Organization Behaviour

Introduction

2 LearningDefinition: any permanent change in

behaviour that occurs as a result of experience (Robbins)

A relatively permanent change in knowledge or behavior that results from practice or experience (Jones)

A process through which individuals change their behaviour based on their experiences in a situation (Hitt)

LearningRelatively permanent change in capabilitiesProcess of behavior change based on positive

or negative experiencesOccurs only when changes in behavior happenDriven by experience with a particular

situation

Theories of learningClassical conditioning

Where an individual responds to a stimulus that would not ordinarily produce such a response

Learning that takes place when the learner recognizes the connection between an unconditioned stimulus and a conditioned stimulus.

StimulusUnconditioned Stimulus: Anything that

produces an unconditioned response.

Conditioned Stimulus: A neutral stimulus that, as a result of being paired with an unconditioned stimulus, elicits a response.

ResponseUnconditioned Response: A response

that occurs naturally in the presence of a given stimulus.

Conditioned Response: A response that is called forth by a previously neutral stimulus (the conditioned stimulus.)

Theories of learning-contdOperant Conditioning:

A type of conditioning in which desired voluntary behaviour leads to a reward or prevents a punishment (Robbins)

Learning that takes place when the learner recognizes the connection between a behavior and its consequences (Jones)

Operant conditioning: an explanation for consequence based learning that assumes that learning results from simple conditioning and that higher mental functioning is irrelevant

Operant ConditioningOperant ConditioningReinforcement basedBehavior is learned as a function of its

consequenceRoots in the late 1800s with animalsLearning results from simple conditioning, not

from higher mental functioning

Theories of learning-contdSocial learning theory

It is an extension of operant conditioning-as it assumes that behaviour is a function of consequences-it also acknowledges the existence of observational learning and the importance of perception in learning

The view that individuals can learn through observation and experience

Social learning theoryAn explanation for consequence based

learning that acknowledges the higher mental functioning of human beings and the role that such functioning can play in learning

A learning theory that takes into account the fact that thoughts and feelings influence learning.

Social LearningHumans can observe others in a situation and

learn from what they seeNo direct experience to a specific situation is

needed to understand the behavior and its consequences

Learning can result from higher mental functioning

Contingencies of ReinforcementContingencies of Reinforcement

The SituationBehavioral Response

New Response to the Situation

Positive consequences, or removal of negative ones, reinforces behavioral response

Aversive consequences lead to avoidance of the same behavioral response, or to new responses to similar situations in the future

Adapted from Exhibit 4-1: Effects of Reinforcing Consequences on Learning New Behaviors

Consequences of the Behavior

Positive ReinforcementA reinforcement contingency in which a

behavior is followed by a positive consequence, thereby increasing the likelihood that the behavior will be repeated in the same or similar situations

Administering positive consequences to workers who perform the desired behavior.

Negative ReinforcementA reinforcement contingency in which a

behavior is followed by the absence of a previously encountered negative consequence; thereby increasing the likelihood that the behavior will be repeated in the same or similar situations

Removing negative consequences to workers who perform the desired behavior.

PunishmentA reinforcement contingency in which a

behavior is followed by a negative consequence, thereby reducing the likelihood that the behavior will be repeated in the same or similar situations

Administering negative consequences to workers who perform the undesirable behavior.

Punishment Guidelines

• Use only if necessary

• Deliver as quickly as possible afterthe undesired event

• Focus on specific behaviors that have been made clear to the recipient

• Deliver in an objective, impersonal fashion

• Listen to the person before taking action

ExtinctionA reinforcement contingency in which a

behavior is followed by the absence of a previously encountered positive consequence; thereby reducing the likelihood that the behavior will be repeated in the same or similar situations

Removing whatever is currently reinforcing the undesirable behavior.

Schedules of ReinforcementContinuous schedule—reinforcement

follows each instance of desired behaviorIntermittent schedule—reinforcement does

not follow each instance of desired behaviorFixed interval—reinforcement based on fixed unit

of lapsed timeVariable interval—reinforcement based on

varying lapses of timeFixed ratio—reinforcement based on consistent

number of instances of the desired behaviorVariable ratio—reinforcement after desired

behavior has occurred a variable number of times

Adapted from Exhibit 4-2: Schedules of Reinforcement

Schedules of ReinforcementContinuous reinforcement: A reinforcement

schedule in which a reward occurs after each instance of a behaviour or set of behaviours

Reinforcing a desired behaviour each time it is demonstrated

Schedules of ReinforcementIntermittent reinforcement: A reinforcement

schedule in which a reward does not occur after each instance of a behaviour or set of behaviours

reinforcing a desired behaviour often enough to make that behaviour worth repeating but not every time that it is demonstrated

Intermittent Schedules

Fixed interval Spacing rewards at uniform time intervals

Variable intervalDistributing rewards in time so that reinforcements are

unpredictable

Fixed ratio after a constant number of responses are given a

reward is initiated

Variable ratioWhen reward varies relative to the behaviour of the

individual

OB ModThe systematic application of the principles

of operant conditioning for teaching and managing important organizational behaviors.

The application of reinforcement concepts to individuals in the work setting

Organizational Behavior Mod

Also known as performance management, a formal procedure that focuses on improving task performance through positive reinforcement of desired behaviors and elimination of undesired behaviors

The Basic Steps of O.B. Mod.Identify the behavior to be learned.Measure the frequency of the behavior.Perform a functional analysis.Develop and apply a strategy.Measure the frequency of the behavior.

OB ModA formal procedure focused on improving task performance through positive reinforcement of desired behaviors and extinction of undesired behaviors

Exhibit 4-3 Shaping Behavior Through OB Modification

OB Mod Part 1

Adapted from Exhibit 4-3: Shaping Behavior Through OB Modification

OB Mod Part 2OB Mod Part 2

Adapted from Exhibit 4-3: Shaping Behavior Through OB Modification

OB Mod Part 3OB Mod Part 3

Adapted from Exhibit 4-3: Shaping Behavior Through OB Modification

Advanced Learning ConceptsLimited opportunities to observe the

consequences of an actionUnclear feedbackLearning from failure

Low Probability-High Consequence Events

Experiencing a particular situation only once or not at all limits the opportunity to try different approaches (behaviors and consequences) for dealing with it

If an approach cannot be used multiple times, one cannot learn the likelihood of positive or negative consequences of the approach

Consequently people exposed to low probability-high consequence events may have faulty learning

Unclear FeedbackSituations often involve multiple

consequences, such that one cannot clearly infer how the individual consequences affect behavior

Simulation may be an approach for separating out the effects of the consequences on the behaviorA representation of a real system that allows

associates and managers to try various actions and receive feedback on the consequences of those actions

Causal Relationships at a Sports Club

Exhibit 4-4 Casual Relationships at a Sports Club

Intelligent Failure Intelligent failures that result in learning

are the result of certain kinds of actions1. Actions are thoughtfully planned.2. Actions have a reasonable chance of producing

a successful outcome.3. Actions are typically modest in scale, to avoid

putting the entire firm or substantial parts of it at risk.

4. Actions are executed and evaluated in a speedy fashion, since delayed feedback makes learning more difficult.

5. Actions are limited to domains that are familiar enough to allow proper understanding of the effects of the actions.

PerceptionA process that involves sensing various

aspects of a person, task, or event and forming impressions based on selected inputs.

The process by which individuals select, organize, and interpret the input from their senses. Schemas, motivational state, and mood all play a part in perception.

PerceptionPerception

Three basic stages:

• Sensing various characteristics

• Selecting facts

• Organizing into useful concepts

Three Stages of PerceptionPerception: A process that involves sensing

various aspects of a person, task, or event and forming impressions based on selected facts

Sensing1

Stage 1: Sensing various characteristics of a person, task, or event• Touch• Sight• Smell• Taste• Hearing

Three Stages of PerceptionPerception: A process that involves sensing

various aspects of a person, task, or event and forming impressions based on selected facts

Sensing

Selecting

1

2

Stage 2: Selecting from the data those facts that will be used to form the perception• Selective or biased perception?• Accurate perception requires selection

of all relevant data

Three Stages of PerceptionPerception: A process that involves sensing

various aspects of a person, task, or event and forming impressions based on selected facts

Sensing

Selecting

Organizing

1

2

3

Stage 3: Organizing the selected data into useful concepts pertaining to the object or person• Concepts help individuals predict the

consequences of their behaviors• Formation of everyday concepts help

people deal successfully with problems

PerceptionPerceiver: The person trying to interpret

some observation that he or she has just made.

Target: Whatever the perceiver is trying to make sense of.

Situation: The context in which the perception takes place.

Characteristics of the Perceiver That Affect Perception

Perceptions of PeopleNature of PerceiverNature of Situation

Perceptions of People

Familiarity with PersonFeeling Toward PersonGeneral Emotion State

General Nature of the Other PersonApparent Intentions of the Other

PersonConsequences of the Interaction

Perception of the

Person

Logical ErrorHalo EffectProjectingStereotyping

Adapted from Exhibit 4-5 Person Perception

Nature of Perceiver

Nature of the Situation

Problems in Person Perception

Perceptions of PeoplePerceptions of People

Nature of Perceiver

Familiarity with the Other PersonFeelings Toward the Other PersonGeneral Emotion State

Nature of the Situation

General Nature of the Other Person

Apparent Intentions of the Other Person

Consequences of the Interaction

Perception of the Person

Problems in Person Perception

Implicit TheoriesHalo EffectProjectingStereotyping

Adapted from Exhibit 4-5: Person Perception

Problems in PerceptionLogical error

Individual forms an impression of a person on the basis of only one or two central characteristics

Halo effectIndividual assesses a person positively or

negatively in all situations based on an existing general assessment of the person

Problems in PerceptionProjecting

individual assumes that others share his or her values and beliefs

StereotypingIndividual has preconceived ideas about a

group and assumes that all members of that group share the same characteristics

Contrast EffectsThe perceiver’s perceptions of others distort

the perceiver’s perception of a target.For example, a manager’s perception of an

average subordinate is likely to be lower if that subordinate is in a group with very high performers rather than in a group with very low performers.

Halo EffectThe perceiver’s general impression of a

target distorts his or her perception of the target on specific dimensions.

For example, a subordinate who has made a good overall impression on a supervisor is rated as performing high-quality work and always meeting deadlines even when work is flawed.

Other ProjectionStereotyping

Attribution TheoryA group of theories that describe how

people explain the causes of behavior.Internal Attribution assigns the cause of

behavior to some characteristic of the person.For example, ability, personality or

motivation.External Attribution assigns the cause of

behavior to factors external to the person.For example, task difficulty or luck.

Attributions of Causality

Attributions affected by perceptions of Consistency Consensus Distinctiveness

• Personality• Attitudes• Abilities

• Organizational resources• Luck

• Uncontrollable influences

Internal attributions External attributions

Individual Behavior

Attributions of Causality

Adapted from Exhibit 4-6 Attribution Theory

Consensus

Consistency

Distinctiveness

External

Internal

Internal

External

Internal

ExternalHigh

Low

High

Low

High

Low

Attributions of Success and FailureFundamental attribution error

Perception problem in which an individual is too likely to attribute the behavior of others to internal rather than external causes

Self-serving biasPerception problem in which an individual is

too likely to attribute the failure of others to internal causes and the successes of others to external causes

Task PerceptionPerceptions of one’s job has important

implications for behavior and outcomesTask perceptions have been linked to mood,

intrinsic motivation and job performancePerceptions of tasks develop through

subjective and sometimes idiosyncratic processes

Attributions of CausalityExternal-Internal AttributionSuccess and Failure

Internal-External AttributionInternal-External Attribution

Consistency

Distinctiveness

Consensus

Attributions of CausalityAttributions of Causality

Adapted from Exhibit 4.6 Attribution Theory

Individual Behavior

Consensus

Consistency

Distinctiveness

External

Internal

Internal

External

Internal

ExternalHigh

Low

High

Low

High

Low

Attributions of Success and Attributions of Success and FailureFailure

Fundamental Attribution ErrorFundamental Attribution Error

Self-Serving BiasSelf-Serving Bias

Attributional BiasesFundamental attribution error - the

tendency to overattribute behavior to internal rather than external causes when judging others.

Attributional BiasesActor-observer effect - the tendency to

attribute the behavior of others to internal causes and to attribute one’s own behavior to external causes.

Self-serving attribution - the tendency to take credit for successes and avoid blame for failures.

Shortcuts in judging othersSelective perception

Task PerceptionTask PerceptionPerceptions of tasks develop through

subjective and sometimes idiosyncratic processes

Intelligence, age and gender influence perception of tasks

Levels of satisfaction play a role

3 PersonalityDefinition: the sum total of the ways in

which an individual reacts and interacts with others

The pattern of relatively enduring ways in which a person feels, thinks, and behaves.

Based on:EnvironmentHeredity

Fundamentals of PersonalityFundamentals of PersonalityA stable set of characteristics representing internal properties of an individual, which are reflected in behavioral tendencies across a variety of situations. Three basic beliefs:

• Relatively enduring

• Major determinants of one’s behavior

• Influence one’s behavior across wide variety of situations

Not all in agreement. Some believe personalities canexperience changes and we may behave differently

from situation to situation.

“”

Personality traits are individual psychological characteristics that are relatively enduring – introversion, for example, will probably remain for a long time.

Personality traits are major determinants of one’s behavior – introverted person will likely be withdrawn and exhibit non-assertive behavior.

Personality traits influence one’s behavior across a wide variety of situations – an introverted person will be withdrawn and non-assertive at a party, in class, in sports activities, and at work.

