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Industrial/Organizational

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1
Industrial/Organizational Psychology
- peer ratings are fairly reliable only when the
peers who make the ratings are similar to and well
Chapter 7: Evaluating Employee Performance
acquainted with the employees being rated.

Step 1
Subordinates feedback (also called upward
Employee Performance
feedback)- is an important component of 360-

degree feedback.
The first step in the performance appraisal process
is to determine the reasons your organization
wants to evaluate employee performance.

Forced-choice
rating
scale-
- can provide a very different view about a
supervisor’s behavior.
a performance
appraisal method
- can be difficult to obtain because employees
fear a backlash if they unfavorably rate their supervisor.

- is excellent for determining compensation but
Customers- customers provide feedback on
terrible for training purposes
employee performance by filing complaints or
Providing Employee Training and Feedback
complimenting a manager about one of her

employees.
the most important use of performance evaluation

is to improve employee performance by providing
Self-Appraisal-
feedback about what employees are doing right
only
a
small
- Employee self-appraisals tend to suffer from
Performance appraisal review- is an excellent
leniency and correlate only moderately with actual
time to meet with employees to discuss their
performance
strengths and weaknesses.
management ratings.
Making Promotion Decisions

by
percentage of organizations
and wrong.

used
and
poorly
with
subordinate
and
- Self-appraisals of performance appear to be
Peter Principle- Promoting the best or most senior
most accurate when the self-appraisal will not be used
employee
for
- the promotion of employees until they reach
such
administrative
purposes
as
raises
or
promotions.
their highest level of incompetence
Step 4
Step 2
Accomplish Your Goals
Limitations




The next step in the performance appraisal
The second step in the performance appraisal
process is to select the performance criteria and
process is to identify the environmental and
appraisal methods that will best accomplish your
cultural factors that could affect the system.
goals for the system.
In an environment in which there is no money

Criteria are ways of describing employee success.
available for merit pay, developing a numerically

Developing the actual performance appraisal
complex system will become frustrating, and the
instrument, two important decisions must be made:
results of the evaluation may not be taken
the focus of the performance appraisal dimensions
seriously
and whether to use rankings or ratings.
In an environment in which employees are very
Decision 1
cohesive, the use of peer ratings might reduce the

cohesiveness.
Appraisal Dimensions
Trait-Focused Performance Dimensions
- A trait-focused system concentrates on such
employee attributes as dependability, honesty, and
Step 3 : Determine Who Will Evaluate Performance

courtesy.
The buzzwords for using multiple sources to
-
trait-focused
performance
appraisal
appraise performance are 360-degree feedback
instruments are not a good idea because they provide
and multiple-source feedback.
poor feedback and thus will not result in employee

Supervisors- the most common type of
development and growth.
performance appraisal is the supervisor rating.

- supervisors may not see every minute of an
employee’s behavior, they do see the end result.

Peers- often see the actual behavior
- Peer ratings usually come from employees
who work directly with an employee.
Competency-Focused
Performance
Dimensions
- competence-focused dimensions concentrate
on the employee’s knowledge, skills, and abilities.
- include writing skills, oral presentation skills,
and driving skills
2
- The advantage to organizing dimensions by

Employee Comparisons
competencies is that it is easy to provide feedback and
- To reduce leniency, employees can be
suggest the steps necessary to correct deficiencies.
compared with one another instead of being rated

individually on a scale.
Task-Focused Performance Dimensions
 Rank order- The easiest and most common of
- Task-focused dimensions are organized by
the similarity of tasks that are performed.
these methods. In this approach, employees
- The advantage of this approach is that
are
ranked
in
order
by
their
judged
because supervisors are concentrating on tasks that
performance for each relevant dimension.
occur together and can thus visualize an employee’s
Rank orders are easily used when there are
performance, it is often easier to evaluate performance
only a few employees to rank, but they
than with the other dimensions.
become difficult to use with larger numbers.
- The disadvantage is that it is more difficult to
 Paired comparisons- This method involves
offer suggestions for how to correct the deficiency if an
comparing each possible pair of employees
employee scores low on a dimension.
and choosing which one of each pair is the

better employee.
Goal-Focused Performance Dimensions
- The fourth type of performance dimension is
 Forced distribution- With this method, a
to organize the appraisal on the basis of goals to be
predetermined percentage of employees are
accomplished by the employee.
placed in each of the five categories.
- Also called “rank and yank,”
- The advantage of a goal-focused approach is
that it makes it easier for an employee to understand
- To use the method, one must assume that
why certain behaviors are expected.
employee performance is normally distributed, that is,

that there are certain percentages of employees who
Contextual Performance
- the effort an employee makes to get along
with peers, improve the organization, and perform
are poor, average, and excellent.

The greatest problem with all of the employee-
evaluating employee performance 247 tasks that are
comparison methods is that they do not provide
needed but are not necessarily an official part of the
information about how well an employee is actually
employee’s job description.
doing.
- Contextual performance is important because
not only are these pro-social organizational behaviors
Objective Measures

A second way to evaluate performance is to use
important to the success of an organization, but they
what are commonly called objective, or hard,
also tend to be similar across jobs, whereas the
criteria. Common types of objective measures
dimensions involved in task performance differ across
include
jobs
attendance, and safety.
Decision 2
 Quantity of Work- Evaluation of a worker’s
- Once the type of dimension has been
determined,
the
next
decision
is
whether
the
work,
quality
of
work,
by simply counting the number of relevant job
behaviors that take place.
 Quality of Work- Another method to evaluate
important than others.
Weighting
of
performance in terms of quantity is obtained
dimensions should be weighted so that some are more
-
quantity
dimensions
makes
good
performance is by measuring the quality of the
philosophical sense, as some dimensions might be
work that is done.
more important to an organization than others.
- Quality is usually measured in terms of errors,
Decision 3
which are defined as deviations from a standard. Thus,
Objective Measures, or Ratings
to obtain a measure of quality, there must be a
- Once the types of dimensions have been
standard against which to compare an employee’s work.
considered, the next decision is whether to evaluate
 Attendance- A common method for objectively
performance by comparing employees with one another
measuring one aspect of an employee’s
(ranking),
performance is by looking at attendance.
using
objective
measures
such
as
attendance and number of units sold, or having
- Attendance can be separated into three
supervisors rate how well the employee has performed
distinct criteria: absenteeism, tardiness, and tenure.
on each of the dimensions.
Both
absenteeism
and
tardiness
have
obvious
implications for the performance appraisal process.The
3
weight that each has in the overall evaluation of the
comparing the employee’s level of performance
employee largely depends on the nature of the job.
with that of other employees.
- Tenure as a criterion is used mostly for
- It is important to note that when such scale
research purposes when evaluating the success of
anchors as “below average,” “ average,” and “above
selection decisions.
average” are used, the evaluation involves rating
 Safety- Another method used to evaluate the
success of an employee is safety.
employee performance in comparison with other
employees.
- Obviously, employees who follow safety rules

