what is organizational behavior? 1-0 chapter learning objectives after studying this chapter you...

What Is Organizational Behavior?What Is Organizational Behavior?

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Chapter Learning ObjectivesChapter Learning Objectives

After studying this chapter you should be able to:– Demonstrate the importance of interpersonal skills in the

workplace.

– Describe the manager’s functions, roles, and skills.

– Define organizational behavior (OB).

– Show the value to OB of systematic study.

– Identify the major behavioral science disciplines that contribute to OB.

– Demonstrate why there are few absolutes in OB.

– Identify the challenges and opportunities managers have in applying OB concepts.

– Compare the three levels of analysis in this book’s OB model.

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The Importance of Interpersonal SkillsThe Importance of Interpersonal Skills

Understanding OB helps determine manager effectiveness– Technical and quantitative skills are important

– But leadership and communication skills are CRITICAL

Organizational benefits of skilled managers– Lower turnover of quality employees

– Higher quality applications for recruitment

– Better financial performance

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What Managers DoWhat Managers Do

They get things done through other people.

Management Activities:– Make decisions

– Allocate resources

– Direct activities of others to attain goals

Work in an organization– A consciously coordinated social unit composed of two or

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

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Management FunctionsManagement Functions

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Management Functions: PlanManagement Functions: Plan

A process that includes defining goals, establishing strategy, and developing plans to coordinate activities.

As managers advance, they do this function more often.

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Management Functions: OrganizeManagement Functions: Organize

Determining what tasks are to be done, who is to do them, how the tasks are to be grouped, who reports to whom, and where decisions are to be made.

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Management Functions: LeadManagement Functions: Lead

A function that includes motivating employees, directing others, selecting the most effective communication channels, and resolving conflicts.

It is about PEOPLE!

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Management Functions: ControlManagement Functions: Control

Monitoring performance, comparing actual performance with previously set goals, and correcting any deviation.

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Discovered ten managerial roles

Separated into three groups:

– Interpersonal

– Informational

– Decisional

Mintzberg’s Managerial RolesMintzberg’s Managerial Roles

E X H I B I T 1–1 E X H I B I T 1–1

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Mintzberg’s Managerial Roles: InterpersonalMintzberg’s Managerial Roles: Interpersonal

Source: Adapted from The Nature of Managerial Work by H. Mintzberg. Copyright © 1973 by H. Mintzberg. Reprinted by permission of Pearson Education.

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Mintzberg’s Managerial Roles: InformationalMintzberg’s Managerial Roles: Informational


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Mintzberg’s Managerial Roles: DecisionalMintzberg’s Managerial Roles: Decisional


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Katz’s Essential Management SkillsKatz’s Essential Management Skills

Technical Skills– The ability to apply specialized

knowledge or expertise

Human Skills– The ability to work with, understand,

and motivate other people, both individually and in groups

Conceptual Skills– The mental ability to analyze and

diagnose complex situations

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Luthans’ Study of Managerial ActivitiesLuthans’ Study of Managerial Activities

Is there a difference in frequency of managerial activity between effective and successful managers?

Four types of managerial activity:– Traditional Management

• Decision-making, planning, and controlling.

– Communication• Exchanging routine information and processing paperwork

– Human Resource Management• Motivating, disciplining, managing conflict, staffing and

training.

– Networking• Socializing, politicking, and interacting with others.

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Successful vs. Effective Allocation by TimeSuccessful vs. Effective Allocation by Time

E X H I B I T 1–2 E X H I B I T 1–2

Managers who promoted faster (were successful) did different things than did effective managers (those who did their jobs well)

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Organizational BehaviorOrganizational Behavior

A field of study that investigates the impact that individuals, groups, and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness.

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Intuition and Systematic StudyIntuition and Systematic Study

The two are complementary means of predicting behavior.1-18

An Outgrowth of Systematic Study…An Outgrowth of Systematic Study…

Evidence-Based Management (EBM)

Basing managerial decisions on the best available scientific evidence

Must think like scientists:

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Managers Should Use All Three ApproachesManagers Should Use All Three Approaches

The trick is to know when to go with your gut.

– Jack Welsh

Intuition is often based on inaccurate information Faddism is prevalent in management Systematic study can be time-consuming

Use evidence as much as possible to inform your intuition and experience. That is the promise of OB.

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Contributing Disciplines Contributing Disciplines

See E X H I B I T 1–3 for detailsSee E X H I B I T 1–3 for details

Many behavioral sciences have contributed to the development ofOrganizationalBehavior

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PsychologyPsychology

The science that seeks to measure, explain, and sometimes change the behavior of humans and other animals.

Unit of Analysis:– Individual

Contributions to OB:– Learning, motivation, personality, emotions, perception

– Training, leadership effectiveness, job satisfaction

– Individual decision making, performance appraisal attitude measurement

– Employee selection, work design, and work stress

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Social PsychologySocial Psychology

An area within psychology that blends concepts from psychology and sociology and that focuses on the influence of people on one another.

Unit of Analysis:– Group

Contributions to OB:– Behavioral change

– Attitude change

– Communication

– Group processes

– Group decision making

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SociologySociology

Unit of Analysis:-- Organizational System

Contributions to OB:– Group dynamics

– Work teams

– Communication

– Power

– Conflict

– Intergroup behavior

-- Group

– Formal organization theory

– Organizational technology

– Organizational change

– Organizational culture

The study of people in relation to their fellow human beings.

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AnthropologyAnthropology

Unit of Analysis:-- Organizational System

Contributions to OB:– Organizational culture

– Organizational environment

-- Group

– Comparative values

– Comparative attitudes

– Cross-cultural analysis

The study of societies to learn about human beings and their activities.

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Few Absolutes in OBFew Absolutes in OB

Situational factors that make the main relationship between two variables change—e.g., the relationship may hold for one condition but not another.

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Challenges and Opportunities for OBChallenges and Opportunities for OB

Responding to Globalization Managing Workforce Diversity Improving Quality and Productivity Improving Customer Service Improving People Skills Stimulating Innovation and Change Coping with “Temporariness” Working in Networked Organizations Helping Employees Balance Work-Life Conflicts Creating a Positive Work Environment Improving Ethical Behavior

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Responding to GlobalizationResponding to Globalization

Increased foreign assignments

Working with people from different cultures

Coping with anti-capitalism backlash

Overseeing movement of jobs to countries with low-cost labor

Managing people during the war on terror

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Managing Workforce Diversity Managing Workforce Diversity

The people in organizations are becoming more heterogeneous demographically– Embracing diversity

– Changing U.S. demographics

– Changing management philosophy

– Recognizing and responding to differences

See E X H I B I T 1–4See E X H I B I T 1–4

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Developing an OB ModelDeveloping an OB Model

A model is an abstraction of reality: a simplified representation of some real-world phenomenon.

Our OB model has three levels of analysis– Each level is constructed on the prior level

E X H I B I T 1–5E X H I B I T 1–5

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Types of Study VariablesTypes of Study Variables

Independent (X)– The presumed cause of the

change in the dependent variable (Y).

– This is the variable that OB researchers manipulate to observe the changes in Y.

Dependent (Y)– This is the response to X (the

independent variable).

– It is what the OB researchers want to predict or explain.

– The interesting variable!

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Interesting OB Dependent VariablesInteresting OB Dependent Variables

Productivity– Transforming inputs to outputs at lowest cost. Includes the

concepts of effectiveness (achievement of goals) and efficiency (meeting goals at a low cost).

Absenteeism– Failure to report to work – a huge cost to employers.

Turnover– Voluntary and involuntary permanent withdrawal from an

organization.

Deviant Workplace Behavior– Voluntary behavior that violates significant organizational

norms and thereby threatens the well-being of the organization and/or any of its members.

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More Interesting OB Dependent VariablesMore Interesting OB Dependent Variables

Organizational Citizenship Behavior (OCB)– Discretionary behavior that is not part of an employee’s

formal job requirements, but that nevertheless promotes the effective functioning of the organization.

Job Satisfaction– A general attitude (not a behavior) toward one’s job; a

positive feeling of one's job resulting from an evaluation of its characteristics.

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The Independent VariablesThe Independent Variables

The independent variable (X) can be at any of these three levels in this model:Individual– Biographical characteristics, personality and emotions,

values and attitudes, ability, perception, motivation, individual learning and individual decision making.

Group– Communication, group decision making, leadership and

trust, group structure, conflict, power and politics, and work teams.

Organization System– Organizational culture, human resource policies and

practices, and organizational structure and design.

