Organizational Behavior
Lecture Notes — Chapters 1–3
Chapter 1: What Is Organizational Behavior?
1. Defining Organizational Behavior
Organizational behavior (OB) is a field of study that investigates the impact that individuals,
groups, and structure have on behavior within organizations, for the purpose of applying such
knowledge toward improving an organization’s effectiveness.
OB is an applied behavioral science built upon contributions from several disciplines:
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Psychology: Studies learning, motivation, personality, emotions, perception, training,
leadership effectiveness, job satisfaction, decision making, performance appraisal,
attitude measurement, employee selection, work design, and work stress. Unit of
analysis: the individual.
Social Psychology: Focuses on behavioral change, attitude change, communication,
group processes, and group decision making. Bridges the individual and group levels.
Sociology: Contributes understanding of communication, power, conflict, intergroup
behavior, formal organization theory, organizational technology, organizational change,
and organizational culture. Unit of analysis: the group and organizational system.
Anthropology: Contributes comparative values, comparative attitudes, cross-cultural
analysis, organizational culture, organizational environment, and power. Unit of analysis:
the organizational system.
2. Importance of Interpersonal Skills
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Organizations recognized as “good places to work” tend to have better financial
performance.
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Better interpersonal skills lead to lower turnover of quality employees and higher quality
recruitment applications.
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There is a strong association between the quality of workplace relationships and
employee job satisfaction, stress, and turnover.
3. The Manager’s Functions, Roles, and Skills
3a. Key Definitions
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Manager: Someone who gets things done through other people in organizations.
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Organization: A consciously coordinated social unit composed of two or more people
that functions on a relatively continuous basis to achieve a common goal or set of goals.
3b. Mintzberg’s Managerial Roles
Mintzberg identified ten interrelated roles grouped into three categories:
Interpersonal Roles
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Figurehead: Symbolic head; performs routine duties of a legal or social nature.
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Leader: Responsible for the motivation and direction of employees.
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Liaison: Maintains a network of outside contacts who provide favors and information.
Informational Roles
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Monitor: Serves as nerve center of internal and external information.
Disseminator: Transmits information received from outsiders or employees to
organization members.
Spokesperson: Transmits information to outsiders on organization’s plans, policies,
actions, and results; serves as industry expert.
Decisional Roles
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Entrepreneur: Searches the organization and its environment for opportunities; initiates
change projects.
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Disturbance Handler: Responsible for corrective action when the organization faces
important, unexpected disturbances.
Resource Allocator: Makes or approves significant organizational decisions.
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Negotiator: Represents the organization at major negotiations.
3c. Management Skills
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Technical Skills: The ability to apply specialized knowledge or expertise. Many people
develop these on the job.
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Human Skills: The ability to work with, understand, and motivate other people, both
individually and in groups.
Conceptual Skills: The mental ability to analyze and diagnose complex situations.
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4. Effective vs. Successful Managerial Activities
Fred Luthans and his associates found that all managers engage in four activities:
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Traditional management (planning, organizing, leading, controlling)
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Communication
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Human resource management
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Networking
4a. How Time Is Allocated
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Average managers: 32% traditional management, 29% communication, 20% HR
management, 19% networking.
Successful managers (defined by speed of promotion): 48% networking, 28%
communication, 13% traditional management, 11% HR management.
Effective managers (defined by quality of performance and employee satisfaction):
44% communication, 26% HR management, 19% traditional management, 11%
networking.
Key takeaway: Networking had the strongest relationship with managerial success (promotions),
while communication had the strongest relationship with managerial effectiveness.
5. Complementing Intuition with Systematic Study
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Systematic Study: Behavior is generally predictable if we know how the person
perceived the situation and what is important to them.
Evidence-Based Management (EBM): Complements systematic study by arguing for
managers to make decisions based on evidence rather than gut feelings alone.
Intuition: Systematic study and EBM add to intuition. Relying solely on gut instinct
means working with incomplete information.
6. Few Absolutes Apply to OB
There are few, if any, simple and universal principles that explain organizational behavior. OB
must account for contingency variables—situational factors that moderate the relationship
between independent and dependent variables. Context matters.
7. Challenges and Opportunities for OB
7a. Economic Pressures and Cultural Norms
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In tough economic times, effective management is an asset (e.g., Southwest Airlines
during downturns).
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In good times, understanding how to reward, satisfy, and retain employees is at a
premium.