Frequency of Desired Behaviors- Behaviors can
and who have no occupational accidents do not cost an
be rated based on the frequency with which they
organization as much money as those who break rules,
occur.
equipment, and possibly their own bodies.
- As part of our performance appraisal system,
- As with tenure, safety is usually used for
supervisors
are
asked
to
decide
whether
their
research purposes, but it can also be used for
employees “always,” “almost always,” “often,” “seldom,”
employment
or “never” follow the rules.
decisions
such
as
promotions
and

bonuses.
Extent to Which Organizational Expectations
Ratings of Performance
Are Met- Perhaps the best approach is to rate

The most commonly used option in evaluating
employees on the extent to which their behavior
performance is to have supervisors rate how well
meets the expectations of the evaluating employee
the employee performed on each dimension.
performance 255 organization.
Though there are many variations of how these
- Such an approach allows for high levels of
rating scales can be created, the two most
feedback and can be applied to most types of
common are the graphic rating scale and the
employee behavior.
behavioral checklist.
 Graphic Rating Scale- most common rating
Evaluation of Performance Appraisal Methods
scale.
- It is important to understand that although the
-
various performance appraisal methods may yield
words such as “excellent” and “poor” anchoring the
results that are technically similar, the way in which the
ends of the scale.
performance appraisal system is administered can
- The obvious advantage of graphic rating
affect employee trust and satisfaction.
scales is their ease of construction and use, but they
have been criticized because of their susceptibility to
Step 5 : Train Raters
such rating errors as halo and leniency.

Although
training
supervisors
to
evaluate
 Behavioral Checklists- behavioral checklists
performance is essential to a sound and legal
consist of a list of behaviors, expectations, or
performance appraisal system, few organizations
results for each dimension.
spend the time and resources necessary to do this
- This list is used to force the supervisor to
concentrate on the relevant behaviors that fall under a
properly.

dimension.
The effectiveness of rater training also is a function
of training format.
- Behavioral checklists are constructed by

Raters who receive frame-of-reference training
taking the task statements from a detailed job
make fewer rating errors and recall more training
description
information than do untrained raters or raters
and
converting
them
into
behavioral
performance statements representing the level at which
receiving
the behavior is expected to be performed.
behaviors.
- A problem with result-focused statements is

information
about
only
job-related
Frame-of-reference training provides raters with
that an employee can do everything asked of her by an
job-related information, practice in rating, and
organization and still not get the desired results due to
examples of ratings made by experts as well as the
factors outside of her control. These factors are
rationale behind those expert ratings.
referred to as contamination.

- The goal of frame-of reference training is to
Comparison with Other Employees- Supervisors
communicate the organization’s definition of effective
can
performance and to then get raters to consider only
rate
performance
on
a
dimension
by
4
relevant
employee
behaviors
when
 Behavior consistent with the supervisor’s
making
performance evaluations.
opinion-
Once we form an opinion of
someone, we tend to look for behaviors that
Step 6


e
confirm that opinion. If a supervisor likes an
The next step in the performance appraisal
employee, she
process is for supervisors to observe employee
behaviors consistent with that opinion. The
behavior and document critical incidents as they
opposite would be true for a supervisor who
occur.
disliked an employee. Once you get on
Critical incidents are examples of excellent and
someone’s bad side, it is hard to get off of it.

poor employee performance.
- Such documentation is usually written in a
will
probably recall
only
Third, documentation provides examples to use
when
reviewing
performance
ratings
with
critical incident log—formal accounts of excellent and
employees.Instead of telling an employee that she
poor employee performance that were observed by the
is constantly getting into arguments with customers,
supervisor.
a supervisor can use documented critical incidents
- Critical incidents should be communicated to
to show the employee the specific incidents and
the employee at the time they occur.
behaviors that are problematic.

Documentation is important for four reasons.

First, documentation forces a supervisor to focus
defend against legal actions taken against it by an
on employee behaviors rather than traits and
employee who was terminated or denied a raise or
provides
promotion.
behavioral
examples
to
use

when
reviewing performance ratings with employees.


Second, documentation helps supervisors recall
behaviors when they are evaluating performance.
Fourth, documentation helps
an
organization
Without documentation, employers will seldom win
lawsuits filed against them.

To use critical incidents to document performance,
Without documentation, instead of recalling all of
a supervisor maintains a log of all the critical
an employee’s behavior or at least a representative
behaviors she observes her employees performing.
sample of behavior, supervisors tend to recall only

Employee Performance Record- formal method
a small percentage of an employee’s actual
for
behavior. Supervisors tend to remember the
performance. This method consists of a two-color
following:
form. Half of the sheet is used to record examples
 First
impressions-
supervisors
recall
behaviors that are consistent with their first
using
critical
incidents
in
evaluating
of good behaviors, and the other half to record
examples of poor behaviors.
impression of an employee, even though
those first behaviors may not have been
representative
of
the
employee’s
typical
performance.
Step 7 : Evaluate Performance
Obtaining and Reviewing Objective Data
When it is time to appraise an employee’s
- Being aware of first impressions is important
performance, a supervisor should first obtain and
because performance can be dynamic, meaning that a
review the objective data relevant to the employee’s
person who is the top performer one year may not be
behavior.These data, when combined with critical-
the top performer during another year.
incident logs, provide a solid basis on which to rate an
 Recent behaviors- supervisors tend to recall
the most recent behavior that occurred during
the evaluation period.
employee.
Reading Critical-Incident Logs
After obtaining objective data, the supervisor
 Unusual or extreme behaviors- Supervisors
should go back and read all of the critical incidents
tend to remember unusual behaviors more
written for an employee. Reading these incidents
than they remember common behaviors. For
should reduce errors of primacy, recency, and attention
example, if an average-performing police
to unusual information.
officer captures an important criminal, the
Completing the Rating Form
officer’s performance evaluations are likely to
Once critical-incident logs have been read and
be inappropriately high. Likewise, a good
objective data reviewed, the supervisor is ready to
officer who makes a terrible mistake is likely to
assign performance appraisal ratings. While making
receive inappropriately low ratings.
these ratings, the supervisor must be careful not to
5
make common rating errors involving distribution, halo,
proximity of the dimension rather than an overall
proximity, and contrast.
impression.


