JOHN ARVI V. ARMILDEZ HUM BHV AC09301

1. Organization is a group of people who work

interdependently towards same purpose. An organizational behavior is the study of what people thinks, feel, and do in and around the organizations.

2. OB theories help people (a) make sense of the workplace, (b) question and rebuild their personal mental models, and (c) get things done in organizations. OB knowledge is for everyone, not just managers. OB knowledge is just as important for the organization’s financial health

3. The goal attainment perspective, which states that organizations are effective if they achieve their stated objectives, is no longer accepted because (a) the goals set may be too easy, (b) goals may be too abstract to determine their accomplishment, and (c) achievement of some goals may threaten the company’s survival.

The open systems perspective views organizations as complex organisms that “live” within an external environment. They depend on the external environment for resources and then use organizational subsystems to transform those resources into outputs, which are returned to the environment. Organizations receive feedback from the external environment to maintain a good “fit” with that environment. Fit occurs by adapting to the environment, managing the environment, or moving to another environment.

According to the organizational learning perspective, organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge. The ability to acquire and use knowledge depends on the firm’s absorptive capacity. Intellectual capital consists of human capital, structural capital, and relationship capital. Knowledge is retained in the organizational memory; companies also selectively unlearn.

The high-performance work practices (HPWP) perspective identifies a bundle of systems and structures to leverage workforce potential. The most widely identified HPWP are employee involvement, job

autonomy, developing employee competencies, and performance-skill-based rewards. HPWP improve organizational effectiveness by building human capital, increasing adaptability, and strengthening employee motivation and attitudes.

The stakeholder perspective states that leaders manage the interests of diverse stakeholders by relying on their personal and organizational values for guidance. Ethics and corporate social responsibility (CSR) are natural extensions of values-based organizations because they rely on values to guide the most appropriate decisions involving stakeholders. CSR consists of organizational activities intended to benefit society and the environment beyond the firm’s.

KEY TERMS:

Absorptive capacity – The ability to recognize the value of new information, assimilates it, and applies it to commercial ends.

Corporate Social Responsibility (CSR) – is an organization’s moral obligation toward its stakeholders.

Deep-level Diversity – is the differences in the psychological characteristics of employees, including personalities, beliefs, values, and attitudes.

Ethics – The study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad.

Evidence-Based Management – the practice of making decisions and taking actions based on research evidence.

Globalization – Economic, social, and cultural connectivity (and interdependence) with people in other parts of the World.

High-Performance Work Practices – a perspective which holds that effective organizations incorporate several workplace practices that leverage the potential of human capital.

Human Capital – is the stock of human knowledge, skills, and abilities among employees that provide economic value to the organization.

Intellectual Capital – is the sum of an organization’s human capital, and relationship capital.

Open Systems – Organizations that take their sustenance from the environment and, in turn, affect that environment through their output.

Organizational Behavior (OB) – The study of what people thinks, feel, and do in and around organizations.

Organizational Effectiveness – a broad concept represented by several perspectives including the organization’s fit with the external environment, internal subsystems configuration for high performance, emphasis on organizational learning, and ability to satisfy the needs if key stakeholders.

Organizational Efficiency – is the amount of outputs relative to inputs in the organization’s transformation process.

Organizational Learning – a perspective which holds that organizational effectiveness depends on the organization’s capacity to acquire, share, use, and store valuable knowledge.

Organizations – Groups of people who work interdependently toward some purpose.

Relationship Capital – is the value derived from an organization’s relationship with customers, suppliers, and other.

Stakeholders – Shareholders, customers, suppliers, governments, and any other groups with a vested interest in the organization.

Structural Capital – is the knowledge embedded in an organization’s systems and structures.

Surface-level Diversity – is the observable demographic or physiological differences in people, such as their race, ethnicity, gender, age, and physical disabilities.

Values – Stable, long-lasting beliefs about what is important in a variety of situations, that guide our decisions and actions.

Virtual teams – Teams whose members operate across space, time, and organizational boundaries, and who are linked through information technologies to achieve organizational goals.

Virtual Work – is any work performed away from the traditional physical workplace by using information technology.

Work–life Balance – occurs when there is minimizing conflict between work and non-work demands.

