Chapter 1: Overview of Organizational Behavior futuristic mindset; the how’s ex: how do we get there or how can we achieve our goals; action plan) ⮚ Steps in planning: ● Identify your needs and objectives ● Gather information ● Prepare analysis ● Develop a plan of action (steps that you will be taking; stepping stones) ● Implement your plan ● Monitor your progress (if no progress, return and re-evaluate) Organizational Behavior (OB): - study of human behavior in organizational settings - interface between human behavior and the org. (interface: interaction of employees) - organization itself (structure or culture of an org.) Nature of OB: human behavior > the individual-org interface > the org. - all are affected by the environment surrounding it If there is a positive environment, then most likely there is productivity (support from the org.) It is a cycle since planning never ends. We try to achieve a lot of goals. Studying OB can clarify factors that affect how managers manage by: - 2. describing the complex human context of organizations defining the associated opportunities, problems, challenges and issues isolating important aspects of the manager’s job offering specific perspectives on the human side of management (we are looking at the humanistic side) There is no formula to a person’s behavior so it is difficult to predict a person’s behavior. We are individually different so that is why it is complicated for managers to describe behaviors (Chilou, 2020). 3. Studying OB helps managers understand: - - - - the behaviors of people in the org. (we act and behave differently so we need to understand others) personal needs, motives, behaviors, feelings and career dynamics (we have diff. motivations so we should not generalize everyone) attitudinal processes, individual differences, group dynamics and organization culture (when we talk about attitudes we talk about preference, how we view things) interactions with people outside of the organization and other orgs. (how we interact with others; competitions) the environment, technology, and global issues Organizational Process Behavior and Management Management Functions 1. Planning: establishing goals and targets; determining an organization’s desired future position and the best means of getting there (looking forward or having a 4. Organizing: dividing tasks and assigning them; grouping jobs into units and establishing patterns of authority (creating a structure; collaboration) ⮚ Process of Organizing: ● Defining org. goals ● Identifying activities ● Grouping of activities ● Assigning duties (all not equal since lahi lahi ug responsibilities) ● Defining authority ● Delegating authority ● Establishing relationships ● Providing resources ● Coordination Leading: influencing and motivating people; getting organizational members to work together towards the orgs. goals (not all managers are good leaders; to be called a good leader dapat maka dala ka sa imo team) ⮚ Hudson Leadership Model (new global model): based on a comprehensive review of leadership theory and principles by our registered psychologists across the globe (vision, action, impact, connection, drive) Controlling: ensuring plans are carried out and correcting deviations; monitoring and correcting the actions of the organization and its members to keep them directed toward their goals (correcting some of the actions; punishment and rewards applied in the org.) Resources Used by Managers ✔ Human Resource: employees are needed to achieve plans; talks about human capital ✔ Financial Resource: assets and money needed to fund business operations ✔ Physical Resource: refers to office, equipment ✔ Information Resource: manuals and knowledge systems; refers to the information going on in our environment; global issues If na properly implement ang functions with the resources, then you have an Effective and Efficient Attainment of Organizational Goals Characteristics of the Field 1. Important Managerial Roles (the Manager’s Job) ✔ Interpersonal ⮚ Figurehead – attend employees’ retirement ceremony (someone na makita nato; if naay activities siya ang figure na naa diha) ⮚ Leader – encourage workers to increase productivity (have to be an example) ⮚ Liaison – serve as the link or bridge between two departments; coordinate activities of two committees (brings together committees) 2. Basic Concepts of the Field (framework) 1. Individual process 2. Interpersonal process 3. Organizational process Contextual Perspectives on OB 1. ✔ Informational ⮚ Monitor – regularly checks promos of competing teams; scan business publications for information ⮚ Disseminator – regularly send emails to employees when there is new important info; Send out memos outlining new policies ⮚ Spokesperson – hold press conference to announce new plant (kung naay mga new products or new undertaking or new plans) ✔ Decision Making ⮚ Entrepreneur – develop idea for new product and convince others of its merit (someone who can sell or encourage others to buy) ⮚ Disturbance handler – resolve dispute (if nay away2 within the org) ⮚ Resource allocator – allocate budget requests (financial matters) ⮚ Negotiator – settle new labor contract Contemporary Organizational Behavior Systems perspective: process; IPO framework ⮚ System: interrelated set of elements that function as a whole-inputs are combined by managers into outputs from the system (meaning naa siyay process) Value of the Systems Perspective ● Underscores the importance of an organization’s environment (domino effect) (if one is demotivated, you will be affected since their work will go to you then this will lead to burnout; ang system sa org, along with the org itself, hinay2 maguba) ● Conceptualizes the flow and interaction of various elements of the org (if there is something wrong sa usa ka systema then mabungkag jud siya) Input (material; financial) > Transformation (technology) > Outputs (products) 2. - Critical Managerial Skills ✔ Technical – ability to accomplish specific and specialized tasks; (ex: hr manager skills necessary is to know how to recruit or training; if it manager then know something about it; technical parts) ✔ Interpersonal – skills used to communicate with, understand and motivate individuals (manager should not be close minded; manager should step up; manager should interact with employees) ✔ Conceptual – skills used in abstract thinking (when developing concepts; as