Distribution Errors- A common type of error in
Contrast Errors- The performance rating one
evaluating employee performance involves the
person
distribution of ratings on a rating scale.
performance of a previously evaluated person.
- are made when a rater uses only one part of a
 Leniency error- One kind of distribution error.
- certain raters tend to rate every employee at
the upper end of the scale regardless of the actual
can
be
influenced
by
the
- compare and contrast

rating scale.
receives
Low Reliability across Raters
There are three major reasons for this lack of
reliability.

First, raters often commit the rating errors
performance of the employee. For example, on our five-
previously discussed (e.g., halo, leniency). Thus, if
point scale, the supervisor rates eve
4 or 5.
one rater engages in halo error and another in
- Leniency error can in part be explained by the
contrast error, it is not surprising that their ratings
discomfort felt by supervisors about giving low ratings.
 Central tendency error- which results in a
of the same employee are different.

supervisor rating every employee in the middle
of the scale. For example, in our five-point
and ideas about the ideal employee.

scale, the supervisor rates everyone a 3.
 Strictness error- rates every employee at the
Third, two different raters may actually see very
different behaviors by the same employee.

One way to reduce the number of rating errors and
low end of the scale. For example, on our five-
increase reliability is to train the people who will be
point scale, our supervisor rates everyone a 1
making the performance evaluations.
or 2.

Second, raters often have very different standards
Sampling Problems
Halo Errors- A halo error occurs when a rater
 Recency Effect- recent behaviors are given
allows either a single attribute or an overall
more weight in the performance evaluation
impression of an individual to affect the ratings that
than behaviors that occurred during the first
she makes on each relevant job dimension.
few months of the evaluation period.
- Halo effects occur especially when the rater
 Infrequent Observation- another problem that
has little knowledge of the job and is less familiar with
affects performance appraisals is that many
the person being rated.
managers or supervisors do not have the
- For example, a teacher might think that a
opportunity
student is highly creative. Because of that, the teacher
observe
a
representative
sample of employee behavior.
might rate the student as being intelligent and
industrious when, in fact, the student’s grades are
to
- occurs for two reasons.

First, managers are often so busy with their own
below average.
work that they have no time to “walk the floor” and

observe their employees’ behavior.
Proximity Errors- Proximity errors occur when a
rating made on one dimension affects the rating

Second, employees often act differently around a
made on the dimension that immediately follows it
supervisor than around other workers, which is the
on the rating scale.
second reason managers usually do not make
- For example, a supervisor gives an employee
accurate observations.
Cognitive Processing of Observed Behavior
second dimension is physically located on the rating

Observation of Behavior- raters recall those
form next to the first, there is a tendency to provide the
behaviors that are consistent with their general
same rating on both the first and second dimensions.
impression of an employee and the greater the
- The difference between this error and halo
time interval between the actual behavior and the
error is in the cause of the error and the number of
performance rating, the greater the probability that
dimensions affected.
rating errors will occur.
- With halo error, all dimensions are affected by

Emotional State- The amount of stress under
an overall impression of the employee. With proximity
which a supervisor operates also affects her
error, only the dimensions physically located nearest a
performance ratings.
particular dimension on the rating scale are affected;
the reason for the effect, in fact, is the close physical
6
- raters who were placed in a stressful situation

produced ratings with more errors than did raters who
Performance Appraisal Scores
Low ratings on a particular dimension for most
were not under stress.
employees may indicate that additional training in that

Bias- Raters who like the employees being rated
dimension is needed. Conversely, if most employees
may be more lenient and less accurate in their
score high on a particular dimension, relatively little
ratings than would raters who neither like nor
training time is needed.
dislike their employees.

Chapter 8 : Designing and Evaluating Training
Survey
Another
common
approach
to
determine
Systems
training needs is to design and administer a survey that
Determining Training Needs
asks employees what knowledge and skills they believe

should be included in future training.
Conducting a needs analysis is the first step in
developing an employee training system.

Surveys offer several advantages:
The purpose of needs analysis is to determine the

types of training, if any, that are needed in an
organization, as well as the extent to which training


First, they eliminate the problems of performance
rating errors.

Second, employees often know their own strengths
is a practical means of achieving an organization’s
and weaknesses best. Thus, to determine what
goals.
employees need, ask them.
There are three types of needs analysis are

Finally, training needs can be determined with
typically conducted: organizational analysis, task
surveys even when the organization has not
analysis, and person analysis.
previously made an effort to design an effective
Organizational
Analysis-
The
purpose
of
performance appraisal system or adequate job
organizational analysis is to determine those
descriptions.
organizational factors that either facilitate or inhibit
training effectiveness.
As with any type of survey, training needs
surveys can be conducted in many ways. The most
- A properly conducted organizational analysis
common
method
is
a
questionnaire
that
asks
will focus on the goals the organization wants to
employees to list the areas in which they would like
achieve, the extent to which training will help achieve
further or future training. Perhaps a better method is to
those goals, the organization’s ability to conduct
provide a list of job-related tasks and components of
training (e.g., finances, physical space, time), and the
knowledge and have employees rate the need for
extent to which employees are willing and able to be
training on each.
trained (e.g., ability, commitment, motivation, stress).