LO3: Debate the organizational opportunities and challenges of globalization, workforce diversity, and emerging employment relationships.

Globalization, which refers to various forms of connectivity with people in other parts of the world, has several economic and social benefits, but it may also be responsible for work intensification and reduced job security and work–life balance. Workforce diversity is apparent at both the surface level (observable demographic and other overt differences in people) and the deep level (differences in personalities, beliefs, values, and attitudes). There is some evidence of deep-level diversity across generational cohorts. Diversity may offer a competitive advantage by improving decision making and team performance on complex tasks, yet it also brings numerous challenges such as team “fault lines,” slower team performance, and interpersonal conflict. One emerging employment relationship trend is the call for more work–life balance (minimizing conflict between work and non-work demands). Another employment trend is virtual work, particularly working from home. Working from home potentially increases employee productivity and reduces employee stress, but it may also lead to social isolation, reduced promotion opportunities, and tension in family relations.

LO4: Discuss the anchors on which organizational behavior knowledge is based.

The multidisciplinary anchor states that the field should develop from knowledge in other disciplines (e.g., psychology, sociology, and economics), not just from its own isolated research base. The systematic research anchor states that OB knowledge should be based on systematic research, which is consistent with evidence-based management. The contingency anchor states that OB theories generally need to consider that there will be different consequences in different situations.

The multiple levels of analysis anchor states that OB topics may be viewed from the individual, team, and organization levels of analysis.

JOHN ARVI V. ARMILDEZ HUM BHV AC09301

LO1: Describe the FOUR FACTORS that directly influence individual behavior and performance.

Four variables – motivation, ability, rule perceptions, and situational factors, which are represented by the acronym MARS – directly influence individual behavior and performance.

• Motivation represents the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior;

• Ability includes both the natural aptitudes and the learned capabilities required to complete a task successfully;

• Role perception is the extent to which people understand the job duties (roles) assigned to them or expected of them;

• Situational factors include conditions beyond the employer’s immediate control that constrain or facilitate behavior and performance.

LO2: Summarize the five types of individual behavior to organizations.

There are five main types of workplace behavior:

Task performance refers to goal-directed behaviors under the individual’s control that support organizational objectives.

Organizational citizenship behaviors consist of various forms of cooperation and helpfulness to others that support the organization’s social and psychological context.

Counterproductive work behaviors are voluntary behaviors that have the potential to harm the organization directly or indirectly.

Joining and staying with the organization refers to agreeing to become an organizational member and remaining with the organization.

Presenteeism is when maintaining work attendance includes minimizing absenteeism when capable of working and avoiding scheduled work when not fit.

LO3: Describe personality, the “Big Five” personality dimensions, and four MBTI types, and explain how personality relates to individual behavior in organizations.

Personality is the relatively enduring pattern of thoughts, emotions, and behaviors that characterize a person, along with the psychological processes behind those characteristics.

Personality Traits are broad concepts about people that allow us to label and understand individual differences. Personality is developed through hereditary origins (nature) and socialization (nurture). The “Big Five” personality dimensions include conscientiousness, agreeableness, neuroticism, openness to experience, and extraversion.

Conscientiousness and emotional stability (low neuroticism) predict individual performance in most job groups.

Extraversion is associated with performance in sales and management job, whereas

Agreeableness is associated with performance in jobs requiring cooperation, and

openness to experience is associated with performance in creative jobs.

Based on JUNGIAN PERSONALITY THEORY, the MYERS-BRIGGS TYPE INDICATOR (MBTI) identifies competing orientations for

getting energy (extraversion vs. introversion); perceiving information (sensing vs. intuiting); processing information and making decisions

(thinking vs. feeling); orienting to the external world (judging vs.

perceiving).

The MBTI improves self-awareness for career development and mutual understanding but is more popular than valid. Overall, it is useful to understand an individual personality, but testing for personality in organizations raises a few concerns.

LO4: Summarize SCHWARTZ’S MODEL of individual values and discuss the conditions under which values influence behavior

Values are stable, evaluative beliefs that guide our preferences for outcomes or courses of action in a variety of situations. Compared with personality traits, values are evaluative (rather than descriptive), more likely to conflict, and formed more from socialization than heredity. Schwartz’s model organizes 57 values into a circumflex of 10 dimensions along 2 bipolar dimensions: openness to change to conservation and self-enhancement to self-transcendence.