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OB ModelOB Model

E X H I B I T 1–6E X H I B I T 1–6

Independent Variables (X)

Dependent Variables (Y)

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Summary and Managerial ImplicationsSummary and Managerial Implications

Managers need to develop their interpersonal skills to be effective.

OB focuses on how to improve factors that make organizations more effective.

The best predictions of behavior are made from a combination of systematic study and intuition.

Situational variables moderate cause-and-effect relationships – which is why OB theories are contingent.

There are many OB challenges and opportunities for managers today.

The textbook is based on the contingent OB model.

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Emotions and MoodsEmotions and Moods

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Chapter Learning ObjectivesChapter Learning Objectives After studying this chapter, you should be able to:

– Differentiate emotions from moods, and list the basic emotions and moods.

– Discuss whether emotions are rational and what functions they serve.

– Identify the sources of emotions and moods.

– Show the impact emotional labor has on employees.

– Describe Affective Events Theory and identify its applications.

– Contrast the evidence for and against the existence of emotional intelligence.

– Apply concepts about emotions and moods to specific OB issues.

– Contrast the experience, interpretation, and expression of emotions across cultures.

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Why Were Emotions Ignored in OB?Why Were Emotions Ignored in OB?

The “Myth of Rationality”– Emotions were seen as irrational

– Managers worked to make emotion-free environments

View of Emotionality– Emotions were believed to be disruptive

– Emotions interfered with productivity

– Only negative emotions were observed

Now we know emotions can’t be separated from the workplace

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What are Emotions and Moods?What are Emotions and Moods?

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See E X H I B I T 8-1See E X H I B I T 8-1

The Basic EmotionsThe Basic Emotions

While not universally accepted, there appear to be six basic emotions:1. Anger

2. Fear

3. Sadness

4. Happiness

5. Disgust

6. Surprise

All other emotions are subsumed under these six May even be placed in a spectrum of emotion:

– Happiness – surprise – fear – sadness – anger - disgust

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Basic Moods: Positive and Negative AffectBasic Moods: Positive and Negative Affect

Emotions cannot be neutral. Emotions (“markers”) are grouped into general mood

states. Mood states affect perception and therefore perceived

reality.

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E X H I B I T 8-2 E X H I B I T 8-2

What Is the Function of Emotion?What Is the Function of Emotion?

Do Emotions Make Us Irrational?– Expressing emotions publicly may be damaging to social

status

– Emotions are critical to rational decision-making

– Emotions help us understand the world around us

What Functions Do Emotions Serve?– Darwin argued they help in survival problem-solving

– Evolutionary psychology: people must experience emotions as there is a purpose behind them

– Not all researchers agree with this assessment

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Sources of Emotion and MoodSources of Emotion and Mood Personality

– There is a trait component – affect intensity Day and Time of the Week

– There is a common pattern for all of us• Happier in the midpoint of the daily awake period • Happier toward the end of the week

Weather– Illusory correlation – no effect

Stress– Even low levels of constant stress can worsen moods

Social Activities– Physical, informal, and dining activities increase positive moods

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See E X H I B I T 8-3 and 8-4 for Emotion Timing See E X H I B I T 8-3 and 8-4 for Emotion Timing

More Sources of Emotion and MoodMore Sources of Emotion and Mood

Sleep – Poor sleep quality increases negative affect

Exercise– Does somewhat improve mood, especially for depressed

people

Age– Older folks experience fewer negative emotions

Gender– Women tend to be more emotionally expressive, feel

emotions more intensely, have longer-lasting moods, and express emotions more frequently than do men

– Due more to socialization than to biology

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Emotional LaborEmotional Labor

An employee’s expression of organizationally desired emotions during interpersonal transactions at work.Emotional Dissonance:

– Employees have to project one emotion while simultaneously feeling another

– Can be very damaging and lead to burnoutTypes of Emotions:

– Felt: the individual’s actual emotions– Displayed: required or appropriate emotions

• Surface Acting: displaying appropriately but not feeling those emotions internally

• Deep Acting: changing internal feelings to match display rules - very stressful

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See E X H I B I T 8-5 for Emotional Labor and Pay See E X H I B I T 8-5 for Emotional Labor and Pay

Affective Events Theory (AET)Affective Events Theory (AET) An event in the work environment triggers positive or

negative emotional reactions– Personality and mood determine response intensity

– Emotions can influence a broad range of work variables

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Implications of AET Implications of AET 1. An emotional episode is actually the result of a series of

emotional experiences triggered by a single event

2. Current and past emotions affect job satisfaction

3. Emotional fluctuations over time create variations in job performance

4. Emotion-driven behaviors are typically brief and variable

5. Both negative and positive emotions can distract workers and reduce job performance

Emotions provide valuable insights about behavior Emotions, and the minor events that cause them, should

not be ignored at work: they accumulate

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Emotional Intelligence (EI)Emotional Intelligence (EI)

A person’s ability to:– Be self-aware

• Recognizing own emotions when experienced

– Detect emotions in others

– Manage emotional cues and information

EI plays an important role in job performance EI is controversial and not wholly accepted

– Case for EI:• Intuitive appeal; predicts criteria that matter; is biologically-

based.

– Case against EI:• Too vague a concept; can’t be measured; its validity is suspect.

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OB Applications of Emotions and MoodsOB Applications of Emotions and Moods Selection

– EI should be a hiring factor, especially for social jobs. Decision Making

– Positive emotions can lead to better decisions. Creativity

– Positive mood increases flexibility, openness, and creativity. Motivation

– Positive mood affects expectations of success; feedback amplifies this effect.

Leadership– Emotions are important to acceptance of messages from

organizational leaders.

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More OB Applications of Emotions and MoodsMore OB Applications of Emotions and Moods

Negotiation – Emotions, skillfully displayed, can affect negotiations

Customer Services– Emotions affect service quality delivered to customers

which, in turn, affects customer relationships– Emotional Contagion: “catching” emotions from others

Job Attitudes– Can carry over to home, but dissipate overnight

Deviant Workplace Behaviors– Negative emotions lead to employee deviance (actions that

violate norms and threaten the organization) Manager’s Influence

– Leaders who are in a good mood, use humor, and praise employees increase positive moods in the workplace.

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Global ImplicationsGlobal Implications

Do people experience emotions equally?– No. Culture can determine type, frequency, and depth of

experienced emotions

Do people interpret emotions the same way?– Yes. Negative emotions are seen as undesirable and positive

emotions are desirable

– However, value of each emotion varies across cultures

Do norms of emotional expression vary?– Yes. Some cultures have a bias against emotional

expression; others demand some display of emotion

– How the emotions are expressed may make interpretation outside of one’s culture difficult

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Moods are more general than emotions and less contextual

Emotions and moods impact all areas of OB Managers cannot and should not attempt to completely

control the emotions of their employees Managers must not ignore the emotions of their co-

workers and employees Behavior predictions will be less accurate if emotions

are not taken into account

Emotional IntelligenceEmotional Intelligence

It is the ability to monitor one’s own and others’ feelings and emotions, to discriminate among them and to use this information to guide one’s thinking and actions.

WHAT IS EMOTIONAL INTELLIGENCE?WHAT IS EMOTIONAL INTELLIGENCE?

FOUNDATION OF EMOTIONAL INTELLIGENCEFOUNDATION OF EMOTIONAL INTELLIGENCE

Self AwarenessSelf Awareness Emotional Self-

Awareness Self-Regard Reality Testing

Coping SkillsCoping Skills Impulse Control Stress Tolerance Problem Solving Flexibility Optimism

Effective RelationshipsEffective Relationships Interpersonal

Relationships Independence

Interpersonal SkillsInterpersonal Skills Empathy Social Responsibility Assertiveness

Personal & Interpersonal Personal & Interpersonal EffectivenessEffectiveness Self-Actualization Happiness

plus

is related to

which predicts

and results in

Increasing Emotional Intelligence makes individuals more efficient, productive and successful.

The workforce is using Emotional Intelligence all over the place

WHY STUDY EMOTIONAL INTELLIGENCE?WHY STUDY EMOTIONAL INTELLIGENCE?

Organizations can become more productive by recruiting/hiring emotionally smart people and by offering opportunities to enhance these skills through involvement

Emotional Intelligence can be a way to help maximize the potential of your members and in turn your organization

WHY STUDY EMOTIONAL INTELLIGENCE Contd…WHY STUDY EMOTIONAL INTELLIGENCE Contd…

Possessing skills related to Emotional Intelligence can help you be prepared to lead others Having the skills to lead are vital in managing complex

organizations

Every day we will interact with others who possess varying degrees of Emotional Intelligence Being able to work with challenging people is a necessity for the

workplace and organization involvement


You can assess the overall potential for your organization

Emotional Intelligence influences organizational culture as individuals know their abilities to interface with others .

