associated with such as job, marriage, income, family, and leisure activities.
o According to various research studies, including those conducted in Europe and Germany, job
satisfaction is positively correlated with life satisfaction.

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3.7 Impact of Job Dissatisfaction
Responses to Job Dissatisfaction
 EVLN Framework
o used to examine the way in which employees respond to dissatisfaction and problematic events,
making it a useful tool of measuring employees’ responses within the workplace
o EVLN = Exit, Voice, Loyalty, Neglect

 Exit
 Active and Destructive
 Exit is when employees try to leave a frustrating situation by quitting, resigning, or moving to a
different team.
 Researchers measure the impact of this response by looking at individual terminations (when a
single person leaves) and collective turnover (when a significant number of employees leave).
 Voice
 Active and Constructive
 Employees openly share their frustrations or suggest improvements to the management.
 This includes suggesting changes, raising issues with management, or even participating in union
activities
 Loyalty
 Passive and Constructive
 In this response, employees stay committed to the organization despite their dissatisfaction, hoping
that conditions will improve over time.
 Loyal employees may even defend the organization if it faces external criticism, showing optimism
and faith in its potential to address issues
 Neglect
 Passive and Destructive
 This can lead to behaviors that reduce productivity and quality.
 Neglect can quietly harm the organization by diminishing overall performance and morale over time.

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  Counterproductive Work Behavior (CWB)
o Counterproductive work behavior (CWB), also known as “Deviant Behavior " includes any intentional
behavior on the part of an organization member viewed by the organization as contrary to its
legitimate interests, negatively affecting the organization and its functioning (Gruys and Sackett,
2003).
o Causes of CWB
 Job Dissatisfaction
 Vocational Misfit
 Lack of fit with the organization
 Social Environment
 Abusive Supervision
o Idiosyncratic Factors
 It is an unusual way in which a particular person behaves or thinks

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 November 25, 2024

CHAPTER 6: PERCEPTION AND INDIVIDUAL DECISION MAKING

6-1 Explain the factors that influence perception

 What is Perception?
o A process by which individuals organize and interpret their sensory impressions in order to give
meaning to their environment
o Why is perception important in the study of OB?
 People’s behavior is based on their perception of what reality is, not on reality itself
 Factors that influence perception:
 Perceiver
o The perceiver is the individual who is interpreting or making sense of a situation,
object, or person. The perceiver’s personal characteristics play a significant role
in shaping their perception.
o Example: A supervisor with a preference for early work hours may see early-
arriving employees as more conscientious, even if no evidence supports this
assumption.
 Target
o The target is the object, person, or event being perceived. Its characteristics
influence how it is interpreted, particularly in relation to its environment.
o Example: A professor wearing casual attire might be perceived as approachable
or innovative, while one in formal clothing may be seen as more traditional.
 Context
o The context refers to the environmental and situational factors surrounding the
perceiver and the target. These external factors can significantly influence
perception.
o Example: A person dressed in flashy attire might seem ordinary at a nightclub
but would draw attention in a formal Monday morning class.

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 6-2 Describe attribution theory
 Person Perception: Making Judgements about others
o Perception concepts most relevant to OB:
 Person perceptions – or the perceptions people form about each other.
 Attribution Theory – An attempt to determine whether an individual’s behavior is
internally or externally caused
 Depends largely on 3 factors:

Refers to whether a person behaves differently in different situations. It evaluates how

unique the behavior is to the specific context or task.

Example:
Distinctiveness
 If an employee is late to a meeting but is punctual for all other events, their tardiness
has high distinctiveness and might be attributed to an external factor (e.g., traffic).
 If the same employee is late to meetings and other events, the behavior has low
distinctiveness, suggesting an internal cause (e.g., lack of time management).

Refers to how others behave in the same situation. It evaluates whether the behavior is
common or rare among people facing the same circumstances.

Example:
Consensus
 If all employees arrive late to work because of bad weather, high consensus suggests an
external factor (e.g., a storm).
 If only one employee is late while others arrive on time, low consensus suggests an
internal cause (e.g., personal disorganization).

Refers to whether a person behaves the same way over time in similar situations. It evaluates
the reliability of the behavior.

Example:
Consistency
 If an employee is late to every meeting, the behavior shows high consistency,
suggesting an internal cause (e.g., habitual tardiness).
 If the employee is rarely late and only misses one meeting, low consistency might
indicate an external factor (e.g., an unexpected emergency).

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  Person Perception: Making Judgements about others
o Errors or biases distort attributions
the tendency to overemphasize internal (personal) factors
and underestimate external (situational) factors when
explaining other people's behavior.

Fundamental Attribution Error Example:

If a coworker misses a deadline, you might assume they’re
lazy or disorganized (internal factor) rather than considering
they might have faced unexpected challenges (external
factor) like a family emergency.

the tendency to attribute one’s successes to internal factors

and one’s failures to external factors. This bias protects self-
esteem and enhances self-image.

Self-serving Bias Example:

If you perform well on a project, you might credit your hard
work and talent (internal factor).
If you perform poorly, you might blame unclear instructions
or lack of support from teammates (external factor).

 Common shortcuts in Judging others (HEURISTICS)

 Selective Perception
o tendency to focus on and interpret information that aligns with our own
beliefs, values, and interests while ignoring contradictory information.
 Halo Effect
o tendency to let one positive trait or impression influence our overall
perception of a person.
 Contrast Effect
o tendency to judge someone in comparison to others, rather than
evaluating them on their own merits.
 Stereotyping/Generalizations
o tendency to assign traits to individuals based on the group they belong
to, without considering their unique qualities.

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  Specific Applications of Shortcuts in Organizations
o Employment Interview
 During interviews, evaluators may form quick judgments based on limited information,
often influenced by biases and heuristics.
 First impressions, selective perception, and the halo effect are particularly common.
o Performance Expectations
 Managers’ expectations about employees often influence how they evaluate and
interact with them, a phenomenon known as the Pygmalion Effect or self-fulfilling
prophecy.
 If managers expect high performance from an employee, they may unconsciously create
conditions that help the employee succeed, and vice versa.
 Self-fulfilling Prophecy – a situation in which a person inaccurately perceives a second
person, and the resulting expectations cause the second person to behave in ways
consistent with the original perception
 The Pygmalion Effect – a type of self-fulfilling prophecy (SFP) in which raising manager
expectations regarding subordinate performance boosts subordinate performance
o Performance Evaluations
 Evaluators may rely on heuristics rather than objective criteria when assessing employee
performance.
 Halo effects, contrast effects, and recency bias (focusing on recent events rather than
overall performance) are common here.