Values influence behavior in three conditions:

1) When we can think of specific reasons for doing so; 2) When the situation supports those values; and 3) When we actively think about them.

Values congruence refers to how similar a person’s values hierarchy is to the values hierarchy of another source (organization, person, etc.)

LO5 Describe three ethical principles and discuss FOUR FACTORS that INFLUENCE ETHICAL BEHAVIOR

Ethics refers to the study of moral principles or values that determine whether actions are right or wrong and outcomes are good or bad.

Three (3) Ethical Principles are:

1) Utilitarianism; 2) Individual rights; and 3) Distributive justice.

Ethical Behavior is influenced by;

1) the degree to which an issue demands the application of ethical principles (moral intensity),

2) the individual’s ability to recognize the presence and relative importance of an ethical issue (ethical sensitivity),

3) situational forces, and 4) The extent to which people actively evaluate their

decisions and actions in comparison with ethical and personal values (i.e., mindfulness).

Ethical conduct at work is supported by codes of ethical conduct, ethics training, and mechanisms for communicating ethical violations, the organization’s culture, and the leader’s behavior.

LO6 Review FIVE VALUES commonly studied across cultures and discuss cultural diversity within the United States.

Five values that are often studied across cultures are

1) Individualism – valuing independence and personal uniqueness;

2) Collectivism – valuing duty to in-groups and to group harmony;

3) Power distance – valuing unequal distribution of power;

4) Uncertainty avoidance – tolerating or feeling threatened by ambiguity and uncertainty; and

5) Achievement-nurturing orientation – valuing competition vs. cooperation.

Although cross-cultural knowledge is valuable, we need to be concerned that some of this knowledge is based on non-representative samples, old information, and lack of sensitivity to cultural differences within countries.

Rather than being a homogeneous culture, the United States has diverse forms of surface-level and deep-level diversity. This cultural diversity also reflects some differences across regions. Regional diversity might exist because socialization practices are shaped by local institutions, the natural environment shapes culture to some extent, or people migrate to places that they believe are s\more consistent with their values and self-views.

JOHN ARVI V. ARMILDEZ HUM BHV AC09301

LO1: Describe the elements of self-concept and explain how they affect an individual’s behavior and well-being.

Self-concept includes an individual’s self-beliefs and self-evaluations. It has three (3) structural dimensions, complexity, consistency, and clarity, all of which influence employee’s well-being, behavior, and performance.

Consists of:

Personality identity Social Identity

People are inherently motivated to promote and protect their self-concept (self-enhancement) and to verify and maintain their existing self-concept (self verification).

Self-evaluation consists of:

Self-esteem Self-efficacy Locus of control

Social Identity Theory explains how people define themselves in terms of the groups to which they belong or have an emotional attachment.

LO2: Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process.

Perception involves selecting, organizing, and interpreting information to make sense of the world around us. Perceptual organization applies categorical thinking – the mostly nonconscious process of organizing people and objects into preconceived categories that are stoned in our long term memory. Mental models – internal representations of the external world – also help is to make sense of incoming stimuli.

LO3: Discuss how stereotyping, attribution, self-fulfilling prophecy, halo, false-consensus primacy, and recency effects influence the perpetual process.

Stereotyping occurs when people assign traits to others based on their membership in a social category. This assignment economizes mental effort, fills in missing

information, and enhances our self-concept, but it also lays the foundation for prejudice and systematic discrimination.

The attribution process involves deciding whether an observed behavior or event is caused mainly by the person (internal factors) or the environment (external factors). Attributions are decided by perceptions of the consistency, distinctiveness, and consensus of the behavior. This process is subject to fundamental attribution error and self-serving bias.

A self-fulfilling prophecy occurs when our expectations about another person cause that person to act in a way that is consistent with those expectations. This effect is stronger when employees first join the work unit, when several people hold these expectations, and when the employee has a history of low achievement.

Four other personal errors commonly noted in organizations are the halo effect, false-consensus effect, primary effect, and recency effect.

LO4: Discuss three (3) ways to improve perceptions with specific applications to organizational situations.