PersonalityPersonality

A stable set of characteristics representing internal properties of an individual, which are reflected in behavioral tendencies across a variety of situationsRelatively enduringMajor determinants of one’s behaviorInfluence one’s behavior across wide variety of

situations

Determinants of Personality Development

HeredityStudy of identical twinsAssessments of

newbornsGenes

EnvironmentSocial exposuresPhysiological forcesSocioeconomic factors

Determinants of PersonalityNature: Biological heritage, and genetic

makeup.Nurture: Life experiences.Environment

Social exposuresPhysiological forcesSocioeconomic factors

The Interaction of Personality and Situational Factors

Personality TraitsEnduring characteristics that describe an

individual’s behaviour

The Big Five ModelExtroversionConscientiousnessAgreeablenessNeuroticismOpenness to Experience

Big Five Personality TraitsBig Five Personality Traits

Adapted from Exhibit 5-1: The Big Five Personality Traits

Extraversion Conscientiousness

Agreeableness

Emotional Stability

Openness to Experience

Personality

Big Five Personality Traits

Adapted from: Exhibit 5.1 The Big Five Personality Traits

Extraversion Conscientiousness

Agreeableness

Emotional stability

Openness to experience

Personality

Big Five Personality TraitsExtraversion

Outgoing and derives energy from being around people

ConscientiousnessFocuses on goals and works toward them in

disciplined mannerAgreeableness

Easygoing and tolerant

Big Five Personality TraitsEmotional stability

Easily copes with stressful situations or heavy demands

Openness to experienceSeeks new experiences and thinks creatively

about the future

ExtroversionThe tendency to experience positive

emotional states and feel good about oneself and the world around one; also called positive affectivity.

Specific traits include positive emotions, gregariousness, and warmth

The degree to which an individual is outgoing and derives energy from being around people – enjoys being around other people, is warm to others, speaks up in group settings, maintains a vigorous pace, likes excitement, and is cheerful.

ConscientiousnessThe extent to which a person is careful,

scrupulous, and persevering.Specific traits include competence,

order and self-discipline.The degree to which an individual

focuses on goals and works toward them in a disciplined way – feels capable, is organized, is reliable, possesses a drive for success, focuses on completing tasks, and thinks before acting

AgreeablenessThe tendency to get along well with

others.Specific traits include trust,

straightforwardness and tender-mindedness.

The degree to which an individual is easygoing and tolerant – believes in the honesty of others, is straightforward, is willing to help others, tends to yield under conflict, exhibits humility, and is sensitive to the feelings of others

Neuroticism/ Emotional stability The tendency to experience negative

emotional states and view oneself and the world around one negatively; also called negative affectivity.

Specific traits include anxiety, self-consciousness, and vulnerability.

The degree to which an individual easily handles stressful situations and heavy demands – is relaxed, is slow to feel anger, rarely becomes discouraged, rarely becomes embarrassed, resists unhealthy urges associated with addictions, and handles crises well

Openness to ExperienceThe extent to which a person is original, has

broad interests, and is willing to take risks.The extent to which a person is original, has

broad interests, and is willing to take risks.The degree to which an individual seeks new

experiences and thinks creatively about the future – has a vivid imagination, has an appreciation for art and beauty, values and respects self and others, prefers variety to routine, has broad intellectual curiosity, and is open to re-examining closely held values

Cognitive and Motivational Cognitive and Motivational Properties of PersonalityProperties of PersonalityCognitive Properties

Perceptual and thought processesAffect how one typically processes information

Motivational PropertiesStable differencesEnergize and maintain overt behaviors

Cognitive and Motivational Cognitive and Motivational Properties of PersonalityProperties of Personality

Adapted from Exhibit 5-3: Cognitive and Motivational Concepts of Personality

Cognitive and Motivational

Concepts

Locus of Control

Achievement Motivation

Approval Motivation

Authoritarianism

Self-Monitoring

Cognitive ConceptsCognitive ConceptsLocus of control – degree to which an

individual attributes control of events to self or to external factors

Authoritarianism – degree to which an individual believes in conventional values, obedience to authority, and legitimacy of power differences in society

Self-Monitoring – degree to which an individual attempts to present the image he or she thinks others want to see in a given situation

Cognitive ConceptsLocus of control

Tendency to attribute the cause or control of events to eitherOneselfFactors in the external environment

Internals believe they can control what happens to them

Externals believe what happens to them is more a matter of luck or fate, rather than their own behavior

Locus of ControlExternal Locus of Control: describes

people who believe that fate, luck, or outside forces are responsible for what happens to them.

Internal Locus of Control: describes people who believe that ability, effort, or their own actions determine what happens to them.

Cognitive ConceptsAuthoritarianism

Degree to which an individual believes inConventional valuesObedience to authorityLegitimacy of power differences in society

People scoring high on authoritarianism may be effective leaders in jobs requiring managers to make most decisions and where there are many rules governing behavior

Cognitive ConceptsSelf-monitoring

Degree to which people attempt to present the image they think others want to see in the given situation

High-self monitors want to be seen as others want them to be

Low self monitors want to be seen as themselves, not as others want them to be

Cognitive ConceptsSelf-Monitoring: The extent to which

people try to control the way they present themselves to others.

Proactive personality: people who identify opportunities, show initiative, take action, and persevere until meaningful change occurs

Motivational ConceptsApproval Motivation – degree to which

an individual is concerned about presenting self in a socially desirable way in evaluative situations

Achievement Motivation – degree to which an individual desires to perform in terms of a standard of excellence or to succeed in competitive situations

Motivational ConceptsApproval motivation

Concerned about presenting one-self in a socially desirable way in evaluative situations

Persons high in approval motivation tend toBe concerned about the approval of othersConform and “get along”Respond to personality tests in socially desirable ways

(may fake their answers according to perceived desirability)

Motivational ConceptsAchievement motivation

The need for achievement (n-Ach)Desire to perform in terms of a standard of

excellenceDesire to succeed in competitive situationsPersons high in the need to achieve

Set goalsAccept responsibility for both success and failureFocus on task excellence rather than on power

Major AttributesCore self evaluation: degree to which Core self evaluation: degree to which

individuals like or dislike themselves, individuals like or dislike themselves, whether they see themselves as capable whether they see themselves as capable and effective, and whether they feel they and effective, and whether they feel they are in control.are in control.

Self-EsteemSelf-Esteem: The extent to which people : The extent to which people have pride in themselves and their have pride in themselves and their capabilities.capabilities.

Type A Personality: A person who has an intense desire to achieve, is extremely competitive, and has a strong sense of urgency.

Type B Personality: A person who tends to be easygoing and relaxed.

Individual BehaviourAbility: The mental or physical capacity to

do something.

Physical Ability

Cognitive (intellectual) Ability

Physical abilityStrength factors

Dynamic strengthTrunk strength-abdominal musclesStatic strength-force against external objectsExplosive strength

Physical abilityFlexibility factors

Extent-movement front and backDynamic-rapidity

OtherBody co-ordination; balance and stamina

Ability-job fitEmployee performance is enhanced when

there is a high body-job fit

Other (biographical) characteristicsAgeGenderRaceTenure

Intelligence

General mental ability to develop and understand concepts, particularly those that are more abstract and complex.

General mental ability used in complex

information processing

IntelligenceWhat is it?

Number aptitudeVerbal comprehensionPerceptual speedSpatial visualizationDeductive reasoningInductive reasoningMemory

IntelligenceIntelligenceNumber aptitudeVerbal comprehensionPreceptual speedSpatial visualisationDeductive reasoningInductive reasoningMemory

Areas of Areas of IntelligenceIntelligence

NumberNumberAptitudeAptitudeNumberNumberAptitudeAptitude

VerbalVerbalComprehensionComprehension

VerbalVerbalComprehensionComprehension

PerceptualPerceptualSpeedSpeed

PerceptualPerceptualSpeedSpeed

SpatialSpatialVisualizationVisualization

SpatialSpatialVisualizationVisualization

DeductiveDeductiveReasoningReasoningDeductiveDeductiveReasoningReasoning

InductiveInductiveReasoningReasoning

InductiveInductiveReasoningReasoning

MemoryMemoryMemoryMemory

Number aptitude – the ability to handle mathematics

Verbal comprehension – the ability to understand written and spoken words

Perceptual speed – the ability to process visual data quickly

Spatial visualization – the ability to imagine a different physical configuration – for example, to imagine how a room would look with the furniture rearranged

Deductive reasoning – the ability to draw a conclusion or make a choice that logically follows from existing assumptions and data

Inductive reasoning – the ability to identify, after observing specific cases or instances, the general rules that govern a process or that explain an outcome – for example, to identify the general factors that play a role in a successful product launch after observing one product launch in a single company

Memory – the ability to store and recall previous experiences

Attitudes

A persistent tendency to feel and behave in a favorable or unfavorable way toward a specific person, object, or idea.

Work Attitudes: Collections of feelings, beliefs, and thoughts about how to behave in one’s job and organization.

AttitudesAttitudesA persistent tendency to feel and behave in a favorable or unfavorable way toward a specific person, object, or idea.

Important ConclusionsImportant Conclusions

• Reasonably stable

• Directed toward some person, object or idea

• Relates to one’s behavior toward that object or person

• People tend to behave in ways that are consistent with their feelings

• Behaviors are also influenced by motivational forces and situational factors

Influence of Attitudes on Influence of Attitudes on BehaviorBehavior

Adapted from Exhibit 5-5: Influence of Attitudes on Behavior

Behavior Toward Object, Person, or Idea

Object, Person, or Idea

Other Influences

Attitude Toward Object, Person, or Idea

Essential Elements of AttitudesEssential Elements of Attitudes

CognitiveCognitive

AffectiveAffective BehavioralBehavioral

Cognitive - Facts we have gathered and considered about the object, person, or idea

Affective - Feelings one has about the object or person

Behavioral - Intention to act in certain ways toward the object of the attitude

Components of Work AttitudesAffective Component: How a worker

feels about work.Cognitive Component: What a worker

believes to be true about work.Behavioral Component: What a worker

thinks about how to behave at work.

Formation of AttitudesFormation of Attitudes

LearningLearning Self-PerceptionsSelf-Perceptions

Need for Need for ConsistencyConsistency

Learning - experience and interaction with the object of the attitude that results in rewards or punishments

Self-perceptions - observations of one’s own behavior

Need for consistency - preference for one’s attitudes to be consistent with one another

Self-perception theoryArgues that attitudes are used, after the

fact, to make sense of an action that has already occurred.

Formation of Consistent Formation of Consistent AttitudesAttitudes

Accounting

Dan Dan’s new colleague

+ -

-

Formation of a consistent work attitude

Exhibit 5-6: Formation of Consistent Attitudes

+

Dan likes accounting and has a favorable attitude towards accounting. Dan works with a new person who dislikes accounting. Dan may form a negative attitude about his new colleague and towards those who don’t like accounting.

Important Workplace AttitudesImportant Workplace Attitudes

OrganizationalOrganizationalCommitmentCommitment

JobJobSatisfactionSatisfaction

Major job attitudesJob satisfaction: a positive feeling about

one’s job resulting from an evaluation of its characteristics

Job involvement: the degree to which a person identifies with a job, actively participates in it, and considers performance important to self-worth

Organisational commitment

Job satisfaction: ConsequencesExitVoiceLoyaltyNeglect/apathy

Job satisfaction: ConsequencesSatisfaction and performanceSatisfaction and OCBSatisfaction and customerSatisfaction and absenteeismSatisfaction and turnover

Organisational commitment

The degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organisationAffective commitment: emotional attachmentContinuance commitment: perceived

economic valueNormative commitment: an obligation to

remain with the organisation for moral or ethical reasons

Reasons for CommitmentReasons for Commitment

Affective Commitment

Normative Commitment

Continuance Commitment

Attitude ChangePersuasive communication

Attitude ChangeCognitive dissonance: any incompatibility

between two or more attitudes or between behaviour and attitudes

Does behaviour always follow for attitudes? mediating variables:

Importance of the attitudeSpecificityAccessibilitySocial pressuresDirect experience

Persuasive CommunicationPersuasive Communication

CommunicatorCommunicator

MessageMessage SituationSituation

TargetTarget

Qualities For Attitude ChangeQualities For Attitude Change• Communicator’s overall credibility

• Trust of the intentions of the communicator

• Similar interests or goals

• Attractiveness of the communicator

• Sometimes it is the message

Cognitive DissonanceCognitive DissonanceAn uneasy feeling produced when a person

behaves in a manner inconsistent with an existing attitude

Three key conditions for change:

• The behavior must be substantially inconsistent with the attitude

• The inconsistent behavior must cause harm or have a negative consequence for others

• The inconsistent behavior must be voluntary and not forced

ValuesAbstract ideals related to proper life goals and

methods for reaching those goalsMore general than attitudesNot related to specific objects or situationsAbstract idealsMay underlie groups of attitudes

• Ambition and hard work• Open-mindedness• Cheerfulness• Competence• Cleanliness• and others

• Prosperity• Stimulating, active life• Achievement• World peace• Harmony in nature and art• and others

Types of Values

End values(Personal goals

one ought to have)

Means values(Behaviors one ought to use)

Types of Personal Values

Adapted from Exhibit 5-6 Formation of Consistent Attitudes

Types of Personal Values

ProsperityStimulating, active lifeAchievementWorld peaceHarmony in nature and artEqualityPersonal and family securityFreedomHappiness

End (Goal) Values Means (Behavior) Values

Ambition and hard workOpen-mindednessCompetenceCheerfulnessCleanlinessCourageousnessForgiving natureHelpfulnessHonesty

Exhibit 5-7

Types of Personal Values

Types of Personal Values

Inner peaceMature loveNational securityPleasure and enjoymentReligion and salvationSelf-respectSocial respectFriendshipWisdom

End (Goal) Values Means (Behavior) Values

ImaginationIndependence and self-relianceIntelligenceRationalityAffection and loveObedience and respectCourtesyResponsibilitySelf-discipline

Exhibit 5-7

Adapted from Exhibit 5-6 Formation of Consistent Attitudes

ValuesHofstede’s Model of National Culture

Individualism versus CollectivismPower DistanceAchievement versus Nurturing Orientation

(masculinity vs. femininity)Uncertainty AvoidanceLong-Term versus Short-Term Orientation

Hofstede’s ModelIndividualism - values individual

achievement, freedom, and competition.Collectivism - values group harmony,

cohesiveness, and consensus.Power Distance - the degree to which a

country accepts the fact that power in institutions and organisations is distributed unequally.

Hofstede’s ModelAchievement Orientation - valuing

assertiveness, performance, success, and competition.

Nurturing Orientation - valuing quality of life, warm personal relationships, and service and care for the weak.

Hofstede’s ModelUncertainty Avoidance - degree of

tolerance for uncertainty and willingness to take risks.