Organizations with high levels of Emotional Intelligence may be more apt to succeed.


Emotional Intelligence is the ability to control and

use one’s emotions in a constructive-rather than

destructive manner.

Emotional Intelligence allows an individual

achieve his/her best performance, while inspiring

others.

EMOTIONAL INTELIGENCE:THE NEW SCIENCE OF SUCCESS EMOTIONAL INTELIGENCE:THE NEW SCIENCE OF SUCCESS

Emotional Intelligence is a composite of many other

qualities, such as effective oral communication and

ability to respond well to set backs.

The Four domains of Emotional Intelligence;

SELF-AWARENESS, SELF-MANAGEMENT,

SOCIAL AWARENESS and RELATIONSHIP

MANAGEMENT.

EMOTIONAL INTELIGENCE:THE NEW SCIENCE OF SUCCESS Contd…

EMOTIONAL INTELIGENCE:THE NEW SCIENCE OF SUCCESS Contd…

FOUR AREAS OF EMOTIONAL INTELLIGENCEFOUR AREAS OF EMOTIONAL INTELLIGENCE

Self Others

Aw

aren

ess

Act

ion

sSelf

AwarenessSocial

Awareness

SelfManagement

RelationshipManagement

Positive impacton others

SELF-AWARENESS The ability to read one’s own emotions and recognize their

impact.

Self-awareness and self management are related to one’s own personal competence.

The Three (3) core dimensions are an EMOTIONAL SELF-AWARENESS, ACCURATE SELF ASSESSMENT and SELF CONFIDENCE.

EMOTIONAL INTELLIGENCEEMOTIONAL INTELLIGENCE

Emotional Self-Awareness•Aware of one’s own feelings•Aware of triggers•Understands implications of emotions•Has emotional insight

SELF-AWARENESSSELF-AWARENESS

SELF ASSESEMENT SELF ASSESEMENT

Accurate Self-Assessment•Aware of strengths and limitations•Open to feedback•Has a sense of humor about oneself•Solicits honest critiques

SELF CONFIDENCESELF CONFIDENCE

Self Confidence• Is confident in job capability•Believes in oneself• Is self-assured•Has presence

EMOTIONAL INTELLIGENCE: SELF MANAGEMENT EMOTIONAL INTELLIGENCE: SELF MANAGEMENT

Consists of Six (6) core dimensions: EMOTIONAL SELF-CONTROL TRANSPARENCY ADAPTABILITY ACHIEVEMENT INITIATIVE OPTIMISM

Emotional Self control–Shows restraint–Has patience–Responds calmly–Stays composed/positive


Transparency–Keeps promises–Brings up ethical concerns–Publicly admits to mistakes–Acts on values


Adaptability– Open to new ideas– Adapts to situations– Handles unexpected demands– Adapts or changes strategy


Achievement–Improves performance–Sets challenging goals–Anticipates obstacles–Takes calculated risks


Initiative–Addresses current

opportunities–Seeks information–Makes extra efforts–Initiates actions for the future


Optimism–Has positive expectations–Is optimistic about the future–Is resilient–Learns from setbacks


Social Awareness and relationship management have to do with ones competence in the social arena.

Consists of the following three (3) key components:

EmpathyOrganizational AwarenessService Orientation.

EMOTIONAL INTELLIGENCE: SOCIAL AWARENESS EMOTIONAL INTELLIGENCE: SOCIAL AWARENESS

EMOTIONAL INTELLIGENCE: SOCIAL AWARENESS COMPETENCESEMOTIONAL INTELLIGENCE: SOCIAL AWARENESS COMPETENCES

EmpathyListensReads nonverbal cuesOpen to diversitySees others’ perspectives

EMOTIONAL INTELLIGENCE: SOCIAL AWARENESS COMPETENCESEMOTIONAL INTELLIGENCE: SOCIAL AWARENESS COMPETENCES

Organizational AwarenessUnderstands informal structuresUnderstands climate and cultureUnderstands organizational

politicsUnderstands underlying issues

EMOTIONAL INTELLIGENCE: SOCIAL AWARENESS COMPETENCIESEMOTIONAL INTELLIGENCE: SOCIAL AWARENESS COMPETENCIES

Service orientationMakes self availableMonitors satisfactionTakes personal responsibilityMatches customer needs

Social Awareness and Relationship

Management have to do with ones competency in the Social arena.

It Consists of Six core (6) areas

EMOTIONAL INTELLIGENCE: RELATIONSHIP MANAGEMENTEMOTIONAL INTELLIGENCE: RELATIONSHIP MANAGEMENT

SIX CORE AREASINSPIRATIONAL LEADERSHIP INFLUENCE. DEVELOPING OTHERS . CHANGE CATALYST . CONFLICT MANAGEMENT. TEAMWORK and COLLABORATION.


LEADING OTHERS:INSPIRATIONAL LEADERSHIP INFLUENCEDEVELOPING OTHERS

WORKING WITH OTHERS:CHANGE CATALYST CONFLICT MANAGEMENTTEAMWORK and COLLABORATION



Inspirational leadershipLeads by exampleStimulates enthusiasmInspires othersCommunicates a compelling vision


Influence•Engages others•Anticipates impact of actions/words•Uses indirect influence•Develops behind the scenes support


Developing othersRecognizes strengthsProvides supportGives constructive feedback

Acts as a mentor


Change catalystDefines general need for change

Acts to support changePersonally leads changeChampions change


Conflict management•Airs disagreements•Maintains objectivity•Addresses conflict•Orchestrates win-win solutions


Teamwork & collaborationCooperatesSolicits inputEncourages othersBuilds bonds

GOOD NEWS!GOOD NEWS!• You can develop Emotional

Intelligence! – “Rewire” your responses to feelings.– Change how you think about this.– Alter your behavior.

EmotionsEmotions EmotionsEmotions ThoughtsThoughts ThoughtsThoughts BehaviorBehavior BehaviorBehavior PerformancePerformance

IMPROVING YOUR EMOTIONAL INTELLIGENCEIMPROVING YOUR EMOTIONAL INTELLIGENCE

PrepackagedSeminars

Minimalresults

In-houseTraining

Some behavioral results

IndividualDevelopment

Sustained individual performance improvement

Integrated Initiatives with Coaching and Measurement

Critical mass for sustained group performance improvement

Organizational Interventions

Sustained organizational improvement

• Improving and sustaining Emotional Intelligence takes Improving and sustaining Emotional Intelligence takes a concerted effort over several months.a concerted effort over several months.

Motivation ConceptsMotivation Concepts

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Chapter Learning ObjectivesChapter Learning Objectives After studying this chapter, you should be able to:

– Describe the three elements of motivation.– Identify four early theories of motivation and evaluate their

applicability today.– Apply the predictions of Cognitive Evaluation theory to intrinsic

and extrinsic rewards.– Compare and contrast goal-setting theory and Management by

Objectives.– Contrast reinforcement theory and goal-setting theory.– Demonstrate how organizational justice is a refinement of equity

theory.– Apply the key tenets of expectancy theory to motivating

employees.– Compare contemporary theories of motivation.– Explain to what degree motivation theories are culture-bound.

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Defining MotivationDefining Motivation

The result of the interaction between the individual and the situation.

The processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal – specifically, an organizational goal.

Three key elements:– Intensity – how hard a person tries

– Direction – effort that is channeled toward, and consistent with, organizational goals

– Persistence – how long a person can maintain effort

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Early Theories of MotivationEarly Theories of Motivation

These early theories may not be valid, but they do form the basis for contemporary theories and are still used by practicing managers.

Maslow’s Hierarchy of Needs Theory – Alderfer’s ERG (Existence, Relatedness, and Growth)

McGregor’s Theory X and Theory YHerzberg’s Two-Factor TheoryMcClelland’s Theory of Needs

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Maslow’s Hierarchy of NeedsMaslow’s Hierarchy of Needs

There is a hierarchy of five needs. As each need is substantially satisfied, the next need becomes dominant.

Assumptions– Individuals cannot

move to the next higher level until all needs at the current (lower) level are satisfied

– Must move in hierarchical order

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Lower OrderExternal

Higher OrderInternal


Alderfer’s ERG TheoryAlderfer’s ERG Theory

A reworking of Maslow to fit empirical research.