1) To become more aware of their existence. Awareness of these biases makes people more mindful of their thoughts and actions, but training sometimes reinforces rather than reduces reliance on stereotypes and tends to be ineffective for people with deeply held prejudices.

2) To become aware of biases in our own decisions and behavior. Self-awareness increases through formal tests such as the IAT and by applying the Johari Windows, which is a process in which others provide feedback to you about your behavior, and you offer disclosure to them about yourself.

3) Meaningful interaction, which applies the contact hypothesis that people who interact will be less prejudiced or perceptually biased toward one another. Meaningful interaction helps improve empathy, which is in person’s understanding and sensitivity to the feelings, thoughts, and situations of others.

LO5: Outline the main features of a global mindset and justify its usefulness to employees and organizations.

A global mindset is a multidimensional competency that includes the individual’s ability to perceive, know about, and process information across cultures. This includes:

1. An awareness of openness to, and respect for other views and practices in the world;

2. The capacity to empathize and act effectively across cultures;

3. An ability to process complex information about novel environments; and

4. The ability to comprehend and reconcile intercultural matters with multiple levels of thinking.

A global mindset enables people to develop better cross-cultural relationships, to digest huge volumes of cross-cultural emerging global opportunities. Employees develop a global mindset through self-awareness, opportunities to compare their own mental models with people from other cultures, formal cross-cultural training, and immersion in other cultures.

KEY TERMS:

• Self-concept – an individual’s self-beliefs and self-evaluations

• Self-enhancement – a person’s inherent motivation to have a positive self-concept (and to have others perceive him favorably), such as being competent, attractive, lucky, ethical, and important

• Complexity – number of distinct and important roles or identities that people perceive about themselves

• Consistency – compatibility of person’s self-concept identities with one another and with the person’s personality, values, and other attributes

• Clarity – degree to which there is a clear, confidently defined, and stable self-concept

• Self-verifications – a person’s inherent motivation to confirm and maintain his existing self-concept

• Self-esteem – extent to which people like, respect, and are satisfied with themselves

• Self-efficacy – a person’s belief that he has the ability, motivation, correct role perceptions, and favorable situation to complete a task successfully.

• Locus of control – a person’s general belief about the amount of control he has over personal life events

• Social Identity Theory – states that people define themselves in terms of the groups to which they belong or have an emotional attachment.

• Selective attention – process of attending information received by our senses and ignoring other information

• Confirmation Bias – process of screening out information that is contrary to our values and assumptions and to more readily accept confirming information

• Categorical thinking – organizing people and objects into preconceived categories that are stored in our long-term memory

• Mental Models – visual or relational images in our mind representing the external world

• Stereotyping – process of assigning traits to people based on their membership in a social category

• Categorization – social identity is a comparative process and the comparison begins by categorizing people into distinct groups

• Homogenization – people within each group are very similar to each other

• Differentiation – good guy-bad guy contrast • Fundamental attribution error – tendency to see the

person rather than the situation as the main cause of the person’s behavior

• Self-serving bias – tendency to attribute our favorable outcomes to internal factors and our failures to external factors.

• Halo effect – general impression of a person, usually based on one prominent characteristic, distorts our perception of other characteristics of that person

• False-consensus effect – similar-to-me effect • Primacy effect – tendency to quickly form an opinion of

people on the basis of the first information we receive about them

• Recency effect –occurs when the most recent information dominates our perceptions

• Johari Window – a model of mutual understanding that encourages disclosure and feedback to increase our own open area and reduce the blind, hidden, and unknown areas.

• Contact Hypothesis – theory stating that the more we interact with someone, the less prejudiced or perceptually biased we will be against that person

• Empathy – a person’s understanding of and sensitivity to the feelings, thoughts, and situations of others.

• Global mindset – an individual’s ability to perceive, appreciate, and empathize with people from other cultures, and to process complex cross-cultural information

JOHN ARVI V. ARMILDEZ HUM BHV AC09301

LO1: Explain how emotions and cognition (conscious reasoning) influence attitudes and behavior.

• Emotions are physiological, behavioral, and psychological episodes experienced toward an object, person, or event that create a state of readiness.

• Attitudes represent a cluster of beliefs, feelings, and behavioral intentions toward a person, object, or event.