6-3 Explain the link between perception and decision making

 THE LINK BETWEEN PERCEPTION AND INDIVIDUAL DECISION MAKING
o Ideally, decision making would be an objective process, but the way individuals make decisions
and the quality of their choices are largely influenced by their perceptions
o Problem – discrepancy between the current state of affairs and some desired state
o Decisions – choices made from among two or more alternatives

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 6-4 Contrast the rational model of decision making with bounded rationality and intuition
 DECISION MAKING IN ORGANIZATIONS
o In OB, there are generally accepted constructs of decision making each of us employs to make
determinations
 Rational Decision-Making Model
 Six steps
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
 Bounded Rationality
 the idea that decision-makers operate within the constraints of limited
information, time, and cognitive capacity, leading them to seek "satisficing"
rather than optimal solutions.
 Example:
o A manager selecting a vendor may not evaluate every possible option
but instead chooses the first one that meets minimum requirements due
to time constraints.
 Intuition
 refers to decision-making based on instinct, gut feelings, or experiences rather
than formal analysis or logic. It is often a subconscious process developed
through experience and pattern recognition.
 “intuition can be very useful as a way of setting up a hypothesis but is
unacceptable as ‘proof’”
 Use hunches derived from your experience to speculate, yes, but always make
sure to test those hunches with objective data and rational, dispassionate
analysis
o Common biases and errors in decision making
The tendency to overestimate the accuracy of one’s knowledge, predictions, or
Overconfidence Bias
abilities.
The tendency to rely heavily on the first piece of information (the "anchor") when
Anchoring Bias
making decisions, even if it is irrelevant or insufficient.
The tendency to seek out, interpret, and remember information that confirms one’s
Confirmation Bias
pre-existing beliefs, while ignoring or discounting contradictory evidence.
The tendency to judge the likelihood of an event based on how easily examples come
Availability Bias
to mind.
The tendency to continue investing in a decision despite evidence that it is failing,
Escalation of Commitment
due to prior investments of time, money, or resources.

Randomness Error The tendency to believe we can predict or find patterns in random events.

The tendency to prefer a sure outcome over a gamble with a potentially higher
Risk Aversion
payoff, even when the gamble has a better expected value.
The tendency to believe, after an event has occurred, that the outcome was
Hindsight Bias
predictable, even if it wasn’t.

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 6-5 Explain how individual differences and organizational constraints affect decision making
 INFLUENCES ON DECISION MAKING: INDIVIDUAL DIFFERENCES AND ORGANIZATIONAL CONSTRAINTS
o Individual Differences
 Personality
 Gender
 Mental Ability
 Cultural Differences
 Nudging
 Subtle interventions or "nudges" can influence decision-making without
restricting options.
o Organizational Constraints
 Performance Evaluation Systems
 Decision-making is shaped by how performance is measured and rewarded.
 Reward Systems
 The way rewards are structured influences behavior and decision-making
priorities.
 Formal Regulations
 Rules and policies can limit decision-making flexibility.
 System-Imposed Time Constraints
 Limited time pressures force quicker, potentially less-informed decisions.
 Historical Precedents
 Past decisions create a framework or path dependence, influencing future
choices.

6-6 Contrast the three ethical decision criteria

 ETHICS IN DECISION MAKING
o Behavioral Ethics – Analyzing how people actually behave when confronted with ethical
dilemmas

Three Ethical Decision Criteria

Utilitarian Rights Justice

Focuses on the consequences Focuses on protecting an Focuses on upholding rules in
or end results of a decision, individual's rights and a just and unbiased manner,
with the goal of maximizing privileges, such as the right to with fair benefits and costs for
the amount of good and privacy, free speech, and all people
minimizing pain information

Impose and enforce rules

Make decisions consistent fairly and impartially to ensure
Utilitarianism with fundamental liberties justice or an equitable
and privileges distribution of benefits and
costs

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 o On lying
 Lying is deadly to decision making
 Managers – and organizations – simply cannot make good decisions when facts
are misrepresented and people give false motives for their behaviors
 Lying is a big ethical problem
 Only solution is to create an environment non-conducive to lying like trusting
but verifying and rewarding honesty
 Early beliefs that have been DISPROVED by research
 We are good at detecting when we are being lied to
 People look up and to the right when they lie
 High probability of detecting lying based solely on body language and facial
expressions
 Verbal cues – liars talk less or talk more

6-7 Describe the three-stage model of creativity

 CREATIVITY, CREATIVE DECISION MAKING, AND INNOVATION IN ORGANIZATIONS
o The ability to produce novel and useful ideas
o Creativity allows the decision maker to fully appraise and understand problems, including seeing
problems other can’t see
o Three-stage Model of Creativity – proposition that creativity involves three stages
1. Causes (creative potential and creative environment)
2. Creative behavior
3. Effects/Creative Outcomes (Innovation)

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 CAUSES CREATIVE BEHAVIOR EFFECTS / CREATIVE OUTCOMES

Creative Potential: Definition: Definition:

Definition: Creative behavior refers to the Creative outcomes, or innovation,
Creative potential refers to the actions and processes individuals or refer to the tangible results that
inherent qualities, skills, and groups engage in to produce new emerge from the creative process.
cognitive abilities of an individual or ideas, solutions, or approaches. It is These outcomes can be new
group that enable them to generate the "doing" part of creativity. products, services, processes, or
novel ideas. ideas that are implemented and
Key Aspects of Creative Behavior: bring value.
Factors Influencing Creative o Idea Generation: The process of
Potential: brainstorming, ideation, or Key Aspects of Creative Outcomes:
o Personality: Traits like openness conceptualizing new possibilities. o Novelty: The outcome is new,
to new experiences, curiosity, o Problem-Solving: Finding original, or significantly different
and risk-taking foster creativity. innovative ways to overcome from existing solutions or
o Cognitive Ability: The ability to challenges or meet needs. concepts.
think abstractly, make o Risk-Taking: Being willing to o Value or Usefulness: Creativity is
connections, and think outside experiment and try new only valuable when the outcome
the box is essential for creative approaches, even with uncertain is practically useful, beneficial, or
thought. outcomes. solves a problem.
o Knowledge and Expertise: A o Persistence: Continuously o Impact: The innovative outcome
deep understanding of a subject refining and developing ideas, can transform a process,
or field provides a foundation for even in the face of obstacles or product, or market, creating a
generating innovative ideas. failure. lasting change.