Interviews
- An organizational analysis should also include
Interviews are not used as extensively as
a survey of employee readiness for training.
surveys, but they can yield even more in-depth

answers to questions about training needs.
Task Analysis- The purpose of a task analysis is
to use the job analysis methods to identify the
- The main advantage of interviews is that
tasks performed by each employee, the conditions
employee feelings and attitudes are revealed more
under which these tasks are performed, and the
clearly than with the survey approach.
competencies (knowledge, skills, abilities) needed

Skill and Knowledge Tests
to perform the tasks under the identified conditions.
The fourth way to determine training needs is
- The most common job analysis methods used
with a skill test or a knowledge test. The greatest
for this purpose include interviews, observations, and
problem with using testing as a method to determine
task inventories.
training needs is that relatively few tests are available

Person Analysis- is based on the recognition that
for this purpose. An organization that wants to use this
not every employee needs further training for every
method will probably have to construct its own tests,
task performed.
and proper test construction is time-consuming and
- To determine the individual training needs for
each employee, person analysis uses performance
appraisal
scores,
surveys,
interviews,
knowledge tests, and/or critical incidents.
skill
and
expensive.

Critical Incidents
To use this technique for needs assessment,
the critical incidents are sorted into dimensions and
separated into examples of good and poor performance.
Dimensions with many examples of poor performance
7
 Golem
are considered to be areas in which many employees
effect-
are performing poorly and in which additional training is
expectations
indicated.
decrease
of
in
occurs
an
that
when
individual
negative
cause
individual’s
a
actual
performance.

Chapter 9 : Employee Motivation
 Intrinsic Motivation- will seek to perform well
Is an Employee Predisposed to Being Motivated?

Self-Esteem-
Intrinsic Motivation
is the extent to which a person
because they either enjoy performing the
views himself as valuable and worthy.
actual tasks or enjoy the challenge of
- employees high in self-esteem are more
successfully completing the task.
- don’t need external rewards such as pay or
motivated and will perform better than employees low in
self-esteem.

praise.
 Extrinsic motivation- , they don’t particularly
Consistency theory- there is a positive correlation
between
self-esteem
and
performance.
enjoy the tasks but are motivated to perform
Consistency theory takes the relationship between
well to receive some type of reward or to avoid
self-esteem and motivation one step further by
negative consequences.
stating that employees with high self-esteem
- can be measured by the Work Preference
actually desire to perform at high levels and
Inventory (WPI). The WPI yields scores on two
employees with low self-esteem desire to perform
dimensions
at low levels.In other words, employees try to
challenge) and two dimensions of extrinsic motivation
perform at levels consistent with their self-esteem
(compensation, outward orientation).
level.

Three types of self-esteem
feeling about himself.

self-esteem
intrinsic
motivation
(enjoyment,
Needs for Achievement and Power
A theory developed by McClelland (1961)
 Chronic self-esteem is a person’s overall
 Situational
of
suggests that employees differ in the extent to which
they are motivated by the need for achievement,
(also called self-
affiliation, and power.
efficacy) is a person’s feeling about himself in
 Need for Achievement- are motivated by jobs
a particular situation such as operating a
that are challenging and over which they have
machine or talking to other people.
some control, whereas employees who have
 Socially influenced self-esteem is how a
minimal achievement needs are more satisfied
person feels about himself on the basis of the
when jobs involve little challenge and have a
expectations of others.
high probability of success.
 Need for Affiliation- are motivated by jobs in
Self-Esteem Workshops
To increase self-esteem, employees can attend
which they can work with and help other
workshops in which they are given insights into their
people.
strengths. It is thought that these insights raise self-
 Need for Power- motivated by a desire to
esteem by showing employees that they have several
influence others rather than simply to be
strengths and are good people.
successful.

Have the Employee’s Values and Expectations
Experience with Success
With the experience-with-success approach, an
employee is given a task so easy that he will almost
Been Met?

certainly succeed.
A discrepancy between what an employee
 Self-fulfilling prophecy - which states that an
individual will perform as well or as poorly as
expected a job to be like and the reality of the job can
affect motivation and satisfaction.
 Realistic Job Preview (RJP)- A method of
he expects to perform.
 Galatea effect- relationship between self-
recruitment in which job applicants are told
expectations and performance.

both the positive and the negative aspects of a
Supervisor Behavior
job.
 Pygmalion Effect- high expectations lead to
improved performance in a given area
low expectations lead to worse.
Job Expectations
and

Job Characteristics
 Job
Characteristics
Theory-
employees
desire jobs that are meaningful, provide them
with
the
opportunity
to
be
personally
8
responsible for the outcome of their work


Two-Factor Theory- can refer to two different
(autonomy), and provide them with feedback
theories: Hygiene factors and Motivators.
of the results of their efforts.
 Hygiene
Needs, Values, and Wants
factors-
are
those
job-related
elements that result from but do not involve
A discrepancy between an employee’s needs,
the job itself.Similarly, making new friends
values, and wants, and what a job offers can also lead
may result from going to work, but it is also not
to low levels of motivation and satisfaction.
directly involved with the tasks and duties of
-Three theories focus on employees’ needs and
the job.
 Motivators- are job elements that do concern
values: Maslow’s needs hierarchy, ERG theory, and
two-factor theory.

actual
Maslow’s Needs Hierarchy
tasks
and
duties.
Examples
of
motivators would be the level of responsibility,
- Maslow believed that employees would be
the amount of job control, and the interest that
motivated by and satisfied with their jobs at any given
the work holds for the employee.
point in time if certain needs were met.
- five major types of needs and that these
needs are hierarchical—that is, lower-level needs must
be satisfied before an individual will be concerned with
the next level of needs.
 Basic Biological Needs- individual first seeks
to satisfy basic biological needs for food, air,
water, and shelter.
- an individual who does not have a job, is
homeless, and is on the verge of starvation will be