• Beliefs are a person’s established perceptions about the attitude object.

• Feelings are positive or negative evaluations of the attitude object.

• Behavioral intentions represent a motivation to engage in a particular behavior with respect to the target.

Attitudes have traditionally been described as a purely rational process in which beliefs predict feelings, which predict behavioral intentions, which predict behavior. We now know that emotions have an influence on behavior that is equal to or greater than that of cognitions. This dual process is apparent when we internally experience a conflict between what logically seems good or bad and what we emotionally feel is good or bad in a situation. Emotions also affect behavior directly. Behavior sometimes influences our subsequent attitudes through cognitive dissonance.

LO2: Discuss the dynamics of emotional labor and the role of emotional intelligence in the workplace.

Emotional labor consists of the effort, planning, and control needed to express organizationally desired emotions during interpersonal transactions. It is more common in jobs requiring a variety of emotions and more intense emotions, as well as in jobs where interaction with clients is frequent and has a long duration.

Cultures also differ on the norms of displaying or concealing a person’s true emotions.

Emotional dissonance occurs when required and true emotions are incompatible with each other. Deep acting can minimize this dissonance, as can the practice of hiring people with a natural tendency to display desired emotions.

Emotional intelligence is the ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others.

This concept includes four components arranged in a hierarchy:

1. Self-awareness 2. Self-management 3. Social awareness 4. Relationship management

Emotional intelligence can be learned to some extent, particularly through personal coaching.

LO3: Summarize the consequences of job dissatisfaction, as well as strategies to increase organizational (affective) commitment.

Job satisfaction represents a person’s evaluation of his or her job and work context. The exit-voice-loyalty-neglect model outlines four possible consequences of job dissatisfaction.

• Exit – includes leaving the organization, transferring to another work unit, or at least trying to get away from the dissatisfying situation. The traditional theory is that job dissatisfaction builds over time and is eventually strong enough to motivate employees to search for better work opportunities elsewhere. This is likely true to some extent, but the most recent opinion is that specific “shock events” quickly energize employees to think about and engage in exit behavior. For example, the emotional reaction you experience to an unfair management decision or a conflict episode with a co-worker motivates you to look at job ads and speak to friends about job opportunities where they work. This begins the process of redefining your self-concept more in terms of another company than in terms of your current employer.

• Voice is any attempt to change, rather than escape from, the dissatisfying situation. Voice can be a constructive response, such as recommending ways

Beliefs Feelings Behavioral intentions

Behavior

for management to improve the situation, or it can be more confrontational, such as filing formal grievances or forming a coalition to oppose a decision. In the extreme, some employees might engage in counterproductive behaviors to get attention and force changes in the organization.

• Loyalty. In the original version of this model, loyalty was not an outcome of dissatisfaction. Rather, it determined whether people chose exit or voice (i.e., high loyalty resulted in voice; low loyalty produced exit). More recent writers describe loyalty as an outcome, but in various and somewhat unclear ways. Generally, they suggest that “loyalists” are employees who respond to dissatisfaction by patiently waiting—some say they “suffer in silence”—for the problem to work itself out or be resolved by others.

• Neglect. Neglect includes reducing work effort, paying less attention to quality, and increasing absenteeism and lateness. It is generally considered a passive activity that has negative consequences for the organization. Job satisfaction has a moderate relationship with job performance and with customer satisfaction. Affective organizational commitment (loyalty) is the employee’s emotional attachment to, identification with, and involvement in a particular organization. This contrasts with continuance commitment, which is a calculative bond with the organization. Companies build loyalty through justice and support, shared values, trust, organizational comprehension, and employee involvement.

LO4: Describe the stress experience and review three major stressors.

Stress is an adaptive response to a situation that is perceived as challenging or threatening to a person’s wellbeing. The stress experience, called the general adaptation syndrome, involves moving through three stages: alarm, resistance, and exhaustion. Stressors are the causes of stress and include any environmental conditions that place a physical or emotional demand on a person. Three stressors that have received considerable attention are harassment and incivility, work overload, and low task control.

LO5: Identify five ways to manage workplace stress.