a manager they should know how to conceptualize) ✔ Diagnostic – ability to analyze problems and come up with appropriate solutions; (identifying root causes and finding solutions) Top managers: greater conceptual and diagnostic skills Middle Managers: all technical, conceptual, interpersonal, diagnostic skills are equal First-line Managers: technical and interpersonal skills should be greater than the conceptual and diagnostic skills Interdisciplinary in focus – not about psychology behavior alone; can also get from diff. fields Descriptive in nature – behavior should be described 3. - - 4. - - Situational perspective evaluating the conditions surrounding org. problems; recognizes that most org. situations and outcomes are influenced by other variables (mo tanaw sa case to case basis; dili mag generalize); ex: motivate employees > leadership styles and raise of pay > productive employees most situations and outcomes are contingent - that is the precise relationship is likely to be situational Universal (generalize) assumes that laws and theories are applicable to all contexts; presumes a direct cause and effect linkage between; thinks that the one solution can resolve other problems; ex: motivate employees > raise pay but, complexities of human behavior and organizational settings make universal conclusions virtually impossible (murag one size fits all na solution) Interactional perspective: continuous interplay between individual and the situation; focuses on how individuals and situations interact continuously to determine individuals’ behaviors (behavior of the employee is dependent on the situation) Kurt Lewin’s dictum: B(behavior) =function of (Person, Environment) Managing for Effectiveness Managers work toward accomplishing the various goals (outcomes) that exist at specific levels in an organization: 1. Individual-level outcomes Productivity; Performance; Absenteeism Turnover (resigning), Attitudes, Stress 2. Group-level outcomes Norms (how we view things and how we follow it); Cohesiveness; Performance; Productivity 3. Organizational-level outcomes Financial performance; Survival; Productivity; Absenteeism; Productivity; Stakeholder satisfaction (finances an org.) Note: if all 3 are manage well then it will lead to organizational effectiveness Chapter 2: Foundations of Individual Behavior People in Organizations Psychological Contract - person’s overall set of expectations regarding what he or she will contribute to the organization and what the organization, in return, will provide to the individual (your expectations; reciprocal relationship, if I give my effort then I would expect the org. to give reward) - organizations provide inducements in the form of tangible/intangible rewards ✔ Tangible (seen) – pay, career opportunities ✔ Intangible – job security, status ⮚ contributions from the individual: effort, ability ⮚ inducements from org: pay, promotion Note: If either party sees inequity in the contract, that party may initiate a change: Employee – ask for a raise, look for job elsewhere Organization – training the worker to improve skills Note: PH has due process: HR will send a memo to let employee explain (legal way) or warning before firing US employees (western culture)– value individual rewards Japanese (Asian culture) – value group based rewards Mexicans and Germans – value leisure time; compressed work Filipino employees are more intrinsically motivated – we can motivate ourselves; value group rewards and performance base Person-Job Fit - extent to which the contributions made by the individual match the inducements offered by the org. (skills match the inducements; there is equity) Individual Differences - personal attributes that vary from one person to another; include personality, attitudes and creativity (different preferences) Personality and Organizations The “Big Five” Personality Traits - set of fundamental traits that are especially relevant to organizations; OCEAN For an ideal employee, they should have high agreeableness, conscientiousness, extraversion and openness then low on neuroticism Emotional Intelligence (EQ) - extent to which people are self-aware, can manage their emotions, can motivate themselves, express empathy for others, and possess social skills ⮚ Dimensions of EQ: ● Self-awareness (aware of own strength and weaknesses) ● Managing emotions (capacity to handle emotions professionally) ● Motivating oneself (you alone can motivate yourself) ● Empathy (feeling others feelings) ● Social skills (mingle with others) Other Personality Traits at Work Locus of Control - extent to which a person believes that their circumstances are a function of either their own actions or of external factors beyond their control Self-efficacy - person’s beliefs about their capabilities to perform a task; feel that you can do it! makaya rana nimo! Authoritarianism - belief that power and status differences are appropriate within hierarchical social systems such as orgs.; respecting boundaries or authority in orgs.; acknowledging that there are people in higher authority or position than you Machiavellianism - behavior directed at gaining power and control of others; manipulating or controlling behavior of others Self-esteem - extent to which a person believes he or she is a worthwhile or deserving individual Risk Propensity - degree to which a person is willing to take chances and make risky decisions; ability of a person to take risks Other Salient Variables: Working Conditions: if org. always have over time then it will affect your mental health then you are no longer happy Coworkers: if himantayon na coworkers then factor siya na di ka ma satisfied sa imo trabaho Leadership: some would leave their jobs bc. of their boss Attitudes in Organizations Attitudes - stable disposition to behave toward objects in a certain way - person’s complexes of beliefs and feelings about specific ideas, situations, other people Structural Components of Attitudes Affect: a person’s feelings toward something Cognitions: the knowledge a person presumes to have about something Intention: component of an attitude that guides a person’s behavior; ex: if your attitude towards political behavior in org. is bati then you would avoid it Attitudes are formed through: • Personal values – personal beliefs • Experiences – shapes attitude • Personalities (which are enduring individual traits) – if mao na imo preference