Example: Example:
Creative Environment: A team in an advertising company The development of the iPhone by
Definition: brainstorming new concepts for a Apple is an example of creative
A creative environment refers to the marketing campaign, challenging behavior leading to an innovation
conditions and context that support assumptions, and creating unique, that revolutionized the smartphone
or hinder creativity. unconventional ideas is engaging in industry.
creative behavior.
Key Elements of a Creative
Environment:
o Supportive Leadership:
Encouragement, freedom, and
recognition from leaders can
foster creativity.
o Collaborative Atmosphere:
Working in teams or in open
environments allows for the
exchange of ideas and
constructive feedback.
o Resources: Access to tools, time,
and materials enhances the
ability to experiment and
innovate.
o Psychological Safety: People are
more creative when they feel
safe to express ideas without
fear of criticism or failure.

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SUMMARY
 Behavior follows perception, so to influence behavior at work, assess how people perceive their work
 Make better decisions by recognizing perceptual biases and decision-making errors we tend to commit
 Adjust your decision-making approach to the national culture you’re operating in and to the criteria your
organization values
 Adjust your decision approach to ensure compatibility with the organizational culture
 Combine rational analysis with intuition
 Try to enhance your creativity

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 November 25, 2024

CHAPTER 7: MOTIVATION CONCEPTS

7-1 Motivation and Early Theories

 What is Motivation?
o Motivation is the process that account for an individual’s intensity, direction, and persistence of
effort toward attaining a goal

 The 3 Key Elements of Motivation

o Intensity describes how hard a person tries.
 This is the element that most people talked about when motivation is the subject. However,
high intensity in work is unlikely to lead in a favorable job-performance outcomes
 Unless, of course, if that effort is channelled on the right direction
o Direction
 The kind of effort organizations should seek is an effort aligned on the right direction, with
consistency.
o Persistence
 This measure how long a person can maintain effort

7-2 Early Theories of Motivation

o Three theories of employee motivation formulated during the 1950s are probably the best known.
Although they are now of questionable validity, they represent a foundation, and practicing
managers still use these terminologies

 Hierarchy of Needs Theory

o Formulated by Abraham Maslows
o Hierarchy of 5 needs in every human being
o As each need is substantially satisfied, the
next need becomes dominant

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  Hierarchy of Needs Theory
o The 5 Needs
1. Physiological
 Includes hunger, thirst, shelter, sex, and other bodily needs
2. Safety-Security
 Security and protection from physical and emotional harm
3. Social Belongingness
 Affection, belongingness, acceptance, and friendship
4. Esteem
 Internal factors such as self-respect, autonomy, and achievement, and external
factors such as status, recognition, and attention
5. Self-Actualization
 Drive to become what a person is capable of becoming
 Includes growth, achieving, self-potential, and self-fulfilment
o A sixth need has been proposed – intrinsic values – but it has yet to gain wide public acceptance
o Using the Hierarchy of Needs Theory to Motivate Employees
 If an organization wants to motivate employees, they must first need to understand what
level of the hierarchy that person is currently on, and focus on satisfying needs at or above
that level
o Maslow’s Hierarchy of Needs’ Validity
 It is widely accepted, especially among practicing managers
 However, aside from Physiological Needs, the theory cannot be applied to all cultures.
 Still, it is important to be aware of the prevailing public acceptance of hierarchy when
discussing about motivation

 Two-Factor Theory
o “motivation-hygiene theory”
o Created by psychologist Frederick Herzberg
o Intrinsic Factors
 Related to job satisfaction
 Factors that exist within an individual
 Examples: personal advancement, recognition, responsibility, and achievement
o Extrinsic Factors
 Related to job dissatisfactions
 Environmental factors that affect a system or process from outside
 Examples: supervision, pay, company policies, and work environment
o Herzberg’s View about Satisfaction and Dissatisfaction
 Data suggests that:
 Opposite of satisfaction is NOT dissatisfaction
 Removing dissatisfying characteristics from a job does not necessarily make the job
satisfying
 Dual Continuum
 Opposite of Satisfaction is No Satisfaction
 Opposite of Dissatisfaction is No Dissatisfaction
o Factors that lead to job satisfaction are separate and distinct from those that lead to job
dissatisfaction
 Managers eliminating job dissatisfaction factors may bring peace, but not necessarily
motivation
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 o Hygiene Factors
 Conditions that when are adequate, people will not be dissatisfied; neither will they be
satisfied
 Examples: quality of supervision, pay, company policies, physical work conditions,
relationships with others, and job security

 McClelland’s Theory of Needs

o Developed by David McClelland and his associates
o States that achievement, power, and affiliation are 3 important needs that help explain motivation
o Maslow’s Hierarchy of Needs = Strict Needs for Survival
o McClelland’s Theory of Needs = Motivating Factors

McClelland’s Three Needs

Need for Achievement (nAch) Need for Power (nPow) Need for Affiliation (nAff)
It is the drive to excel, to Is the need to make others Is the desire for friendly and
achieve in a relationship to a behave in a way they would not close interpersonal
set of standards have otherwise relationships

o nAch
 High achievers perform best when they perceive their probability of success as 0.5 – that is,
a 50-50 chance.
 They dislike gambling with high odds because they get no achievement satisfaction from
success that comes by pure chance.
 Similarly, they dislike low odds (high probability of success) because then there is no
challenge to their skills.

o Relationship Between Achievement and Job Performance

(1) When jobs have a high degree of personal responsibility, feedback, and an intermediate
degree of risk, high achievers are strongly motivated
(2) A high need to achieve does not necessarily make someone a good manager, especially in
larger organizations. People with a high achievement need are interested in how well they
do personally, and not in influencing others to do well
(3) Need for affiliation and power tend to be closely related to managerial success. The best
managers may be high in their need for power and low in their need for affiliation
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 7-3 Contemporary Theories of Motivation
o Self-Determination Theory
 Is concerned with the beneficial effects of intrinsic motivation and the harmful effects of
extrinsic motivation

Self-Determination Theory
A theory of motivation that is concerned with the beneficial
effects of intrinsic motivation and the harmful effects of extrinsic motivation

Intrinsic Motivation Extrinsic Motivation

Drive to pursue an action because it is inherently Refers to doing something based on external
enjoyable or interesting to the individual rewards or outcomes associated with that action

o Goal Setting Theory

 States that specific and difficult goals, with feedback, lead to higher performance

Goal-Setting Theory
A theory proposed by Edwin Locke which states that
specific and difficult goals, with feedback, lead to higher performance

Specificity Difficulty Feedback

Acts as an internal stimulus that The more difficult the goal, the Leads to higher performance
increases performance higher the level of performance than non-feedback acts

Factors that influence the Goals-Performance relationship

Goal-Commitment Task Characteristics National Culture

Goal-Setting Theory assumes Goals themselves seem to Setting specific, difficult,
an individual is committed to affect performance more individual goals may have
the goal and determined not to strongly when tasks are simple different effects in different
lower or abandon it rather than complex, cultures
well-learned rather than novel,
independent rather than
interdependent, and on the
high end of achievable