Long-Term Orientation - valuing thrift in saving and persistence in achieving goals.

Short-Term Orientation - valuing personal stability and living for the present.

Hofstede’s ModelExample -- United States vs India

US Ind.Power Distance Low HighIndividualism High LowAchievement Orientation High HighUncertainty Avoidance Low LowLong-Term Orientation Low High

4,5 Motivation What is motivation?

Processes that account for an individual’s intensity, direction and persistence of effort in toward attaining a goal.

Focus here on organisational goals

Intensity, direction persistence

What is Motivation?What is Motivation?

Forces coming from within a person that account for the willful direction, intensity, and persistence of the person’s efforts toward achieving specific goals, where achievement is not due solely to ability or to environmental factors

DefinitionThe psychological forces that determine the

direction of a person’s behavior in an organization, a person’s level of effort, and a person’s level of persistence.

Definition-contd.Direction of Behavior - Which behaviors

does a person choose to perform in an organization?

Level of Effort - How hard does a person work to perform a chosen behavior?

Level of Persistence - When faced with obstacles, roadblocks, and stone walls, how hard does a person keep trying to perform a chosen behavior successfully?

EquationEquationPerson’s level of performance is a function (f) of both ability and motivation:

Performance = f (Ability x Motivation)

Environmental factors also play a role

Theories of MotivationTheories of MotivationContent Theories

Maslow’s need hierarchyAlderfer’s ERG theoryMcClelland’s need theoryHerzberg’s two-factor theory

• Process Theories

• Expectancy theory

• Equity theory

• Goal-setting theory

Need TheoriesA group of content theories about work

motivation that focus on workers’ needs as the sources of motivation. These theories attempt to explain what motivates workers.

MaslowBest known theory of motivation in

management circlesHierarchy of five needs:

PhysiologicalSafetySocial or BelongingnessEsteemSelf-Actualisation

Lower order needs and higher order needs

Maslow’s Need HierarchyMaslow’s Need Hierarchy

Esteem NeedsEsteem Needs

Physiological NeedsPhysiological Needs

Safety NeedsSafety Needs

Social and Social and Belongingness NeedsBelongingness Needs

Self-Self-ActualizationActualization

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Maslow-contd.Physiological Needs

Basic needs for things such as food, water and shelter that must be met for survival

Safety NeedsNeeds for security, stability and a safe

environmentBelongingness Needs

Needs for social interaction, friendship, affection and love

Maslow-contd.Esteem needs

The needs to feel good about oneself and one’s capabilities, to be respected by others, and to achieve recognition and appreciation

Self-Actualisation needsThe needs to achieve one’s full potential as a

human being

AlderferCore needs:

Existence (similar to Maslow’s physiological and safety)

Relatedness (Maslow’s social and esteem)Growth (self-actualisation and development)

No rigid hierarchyBoth Maslow and Alderfer are intuitively

appealing but empirical support low

ERG TheoryERG Theory

ExistenceExistenceNeedsNeeds

RelatednessRelatednessNeedsNeeds

GrowthGrowthNeedsNeeds

Satisfaction and Progression

Frustration and Regression

ERG TheoryERG TheoryPeople are motivated by three

hierarchically ordered types of needs: existence needs (E), relatedness needs (R), and growth needs (G). Usually people must satisfy needs at the lower levels before being strongly motivated by higher-level needs. However, frustration at higher levels can lead people to be motivated by lower-level needs

Comparison of Two TheoriesComparison of Two Theories

Maslow’s Need Hierarchy

Physiological Needs

Safety Needs

Social and Belongingness Needs

Esteem Needs

Self- Actualization

Existence Needs

Relatedness Needs

Growth Needs

Alderfer’s ERG Theory

Adapted from Exhibit 6-1: Maslow’s Need Hierarchy and Alderfer’s ERG Theory Compared

MacGregor: Th. X and Th. Y

Theory X assumptions:Employees dislike work, wish to avoid itSo they must be coerced to workEmployees will avoid responsibilities and

seek directionPlace security as main concern and have

little ambition

MacGregor-contd.Theory Y assumptions:

Work is as natural as rest or playPeople will exercise self-direction if they are

committed to the objectivesThe average person can learn to accept

responsibilityThe ability to make innovative decisions is

dispersed throughout the organisation-it is no monopoly of management

McClelland’s Needs TheoryNeed for achievementNeed for powerNeed for affiliation

People with a high need for achievement - Prefer to set their own goals. Set goals of moderate difficulty that are achievable. Like to solve problems rather than leave the results to chance. Are more interested in achieving the goal than in the associated rewards. Prefer situations in which they receive regular, concrete feedback on their performance. Are positive thinkers who find workable solutions to life’s hurdles and challenges. Take a strong personal responsibility for their work.

People with a high need for affiliation - Have a strong desire to be liked and to stay on good terms with most other people. Tend not to make good managers because they often treat different people in different ways (for example, may apply inconsistent rules). Are more concerned with initiating and maintaining personal relationships than with focusing on the task at hand.

People with a high need for institutional power - Are concerned about the functioning of the organization and have a desire to serve others. Are controlled in their exercise of power.

People with a high need for personal power - Desire to influence others for their own personal gain. Are more impulsive in exercising power. Show little concern for other people. Are focused on obtaining symbols of prestige and status (such as big offices).

Best known: n-achHave the desire to do things betterSeek situations where they can set

moderately challenging goals; receive feedback; assume personal responsibility

McClelland-contd.Comments

Some evidence that high achievers are successful in entrepreneurial activities; but may not be good managers

Needs for affiliation and power may also be related: best managers are high in n-Pow and low in n-Aff

Can N-ach be trained? Or is it entirely due to early childhood experiences?

ConclusionConclusionPeople with a high need for institutional

power are particularly good at Increasing moraleCreating clear expectationsGetting others to work for the good of the

organizationEffective managers have both a high need

for achievement and a high need for institutional power

Two-Factor TheoryTwo-Factor TheoryEmphasizes two sets of rewards or outcomes

– those related to job satisfaction and those related to job dissatisfaction

The two sets are not opposite ends of the same continuum but are independent states

Job factors leading to satisfaction are different from those leading to dissatisfaction, and vice versa

Herzberg: Two-factor theory Also called Motivation-Hygiene Theory

Herzberg asked people to describe in detail situations when they felt very good and when they felt very bad about their jobs

Found different factors for good and badNot satisfaction vs. dissatisfaction, but

satisfaction vs. no satisfaction and no dissatisfaction vs. dissatisfaction

Motivators – also called satisfiers, lead to greater job satisfaction

Hygiene factors – also call dissatisfiers, when absent or missing lead to job dissatisfaction

Two-Factor TheoryTwo-Factor Theory

• Achievement

• Recognition

• Responsibility

• Opportunity for advancement or promotion

• Challenging work

• Potential for personal growth

• Pay

• Technical supervision

• Working conditions

• Company policies and procedures

• Interpersonal relationships with others

• Status

• Security

When increased, lead to greater satisfaction

When deficient, lead to greater dissatisfaction

MotivatorsMotivators Hygiene FactorsHygiene Factors

Herzberg-contd.Sources of satisfaction (descending order)

AchievementRecognitionWork itselfResponsibilityAdvancementGrowth

Herzberg-contd.Sources of Dissatisfaction (descending)

Company policy and administrationSupervision; relationship with supervisorsWork conditionsSalaryRelationship with peers; subordinatesStatusSecurity

Herzberg-contd.Criticisms of Herzberg:

Assumes a positive relationship between satisfaction and productivity

Unreliable methodology

All the above theories (Maslow, Alderfer, Herzberg) are intuitively appealing but not backed up by hard data

All the above theories are part of management folklore; hence their importance

Process TheoriesProcess Theories

Expectancy Equity

Goal-Setting

Expectancy TheoryA process theory about work motivation

that focuses on how workers make choices among alternative behaviors and levels of effort.

Expectancy theory – Vroom’s theory that suggests motivation is a function of an individual’s expectancy that a given amount of effort will lead to a particular level of performance, instrumentality judgments (perceived connections) that indicate performance will lead to certain outcomes, and the valence (value) of outcomes.

Expectancy Theory-contd.Key terms:

Valence: the desirability of an outcomeInstrumentality: a perception about the

extent to which performance of one or more behaviours will lead to the attainment of a particular outcome.

Expectancy: a perception about the extent to which effort will result in a certain level of performance.

Expectancy - subjective probability that effort will lead to performance

Instrumentality - subjective probability that a given level of performance will lead to certain outcomes

Valence - An Individual’s expected satisfaction associated with each outcome resulting from performance

Expectancy TheoryEffort-performance:

Do individuals believe that their inputs will result in a given level of performance?

Performance-reward:Do individuals believe that performance at this

level will lead to obtaining outcomes they desire?

I1

I2

I3

E

Expectancy TheoryExpectancy TheoryMF = E x (I x V)

MF = Motivational ForceE = Expectancy

I = InstrumentalityV = Valence

MF = Effort Performance

Outcome

Outcome

Outcome

V1

V2

V3

Adapted from Exhibit 6-2: Expectancy Theory

Expectancy TheoryExpectancy TheoryTo increase motivationHeighten expectancy by increasing associates’

beliefs that exerting effort will lead to higher levels of performance

Increase instrumentalities by clearly linking high performance to outcomes

Increase valence by providing outcomes that are highly valued

Expectancy Theory-contd.

Equity TheoryA process theory about work motivation

that focuses on workers’ perceptions of the fairness of their work outcomes and inputs. (J. Stacy Adams)According to this theory what is important is

the way a worker perceives his outcome/input ratio compared to that of another person

Outcome/input ratio is the relationship between what a worker gets from a job and what he contributes to the job

Equity Theory-contd.Two basic types of inequity

Overpayment inequity: when a person perceives that their outcome/input ratio is greater than the ratio of the referent

Underpayment equity: exists when a person perceives that their outcome/input ratio is less than the ratio of the referent

Equity Theory-contd.Ways to restore equity:

Workers change their inputs or outcomesChange their referents’ inputs or outcomesChange their perceptions of inputs and

outcomes Workers change their referentWorkers leave the organisation or force the

referent to leave

Equity Theory-contd.Implications:

Because inputs are likely to vary across workers outcomes should also vary. Do not give all workers at a given level or holding the same title the same level of outcomes unless their inputs are identical

Distribute outcomes to workers based on their inputs to their jobs and the organisation. Strive to maintain equity for maximum motivation

Equity Theory-contd.Implications:

Because inputs are likely to vary across workers outcomes should also vary. Do not give all workers at a given level or holding the same title the same level of outcomes unless their inputs are identical

Distribute outcomes to workers based on their inputs to their jobs. Strive to maintain equity for maximum motivation

Equity Theory-contd.Because it is perception of equity that drives

motivation, frequently monitor and assess workers’ perceptions about relevant outcomes and inputs

Realise that failure to recognise above average levels of inputs has major motivational consequences

Equity Theory-contd.Equity theory focuses on distributive justice

but attention now on organisational justice, that is overall perception on what is fair in the workplace.Procedural justice: the perceived fairness of

the procedures used to make decisions about distribution of outcomes

The extent to which managers explain their decisions to workers determine perceptions of fairness

Equity TheoryEquity TheoryMotivation is based on a person’s assessment of the ratio of the outcomes received (pay, status) for inputs on the job (effort, ability) compared to the same ratio for a comparison other

My Outcomes

My inputsvs.

Other’s Outcomes

Other’s Inputs

Equity TheoryEquity TheoryPerceived inequity, employees may:Increase or decrease inputsChange their outcomesDistort perceptions of inputs and/or outcomesDistort perceptions of other’s inputs and/or

outcomesChange the referent othersLeave the organization

Reactions to InequityReactions to InequitySensitives – pay a great deal of attention to outcome-input ratios, motivated to resolve any inequity – favorable or unfavorable

Benevolents – tolerant of inequity that is unfavorable but not comfortable with inequity that favors them

Entitleds – do not tolerate unfavorable inequity but are comfortable with inequity that favors them

Reactions to EquityReactions to EquityFeelings of equity frequently lead to outcome satisfaction and job satisfaction, organizational commitment, and organizational citizenship behaviors.

Organizational Citizenship – an associate’s willingness to engage in organizationally important behaviors that go beyond prescribed job duties – helping co-workers, expending extra effort, etc.

Distributive JusticeDistributive Justice

A form of justice that relates to perceptions of fairness in outcomes. Often tied to perceptions of inequity.

Procedural JusticeProcedural Justice

Voice in the decision process

Procedures applied

consistently

Procedures free from bias

Based on accurate information

Formal grievance procedures

Ethical code

Treated with respect

Given reasons for decisions

The degree to which people think the procedures used to determine outcomes are fair. Some rules:

Procedural Procedural JusticeJustice

Goal-Setting TheoryGoal-Setting TheoryChallenging and specific goals increase human performance because they affectattention, effort, and persistence. To beeffective, managers should address:

• Goal difficulty

• Goal specificity

• Goal commitment

• Participation in setting goals

• Feedback

Goal difficulty – how difficult should the performance goal be. Should the goal be easy, moderately difficult, or very difficult to achieve?

Goal specificity – how specific should the expected outcome be (e.g. number of parts assembled), or can goals be more loosely defined (do your best)?

Goal commitment – what will make associates commit to goals?

Participation in setting goals – how important is it for associates to have input in selecting the goals and levels of performance to be achieved? If important, how should they be involved?

Feedback – to what extent should associates be informed of their progress as they work toward the performance goals?

Factors Affecting Goal Factors Affecting Goal CommitmentCommitment

Adapted From Exhibit 6-3: Factors Affecting Goal Commitment

Factors Increasing the Desirability of Attaining a Given Goal

Factors Increasing the Perceived Ability of Attaining a Given Goal

ConclusionsConclusionsFeedback on performance, even in the absence of established goals, is likely to have a positive effect on motivation. Feedback is especially important when performance goals exist and when they are relatively difficult to achieve.

Goal-setting TheoryA theory that focuses on identifying the

types of goals that are most effective in producing high levels of motivation and performance and why goals have these effects.Locke argued that intentions to work towards

a goal are a major source of motivationSpecific goals produce a higher level of effortIntentions articulated in terms of difficult and

specific goals are a motivating force

Implications for ManagementBe sure that a worker’s goals are specific

and difficult, whether set by you, by the worker, or by both of you.