then usually mao na imo attitude ipa gawas or pakita Experience with an employer > pleasant > will have positive attitude towards them Cognitive Dissonance - anxiety a person experiences when he/she simultaneously possesses two sets of knowledge or perceptions that are contradictory or incongruent; there are two conflicting ideas ex: you claim that you hate to do over time but you do so to beat some deadline Why Attitudes Change: • Availability of new information (mausab ato attitude if naay new info. na mabawan) • Changes in the object of the attitude (kung unsa to ato gi hunahuna then nausab, so it could also change our attitudes) • Object of the attitude becomes less important (we realize na di to kaayo siya important so we change our focus) • To reduce cognitive dissonance (di na ta ganahan maka experience libog) Key Work-Related Attitudes ⮚ Job satisfaction: person is gratified by work ⮚ Organizational commitment: feeling attached to the organization ⮚ Positive Affectivity: upbeat and optimistic ⮚ Negative Affectivity: downbeat and pessimistic Perception in Organizations Perception- individual becomes aware and interprets info about the environment ⮚ Selective Perception: screening out information that causes discomfort or contradicts our beliefs (filter ang dili nimo ganahan) ⮚ Stereotyping: categorizing or labeling on the basis of a single attribute or characteristics; ex: mga taga usc dato but we know not all jud Attribution Theory -we attribute causes to behavior based on our observations ⮚ Consensus: people in the same situation to behave in the same way; we are all doing the same thing; ex: in a meeting – it is expected for people to be silent if not the one presenting ⮚ Consistency: same person behaves in the same way at different times; similar imo behavior bisag different na times; ex: hardworking now and next month ⮚ Distinctiveness: behaves in the same way in different situations; situational based; ex: hilomon jd siya bisag asa siya ebutang TYPES OF WORKPLACE BEHAVIOR Workplace behavior pattern of action by the members of an organization; directly or indirectly influences workplace behavior Performance behavior – related behavior that the organization expects the individual to display; behaviors that are expected from the employees Dysfunctional Behavior – behaviors that detract from organizational performance ⮚ Absenteeism: do not show up for work ⮚ Turn over (resign): when people quit their jobs ⮚ Theft and Sabotage: result in financial cost ⮚ Sexual Harassment: making inappropriate sexual remarks ⮚ Workplace Violence: physical threatening Organizational Citizenship – person’s behavior makes a positive overall contribution to the org.; helping a colleague sa iya trabaho bisag beyond na sa imo working hours Chapter 3: Motivation Motivation - set of forces that leads people to behave in particular ways (what pushes us to do something); ex: if hungry, then hunger is our motivation to seek food to satisfy our hunger The Importance of Motivation - job performance (P) depends upon motivation (M), ability (A), and environment (E) P=M+A+E Note: Dapat the 3 (MAE) should be present since it results to our performance ⮚ If employee lacks the abilities > sent to training (if makamao na sila gaan na sila ug responsibility na mo match sa ila skills) ⮚ If the employee cannot learn the skill, he/she can be transferred to a simpler job (we cannot force the employee to work on something na di gyud nila kaya) ⮚ If an employee lacks materials, equipment, information, the manager can take steps to provide them (ex: if they lack a laptop how can they perform their job well? so it is the manager's job to provide those) Motivational Framework - we all have our different needs; the reason why we are working is because we have our own personal needs to accomplish 1. Experienced Need Deficiencies: we experience something that is lacking 2. Search for ways to satisfy needs: ganahan ta ma satisfy ato needs 3. Choice of goal-directed behaviors: mag huna huna ta sa ato buhaton to satisfy our needs; ex: if gusto mo saka ang salary then i will do something na ma promote ko then I will do something about it 4. Enactment of behavioral choice (performance): acting on those behaviors 5. Experienced rewards or punishment: if they are impressed with your work then you can experience being rewarded by your employer 6. Reassessment of need deficiencies: try to reassess if na satisfy ba jd imo needs kay if wala then do something about it Note: this is a cycle since di mag stop ato needs Need - something the individual requires or wants; unmet needs usually result into more intense feelings and behavioral changes (if di ma meet ato certain need then mas mo strong ato desire na abton to na goal or need) - deficiency need usually triggers a search for ways to satisfy them If an employee feels that his or her salary is deficient, there are 3 options to be done: 1. Ask for a raise or promotion 2. Work harder in the hope of earning a raise or promotion 3. Look for a new job with higher salary (last resort; look for job that will have better opportunities) The Motivational Framework How Motivational Processes Occur Need - anything an individual requires or wants ⮚ Need deficiency - leads to need to satisfy the need Goal-directed behaviors - result from individuals trying to satisfy their need deficiencies (since naa tay na experience na need deficiency then you want to do something about it) Rewards and punishments - consequences of the goaldirected behavior (ex: asking for a raise is the reward after working hard) Historical Perspectives on Motivation The Traditional Approach ⮚ “Scientific Management” (Frederick Taylor) assumes: -that employees are motivated solely by money; advocated incentive pay systems (very traditional view of motivation since para nila ang only way ga trabaho ang tao is tungod sa kwarta) - advocated incentive pay systems (mao imo ma produce na output mao rsad nay equivalent na amount na madawat) - managers know more than did their workers (mas kamao ang managers kaysa workers) Assumptions: - economic gain primarily motivated everyone - work is primarily unpleasant for most people (napugos rata ug trabaho since mao ranay only way to satisfy our needs) - people can perform any kind of job if they are paid enough (regardless pa sa unsa ang trabaho kung hatagan ka ug dako na salary so pwede rjud ka mo trabaho ug