Different Behaviors during goal pursuit

Promotion Focus Prevention Focus

A self-regulation strategy that strives for A self-regulation strategy that strives to fulfill
advancement and accomplishment and duties and obligations and avoid conditions that
approach conditions that move them closer pull them away from desired goals
toward desired goals

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 o Management by Objectives (MBO)
 A more systematic way to utilize goal-setting
 An initiative most popular in the 1970s but still used today
 Emphasizes participatively set goals that are tangible, verifiable, and measurable

o Cognitive Evaluation Theory

 A version of self-determination theory
 Holds that allocating extrinsic rewards for behavior that had been previously intrinsically
rewarding tends to decrease the overall level of motivation if the rewards are seen as
controlling
o Self-Concordance
 A more recent outgrowth of self-determination theory
 Considers how strongly people’s reasons for pursuing goals are consistent with their
interests and core values

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 7-4 Other Contemporary Theories of Motivation
o Self-Efficacy Theory
 It is an individual’s belief that he or she is capable of performing a certain task
 It is also known as social cognitive theory or social learning theory
 Self-efficacy can create positive spiral
 People with high self-efficacy tend to be more engaged in their task which in turn
increase their performance
 Feedback influences self-efficacy

 Increasing Self-Efficacy in yourself

 Albert Bandura, a researcher who developed the self-efficacy theory proposes four
ways of how to increase it:
1. Enactive Mastery
 Gaining relevant experience with the task or job
2. Vicarious Modelling
 Seeing someone do the same task as yours increases your
confidence to succeed
3. Verbal Persuasion
 Getting a positive feedback or an encouragement from someone
telling us that we have the skills necessary to be successful
4. Arousal
 Leads us to an energized state and we get “psyched up”, feel up to
the task and perform better

 Influencing Self-Efficacy in others

 The best way for a manager to use verbal persuasion is through the Pygmalion effect
o It is a form of self-fulfilling prophecy in which believing something can make
it true
 Training programs often make use of enactive mastery by having people practice
and build their skills

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 o Reinforcement Theory
 This theory states that behavior is function of its consequences.
 It ignores the inner state of the individual and concentrates solely on what happens when he
or she takes some action (external forces)
 Operant Conditioning / Behaviorism and Reinforcement
 This theory argues that people learn to behave to get something they want or to
avoid something they don’t want
 The concept of operant conditioning was part of Skinner’s broader concept of
behaviorism, which argues that behavior follows stimuli in a relatively unthinking
manner
 Social-Learning Theory and Reinforcement
 Individuals can learn by being told or by observing what happens to other people, as
well as through direct experience
 The view that we can learn through both observation and direct experience is called
social-learning theory
 Four Processes that determine influence on an Individual:
1. Attentional processes
 People learn from a model only when they recognize and pay
attention to its critical features
2. Retention processes
 Model’s influence depends on how well the individual remembers
their action
3. Motor reproduction processes
 After a person has seen a new behavior by observing the model,
watching must be converted to doing
4. Reinforcement processes
 Individuals are motivated to exhibit the modelled behavior if
positive incentives or rewards are provided

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 o Equity Theory
 A theory that says individuals compare their job inputs and outcomes with those of others
and then respond to eliminate any inequities
 According to equity theory:
 Employees compare what thy get from their job (outcomes) to what they put into it
(inputs)
 Outcomes = pay, promotions, recognition, or a bigger office
 Inputs = effort, experience, and education

 Employees who perceive inequity will make one of six choices

1) Change Inputs
o Exert less effort if underpaid or more if overpaid
2) Change Outcomes
o Individuals paid on a piece-rate basis can increase their pay by producing a
higher quantity of units of lower quality
3) Distort Perceptions of Self
o “I used to think I worked at a moderate pace, but now I realize I work a lot
harder than everyone else”
4) Distort Perceptions of Others
o “Mike’s job isn’t as desirable as I thought”
5) Choose a different referent
o “I may not make as much as my brother-in-law, but I’m doing a lot better
than my Dad did when he was my age”
6) Leave the field
o Quit the job

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 o Organizational Justice
 An overall perception of what is fair in the workplace, composed of distributive, procedural,
informational, and interpersonal justice
 Distributive Justice
o It is concerned with the fairness of the outcomes, such as pay and
recognition that employees receive
 Procedural Justice
o The perceived fairness of the process used to determine the distribution of
rewards
 Informational Justice
o The degree to which employees are provided truthful explanations for
decisions
 Interpersonal Justice
o The degree to which employees are treated with dignity and respect

 Justice Outcomes
 When employees feel fairly treated, they respond in a number of positive ways
 Fair treatment enhances commitment to the organization and makes employees feel
it cares about their well-being
 Ensuring Justice
 Depends upon the motivation of each manager
 Some managers are likely to calculate justice by their degree of adherence to the
justice rules of the organization
 Other managers may be motivated in justice decisions by their emotions
 Culture and Justice
 Workers around the world prefer rewards based on performance and skills over
rewards based on seniority
 Justice perceptions are most important to people in countries with individualistic,
feminine, uncertainty avoidance, and low power-distance values

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 o Expectancy Theory
 A theory that says that the strength of a tendency to act in a certain way depends on the
strength of an expectation that the act will be followed by a given outcome and on the
attractiveness of that outcome to the individual
1) Effort-Performance Relationship
o The probability perceived by the individual that exerting a given amount of
effort will lead to performance
2) Performance-Reward Relationship
o The degree to which the individual believes performing at a particular level
will lead to the attainment of a desired outcome
3) Rewards-Personal Goals Relationship
o The degree to which organizational rewards satisfy an individual’s personal
goals or needs and the attractiveness of those potential rewards for the
individual

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 7-5 Job Engagement
o Definition: Investment of physical, cognitive, and emotional energies into job performance
o Characteristics:
 Absorption
 Motivation
 Commitment to work
o Influencing Factors for Engagement
 Meaningful Work: Engagement is higher when employees feel their work is meaningful
and they have resources to perform effectively
 Value Alignment: A strong alignment between individual and organizational values
boosts engagement
 Inspirational Leadership: Leadership that instills a sense of mission increases
employee engagement
o Positive work outcomes of Job Engagement
a. Higher productivity
b. Fewer safety incidents
c. Lower turnover
d. Better task performance
e. Increased citizenship behavior

Challenges and Considerations

Concept of engagement is partially redundant with job attitudes like satisfaction or stress
But, unlike job satisfaction questionnaires, engagement questionnaires usually assess motivation
and absorption in a task