Three groups of core needs:– Existence (Maslow: physiological and safety)

– Relatedness (Maslow: social and status)

– Growth (Maslow: esteem and self-actualization)

Removed the hierarchical assumption– Can be motivated by all three at once

Popular, but not accurate, theory

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McGregor’s Theory X and Theory YMcGregor’s Theory X and Theory Y

Two distinct views of human beings: Theory X (basically negative) and Theory Y (positive).– Managers used a set of assumptions based on their view

– The assumptions molded their behavior toward employees

No empirical evidence to support this theory.

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Herzberg’s Two-Factor TheoryHerzberg’s Two-Factor Theory

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See E X H I B I T S 6-2 and 6-3See E X H I B I T S 6-2 and 6-3

Key Point: Satisfaction and dissatisfaction are not opposites but separate constructs

Extrinsic and Related to

Dissatisfaction

Intrinsic and Related to Satisfaction

Criticisms of Two-Factor TheoryCriticisms of Two-Factor TheoryHerzberg says that hygiene factors must be met to remove dissatisfaction. If motivators are given, then satisfaction can occur.

Herzberg is limited by his procedure – Participants had self-serving bias

Reliability of raters questioned – Bias or errors of observation

No overall measure of satisfaction was usedHerzberg assumed, but didn’t research, a strong relationship between satisfaction and productivity

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McClelland’s Three Needs TheoryMcClelland’s Three Needs Theory

Need for Achievement (nAch)– The drive to excel, to achieve in relation to a set of

standards, to strive to succeed

Need for Power (nPow)– The need to make others behave in a way that they would

not have behaved otherwise

Need for Affiliation (nAff)– The desire for friendly and close interpersonal relationships

People have varying levels of each of the three needs.– Hard to measure

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Performance Predictions for High nAchPerformance Predictions for High nAch

People with a high need for achievement are likely to:– Prefer to undertake activities with a 50/50 chance of success,

avoiding very low- or high-risk situations

– Be motivated in jobs that offer high degree of personal responsibility, feedback, and moderate risk

– Not necessarily make good managers – too personal a focus. Most good general managers do NOT have a high nAch

– Need high level of nPow and low nAff for managerial success

Good research support, but it is not a very practical theory

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Cognitive Evaluation Theory Goal-Setting Theory

– Management by Objectives (MBO)

Self-Efficacy Theory– Also known as Social Cognitive Theory or Social Learning

Theory

Reinforcement Theory Equity Theory Expectancy Theory

Contemporary Theories of MotivationContemporary Theories of Motivation

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Cognitive Evaluation TheoryCognitive Evaluation TheoryProviding an extrinsic reward for behavior that had been previously only intrinsically rewarding tends to decrease the overall level of motivation

Major Implications for work rewards

– Intrinsic and extrinsic rewards are not independent

– Extrinsic rewards decrease intrinsic rewards

– Pay should be noncontingent on performance

– Verbal rewards increase intrinsic motivation; tangible rewards reduce it

Self-concordance

– When the personal reasons for pursuing goals are consistent with personal interests and core values (intrinsic motivation), people are happier and more successful

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Locke’s Goal-Setting TheoryLocke’s Goal-Setting Theory

Basic Premise: – That specific and difficult goals, with self-generated

feedback, lead to higher performance Difficult Goals:

– Focus and direct attention– Energize the person to work harder– Difficulty increases persistence– Force people to be more effective and efficient

Relationship between goals and performance depends on: – Goal commitment (the more public the better!)– Task characteristics (simple, well-learned)– Culture (best match is in North America)

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MBO is a systematic way to utilize goal-setting. Goals must be:

– Tangible– Verifiable– Measurable

Corporate goals are broken down into smaller, more specific goals at each level of organization.

Four common ingredients to MBO programs:– Goal specificity– Participative decision making– Explicit time period– Performance feedback

Implementation: Management by ObjectivesImplementation: Management by Objectives

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Bandura’s Self-Efficacy TheoryBandura’s Self-Efficacy Theory

An individual’s belief that he or she is capable of performing a task. – Higher efficacy is related to:

• Greater confidence

• Greater persistence in the face of difficulties

• Better response to negative feedback (work harder)

– Self-Efficacy complements Goal-Setting Theory.

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Given Hard Goal

Higher Self-Set Goal

Increased Confidence

Higher Performance

Increasing Self-EfficacyIncreasing Self-Efficacy Enactive mastery

– Most important source of efficacy– Gaining relevant experience with task or job– “Practice makes perfect”

Vicarious modeling– Increasing confidence by watching others perform the task– Most effective when observer sees the model to be similar to him-

or herself Verbal persuasion

– Motivation through verbal conviction– Pygmalion and Galatea effects - self-fulfilling prophecies

Arousal– Getting “psyched up” – emotionally aroused – to complete task– Can hurt performance if emotion is not a component of the task

4-106

Similar to Goal-Setting Theory, but focused on a behavioral approach rather than a cognitive one.

– Behavior is environmentally caused

– Thought (internal cogitative event) is not important• Feelings, attitudes, and expectations are ignored

– Behavior is controlled by its consequences – reinforcers

– Is not a motivational theory but a means of analysis of behavior

– Reinforcement strongly influences behavior but is not likely to be the sole cause

Reinforcement TheoryReinforcement Theory

4-107

Adams’ Equity TheoryAdams’ Equity Theory

Employees compare their ratios of outcomes-to-inputs of relevant others.– When ratios are equal: state of equity exists – there is no

tension as the situation is considered fair

– When ratios are unequal: tension exists due to unfairness• Underrewarded states cause anger

• Overrewarded states cause guilt

– Tension motivates people to act to bring their situation into equity

4-108


Can be four different situations:

– Self-Inside• The person’s experience in a different job in the same

organization

– Self-Outside• The person’s experience in a different job in a different

organization

– Other-Inside• Another individual or group within the organization

– Other-Outside• Another individual or group outside of the organization

Equity Theory’s “Relevant Others”Equity Theory’s “Relevant Others”

4-109

Reactions to InequityReactions to Inequity Employee behaviors to create equity:

– Change inputs (slack off)– Change outcomes (increase output)– Distort/change perceptions of self– Distort/change perceptions of others– Choose a different referent person– Leave the field (quit the job)

Propositions relating to inequitable pay:– Paid by time:

• Overrewarded employees produce more • Underrewarded employees produce less with low quality

– Paid by quality: • Overrewarded employees give higher quality• Underrewarded employees make more of low quality

4-110

Justice and Equity TheoryJustice and Equity Theory

4-111


Overall perception of what is fair in the workplace.

Vroom’s Expectancy TheoryVroom’s Expectancy Theory

The strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of the outcome to the individual.

4-112


Expectancy of performance

success

Instrumentality of success in

getting reward

Valuation of the reward in

employee’s eyes

Integrating Contemporary Motivation TheoriesIntegrating Contemporary Motivation Theories

Based on Expectancy Theory

4-113



Motivation theories are often culture-bound.– Maslow’s Hierarchy of Needs Theory

• Order of needs is not universal

– McClelland’s Three Needs Theory• nAch presupposes a willingness to accept risk and performance

concerns – not universal traits

– Adams’ Equity Theory• A desire for equity is not universal

• “Each according to his need” – socialist/former communists

Desire for interesting work seems to be universal.– There is some evidence that the intrinsic factors of

Herzberg’s Two-Factor Theory may be universal

4-114


Need Theories (Maslow, Alderfer, McClelland, Herzberg)– Well known, but not very good predictors of behavior

Goal-Setting Theory– While limited in scope, good predictor

Reinforcement Theory– Powerful predictor in many work areas

Equity Theory– Best known for research in organizational justice

Expectancy Theory– Good predictor of performance variables but shares many of

the assumptions as rational decision making

4-115

Motivation: From Concepts to Applications

Motivation: From Concepts to Applications


After studying this chapter, you should be able to:– Describe the Job Characteristics Model and evaluate the way

it motivates by changing the work environment.

– Compare and contrast the three main ways jobs can be redesigned.

– Identify three alternative work arrangements and show how they might motive employees.

– Give examples of employee involvement measures and show how they can motivate employees.

– Demonstrate how the different types of variable-pay programs can increase employee motivation.

– Show how flexible benefits turn benefits into motivators.

– Identify the motivational benefits of intrinsic rewards.

Motivation by Job Design: The JCMMotivation by Job Design: The JCM Job Characteristics Model (JCM)

– Hackman and Oldham’s concept that any job can be described through five core job dimensions:

• Skill variety – Requirements for different tasks in the job.