Two people exposed to the same stressor may experience different stress levels. Many interventions are available to manage work-related stress, including:

• removing the stressor o begins by identifying areas of high stress and

determining the main causes of the stress

o assigning employees to jobs that match their skills and preferences

o reducing excessive workplace noise o having a complaint system and taking

corrective action against harassment o giving employees more control over the work

process o facilitating better work–life balance flexible and limited work time job sharing telecommuting personal leave child care support

• withdrawing from the stressor o Permanent withdrawal occurs when

employees are transferred to jobs that better fit their competencies and values.

o Temporary withdrawing from stressors is the most frequent way that employees manage stress. Vacations and holidays are important opportunities for employees to recover from stress and reenergize for future challenges.

• changing stress perceptions

o Help employees improve their self-concept so that job challenges are not perceived as threatening.

• controlling stress consequences

o fitness and wellness programs o Employee Assistance Program – counseling

services that help employees resolve marital, financial, or work-related troubles.

• receiving social support

o Social support occurs when co-workers, supervisors, family members, friends, and others provide emotional and/or informational support to buffer an individual’s stress experience.

o It potentially improves the person’s resilience (particularly her or his optimism and self-confidence) because support makes people feel valued and worthy.

o Social support also provides information to help the person interpret, comprehend, and possibly remove the stressor.

o Seeking social support is called a “tend and befriend” response to stress, and research suggests that women often follow this route rather than the “fight-or-flight” response mentioned earlier.

JOHN ARVI V. ARMILDEZ HUM BHV AC09301

LO1: Define Employee management.

The employee’s emotional and cognitive motivation, self-efficacy to perform the job, perceived clarity of the organization’s vision and his or her specific role in that vision, and belief that he or she has the resources to get the job done.

LO2: Roles of Human Drive sand Emotions in Employee

Motivation.

Motivation consists of the forces within a person that affect his or her direction, intensity, and persistence of voluntary behavior in the workplace.

Drives (also called primary needs) are neural states that energize individuals to correct deficiencies or maintain an internal equilibrium. They are the “prime movers” of behavior, activating emotions that put us in a state of readiness to act.

Needs, goal-directed forces that people experience, are shaped by the individual’s self-concept (including personality and values), social norms, and past experience.

LO3: Maslow’s Needs Hierarchy, Mcclelland’s Learned

Need Theory and Four (4) Drive Theory and Their

implications for motivating people.

Maslow’s needs hierarchy groups needs into a hierarchy of five levels and states that the lowest needs are initially most important but higher needs become more important as the lower ones are satisfied. Although very popular, the theory lacks research support, as does ERG theory, which attempted to overcome some of the limitations in Maslow’s needs hierarchy. Both models assume that everyone has the same hierarchy, whereas the emerging evidence suggests that needs hierarchies vary from one person to the next according to their personal values.

McClelland’s learned needs theory argues that “needs” can be strengthened through learning. The three needs studied in this respect have been need for achievement, need for power, and need for affiliation.

Four-drive theory states that everyone has four innate drives—the drives to acquire, bond, learn, and defend. These drives activate emotions that we regulate through a skill set that considers social norms, past experience, and personal values. The main recommendation from four-

drive theory is to ensure that individual jobs and workplaces provide

LO4: The Expectancy Theory Model, including its

Practical Implications.

Expectancy theory states that work effort is determined by the perception that effort will result in a particular level of performance (E-to-P expectancy), the perception that a specific behavior or performance level will lead to specific outcomes (P-to-O expectancy), and the valences that the person feels for those outcomes. The E-to-P expectancy increases by improving the employee’s ability and confidence to perform the job. The P-to-O expectancy increases by measuring performance accurately, distributing higher rewards to better performers, and showing employees that rewards are performance-based. Outcome valences increase by finding out what employees want and using these resources as rewards.

LO5 OB Modification and Social Cognitive Theory and

their relevance to employee.

Organizational Behavior modification states that the

environment teaches people to alter their behavior so

that they maximize positive consequences and minimize

adverse consequences. Antecedents are environmental

stimuli that provide (not necessarily cause) behavior.

Consequences are events following behavior that

influence its future occurrence. Consequences include

positive reinforcement, punishment, negative

reinforcement, and extinction. The schedules of

reinforcement also influence behavior.

Social cognitive theory states that much learning and

motivation occur by observing and modeling others, as

well as by anticipating the consequences of our behavior.