Express confidence in your subordinates’ abilities to attain their goals, and give subordinates regular feedback on the extent of goal attainment.

Implications-contd.When workers are performing difficult and

complex tasks that involve learning, do not set goals until the workers gain some mastery over the task.

ExperiencingStrategic OB

Making Visible ChangeMaking Visible ChangeMotivate employees by:• Providing a well-defined career path

• Providing valued rewards and benefits

• Setting specific, challenging goals

• Providing support to help build client base

• Avoiding layoffs of associates

• Engaging associates in a variety of organizational decisions

Motivating Associates: Integration of Motivating Associates: Integration of TheoryTheory

Adapted from Exhibit 6-4: Motivation Factors Resulting from Motivation Theories

XXXGoal Setting

XXXXEquity

XXXXExpectancy

XHerzberg

XXXXXMcClelland

XXXMaslowERG

Clarify Goals

Provide Feedback

Redesign Jobs

Tie to Performance

Find Rewards

Motivation Theories

Motivation Practices

Motivating Associates: Integration of Motivating Associates: Integration of TheoryTheory

Find meaningful individual rewards Tie rewards to performanceRedesign jobs – job enlargement and job

enrichmentProvide feedbackClarify expectations and goals – some use MBO

Job EnrichmentJob Enrichment

SkillVariety

TaskIdentity

Autonomy Feedback

TaskSignificance

Greg Oldham

Richard Hackman

ExperiencingStrategic OB

Connecting People in the Connecting People in the WorkplaceWorkplace

Deloitte recommends:• Design physical space that fosters

connections

• Build an organizational cushion of time and space

• Cultivate communities

• Stimulate rich networks of high-quality relationships

• Provide collaboration tools

Thoughts?

Provide FeedbackProvide Feedback• Feedback is most effective when provided in

conjunction with goals

• Feedback should be repeated and provided at regular intervals

• Feedback should contain information about how associates can improve their performance

• Feedback should come from a credible source

• Feedback should focus on the performance, not the person

5a StressThe experience of opportunities or threats

that people perceive as important and also perceive they might not be able to handle or deal with effectively.

A condition in which an individual is confronted with an opportunity, constraint, or demand related to what he or she desires and for which the outcome is perceived to be both uncertain and important

Workplace Stress DefinedWorkplace Stress DefinedStress – a feeling of tension that occurs

when a person assesses that a given situation is about to exceed his or her ability to cope and consequently will endanger his or her well-being.

Job stress - the feeling that one’s capabilities, resources, or needs do not match the demands of the job.

Acute stress – a short-term stress reaction to an immediate threat

Chronic stress – a long-term stress reaction resulting from ongoing situations

Potential Sources of StressPersonal StressorsJob-related StressorsGroup- and Organization-related StressorsStressors Arising out of Work-Life Linkages

Personal StressorsGetting marriedGetting divorcedDeath of a close friend/relativeBuying a homeMovingSerious illness

Job-related StressorsRole ConflictRole AmbiguityWork OverloadWork Under-loadPromotionsDemotions-sideliningChallenging Job Assignments

Group and Organization-related StressorsMisunderstandingsConflictInterpersonal DisagreementsUncomfortable Working Conditions

Work-Life Linkage StressorsWork Life - Personal Life Role ConflictFamily ResponsibilitiesWork Requests in Violation of Personal

Values

Consequences

Managing StressIndividual ApproachesOrganizational approachesProblem-focused coping: the steps

people take to deal directly with and act on the source of stress.

Emotion-focused coping: the steps people take to deal with and control their stressful feelings and emotions.

Problem-Focused Coping Strategies for IndividualsTime ManagementGetting Help From a MentorRole Negotiation

(The process through which workers actively try to change their roles in order to reduce role conflict, role ambiguity, overload, or underload.)

Emotion-Focused Coping Strategies for IndividualsExerciseMeditationSocial SupportClinical CounselingNonfunctional Strategies

Problem-Focused Coping Strategies for OrganizationsJob Redesign and RotationReduction of UncertaintyJob SecurityCompany Day CareFlexible Work Schedules and Job Sharing

Emotion-Focused Coping Strategies for OrganizationsOn-Site Exercise FacilitiesOrganizational SupportEmployee Assistance ProgramsPersonal Days and Sabbaticals

Coping Strategies

6 GroupGroup: two or more individuals who have

come together to achieve particular objectives

Formal group: a designated work group defined by an organisation’s structure

Informal group: a group that is neither formally structured nor nor organisationally determined; such a group appears in response to the to the need for social contact

Command group: a group composed of individuals who report directly to a given manager

GroupsTask group: people working together to

complete a job taskInterest group: People working together to

attain a specific objective with which each is concerned

Friendship group: Peole brought together because they share one or more common characteristics

Group - Two or more interdependent individuals who influence one another through social interaction.

Team - Two or more people, with work roles that require them to be interdependent, who operate within a larger social system (the organization), performing tasks relevant to the organization’s mission, with consequences that affect others inside and outside the organization, and who have membership that is identifiable to those on the team and those not on the team.

Formal groups - Groups to which members are formally assigned

Informal groups - Groups formed spontaneously by people who share interests, values, or identities

Identity groups - Groups based on the social identities of members

Virtual teams - Teams in which members work together but are separated by time, distance, or organizational structure

Develop a virtual team charter – that describes everyone’s roles, the decision-making process, and the goals of the team project. This makes it clear who is supposed to be doing what and to what end.

Provide reports on project progress – when people are working apart, they may lose track of how the entire project is progressing and what contributions others are making.

Set up communication rules – such as blackout times when, due to time-zone differences, everyone is not available. These rules should also include acceptable time periods for responding to other inquiries and requests.

Humanize everyone on the team – share pictures and personal information – do this early on. Create a social networking site so people can chat off the job.

Handle serious conflicts face-to-face Have as much face-to-face

communication as possible Reward positive team behavior and

celebrate team success – when most interaction takes place electronically, it is easy to forget about congratulating others for a job well done. Take time to celebrate the team’s successes.

Production teams – groups of associates who produce tangible products

Service teams – groups of associates who engage in repeated transactions with customers

Management teams – groups of senior-level managers who coordinate the activities of their respective units

Project teams – groups of associates (often from different functional areas or organizational units) who temporarily serve as teams to complete a specific project

Advisory teams – groups of associates formed to advise the organization on certain issues

Knowledge Criteria – reflect the degree to which the team continually increases its performance capabilities. Teams are more effective when they share knowledge and understanding.

Affective Criteria – address the question of whether team members have a fulfilling and satisfying team experience. One important faction is the affective tone or general emotional state of the team.

Outcome Criteria – refer to the quantity and quality of the team’s output or to the extent to which the team’s output is acceptable to clients. Should reflect synergy.

Is the Team Needed? – does the project really need a team or would one person be preferred?

Type of task – Diversity works best when tasks require innovation and creativity.

Outcome – Diversity may have a positive effect on performance but a negative effect on members’ reactions to the team and subsequent behaviors, such as turnover.

Time – Diversity can have negative effects in the short run but positive effects in the long run.

Type of diversity – If team members are diverse on factors that lead them to have different performance goals or levels of commitment to the team, or to form subgroups, the relationship between diversity and performance will be negative.

The relationship between members’ personalities and team performance can be quite strong, but the exact relationship depends on the type of task that the team is trying to accomplish. Researchers have several ways of determining the personality of the team; however, all methods are based on aggregating individuals’ scores.

The personality traits that have important effects on team performance include agreeableness (the ability to get along with others and cooperate) and emotional stability (the tendency to experience positive rather than negative emotions).

Also, the greater the degree of conscientiousness among team members, the higher the team’s performance tends to be. This is particularly true when the team’s task involves planning and performance rather than creativity. It appears that agreeable team members contribute to team performance by fulfilling team maintenance roles, whereas conscientious team members perform critical task roles.

Team-level extraversion and openness to experience are positively related only to performance on decision-making and creative tasks.

There is no one ideal number of team members for all situations. Many studies have examined the relationship of team size and team performance, and two lines of thought have emerged. The first suggests that the relationship between team size and team performance is shaped like an inverted U. Thus, as teams become larger, the diversity of skills, talents, ideas, and individual associate inputs into the task is greater, leading to improved performance. However, as the number of team members increases, the need for cooperation and coordination also increases. At some point, the effort that goes into managing the team will outweigh the benefits of having more members, and team performance will begin to decline.

Other researchers, however, have found that performance increases linearly with team size without ever showing a downturn. This linear relationship most likely results when a team avoids the problems associated with too many members, such as social loafing, poor coordination, and worsening communication. Thus, the relationship between team size and team performance depends on other factors, such as the task or the environment.

Divisible tasks – tasks that can be separated into subcomponents

Unitary tasks – tasks that cannot be divided and must be performed by an individual

Maximization tasks – tasks with a quantity goal Optimization tasks – tasks with a quality goal Additive tasks – those in which individual inputs are

simply added together Compensatory tasks – those in which members’

individual performances are averaged together to arrive at the team’s overall performance

Disjunctive tasks – those in which teams must work together to develop a single, agreed upon product or solution

Conjunctive tasks – those in which all members must perform their individual tasks to arrive at the team’s overall performance

Cohesion – refers to members’ attraction to the team. Interpersonal cohesion – team members’ liking or attraction to other

team members. Task cohesion – team members’ attraction and commitment to the

tasks and goals of the team. Conflict – behaviors or beliefs of a team member that are

unacceptable to other team members. More detail in Chapter 12. Personal conflicts – team members simply do not like each other. Substantive conflicts – occurs when a team member disagrees with

another’s task-related ideas or analysis of the team’s problems or plans.

Procedural conflicts – occur when team members disagree about policies and procedures.

Social facilitation – the presence of others improves an individual’s performance.

Social loafing – a phenomenon wherein people put forth less effort when they work in teams than when they work alone.

Communication – sharing information in order to coordinate productive efforts. Can be both formal and informal.

Forming (Orientation) - Members become familiar with each other

Storming (Conflict) - Disagreement and tension among members

Norming (Structure) - Cohesiveness and roles develop

Performing (Work) - High task and goal orientation

Adjourning (Dissolution) - Task completion and termination of roles

Group: Stages of developmentFive stage group development: The five

distinct stages groups go through: forming, storming, norming, performing and adjourning

Forming: the first stage in group development, characterised by much uncertainty

Storming stage: the second stage characterized by intra-group conflict

Norming stage:Third stage characterised by close relationships and cohesiveness

Performing stage: Now the group is fully functional

Adjourning stage: characterised by concern with wrapping up activities rather than task performance

Punctuated Equilibrium Model (PEM) – a model of group development that suggests that groups do not go through linear stages but that group formation depends on the task at hand and the deadlines for that task.

Top Management SupportExplicit vision and strategic plan - Serves as

the basis for determining desirable team outcomes.

Results-oriented measurement of outcomes - Expects all leaders in organization to do same.

Actively include associates at all levels in decision-making process - All decisions that affect associates also affect team performance.

Make explicit decision about using teams - Tie the decision to business objectives.

Actively manage and review support systems for teams - Problems in teams such as needed resources will be revealed in review.

Support Systems Technology - Teams must have access to technology for

performing their tasks, including tools and computer software. Information systems - Teams often need more (or less)

information than they possess. It is crucial to provide a “user friendly” information system.

Selection of team members - Tailor the staffing process to the type of team. Conduct teamwork analysis to identify the knowledge, skills, and abilities needed for both task work and team work. Consider political issues and who is to do the assessment of potential team members.

Training - Team-building training generally focuses on four different types of skills: (1) goal-setting skills; (2) interpersonal skills; (3) problem-solving skills; and (4) role-clarification skills.

Rewards - If people are to work together effectively as a team, they must be rewarded as a team, in addition to individual rewards. Team reward systems may include profit-sharing plans.

Leadership - Successful team leaders perform three roles: (1) team liaison; (2) direction setting; and (3) team operational coordinator.

Group properties 1Roles: a set of expected behaviour patterns

attributed to someone occupying a given position in a social unitRole identity: ceratain attitudes and

behaviours consistent with a roleRole perception: an individual’s view of how

he or she is supposed to act in a given situation

Role expectations: how others believe a person should act in a given situation; psychological contract

role conflict: A situation in which an individual is confronted by divergent role expectations

Zimbardo’s experiment

Group properties-2 NormsHawthorne studiesNorms: acceptable standards of behaviour

within a group that are shared by the group’s members

ConformityAsch studies

Group properties-3 StatusStatus: Socially defined position or rank

given to members by othersDeterminants:The power a person wields over othersa person’s ability to contribute to a group’s

goalsAn individual’s personal characteristics

Group property 4 SizeSocial loafing: free rider

Group property 5 CohesivenessA cohesive group is not a productive group

Group decision makingStrengths: Groups generate more complete

information and knowledgeWeaknesses: conformity, domination by

few, ambiguous responsibilityGroup think: norm for consensus overrides

the realistic appraisal of alternative courses of action

Group shift change in decision risk of individual as a member of a group

TeamsWork group: a group that interacts with

primarily to share information and to make decisions to help each group member to perform

Work team: a group whose individual efforts result in a performance that is greater than the um of the individual inputs

Types of teamsProblem solving teamsSelf-managed work-teamsCross functional teamsVirtual teams

Types of teamsProblem solving teams Groups of 5 to 12

employees from the same department who meet for a few hours each week to discuss ways of improving quality, efficiency, and the work environment

Self-managed work teams: Groups of 10 to 15 people who take on responsibilities of their former supervisors

Types of teamsCross functional teams: employees from

about the same hierarchical level, but from different work areas, who come together to accomplish a task

Virtual teams: teams that use computer technology to tie together physically dispersed members in order to achieve a common goal.