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Corporate culture shapes employee decision-making (e.g., United Airlines).
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In bad times, issues like stress, decision making, and coping come to the forefront (e.g.,
Citi during 2008).
7b. Responding to Globalization
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Increased foreign assignments
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Working with people from different cultures
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Overseeing movement of jobs to countries with low-cost labor (global sourcing)
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Adapting to differing cultural and regulatory norms
7c. Managing Workforce Diversity
Organizations are becoming more heterogeneous in terms of gender, age, race, ethnicity,
sexual orientation, and inclusion of other diverse groups.
7d. Improving Customer Service
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Service employees interact substantially with customers.
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Employee attitudes and behavior are associated with customer satisfaction.
Organizations need a customer-responsive culture.
7e. Improving People Skills
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People skills are essential to managerial effectiveness.
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OB provides the concepts and theories that allow managers to predict employee
behavior in given situations.
7f. Enhancing Employee Well-Being at Work
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The global workforce means work never fully stops.
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Communication technology allows working at any time or place.
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Employees are working longer hours per week.
Changing family lifestyles create work–life conflict.
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Balancing work and life demands now surpasses job security as an employee priority.
7g. Creating a Positive Work Environment
Positive organizational scholarship focuses on how organizations develop human strength,
foster vitality and resilience, and unlock potential. The emphasis is on empowering strengths
rather than only managing weaknesses.
7h. Improving Ethical Behavior
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Ethical dilemmas require individuals to define right and wrong conduct.
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Organizations distribute codes of ethics to guide employees.
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Managers need to create an ethically healthy climate.
8. The Basic OB Model: Three Levels of Analysis
The OB model is structured around three levels—individual, group, and organizational—each
with its own inputs, processes, and outcomes.
8a. Inputs
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Individual Level: Diversity, personality, and values.
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Group Level: Group structure, group roles, and team responsibilities.
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Organizational Level: Structure and culture.
8b. Processes
If inputs are like the nouns of OB, processes are like the verbs—the actions that result from
inputs and lead to outcomes.
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Individual Level: Emotions and moods, motivation, perception, and decision making.
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Group Level: Communication, leadership, power and politics, conflict and negotiation.
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Organizational Level: Human resource management and change practices.
8c. Outcomes
Key outcome variables that OB seeks to explain or predict:
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Attitudes and Stress: Employee evaluations (positive to negative) about objects,
people, or events; stress is an unpleasant psychological process in response to
environmental pressures.
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Task Performance: The combination of effectiveness and efficiency at doing core job
tasks.
Organizational Citizenship Behavior (OCB): Discretionary behavior not part of formal
job requirements that contributes to the psychological and social environment of the
workplace.
Withdrawal Behavior: Actions employees take to separate themselves from the
organization.
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At the group level, outcomes include group cohesion and group functioning. At the
organizational level, outcomes include productivity and survival.
Chapter 2: Diversity in Organizations
1. Understanding Workplace Diversity
Workplace diversity encompasses two levels:
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Surface-level diversity: Differences in easily perceived characteristics such as age,
ethnicity, gender, and race. These characteristics do not necessarily reflect how people
think or feel, but they can activate stereotypes.
• Deep-level diversity: Differences in values, personality, and work preferences. These
become progressively more important as people get to know one another and surfacelevel characteristics become less relevant.
Diversity management sits above both levels—it’s the organizational effort to make everyone
aware of and sensitive to the needs and differences of others.
2. Prejudice and Discrimination in Organizations
2a. Key Definitions
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Prejudice: An attitude representing broad, generalized feelings toward a group or its
members that maintains a hierarchy between groups. Common forms include sexism,
racism, and ageism.
Implicit bias: Prejudice that may be hidden outside one’s conscious awareness.
Discrimination: Unfair treatment that assumes stereotypes about groups rather than
recognizing individual differences. Harmful to both organizations and employees.
2b. Race and Ethnicity
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Employees tend to favor colleagues of their own race in performance evaluations,
promotion decisions, and pay raises.
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African Americans and Hispanics perceive higher levels of workplace discrimination.
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African Americans generally fare worse than Whites in employment decisions.
2c. Types of Workplace Discrimination
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Discriminatory policies or practices: Actions by organizational representatives that
deny equal opportunity or provide unequal rewards. Example: targeting older workers for
layoffs due to higher compensation.