It suggests that people typically infer (rather than only

directly experiences) cause-and-effect relationships,

anticipate the consequences of their actions, develop self-

efficacy in performing behavior, exercise personal control

over their behavior, and reflect on their direct

experiences. The theory emphasizes self-regulation of

individual behavior, including self-reinforcement, which is

the tendency of people to reward and punish themselves

as a consequence of their actions

LO6 Describe the characteristics of Effective goal setting

and feedback

Goal setting is the process of motivating employees and

clarifying their role perceptions by establishing

performance objectives. Goals are more effective when

they are SMARTER:

Specific

Measurable

Achievable

Relevant

Time-framed

Exciting

Reviewed

Effective feedback is specific, relevant, timely, credible,

and sufficiently frequent. Strength-based coaching

(appreciative coaching) maximizes employees’ potential

by focusing on their strengths rather than weaknesses.

Employees usually prefer nonsocial feedback sources to

learn about their progress toward goal accomplishment.

LO7 Summarize equity theory and describe ways to improve procedural justice

Organizational justice consists of distributive justice (perceived fairness in the outcomes we receive relative to our contributions and the outcomes and contributions of others) and procedural justice (fairness of the procedures used to decide the distribution of resources). Equity theory has four elements: outcome/input ratio, comparison other, equity evaluation, and consequences of inequity. The theory also explains what people are motivated to do when they feel inequitably treated. Companies need to consider not only equity of the distribution of resources but also fairness in the process of making resource allocation decisions.

JOHN ARVI V. ARMILDEZ HUM BHV AC09301

LO1: Discuss the advantages and disadvantages of the four reward objectives.

Types of Reward Practices membership and seniority job status competencies performance

Membership and Seniority-Based Rewards Most common reward -- fixed wages, or pay increases as seniority increases Advantages

• Guaranteed wages may attract job applicants • Seniority-based rewards reduce turnover

Disadvantages • Do not directly motivate job performance • Discourages poor performers from leaving voluntarily • May act as golden handcuffs

Job Status-Based Rewards Job evaluation estimates job worth by measuring the job's required skill, effort, responsibility, and working conditions. Employees in more valued positions receive – executive dining room, larger office, company-paid car etc. Advantages:

• Maintain feelings of pay equity • Motivates employees to compete for promotions

Disadvantages: • Employees exaggerate duties, hoard resources • Encourages bureaucratic hierarchy, and reinforces a

status mentality. • Inconsistent with market-responsive organizations with

few layers of hierarchy that encourage initiative from all employees

Competency-Based Rewards Pay increases with competencies acquired and demonstrated

• Organizations are shifting from job status to rewarding employees for their skills, knowledge and other competencies that lead to superior performance

Skill-based pay -- pay increases with number of skill modules learned, even though only one skill area performed at a time

Advantages

• More flexible, multi-skilled work force • Better product/service quality • Consistent with employability

Disadvantages • Competencies may become subjective personality

assessments • skill-based plans are more objective are expensive

Performance-Based Rewards

Individual Rewards • Awards and bonuses -- achieving a performance goal

or for individual task accomplishment • Commissions -- earnings based on sales volume • Piece rate pay -- pay per number of units produced

Advantages • Motivates task performance • Attracts performance-oriented applicants • Organizational rewards create an ownership

culture • Pay variability may avoid layoffs during downturns

Disadvantages • May weaken job content motivation • May distance reward giver from receiver • May discourage creativity • Tends to address symptoms, not underlying

causes of behavior LO2: Identify several team‐ and organizational‐level

performance‐based rewards.

Team Rewards • Bonuses -- team paid lump sum for reaching targets • Gain sharing plans – paid to the team based on cost

reductions and increased labor efficiency Organizational Rewards Employee stock ownership plans

• employees own company stock -- some employees own company

Profit sharing • employees receive share of profits

Stock options • right to purchase company stock at a future date

at a predetermined price Balanced scorecard (BSC)

• rewards for improving composite results (financial, customer, internal processes, employee)