1. Redundancy with job 2. “Dark side” of engagement: 3. Potential for over-

attitudes (satisfaction, stress) work-family conflict, burnout engagement: loss of
perspective, negative outcomes

o Implications for Managers

a. Foster meaningful work environments
b. Provide resources and support
c. Promote value alignment and inspirational leadership
d. Monitor and address potential negative outcomes
e. Encourage work-life balance and employee well-being

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 7-6 Integrating Contemporary Theories of Motivation
o Goal-Setting Theory
 Asserts that setting specific and challenging goals leads to higher performance because
these goals direct attention and effort
 The key components of effective goal-setting include:
 Specificity = The goal must be clear and specific
 Difficulty = Goals should be challenging but attainable
 Feedback = Individuals should receive feedback on their progress
 Commitment = The person should be committed to achieving the goal

o Expectancy Theory
 Suggests that individuals are motivated to act in a certain way based on the expected
outcomes of their actions
 Employees are motivated to exert effort when the believe:
 Effort ---> Performance:
o If they put effort, they will perform well
 Performance ---> Reward:
o Good performance will be rewarded
 Reward ---> Goal Fulfillment:
o The reward will help fulfill their personal goals or needs

o Cognitive Evaluation Theory

 Suggests that external rewards can undermine intrinsic motivation
 Theory argues that people are intrinsically motivated to perform tasks when they feel a
sense of autonomy and competence
 However, when external rewards (such as money or praise) are introduced, they can reduce
intrinsic motivation if they are perceived as controlling rather than supportive
 The key idea here is that rewards can be either:
 Controlling = when the reward is seen as an attempt to control behavior, it
undermines intrinsic motivation
 Informational = when the reward provides feedback and acknowledges
competence, it can enhance motivation

o Equity Theory/Organizational Justice

 According to this theory, employees compare their inputs (effort, skills, experience) and
outcomes (salary, recognition, promotions) to those of others in similar positions
 Organization Justice expands on equity theory and includes 3 components:
 Distributive Justice = the perceived fairness of the outcomes (pay, promotions)
 Procedural Justice = the perceived fairness of the processes used to make
decisions (ex: how performance evaluations are conducted)
 Interactional Justice = the perceived fairness of interpersonal treatment and
communication during decision making processes

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 o Achievement Motivation Theory
 Focuses on an individual’s need for achievement (nAch)
 People with a high need for achievement are driven by the desire to accomplish challenging
tasks and to feel a sense of personal responsibility for their outcomes
 They prefer tasks that allow them to:
 Take personal responsibility for success or failure
 Receive feedback on their performance
 Experience moderate risks (tasks that are neither too easy nor too difficult)

o Reinforcement Theory
 Argues that behavior is a function of its consequences
 In the workplace, managers can shape employee behavior through the use of rewards and
punishments
 There are different types of reinforcement:
 Positive Reinforcement = rewarding desired behavior to encourage its repetition
 Negative Reinforcement = removing unpleasant stimuli to increase the likelihood of
a behavior
 Punishment = introducing negative consequences to discourage undesirable behavior
 Extinction = withholding rewards to stop undesirable behavior

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CHAPTER 8: MOTIVATION: FROM CONCEPTS TO APPLICATION

8-1 Motivating by Job Design: The Job Characteristics Model

o Job Design
 Definition: The way the elements in a job are organized
 Importance
 Aligning business with employees
 Securing a competitive advantage
 Increasing employee motivation
o Job Characteristics Model (JCM)
 Developed by J. Richard Hackman and Greg Oldham
 Describes jobs in terms of five core job dimensions:
(1) Skill Variety
o The degree to which a job requires a variety of different activities
(2) Task Identity
o The degree to which a job requires completion of whole and identifiable
piece of work
(3) Task Significance
o The degree to which a job has a substantial impact on the lives or work of
other people
(4) Autonomy
o The degree to which a job provides substantial freedom and discretion to
the individual in scheduling the work and in determining the procedures to
be used in carrying it out
(5) Feedback
o The degree to which carrying out the work activities required by a job results
in the individual obtaining direct and clear information about the
effectiveness of his or her performance.

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 o Motivating Potential Score (MPS)
 A predictive index that suggests the motivating potential in a job
 To compute the Motivating Potential Score (MPS), the following formula must be used:

 The higher the MPS, the more likely a job is to foster intrinsic motivation among
employees, leading to higher job success and satisfaction
 Example:
o Employee A (Nurse)
 Skill Variety =5
 Task Identity =6
 Task Significance =7
 Autonomy =4
 Feedback =5
 Therefore: MPS = 120
o Employee B (Assembly Line Worker)
 Skill Variety =3
 Task Identity =4
 Task Significance =5
 Autonomy =2
 Feedback =3
 Therefore: MPS = 24

8-2 Job Redesign

o Job Rotation
 The periodic shifting of an employee from one task to another
 It is associated with higher levels of organizational performance in manufacturing settings
o Relational Job Design
 Constructing jobs so employees see the positive difference they can make in the lives of
others directly through their work

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 8-3 Alternative Work Arrangements
o “Work that works for you”
o Ways of working that are different from the traditional 9-5 work hours
o Work arrangements that are advantageous especially to dual-earner couples, single-parents, and
such

o Flextime
 Flexible work hours
 An alternative work schedule for employees who normally work the eight-hour, five-day
workweek, usually from 8am to 5pm
 This allows employees to decide on when they want to begin and end work
 Philippine Law on Work Hours:
 Presidential Decree No. 442, Article 83 states that “The normal hours of work of any
employee shall not exceed eight (8) hours a day”
Advantages Disadvantages Limitations

 Increases employee job

 Not applicable to all jobs (ex:
satisfaction  Scheduling organizations and
teachers/professors)
 Less tardiness and absences management
 Dependent on office’s
 Less turnover  Communication
opening and closing hours
 May increase productivity

o Job Sharing
 Allows two or more individuals to split the roles and responsibilities of a traditional full-time
job
 Each of them is working part-time hours
 Divided pay
Advantages Disadvantages

 May incur bigger training and administrative

 Increases employee motivation and satisfaction costs
 Less expensive in terms of salary and benefits  Difficulties in finding two compatible part-timers
 Replacement

o Telecommuting
 Also referred to as remote work
 Refers to working at home or anywhere else the employee chooses outside of the workplace
for at least two days a week
Advantages Disadvantages Limitations

 Visibility
 Increases productivity  Trust
 Reduced office space costs  Less collaboration  Not applicable to all jobs
 Environmental savings (or not)  Often increases work hours
beyond schedule

