Hbo Reviewer
Hbo Reviewer
For most of the past century, experts have investigated the direct How well employees modify their thoughts and behaviors to align
predictions of individual behavior and performance. with and support a new or changing environment.
One of the earliest formulas was: performance = person X · Proactive task performance
situation How well employees take the initiative to anticipate and introduce
new work patterns that benefit the organization.
Person: individual characteristics
Situation: external influences on the individuals behavior Organizational citizenship
Another formula Organizational citizenship behaviors (OCB’s): various forms of
Performance = ability X motivation cooperation and helpfulness to others that support the
The skill-and-will model organization’s social and psychological context.
`All factors critical influences on an individual’s voluntary behavior Five-factor model of personality
and performance These are direct predictors of behavior on the The five broad dimensions representing most personality traits:
workplace.
· Conscientiousness - organized, dependable, methodical,
1. Employee motivation and industrious
· Motivation: the forces within a person that affect his or her
direction, intensity, and persistence of voluntary behavior.
· Emotional stability
· Direction refers to the path along which people steer their
effort. Motivation is goal-directed.
Intensity is the amount of effort allocated with the goal. · Openness to experience
· Persistence refers to the length of time that the individual
continues to exert effort toward an objective. Employees sustain · Agreeableness
their effort until they reach their goal or give up beforehand.
· Extraversion
2. Ability
· The natural aptitudes and learned capabilities required to Five-factor model and work performance
successfully complete a task. Personality mainly affects behavior and performance through
· Aptitudes are the natural talents. motivation, specifically by influencing employees’ direction and
· Learned capabilities are the physical and mental skills and intensity of effort. All of the five-factor model dimensions predict
knowledge you have acquired. They tend to wane over time when one or more types of employee behavior and performance to
not used. some extent.
· Aptitudes and learned capabilities are the main elements of
competencies. · The Big Five dimensions cluster several specific traits, each of
which can predict employee performance somewhat different
3. Role perceptions from others in the same cluster
· The degree to which a person understands the job duties
assigned to or expected of him or her.
· The relationship between a personality dimension or trait and
performance may be nonlinear.
Role clarity exists in three forms:
· When employees understand the specific duties or
consequences for which they are accountable. 1. Conscientiousness traits of industriousness and dutifulness
· When employees understand the priority of their various tasks are the best predictors of proficient task performance.
and performance expectations. 2. Extraversion is the second best overall personality predictor
· Understanding the preferred behaviors or procedures for of proficient task performance.
accomplishing tasks. 3. Agreeableness does not predict proficient or proactive task
4. Situational factors - individual behavior and performance performance very well, but it does predict an individual’s
depend on the situation. performance as a team member as well as in customer service
jobs.
4. Openness to experience is a weak predictor of proficient
Two main influences: task performance.
Emotional stability is moderately associated with proficient task
performance. One of the best personality predictors of adaptive
· The work context constrains of facilitates behavior and
performance.
performance
· Judging information consists of two competing processes Several factors weaken the relationship
The social self The most important way to minimize the perceptual problems with
mental models is to be aware of and frequently question them. We
Social identity theory: a theory that people define themselves by need to ask ourselves about the assumptions we make.
the groups to which they belong or have an emotional attachment. Working with people from diverse backgrounds is another way to
Social identity is a complex combination of many memberships break out of existing mental models.
arranged in a hierarchy of importance.
Specific perceptual processes and problems
Stereotyping in organizations
Determining importance:
· How easily you are identified as a member of a reference Stereotyping: the process of assigning traits to people based on
group their membership in a social category.
· Your minority status in a group Shared beliefs across an entire society and sometimes across
· The group’s status several cultures.
All of us try to balance our personal and social identities, but the Why people stereotype
priority of uniqueness (personal identities) versus belongingness · As a form of categorical thinking, stereotyping is usually a
(social identities) differs from one person to the next. non-conscious ‘energy-saving’ process that simplifies our
understanding of the world.
Expressing disagreement with others is a sign of distinctiveness · We have an innate need to understand and anticipate how
and can help employees form a clear self-concept, particularly others will behave.
when that disagreement is based on differences in personal The higher the perceiver’s need for cognitive closure, the higher
values. the reliance on stereotypes.
· Motivated by the observer’s need for social identity and self-
Perceiving the world around us enhancement
Perception: the process of receiving information about and
making sense of the world around us. The combination of social-identity and self-enhancement leads to
Determining which information to notice, as well as how to the processes of:
categorize and interpret it withing the framework of our existing · Categorization
knowledge. · Homogenization
We tend to think that people within each group are very similar to
Selective attention: the process of attending to some information each other.
received by our senses and ignoring other information. · Differentiation
Influenced by characteristics of the person or object being We tend to assign more favorable characteristics to people in our
perceived. Also by context. Characteristics of the perceiver also groups than to people in other groups.
influence selective attention, usually without the perceivers Problems with stereotyping
awareness. Stereotyping distorts perceptions in various ways
When information is received through the senses, our brain · Stereotypes do not accurately describe every person in a
quickly and non-consciously assesses whether it is relevant or social category
irrelevant to us and then attaches emotional markers to the · Stereotype threat (an individual’s concern about confirming
retained information. Emotional markers help us store information a negative stereotype about his or her group). Often results in
in memory. Those emotions are later reproduced when recalling displaying the stereotype trait they are trying to avoid.
the perceived information. · It lays the foundation for discriminatory attitudes and behavior
Most of this perceptual bias occurs at unintentional (systemic)
Selective attention problems: discrimination whereby decision makers rely on stereotypes to
· The effect of our assumptions and expectations about future establish notions to he ‘ideal’ person in specific roles.
events Implicit, automatic and unintentional
· Confirmation bias
Perceptual organization and interpretations Intentional discrimination or prejudice.