bisag unsa di na mo matter ang emotions) The Human Relations Approach - Assumes employees’ needs outweigh money and that fostering favorable employee attitudes (the illusion of involvement) results in motivation (no longer about the money) - Employees have strong social needs—more important than money (the need to interact with others; we work because we established friends in our workplace) - ex: allow workgroup to participate in making decisions (feeling that you are included; participation is important) The Human Resource Approach - Assumes people want to make genuine contributions; managers should encourage their participation by providing the proper working environment conditions (they should also have their own resources so that they could contribute; hatagan ug freedom to solve their problems) Need-Based Perspective on Motivation I. Need-Based Theories of Motivation assume that need deficiencies cause behavior (tungod naay ka kulangan it triggers a certain behavior) The Hierarchy of Needs (Abraham Maslow) - assumes that human needs are arranged in a hierarchy of importance; lower level needs are important to progress II. ERG Theory (Clayton Alderfer) - describes existence (E), relatedness (R), and growth (G) needs ⮚ Existence Needs– corresponds to survival and security needs of Maslow’s ⮚ Relatedness—similar to belongingness and selfesteem needs ⮚ Growth Needs—similar to self-esteem needs and selfactualization needs - Assumptions: Satisfaction-progression and frustration-regression components imply that a person may not stay at the same level of need in Maslow’s Hierarchy of Needs (more than one need may motivate us at the same time; pede mag dungan ang mga needs) ⮚ Satisfaction-progression: suggests that after satisfying one category of needs, a person progresses to the next level (if ma satisfy then you will progress) ⮚ Frustration-regression: suggests that a person who is frustrated by trying to satisfy a higher level need eventually will regress to the preceding level (if you don't feel satisfied mo go back ka sa imong needs na wala na satisfy) III. The Dual-Structure Theory (Frederick Herzberg) assumes that motivation, as a construct, has two separate dimensions: ⮚ Motivation factors which affect satisfaction ⮚ Hygiene factors which determine dissatisfaction (pwede na in terms of achievement na satisfied ka, if wla ka naka achieve dili mean na you are all dissatisfied sa imo work only one part lng) Assumes motivation occurs through job enrichment once hygiene factors are addressed Criticisms: (original sample: accountant and engineers) ● May be both method and culture bound ● Fails to account for individual differences ● Factors (e.g., pay) may affect both dimensions There are certain areas only that you will feel satisfied or dissatisfied; break down into smaller areas para msabtan asa na aspect sa work naka feel siya ug satisfaction or none - Process-Based Perspectives on Motivation - concern with how motivation occurs Other Important Needs: 1. Need for Achievement (David McClelland) - desire to accomplish a task or goal more effectively than was done in the past (if you have a need for achievement then you constantly seek for higher challenges; dili ka mo settle lng; sge ka ug improve) - high-need achievers also want immediate, specific feedback on their performance - ex of high need achievers: Steve Jobs and Bill Gates - - 2. Need for Affiliation need for human companionship (people are social beings so we need to affiliate with others) tend to want reassurance and approval from others usually concerned with others’ feelings most often work in jobs with a lot of interpersonal contact 3. Need for Power desire to control the resources in one’s environment including financial, material, informational, and human resources ⮚ Conditions where need for power can be successful: a. Seek power for the betterment of the organization rather than for their own interest b. Must have fairly low need for affiliation to avoid alienating others in the workplace c. Self-control to curb their desire for power when it threatens to interfere with effective organizational or interpersonal relationships (know how to control yourself) Process-Based Theories 1. Equity Theory of Motivation - focuses on the desire to be treated with equity and to avoid perceived inequity Equity: perceptual belief that one is being treated fairly in relation to others Inequity: perceptual belief that one is being treated unfairly in relation to others Perception of Equity: 4 step process a. they evaluate how they are being treated by the firm b. they form a comparison of how the “comparison-other” is being treated c. they compare their own circumstance with that of the comparison-other than use this as basis for forming the impression of equity or inequity. d. depending on the strength of this feeling, the person will pursue to choose alternatives Motivation to reduce inequity: a. change inputs b. change outcomes c. alter perceptions of self d. alter perceptions of others e. change comparison f. leave situation Evaluations and Implications a. Everyone in the organization needs to understand the basis for rewards. - Reward system has to be clearly communicated to everyone b. People tend to make a multifaceted view of their rewards; they perceive and experience a variety of rewards. Some tangible, others intangible. c. People Base their actions on their perception of reality. ex: if two employees are being fairly rewarded, the employees themselves may not necessarily agree if their perceptions differ from the manager’s - 2. Expectancy Theory of Motivation (Victor Vroom) motivation depends on how much we want something and how likely we think we are to get ✔ Effort to performance expectancy: perceived probability that effort will lead to performance ✔ Performance to outcome expectancy: perceived probability that performance will lead to certain outcomes ✔ Outcome: anything that results from performing a behavior ✔ Valence: degree of un/attractiveness that a particular outcome has for a person; pay raise, promotion –are positive valence whereas fatigue, stress, and less time to rest might all have negative valences Basic Framework suggests three conditions must be met before motivated behavior occurs: a. b. c. Effort-to-performance expectancy must be well above zero. Means workers must reasonably expect that exerting effort will lead to