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 8-4 Employee Involvement & Participation (EIP)
o “The more involved, the more motivated”
o A process that uses employees’ input to increase their commitment to the organizational success
o If workers are engaged in decisions that increase their autonomy and control over their work lives,
the more motivated they are

o The more involvement, the more

 motivated to do their job
 committed to the organization
 productive
 satisfied

o EIP should be tailored to Local and National Norms

 A study proved the importance of modifying practices to reflect national culture
 America – US employees readily accepted EIP programs
 India – India is consistent with high power distance which accepts and
expects difference in authority
 China – there is transition with less high power distance orientation
o ones who were accepting of traditions showed few benefits with EIP
o ones who were less traditional were more satisfied and had higher performance

o Employee Involvement Programs

1. Participative Management
 subordinates share a significant degree of decision-making power with their supervisor
 joint decision-making
 enhancing motivation through trust and confidence
2. Representative Participation
 workers participate in organizational decision making through a small group of
representatives
 putting labourers’ interest on a more equal footing with the interests of
management and stockholders by including a small group of employees as
participants in decision making
 two types: work council and board representatives
o Work Council
 Groups of nominated or elected employees who must be consulted
when management makes decisions about employees
o Board Representatives
 Employees who sit on a company’s board of directors and represent
employees’ interest
 An employee would need to feel their interest are well represented and make a
difference to the organization in order for motivation to increase

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 8-5 Using Rewards to Motivate Employees
o Employee motivation is influenced by pay, which is a critical element in driving job satisfaction and
retaining top talent
o Organizations must establish a compensation structure that balances internal equity (the value of a
job within the organization) and external equity (how competitive the pay is relative to the broader
labor market)
o The key decision for any company is whether to pay above, match, or lag the market rate, each of
which carries its own advantages and trade-offs

The process of initially setting pay levels entails balancing:

Internal Equity External Equity

 Internal equity focuses on the worth of a job to  Refers to how an organization’s pay compares
the organization with industry standards
 This is typically established through a technical  This is usually determined through pay surveys,
process called job evaluation, which helps to which provide data on competitive wages in the
assess the value of various roles within the broader market
company relative to one another  Paying competitive wages helps attract and
 The aim is to ensure that employees feel fairly retain top talent, but organizations must
compensated based on their position and balance this with their ability to manage costs
responsibilities within the organization

o Variable-Pay Program:
 Also known as pay-for-performance
 A pay plan that bases a portion of an employee’s pay on some individual and/or
organizational measure of performance
 This type of plan allows organizations to incentivize high performance while adjusting
compensation based on results

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 o Forms of Variable-Pay Plans
 Piece-Rate Pay Plans
 A pay plan where workers are paid a fixed sum for each unit of production
completed
 This incentivize employees to work faster or produce more, but may reduce quality
and pose safety risks if not properly managed
 Merit-Based Pay Plan
 A pay plan based on performance appraisal ratings
 Employees receive higher pay increases based on how well they perform in their
roles, with high performers receiving larger raises
 However, this plan is often limited by subjective evaluations and the availability of
funds for raises
 Bonus
 A pay plan that rewards employees for recent performance rather than historical
performance
 Bonuses are typically given on a short-term basis and can be adjusted based on
company performance, making them a flexible way to reward employees for
meeting specific targets
 Profit-Sharing Plan
 An organization-wide program that distributes compensation based on a company’s
profitability, often through direct cash payments or stock allocations
 Profit-sharing encourages employees to work toward the company’s success by
linking their compensation directly to organizational performance
 Employee Stock Ownership Plan (ESOP)
 A company-established benefits plan in which employees acquire stock, often at
below-market prices, as part of their compensation
 ESOPs can enhance employee satisfaction and innovation, especially when
employees feel a sense of ownership and have a stake in the company’s future
success

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 8-6 Benefits to Motivate
o Benefits are both a provision and a motivator
o Traditional organizations issue a standard package to every employee while contemporary leader
understand that each employee values benefits differently

 Flexible Benefits
o Flexible Benefits can turn into motivators
o a flexible program that turns the benefits package into a motivational tool
o individualize rewards by allowing each employee to choose the compensation package that best
satisfies his or her current needs and situation
o flexible benefits accommodates differences based on:
 age
 marital statues
 partner’s benefits status
 number and age of dependents
o Importance
 Motivator to go to work, or to choose one organization over another
 Increased employee retention, job satisfaction, and productivity
o Downside
 Costly to administrate
 Identifying motivational impact of different provisions are difficult
 Not yet global

 Intrinsic Rewards as Motivation

o The most powerful motivator? Recognition
o Employee Recognition Program:
 Encourage specific behaviors by formally appreciating specific employees contribution
 Procedures for attaining recognition are clearly identified
o Tighter budgets = nonfinancial incentives become more attractive
o Financial Incentives are motivating in the short term but in the long term nonfinancial incentives
works best
o Employee recognition are associated with self-esteem, self-efficacy, and job satisfaction
o But
 highly susceptible to political manipulation by management
 this allows managers to manipulate the system and recognize their favourites
 abuse can undermine the value of recognition programs and demoralize employees
o It is important to motivate employees by consistently recognizing their performance efforts

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 December 2, 2024

CHAPTER 9 – Foundations of Group Behavior

Distinguish Between the Different Types of Groups

 Defining GROUPS
o A group is 2 or more individuals, interacting and interdependent, who have come together
to achieve particular objectives
o Groups can be either formal or informal

 Classifying Groups
o Formal
 A formal group is defined by the organization’s structure, with designated work
assignments and established tasks.
 Behaviors team members should engage in are stipulated by and directed toward
organizational goals.
o Informal
 In contrast, an informal group is neither formally structured nor organizationally
determined.
 Informal groups in the work environment meet the need for social contact.

 Social Identity Theory

o Perspective that considers when and why individuals consider themselves members of
groups.
o Social identity theory proposes that people have emotional reactions to the failure or
success of their group because their self-esteem gets tied to whatever happens to the group
o Social identities can even lead people to experience pleasure as a result of seeing another
group suffer
o People develop many identities through the course of their lives. To experience good out
comes, we need to feel our social identities are positive.

o HOWEVER, the identity we may feel with respect to our organization is only one aspect of
our work related identities
o Within our organizations and workgroups, we can develop many identities through:
1. Relational identification, when we connect with others because of our roles.
2. Collective identification, when we connect with the aggregate characteristics of
our groups.

 Ingroup Favoritism
o occurs when we see members of our group as better than other people, and people not in
our group as all the same.

 Outgroup
o Whenever there is an ingroup, there is by necessity an outgroup, which is sometimes
everyone else, but is usually an identified group known by the ingroup’s members.

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 Social Identity Threat
 Ingroups and outgroups pave the way for social identity threat, which is akin to stereotype threat.
With social identity threat, individuals believe they will be personally negatively evaluated due to
their association with a devalued group, and they may lose confidence and performance
effectiveness.