We pay attention to a tiny fraction of the stimuli received by the People hold unfounded negatived attitudes toward people
senses. Even so, the human brain further reduces the huge belonging to a particular stereotyped group.
volume and complexity of the information received through Deliberate
various perceptual grouping strategies.
Attribution theory
Perceptual grouping occurs mostly without our awareness, yet it Attribution process: the perceptual process of deciding whether
is the foundation for making sense of things and fulfilling our need an observed behavior or event is caused largely by internal or
for cognitive closure. external factors.
· Categorical thinking (organizing people and objects into
preconceived categories that are stored in our long-term Three attribution rules
memory). · Consistency
· Usually grouped based on observable similarity. Object
· Or based on proximity to each other. · Distinctiveness
Another form of perceptual grouping involves filling in missing Context
information or when we think we see trends in otherwise · Consensus
ambiguous information. The attribution process is important because understanding
cause-effect relationships enables us to work more effectively with
Along with perceptual grouping, making sense of the world around others and to assign praise or blame to them.
us involves interpreting information. This happens as quickly as We react differently to attributions of our own behavior and
selecting and organizing because the previously mentioned performance.
emotional markers are tagged to incoming stimuli, which are
essentially quick judgments about whether information is good or Attribution errors
bad to us. We are strongly motivated to assign internal or external
attributions to someone’s behavior, but hits perceptual process is
Mental models also susceptible to errors.
· Self-serving bias (the tendency to attribute our favorable
outcomes to internal factors and our failures to external factors) Meaningful interaction reduces dependence on stereotypes
Associated with the self-enhancement process because we gain better knowledge about individuals and
· Fundamental attribution error. Or correspondence bias (the experience their unique attributes in action. It potentially improves
tendency to see the person rather than the situation as the main empathy toward others.
cause of that person’s behavior)
Self-fulfilling prophecy
Our perceptions can influence reality. Empathizing reduces attribution errors by improving our sensitivity
to the external causes of another person’s performance and
Contingencies of self-fulfilling prophecy behavior. But, trying to emphasize with others without spending
· The self-fulfilling prophecy effect is stronger in some time with them might actually increase rather than reduce
situations than in others. stereotyping and other perceptual biases.
· It has a stronger effect at the beginning of a relationship.
· It is stronger when several people hold the same Global mindset: developing perceptions across borders
expectations of the individual. Global mindset: an individuals ability to perceive, appreciate, and
· It is stronger among people with a history of low achievement, emphasize with people from other cultures, and to process
these people tend to have a low self-esteem, so they are easily complex cross-cultural information.
influenced by others. Includes:
· An awareness of, openness to, and respect for others views
Positive organizational behavior: a perspective of and practices in the world
organizational behavior that focuses on building positive qualities · The capacity to emphasize and act efficiently across cultures
and traits within individuals or institutions as opposed to focusing · The ability to process complex information about novel
on what is wrong with them. environments
· The ability to comprehend and reconcile inter-cultural matters
Other perceptual effects with multiple levels of thinking
Developing a global mindset
Four additional biases: · Involves improving one’s perceptions.
Halo effect · It begins with self-awareness
A perceptual error whereby our general impression of a person, · Develops through better knowledge of people and cultures
usually based on one prominent characteristic, colors our
perception of other characteristics of that person. Most likely to Chapter 4: Workplace emotions, attitudes, and stress
occur when important information about the perceived target is Emotions in the workplace
missing or we are not sufficiently motivated to search for it. Emotions influence almost everything we do in the
workplace.Often occur before cognitive processes and,
False-consensus effect consequently influence them.
A perceptual error in which we overestimate the extent to which
others have beliefs and characteristics similar to our own. Emotions:
Explanations ● physiological, behavioral, and psychological episodes
We are comforted believing that others are similar to us, experienced toward an object, person, or event that create a
particularly regarding less acceptable or diverse behavior. We state of readiness.
interact more with people who have similar views and behaviors. ● Quite short.
We are more likely to remember information that is consistent with
our own views and selectively screen out information that is ● Directed toward someone or something.
contrary to our beliefs. Our social identity process homogenizes
people withing groups
● Emotions are experiences, they represent changes in our
physiological state, psychological state and behavior.
Primacy effect
● Most of these emotional reactions are subtle, they occur
A perceptual error in which we quickly form an opinion of people
without our awareness.
based on the first information we receive about them. First
impressions are lasting impressions
Moods are not directed towards anything in particular and tend to
be long-term emotional states.
Recency effect
A perceptual error which the recent information dominates our
Types of emotions
perception of others. Most common when people make a decision
All emotions have two common features.
involving complex information.
⮚ An associated valance (core affect) signaling that the
perceived object or event should be approached or avoided.
Improving perceptions
⮚ The level of activation
Three potentially effective ways.
Emotions, attitudes, and behavior
Awareness of perceptual biases
Attitudes are judgments, whereas emotions are experiences. We
Can reduce the biases to some extent by making people more
experience emotions very briefly, whereas our attitude towards
mindful of their thoughts and actions.
something or someone is more stable over time.
But it has only limited effect.
· Teaching people to reject incorrect stereotypes has the
Beliefs
unintended effect of reinforcing rather than reducing reliance on
These are your established perceptions about the attitude object,
those stereotypes.
what you believe to be true. Each of these beliefs also has a
· Diversity training is ineffective for people with deeply held
valence, you have a positive or negative feeling about each belief.
prejudices against those groups
Improving self-awareness
Feelings
Tends to reduce perceptual biases by making people more open-
Represent your conscious positive or negative evaluations of the
minded and nonjudgmental toward others.
attitude object. Most of the time, your beliefs about something or
someone affect your feelings, but the reverse sometimes occurs.