Creating effective teamsContext:

Adequate resourcesLeadership and structureClimate of trustPerformance evaluation and reward systems

Creating effective teamsComposition

Abilities of membersPersonalityAllocating rolesDiversitySize of teamsMember flexibilityMember preferences

Creating effective teamsWork design

AutonomySkill varietyTask identityTask significance

Creating effective teamsProcess

Common purposeSpecific goalsTeam efficacyConflict levelsSocial loafing

Individuals to team playersSelectionTrainingRewards

Team building and team based workTBW emphasizes

on the need for building effectively successful organizations based on teams

11-1

Michael A. Hitt

C. Chet Miller

Adrienne Colella

Chapter 11Groups and Groups and

TeamsTeams

Slides by Ralph R. Braithwaite

ImplicationsDetermine what outcomes your followers

are trying to obtain from their jobs, and make sure that you have as much control as possible over those outcomes.

Distribute desired outcomes to your subordinates when they attain their work goals and perform at a high level.

Implications-contd.Raise your followers’ expectations by

clarifying how they can attain their work goals, removing obstacles that hamper goal attainment and high performance, and expressing confidence in their ability to succeed.

Tailor your leadership behaviors to the characteristics of your subordinates and to the situation.

Implications-contd.When determining how much to allow your

subordinates to participate in decision making, consider the decision to be made, the subordinates involved, and the information you need to make a good decision.

Implications-contd.Realize that participation in decision

making can contribute to your subordinates’ growth and development on the job but can also be time-consuming.

Develop high-quality relationships with as many of your subordinates as possible - that is, have a big in-group and a small out-group.

7 Leadership: BasicsLeadership: The exercise of influence by

one member of a group or organization over other members to help the group or organization achieve its goals.

Leader: An individual who is able to influence group or organizational members to help the group or organization achieve its goals.

The Nature of LeadershipThe Nature of LeadershipThe process of providing general direction and influencing individuals or groups to achieve goals.

Leadership-contd.Leadership is the ability to influence a

group toward the attainment of goals

Group: Two or more individuals who are interacting and interdependent and who have come together to achieve particular objectives

Leadership: Basics-contd.Trait ApproachBehavioural ApproachFiedler’s Contingency ModelSituational TheoryLeader-Member Exchange TheoryPath-Goal TheoryVroom and Yetton Model

Trait Theory of LeadershipTrait Theory of LeadershipConcept that certain traits help make people effective leaders. Early research suggested that the traits fell into three categories:

PhysicalPhysicalCharacteristicsCharacteristics

PersonalityPersonalityCharacteristicsCharacteristics

AbilitiesAbilities

Some CriticismSome Criticism

Physical characteristics such as height and appearance

Personality characteristics such as self-esteem and dominance

Abilities such as intelligence and verbal fluencyCriticized because the methodology used to

identify traits was poor, list of traits associated with leadership grew so large it became meaningless, the results of the research were inconsistent, and no leadership trait was found to relate consistently to unit or organizational performance and different situations seemed to require different traits.

Trait theoriesIntelligenceTask-Relevant KnowledgeDominanceSelf-ConfidenceEnergy/Activity LevelsTolerance for StressIntegrity and HonestyEmotional Maturity/Emotional intelligence

Traits Associated with LeadershipTraits Associated with LeadershipEnergy InsightfulnessAppearance IntegrityIntelligence PersistenceJudgment Self-confidenceVerbal fluency Sense of humorAchievement drive Tolerance for stressAdaptability Interpersonal skillsAggressiveness PrestigeEnthusiasm Extroversion TactInitiative

Adapted from Exhibit 8-1: Common Traits Associated with Leadership

Six Core Traits of LeadershipSix Core Traits of Leadership

DriveDrive LeadershipLeadershipMotivationMotivation IntegrityIntegrity

Self-Self-ConfidenceConfidence

CognitiveCognitiveAbilityAbility

KnowledgeKnowledgeof theof the

DomainDomain

Drive – Ambition, persistence, tenacity, initiative Leadership motivation - Desire to lead, influence

others, assume responsibility, and gain power; two types - socialized power motive, personalized power motive

Integrity – Truthfulness, honesty, maintain consistency between what they say and what they do

Self-confidence - Confident in their actions and show that confidence to others, learn from their mistakes, react positively to stress, even-tempered, display appropriate emotions

Cognitive ability - High degree of intelligence, process complex information, deal with changing environments

Knowledge of the domain - Knowledge of business in which they are engaged, make better decisions, anticipate future problems, understand implications of their actions

Trait theories-contd.Personality traits

AdaptabilityAdjustment (normal)Assertiveness; DominanceEmotional balance and controlOriginality and creativitySelf-confidenceIndependence (non-conformer)Personal integrity

Trait theories-contd.Abilities

IntelligenceJudgement and decisivenessKnowledgeFluency

Trait theories-contd.Social skills

Ability to enlist co-operationAdministrative abilityCooperativenessPopularity and prestige SociabilityTact and diplomacy

Trait theories: criticismsFor at least some traits, it is not clear which

comes first, being in a leadership position or possessing the trait in question.

The trait approach provides little guidance concerning what advice or training to give current or soon-to-be leaders.

Behavioural TheoriesThese focus on what a leader actually doesEarly behavioural theory (Iowa; Lewin, et

al)Authoritarian: L. makes decision alone and

tells subordinates what they are to doDemocratic: L. actively involves

subordinates in the decision making process, sharing problems with them, soliciting their inputs and sharing the authority for taking decisions

Lewin, Lippitt and WhiteLaissez-faire: the leader avoids making a

decision whenever possible and leaves it to subordinates to make individual decisions on their own. Leader is withdrawn.

Behavioral Theories of Behavioral Theories of LeadershipLeadership

University of University of Michigan StudiesMichigan Studies

Ohio StateOhio StateUniversity StudiesUniversity Studies

Behavioural Theories: U MichBasically one dimension (polar opposites)

Employee oriented: the leader is concerned about the welfare and development of subordinates, etc.

Production oriented leaders emphasize planning, goal setting and meeting schedules. They follow a “close” style of supervision.

U. of Michigan-contd.Employee centered:

Concern with subordinate welfare and development

Two-way communication with subordinatesSupportive and non-punitiveResponsibility and authority delegated to

subordinates

U. of Michigan-contd.Production centered

Concern with planning, goal-setting and meeting schedules.

Gives explicit instructions and makes use of power

Evaluative of subordinatesStresses production

Job-centered leadership style – a behavioral leadership style that emphasizes employee tasks and the methods used to accomplish them

Employee-centered leadership style - a behavioral leadership style that emphasizes employees’ personal needs and development of interpersonal relationships

University of Michigan StudiesUniversity of Michigan StudiesJob-Centered Leadership Style

Employee tasksMethods for accomplishment

Employee-Centered Leadership StyleEmployees’ personal needsDevelopment of interpersonal relationships

Behavioural Theories: OSUTwo Dimensions (seen as independent)

Consideration: Behaviour indicating that a leader trusts, respects, and values good relationships with his or her followers.

Initiating Structure: Behaviour that a leader engages in to make sure that work gets done and subordinates perform their jobs acceptably (task oriented)

OSU-contd.Considerate:

FriendlinessConsults with subordinatesRecognises subordinatesOpen communicationSupportivenessRepresents subordinate interests to higher

authorities

OSU-contd.Initiating structure:

PlanningCoordinatingDirectingProblem-solvingClarifying subordinate rolesCriticizing poor workPressurizing subordinates

Ohio State University StudiesOhio State University StudiesConsideration

Leaders express friendshipDevelop mutual trust and respectStrong interpersonal relationships with

staffInitiating Structure

Well defined patterns of organization and communication

Define proceduresDelineate relationships with staffEmphasize goals and deadlinesAssign tasks and identify performance

expectations

Consideration - a behavioral leadership style demonstrated by leaders who express friendship, develop mutual trust and respect, and have strong interpersonal relationships with those being led

Initiating structure - a behavioral leadership style demonstrated by leaders who establish well-defined patterns of organization and communication, define procedures, and delineate their relationships with those being led

Behavioral Theories of Behavioral Theories of LeadershipLeadership

Adapted from Exhibit 8-2: Comparison of Consideration and Initiating Structure with Employee-Centered and Job-Centered Concepts

D

B

Initiating Structure

Co

ns

ide

rati

on

High

High

Low

A(Employee-Centered Style)

C(Job-Centered Style)

Behavioural theories-concl.These researches shifted focus from the

kind of person the leader is (trait theories) to what the leader does.

They discovered some underlying themes or dimensions and the similarity of themes in these three research traditions is remarkable.

Behavioral Theories of LeadershipThe Managerial Grid

Concern for peopleOne of the two dimensions of leadership behavior of

the managerial grid; similar to the behavioral styles of consideration and employee-centered leadership

Concern for productionOne of the two dimensions of leadership behavior of

the managerial grid; similar to the behavioral styles of initiating structure and job-centered leadership

The Managerial Grid

Adapted from Exhibit 8-3: Blake and Mouton’s Managerial Grid

Co

nce

rn f

or

Peo

ple

High Concern

Low Concern

9

8

7

6

5

4

3

2

1

Concern for Production

1 2 3 4 5 6 7 8 9Low Concern High Concern

4,3 style

8, 7 style

2, 6 style

The “best” leadership style

9,9 style

Grid Training helps leaders move to a style high in both• Concern for people • Concern for production

Contingency theoriesThese theories claim that the most

effective leader behaviour is contingent on the characteristics of the situation

So we would want to “fit” the leader to the situation

Fiedler’s Theory of LeadershipFiedler’s Theory of LeadershipEffectiveness depends on leader’s

behavioral style and the situationLeader style measured by the LPC (least

preferred co-worker) scaleSituational favorableness assessed by

three things:

Leader-memberrelations

Task structure Position power

Fiedler’s Contingency TheoryThe theory that leader effectiveness is

determined by both the personal characteristics of leaders and by the situation in which leaders find themselves.

Devised a questionnaire called the Least Preferred Co-worker or LPC to determine whether a person is relationship-oriented or task-oriented.

Fiedler-contd.A person is asked to think about and grade

a least preferred co-worker-someone with whom he has worked with or works with now

It is found that some people grade the least preferred co-worker positively, (high LPC scorers) whereas others have a more negative impression.

Fiedler-contd.According to Fiedler high LPC scorers are

those who are motivated towards close interpersonal relations (democratic, employee centered, considerate)

Low LPC scorers are the opposite (authoritarian etc.)

Fiedler’s LPC ScaleFiedler’s LPC ScaleEsteem for Least Preferred Co-Worker

Cooperative Uncooperative___:___:___:___:___:___:___:___

8 7 6 5 4 3 2 1

Friendly Unfriendly___:___:___:___:___:___:___:___

8 7 6 5 4 3 2 1

• Low LPC Score• Negative adjectives

• Task-oriented leader (task achievement needs first)

• High LPC Score• More positive adjectives

• Relationship-oriented leader (interpersonal relationship needs first)

Situational CharacteristicsSituational CharacteristicsLeader-Member Relations

The degree to which a leader is respected, accepted, and had friendly interpersonal relationships with followers

Task StructureThe degree to which tasks are broken down into

easily understood steps or partsPosition Power

The degree to which a leader can reward, punish, promote, or demote individuals in the unit or organization

Fiedler's Situational CharacteristicsLeader-Member Relations - The

relationship between a leader and his or her followers.

Task Structure - The extent to which the work to be performed by a group is clearly defined.

Position Power - The amount of formal authority a leader has.

Fiedler-contd.These situational characteristics are

arranged in a hierarchy of importanceLeader-Member Relations most imp.Next comes Task Structure Finally Position Power Situations range from very favourable for

leader to very unfavourable

Fiedler’s Contingency Theory of Fiedler’s Contingency Theory of Leadership EffectivenessLeadership Effectiveness

Adapted from Exhibit 8-3: Fiedler’s Contingency Model of Leadership Effectiveness

Fiedler-contd.

An evaluation of the three situational characteristics will suggest that either a relationship-oriented leadership style or a task-oriented leadership style is best depending upon circumstances.

Fiedler-contd.Task oriented style:

Best in the two extreme situations (I,II … VIII)Relationship-Oriented Leadership Style:

Best in the middle situations (III to VII)Assign task-oriented leaders to very

unfavourable or to very favourable situations. Assign relationship-oriented leaders to moderately favourable situations.

Fiedler-contd.If you or one of your subordinates is a

relationship-oriented leader in a very unfavourable situation, try to increase the favourability of the situation by improving leader-member relations, increasing task structure by clarifying goals or ways to achieve goals, or raising levels of position power.

Path-Goal Leadership TheoryPath-Goal Leadership Theory

LeadershipStyle

ContingencyFactors

Outcomes

Path-goal leadership theory – a theory of leadership based on expectancy concepts from the study of motivation, which suggests that leader effectiveness depends on the degree to which a leader enhances the performance expectancies and valences of his or her employees.

Leader EffectivenessLeader EffectivenessLeadership can effect employees’ expectancies and valences in several ways:Assign tasks that have high value (valence)Support employees’ efforts (effort → performance

expectancy)Tie rewards to goal accomplishment

(performance→reward instrumentality)

• Directive Leadership

• Supportive Leadership

• Achievement-Oriented Leadership

• Participative Leadership

• Directive Leadership

• Supportive Leadership

• Achievement-Oriented Leadership

• Participative Leadership

Path-Goal Leadership TheoryPath-Goal Leadership Theory

Leader BehaviorsLeader Behaviors

• Subordinate Characteristics

• Work Environment Characteristics

• Subordinate Characteristics

• Work Environment Characteristics

Situational FactorsSituational Factors

Effectiveness of leader behavior depends on these situational factors

Leader Behaviors: Directive Leadership – Leadership behavior characterized

by implementing guidelines, providing information on what is expected, setting definite performance standards, ensuring individuals follow rules

Supportive Leadership - Leadership behavior characterized by friendliness and concern for individuals’ well-being, welfare, and needs

Achievement-Oriented Leadership - Leadership behavior characterized by setting challenging goals and seeking to improve performance

Participative Leadership - Leadership behavior characterized by sharing information, consulting with those who are led, and emphasizing group decision-making

Situational Factors: Subordinate Characteristics – Needs, Locus of control,

Experience, Ability Work Environment Characteristics - Task structure,

Interpersonal relations in the group, Role conflict, Role clarity

Interaction of Leader Behavior and Interaction of Leader Behavior and Situational FactorsSituational Factors

Locus ofLocus ofControlControl

Need forNeed forAffiliationAffiliation

Need forNeed forSecuritySecurity

Participative, DirectiveParticipative, Directiveor Supportive Leadersor Supportive Leaders

Need forNeed forGrowthGrowth

Employee with Internal Locus of Control – Participative Leader

Employee with External Locus of Control – Directive Leader Employee with High Need for Affiliation – Supportive

Leader Employee with High Need for Security – Directive Leader Structured Task Work Environment – Supportive Leader Unstructured Task Work Environment – Directive Leader Employee with High Growth Need Strength – Complex Task

Work Environment – Participative and Achievement Oriented Leader

Employee with Low Growth Need Strength – Complex Task Work Environment – Directive Leader

Employee with High Growth Need Strength – Simple Task Work Environment – Supportive Leader

Employee with Low Growth Need Strength – Simple Task Work Environment – Supportive Leader

Interaction of Leader Behavior and Interaction of Leader Behavior and Situational FactorsSituational Factors

Adapted from Exhibit 8-4: Interaction of Leader Behavior and Situational Factors

Characteristics of the Work Environment

Subordinate Characteristics

Effective Leader Behaviors

Situational Factors

Internal locus of control

External locus of control

High need for affiliation

High need for security

High growth need

Strengths

Low growth need

High growth needLow growth need

Structured task

Unstructured task

Complex task

Complex task

Simple taskSimple task

Supportive

Directive

Participative/ Achievement oriented

Directive

Supportive

Participative

Directive

Supportive

Directive

Supportive

Path-Goal TheoryA theory which describes how leaders can

motivate their followers to achieve group and organizational goals and clarifies the kinds of behaviours leaders can engage in to motivate followers.