• Task identity – Completion of a whole piece of work.

• Task significance – The job’s impact on others.

• Autonomy – Level of discretion in decision making.

• Feedback – Amount of direct and clear information on performance.

– The way elements in a job are organized (job design) impacts motivation, satisfaction, and performance.

The Job Characteristics ModelThe Job Characteristics Model

E X H I B I T 7-1E X H I B I T 7-1

Source: J.R. Hackman and G.R. Oldham, Work Design (excerpted from pp. 78–80). © 1980 by Addison-Wesley Publishing Co., Inc. Reprinted by permission of Addison-Wesley Longman, Inc.

Employee growth-need strength moderates the relationships.

Motivating Potential Score (MPS)Motivating Potential Score (MPS) Five dimensions combined into a single predictive

index of motivation.– People who work on jobs with high core dimensions are

generally more motivated, satisfied, and productive.– Job dimensions operate through the psychological states in

influencing personal and work outcome variables rather than influencing them directly.

While the JCM framework is supported by research, the MPS model isn’t practical and doesn’t work well.

How Can Jobs Be Redesigned?How Can Jobs Be Redesigned?

Job Rotation– The periodic shifting of

a worker from one task to another

Job Enlargement– The horizontal

expansion of jobs

Job Enrichment– The vertical expansion

of jobs

Guidelines for Enriching a JobGuidelines for Enriching a Job


Source: J.R. Hackman and J.L. Suttle, eds., Improving Life at Work (Glenview, IL: Scott Foresman, 1977), p. 138.

Alternative Work ArrangementsAlternative Work Arrangements

Flextime– Employees work during a common core time period each

day but have discretion in forming their total workday from a flexible set of hours outside the core.

Job Sharing– The practice of having two or more people split a 40-hour-a-

week job


Another Alternative: TelecommutingAnother Alternative: Telecommuting

Telecommuting– Employees do their work at home at least two days a week

on a computer that is linked to their office.

The Virtual Office– Employees work out of their home on a relatively

permanent basis.

Typical Telecommuting Jobs– Professional and other knowledge-related tasks

– Routine information-handling tasks

– Mobile activities

Reasons for and against Telecommuting Reasons for and against Telecommuting

Advantages– Larger labor pool

– Higher productivity

– Less turnover

– Improved morale

– Reduced office-space costs

Disadvantages Employer

– Less direct supervision of employees

– Difficult to coordinate teamwork

– Difficult to evaluate non-quantitative performance

Employee

– May not be as noticed for his or her efforts

Motivation Is Not the Whole StoryMotivation Is Not the Whole Story

P = f(A x M x O)

Employee InvolvementEmployee Involvement

A participative process that uses the input of employees to increase their commitment to the organization’s success.

By increasing worker autonomy and control over work lives (involvement), organizations:– Increase employee motivation

– Gain greater organizational commitment

– Experience greater worker productivity

– Observe higher levels of job satisfaction

Types of Employee Involvement ProgramsTypes of Employee Involvement Programs Participative Management

– Subordinates share a significant degree of decision-making power with their immediate superiors

Representative Participation– Works councils

• Groups of nominated or elected employees who must be consulted for any personnel decisions

– Board representative• An employee sits on a company’s board of directors and

represents the interests of the firm’s employees Quality Circle

– A work group of employees who meet regularly to discuss their quality problems, investigate causes, recommend solutions, and take corrective actions

Motivational Theory Links to EI ProgramsMotivational Theory Links to EI Programs

Four Major Strategic Reward Decisions Four Major Strategic Reward Decisions

1. What to pay? (pay structure)

2. How to pay individuals? (variable pay plans and skill-based pay plans)

3. What benefits to offer? Do we offer choice of benefits? (flexible benefits)

4. How to build recognition programs?

1. What to Pay – Pay Structure1. What to Pay – Pay Structure

Internal equity– The worth of the job to the organization

– Determined by job evaluations

External equity– The competitiveness of the company’s pay relative to pay

elsewhere in the industry

– Determined through pay surveys

Choose organizational position– Pay leaders

• Greater employee loyalty

• Attracts better-quality employees

– Pay laggards – accept high turnover for low hourly costs

2. How to Pay - Variable Pay Programs2. How to Pay - Variable Pay Programs Types of Variable Pay Programs

A portion of an employee’s pay is based on some individual and/or organizational measure of performance–Piece Rate:

• Workers are paid a fixed sum for each unit of production completed

• Weakness: not feasible for many jobs

–Merit-Based: • Based on performance appraisal ratings• Gap increasing between average and top-performers• Weaknesses: validity of system based on annual appraisals,

pay pool can be small, unions strongly resist

–Bonuses:• Rewards recent performance• Weakness: employees consider this a pay

2. How to Pay - Skill-Based Pay Programs2. How to Pay - Skill-Based Pay Programs Types of Skill-Based Programs:

Also known as competency- or knowledge-based pay - sets pay based on skills or number of jobs an employee can perform–Profit Sharing:

• Organization-wide programs that distribute compensation based on some established formula designed around a company’s profitability

–Gain Sharing:• An incentive plan in which improvements in group

productivity determine the total amount of money that is allocated

–Employee Stock Ownership Plans (ESOPs)• Company-established benefit plans in which employees

acquire stock as part of their benefits

Evaluation of Variable and Skill-based Pay Evaluation of Variable and Skill-based Pay To some extent, variable pay does increase motivation and productivity

Benefits of Skill-based Pay Plans– Provide staffing flexibility– Facilitate communication across the organization– Lessen “protection of territory” behaviors– Meet the needs of employees for advancement– Lead to performance improvements

Drawbacks:– Lack of additional learning opportunities– Continuing to pay employees for obsolete skills– Paying for skills of no immediate use to the

organization– Paying for a skill, not for performance of the skill

3. What Benefits to Offer - Flexible Benefits3. What Benefits to Offer - Flexible Benefits

Employees tailor their benefit program to meet their personal need by picking and choosing from a menu of benefit options.Modular Plans – Predesigned benefits packages for specific groups of

employees

Core-Plus Plans– A core of essential benefits and a menu-like selection of

other benefit options

Flexible Spending Plans – Allow employees to use their tax-free benefit dollars to

purchase benefits and pay service premiums

4. How to Build Recognition Programs4. How to Build Recognition Programs

Intrinsic Rewards: Stimulate Intrinsic Motivation

– Personal attention given to employee

– Approval and appreciation for a job well done

– Growing in popularity and usage

Benefits of Programs

– Fulfill employees’ desire for recognition

– Inexpensive to implement

– Encourage repetition of desired behaviors

Drawbacks of Programs

– Susceptible to manipulation by management

See E X H I B I T 7-4 See E X H I B I T 7-4


Job Characteristics and Job Enrichment– Inconsistent results across cultures

Telecommuting– U.S. does this more, but EU workers are interested in it

Variable Pay– Not much research available, but some possible hypotheses

on relationships

Flexible Benefits– This concept is becoming more prevalent globally

Employee Benefits– Practices must be modified to match culture


To Motivate Employees

– Recognize individual differences

– Use goals and feedback

– Allow employees to participate in decisions that affect them

– Link rewards to performance

– Check the reward system for equity

Attitudes and Job SatisfactionAttitudes and Job Satisfaction


After studying this chapter, you should be able to:– Contrast the three components of an attitude.

– Summarize the relationship between attitudes and behavior.

– Compare and contrast the major job attitudes.

– Define job satisfaction and show how it can be measured.

– Summarize the main causes of job satisfaction.

– Identify four employee responses to dissatisfaction.

– Show whether job satisfaction is a relevant concept in countries other than the United States.

AttitudesAttitudes

Evaluative statements or judgments concerning objects, people, or events.

Three components of an attitude:

The emotional or The emotional or feeling segment feeling segment of an attitudeof an attitudeThe opinion or The opinion or

belief segment of belief segment of an attitudean attitude An intention to An intention to

behave in a certain behave in a certain way toward someone way toward someone or somethingor something


Does Behavior Always Follow from Attitudes?Does Behavior Always Follow from Attitudes?

Leon Festinger – No, the reverse is sometimes true! Cognitive Dissonance: Any incompatibility between two

or more attitudes or between behavior and attitudes

– Individuals seek to reduce this uncomfortable gap, or dissonance, to reach stability and consistency

– Consistency is achieved by changing the attitudes, modifying the behaviors, or through rationalization

– Desire to reduce dissonance depends on:

• Importance of elements

• Degree of individual influence

• Rewards involved in dissonance

Moderating Variables Moderating Variables

The most powerful moderators of the attitude-behavior relationship are:

– Importance of the attitude

– Correspondence to behavior

– Accessibility

– Existence of social pressures

– Personal and direct experience of the attitude.