Meaningful interaction
Your feelings about something can cause you to change your
Any activity in which people engage in valued activities.
feelings about specific beliefs regarding that target.
Contact hypotheses: a theory that the more we interact with
someone, the less prejudiced or perceptually biased we will be
Behavioral intentions
against that person.
Your motivation to engage in a particular behavior regarding the
Meaningful interaction is the strongest when people work closely
attitude object.
and frequently with each other on a shared goal that requires
mutual cooperation and reliance. Everyone should have equal
Attitude-behavior contingencies
status in that context, should be engaged in a meaningful task,
· People with the same beliefs might form quite different feelings
and should have positive experiences with each other in those
toward the attitude object because they have different valences
interactions.
for those beliefs.
· People with the same feelings toward the attitude object often ⮚ Neglect - reducing work effort, paying less attention to
develop different behavioral intentions because of their unique quality, and increasing absenteeism and lateness.
experiences, personal values, self-concept, and other individual
differences. How employees respond to job dissatisfaction depends on the
person and situation. And past experiences.
How emotions influence attitudes and behavior
Our brain tags incoming sensory information with emotional Job satisfaction and performance
markers based on a quick and imprecise evaluation of whether There is a moderately positive relationship between job
that information supports or threatens our innate drives. They are satisfaction and performance. Workers tend to be more productive
automatic and non-conscious. The experienced emotions to some extent when they have more positive attitudes toward
influence our their job and workplace.
feelings about the attitude object.
But,
Generating positive emotions at work ⮚ General attitudes don’t predict specific behaviors very well
⮚ Some employees have little control over their performance
Cognitive dissonance because their work effort is paced by work technology or
Cognitive dissonance: an emotional experience caused by a interdependence with coworkers in the production process
perception that our beliefs, feelings, and behavior are incongruent ⮚ Job performance might cause job satisfaction, rather than
with one another. vice versa.
Display rules: norms or explicit rules Two explanations why satisfied employees tend to produce
requiring us within our role to display specific emotions and to hide happier and more loyal customers.
other emotions. ⮚ Job satisfaction tends to put employees in a more positive
mood
Emotional display norms across cultures ⮚ Satisfied employees are less likely to quit their jobs
Norms about displaying or hiding your true emotions vary
considerably across cultures. Job satisfaction and business ethics
Stressors: any environmental conditions that place a physical or Receive social support
emotional demand on the person. When coworkers, supervisors, family members, friends, and
others provide emotional and/ or informational support to buffer an
Organizational constraints individual’s experience.
Includes lack of:
⮚ Equipment
⮚ Supplies
⮚ Budget funding
⮚ Coworker support
⮚ Information
⮚ Other resources necessary to complete the required work.
Interpersonal conflict Motivation: the forces within a person that affect his or her
Employees frequently disagree with each other regarding how to direction, intensity and persistence of voluntary behavior.
achieve organizational goals as well as how the work and
resources should be distributed along that journey.
Employee engagement
In organizational settings, most interpersonal conflict is caused by
structural sources such as ambiguous rules, lack of resources, Employee engagement: individual emotional and cognitive
and conflicting goals between employee departments. motivation, particularly a focused, intense, persistent, and
purposive effort toward work-related goals.
Psychological harassment: repeated and hostile or unwanted An emotional involvement in, commitment to, and satisfaction with
conduct, verbal comments, actions, or gestures that affect and the work.
employee’s dignity or psychological or physical integrity and that Also high level of absorption in the work and self-efficacy.
result in a harmful work environment for the employee.
Most employees aren’t very engaged.
Actively disengaged employees tend to be disruptive at work, not
just disconnected from work.
Work overload
Work overload is evident when employees consume more of their Employee drives and needs
personal time to get the job done.
Drives: hardwired characteristics of the brain that correct
Low task control deficiencies or maintain an internal equilibrium by producing
Workplace stress is higher when employees lack control over how emotions to energize individuals. (primary needs). Innate and
and when they perform their tasks as well as lack control over the universal.
place of work activity. The starting point of motivation because they generate emotions.
Intrinsic motivation: motivation controlled by the individual and How drives influence motivation and behavior
experienced from the activity itself.
When people seek fulfillment from doing the activity itself. Stimuli received through our senses are quickly and non-
Anchored in the innate drives for competence and autonomy. consciously tagged with emotional markers.
The mental skill set develops behavioral intentions that are
Extrinsic motivation: when people are motivated to receive acceptable to society, consistent with our own moral compass,
something that is beyond their personal control for instrumental and have high probability of achieving the goal of fulfilling those
reasons. felt needs.
Direct effort toward a reward controlled by others that indirectly
fulfills a need. Practical implications of four-drive theory
Also when employees create the own internal pressure to act in
association with external factors. The main recommendation from four-drive theory is that jobs and
workplaces should provide a balanced opportunity to fulfill the four
Does extrinsic motivation undermine intrinsic motivation? drives.
Two recommendations:
Extrinsic motivators help quantity
Intrinsic motivators help quality. ● Best workplaces help employees fulfill all four drives.
Extrinsic motivators do not undermine intrinsic motivation when ● Fulfillment of the four drives must be kept in balance.
they are unexpected, have low value relative to the intrinsic
motivator, and when they are not contingent on specific behavior. Because the four drives counterbalance each other.
Need strength can be altered through social influences. Expectancy theory: a motivation theory based on the idea that
Through reinforcement, learning, and social conditions. work effort is directed towards behaviors that people believe will
lead to desired outcomes.