Self-Regulation
Theory-
is
that
employees
monitor their own progress toward attaining goals
satisfied with any job as long as it provides for these
basic needs.People at this level might reply, “I can’t
and then make the necessary adjustments; that is,
complain, it pays the bills.”
they self-regulate.
 Safety Needs- individual earn enough money

levels of job satisfaction and motivation are related
to ensure their family’s survival, but once their
to how fairly we believe we are treated in
family has food and shelter, they will remain
comparison with others.
satisfied with their jobs only if the workplace is
- If we believe we are treated unfairly, we
safe.
- Safety needs have been expanded to include
psychological as well as physical safety. Psychological
safety—often referred to as job security—can certainly
attempt to change our beliefs or behaviors until the
situation appears to be fair. Three components are
involved in this perception of fairness: inputs, outputs,
and input/output ratio.
affect job motivation.
 Inputs- are those personal elements that we
 Social Needs- involve working with others,
put into our jobs. Obvious elements are time,
developing friendships, and feeling needed.
effort, education, and experience.
 Ego Needs- These are needs for recognition
 Outputs- are those elements that we receive
and success, and an organization can help to
satisfy
them
through
praise,
from our jobs. A list of obvious outputs
awards,
includes
promotions, salary increases, publicity, and
 Self-Actualization
Needs-
An
benefits,
challenge,
and
 Input/output ratio- dividing output value by
employee
input value.
striving for self-actualization wants to reach
- employees then compute the input/output
her potential in every task.
ERG Theory- needs theory that has only three
levels which are existence, relatedness, and
growth.
- the major difference between Maslow’s theory
and ERG theory is that Aldefer suggested that a person
can skip levels.
pay,
responsibility.
many other ways.

Equity Theory- is based on the premise that our
ratios for other employees and for previous work
experiences and compare them with their own.

Expectancy
Theory-
of
motivation
or
the
expectancy theory is the belief that an individual
will choose their behaviors based on what they
believe will lead to the most beneficial outcome.
9
- This theory has three components which are
and effort that she has already put into it or the
Expectancy (E), Instrumentality (I) and Valence (V).
difficulty she would have in finding another job.
 Expectancy (E): The perceived relationship
 Normative commitment- is the extent to which
between the amount of effort an employee
an
puts in and the resulting outcome.
organization and, as a result of this obligation,
- In terms of expectancy, if an employee
employee
feels
obligated
to
the
must remain with the organization.
believes that no matter how hard he works he will never
- A good example of normative commitment
reach the necessary level of performance, then his
would be an employee who was given her first job by
motivation will probably be low.
an organization, was mentored by her manager, and
 Instrumentality (I): The extent to which the
was trained at great cost to the organization. The
outcome of a worker’s performance, if noticed,
employee may feel that she is ethically obligated to
results in a particular consequence.
remain with the organization because of its extensive
- For instrumentality, the employee will be
motivated only if his behavior results in some specific
investment in her.

Individual difference theory- postulates that
consequence. That is, if the employee works extra
some variability in job satisfaction is due to an
hours, he expects to be rewarded, or if he is
individual’s personal tendency across situations to
inexcusably absent from work, he expects to be
enjoy what she does.

punished.
 Valence (V): The extent to which an employee
Social learning theory- postulates that employees
observe the levels of motivation and satisfaction of
values a particular consequence.
other employees and then model those levels.
- For valence, if an employee is rewarded, the
reward must be something he values. If good
Chapter 11: Organizational Communication
performance is rewarded by an award, then the
Types of Organizational Communication
employee will be motivated only if he values awards.

Upward Communication- is communication of
subordinates to superiors or of employees to
Chapter
10:
Employee
Satisfaction
and
managers.
Commitment
- in ideal upward communication, employees
Why Should We Care about Employee Attitudes?
speak directly to management in an environment with

an “open door” policy.
Affective-cognitive consistency- For employees
who have strong, consistent beliefs about their
 Direct upward communication also may not
level of job satisfaction (called affective-cognitive
be workable because employees often feel
consistency),
job
threatened by managers and may not be
satisfaction and performance is much stronger
willing to openly communicate bad news or
than it is for employees whose job satisfaction
complaints.
the
relationship
between
 Serial
attitudes are not so well developed.

communication-
To
minimize
the
What Causes Employees to Be Satisfied with
number of different people communicating
and Committed to Their Jobs?
with the top executive.
Three
motivational
facets
to
organizational
- With serial communication, the message is
commitment
relayed from an employee to her supervisor, who relays

Affective commitment- is the extent to which an
it to her supervisor, who, in turn, relays it to her
employee wants to remain with the organization,
supervisor, and so on until the message reaches the
cares about the organization, and is willing to exert
top.
effort on its behalf.
 MUM
- For example, an employee of the Red Cross
effect-
(minimize
unpleasant
second
drawback
to
that
news
is
bad
messages)
serial
might like her coworkers and her boss, share the
communication
and
altruistic goals of the organization, and realize that her
complaints are seldom relayed, in part due to
efforts will result in better organizational performance.
the stress associated with delivering bad news.
 Continuance commitment- is the extent to
- effect negatively affects the organization by
which an employee believes she must remain
keeping important information from reaching the upper
with the organization due to the time, expense,
levels.
10
 Communication
channels-
Serial
communication’s third drawback.
It is less
effective the farther away two people are from
bulletin boards have the advantage of low cost and
wide exposure to both employees and visitors.

Policy Manuals- is the place for posting important
one another. That is, a supervisor is more
changes in policy or procedure. This manual
likely to pass along a message to another
contains all the rules under which employees must
supervisor if the two are in close physical
operate.
proximity.
 Attitude
- most organizations have two types of
Surveys-
annually
by
are
an
usually conducted
outside
consultant
who
company manual:

administers a questionnaire asking employees
containing all of the rules and policies under which
to rate their opinions on such factors as
the organization operates.
satisfaction with pay, working conditions, and

supervisors.
complaints
or
Employee
handbook- is much shorter and
contains only the most essential policies and rules,
- . Employees are also given the opportunity to
list
Policy manual- is very specific and lengthy,
suggestions
that
they
as well as general summaries of less important
want
management to read. The consultant then tabulates the
rules.

responses and reports the findings to management.
Newsletters- Newsletters are good sources of
information for celebrating employee successes,
 Focus Groups and Exit Interviews
providing feedback on how well the organization is
- A second method of upward communication is
doing, introducing a new employee, and providing
to hold focus groups, in which an outside consultant
meets with groups of current employees to get their
reminders about organizational changes.

opinions and suggestions. This information is then
Intranets-
organization-wide
versions
of
the
Internet.
passed on to management.
- One of the most useful aspects of this intranet
 Suggestion Boxes
is the speed at which the company can survey
-
A
third
method
for facilitating
upward
employees about new ideas. Other advantages include
communication is the use suggestion or complaints
employee self-
boxes. Theoretically, these two boxes should be the
support, and reduced paper, printing, and postage
same, but a box asking for suggestions is not as likely
costs.
to get complaints as a box specifically labeled

complaints and vice versa.
-hour
Business Communication- is the transmission of
business-related information among employees,
 Third-Party Facilitators
management,
The use of a third party such as a liaison or an
communication
and
customers.
methods
Business
include
memos,
ombudsperson is another method that can increase
telephone calls, and email and voice mail.
upward communication. Both are responsible for taking
 Memos - most common methods of business
employee complaints and suggestions and personally
communication.
working with management to find solutions.