Path-Goal Theory-contd.It argues that the leader can influence the

satisfaction, motivation and performance of subordinates by:Providing the subordinates with rewardsMaking attainment of these rewards

contingent upon the accomplishment of performance goals

Helping subordinates to obtain rewards by clarifying the path to these goals

Path-Goal Theory-contd.Effective leaders motivate their followers to

achieve group and organizational goals.

Effective leaders make sure that they have control over outcomes their subordinates desire.

Path-Goal Theory-contd.Effective leaders reward subordinates for

performing at a high level or achieving their work goals by giving them desired outcomes.

Effective leaders raise their subordinates’ beliefs about their ability to achieve their work goals and perform at a high level.

Path-Goal Theory-contd.

In determining how to treat their subordinates and what behaviours to engage in, effective leaders take into account their subordinates’ characteristics and the type of work they do.

Effective style is one which complements the subordinate’s situation by providing direction and assistance

Path-Goal Theory-contd.To achieve above the leader has to indulge

in different types of behaviour:Directive BehaviourSupportive BehaviourParticipative BehaviourAchievement-Oriented Behaviour (this

emphasises excellence in the performance of subordinates)

Leadership: Contemporary Issues Transactional LeadershipCharismatic LeadershipTransformational Leadership

Authentic LeadershipGender and Leadership

Transactional LeadershipLeadership that motivates followers by

exchanging rewards for high performance and noticing and reprimanding subordinates for mistakes and substandard performance.

Transactional LeadershipTransactional LeadershipA leadership approach that is based on the exchange relationship between followers and leaders. It is characterized by contingent behavior and active management-by-exception behavior.It is the degree to which leaders provide what followers want in response to good performance.

Four Characteristics of Transactional Four Characteristics of Transactional LeadersLeaders

• Understand what followers want to receive from their work, and attempt to give them what they desire, contingent on performance

• Clarify links between performance and reward

• Exchange rewards and promises of rewards for specified performance levels

• Respond to the interests of followers only if the followers are performing satisfactorily

Transactional LeadershipTransactional LeadershipContingent Reward Behavior

Clarify performance expectationsReward followers when expectations are met

Active Management-by-Exception BehaviorClarifies minimal performance standards

Punishes when standards are not met

Consistently MonitorsPerformance

Transformational LeadershipLeadership that inspires followers to trust

the leader, perform behaviours that contribute to the achievement of organizational goals, and perform at a high level.

Transformational LeadershipTransformational LeadershipA leadership approach that involves motivating followers to do more than expected, to continuously develop and grow, to increase self-confidence, and to place the interests of the unit or organization before their own.Involves charisma, intellectual stimulation, and individual consideration.

Transformational Leaders Do Three Transformational Leaders Do Three ThingsThings

Increase followers awareness of the importance of pursuing a vision or mission and the strategy required

Encourage followers to place the interests of the unit, organization, or larger collective before their own personal interests

Raise followers’ aspirations so they continuously try to develop and improve themselves while striving for higher levels of accomplishment

CharacteristicsCharacteristics

Charisma

IntellectualStimulation

IndividualConsideration

Charismatic LeaderA self-confident, enthusiastic leader able to

win followers’ respect and support for his or her vision of how good things could be.

Charismatic Leader-contd.1. The behavioural components of

Charismatic Leadership are interrelated and as such they form a constellation of components

2. Leaders are charismatic when their vision is highly discrepant from the status quo yet remains within the latitude of acceptance for their followers

Charismatic Leader-contd.3. Charismatic leaders may take high

personal risks, incur high costs and engage in self-sacrifice to achieve a shared vision

4. Charismatic leaders demonstrate expertise in transcending the existing order through use of unconventional or extraordinary means

Charismatic Leader-contd.5. Charismatic leaders engage in

behaviours that are novel, unconventional and counter-normative, and as such involve high personal risk or high probability of hurting their own self interest.

Charismatic Leader-contd.6. Charismatic leaders engage in realistic

assessments of the environmental resources and constraints affecting the realization of their visions.

7. Charismatic leaders portray the status quo as negative or intolerable and the future vision as the most attractive and attainable alternative.

Charismatic Leader-contd.8. Charismatic leaders articulate their

motivation to lead through assertive behaviour and expression of self confidence, expertise, unconventionality and concern for followers’ needs.

Charismatic Leader-contd.9. Charismatic leader’s influence on their

followers stems from the use of personal idiosyncratic power (expert power and referent power) rather than the use of position power (legal, coercive and reward power)

Charismatic Leader-contd.10. Charismatic leaders exert idiosyncratic

personal power over their followers through entrepreneurial and exemplary behaviour rather than through consensus seeking or directive behaviour.

Charismatic Leader-contd.11. Charismatic leaders act as reformers or

agents of radical changes and their charisma fades when they act as administrators (caretaker role) or managers (nudging role)

Charismatic Leader-contd.12. Contextual factors that cause potential

followers to be disenchanted with the prevailing social order or cause followers to experience psychological distress, although not necessary for the emergence of charismatic leaders facilitate such emergence.

Charismatic Leader-contd.13. Under conditions of relative social

tranquility and lack of psychological distress among followers the actions by a leader that foster or support an attribution of charisma facilitate the emergence of that leader as a charismatic leader.From Conger and Kanungo

Charismatic LeadersCharismatic Leaders

Charisma

• Inspire emotion and passion in followers

• Get followers to identify with the leader

• Display confidence

• Communicate and live up to organizational values

• Optimistic and enthusiastic

Intellectual Intellectual StimulationStimulation

IntellectualStimulation

• Increase the followers’ focus on problems and develop new ways to solve them

• Reexamine assumptions

• Seek out different views

• Work to be innovative

Individual ConsiderationIndividual Consideration

IndividualConsideration

• Support and develop followers to improve self-confidence and a desire to improve performance

• Provide individualized attention to followers

• Focus on followers’ strengths

• Act as teachers and coaches

Common BehaviorsCommon Behaviors• Articulate clear, appealing vision

• Communicate the vision

• Delegate significant authority and responsibility

• Eliminate unnecessary bureaucratic restraints

• Provide coaching, training and developmental experiences

• Encourage open sharing of ideas and concerns

• Encourage participative decision making

• Promote cooperation and teamwork

• Modify structure to promote key values and objectives

Transformational Leadership

The EffectsThe Effects

Adapted from Exhibit 8-5: The Effects of Transformational and Transactional Leadership

TransformationalLeadership

Transactional Leadership

CharismaIntellectual StimulationIndividual Consideration

Contingent Reward BehaviorActive Management by

Exception

Outcomes

Individual OutcomesUnit/Organization Outcomes

Dynamism of the task/organizational

environment

Authentic LeadershipThey know who they are, know what they

believe in and value, and act on those values candidly and openly.

They are ethical and inspire trust

ExperiencingStrategic OB

Authentic LeadersAuthentic Leaders• Guided by values that focus on doing

what’s right for their constituencies

• Try to act in accordance with their values

• Remain transparent

• “Walk the talk”

• Place equal weight on getting the task accomplished and developing associates

• Continuously develop themselves

• Have developed values and personal strengths they need to deal with ambiguous ethical issues

Thoughts?

TrustA positive expectation that the other will

not behave opportunisticallyPositive expectation assumes knowledge and

familiarityOpportunistically refers to the inherent risk

and vulnerability in any trusting relationship

What is trust?Integrity:

honesty and truthfulnessCompetence:

Technical and interpersonal knowledge and skills

Consistency: Reliability, predictability and good judgment

in handling situations

What is trust?-contd.Loyalty

Willingness to protect another personOpenness

Will the person give you the full truth

Types of TrustDeterrence-based

Based on fear of reprisal if trust is violatedKnowledge-based

When one has adequate information about the other to be able to predict his behaviour

Identification-basedEmotional connection: parties understand the

other’s intentions and appreciate their wants

Contemporary leadership rolesTeam leadershipMentoring: a senior employee who

sponsors supports and trains a juniorSelf leadership: a senior employee who

sponsors and supports a less experienced employee

Challenges to the conceptLeadership as attributionThe idea that leadership is an attribution

that people make about other individualsSubstitutes and neutralizers

Substitutes: make leaders unnecessary Neutralizers: makes it impossible for leader

behaviour to make any difference

8 What is Communication?8 What is Communication?The sharing of information between two or more people to achieve a common understanding about an object or situation. Success occurs when the person receiving the message understands it in the way the sender intended.

This is a problem with communication from time to time.

Communication ProcessCommunication Process

Communication Medium

Encoded Message

Received Message

Decoded Message

Adapted from Exhibit 9-1: Sent Message

Sen

der

Receiver

Received Feedback

Sent Message

Feedback

Sender – the person who wishes to communicate a message

Receiver – the person with whom the sender wishes to communicate

Encoding – the process whereby a sender translates the information he or she wishes to send into a message

Communication medium or channel – the manner in which a message is conveyed

Decoding – the process whereby a receiver perceives a sent message and interprets its meaning

Feedback – the process whereby a receiver encodes the message received and sends it back to the original sender

Organizational CommunicationOrganizational CommunicationPatterns of communication at the organizational

level – formal and informalPurpose to facilitate achievement of

organizational goalsInvolves the use of communication networks,

policies, and structures

CommunicationCommunicationTwo-way Communication –

communication that includes feedback and an exchange of information between two or more parties

One-way Communication – communication that does not include feedback

Communication within Organizations

Organizational communicationPatterns of communication at the

organizational levelPurpose is to facilitate achievement of

organizational goalsInvolves the use of

Communication networksPoliciesStructures

Communication NetworksCommunication Networks

Adapted from Exhibit 9-2: Communication Networks

Y Network

Wheel NetworkCircle Network Decentralized

Networks

Centralized Networks

All Connected Network

Centralized networks – all communications pass through a central point or points so that each member of the network communicates with only a small number of others – the Y and the Wheel

Decentralized networks – many people or units can communicate with many others – the Circle and the All-Connected

Direction of Direction of Organizational CommunicationOrganizational Communication

Downward

UpwardHorizontal

Peers

Manager

Customers

Direct Reports

360° Feedback

Direction of Organizational Communication

DownwardFrom supervisor to subordinate

Job instructionsInformation on organization policiesPerformance feedbackInform associates about the organization’s goals and

changes

Direction of Organizational Communication

UpwardFrom subordinate to supervisor

Grievance proceduresDepartmental meetingsParticipation in decisionsAnd others

Upward communication may be necessary toMonitor the effectiveness of decisionsProvide informationMaintain associate moraleEnsure that jobs are being done properly

Direction of Organizational Communication

Horizontal (lateral)Between associates at the same levelFacilitates coordination among organizational

unitsMay arise from integrating positions

(boundary-spanning positions)360-degree performance feedback

360 Degree Feedback – feedback and appraisals from a variety of levels – peers, subordinates, and supervisors. Sometimes the feedback will also come from customers, clients, suppliers, and others who have contact with the individual. One problem that some subordinates have experienced is retaliation by their supervisors; another problem is that peers may be politically motivated to either overrate or underrate their co-workers.

Interpersonal CommunicationDirect verbal or nonverbal interaction

between two or more active participantsFormal vs. informal issues

Informal includes spontaneous interactionsInformal may reach more associatesInformal can help build cohesion and friendship

among associatesInformal may include untrue rumors and gossip

Communication MediaCommunication Media

Richness describes the amount of information a medium can convey.

Richness depends on:The availability of feedbackThe use of multiple cuesThe use of effective languageThe extent to which the communication has a

personal focus

Communication MediaCommunication Media

Least Rich Least Rich

RichestRichest

Face-to-face

Formal numerical text

Formal written text

Personal written text

Electronic messaging

Telephone

EquivocalEquivocalMessagesMessages

Equivocal messages are those that can be interpreted in multiple ways

9-417

Nonverbal CommunicationNonverbal CommunicationCommunication that takes place without using language, such as facial expressions or body language

Body Language Paralanguage Gestures

Attitude

Lying?