Measure employee performance accurately and distribute more People learn by imitating and practicing their behaviors.
valued rewards to those with higher job performance. Increases self-efficacy. Helps acquire tactic knowledge.
They need to know that connection occurs.
Self-regulation
Increasing outcome valences
Humans beings set goals and engage in other forms of intentional,
One size does not fit all when motivating and rewarding people. purposive action.
Individualize rewards by allowing employees to choose the People self-regulate by engaging in self-reinforcement.
rewards of greatest value to them. If this isn’t possible, companies Self-reinforcement: reinforcement that occurs when an employee
should ensure that everyone values the reward. has control over a reinforces but doesn’t ‘take’ it until completing
a self-set goal.
Expectancy theory mainly explains extrinsic motivation and
ignores emotion. Goal setting and feedback
Organizational behavior modification and social cognitive theory Goal setting: the process of motivating employees and clarifying
their role perceptions by establishing performance objectives.
Organizational behavior modification Potentially improves employee performance in two ways:
Organizational behavior modification (OB Mod) ● Amplifying the intensity and persistence of effort
A theory that explains employee behavior in terms of the
antecedent conditions and consequences of that behavior. ● Giving employees clear role perceptions so their effort is
channeled toward behaviors that will improve work
performance.
A-B-Cs of OB Mod
Effective goals have several specific characteristics.
Antecedents → Behavior → consequences SMARTER
When people believe that they are under- or overrewarded, they Doesn’t directly
May attract
experience negative emotions (inequity tension). Fixed pay motivate
applicants
performance
Ways to try to reduce the inequity tension: May discourage
Most employee Minimized stress
poor performers
benefits of insecurity
● Reduce our inputs so the outcome-input ratio is similar to the from leaving
higher-paid coworker.
‘golden
● Increase our outcomes handcuffs’ may
Paid time off Reduces turnover
undermine
● Increase the comparison other’s inputs performance
Organizational
rewards create May discourage
Gainsharing
an ownership creativity Job design and work motivation
culture Motivator-hygiene theory: Herzberg’s theory stating that
employees are primarily motivate by growth and esteem needs,
not by lower-level needs.
Employees experience job satisfaction when they fulfill growth and
esteem needs (motivators)
Tends to address Employees experience dissatisfaction when they have poor
Pay variability working conditions, low job security, and other factors categorized
symptoms, not
Profit sharing may avoid layoffs as lower-order needs (hygienes).
underlying causes
during downturns Only characteristics of the job itself motivate employees, whereas
of behavior
hygiene factors merely prevent dissatisfaction.
Job characteristics model: a job design model that relates the
motivational properties of jobs to specific personal and
organizational consequences of those properties.
Stock options Core job characteristics → critical psychological states →
.outcomes
Skill variety, task identity, task significance → meaningfulness → ● Higher productivity when task identity and feedback are
work motivation improved.
Job design practices that motivate ● Positive self-talk: the process of talking to ourselves about
Job rotation our own thoughts and actions
(Extreme) training employees on all assembly stations and ● Mental imagery: the process of mentally practicing a task
rotating them through different jobs every three or four hours. and visualizing its successful completion.
Three potential benefits of job rotation.
Designing natural rewards
● It increases skill variety throughout the workday One way to build natural rewards into the job is to alter the way a
● It minimizes health risks from repetitive strain and heavy task is accomplished.
lifting Self-monitoring
● Supports multiskilling The process of keeping track at regular intervals of one’s progress
toward a goal by using naturally occurring feedback.
Self-reinforcement
Job enlargement Chapter 7
The practice of adding more tasks to an existing job. Rational choice decision making
Decision making: the conscious process of making choices
● Skill variety increases among alternatives with the intention of moving toward some
● Improves work efficiency and flexibility desired state of affairs.
Rational choice decision making selects the best alternative by
But won’t affect motivation, performance of job satisfaction. These calculating the probability that various outcomes will occur from
benefits result only when skill variety is combined with more the choices and the expected satisfaction from each of those
autonomy and job knowledge. outcomes.
Job enrichment Rely primarily on two pieces of information:
The practice of giving employees more responsibility for
scheduling, coordinating, and planning their own work. ● The probability that each outcome will occur
● The valence or expected satisfaction of each outcome
● Higher job satisfaction and work motivation
● Lower absenteeism and turnover. Rational choice decision-making process
Steps:
● To identify the problem or recognize an opportunity ● Access to limited information
● Choose the best decision process ● Limited information processing
● Discover or develop possible choices ● A tendency toward satisfying rather than maximizing when
● Select the choice with the highest value making choices
● Implement the selected choice
● Evaluate the selected choice
Additional flaws are overlooked by bounded rationality.
Programmed decisions: follow standard operating procedures. Problems with information processing
They have been resolved in the past, so the optimal solution has People evaluate only a few alternatives and only some of the main
already been identified and documented. outcomes of those alternatives.
Non-programmed decisions: require all steps in he decision model Implicit favorite: a preferred alternative that the decision makes
because the problems are new, complex, or ill-defined. uses repeatedly as a comparison with other choices.
Identifying problems and opportunities Sometimes, decision makers aren’t even aware of this favoritism.
Problems with problem identification Confirmation bias
Five of the most widely recognized problems: Humans need to minimize cognitive dissonance.