performance. Performance-to-outcome expectancies must be well above zero. Thus, person must believe that performance will realistically result in valued outcomes Pay raise, promotion –are positive valence whereas fatigue, stress, and less time to rest might all have negative valences For instance: stress and fatigue may have moderately negative valences, but if pay, promotion and recognition have very high positive valences, the overall valence of the set of outcomes will be positive 3. Porter-Lawler Model (Variation of Expectancy Theory) - focuses on the relationship between satisfaction and performance Assumes that: ⮚ If rewards are adequate, high levels of performance may lead to satisfaction. ⮚ Satisfaction is determined by the perceived equity of intrinsic (intangible) and extrinsic (tangible) rewards for performance Performance will result in two kinds of rewards: a. Intrinsic rewards—feelings of accomplishments, sense of achievement b. Extrinsic rewards– tangible outcomes such as pay and promotion individual judges the value of his or her performance and uses social comparison to form an impression of equity of the rewards received if the rewards are regarded as equitable, the employee feels satisfied People will not engage in motivated behavior unless: I. Value the expected rewards II. Believe their efforts will lead to performance III. Believe their performance will result in the desired rewards 4. Goal-Setting Theory Learning-Based Perspectives on Motivation Learning - relatively permanent change in behavior or behavioral potential resulting from direct or indirect experience How Learning Occurs: Traditional View: Classical Conditioning - simple form of learning that links a conditioned response with an unconditioned stimulus Contemporary View: Learning as a Cognitive Process - assumes people are conscious, active participants in how they learn ⮚ Cognitive view suggests that people draw on their experiences and use past learning as basis for present behavior. ⮚ People make choices about their behavior ⮚ People recognize the consequences of their choices– for instance when job assignment is rewarding, he/she will recognize that a choice is a good one ⮚ People evaluate the consequences and add them to prior learning which affects future choices Reinforcement Theory and Learning Operant Conditioning (Skinner) - Behavior is a function of its consequences - Reinforcement theory suggests that in any given situation, people explore a variety of possible behaviors Social Learning in Organizations - Occurs when people observe the behaviors of others, recognize their consequences, and alter their own behavior as a result Conditions for social learning: - Behavior being observed and imitated must be relatively simple - Observed and imitated behavior must be concrete, not intellectual - Learner must have the physical ability to imitate the observed behavior Organizational Behavior Modification (OB Mod) • The application of reinforcement theory to people in organizational settings • Linking behaviors with positive consequences and decrease undesirable behavior with negative consequences Effectiveness of OB Mod • Varying results in organizational applications • BF Goodrich, Emery Air Freight are using OB Mod program Drawbacks • Lack of “real world” use • Managers have limited means for providing meaningful reinforcements Ethics of OB Mod • Individual freedom of choice • Employee manipulation Chapter 4: Rewarding Individual Performance Goal Setting and Motivation - goal setting has been regarded as a useful method in enhancing employee performance Purposes of Setting Goals in Organizations - provide a useful framework for managing motivation to enhance employee performance - serve management as a control device for monitoring of how well the organization is performing Goal: desirable or meaningful objective ✔ Social learning theory: describes the role and importance of goal setting in organizations; suggests that feeling of pride and shame about performance are a function of the extent to which people achieve their goals Self-Efficacy: extent to which we believe we can accomplish our goals even if we failed to do so in the past (belief that we can still continue forward despite going through a failure) Goal Setting Theory (Edmund Locke) - assumes that behavior is a result of conscious goals and intentions, therefore goals influence behavior (performance); whenever we set a certain goal kana siya na goal ang mo set sa ato behavior and performance ex: if you want to graduate in time, having that goal in mind, naka align sd diaha inyo behavior like you will study hard and comply the requirements Goal Characteristics: 1. Goal difficulty - extent to which a goal is challenging, requires effort, and is attainable (if it is challenging for you and dili nimo ma achieve ma frustrate ka but if too lay na dili ka ma challenge then ma bored rsad ka so dapat practical ang kalisod sa goals) - ex: increase sales by 300% - unattainable; increase sales by 20% - more realistic - reinforcement also fosters motivation towards difficult goals (nindot jd if there are reinforcements from time to time since we will be more inclined to reach the next goals) - person who is rewarded for achieving a difficult goal will be more inclined to strive toward the next difficult goal than some who receive no reward for reaching the first goal - 2. Goal specificity clarity and precision of a goal (dapat specific ang goal para mas precise kung unsa imo e achieve) ex: “increasing productivity” is not very specific but if we say, “increasing productivity by 3%” is more specific some goals can be precise: cost, output and growth Expanded Goal Setting Theory (Lock and Latham): gi extend ang goal characterisitcs The Goal-Setting Process: goal-directed effort is a function of goal attributes: a. b. c. Goal difficulty Goal specificity Goal acceptance: the extent to which a person accepts a goal as his/her own (owning it; this is my goal so mao ni ako buhaton) d. Goal commitment: the extent to which a person is interested in reaching a goal (ato gana dapat committed kaayo sa ato goals) Note: Make challenging but realistic goals; create goals that you look forward for you to be motivated Broader Perspectives on Goal Setting Management by Objectives (MBO) - collaborative goal-setting process through which organizational goals cascade down throughout the organization (needs interaction within the org.) - requires customizing to each organization - can be effective for managing reward systems where the manager has individual interactions with each employee For MBO to work: I. The overall goals are communicated to everyone (everyone in the org. should know) II. Manager meets with each subordinate—manager explain the unit goals and how subordinate can contribute most effectively (dapat concrete na makita na goals aron ma measure nimo ang iya gi set na goal) ⮚ Manager acts a counselor and helps ensure that subordinate develops goals that are verifiable III. Manager has to ensure that subordinate has the resources needed to reach his or her goals (teamwork is needed to reach the goals) ⮚ The entire process flows downward as each manager meets with his subordinate to develop their goals Goal Setting: Evaluation and Implications Research has shown that: Goal difficulty and specificity are closely associated with performance Goal-setting theory may focus too much on short-run considerations MBO has the potential to motivate because it helps implement goal-setting theory on a systematic basis throughout the organization (MBO helps motivate people and it is also systematic but it has a tendency to overemphasize) MBO has a tendency to overemphasize quantitative goals to enhance verifiability Performance Management in Organizations The Nature of Performance Management Performance measurement (or appraisal) process: I. Evaluating an employee’s work behaviors by measurement and comparison with previously established standards II. Documenting the results III. Communicating the results to the employee Performance Management System ⮚ Comprises the processes and activities involved in performance appraisals ⮚ The PA system plays an important role in determining its overall level of effectiveness. ⮚ This is true when management is employing total quality management (ensuring that all department in terms of standards quality and etc. is working harmoniously towards the goals; maka abot sa standard na gi set sa company) ⮚ Key elements are shown in the next slide Performance Management: The Process The Appraiser: Alternatives ⮚ The direct supervisor (supervisor needs to see the quality of your work) ⮚ Presumably the supervisor is in the best position to be aware of the employees’ daily performance Problems - when employee is in the field like any sales job or technical support - when supervisor has limited technical knowledge of the employee’s job Solution - Multiple-rater systems (including self-evaluation) - 360-degree feedback - A system in which people receive performance feedback from those on all sides of them in the organization (boss, colleagues, peers, subordinates) Frequency of Appraisals • Determined by convenience for administrative purposes, cultural appropriateness, and relevance • Annual PA – convenient for admin and maintain a level of routine that keeps everyone comfortable • Semi-annual PA for some companies • “As-needed” – have been proposed as an alternative to the traditional annual system. (needed if naay e promote) Measuring Performance Considerations: ⮚ Desired decisions to be made based on outcome: salary adjustment, promotion, transfer, training, and discipline ⮚ Should be based on performance-related criteria (based solely on performance dili kay tungod kaila mo or unsa pa diha) Reward System: consists of all organizational components involved in allocating compensation and benefits to employees in exchange for their contribution to the organization including: ⮚ People ⮚ Processes Purposes - to attract, retain, and motivate qualified employees Roles of compensation structures - to be equitable and consistent - to be a fair reward for the individual’s contribution - to be competitive in the external labor market (dapat mo compete sad ang sweldo na e give para ma motivate to stay pd ang employees) Meanings of rewards ⮚ Surface value: objective meaning or worth of reward ⮚ Symbolic value: subjective and personal meaning or worth of reward (how meaningful is this to me – does this give me the sense that my company values my contributions) Types of Individual Rewards I. Compensation Package - total array of money (wages, salary, commission), incentives, benefits, perquisites, and awards provided by the organization - - II. Base Pay symbolizes an employee’s worth (increases morale) can improve motivation and performance if part of an effectively planned and managed pay system III. Incentive Pay Systems plans in which employees can earn additional compensation in return for certain types of performance (bonus is given if employee does well on their jobs) a. b. c. Choices of measurement methods ⮚ Graphic rating scales, checklists, essays/diaries, behaviorally anchored rating scales, forced-choice systems ⮚ Comparative methods such as ranking, forced distribution, paired comparisons, multiple raters Individual Rewards in Organizations d. e. f. Piecework programs – tie a worker’s earning to number of units produced Gainsharing programs – grant additional earnings to employees or work groups for cost reduction ideas Bonus system – provide managers with lumpsum payments from a special fund based on the financial performance of the organization or unit Long-term compensation – gives managers additional income based on stock price performance, earnings per share or return on equity Merit Pay Plans – base pay raise on employees’ performance Profit-sharing plans – distribute a portion of the firm’s profit to all employees at determined rate Employee stock option plan – set aside stock in the company for employees to purchase at a reduced ⮚ Stock option is a derivative of an underlying asset g. Individual Rewards Indirect Compensation (Employee Benefits) 1. Payment for time not worked: on-the-job free time includes lunch, rest, coffee breaks, and wash up or get-ready time. Off-the-job time not worked includes vacation, sick leave, holidays, and personal days (if mag leave ka naa gihapon kay sweldo madawatan) 2. Social Security contributions: employee contributes half the money paid into the system like SSS and the employee pay the other half (tunga mo ug bayad ani sa company since sss is a government requirement) 3. Unemployment compensation – people who are laid off get a percentage of their wage from an insurance-like program (if ma tangtangan ka ug trabaho, hatagan s aka ug sweldo