Sexual harassment: Unwanted sexual advances and other verbal or physical conduct
that create a hostile or offensive work environment.
Intimidation: Overt threats or bullying directed at members of specific groups.
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Mockery and insults: Jokes or negative stereotypes, sometimes the result of jokes
taken too far.
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Exclusion: Excluding certain people from job opportunities, social events, discussions,
or informal mentoring. Can occur unintentionally.
Incivility: Disrespectful treatment, including aggressive behavior, interrupting, or
ignoring opinions.
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3. Biographical Characteristics
Biographical characteristics are personal characteristics that are objective and easily obtained
from personnel records. Variations in these can become the basis for discrimination.
3a. Age
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The U.S. workforce is aging.
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Studies show turnover and absenteeism rates are lower among older workers.
Age is not associated with lower productivity.
3b. Gender
Research shows no consistent male–female differences in problem-solving ability, analytical
skills, competitive drive, motivation, sociability, or learning drive.
The gender pay gap has narrowed over time but persists—women’s earnings as a percentage
of men’s have risen from around 62% in 1979 to approximately 82% by 2019, according to BLS
data.
3c. Disabilities
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The EEOC classifies a person as disabled if they have any physical or mental
impairment that substantially limits one or more major life activities.
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Workers with disabilities receive higher performance evaluations, but may face lower
performance expectations.
Hidden disabilities: Include sensory disabilities, chronic illness or pain, cognitive or
learning impairments, sleep disorders, and psychological challenges. U.S. organizations
must accommodate a broad range of impairments, but employees must disclose to be
eligible.
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4. Intellectual and Physical Abilities
Ability is an individual’s current capacity to perform various tasks in a job. It breaks into two
types:
4a. Intellectual Abilities
Abilities needed to perform mental activities—thinking, reasoning, and problem solving. General
mental ability (GMA) is an overall factor of intelligence suggested by positive correlations among
specific intellectual ability dimensions.
Seven dimensions of intellectual ability:
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Number aptitude: Speedy and accurate arithmetic (e.g., accountant computing sales
tax).
Verbal comprehension: Understanding what is read or heard and the relationship of
words (e.g., plant manager following corporate policies).
Perceptual speed: Identifying visual similarities and differences quickly (e.g., fire
investigator identifying arson clues).
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Inductive reasoning: Identifying a logical sequence in a problem and solving it (e.g.,
market researcher forecasting demand).
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Deductive reasoning: Using logic to assess the implications of an argument (e.g.,
supervisor choosing between employee suggestions).
Spatial visualization: Imagining how an object would look if its position in space were
changed (e.g., interior decorator redecorating an office).
Memory: Retaining and recalling past experiences (e.g., salesperson remembering
customer names).
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4b. Physical Abilities
The capacity to do tasks demanding stamina, dexterity, strength, and similar characteristics.
Nine basic physical abilities fall into three categories:
Strength Factors
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Dynamic strength: Exerting muscular force repeatedly or continuously over time.
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Trunk strength: Exerting muscular strength using the trunk (particularly abdominal)
muscles.
Static strength: Exerting force against external objects.
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Explosive strength: Expending a maximum of energy in one or a series of explosive
acts.
Flexibility Factors
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Extent flexibility: Moving the trunk and back muscles as far as possible.
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Dynamic flexibility: Making rapid, repeated flexing movements.
Other Factors
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Body coordination: Coordinating the simultaneous actions of different parts of the
body.
Balance: Maintaining equilibrium despite forces pulling off balance.
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Stamina: Continuing maximum effort requiring prolonged effort over time.
5. Other Characteristics in OB
5a. Tenure
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Tenure is a good predictor of employee productivity.
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Tenure and job satisfaction are positively related.
5b. Religion
U.S. law prohibits discrimination based on religion, but it remains an issue—particularly for
Muslim employees.
5c. Sexual Orientation and Gender Identity
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Most Fortune 500 companies have policies covering sexual orientation.
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About half now have policies on gender identity.
5d. Cultural Identity
Organizations need to accommodate and respect individual cultural identities in an increasingly
global workforce.
6. Managing Diversity Effectively
Diversity management is the process and programs by which managers make everyone more
aware of and sensitive to the needs and differences of others. Diversity is most successful when
it is everyone’s business, not just for certain groups.
6a. Attracting, Selecting, Developing, and Retaining Diverse Employees
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Target recruiting messages to specific demographic groups.