9-418

• Body language (kinesics) - Facial expressions, Use of hands, arms, legs and posture

• Paralanguage (How something is said) - Tone and pitch of voice, Use of silence

• Gestures - Hand signals, Shrugging one’s shoulders

9-419

Barriers to Effective Barriers to Effective CommunicationCommunication

Organizational

Individual

9-420

• Organizational barriers – information overload, noise, time pressures, breakdown in the communication network, information distortion, and cross-cultural barriers

• Individual barriers – differing perceptual bases, semantic differences, consideration of self-interest, personal space, and poor listening skills

9-421

Organizational BarriersOrganizational Barriers

InformationOverload

InformationOverload NoiseNoise

Time PressuresTime Pressures NetworkBreakdowns

NetworkBreakdowns

InformationDistortion

InformationDistortion

Cross-CulturalBarriers

Cross-CulturalBarriers

Specialty AreaJargon

Specialty AreaJargon

9-422

Information Overload • receiving more information than can be reasonably processed. Occurs for

several reasons – First, organizations face higher levels of uncertainty because of escalating change and turbulence in the external environment, so they obtain more information to reduce the uncertainty. Second, the increasing complexity of tasks and organization structures creates a need for more information. Again, organizations employ more specialists to provide the needed information, placing greater information-processing burdens on organizational members. Third, ongoing developments in technology – small mobile computers, the Internet, intranets, the growing number of large organizational databases – increase the amount of information available to associates and managers. One way in which organizations are trying to deal with the overload caused by electronic messaging and e-mail is by adopting newer, web-based interactive technologies for internal communications. These include blogs, wiki sites, and social networking sites. With this technology, messages are all posted in one place, avoiding redundancy. Also, new anti-spam software has helped businesses cut down on the cost of unwanted e-mail.

9-423

Noise

• Anything that disrupts communication or distorts the message. Noise can be either an organizational-level barrier or an individual-level barrier. It may occur at any step in the communication process or within any element, and it may occur in many forms. Often, it is unintentional, as when two parties have different perceptions of a message. But at times noise may be intentional. Other examples of noise include language barriers (especially in international firms), interruptions, emotions, and attitudes.

9-424

Time Pressures

• In most organizations work needs to be done under deadlines, which create time pressures and constrain an individual’s ability to communicate. When people are under time pressure, they sometimes do not carefully develop a message before sending it. In addition, the pressure of a deadline often does not allow for time to receive feedback, so the sender may not know whether the receiver accurately perceived the message.

9-425

Network Breakdowns

• Breakdowns in the communication network frequently occur in large organizations because so much information flows through those networks. Many things can interfere with the flow – mail can be misplaced, messages may not be received by those targeted, and people can forget to relay pieces of information. Larger organizations have more problems because messages must flow through more people, increasing the probability that the message will be transmitted inaccurately at some point. One other factor that can cause communication network breakdowns is the architecture of the work environment.

9-426

Specialty Area Jargon

• One problem in large, complex organizations concerns the proliferation of specialists. Specialists are highly knowledgeable within their own fields but frequently have limited understanding of other fields. In addition, they often have their own “language,” or jargon. It may be difficult for two specialists in different fields to communicate effectively with one another because they use different terminology.

9-427

Information Distortion

• It is common for information to be distorted, either intentionally or unintentionally. Unintentional distortion can occur because of various problems, such as time pressures, or because of perceptual differences. However, intentional distortion often occurs because of competition between work units in an organization. Departments frequently have to compete for scarce resources in their operating budgets. Suppression or distortion of information can (and does) also occur when an associate has more information than his or her supervisor.

9-428

Cross-Cultural Barriers

• Cross-cultural barriers occur for two general reasons: lack of language fluency and lack of cultural fluency. Even though English is becoming an international language for business, the potential for language barriers continues to exist in cross-cultural communications. Language fluency is one dimension of what is known as cultural fluency – the ability to identify, understand, and apply cultural differences that influence communication. Language fluency is necessary for cultural fluency but is not itself enough. Cultural fluency can affect many dimensions of organizational behavior, including negotiating styles, nonverbal behavior, personal space, and the use of symbols.

9-429

Individual BarriersIndividual Barriers

DifferingDifferingPerceptionsPerceptions

SemanticSemanticDifferencesDifferences

StatusStatusDifferencesDifferences

Consideration ofConsideration ofSelf-interestSelf-interest

PersonalPersonalSpaceSpace

Poor ListeningPoor ListeningSkillsSkills

9-430

Differing Perceptions

• One of the most common communication failures occurs when the sender has one perception of a message and the receiver has another. Differing perceptions are caused by differing frames of reference. Our expectations or frames of reference can influence how we recall and interpret information.

9-431

Semantic Differences

• Semantics refers to the meaning people attach to symbols, such as words and gestures. Because the same words may have different meanings to different people, semantic differences can create communication problems. One reason for semantic differences relates to the proliferation of specialists in organizations. Specialists tend to develop their own jargon; such terminology may have little meaning to a person outside the specialist’s field.

9-432

Status Differences

• can result from both organizational and individual factors. Organizations create status differences through titles, offices, and support resources, but individuals attribute meaning to these differences. Status differences can lead to problems of source credibility and can create problems that block upward communication (and thus feedback). To be effective communicators, managers must overcome the status difference that exists between them and the associates reporting to them.

9-433

Consideration of Self-Interest

• Often, information provided by a person is used to assess his or her performance. For example, it is not uncommon for firms to request information from managers about their units’ performance. Data such as forecasts of future activity, performance standards, and recommendations on capital budgets are often used in determining the managers’ compensation. Research shows that where data accuracy cannot be independently verified, managers sometimes provide information that is in their own self-interest. Although this does not necessarily mean they intentionally distort information, they may provide incomplete data, selecting only information that is in their own best interests.

9-434

Personal Space

• All of us have a personal space surrounding our bodies. When someone enters that space, we feel uncomfortable. The size of the personal space differs somewhat among individuals; it also differs by gender and across cultures. Women seem to have smaller personal spaces than men. Similarly, the typical personal space in some cultures (such as some European and South American cultures) is smaller than that in other cultures (such as the United States).

9-435

Poor Listening Skills • A frequent problem in communication rests not with the sender but with

the receiver. The receiver must listen in order to hear and understand the sender’s message, just as the sender must listen to feedback from the receiver. Managers spend more than 50 percent of their time in verbal communication, and some researchers estimate that they spend as much as 85 percent of this time talking. This does not leave much time for listening and receiving feedback. Perhaps more importantly, it has been estimated that managers listen with only about 25 percent efficiency. Therefore, they hear and understand only 25 percent of what is communicated to them verbally. This can lead the speaker to become annoyed and discouraged, thus leaving a bad impression of the listener. Poor listening is not conducive to high-involvement management, because it breaks down the communication process and will limit information sharing.

9-436

Communication AuditCommunication Audit

Recommended Audit Methodology

• Hold a planning meeting – approach and commitment

• Conduct interviews with top management

• Collect, inventory, and analyze material

• Conduct associate interviews

• Prepare and administer a questionnaire to measure attitudes toward communication

• Communicate survey results

Analysis of an organization’s internal and external communication to assess communication practices and capabilities and determine needs

9-437

Communication ClimatesCommunication Climates

Associates’ perceptions regarding the quality of communications within the organization.

MutualTrust

Credibility

Feedback

9-438

Communication ClimatesCommunication Climates

• Organizations can overcome communication barriers by establishing mutual trust between senders and receivers, communication credibility is present, and feedback is encouraged. Managers also should encourage a free flow of downward, upward, and horizontal communication. People must be comfortable in communicating their ideas openly and in asking questions when they do not understand or they want to know more. Information should be available and understandable. People in organizational units should be allowed to develop their own communication systems independently for an effective communication culture.

9-439

Individual ActionsIndividual Actions

• Know your audience

• Select an appropriate communication medium

• Encourage feedback

• Regulate information flow and timing

• Listen actively

9-440

Know your audience

• communicate with others as if you were communicating with yourself. To communicate effectively, people must know their audience, including the audience’s experience, frames of references, and motivations.

9-441

Select an appropriate communication medium

• when messages are important or complex, use of rich media, such as face-to-face communication, is necessary. Also, when dealing with important and/or complex information, it is best to use several forms of communication – for example, by following a face-to-face communication with an e-mail message summarizing the discussion.

9-442

Encourage feedback

• Communication is a two-way process. To ensure that the received message is interpreted as intended, feedback from the recipient is necessary. Some guidelines that individuals can use to obtain feedback include asking recipients to repeat what they have heard, promoting and cultivating feedback, but not trying to force it, rewarding those who provide feedback and using the feedback received and responding to feedback, indicating whether it is correct. In other words,obtaining feedback, using it, and then feeding it back to recipients.

9-443

Regulate information flow and timing

• Regulating the flow of information can help to alleviate communication problems. Regulating flow involves discarding information of marginal importance and conveying only significant information. That is, do not pass on irrelevant information, or else important messages may be buried by information overload or noise.

• The proper timing of messages is also important. Sometimes people are more likely to be receptive to a message and to perceive it accurately than at other times. Thus, if you have an important message to send, you should not send it when recipients are about to leave work, are fully engaged in some other task, or are receiving other communication.

• Listen actively – poor listening skills are a common barrier to effective communication. People tend to hear and understand only around 25 percent of what is communicated to them verbally. Listening is not a passive, naturally occurring activity. People must actively and consciously listen to others in order to be effective communicators.

9-444

Steps to Effective ListeningSteps to Effective Listening

Adapted from Exhibit 9-5: Steps to Effective Listening

Stop talking

Pay attention

Listen empathetically

Hear before evaluating

Listen to the whole message

Send feedback

9-445

Steps to Effective ListeningSteps to Effective Listening

• 1. Stop talking. Often, we talk more than we should without giving the other person a chance to respond. If we are thinking about what we will say when we talk, we cannot focus attention on the person we wish to listen to. Do not interrupt.

• 2. Pay attention. Do not allow yourself to be distracted by thinking about something else. Often, we need to make an active effort to pay attention when others are speaking.

9-446

Steps to Effective ListeningSteps to Effective Listening

• 3. Listen empathetically. Try to take the speaker’s perspective. Mirror the speaker’s body language and give him or her nonjudgmental encouragement to speak.

• 4. Hear before evaluating. Do not draw premature conclusions or look for points of disagreement. Listen to what the person has to say before jumping to conclusions or judgment.

9-447

Steps to Effective ListeningSteps to Effective Listening

• 5. Listen to the whole message. Look for consistency between the verbal and the nonverbal messages. Try to assess the person’s feelings or intentions, as well as just facts.

• 6. Send feedback. In order to make sure that you have heard correctly, paraphrase what was heard and repeat it to the person you were listening to.

8a Decision making

Dawn Ostroff’s Decision Making at the CW Television Network

Dawn Ostroff

• What are your thoughts about Ostroff’s decision-making process regarding programming at the “new” network?

• Given the nature of the decisions needed, did she used the knowledge and wisdom of her advisors wisely?

• What are your thoughts about the “creative and somewhat risky tactics” that were adopted?

• Do you think the network will survive and be successful in the future?

Exploring Behavior in Action

Knowledge Objectives1. Describe the fundamentals of decision making,

including the basic steps and the need to balance ideal and satisfactory decisions.

2. Discuss four important decision-making styles, emphasizing the effectiveness of each one.

3. Explain the role of risk-taking propensity and reference points.

4. Define cognitive bias and explain the effects of common types of cognitive bias on decision making.

5. Discuss common pitfalls of group decision making.6. Describe key group decision-making techniques.7. Explain the factors managers should consider in

determining the level of associate involvement in managerial decisions.

Fundamentals of Decision Making

Decisions are choices of actions from among multiple feasible alternatives.

Making decisions is one of the primary activities of senior managers.

Decisions are also made by managers at all levels and by associates in high-involvement organizations.

Decision-Making Process

Adapted from Exhibit 10-1: The Decision-Making Process

Define the Problem

Identify Criteria

Gather and Evaluate Data

List and Evaluate Alternatives

Select Best Alternative

Implement and Follow Up

Feedback

Optimal versus Satisfactory Decisions

Optimal decision Satisficing decision

Decision-Making Styles

Carl Jung

Individuals’ predispositions can affect decision process at two critical stages

Gathering Gathering (Perceiving) (Perceiving)

of Informationof Information

Sensing styleSensing styleIntuition styleIntuition style

Evaluating Evaluating (Judging) of (Judging) of AlternativesAlternatives

Thinking styleThinking styleFeeling styleFeeling style

Decision-Making Styles

Adapted from Exhibit 10-2: Influence of Decision Styles

Implement and Follow Up

Pe

rce

ptu

al

Infl

ue

nce

s IntuitionSensing

Ju

dg

men

tal

Infl

ue

nce

s

Fe

edb

ack

Identify Criteria

Gather and Evaluate

Information

List and Evaluate Alternatives

Select Best Alternative

Define the Problem

Using abstractions and describing the

“big picture”

Using the five senses to identify

factual details

FeelingThinking

Subjective values with emotional and

personal factors

Objective analysis, rational

procedures

Gathering Information

SensingSensingA decision style focused on

gathering concrete information directly through the senses,

with an emphasis on practical and realistic ideas.

IntuitionIntuitionA decision style focused on developing abstractions and figurative examples for use in

decision making, with an emphasis on imagination and

possibilities.

Intuition StyleValuable when:

• A high level of ambiguity exists

• Few or no precedents exist

• Facts are limited

• Facts don’t clearly indicate which way to go

• Time is limited and there is pressure to make the right decision

• Several plausible alternative solutions exist with good arguments for each

Evaluating Alternatives

ThinkingThinkingA decision style focused on

objective evaluation and systematic analysis.

FeelingFeelingA decision style focused on

subjective evaluation and the emotional reactions of others.

ManagerialAdvice

Nurturing Alternative Decision Styles

What are your thoughts about the comment that many accountants believe that more data is better and they hide behind “a mass of data”?

What are your thoughts that some marketers have “blind spots” when it comes to having to do data analysis?

What are you thoughts about the Six Thinking Hats concept of Edward de Bono?

Edward de Bono

Degree of Acceptable RiskRisk exists when the outcome of a chosen

course of action is not certainRisk-taking propensity (Willingness to take

chances)

Reference Point

Cognitive Biases

Confirmation biasSeeking information that confirms early beliefs and ideas

Ease of recall biasRelying too much on information that is easy to recall from memory

Anchoring biasEmphasizing too much the first piece of information encountered

Sunk-cost biasNot treating past investments (time, effort, money) as sunk-costs when deciding to continue an investment

Cognitive Biases

Mental shortcuts involving simplified ways of thinking

ExperiencingStrategic OB

Mount Everest Expeditions

George Mallory (R) and Andrew Irvine

• What role do “sunk costs” play in many decisions?

• Why would someone like Rob Hall ignore his pre-determined turnaround time?