• Evaluating organizational-level rewards Positive effects

• Creates an “ownership culture” • Adjusts pay with firm's prosperity • Scorecards align rewards with several specific

organizational outcomes Concerns with performance pay

• Weak connection between individual effort and rewards

• Reward amounts affected by external forces

LO3: Describe Five Ways to improve Reward

Effectiveness

1. Link rewards to performance (better performers should be rewarded more than those with poorer performance)

increases P-to-O expectancy

problems with organizational politics and difficulty measuring performance

2. Ensure rewards are relevant

reward outcomes within employee’s control

adjust for situational factors -- e.g. effect of economy on sales

3. Use team rewards for interdependent jobs

easier to measure team output than individual

increases cooperation and reduces competitiveness

increases employee preferences for team-based work

4. Ensure rewards are valued

people have different needs and wants

5. Watch out for unintended consequences

difficult to anticipate effect of rewards on behavior

LO4: Discuss the advantages and disadvantages of

job specialization

Advantages

Increases work efficiency

Employees master the tasks quickly

Spend less time changing tasks

Less training required

Job is closely matched to their skills Disadvantages

Reduce work motivation

Create mental health problems

Lower product or service quality

Increases costs through discontentment, absenteeism, and turnover.

LO5 Diagram the job characteristics model of job

design.

Identifies five core job characteristics, three psychological states, and individual moderators

Core job characteristics

Skill variety -- extent that job requires different skills e.g. sales clerks also stock inventory and change store-front displays

Task identity -- completing a whole or identifiable piece of work

e.g. employee assembles an entire computer modem

Task significance -- impact on organization and/or society

e.g. medical devices employee impacts life and death of patients

Autonomy -- freedom, independence, and discretion e.g. employees (not boss) make decisions

Job feedback -- receive performance info

LO6: Identify three strategies to improve employee

motivation through job design

Job rotation Moving from one job to another Three functions

1. reduces repetitive strain injuries 2. increases multiskilling -- more flexible work force 3. potentially reduces job boredom

Job Enlargement Adding tasks to an existing job Improves work efficiency and flexibility

Example: video journalist • performs several tasks previously performed by

people in a few jobs • also example of job enrichment due to increased

autonomy Problem: Just adding more tasks will not increase job satisfaction or performance -- need job enrichment (adding autonomy and job knowledge)

Job Enrichment Given more responsibility for scheduling, coordinating, and planning one’s own work Outcomes of job enrichment

• Increases job satisfaction • Increases performance when task identity and job

knowledge increases • Increases service quality due to more felt

responsibility

Two of the main ways to increase job enrichment: 1. Clustering tasks into natural groups

• Stitching highly interdependent tasks into one job • e.g., video journalist, assembling entire product

2. Establishing client relationships • Directly responsible for specific clients • Communicate directly with those clients

•

LO7: Define empowerment and identify strategies that support empowerment

Empowerment is a psychological concept with four dimensions: 1. Self determination

- Employees are given freedom, independence, and discretion over their work activities

2. Meaning - Empowered employees care about their work and believe that what they do is important

3. Competence - Empowered employees have feelings of self-efficacy – they are confident about their ability to perform the work well and have a capacity to grow with new challenges

4. Impact - Empowered employees view themselves as active participants in the organization – their decisions and actions influence the company’s success

LO8: Describe the five elements of self-leadership

1. Personal goal setting

• Self-set goals • Apply effective goal setting practices

2. Constructive thought patterns Self-talk: talking to yourself about your own thoughts or actions

• positive self-talk increases self-efficacy Mental imagery: mentally practicing a task and

visualizing its successful completion

3. Designing natural rewards Finding ways to make the job more motivating

• e.g. use discretion in how a task is accomplished

4. Self-monitoring

Keeping track of one’s progress toward goal

• Checking naturally occurring feedback • Design artificial feedback if no natural feedback

5. Self-reinforcement Controlling a reinforcer but don’t “take” it until completing a self-set goal

• e.g. Watching a movie after writing two more sections of a report

• e.g. Starting a fun task after completing a task that you don’t like

LO9: Identify specific personal and work environment influences on self-leadership

Self-leadership contingencies

Self-leadership depends on the person and situation

Individual factors

• Higher levels of conscientiousness and extroversion

• Positive self-evaluation (self-esteem, self-efficacy, internal locus)

Organizational factors • Job autonomy • Participative leadership • Measurement-oriented culture

Self-leadership can be learned