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Ensure that hiring is bias-free.
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Create a positive diversity climate.
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Support Employee Resource Groups (ERGs).
6b. Diversity Training and Development
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Tailor training and development to DEI needs.
Foster trainee motivation.
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Encourage goal setting.
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Consider mentorship programs.
6c. Key Concepts
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Common ingroup identity: Transforming workers’ focus from what divides them to
what unites them—changing perceptions of “us” and “them” to a more inclusive “we.”
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Contact hypothesis: Proposes that the more people from diverse backgrounds interact
with one another, the more prejudice and discrimination between the groups will
decrease over time.
6d. Effective Diversity Programs
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Teach managers about the legal framework for equal employment opportunity and
encourage fair treatment.
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Teach managers how a diverse workforce will be more effective at serving a diverse
customer base.
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Foster personal development practices that bring out the skills and abilities of everyone.
6e. Diversity in Groups
Groups function best when members emphasize higher-level similarities. Most people in groups
need a common way of looking at and accomplishing major tasks, and they need to
communicate well with each other.
6f. Diversity Management Challenges
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Authenticity matters—superficial efforts are counterproductive.
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Tokenism can be detrimental.
Paradoxical effects can happen (e.g., diversity initiatives triggering backlash).
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External environments influence results.
Chapter 3: Attitudes and Job Satisfaction
1. What Are Attitudes?
Attitudes are evaluative statements—favorable or unfavorable—about objects, people, or
events. They reflect how we feel about something and follow a Think → Feel → Act cycle.
Attitudes have three components:
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Cognitive component: The opinion or belief segment of an attitude (e.g., “My pay is
low”).
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Affective component: The emotional or feeling segment of an attitude (e.g., “I am
angry over how little I’m paid”).
Behavioral component: An intention to behave in a certain way toward someone or
something (e.g., “I’m going to look for another job that pays better”).
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2. Attitudes and Behavior
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Cognitive dissonance: Any incompatibility an individual might perceive between two or
more attitudes, or between behavior and attitudes. This creates stress. People seek
consistency among their attitudes and between their attitudes and behavior.
Mitigating variables that affect the attitude–behavior relationship:
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Importance: Individuals are more willing to reduce dissonance when the attitudes
involved are important to them.
Influence: People are more likely to align attitudes and behavior when they feel they
have control over the situation.
Rewards: External rewards can motivate individuals to tolerate or reduce dissonance.
3. Major Job Attitudes
3a. Job Satisfaction
A positive feeling about the job resulting from an evaluation of its characteristics.
3b. Job Involvement
The degree of psychological identification with the job, where perceived performance is
important to self-worth.
3c. Psychological Empowerment
Belief in the degree of influence over one’s job, competence, job meaningfulness, and
autonomy (e.g., discretion and delegation).
3d. Organizational Commitment
Identifying with a particular organization and its goals, and wishing to maintain membership in
the organization. Committed employees are less likely to engage in work withdrawal even if
dissatisfied, because they have a sense of organizational loyalty.
3e. Perceived Organizational Support (POS)
The degree to which employees believe the organization values their contribution and cares
about their well-being. POS is higher when rewards are fair, employees are involved in decision
making, and supervisors are seen as supportive. POS is especially important in countries where
power distance is lower.
3f. Employee Engagement
The degree of involvement with, satisfaction with, and enthusiasm for the job. Engaged
employees are passionate about their work and company. Engagement is associated with fewer
errors, higher customer satisfaction, and higher output.
Note: While these attitudes are presented as distinct, they are highly related and overlap
considerably.
4. Defining and Measuring Job Satisfaction
Over the last 30 years, employees in the U.S. and most developed countries have generally
been satisfied with their jobs, though satisfaction declined after the 2008 economic downturn.
Satisfaction levels differ by facet (pay and promotion tend to score lowest), and there are
cultural and generational differences.
Two popular approaches for measuring job satisfaction:
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Single global rating: One question asking how satisfied the person is overall with their
job.
Summation of job facets: Scores on key elements such as the work itself, pay,
promotion opportunities, supervision, and coworkers.
Global data: In a survey of 168,000 employees, 62% in Asia Pacific reported being happy in
their jobs (highest), compared to 53% worldwide average, 54% in the Americas, and 49% in
Europe/Middle East/Africa.
5. Main Causes of Job Satisfaction
5a. Job Conditions
The intrinsic nature of the work itself, social interactions, and supervision are important
predictors of job satisfaction.