Solution-focused problems Biased decision heuristics
Some decision makers describe the problems as a veiled solution. Three of the most widely studies heuristic biases:
They fail to fully diagnose the underlying causes that need to be
addressed. ● Anchoring and adjustment heuristic
Decisive leadership A natural tendency for people to be influenced by an initial
Many leaders announce problems or opportunities before having anchor point such that they do not sufficiently move away
a change to logically asses the situation. The result is often a from that point as new information is provided
misguided effort to solve an ill-defined problem or resources ● Availability heuristic
wasted on a poorly identified opportunity. A natural tendency to assign higher probabilities to objects
Stakeholder framing or events that are easier to recall from memory, even though
Stakeholders provide (or hide) information in ways that makes the ease of recall is also affected by non-probability factors
decision maker see the situation as a problem, opportunity, or ● Representativeness heuristic
steady sailing. A natural tendency to evaluate probabilities of events or
Perceptual defense objects by the degree to which they resemble other events
People sometimes fail to become aware of problems because or object rather than on objective probability information.
they block out bad news as a coping mechanism.
Mental models
Decision makers are victims of their own problem framing due to Clustering illusion: the tendency to see patterns from a small
existing mental models. sample of events when those events are, in fact, random.
Mental models are visual or relational images in our mind of the Problems with maximization
external world. Satisficing: selecting an alternative that is satisfactory or ‘good
Identifying problems and opportunities more effectively enough’ rather than the alternative with the highest value.
One way to improve the process is by becoming aware of the five Maximizing decision makes run into trouble where there are many
problem identification biases. alternatives, those alternatives have many features, and the
Another way is to create a norm of ‘divine discontent’. Decision quality of those features for each alternative is ambiguous.
makers with this mindset are never satisfied with current When presented wit ha large number of choices, people often
conditions, so they more actively search for problems and choose a strategy that is less cognitively challenging, they don’t
opportunities. choose at all.
Or discussing the situation with colleagues and clients. Evaluating opportunities
Decision makers do not evaluate several alternatives when they
find an opportunity.
An opportunity is usually experienced as an exciting and rare
Searching for, evaluating and choosing alternatives revelation, so decision makers often tend to have an emotional
attachment to the opportunity.
Rational choice paradigm Observations from
Emotions and making choices
assumptions organizational behavior
It is impossible for humans to make perfectly rational decisions.
The rational choice view completely ignores the effect of emotions
in human decision making.
Goals are clear, compatible Goals are ambiguous, are in Emotions form early preferences
and agreed upon conflict and lack full support Our brain very quickly attaches specific emotions to information
about each alternative, and our preferred alternative is strongly
Decision makers can Decision makers have limited influences by those initial emotional markers.
calculate all alternatives and information-processing Logical analysis also influences with alternative to choose, but it
their outcomes abilities requires strong logical evident to change our initial preferences.
Even logical analysis depends on emotions to sway our decision.
Information produced from logical analysis is tagged with
Decision makers evaluate all Decision makers evaluate emotional markers that then motivate us to choose or avoid a
alternatives simultaneously alternatives sequentially particular alternative.
Emotions change the decision evaluation process
Mood and specific emotions influence the process of evaluating
Decision makes use absolute Decision makers evaluate alternatives.
standards to evaluate alternatives against an We pay more attention to details when in a negative mood. In a
alternatives implicit favorite positive mood, we rely more on a programmed decision routine.
Emotions shape how we evaluate information, not just which
choice we select.
Decision makers use factual Decision makers process Emotions serve as information when we evaluate alternatives
information to choose perceptually distorted We listen to our emotions to gain guidance when making
alternatives information decisions.
Most emotional experiences remain below the level of conscious
awareness, but people actively try to be more sensitive to these
Decision makers choose the Decision makers choose the subtle emotions when making a decision.
alternative with the highest alternative that is good Intuition and making choices
payoff enough (satisfying) Intuition: the ability to know when a problem or opportunity exists
and to select the best course of action without conscious
reasoning.
Bounded rationality: the view that people are bounded in their
decision-making capabilities. Including:
Some people rely more on intuition whereas others rely more on ● Involve several people in the evaluation.
logical analysis when making decisions. But they never
completely replace each other. Creativity
Intuition is both an emotional and a rapid nonconscious analytic Creativity: the development of original ideas that make a socially
process. recognized contribution.
The gut feelings we experience are emotional signals that have The creative process
enough intensity to make us consciously aware of them. Stages:
All gut feelings are emotional signals, but not all emotional signals
are intuition.
Intuition involves rapidly comparing our observations with deeply 1. Preparation
held patterns learned trough experience. They are mental models. The process of investigating the problem or opportunity in
When a template fits or doesn’t fit the current situation, emotions many ways.
are produced that motivate us to act. Developing a clear understanding of what you are trying to
Intuition signals that a problem or opportunity exist long before achieve through a novel solution and then actively studying
conscious rational analysis has occurred. information seemingly related to the topic.
Intuition also relies on action scrips, programmed decision 2. Incubation
routines that speed up our response to pattern matches or The period of reflective thought.
mistakes. Maintaining a low-level awareness by frequently revisiting
Action scrips are generic, so we consciously adapt them to the the problem.
specific situation. Divergent thinking: reframing a problem in a unique way and
Making choices more effectively. generating different approaches to the issue.
3. Illumination
The experience of suddenly becoming aware of a unique
● Decisions tend to have a higher value rate when leaders are idea.
decisive rather than contemplative about the available Inspiration is fleeting and can be quickly lost if not
options. documented. Might come at any time.
● Remember that decisions are influenced by both rational and 4. Verification
emotional processes Subject the ideas to detailed logical evaluation and
● Scenario planning: a systematic process of thinking about experimentation.
alternative futures and what the organization should do to
anticipate and react to those environments.
Characteristics of creative people
Evaluating decision outcomes
Decision makers aren’t completely honest with themselves when ● Cognitive and practical intelligence
evaluating the effectiveness of their decisions. Above-average intelligence to synthesize information,
Postdecisional justification analyze ideas, and apply their ideas.