- have the advantage of providing detailed
Downward Communication- is that of superior to
information to a large number of people in a short
subordinate
period of time.
or
management
to
employees.
 Telephone Calls- connection over a telephone
( internal Communication)
- is considered a key method not only of
network between the called party and the
keeping employees informed but of communicating vital
calling party.
information needed by employees to perform their jobs.
 Email and Voice Mail- used primarily to
Such communication can be accomplished in many
exchange general and/or timely information
ways,
and ask questions; they are not meant as
including
bulletin
boards,
policy manuals,
newsletters, and intranets.

Bulletin
Boards-
substitutes for important conversation.
Their
main
use
is
to
- The advantages to email and voice mail
communicate non- work–related opportunities such
include a reduction in the use and filing of paper and
as scholarships, optional meetings, and items for
time
sale.
communicating a short message by phone.
- Important information is seldom seen
because the bulletin board is not the appropriate
place to post a change of policy or procedure. Still,
saved
by
avoiding
“small
talk”
when
11
 Business Meetings
 Office
Design-

To
facilitate
employee
of the information but seldom passed it on
communication, 70% of organizations have
to other employees.
adopted what is formally called an “open” or
- grapevine contains two types of information: gossip
“landscaped” office design, and informally
and rumor.
called a “cube farm”

- The idea behind this design is that employees

walls.
the
message
lacks
contains
information
to
lives
the
that
of
is
those
about individuals or other topics
Freestanding design (also called a bullpen

Interpersonal
communication
involves
the
design), all desks are placed in a large area that is
exchange of a message across a communication
completely open.
channel from one person to another.
Uniform plans - desks are placed at uniform
distances and are separated by panels into cubicle
Chapter 12: Leadership
areas.
Leader Emergence
Free-form workstations- use a combination of

Leader Emergence- is the idea that people who
designs so that the different needs of each worker
become leaders possess traits or characteristics
can be accommodated.
different from people who do not become leaders.
Informal Communication- is transmitted through
Three factors affecting the identity motivation
the grapevine when loosely hung telegraph wires

Affective identity motivation- become leaders
resembled grapevines. The communication across
because they enjoy being in charge and leading
these lines was often distorted.
others.
- grapevine and established the existence of
four
of
communicating the message, and can be
offices

Rumorsignificant
- three common designs for open or landscaped

content
significance to the people gossiping.
to supervise and help without the physical barriers of

Gossip is primarily about individuals and
the
will communicate better with one another and be easier

Dead-enders were those who heard most
grapevine
patterns:
single
strand,

gossip,
 Gossip grapevine- Ex. Jones passes the
leadership
a leader may result in an increase in status or in
message to Smith, who passes the message
chain.”
seek
will result in personal gain. For example, becoming
 Single-strand grapevine- Ex. Jones passes a
received by everyone or someone “breaks the
motivation-
positions when they perceive that such positions
probability, and cluster.
to Brown, and so on until the message is
Non-calculative
pay.

Social-normative motivation- become leaders
out of a sense of duty.
Chapter 13: Group Behavior, Teams, and Conflict
Group Dynamics
message to only a select group of people.
For a collection of people to be called a group, the
Notice that with this pattern only one person
following four criteria must be met:
passes the message along, and not everyone
(a) The members of the group must see themselves as
has a chance to receive, or will receive, it.
a unit;
 Probability grapevine- Ex. Jones tells the
(b) the group must provide rewards to its members;
message to a few other employees, and they
(c) anything that happens to one member of the group
in turn randomly pass the message along to
affects every other member; and
other employees.
(d) the members of the group must share a common
 Cluster grapevine- Ex. Jones tells only a few
goal.
select employees, who in turn tell a few select
- The first criterion is that the group must have multiple
others.
members.Usually we refer to two people as a dyad, to 3

Isolates- were employees who received
people as a triad, and to 4 to 20 people as a small
less than half of the information,
group.
Liaisons were employees who both
- The second group criterion is that membership must
received most of the information and
be rewarding for each individual in the group. It is
passed it on to others,
important to remember that people will join or form a

group only if it provides some form of reward.
12
- The third group criterion is that an event that affects
Groups that are isolated or located away from
one group member should affect all group members.
other groups tend to be highly cohesive.

Corresponding effects- if something significant

Outside Pressure- Groups that are pressured by
happens to one person and does not affect any of
outside forces also tend to become highly cohesive.
the other people gathered with her, then the
To some degree, this response to outside pressure
collection of people cannot be considered a group.
can
be
explained
by
the
phenomenon
of
- The fourth and final criterion is that all members must
psychological reactance. When we believe that
have a common goal.
someone is trying to intentionally influence us to
Reasons for Joining Groups
take some particular action, we often react by
 Assignment- In the workplace, the most
common reason for joining groups is that
doing the opposite.

employees are assigned to them.
Group Size- Groups are most cohesive and
perform best when group size is small. Studies
 Physical Proximity- One especially strong
have
shown
that
large
groups
have
lower
reason that a person might join a particular
productivity, less coordination, and lower morale,
group, especially if the group is informal, is
and are less active, less cohesive, and more
physical proximity. That is, people tend to form
critical than smaller groups.
groups with people who either live or work
 Additive tasks are those for which the group’s
nearby.
performance is equal to the sum of the
 Affiliation- involves our need to be with other
performances by each group member.

people. Thus, one reason people join groups
In groups working on additive tasks, each
member’s contribution is important, and
is to be near and talk to other people.
 Identification- to identify with others.
larger groups will probably be better than
 Emotional Support
smaller groups
 Assistance or Help
 Conjunctive tasks are those for which the
 Common Interests
group’s performance depends on the least
 Common Goals
effective group member. Because success on
Factors Affecting Group Performance
a conjunctive task is limited by the least
Group Cohesiveness
effective member, smaller groups are usually
 Group Cohesiveness- is the extent to which
best.
group members like and trust one another, are
 Disjunctive tasks are those for which the
committed to accomplishing a team goal, and
group’s performance is based on the most
share a feeling of group pride.
talented

Group Homogeneity- The homogeneity
disjunctive tasks include problem solving,
of a group is the extent to which its
brainstorming.