• Have you experienced the “perils of sunk cost” in your work or personal lives? Give examples.

Rob Hall

Sir Edmund Hillary (L) and Tenzing Norgay

Group Decision MakingSome members may arrive with their own

expectations, problem definitions, and pre-determined solutions

Some members may have given more thought to the decision situation and what is to be accomplished

Focus of the team leader may be in developing a collaborative team rather than developing individual decision making skills

Decision-Making Process

Adapted from Exhibit 10-3: Group Decision-Making Phenomena – Pitfalls and Techniques

Risky Shift

Devil’s Advocacy

Brainstorming

Group Decision Making

Dialectical Inquiry

Delphi Technique

Nominal Group

Technique

Diversity-based

InfightingGroupthink

Common Information

Bias

Group Decision-Making Pitfalls

GroupthinkCommon

Information Bias

Diversity-Based

Infighting

RiskyShift

Brain- storming

NominalGroup

Technique

DelphiTechnique

DialecticalInquiry

Devil’sAdvocacy

Vroom-Yetton Method

Victor Vroom Philip Yetton

Requires managers to diagnose the problem situation and then determine the extent to which associates will be involved in the decision-making process. The involvement depends on the probable effect participation will have on:

• the expected quality of the decision

• the acceptance or commitment needed from associates to implement the solution

• the amount of time available (and needed) to make the decision.

Who Should Decide?

Adapted from Exhibit 10-4: Managerial Approaches to Associate Involvement in Decision Making

Low High

Level of Associate Involvement in Decision

AI Manager solves problem or makes decision aloneAII Manager requests information but not alternativesCI Manager explains problem individually but makes

decision aloneCII Manager explains problem to group, gets suggestions,

makes decision aloneGII Manager explains problem to group, facilitates problem

solving, implements decision supported by the group

AI AII CI CII GII

Vroom-Yetton Method

A. Is there a quality requirement such that one solution is likely to be more rational than another solution, or will any number of solutions work reasonably well?

B. Do I have sufficient information to make a high-quality decision?

C. Is the problem structured (do I know the question to ask and where to look for relevant information)?

D. Is acceptance of the decision by associates critical to effective implementation?

E. If I were to make the decision by myself, is it reasonably certain that it would be accepted by my associates?

F. Do the associates share the organizational goals to be attained in solving this problem?

G. Is conflict among associates likely in preferred solutions?

Questions asked to determine level of associate involvement in decision making

Adapted from Exhibit 10-5: Decision Tree Method

Vroom-Yetton Method

14-CII

10-AII

4-AI

1-AI 2-AI

3-GII

5-AI

9-AII

11-CII

13-CII

12_GII

6-GII7-CII

8-CI

No

Yes

No

No

No

No

NoNo

No

No

NoNo

NoNo

No

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Decision points

Recommended strategies

A B C D E F G

Pro

ble

m

Adapted from Exhibit 10-5: Decision Tree Method

ExperiencingStrategic OB

Vroom-Yetton Model and the Civil War

• What are your thoughts regarding the application of the Vroom-Yetton Model to the Civil War battles discussed in the text?

• How could you use this model to “fight” some of your “battles” in your life?

Value of Individual vs. Group Decision Making

Important considerations for judging the overall value of group decision vs. individual decision making include:

TimeTime CostCost

Nature of theNature of theProblemProblem

Satisfaction andSatisfaction andCommitmentCommitment

Personal GrowthPersonal Growth

Group Decision Making

Adapted from Exhibit 10-6: Advantages and Disadvantages of Group Decision Making

Can accumulate more knowledge and facts and generate better alternatives.

Often display superior judgment when evaluating alternatives.

Involvement in decisions leads to a higher level of acceptance and satisfaction.

Can result in growth for members of the group.

AdvantagesAdvantagesTake more time to reach decisions than do individuals.

Social interactions may lead to premature compromise.

Often dominated by one or two “decision leaders.”

Managers may rely too much on group decisions – lose their own skills.

DisadvantagesDisadvantages

The Strategic Lens1. You are a manager of a unit with 25 associates. You have just been

informed that you must lay off 20% of the associates in your unit. What process will you follow to make the decision and implement it?

2. If you made a decision that your manager told you was important for the organization and later you learned that you made an error in that decision, what actions would you take? Assume that others will not notice the error for some time.

3. You make decisions on a daily basis. Do you find it difficult to make decisions, especially those of importance? What can you do to improve your decision-making abilities?

9 Conflict and PowerConflict: The process in which one party

perceives that its interests are being opposed or negatively affected by another party

The Nature of ConflictThe Nature of Conflict

DysfunctionalDysfunctionalConflictConflict

ConflictConflict

FunctionalFunctionalConflictConflict

Types of ConflictTypes of ConflictDysfunctional conflict - Conflict that is

detrimental to organizational goals and objectives.

Functional conflict - Conflict that is beneficial to organizational goals and objectives.

Effects of ConflictEffects of Conflict

Adapted from Exhibit 12-1: Effects of Conflict

Effects onEffects onIndividualsIndividuals

Effects onEffects onBehaviorBehavior

Effects onEffects on Interpersonal InterpersonalRelationshipsRelationships

Effects on IndividualsEffects on Individuals

AngerHostilityFrustrationStressGuiltLow job satisfactionEmbarrassment

Effects on Behavior

Reduced motivation and productivityAvoidance of other partyEmotional ventingThreatsAggression (psychological or physical)QuittingAbsenteeismBiased perceptionsStereotyped thinkingIncreased commitment to one’s positionDemonizing others

Effects of Types of Conflict on Effects of Types of Conflict on Task PerformanceTask Performance

Adapted from Exhibit 12-2: The Effects of Different Types of Conflict on Task Performance

Degree of Conflict

Ta

sk P

erfo

rma

nc

e

High

LowLow High

Substantive Conflict

Personal Conflict

Procedural Conflict

Functional ConsequencesFunctional Consequences

Facilitation of Facilitation of ChangeChange

Improved Improved Problem Problem SolvingSolving

Enhanced Enhanced Morale and Morale and CohesionCohesion

Spontaneity in Spontaneity in CommunicationCommunication

Stimulation of Stimulation of CreativityCreativity

Potential Potential Benefits of Benefits of

ConflictConflict

Types of ConflictTypes of Conflict

SubstantiveSubstantiveConflictConflict

SubstantiveSubstantiveConflictConflict

ProceduralProceduralConflictConflict

ProceduralProceduralConflictConflict

PersonalPersonalConflictConflict

PersonalPersonalConflictConflict

Causes of ConflictCauses of Conflict

ConflictConflict

Structural Factors

Communication

Cognitive Factors

Individual Characteristics

History

Conflict OutcomesConflict Outcomes

Degree of Satisfaction of Party B’s Concern

Lose-WinLose-Win

Win-WinWin-WinD

eg

r ee

of

Sa t

isfa

c ti o

n

of

Pa r

t y A

’s C

on

ce

rn

Low High

High

Lose-LoseLose-Lose

Win-LoseWin-Lose

Adapted from Exhibit 12-3: Possible Conflict Outcomes

CompromiseCompromise

Cooperativeness

CompetingCompeting

AvoidingAvoiding AccommodatingAccommodating

CollaboratingCollaborating

CompromisingCompromising

Ass

erti

ven

ess

Low High

High

Responses to ConflictResponses to Conflict

NegotiationNegotiationA process by which parties with different preferences and interests attempt to agree on a solution.

Negotiation StrategiesNegotiation Strategies

DistributiveBargaining

IntegrativeBargaining

10 Organizational Change and Development

Polaroid introduced instant photography to the market. They were one of the top 50 companies in the U.S. But they, like many others, were slow to change.

What would you have done differently if you were a senior manager at Polaroid?

Can you think of any other companies that were too slow to change and suffered the consequences?

Why is change so difficult to manage?

Pressures for Change

Adapted from Exhibit 14-1: Internal and External Pressures for Organizational Change

IntroductionIntroduction or Removal of or Removal of Government Government RegulationsRegulations

Life-CycleLife-Cycle Forces Forces

Growing Growing International International

InterdependenceInterdependence

Changes in Changes in DemographicsDemographics

Shifting Shifting Political Political

DynamicsDynamics

Changes in Changes in Societal ValuesSocietal Values

Technological Technological AdvancesAdvances

AspirationsAspirations

Pressure for Pressure for ChangeChange

Aspiration-Performance DiscrepanciesGaps between what an individual, unit, or

organization wants to achieve and what it is actually achieving.

Three important factors in the role of aspirations Past aspirationsPast performanceComparison with others

Life-Cycle ForcesNatural and predictable pressures that build as an organization grows and that must be addressed if the organization is to continue to grow.

Integrative Life-Cycle Model

Adapted from Exhibit 14-2: Integrative Life-Cycle Model

EntrepreneurialStage

CollectivityStage

Formalization and Control Stage

ElaborationStage

Need for additional

people

Need for stability and structure

Need for balance

External Pressures for Change

Technological advances

Introduction and removal of government regulations

Changes in societal values

Shifting political dynamics

Changes in demographics

Growing international interdependence

ManagerialAdvice

Companies’ Responses to Pressures for “Green” Policies and Practices

Are companies becoming more “green” for reasons other than the “bottom-line”? Give some examples.

What is your organization doing to become more “green”? What are you doing personally?

Should becoming “green” be a choice or is legislation needed to make it happen?

Planned ChangeA process involving deliberate efforts to move an organization or a unit from its current undesirable state to a new, more desirable state

Awakening

Mobilizing

Reinforcing

Energizing

Envisioning

Enabling

Unfreezing

Moving

Refreezing

Process of Planned Change

Adapted from Exhibit 14-3: Process of Planned Change

Unfreezing RefreezingMoving

• Provide rationale for change

• Create minor levels of guilt/anxiety about not changing

• Create sense of psychological safety concerning change

• Provide information that suspects proposed changes

• Bring about actual shifts in behavior

• Implement new evaluation systems

• Create minor levels of guilt/anxiety about not changing

• Implement new hiring and promotion systems

Kurt Lewin

ExperiencingStrategic OB

Coca-Cola Is Finding a New Fizz

Neville Isdell Sandy Douglas

Coca-Cola is changing its culture, andalso adapting its product line to bettersatisfy the demand of customers.

What are your thoughts about the steps they are taking regarding these changes?

Do you think the new innovations and changes will have a positive or a negative impact on their existing brands? Why?

What other changes would you suggest to help them remain competitive?

Sources of Failure

1. Managers and associates should not expect all change activities to occur sequentially.

2. A team of change leaders, rather than a single individual, should guide an organization through a major change effort.

John Kotter

In addition to size, four factors to consider when forming change teams:

Position Power Informal Credibility

Expertise Proven Leadership

Speed of Change

Criteria toConsider

Urgency

Degree of support

Amount and complexity of change

Competitive environment

Knowledge and skills available

Financial and other resources

Style of Change

Participatory – change leaders seek the ideas and advice of associates and then use many of those ideas. Criteria for evaluating the degree to which the participatory style should be used:

Non-participatory – top down, leaders design the change and plan its implementation

UrgencyUrgencyUrgencyUrgencyDegree ofDegree ofSupportSupport

Degree ofDegree ofSupportSupport

Referent andReferent andExpert PowerExpert Power

of Leadersof Leaders

Referent andReferent andExpert PowerExpert Power

of Leadersof Leaders

Resistance to Change

Four Factors

Lack of Lack of understandingunderstanding

Different Different assessmentsassessments

Self-interestSelf-interest Low tolerance Low tolerance for changefor change

Effort to block new ways of doing things

ExperiencingStrategic OB

British Airways: The Yin and Yang of Organizational Change

Willie Walsh

Do you think there was any incentive for British Airways to change prior to deregulation?

Why do you think the changes were effective?

Given the problems faced by all the major airlines at the time, why do you think there was still so much resistance to the changes?

What other changes would you recommend at this time?

The DADA syndrome

Denial – ignore possible or current change

Anger – individuals facing unwanted change become angry about the change

Depression – individuals experience emotional lows

Acceptance – individuals embrace the reality of the situation and make the best of it

Organization Development (OD)

Roots in humanistic psychologyGrounded in values of individual empowerment

and interpersonal cooperationFully consistent with the high-involvement

management approach

A planned, organization-wide, continuous process designed to improve communication, problem solving, and learning through the application of behavioral science knowledge

Basic Organization Development Model

Adapted from Exhibit 14-4: Basic Organization Development Model

Diagnosis of Diagnosis of SituationSituation

Introduction of Introduction of interventionsinterventions

Progress Progress MonitoringMonitoring

FeedbackFeedback

Organization Development Interventions

OrganizationDevelopment

Structural TechniquesRelationship Techniques

T-group Training

Team Building

Survey Feedback

Job Redesign

Management by Objectives

Supplemental Organizational Processes

Adapted from Exhibit 14-5: Organization Development Interventions

Relationship Techniques

T-group TrainingT-group Training

Team BuildingTeam Building

Survey FeedbackSurvey Feedback

Team Building TipsGet the right people together for a large block of uninterrupted time to work on high-priority problems or opportunities that they have identified and have them work in ways that are structured to enhance the likelihood of realistic solutions and action plans, which are then implemented enthusiastically and followed up to assess actual versus expected results.

Structural Techniques

Job RedesignJob RedesignJob RedesignJob Redesign

Management by Management by Objectives (MBO)Objectives (MBO)Management by Management by Objectives (MBO)Objectives (MBO)

SupplementalSupplementalOrganizationalOrganizational

ProcessesProcesses

SupplementalSupplementalOrganizationalOrganizational

ProcessesProcesses

Organizational Learning

Exploitative Learning

ExploratoryLearning

Organization Development Across Cultures

EthnocentricAttitude andStereotyping

FlexibilityFlexibility

Knowledge ofKnowledge ofSpecific CulturesSpecific Cultures

InterpersonalInterpersonalSensitivitySensitivity

The Strategic Lens

1. Why do organizations need to make changes on a regular basis? What are the major causes of these changes?

2. Why is it so difficult for people to change their behavior, even when they know it is important to do so?

3. If you were in a managerial position and believed that a major change in your unit’s structure was needed, what actions would you take to ensure that the change was made effectively?