Decision makers ignore or under-emphasize negative outcomes And the capacity to evaluate the potential usefulness of their
of the choice they make and overemphasize new information ideas.
about its positive features. ● Persistence
Escalation of commitment ● Knowledge and experience
Escalation of commitment: The tendency to repeat an apparently A foundation of knowledge and experience to discover or
bad decision or allocate more resources to a failing course of acquire new knowledge.
action. ● Independent imagination
Self-justification effect
People try to convey a positive public image of themselves. Organizational conditions supporting creativity
Self-justification in decision making involves appearing to be
rational and competent. ● Learning orientation: beliefs and norms that support the
Self-enhancement effect acquisition, sharing and use of knowledge as well as work
Self-enhancement: a person’s inherent motivation to have a conditions that nurture these learning processes.
positive self-concept. ● Motivation from the job itself.
Increases the risk of escalation of commitment. ● If the job is challenging and aligned with the employee’s
When presented with evidence that a project is in trouble, the self- knowledge and skills.
enhancement process biases our interpretation of the information ● Open communication and sufficient resources.
as a temporary aberration from a otherwise positive trend line. ● Organizations provide a comfortable degree of job security.
Mostly nonconsciously. ● Designing nontraditional workspaces.
Prospect theory effect ● Support from leaders and coworkers.
A natural tendency to feel more dissatisfaction from losing a
particular amount than satisfaction from gaining an equal amount.
Motivates us to avoid losses, which typically occurs by taking the Activities that encourage creativity
risk of investing more in that losing project. Cornerstones of creativity in organizations:
Escalation of commitment is the less painful option at the time.
Suck costs effect ● Hiring people with strong creative potential
The value of resources already invested in the decision. ● Providing a work environment that supports creativity
People inherently feel motivate to invest more resources in ● Activities that help employees think more creatively
projects that have sunk costs. ● Four types of creativity-building activities
A variation is time investment. ● Redefine the problem
Sunk costs can take the form of closing costs, the financial or ● Associative play
nonfinancial penalties associated with shutting down a project. Variations:
Escalation of commitment is usually framed as poor decision ● Literally play games
making, but persistence may be the better choice under some ● Systematically investigating all combinations of
circumstances. characteristics of a product, event or other target.
Evaluating decision outcomes more effectively ● A challenge to use existing unrelated products.
● Cross-pollination
● Ensure people who made the original decision are not the When people from different areas of the organization
same people who evaluate that decision. exchange ideas or when new people are brought into an
Minimizes the self-justification effect. existing team.
But the second person might continue to escalate the project ● Design thinking
if he or she emphasizes with the decision maker, has a
similar mindset, or has similar attributes such as age. Design thinking
● Publicly establish a preset level at which the decision is A human-centered, solution-focused creative process that applies
abandoned or reevaluated. both intuition and analytical thinking to clarify problems and
But conditions are often complex. generate innovative solutions.
● Find a source of systematic and clear feedback. Four rules:
● The human rule Informal groups
Design thinking is a team activity. Why do informal groups exist?
Designers need to empathize with clients and end users and
involve them in the design process. ● Human beings are social animals
● The ambiguity rule ● Social identity theory
Creativity and experimentation are possible only when there ● They accomplish personal objectives that cannot be
is ambiguity in the problem and its potential solutions. achieved by individuals working alone.
Design thinkers preserve ambiguity rather to seek clarity too ● We are comforted by the mere presence of other people
quickly.
● The re-design rule
Designers review past solutions to understand how Informal groups and organizational outcomes
inventions tried to satisfy human needs. Informal groups potentially minimize employee stress. This
They find out how those solutions tried to work as well as improves employee well-being.
understand their flaws and limitations. Informal groups are the backbone of social networks.
Then they use foresight tools to imagine better solutions to Advantages and disadvantages of teams
the future. In many situations, people are potentially more motivated when
● The Tangible rule working in teams than when working alone.
Spending less time planning and more time doing.
Designers build several low-costs prototypes of their ideas ● Employees have a drive to bond and are motivated to fulfill
rather than analyze those ideas at a purely conceptual level. the goals of groups to which they belong
● Accountability to fellow team members
Employee involvement in decision making ● Coworkers become benchmarks of comparison
Employee involvement: the degree to which employees influence
how their work is organized and carried out. The challenges of teams
Also called participative management. Process losses: resources (including time and energy) expended
Has become a natural process in every organization, but the level toward team development and maintenance rather than the task.
of involvement varies with the situation. Amplified when more people are added or replace others on the
Low level involvement occurs where employees are individually team.
asked for specific information but the problem is not described to Brooks’s law: the principle that adding more people to a late
them. software project only makes it later.
Benefits of employee involvement Social loafing
Employee involvement potentially improves decision-making Social loafing: the problem that occurs when people exert less
quality and commitment. effort (and usually perform at a lower level) when working in teams
It improves the identification of problems and opportunities. than when working alone.
Can potentially improve the number and quality of solutions A motivational process loss.
generated. More pervasive when:
Under specific conditions, it improves the evaluation of
alternatives. ● Individual performance is hidden or difficult to distinguish
Involvement tends to strengthen employee commitment to the from the performance of other team members
decision. ● When the work is boring or the team’s overall task has low
Contingencies of employee involvement significance
There is an optimal level of employee involvement, and that ideal ● Individual characteristics
level depends on the situation. ● Lack motivation to help the team achieve goals
Four contingencies: ● When employees believe they have little control over the
team’s success.
● Decision structure
Programmed or nonprogrammed. Social loafers provide only as much effort as they believe others
● Source of decision knowledge will provide.