Predicting Behavior from AttitudesPredicting Behavior from Attitudes

– Important attitudes have a strong relationship to behavior.

– The closer the match between attitude and behavior, the stronger the relationship:

• Specific attitudes predict specific behavior

• General attitudes predict general behavior

– The more frequently expressed an attitude, the better predictor it is.

– High social pressures reduce the relationship and may cause dissonance.

– Attitudes based on personal experience are stronger predictors.

What are the Major Job Attitudes?What are the Major Job Attitudes?

Job Satisfaction– A positive feeling about the job

resulting from an evaluation of its characteristics

Job Involvement– Degree of psychological

identification with the job where perceived performance is important to self-worth

Psychological Empowerment– Belief in the degree of influence

over the job, competence, job meaningfulness, and autonomy

Another Major Job AttitudeAnother Major Job Attitude

Organizational Commitment– Identifying with a particular organization and its goals, while

wishing to maintain membership in the organization.

– Three dimensions:• Affective – emotional attachment to organization

• Continuance Commitment – economic value of staying

• Normative - moral or ethical obligations

– Has some relation to performance, especially for new employees.

– Less important now than in past – now perhaps more of occupational commitment, loyalty to profession rather than a given employer.

And Yet More Major Job Attitudes…And Yet More Major Job Attitudes…

Perceived Organizational Support (POS)– Degree to which employees believe the organization values

their contribution and cares about their well-being.

– Higher when rewards are fair, employees are involved in decision-making, and supervisors are seen as supportive.

– High POS is related to higher OCBs and performance.

Employee Engagement– The degree of involvement with, satisfaction with, and

enthusiasm for the job.

– Engaged employees are passionate about their work and company.

Are These Job Attitudes Really Distinct?Are These Job Attitudes Really Distinct?

No: these attitudes are highly related.

Variables may be redundant (measuring the same thing under a different name)

While there is some distinction, there is also a lot of overlap.

Be patient, OB researchers are working on it!

Job SatisfactionJob Satisfaction

One of the primary job attitudes measured.– Broad term involving a complex individual summation of a

number of discrete job elements.

How to measure?– Single global rating (one question/one answer) - Best

– Summation score (many questions/one average) - OK

Are people satisfied in their jobs?– In the U. S., yes, but the level appears to be dropping.

– Results depend on how job satisfaction is measured.

– Pay and promotion are the most problematic elements.


Pay influences job satisfaction only to a point.– After about $40,000 a year (in the U. S.), there is no

relationship between amount of pay and job satisfaction.

– Money may bring happiness, but not necessarily job satisfaction.

Personality can influence job satisfaction.– Negative people are usually not satisfied with their jobs.

– Those with positive core self-evaluation are more satisfied with their jobs.

Causes of Job SatisfactionCauses of Job Satisfaction


Employee Responses to DissatisfactionEmployee Responses to Dissatisfaction


Active

Passive

ConstructiveDestructive

Outcomes of Job SatisfactionOutcomes of Job Satisfaction

Job Performance– Satisfied workers are more productive AND more

productive workers are more satisfied!

– The causality may run both ways.

Organizational Citizenship Behaviors– Satisfaction influences OCB through perceptions of

fairness.

Customer Satisfaction– Satisfied frontline employees increase customer

satisfaction and loyalty.

Absenteeism– Satisfied employees are moderately less likely to miss

work.

More Outcomes of Job SatisfactionMore Outcomes of Job Satisfaction

Turnover– Satisfied employees are less likely to quit.

– Many moderating variables in this relationship.• Economic environment and tenure

• Organizational actions taken to retain high performers and to weed out lower performers

Workplace Deviance– Dissatisfied workers are more likely to unionize, abuse

substances, steal, be tardy, and withdraw.

Despite the overwhelming evidence of the impact of job satisfaction on the bottom line, most managers are either unconcerned about or overestimate worker satisfaction.


Is Job Satisfaction a U. S. Concept?– No, but most of the research so far has been in the U. S.

Are Employees in Western Cultures More Satisfied With Their Jobs?– Western workers appear to be more satisfied than those in

Eastern cultures.

– Perhaps because Westerners emphasize positive emotions and individual happiness more than do those in Eastern cultures.



Managers should watch employee attitudes: – They give warnings of potential problems

– They influence behavior

Managers should try to increase job satisfaction and generate positive job attitudes– Reduces costs by lowering turnover, absenteeism, tardiness,

theft, and increasing OCB

Focus on the intrinsic parts of the job: make work challenging and interesting– Pay is not enough

Understanding Work TeamsUnderstanding Work Teams


After studying this chapter, you should be able to:– Analyze the growing popularity of teams in organizations.

– Contrast groups and teams.

– Compare and contrast four types of teams.

– Identify the characteristics of effective teams.

– Show how organizations can create team players.

– Decide when to use individuals isntead of teams.

– Show how our understanding of teams differs in a global context.

Why Have Teams Become So Popular?Why Have Teams Become So Popular?

Great way to use employee talents

Teams are more flexible and responsive to changes in the environment

Can quickly assemble, deploy, refocus, and disband

Facilitate employee involvement

Increase employee participation in decision making

Democratize an organization and increase motivation

Note: teams are not ALWAYS effective

Differences between Groups and TeamsDifferences between Groups and Teams

Work Group

– A group that interacts primarily to share information and to make decisions to help each group member perform within his or her area of responsibility

– No joint effort required

Work Team

– Generates positive synergy through coordinated effort. The individual efforts result in a performance that is greater than the sum of the individual inputs

Comparing Work Groups and Work TeamsComparing Work Groups and Work Teams

E X H I B I T 10-1E X H I B I T 10-1

Types of TeamsTypes of Teams

Problem-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 the responsibilities of their former supervisors


More Types of TeamsMore Types of Teams

Cross-Functional Teams

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

– Very common

– Task forces

– Committees

A Final Type of TeamA Final Type of Team

Virtual Teams

– Teams that use computer technology to tie together physically dispersed members in order to achieve a common goal

Characteristics– Limited socializing

– The ability to overcome time and space constraints

To be effective, needs:– Trust among members

– Close monitoring

– To be publicized

A Team-Effectiveness ModelA Team-Effectiveness Model

E X H I B I T 10-3E X H I B I T 10-3

Caveat 1: This is a general guide only.

Caveat 2: The model assumes that teamwork is preferable to individual work.

Key Components of Effective TeamsKey Components of Effective Teams

ContextCompositionWork DesignProcess Variables

Creating Effective Teams: ContextCreating Effective Teams: Context

Adequate Resources– Need the tools to complete the job

Effective Leadership and Structure– Agreeing to the specifics of work and how the team fits

together to integrate individual skills

– Even “self-managed” teams need leaders

– Leadership especially important in multi-team systems

Climate of Trust– Members must trust each other and the leader

Performance and Rewards Systems that Reflect Team Contributions– Cannot just be based on individual effort

Creating Effective Teams: CompositionCreating Effective Teams: Composition Abilities of Members

– Need technical expertise, problem-solving, decision-making, and good interpersonal skills

Personality of Members– Conscientiousness, openness to experience, and

agreeableness all relate to team performance Allocating Roles and Diversity

– Many necessary roles must be filled– Diversity can often lead to lower performance

Size of Team– The smaller the better: 5 to 9 is optimal

Member’s Preference for Teamwork– Do the members want to be on teams?

Key Roles On TeamsKey Roles On Teams

E X H I B I T 10-4E X H I B I T 10-4

Creating Effective Teams: Work DesignCreating Effective Teams: Work Design

Freedom and Autonomy– Ability to work independently

Skill Variety – Ability to use different skills and talents

Task Identity– Ability to complete a whole and identifiable task or product

Task Significance– Working on a task or project that has a substantial impact on

others

Creating Effective Teams: ProcessCreating Effective Teams: Process Commitment to a Common Purpose

– Create a common purpose that provides direction– Have reflexivity: willing to adjust plan if necessary

Establishment of Specific Team Goals– Must be specific, measurable, realistic, and challenging

Team Efficacy– Team believes in its ability to succeed

Mental Models– Have an accurate and common mental map of how the work gets

done A Managed Level of Conflict

– Task conflicts are helpful; interpersonal conflicts are not Minimized Social Loafing

– Team holds itself accountable both individually and as a team

E X H I B I T 10-5E X H I B I T 10-5

Turning Individuals into Team PlayersTurning Individuals into Team Players

Selection

– Make team skills one of the interpersonal skills in the hiring process.