Homogeneous
members who are similar in some or
group settings depends on strength of the
most ways
group, immediacy of the group and the
group
contains
number of people in the group exerting the
Slightly
social influence.

heterogeneous
Group Status- A group can be made more
groups
cohesive by increasing group status. The group
compositions of the best- performing
does not actually have to have high status, but it is
groups were actually somewhere
important that its members believe they have high
between completely homogeneous
status.
and completely heterogeneous.

of
amount of influence a person experiences in
alike.

Examples
contains
Heterogeneous
group
members who are more different than

member.
 Social Impact Theory- proposes that the
members are similar.

group
Stability of Membership- The greater the stability
Group Ability and Confidence
- groups consisting of high-ability members
of the group, the greater the cohesiveness.
outperform those with low-ability members
Isolation- Physical isolation is another variable
Personality of the Group Members
that tends to increase a group’s cohesiveness.
-
An
important
factor
affecting
group
performance is the personality of the group members.
13
Communication Structure
- Evaluation apprehension - hypothesizes that
- For a group to perform successfully, good
communication among members is essential
judgment by others causes the differential effects of
social facilitation
Group Roles
- Distracting-the individual is able to perform
- For a group to be successful, its members’
roles must fall into one of two categories: task oriented
despite the distraction because the behaviors are
almost automatic.
 Social Loafing theory- considers the effect on
and social oriented
 Task-oriented roles involve behaviors such as
individual performance when people work
offering new ideas, coordinating activities, and
finding new information
 Social-oriented
Individual Dominance
roles involve encouraging
cohesiveness and participation
 Individual
together on a task.
single group member. If the leader or group member
activities, calling attention to oneself, and
has an accurate solution to a problem the group is
avoiding group interaction. Individual roles
trying to solve, the group will probably perform at a high
seldom result in higher group productivity.
level.
of
Others:
includes
performance is individual dominance by a leader or
group
Presence
role
- Another variable that can affect group
Social
blocking
Facilitation
and
Groupthink
Inhibition
- members become so cohesive and like-
 Social facilitation involves the positive effects
minded that they make poor decisions despite contrary
of the presence of others on an individual’s
information that might reasonably lead them to other
behavior
options.Groupthink most often occurs when the group
 Social inhibition involves the negative effects
is cohesive
of others’ presence
- Social facilitation and social inhibition can be
 Nominal
further delineated by audience effects and coaction.
 Audience
Effects-
The
phenomenon
Individual Versus Group Performance
of
When
several
people
individually work on a problem but do not
audience effects takes place when a group of
people passively watch an individual. An
group-
interact
 Interacting group- When several individuals
example would be a sporting event held in an
interact to solve a problem
arena.
 Coaction- The effect on behavior when two or
Team
more people are performing the same task in
- a work team is “a collection of three or more
the presence of one another. Examples would
individuals who interact intensively to provide an
be two runners competing against each other
organizational product, plan, decision, or service”
without a crowd present.
Factors to be considered before calling a group of
 Explaining Social Facilitation Effects- social
facilitation have indicated that performance
individuals as team

Identification- n Identification is the extent to
does not always increase in the presence of
which group members identify with the team
others. Performance increases only when the
rather than with other groups. For example,
task
well
suppose a committee was created composed
learned;performance decreases when the task
of one representative from each of five
is difficult or not well learned.
different departments. During the meetings,
being
performed
is
easy
or
members use such statements as “Our
department won’t agree,”.
Four explanations to support social facilitation
- Mere presence of others naturally produces

Interdependence- the dependence of two or
arousal or increase in energy, helps an individual
more people or things on each other. In a
perform
team,
well-learned
tasks
but
hinders
him
in
performing poorly learned or unpracticed tasks.
his performance with the other person’s
need
and
desire
the
assistance, expertise, and opinions of the
- Comparison- f an individual is working on a
task with another individual, he can directly compare
members
other members.

Power Differentiation- In a team, members
try to decrease power differentiation by
14
treating others as equals and taking steps to

ensure equality.
How Teams Develop
Social Distance- In a team, members try to

decrease social distance by being casual,
using
nicknames,
and
expressing
liking,
other and decide what roles each member will play.

empathy, and common views.

Conflict
Management
Team
become frustrated with their roles, show the stress
members respond to conflict by collaborating,
of balancing their previous duties with their new
whereas non-team members respond by
team responsibilities, and question whether they
forcing and accommodating. . In teams,
have the ability to accomplish the goals set in the
members try to understand the others’ views,
forming stage.
Tactics-

tension from the storming stage. Team members
Negotiation Process- In teams, members
begin to acknowledge the reality of the team by
negotiate in a win-win style in which the goal is
accepting the team leader and working directly with
for every person to come out ahead.
other team members to solve difficulties.
Permanency- some teams are designed

its
others are formed to solve a particular
suggestions,
problem
defensive responses, and participate at high levels.
and
then
are
expected
to
Group
members
challenge
one
make
innovative
another
without

Proximity-physically close to one another
than forming in stages, teams develop direction and

Virtual teams - whose members carry out
strategy in the first meeting, follow this direction for a
their
period of time, and then drastically revise their strategy
team
functions
and
through
email,
computer-based
about half way through the life of the team.
Why Teams Don’t Always Work
videoconferencing
Types of Teams
- Teams come in many shapes and sizes

The Team Is Not a Team- teams in name only

Excessive Meeting Requirements- they waste
Four types of Teams
time when they do meet
Work teams consist of groups of employees who
manage
themselves,
assign
jobs,
plan

and
schedule work, make work-related decisions, and
formed to produce goods, provide service, or
Lack of Empowerment- not given sufficient
authority

solve work- related problems. They are typically
Lack of Skills-lack of skills needed to work in a
team

increase the quality and cost-effectiveness of a
Distrust of the Team Process-doesn’t trust the
concept of teams
product or system.