If the leader lacks sufficient knowledge Ways to minimize social loafing:
● Decision commitment
If employees are unlikely to accept a decision made without
their involvement, some level of participation is usually ● Form smaller teams
necessary. ● Specialize tasks
● Risk of conflict ● Measure individual performance
Two types of conflict undermine the benefits of employee ● Increase job enrichment
involvement ● Select motivated, team-oriented employees
● Employee goals and norms conflict with the organization
● Whether employees will agree with each other A model of team effectiveness
A team is effective when it benefits the organization and its
members, and its survives long enough to accomplish its
mandate.
Organizational and team environment
Teams and informal groups The organizational and team environment represents all
Teams: groups of two or more people who interact with and conditions beyond the team’s boundaries that influence its
influence each other, are mutually accountable for achieving effectiveness.
common goals associated with organizational objectives, and Team members tend to work together more effectively when
perceive themselves as a social entity within an organization.
All teams exist to fulfill some purpose.
Team members are held together by their interdependence and ● They receive some team-based rewards.
need for collaboration to achieve common goals. ● The organization’s structure assigns discrete clusters of
Team members influence each other. work activity to teams
A team exist when it members perceive themselves as a team. ● Information systems support team coordination
Each type of team in an organization can be distinguished by three ● The physical layout of the team’s workspace encourages
characteristics: frequent communication
● The environment also generates drives for change within
teams
● Team permanence ● External competition
How long that type of team usually exists ● Changing societal expectations
● Skill diversity
Members possess different skills and knowledge
● Authority dispersion
The degree that decision-making responsibility is distributed
throughout the team
Team design elements ● Storming
Task characteristics Interpersonal conflict as members become more proactive
Teams work better when the work is well structured rather than and compete for various team roles. Members try to
ambiguous or novel. establish norms of appropriate behavior and performance
Low task variability: the same set of tasks every day standards.
Low task analyzability: the work is predictable enough for well- ● Norming
established procedures The team develops its first real sense of cohesion as roles
The main benefit for well-structured tasks is that it is easier to are established and a consensus forms around group
coordinate the work among several people. objectives and a common or complementary team-based
Teams can perform less structured tasks reasonably well then mental model
their roles are well defined. ● Performing
Task interdependence: the extent to which team members must Team members hare learned to efficiently coordinate and
share materials, information, or expertise in order to perform their resolve conflicts.
jobs. ● Adjourning
Three levels of task interdependence The team is about to disband
The higher the level of task interdependence, the greater the need Team roles
to organize people into teams. Role: a set of behaviors that people are expected to perform
A team structure improves interpersonal communication and thus because they hold certain positions in a team and organization.
results in better coordination Many team roles aren’t formally embedded in job descriptions.
High task interdependence motivates most people to be part of They are informally assigned or claimed as part of the team
the team development process.
Team size Accelerating team development trough team building
Teams should be large enough to provide the necessary abilities Team building: a process that consists of formal activities intended
and viewpoints to perform the work, yet small enough to maintain to improve the development and functioning of a work team.
efficient coordination and meaningful involvement of each Team building interventions are often organized into the following
member. four categories:
Small teams operate effectively because they have less process
loss.
Team composition ● Goal setting
Team effectiveness depends on the qualities of people who are ● Problem solving
members of those teams. ● Role clarification
Teams perform better when their members are highly motivated, ● Interpersonal relations
possess the required abilities, and have clear role perceptions to
perform the assigned task activities. Team norms
Teams need people who are motivated and able to work Norms: the informal rules and shared expectations that groups
effectively in teams. establish to regulate the behavior of their members.
How team norms develop
Norms develop during team formation because people need to
The five C’s anticipate or predict how others will act.
● Cooperating ● Subtle events during the team’s initial interactions can plant
● Coordinating norms
● Communicating ● Norms form as team members discover behavior that help
● Comforting them function more effectively
● Conflict handling ● The experiences and values that members bring to the team
Team virtually increases with the geographic dispersion of team A model of communication
members. Communication flows through one or more channels (also called
Success factors for virtual teams media) between the sender and receiver.
Virtual teams face all the challenges of traditional teams, The sender forms a message and encodes it.
compounded by problems arising from time and distance. The encoded message is transmitted to the intended receiver.
Strategies to minimize most virtual team problems. The receiver senses and decodes the incoming message into
something meaningful.
● Virtual team members need to apply the effective team In most situations, the sender looks for evidence that the other
behaviors described earlier person received and understood the transmitted message.
● Good communication technology skills Communication is not a free-flowing conduit, the transmission of
● A toolkit of communication channels as well as the freedom meaning from one person to another is hampered by noise.
to choose the channels that work best for them. Influences on effective encoding and decoding
Effective communication depends on the sender’s and receiver’s conversation at the same time (synchronous) or at different times
ability, motivation, role clarity, and situational support to efficiently (asynchronous)
and accurately encode and decode information. Synchronous communication is better when:
Four main factors influence the effectiveness of the encoding-
decoding process ● The information is required quickly
● Where the issue is complex and therefore requires the
● The sender en receiver encode and decode more parties to address several related decisions.
effectively when they have similar ‘codebooks’ ● Asynchronous communication is better when:
● Improves with experience ● The issue is simple
● When the sender and receiver are skilled and motivated ● The issue has low time urgency
to use the selected communication channel(s) ● Getting both parties together at the same time is costly
● The process depends on the sender’s and receiver’s ● And/or the receiver would benefit from time to reflect on
shared mental models of the communication context the message before responding.
Choosing the best communication channel Jargon, specialized words and phrases for specific occupations or
Synchronicity groups, is usually designed to improve communication efficiency.