Training

– Individualistic people can learn

Rewards

– Rework the reward system to encourage cooperative efforts rather than competitive (individual) ones

– Continue to recognize individual contributions while still emphasizing the importance of teamwork

Beware! Teams Aren’t Always the AnswerBeware! Teams Aren’t Always the Answer

Teams take more time and resources than does individual work.

Three tests to see if a team fits the situation:

1. Is the work complex and is there a need for different perspectives: will it be better with the insights of more than one person?

2. Does the work create a common purpose or set of goals for the group that is larger than the aggregate of the goals for individuals?

3. Are members of the group involved in interdependent tasks?


Extent of Teamwork– Other countries use teams more often than does the U.S.

Self-Managed Teams– Do not work well in countries with low tolerance for

ambiguity and uncertainty and a high power distance

Team Cultural Diversity and Team Performance– Diversity caused by national differences interferes with team

efficiency, at least in the short run

– After about three months the differences between diverse and non-diverse team performance disappear

Summary and Managerial ImplicationsSummary and Managerial Implications Effective teams have common characteristics:

– Adequate resources– Effective leadership– A climate of trust– Appropriate reward and evaluation systems– Composed of members with correct skills and roles– Are smaller– Do work that provides freedom, autonomy, and the chance

to contribute– The tasks are whole and significant– Has members who believe in the team’s capabilities

Managers should modify the environment and select team-oriented individuals to increase the chance of developing effective teams.

Chapter 8Chapter 8

CreativityCreativity

WELCOMEWELCOMETO THE WORLD OF TO THE WORLD OF

CREATIVE SKILLS - ADSMCREATIVE SKILLS - ADSM

A REASONABLE PERSON ADAPTS A REASONABLE PERSON ADAPTS HIMSELF/HERSELF TO THE WORLD; (IN-HIMSELF/HERSELF TO THE WORLD; (IN-

BOX)BOX)

AN UNREASONABLE PERSON ADAPTS AN UNREASONABLE PERSON ADAPTS THE WORLD TO HIMSELF/HERSELF. (OUT-THE WORLD TO HIMSELF/HERSELF. (OUT-

0F-THE-BOX)0F-THE-BOX)

SO ALL THE PROGRESS DEPENDS ON SO ALL THE PROGRESS DEPENDS ON THE UNREASONABLE PERSONTHE UNREASONABLE PERSON

This MBA programme aims at This MBA programme aims at making you unreasonablemaking you unreasonable

PERFORMANCE VERSES PERFORMANCE VERSES SYSTEMSSYSTEMS

SYSTEMSSYSTEMS 100 % 0 %

HighHighP

ER

FO

RM

AN

CE

PER

FO

RM

AN

CE

LowLow

ReasonablReasonablee

(Analytical(Analytical))

Un

reason

ab

leU

nre

ason

ab

le(C

reati

ve)

(Cre

ati

ve)

I Positive TraitsI Positive Traits

III Lateral Thinking III Lateral Thinking

IIII Problem SolvingIIII Problem Solving

II Mental BlocksII Mental Blocks

CREATIVE CREATIVE

SKILLSSKILLS

• Situations with no ready-made solutionsSituations with no ready-made solutions

PROBLEMSPROBLEMS• Situations that call for extra effortsSituations that call for extra efforts

• Sudden deviations / Unexpected happeningsSudden deviations / Unexpected happenings•Things that are blocking our wayThings that are blocking our way

• Situations where we don’t have controlSituations where we don’t have control

• Situations where there are risks involvedSituations where there are risks involved

• Confusing situations

• Things not going as per your wishThings not going as per your wish

• Lack of resourcesLack of resources

P R O B P R O B L E M L E M

Symptoms: Symptoms: BOTHERATION / UNEASINESS / BOTHERATION / UNEASINESS / WORRY / ANGER / FEAR / WORRY / ANGER / FEAR / SADNESS / TENSION / IRRITATIONSADNESS / TENSION / IRRITATION

A PROBLEM IS THE A PROBLEM IS THE DIFFERENCE BETWEEN DIFFERENCE BETWEEN

WHAT I HAVE AND WHAT I HAVE AND WHAT I WANTWHAT I WANT

B R A I N SB R A I N S

RIGHTRIGHT

ImaginationImagination

MusicMusic

RhythmRhythm

ColorColor

HumorHumor

DaydreamingDaydreaming

LEFTLEFTLogicLogic

AnalysisAnalysis

LanguageLanguage

NumberNumber

ReasoningReasoning

ReadingReading

WritingWriting

CLOSE-ENDED – Definite number of CLOSE-ENDED – Definite number of RIGHT answersRIGHT answers

NATURE OF PROBLEMSNATURE OF PROBLEMS

11 How much you have to pay How much you have to pay income tax?income tax?

22 Which is the capital of India?Which is the capital of India?33 How much does the shirt cost?How much does the shirt cost?44 How did it happen? How did it happen?

OPEN-ENDED – As many answersOPEN-ENDED – As many answers - No RIGHT or WRONG- No RIGHT or WRONG - More or less appropriate - More or less appropriate

11 What are the different ways by What are the different ways by which we can reduce income-tax?which we can reduce income-tax?

2 2 How can terrorism be eliminated?How can terrorism be eliminated?3 3 How to bring down the electricity How to bring down the electricity

bill?bill?4 How can we increase customer 4 How can we increase customer

satisfaction?satisfaction?5 5 How to make India an honest How to make India an honest

country?country?

Which is more in Which is more in number – number –

Open-ended or Open-ended or Close-ended ?Close-ended ?

Among the problems, Among the problems, how many of them how many of them areare of your own creation ?of your own creation ?

ARE YOU LAZY?ARE YOU LAZY?

LEFT ORIENTED RIGHT ORIENTEDLEFT ORIENTED RIGHT ORIENTED Love structure, systems, Get a kick in breaking rules Love structure, systems, Get a kick in breaking rules orderliness, rules etc. orderliness, rules etc.

Like stability Love changesLike stability Love changes

Focus on “what” (words) Focus on “how” (body language, Focus on “what” (words) Focus on “how” (body language, tone etc.)tone etc.)

Left Thumb up Right thumb up Left Thumb up Right thumb up

Right-eyed Left-eyedRight-eyed Left-eyed

Source is important Content (Not insisting on Source is important Content (Not insisting on evidence)evidence)

Want data / proof Go by gut feelings Want data / proof Go by gut feelings

LEFT ORIENTED RIGHT ORIENTEDLEFT ORIENTED RIGHT ORIENTED Good memory AbsentmindedGood memory Absentminded

Choose to be a physician ExplorerChoose to be a physician Explorer

Make good team members Soloists Make good team members Soloists

Yes, but Yes, andYes, but Yes, and

Prefer algebra Prefer geometry

Love competition Thrive on freedom

Digital Analogue (Right / Wrong)

WHAT IS CREATIVITY? WHAT IS CREATIVITY?

* CONCEIVING OF NEW IDEAS* CONCEIVING OF NEW IDEAS

* A TOOL FOR SURVIVOL* A TOOL FOR SURVIVOL

* LOOKING WHERE ALL HAVE LOOKED* LOOKING WHERE ALL HAVE LOOKED AND SEEING WHAT NO ONE HAS SEENAND SEEING WHAT NO ONE HAS SEEN

* CONSCIOUS ESCAPE FROM ROUTINE* CONSCIOUS ESCAPE FROM ROUTINE

* SHAKING HANDS WITH TOMORROW* SHAKING HANDS WITH TOMORROW

* RELATING OF UNRELATED THINGS* RELATING OF UNRELATED THINGS

* DOING WHAT OTHERS HAVE NOT DONE* DOING WHAT OTHERS HAVE NOT DONE

* LISTENING FOR SMELLS * LISTENING FOR SMELLS

WHAT IS CREATIVITY?WHAT IS CREATIVITY?

* EXPECTING THE UNEXPECTED* EXPECTING THE UNEXPECTED

* MAKING YOUR OWN PRODUCT OBSOLETE* MAKING YOUR OWN PRODUCT OBSOLETE

WHAT IS CREATIVITY?WHAT IS CREATIVITY?