until maka find ka ug lahi na job) 4. Disability and workers’ compensation benefits – employers contribute funds to help workers who cannot work due to an occupational injury (if na injury ka tungod sa trabaho then gaan ka ug compensation) 5. Life and health insurance programs – most organizations offer insurance at a cost far below what individuals would pay to buy insurance on their own (mga insurance provider na thrid party sa organization if naay masakit ang employee para ma deductionan) Pensions or retirement plans – most organizations offer plans to provide supplementary income to employees after they retire (mga madawat na pension after working over the years) 6. - allows employees to choose the combination of benefits that best suits their needs - increases both employee satisfaction with benefits and administrative costs for the employer Participative Pay Systems - employees are involved in the design and/or administration of their compensation system (employees mismo mo give ug suggestion on their pay system; when employees participate mas makabalo ang employeer sa needs sa employees) Pay Secrecy - employer makes no information available to employees regarding other employees’ salaries, percentage raises, salary ranges and requires employees to not reveal their compensation (not allowed to discuss their salaries) Expatriate Compensation - compensation packages of employees on overseas assignments must be adjusted to account for differences in costs of living and working conditions in working aboard versus their home base - Chapter 5: Individual Performance Motivation and Employee Performance Using Theories of Motivation - no single theory explains motivation—each theory covers only some factors that motivate behavior (walay single theory na maka explain everything from behavior to motivation) - more than one theory or method can be used to enhance performance in an organization (we use diff. theories to understand) - each theory or method must be tied to specific need or process and translated into operational terms that foster enhanced performance (we have to translate it into operational terms in how we can apply it to orgs.) Note: theories will direct to motivation behaviors that could lead to determine the factors (job design, employee participation, flexible work arrangements, goal setting, performance management and org. rewards) – determine if there is enhanced performance Work Design in Organizations Perquisites - special privileges awarded to selected members of an organization, usually top managers - add to the status of their recipients and thus may increase job satisfaction and reduce turnover ex: exclusive use of golf club, travel, vacation home, fine dining, etc. Job Design - how organizations define and structure jobs to have a positive impact on motivation, performance, and job satisfaction (how we define the structure whether the job is easy or not) - poorly designed jobs can impair performance, motivation and job satisfaction Managing Reward System Job Specialization (Fredrick Taylor) - jobs should be scientifically studied, broken down into small component tasks, and then standardized across all workers doing those jobs (usa ka trabaho naay one person mo buhat ana; siya ang expert ana na one job) Linking Performance and Rewards - employee perception of link between pay and performance results in symbolic value of pay Flexible Reward Systems follows Adam Smith’s concept of the division of labor jobs designed for efficiency can become boring and monotonous, resulting in job dissatisfaction Early alternatives to job specialization: ⮚ Job rotation: systematically moving workers from one job to another in an attempt to minimize monotony and boredom (you will learn new skills or knowledge) ⮚ Job Enlargement (horizontal job loading): giving workers more tasks to perform (dungagan imo trabaho ug more tasks for you to be challenged) ⮚ Job Enrichment (vertical job loading): giving workers a greater variety of tasks to perform and more control over how to perform them (given variety of tasks but you are given more control) - Job Characteristics Theory (Hackman and Oldham) Critical psychological states of worker (important for you to experience or achieve this state para ma motivate ka sa imo work) Experienced meaningfulness of the work: the degree to which the individual experiences the job as generally meaningful, valuable and worthwhile (experience of having meaning; you are driven since you know your work will have an impact) Experienced responsibility for work outcomes: the degree to which individuals feel personally accountable and responsible for the results of their work (if tagaan ka ug responsibility sa results sa imo work, mas taas imo sense of responsibility if kahibaw ka na ikaw ang accountable) Knowledge of results– the degree to which individuals continuously understand how effectively they are performing the job (having a feedback) Motivational properties of tasks 1. Skill variety—the degree to which job require variety of activities that involve different skills and talents (able to use different skills that you have) 2. Task identity– the degree to which job requires the completion of a whole and an identifiable piece of work; that is, the extent to which job has a beginning and an end with a tangible outcome (makita nimo ang endpoint sa project; asa padulong imong trabaho) 3. Task significance— the degree to which a job affects the lives or work of other people, both in the immediate organization and in the external environment (unsa ang gamit sa ginabuhat nimo karon; how this job would impact other people) 4. Autonomy—the degree to which jobs allow the individual substantial freedom, independence, and discretion to schedule the work and determine the procedures for carrying it out (you can have the freedom to choose what you want to do) 5. Feedback - the degree to which the job activities give the individual direct and clear information about the effectiveness of his or her performance (feedback allows improvements) Job Characteristics Theory: Research Findings Research generally supports the theory, however: ⮚ Performance seldom found to correlate with job characteristics (ok ang theory but dili makitan ang correlation sa job characteristic and performance) ⮚ Measures used to test theory are not always valid and reliable (pag assess sa theory kay ang tools dili always valid) ⮚ Role of individual differences is not supported (we have diff. motivational source; malimtan jd ang ato differences) ⮚ Theory is lacking in specific guidelines for implementation (theory only wala nag hatag guideline on what to do) Employee Involvement and Motivation Extending job design to include: ⮚ Participation: giving employees a voice in making decisions about their own work (if allow to participate you recognize their efforts in suggesting) ⮚ Empowerment: enabling workers to set their own work goals, make decisions, and solve problems within their sphere of responsibility and authority (when you empower a person you should also give them trust to solve their problems) Early Perspectives on Employee Involvement In the beginning: ⮚ Employee satisfaction is a result of their participation in decision-making (Human Relations movement1930s to 1950s) (ma satisfy ang employee if they participate in decision making since they will have a voice or contribution) ⮚ Employee participation merely as a way to increase satisfaction not as a source of potentially valuable input (walay value ang gi suggest kay kutob ra sa paper; no implementation) Recently: ⮚ Employees are valued human resources who can contribute to organizational effectiveness (mas effective na kay they can voice out their suggestions and e take into consideration na) ⮚ Their participation is valued to contribute to organizational effectiveness Areas of Employee Involvement ⮚ Personal job-related decisions– at Chaparral, employees can recommend a piece of machinery costing less than half of the budget amount. Documents are ready any time should there be personnel who wants to check purchases etc. (employees can recommend a piece of machinery; they can do research and canvasing; mas naay involvement since sila man maka chance to recommend kung unsa ila e use na machinery) ⮚ Administrative matters (e.g., work schedules)– if jobs are relatively independent of one another, employees might decide when to change shifts, take breaks, go to lunch and so forth. (sila makabuot sa ila shifts) ⮚ Product quality decisions– involvement of this type has become the hallmark of successful Japanese and other international firms and many US companies. (they can decide what products they will use that has good quality; quality over cost) Techniques and Issues in Employee Involvement ⮚ Empowerment through work teams (quality circles)– identify and propose solutions to problems related to quality (identify problems in the company and prepare solutions) ⮚ Work teams are empowered to plan, organize, direct, and control their own work (they plan out and direct) ⮚ Boss play the role of a coach rather than a traditional “boss” Decentralization of decision - - Making and increased delegation– the basic pattern of the organization is to eliminate layers from its hierarchy, thereby becoming more decentralized (decentralization kay naay chance tanan to participate) Power, authority and responsibility are delegated as far down the organization as possible, so control of work is squarely in the hands of those who actually do it. (information is disseminated and power also) Example: deciding whom to choose during recruitment (maka pila sila if kinsay ma part sa team) Requirements for Effective Empowerment Organization must be: Sincere in its efforts to spread power and autonomy to lower levels of the organization (if you want to empower employees dapat sincere dili lng kutob sturya) Committed to maintaining participation and empowerment (give commitment dili,lng sa sugod hantod jd sa mahuman) Systematic and patient in its efforts to empower workers (step by step procedures) Prepared to increase its commitment to training (ready to commit in trainings) Flexible Work Arrangements Variable Work Schedules ✔ Compressed work schedule: employees work a full forty-hour week in fewer than the traditional five days (instead of 5 days pwede ma shorten ang work sched but ma extend iya hours of working) ✔ Flexible work schedules (flextime): employees gain more personal control over the hours they work each day (sila magbuot kanusa sila mag trabaho as long ma complete ln gang 8hrs) Job Sharing ✔ Part-time employees share one full-time job (lahi sa morning then lahi sd sa hapon but one full time na) ✔ Desirable for people who only want to work part time ✔ Advantage on the part of the organization because they don’t need to pay for the benefits How It Works: 1.Decide how to divide up the work a. slices the job—also known as job split b. conceptualize different parts then divide them 2. Choose the right partner whom the job holder can easily communicate - job sharers have complementary skills, experience, and perspectives (kanang imo makasabot; dapat naa mo complementary skills) 3. Communicate properly - face to face communication should be given priority when the job holder turns over the tasks (dapat mag communicate mo kay para makabalo mo sa unsay nanga human or kulang ninyo) 4. Secure supervisors’ support - ask the boss for regular feedback - support of the boss on job sharing design is needed (dapat kabalo inyo boss sa inyo procedures or set up) Telecommuting - Employees spend part of their time working off-site - Use of email, web interface or other technology - Teaching ESL online is an example (don’t have to go to offices; nindot kay added flexibility) - Gives added flexibility to the worker Benefits • Independence • Autonomy • 5-second commute time (walay time masayang) • More time with kids/family Benefits for the Organization 1. Reduce absenteeism and turnover since employee will need to take less formal time off 2. They can save on facilities such as parking spaces, power and other resources Drawback 1. Some feel isolated; miss social interaction at work 2. Other may also lack self-control and discipline to start working (sometimes hard to discipline ourselves) 3. Managers may encounter coordination difficulties in scheduling meeting and other activities that require face-to-face interaction Telecommuting’s Benefits to Organizations ⮚ Reduced absenteeism and turnover ⮚ Reduction in indirect expenses Telecommuting’s Downside Considerations ⮚ ⮚ ⮚ ⮚ Employees miss the workplace social interaction Employees lack self-control/discipline Difficulties arise in coordinating in-face meetings Workplace safety requirements (basin makitan confidential na files) ⮚ Information security (cybercrime)