Parallel teams, also called cross-functional teams,
Group Conflict
consist

of
representatives
from
various
Unclear Objectives
Conflict is the psychological and behavioral
departments (functions) within an organization.
reaction to a perception that another person is
Project teams are formed to produce one-time
either keeping you from reaching a goal, taking
outputs such as creating a new product, installing a
away your right to behave in a particular way, or
new software system, or hiring a new employee.
violating the expectancies of a relationship.
Once the team’s goal has been accomplished, the

goals.
- punctuated equilibrium, suggests that rather
teleconferencing,

Performing stage, the team begins to accomplish
to work together permanently, whereas
dissolve.

Norming stage, the team works toward easing the
nonthreatening tones.


Storming stage, the good behavior disappears.
On an individual level, team members often
make attempts to compromise, and use

Forming stage, team members get to know each

Dysfunctional conflict keeps people from working
team is dismantled.
together, lessens productivity, spreads to other
Management Teams coordinate, manage, advice,
areas, and increases turnover.
and direct employees and teams. Whereas work,

Functional conflict, moderate levels of conflict
parallel, and project teams are responsible for
can
directly
competition, and increase team effectiveness.
accomplishing
a
particular
goal,
management teams are responsible for providing
general direction and assistance to those teams.
stimulate
new
ideas,
increase
friendly
- can reduce the risk of much larger
conflicts
15

Types of Conflict


Interpersonal Conflict - occurs between two
fashion and does what it takes to win, with little
individuals. In the workplace, interpersonal conflict
regard for the other person
might occur between two coworkers, a supervisor
 Winning at all costs occurs especially when a
and a subordinate, an employee and a customer,
person regards his side as correct and the
or an employee and a vendor.
other person is regarded as the enemy whose
Individual–group conflict usually occurs when
side is incorrect.
the individual’s needs are different from the group’s

Forcing style handles conflict in a win-lose

Collaborating Style- wants to win but also wants
needs, goals, or norms.
to see the other person win. These people seek
Group–Group Conflict- In industry, company
win-win solutions—that is, ways in which both
divisions often conflict for the same reasons. A
sides get what they want.
good example of group–group conflict occurred

Compromising Style- The user of this type adopts
between two branches of the same bank located in
giveand-take tactics that enable each side to get
the same town. The branches competed for
some of what it wants but not everything it wants.
customers not only with other banks but with each
other.
- Compromising usually involves a good deal of
negotiation and bargaining.

Causes of Conflict


Competition for Resources- when demand for a
settlement that a person is willing to accept; it
resource exceeds its supply, conflict occurs
must be realistic and satisfy the person’s
Task
interdependence,
comes
when
the
actual needs

performance of some group members depends on
the performance of other group members.

Jurisdictional
ambiguity,
is
found

when
for and still reasonably support with facts and
logic.
unclear. For example, two employees might argue
Resolving Conflict
over whose job it is to get the mail.

Communication
Barriers-
The
barriers
Prior to Conflict Occurring
to
- employees should first try to resolve their own
interpersonal communication can be physical, such
conflicts, and if that is not successful, they can utilize a
as separate locations on different floors or in
third-party intervention. Employees should receive
different buildings; cultural, such as different
training on the causes of conflict, ways to prevent
languages or different customs; or psychological,
conflict, and strategies for resolving conflict.
such as different styles or personalities.

Beliefs - Conflict is most likely to occur when
individuals or groups believe that they:
When Conflict First Occurs
- When conflict first occurs between coworkers
or between a supervisor and a subordinate, the two
- are superior to other people or groups
parties should be encouraged to use the conflict
- have been mistreated by others
resolution skills they learned in training to resolve the
- are vulnerable to others and are in harm’s
conflict on their own.
- If the two can’t agree, the conflict is labeled a
way

Maximum Supportable Position (MSP) s the
best possible settlement that a person can ask
geographical boundaries or lines of authority are

Least Acceptable Result (LAR) is the lowest
Personality- Conflict is often the result of people
dispute, and the parties should seek third-party
with incompatible personalities who must work
intervention.
together.
- Cooperative Problem Solving- An example
Conflict Styles
of this approach is when the president of an

Avoiding Style- Employees using an avoiding
organization forms a task force or committee with
style choose to ignore the conflict and hope it will
representatives from all of the departments or divisions
resolve itself.
that will be affected by the solution. Together these
 Triangling

occurs
when
an
employee
representatives work to define the problem, identify
discusses the conflict with a third party, such
possible solutions, and arrive at the best one.
as a friend or supervisor.
Third-Party Intervention
Accommodating Style- When a person is so
- If conflict cannot be resolved by the parties
intent on settling a conflict that he gives in and
involved, it is often a good idea to seek help—that is, to
risks hurting himself
ask for third-party intervention. This third party
16
usually is provided through mediation, and if that
doesn’t work, through arbitration.

Mediation, a neutral third party is asked to help
both parties reach a mutually agreeable solution to
the conflict. Mediators are not there to make
decisions. Instead, their role is to facilitate the
communication process by providing the parties
with a safe and equitable venue so that they are
more willing and able to reach a solution.

Arbitration, a neutral third party listens to both
sides’ arguments and then makes a decision.
Within an organization, this neutral party is often
the manager of the two employees in conflict.
However, if that manager just served as a mediator,
then an HR director might be used.

Arbitration decisions can be either binding or
nonbinding

If the decision is binding, the two sides have
agreed to abide by the arbitrator’s decision
regardless of how displeased one or both
sides may be with that decision.

If the decision is nonbinding, then one or
both sides can reject an unfavorable decision.
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