* DYNAMIC TENSION BETWEEN OPPOSING * DYNAMIC TENSION BETWEEN OPPOSING FORCESFORCES

* NOT ACCEPTING THE EXISTING AS BEST* NOT ACCEPTING THE EXISTING AS BEST

* CHALLENGING ACCEPTED THINGS* CHALLENGING ACCEPTED THINGS

* BRINGING OUT PRODUCTS THAT * BRINGING OUT PRODUCTS THAT CONSUMERS DIDN’T KNOW THEY NEEDEDCONSUMERS DIDN’T KNOW THEY NEEDED

A Necessary Condition to the A Necessary Condition to the Development of Critical and Development of Critical and

Creative Thinking is: Creative Thinking is:

A Questioning Mind

Understanding the Mind of Isaac Newton Understanding the Mind of Isaac Newton

At the age of 19 Newton drew up a list of questions under 45 headings.

His title, Questions, signaled his goal: to constantly question the nature of matter, place, time, and motion.

He worked hard to understand the thinking of others working on his list of problems.

For example, he bought Descartes's Geometry and read it by himself.

After two or three pages, when he could understand no further, “he began again and advanced farther and continued doing so till he made himself master of the whole.”

Understanding the Mind of Albert Einstein Understanding the Mind of Albert Einstein

Einstein failed his entrance exam to Zurich Polytechnic. When he finally passed (by

attending a cram school) he did not want to think about scientific problems for a

year. His final exam was so non-distinguished that afterward he was

refused a post as an assistant.

Thus critical thinking has a creative Thus critical thinking has a creative component: to produce a better component: to produce a better product of thought product of thought

And creative thinking has a critical component: to reshape

thinking in keeping with criteria of excellence.

Critical thinking without a creative Critical thinking without a creative output is merely negative thinking. output is merely negative thinking.

Creative thinking without a critical component is merely novel thinking.

It is easy to be merely negative or novel in one’s thought.

Every genuine act of figuring out Every genuine act of figuring out anything is a new making, a new series anything is a new making, a new series of creative acts, however mundane. of creative acts, however mundane.

To come to understand anything requires that the mind construct

new connections in the mind.

No one can be given knowledge or No one can be given knowledge or understanding; they must all create or understanding; they must all create or construct it for themselves. construct it for themselves.

Didactic teaching does not work because it violates the essential conditions under which the mind learns by acts of construction in the mind.

Didactic teaching refers to engaging students in the subject being taught. This can be done

through various methods like diagrams, photos and pictures of what's being taught.

At even the most fundamental level of At even the most fundamental level of learning, at the earliest age of learning, the learning, at the earliest age of learning, the learner must actively construct (create) to learner must actively construct (create) to learn. learn.

We must abandon the notion that knowledge can be “transmitted”

without active creative construction on the part of the learner.

At even the most fundamental level of At even the most fundamental level of learning, at the earliest age of learning, the learning, at the earliest age of learning, the learner must actively assess its construction learner must actively assess its construction

to take genuine ownership.to take genuine ownership.

Am I being clear?Am I being accurate?These are minimal criteria for the

construction of knowledge.

The essential need for criticality and The essential need for criticality and creativity applies to the work of the most creativity applies to the work of the most humble student as well as that of the humble student as well as that of the greatest genius greatest genius

If we study the development of the greatest minds Aristotle, Beethoven, Curie, Da Vinci,

Galileo, Michelangelo, Newton, Einstein we will discover that each went through a period of

growth in which they internalized high standards of criticality that played a significant role in the

manner in which they went about their later creative production.

Creativity in Creativity in EntrepreneurshipEntrepreneurship

What is creativity?What is creativity? What is creativity?What is creativity?

Creative behaviors possessing an element of newness, novelty, and difference.

Creativity is an act, an idea, or product that changes an existing domain, or that transforms an existing domain into a new one, and creative person is whose thoughts or actions bring these changes.

What is creativity?What is creativity?What is creativity?What is creativity?

Wallas’ description of creative thinking, suggests a model in four stages:

– Preparation: problem definition

– Incubation: resting phase, subconscious mind

– Illumination: idea of a solution comes to mind

– Verification: solutions are tested

Creativity and InnovationCreativity and InnovationCreativity and InnovationCreativity and Innovation Creativity leads to innovation

“Innovation is the specific instrument of entrepreneurship. The act endows resources with a new capacity to create wealth. Innovation, indeed, creates a resource.” (Drucker)

Entrepreneurship is all about innovation

Innovation is economic or social, rather than a technical term

EntrepreneurshipEntrepreneurshipEntrepreneurshipEntrepreneurship

“Entrepreneurship is a way of thinking, reasoning and acting that is opportunity obsessed, holistic in approach and leadership balanced.”

Entrepreneurial qualities– commitment and determination, leadership,

opportunity obsession, tolerance of risk, ambiguity and uncertainty, creativity, self-reliance and ability to adapt, and the motivation to excel, ability to use failure experience as a way of learning

Entrepreneurship and CreativityEntrepreneurship and CreativityEntrepreneurship and CreativityEntrepreneurship and Creativity

Creative in figuring out a way to work in a joint venture

Creativity comes in writing an amazing sales letter or visualizing the perfect logo

For practicing innovation, they need to be aware of change, and creatively use it to their advantage – The Unexpected, Incongruities, Process Need,

Industry and Market Structures, Demographics, Changes in Perception, New Knowledge (Drucker)

Entrepreneurship and CreativityEntrepreneurship and CreativityEntrepreneurship and CreativityEntrepreneurship and Creativity

Tolerance for ambiguity is related to certain entrepreneurial styles

“Creative destruction”

– procedures and destroys or reallocates amassed resources

Creative in identifying the gap in the market and think up a product

Nurturing CreativityNurturing Creativity Nurturing CreativityNurturing Creativity Several techniques to encourage creative

thinking:

– Ask Questions, Lateral Thinking, Six Thinking Hats, Brainstorming etc

Technology and business incubators

– “complete innovation system”

– Provide financial, marketing and design support

– Generation of new creative ideas and business plans

– joint and cross-disciplinary learning

NegotiatingNegotiating

Creative Negotiating, Stephen Kozicki, Adams Press, 1998

“Negotiating is the art of reaching an agreement by resolving differences through creativity”

Negotiating ProcessNegotiating Process

Style

Outcome

Principles

Style Style

Style is a continuum between two styles:– Quick

– Deliberate

– Middle is compromise

Quick Style Quick Style

Negotiate in a hurry Use when you won’t negotiate with these people again Get the best deal without regard to the other side’s “win”

Deliberate StyleDeliberate Style

Use when long term relationship likely

Involves cooperation and relationship building to reach agreement

Needs much prep, hard work

May move in fits and starts

OutcomesOutcomes Realistic

– Both sides satisfied, win/win situation

– Usually results from deliberate style

Acceptable – Likely to result from quick style

– Something is better than nothing

– Always ask for a better deal

Worst – When you’re too stubborn to be flexible

– Usually from quick style

Outcomes Outcomes

Predetermine the outcomes before you start negotiations, you have a better chance of getting a better result

“Think carefully, think creatively, and think ahead”

PrinciplesPrinciples

There are no rules– Establish an agenda

Everything is negotiable Ask for a better deal Be creative Learn to say “NO” yourself

Are you a Motivated Negotiator?Are you a Motivated Negotiator?

Enthusiasm– Confidence– Engaged

Recognition– Accomplishment– Pat on the back

Integrity– No trickery– Trustworthiness

Social Skills– Enjoy people

– Interest in others

Teamwork– Better as a team

– Self-control

Creativity– Always looking for ways

to complete the deal

Negotiation ModelNegotiation Model

Investigate Presentation Bargaining Agreement

InvestigateInvestigate

What do you want? What does the other side

need? Decide on style What are the consequences of

each choice.

PresentationPresentation

Prepare other side’s case Present the reasons for your

side better Planning sheet

– Issues involved

– Realistic, possible, worst

“The” Presentation“The” Presentation

Creative titleReduce to “must

know” itemsKeywordsMini-speeches around

keywordsVisuals

Don’t give concessions just to keep things going

Make note of concerns and keep going

BargainingBargaining

When in doubt, ask questions!

Open questions Reflective questions Tactics

TacticsTactics

Use– Walk out

Don’t use – Emotional outburst– Argue special case– Pretend ignorance– Play for time– Nibble and retreat

– “You go first”– Bad environment– Defer to higher

authority– Not willing to make

any changes– Silence – Good guy/bad buy

AgreementAgreement

Arrangements should be neutral and comfortable

Pay attention to what others sayScreen out all visual distractionsAsk open ended questionsListen to responsesProactive vs. reactive behavior

A Good Negotiator Is..A Good Negotiator Is..

CreativeVersatileMotivated Has the ability to

walk away

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