5b. Personality
People who have positive core self-evaluations—who believe in their inner worth and basic
competence—are more satisfied with their jobs than those with negative core self-evaluations.
5c. Corporate Social Responsibility (CSR)
CSR refers to self-regulated actions to benefit society or the environment beyond what is
required by law. This includes environmental sustainability initiatives, nonprofit work, and
charitable giving. CSR increasingly affects employee job satisfaction and is particularly
important for Millennials, though not everyone finds equal value in it.
6. Outcomes of Job Satisfaction
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Job Performance: Happy workers are more likely to be productive workers.
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Organizational Citizenship Behavior (OCB): People who are more satisfied with their
jobs are more likely to engage in OCB.
Life Satisfaction: Job satisfaction is positively correlated with life satisfaction.
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Customer Satisfaction: Satisfied employees increase customer satisfaction and loyalty.
7. Employee Responses to Dissatisfaction
The Exit–Voice–Loyalty–Neglect (EVLN) framework maps four responses along two dimensions
(active/passive and constructive/destructive):
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Exit (Active + Destructive): Leaving the organization, including looking for a new
position or resigning.
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Voice (Active + Constructive): Actively and constructively attempting to improve
conditions, including suggesting improvements, discussing problems with superiors, and
some forms of union activity.
Loyalty (Passive + Constructive): Passively but optimistically waiting for conditions to
improve, trusting the organization and management to “do the right thing.”
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Neglect (Passive + Destructive): Passively allowing conditions to worsen, including
chronic absenteeism or lateness, reduced effort, and increased error rate.
8. Counterproductive Work Behavior (CWB)
CWB includes actions that actively damage the organization, such as stealing, behaving
aggressively toward coworkers, or being late or absent.
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Absenteeism: The more satisfied you are, the less likely you are to miss work.
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Turnover: A pattern of lowered job satisfaction is the best predictor of intent to leave.
Key point: Managers often underestimate the impact of dissatisfaction on these behaviors.
Organizational Behavior
Chapter 4
Emotions and Moods
1. Emotions and Moods
Six Universal Emotions
Research identifies six essentially universal emotions:
1. Anger
2. Fear
3. Sadness
4. Happiness
5. Disgust
6. Surprise
Moral Emotions
Moral emotions are emotions that have moral implications because of our instant judgment of
the situation that evokes them.
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Our responses to moral emotions differ from our responses to other emotions
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Moral emotions are learned, usually in childhood
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Because morality is a construct that differs between cultures, so do moral emotions
The Structure of Mood (Exhibit 4-2)
Moods are generally described along two dimensions: positive affect and negative affect. These
dimensions are not opposites but are independent.
Emotional States Across Cultures (OB Poll)
A 2014 global survey across 148 countries measured daily emotional experiences (five positive
and five negative). Key findings:
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Most emotional societies: Bolivia (59%), United States (56%), United Kingdom (51%)
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Least emotional societies: India (48%), China (45%), Russia (40%), Bangladesh (37%)
Decision Making: Thinking vs. Feeling
Decision making is influenced by both thinking (cognitive/rational processes) and feeling
(emotional responses). Both channels feed into how we make decisions.
2. Sources of Emotions and Moods
Personality
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Moods and emotions have a trait component
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Affect intensity: how strongly people experience their emotions
Time of Day
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There is a common pattern for all of us
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People tend to be happier in the midpoint of the day
Day of the Week
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People tend to be happier toward the end of the week
Weather
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Illusory correlation – weather has no proven effect on mood
Stress
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Even low levels of constant stress can worsen moods (in both intensity and duration)
Social Activities
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Physical, informal, and dining activities increase positive moods
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Negative interactions at work can affect emotions, which can “spill over” into family life
Sleep
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Poor sleep quality increases negative affect
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One study found that better sleep was associated with 16% increased wages in the long
run
Exercise
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Exercise does improve mood, especially for stressed and depressed people
Gender Identity
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Stereotypical perceptions of women as “emotional” and men as “angry” persist in the
workplace
3. Emotional Labor
Emotional labor: an employee’s expression of organizationally desired emotions during
interpersonal transactions at work (governed by norms).