Synchronicity: the extent to which the channel requires or allows It is a source of communication noise when transmitted to people
both sender and receiver to be actively involved in the who do not possess the jargon codebook.
Another noise in the communication process is the tendency to ⮚ They avoid interrupting the speaker’s conversation
filter messages. ⮚ They remain motivated to listen to the speaker
Information overload
Information overload: a condition in which the volume of
information received exceeds the person’s capacity to process it.
Employees have a certain information-processing capacity. At the
same time, jobs have a variating information load. ● Evaluating
Information overload problems can be minimized by: Includes understanding the message meaning, evaluating
the message, and remembering the message.
Active listeners empathize with the speaker.
● Increasing our information-processing capacity ● Responding
● Reducing the job’s information load Providing feedback to the sender
● A combination of both Maintaining sufficient eye contact and sending back channel
signals both of which show interest. They also respond by
clarifying the message.
● Ambiguous rules
Optimal conflict perspective: organizations are most effective
when employees experience some level of conflict, but becomes ● Communication problems
less effective with high levels of conflict.
Incompatible goals
● Conflict energizes people to debate issues and evaluative
alternatives more thoroughly.
They probe and test each other’s way of thinking to better When the goals of one person or department seem to interfere
understand the underlying issues that need to be addressed. with another person’s or department’s goals.
● Task conflict: a type of conflict in which people focus their Scare resources
discussion around the issue while showing respect for
people who have other points of view. Constructive conflict.
Process conflict → how the work should be done and who Each person or unit requiring the same resource necessarily
should perform the various task roles. undermines others who also need that resource to fulfill their
Functional goals.
Reducing differentiation
Conflict-handling Preferred style Problems with As people develop common experiences and beliefs, they
style when… this style become more motivated to coordinate activities and resolve their
disputes through constructive discussion.
Interests are not
perfectly opposing Sharing Improving communication and mutual understanding
Parties have trust, information that the
Problem solving openness, and other party might
time to share user to his or her To give the conflicting parties more opportunities to communicate
information advantage and understand each other.
Issues are complex But
Conflict has
become too Minimize the level of interdependence between the parties.
Doesn’t usually Three ways to reduce interdependence among employees:
emotionally
resolve the conflict
charged
Avoiding May increase the
Cost of trying to ● Create buffers
other party’s
resolve the conflict A buffer is any mechanism that loosens the coupling
frustration
outweighs the between tow or more people or work units.
benefits
● Use integrators
Other party has Employees who coordinate the activities of work units toward
substantially more the completion of a shared task of project.
power Reduces the amount of direct interaction required among
Increases other
Issue is much less diverse work units.
party’s
important to you
Yielding expectations in
than to the other ● Combine jobs
future conflict
party
episodes
The value and logic ● Increasing resources
of your position
isn't as clear ● Clarifying rules and procedures
Choosing the best third-party intervention strategy. ● Initial, what they will initially request in the negotiations
Inquisition is usually the least effective third-party conflict The initial offer point, each party’s offer to the other side, requires
resolution method in organizational settings. careful consideration because it can influence the negotiation
outcome.
● Leaders who take an inquisitional role tend to collect limited
information about the problem, so their imposed decision Target point: your realistic goal or expectation for a final
may produce an ineffective solution to the conflict. agreement.
This position must consider alternative strategies to achieve those
● Employees often view inquisitional procedures and objectives, and test underlying assumptions about the situation.
outcomes as unfair because they have little control over this
approach Know your BATNA and power
● Which third-party approach is most appropriate in Best alternative to a negotiated agreement (BATNA): the best
organizations? outcome you might achieve through some other course of action
if you abandon the current negotiation.
● Partly depends on the situation
● More favorable results when it applies the procedural justice Having more than one BATNA to a negotiation increases your
practices power.
A common problem is that people tend to overestimate their
BATNA.
Generally speaking, for everyday disagreements between two
employees, the mediation approach is usually the best because it
gives employees more responsibility for resolving their won The negotiation process
disputes.
Gather information
Resolving conflict through negotiation
Information is the cornerstone of effective negotiations.
Negotiation: the process whereby two or more conflicting parties Some types of information reveal the other party’s resistance
attempt to resolve their divergent goals by redefining the terms of point.
their interdependence. Mutual gains may be possible with more information.
People negotiate when they think that discussion can produce a Successful negotiations require both parties to volunteer
more satisfactory arrangement in their exchange of goods or information.
services.
The most important practices for gathering information in
Distributive versus integrative approaches to negotiation negotiations are to listen and ask questions.
Skilled negotiator communicate their inner thoughts and feelings
about what the other party has said.
Distributive
In negotiations, those involved in the conflict must distribute
portions from a fixed pie. Manage concessions
Integrative or mutual gains Successful negotiators make fewer concessions and each
Then negotiators believe the resources at stake are expandable concession is smaller than those of average negotiators.
rather than fixed if the parties work creatively together to find a Concessions are a form of communication because they signal to
solution. the other party the relative importance of each issue being
negotiated.
Concessions also symbolize each party’s motivation to bargain in
When do negotiators adopt a distributive or integrative approach good faith.
to negotiations? Concessions are necessary for the parties to move toward the
area to agreement.
● The situation Concessions need to be clearly labeled as such and should be
accompanied by an expectation that the other party will
● Individual’s personality and past experiences reciprocate.
Preparing to negotiate Some type of offers and concessions are better than others.
Preparation is essential for successful negotiations. ● The key objective is to discover and signal which issues are
more and less important to each side.
● One way to figure out the relative importance of the issues
to each party is to make multi-issue offers rather than
discuss one issue at a time.
Manage time
● Location
● Physical setting
● Audience characteristics