The Group
 Describe the punctuated equilibrium model of group development show how role requirements
change in different situations
 Stages of Group Development
o Punctuated-Equilibrium Model
 A set of phases that temporary groups go through that involves transitions between
inertia and activity.

 Group Properties
o Workgroups shape members’ behavior, and they also help explain individual behavior as
well as the performance of the group itself.
o Group Property 1
 Roles
 A role, set of expected behavior patterns attributed to someone occupying a
given position in a social unit.
 Different groups impose different role requirements on individuals
Psychological Role Play and
Role Perception Role Expectation Role Conflict Interrole Conflict
Contract Assimilation

The degree to
A situation in which we comply
An individual’s A situation in which the with our role
an unwritten
view of how he How others which an expectations of perceptions and
agreement that
or she is believe a person individual is an individual’s expectations—
exists between
supposed to act should act in a confronted by different, even when we
employees and
in a given given situation. divergent role separate groups don’t agree with
employers.
situation expectations. are in them initially—
opposition. can be
surprising.

o Group Property 2
 Norms and Emotions
 Acceptable standards of behavior within a group that are shared by the
group’s members.
 Norms dictated the experience of emotions for the individuals and for the
groups
 Norms and Conformity
 is the adjustment of one’s behavior to align with the norms of the group
 Reference groups are important groups to which individuals belong or hope
to belong and with whose norms individuals are likely to conform.
 Norms and Behavior
 Norms can cover any aspect of group behavior.
 Positive Norms and Group Outcomes
 Negative Norms and Group Outcomes
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 o Group Property 2
 Norms and Culture
 Collectivist cultures have different norms than people in individualist
cultures.
 Our orientation may be changed, even after years of living in one society.
 When the individualist-primed subjects were allowed personal choice of the
task, or the collectivist primed subjects were assigned the task by an ingroup
person, they became more highly motivated.

o Group Property 3
 Status
 A socially defined position or rank given to groups or group members by
others.
 Status Characteristics Theory
o A theory that states that differences in status characteristics create
status hierarchies within groups.
o Status tends to derive from one of three sources:
a. The power a person wields over others.
b. A person’s ability to contribute to a group’s goals
c. An individual’s personal characteristics.
 Status and Norms
o In general, bringing high-status members into a group may improve
performance, but only up to a point, perhaps because these
members may introduce counterproductive norms.
 Status and Group Interaction
o People tend to become more assertive when they seek to attain
higher status in a group
 Status Inequity
o It is important for group members to believe the status hierarchy is
equitable. Perceived inequity creates disequilibrium, which inspires
various types of corrective behaviors. Hierarchical groups can lead
to resentment among those at the lower end of the status
continuum.
 Status and Stigmatization
o Although it’s clear that your own status affects the way people
perceive you, the status of people with whom you are affiliated can
also affect others’ views of you.
 Group Status
 Early in life, we acquire an “us and them” mentality.
 When high-status groups then feel the discrimination from low-status
groups, they may increase their bias against the outgroups. With each cycle,
the groups become more polarized.

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 o Group Property 4
 Size and Dynamics
 Social Loafing
o The tendency for individuals to expend less effort when working
collectively than when working individually.

o Group Property 5
 Cohesiveness
 The degree to which group members are attracted to each other and are
motivated to stay in the group.
 Cohesiveness affects group productivity. Studies consistently show that the
relationship between cohesiveness and productivity depends on the group’s
performance related norms.
 What can you do to encourage Group Cohesiveness?
 Make the group smaller
 Encourage agreement with group goals
 increase the time members spend together
 physically isolate the group
 increase the group’s status and the perceived difficulty of attaining
membership
 stimulate competition with other groups
 give rewards to the group rather than to individual members

o Group Property 6
 Diversity
 The extent to which members of a group are similar to, or different from,
one another.
 Diversity appears to increase group conflict, especially in the early stages of
a group’s tenure
 Although differences can lead to conflict, they also provide an opportunity
to solve problems in unique ways.
 Faultlines
 The perceived divisions that split groups into two or more subgroups based
on individual differences such as sex, race, age, work experience, and
education

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 Contrast the Strengths and Weaknesses

Group Decision Making

Weakness Strengths

 Time-consuming because groups

typically take more time to reach a
 Groups generate more complete
solution
information and knowledge.
 Conformity pressures
 They offer increased diversity of views.
 Dominated by one or a few members
 Increased acceptance of a solution.
 Group decisions suffer from ambiguous
responsibility

 Groupthink
 A phenomenon in which the norm for consensus overrides the realistic
appraisal of alternative courses of action.
 Groupshift
 A change between a group’s decision and an individual decision that a
member within the group would make; the shift can be toward either
conservatism or greater risk but it generally is toward a more extreme
version of the group’s original position.

Technique 1 Technique 2 Technique 3

Interacting Groups Brainstorming Nominal Group

An idea-generation process that A group decision-making method in

Members meet face to face and rely
specifically encourages any and all which individual members meet face
on both verbal and nonverbal
alternatives while withholding any to face to pool their judgments in a
interaction to communicate.
criticism of those alternatives systematic but independent fashion.

Steps:
1. Before any discussion, each
member independently writes
down ideas about the problem
2. After this silent period, each
member presents one idea to
the group
3. The group discusses the ideas for
clarity and evaluates them
4. Each group member silently and
independently rank-orders the
ideas

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 ***insert date***

CHAPTER 10: Understanding Work Teams

Why have Teams become so popular?

 There are several reasons why:
o Teams can sometimes achieve feats an individual could never accomplish
o Teams are more flexible and responsive to changing events than traditional departments
or other forms of permanent groupings
o Teams positively shapes the way we think as individuals, introducing a collaborative
mindset about even our personal decision making

Difference between Groups and Teams

 Workgroup
o A workgroup is a group that interacts primarily to share information and make decisions
to help each member perform within his or her area of responsibility
o Although they share information and act towards a common goal, they do not engage in
collective work, the group members are independent and has individual accountability
for their designated contribution
 Work Team
o A work team, on the other hand, generates positive synergy through coordination
o The individual efforts can result in a level of performance greater than the sum of the
individual inputs
o Compared to a workgroup, in a team, constant communication and handling of each
part of a task towards a common goal is done collectively
o Each member of a team has both mutual and individual accountability

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 Groups Teams

Advantages Disadvantages Advantages Disadvantages

 Great for  Less time and  Encourages  May struggle

efficiency effort spent on group with each
 Helps individual team building productivity individual
growth  May not help in  Builds growth
supporting collaboration  May have a hard
organizational and synergy time with
goals efficiency

So why is it important for an organization to have teams?