Types of Emotions
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Felt emotions (inside): the actual emotions a person experiences
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Displayed emotions: the required or appropriate emotions shown at work
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Surface acting: hiding inner feelings and foregoing emotional expressions in
response to display rules
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Deep acting: trying to modify one’s true inner feelings based on display rules
4. Emotional Dissonance & Affective Events Theory
Emotional Dissonance
Emotional dissonance: inconsistencies between the emotions people feel and the emotions
they project.
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Long-term emotional dissonance is a predictor for job burnout, declines in job
performance, and lower job satisfaction
Affective Events Theory (AET)
Employees react emotionally to things that happen to them at work, and these reactions
influence job performance and satisfaction. Work events trigger positive or negative emotional
reactions, and employees’ personalities and moods predispose them to respond with greater or
lesser intensity.
AET offers two important messages:
7. Emotions provide valuable insights into how workplace hassles and uplifting events
influence employee performance and satisfaction
8. Emotions, and the events that cause them, should not be ignored at work because they
accumulate (i.e., compound over time)
5. Emotional Intelligence
Emotional intelligence (EI) is a person’s ability to:
9. Perceive emotions in the self and others
10. Understand the meaning of these emotions
11. Regulate one’s emotions accordingly in a cascading model
Cascading Model of EI (Exhibit 4-5)
The cascading model links personality traits to EI components:
Personality Trait
EI Component
Conscientiousness
Perceive Emotions in Self and Others
Cognitive Ability
Understand the Meaning of Emotions
Emotional Stability
Regulate Emotions
6. Emotion Regulation Strategies
Emotion regulation involves identifying and modifying the emotions you feel.
Emotion Regulation Techniques:
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Surface acting (–) – tends to have negative outcomes
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Deep acting (+) – tends to have more positive outcomes
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Emotional suppression (e.g., police officers, traders)
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Cognitive reappraisal (e.g., reframing a situation)
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Social sharing (e.g., venting to others)
7. OB Applications of Emotions and Moods
Leadership
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Emotions are important to acceptance of messages from organizational leaders
Motivation
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Positive mood affects expectations of success; feedback amplifies this effect
Negotiation
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Emotions can impact negotiations
Selection
•
Emotional intelligence should be a hiring factor, especially for social jobs
Decision Making
•
Positive emotions can lead to better decisions
Creativity
•
Positive mood increases flexibility, openness, and creativity
Customer Service
•
Emotions influence customer service, repeat business, and customer satisfaction
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Emotional contagion: the process of “catching” emotions from others
Work-Life Balance
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A good day at work tends to be followed by a good mood at home and vice versa; this
usually dissipates overnight
Deviant Workplace Behaviors
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Negative emotions lead to workplace deviant behaviors (e.g., gossip, surfing the web)
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These are actions that violate norms and threaten the organization
Safety and Injury at Work
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Avoid dangerous work when in a bad mood
Chapter 4 Class Exercises
Exercise I: “Boss Effect”
12. Contemplate your experience with the “Boss Effect” as a supervisor or staff
13. How did you feel about the other person in the situation?
14. Did your expression or that of the other individual reflect how each person felt?
Exercise II: “Happiness Test” (PANAS Scale)
15. How happy do your responses indicate you have been in the last week? Was it a usual
week?
16. Compare your two ratings – did the second set change? Did your ratings go up or down?
What is the cause of the change?
17. The items represent the PANAS (Positive and Negative Affect Scale). Do you think the
test accurately measured your happiness? Why or why not?
Organizational Behavior
Chapter 5
Personality and Values
1. Personality: Measured and Shaped
Defining Personality
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The sum total of ways in which an individual reacts to and interacts with others
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Personality is a dynamic concept describing the growth and development of a person’s
whole psychological system
Why Personality Matters
Managers need to know how to measure personality:
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Personality tests are useful in hiring decisions and help managers forecast who is best
for a job
•
“Fit” is important to both the company and the applicant
•
The most common means of measuring personality is through self-report surveys
(shortfall: accuracy)
Cultural Impact on Personality
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Individualistic vs. Collectivism
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Self-enhancement vs. Self-diminishment
Personality Determinants
Is personality the result of heredity or environment?
Heredity refers to factors determined at conception. The heredity approach argues that
personality is ultimately explained by the molecular structure of genes located in chromosomes.
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Biological, physiological, and psychological factors all play a role
Personality Traits
Early research identified personality characteristics. Examples of personality traits include: shy,
aggressive, submissive, lazy, ambitious, loyal, and timid.