 The extensive use of teams creates the potential for an organization to generate greater outputs
with no increase in employee headcount
 Notice, however, that we said potential
 There is nothing magical that ensures the achievement of positive synergy in the creation of
teams
 Merely calling a group a team doesn’t automatically improve its performance

Types of Teams

 Problem-Solving Teams
o Groups of 5 to 12 employees from the same department who meet for a few hours each
week to discuss ways of improving quality, efficiency, and the work environment
 Self-Managed Work Teams
o Groups of 10 to 15 people who take on responsibilities of their former supervisors
 Cross-Functional Teams
o Employees from about the same hierarchical level, but from different work areas, who
come together to accomplish a task
 Virtual Teams
o Teams that use computer technology to tie together physically dispersed members in
order to achieve a common goal

Multiteam System
 A collection of two or more interdependent teams that share a superordinate goal; a team of
teams

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 Creating Effective Teams
 Team Context
o What Factors Determine Whether Teams are Successful?
 There are four contextual factors that are significantly related to team
performance which can determine whether the end results for a team can be
successful or not.
 These four are:
Performance Evaluation
Adequate Resources Effective Leadership Climate of Trust
and Reward System

A work team relies on A team requires structure, Trust is the most important Management should utilize
resources outside of the a unit will not be able to foundation of leadership, it a more hybrid
group, or provided by the function when the is what allows a team to be performance system that
organization to sustain the members can’t agree with able to accept, commit, can incorporate individual
work within one. what should be done and and follow a leaders goals member components to
who should do it. and decisions. recognize individual
If a scarcity of resources contributions and a group
happens it can reduce the In terms of learning and Having interpersonal trust reward to recognize
team’s ability of integrating each among team members can positive team outcomes.
performing its job and individual’s unique skills in help facilitate cooperation
achieving their goals. a way that can help and will reduce the need to This is because individual
everyone fit together when monitor behavior. performance evaluations
“Perhaps one of the most doing tasks, a leader is and incentives may
important characteristics needed. It also helps create a bond interfere with the
of an effective work group between individuals and development of high-
is the support the group Leaders delegate make the members more performance teams
receives from the responsibility to teams and likely to expose and trust
organization” play the role of facilitator, their vulnerabilities to
someone who makes sure others on their team
the team works together
rather than against each This level of trust within a
other team is important as well
as the way trust is
dispersed.

o Other factors that help with team effectiveness

 Role Clarity
 Psychologically Safe Environment
 Collaborative Spirit
 Reinforced Shared Purpose

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 Team Composition & Team Processes
 Team Composition
o Abilities of Members
o Personality of Members
o Allocation of Roles
o Cultural Differences
o Size of Teams
o Member Preferences

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 Team Composition & Team Processes
 Team Processes

o Common Plan and Purpose

 Effective teams begin by analyzing the team’s mission, developing goals to
achieve that mission, and creating strategies for achieving the goals
o Reflexivity
 A team characteristic of reflecting on and adjusting the master plan when
necessary
o Specific Goals
 Successful teams translate their common purpose into specific, measurable, and
realistic performance goals

SMART
 Specific – Measurable – Achievable – Relevant – Time-Bound
o Team Efficacy = a team’s collective belief that they can succeed at their tasks
o Team Identity = a team member’s affinity for and sense of belongingness to his or
her team
o Mental Models = team member’s knowledge and beliefs about how the work gets
done by the team
o Conflict Levels = conflict has a complex relationship with team performance, and
it’s not necessarily bad
 Relationship Conflicts – interpersonal incompatibility
 Task Conflicts – disagreements about task content
o Social Loafing = phenomenon where individuals exert less effort in a group task
than when working alone, often due to perceived reduced accountability and shared
responsibility

Turning Individuals into Team Players

 While teams are becoming more valuable in modern organizations, not everyone is naturally a
team player, especially in cultures that prioritize individual achievement.
 Many organizations have historically nurtured individual accomplishments, and integrating
teams into a work environment with individuals from more individualistic societies can be
challenging.
 However, with the right strategies, managers can help turn individuals into effective team
players.

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 Selecting: Hiring Team Players
 Some individuals naturally excel in teams
 When hiring, prioritize candidates who align with team goals and technical needs
 Team-oriented people are often more beneficial than top talent
 For instance, Carmelo Anthony’s scoring ability may be valuable to his basketball team, the New
York Knicks, but statistics indicate that his style of play limits the team’s overall performance.
 Personal traits like enjoying problem-solving make individuals better suited for diverse teams
that can capitalize on different perspectives

Training: Creating Team Players

 Training exercises help employees value teamwork and improve skills like communication,
problem-solving, and conflict management
 L’Oréal’s David Waldock noted that team building workshops helped shift their sales teams from
individual work to cohesive collaboration, improving overall team dynamics
 Developing an effective team doesn’t happen instantly; it requires time and intentional effort

Rewarding: Providing Incentives to be a Good Team Player

 To foster cooperation, reward systems must prioritize collaboration over competition
 For instance, Hallmark and Whole Foods offer team-based bonuses, encouraging careful
selection of team members
 However, simply changing reward systems won’t build trust overnight
 Teams that shift from a competitive to a cooperative mindset often struggle to share
information and may still make rushed, poor-quality decisions.
 Building trust takes time and consistent effort.
 Promotions, pay raises, and recognition should be given to individuals who contribute effectively
as team players – whether through mentoring, sharing knowledge, or resolving conflicts
 Recognizing both individual and team contributions ensures that selflessness and cooperation
are rewarded
 Intrinsic rewards like camaraderie and personal growth also play a key role in enhancing the
teamwork experience

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 Beware! Teams aren’t always the answer
 Teamwork demands more time and resources than individual work, with increased
communication needs, conflicts to resolve, and meetings to manage
 Therefore, the benefits of teamwork must outweigh these costs, which is not always the case
 To determine if teamwork is the best approach for a given task, you can apply three tests
o First, assess whether the task can be done better by more than one person.
 Complex tasks or those requiring diverse perspectives are better suited for
teams, while simple tasks with little need for input from others are more
appropriate for individuals
o Second, evaluate whether the work creates a common purpose or set of goals that
surpasses individual objectives
 For example, service departments in new – vehicle dealerships often create
teams that bring together customer service representatives, mechanics, parts
specialists, and salespeople
 Such teams are more effective in managing collective responsibility to meet
customer needs
o Finally, check for interdependence among the group members. Teams are most
effective when the success of the whole depends on the success of each individual.
 For example, soccer is a team sport where player’s coordination is essential
 On the other hand, swim teams, aside from relay events, are not true teams, but
groups of individuals whose performances are simply combined to determine
overall success

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 ***insert date***

Lesson Number
damn

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