2. Myers-Briggs Type Indicator (MBTI)
The most widely used personality framework. Individuals are classified along four dimensions:
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Extroverted (E) or Introverted (I): outwardly vs. inwardly focused
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Sensing (S) or Intuitive (N): focus on facts/details vs. big picture/possibilities
•
Thinking (T) or Feeling (F): logical analysis vs. personal values in decision making
•
Perceiving (P) or Judging (J): flexible/spontaneous vs. organized/planned
MBTI Type Examples
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INTJs – Visionaries: stubborn, driven, skeptical, critical
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ENFJs – Leaders/Teachers: relational, motivational, idealistic
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ESTJs – Organizers: realistic, logical, decisive
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ENTPs – Conceptualizers: innovative, individualistic, versatile
3. The Big Five Model
The Big Five Model identifies five core personality dimensions (scored high to low):
Trait
Why Is It Relevant?
What Does It Affect?
Emotional Stability
Less negative thinking, fewer
negative emotions, less
hypervigilant
Higher job and life satisfaction,
lower stress, more adaptable to
change
Extraversion
Better interpersonal skills, greater
social dominance, more
emotionally expressive
Higher performance, enhanced
leadership, higher job and life
satisfaction
Openness
Increased learning, more creative,
more flexible and autonomous
Enhanced training performance,
enhanced leadership
Agreeableness
Better liked, more compliant and
conforming
Higher performance, lower levels
of deviant behavior
Conscientiousness
Greater effort and persistence,
more drive and discipline, better
organized
Higher performance, enhanced
leadership, greater longevity
Personality Assessments in Hiring (OB Poll)
Personality assessments are used across position levels: Executives (32%), Middle Managers
(28%), Individual Contributors (20%), Hourly Workers (17%).
4. The Dark Triad and Other Dark Traits
The Dark Triad
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Machiavellianism: the degree to which an individual is pragmatic, maintains emotional
distance, and believes that ends can justify means
•
Narcissism: the tendency to be arrogant, have a grandiose sense of self-importance,
require excessive admiration, and have a sense of entitlement
•
Psychopathy: a tendency for lack of concern for others and lack of guilt or remorse
when actions cause harm
Other Dark Traits
•
Antisocial: indifferent and callous toward others
•
Borderline: low self-esteem, high uncertainty, unpredictable
•
Schizotypal: eccentric but creative, disorganized
•
Obsessive-compulsive: perfectionist, stubborn, high attention to detail, strong work
ethic
•
Avoidant: little interaction, feel inadequate, hate criticism
5. Other Personality Frameworks and Traits
DiSC Framework
•
Personality characteristics represented on a circle with similar traits in closer proximity
and dissimilar traits farther apart
HEXACO Model
•
Incorporates an additional trait, honesty-humility, into the Big Five framework
Core Self-Evaluation, Self-Monitoring, and Proactive Personality
•
Core Self-Evaluation: bottom-line conclusions individuals have about their capabilities,
competence, and worth as a person
•
Self-Monitoring: measures an individual’s ability to adjust behavior to external,
situational factors
•
Proactive Personality: people who identify opportunities, show initiative, take action,
and persevere until meaningful change occurs
6. Situation, Personality, and Behavior
Situation Strength Theory
The way personality translates into behavior depends on the strength of the situation – the
degree to which norms, cues, or standards dictate appropriate behavior.
•
Clarity: e.g., bank teller vs. cashier
•
Consistency: e.g., franchise vs. diner
•
Constraints: e.g., manufactured vs. custom
•
Consequences: e.g., police vs. security guard
Trait Activation Theory (TAT)
Predicts that some situations, events, or interventions “activate” a trait more than others. A (+)
sign means individuals scoring high on the trait do better in the job; a (–) sign means those
scoring low do better.
7. Intellectual and Physical Abilities
Dimensions of Intellectual Ability
Dimension
Description
Job Example
Number Aptitude
Speedy and accurate arithmetic
Accountant: computing sales tax
Verbal Comprehension
Understanding what is
read/heard and word
relationships
Plant manager: following
corporate hiring policies
Perceptual Speed
Identifying visual similarities and
differences quickly
Fire investigator: identifying
arson clues
Inductive Reasoning
Identifying logical sequences
and solving problems
Market researcher: forecasting
product demand
Deductive Reasoning
Using logic to assess argument
implications
Supervisor: choosing between
employee suggestions
Spatial Visualization
Imagining how objects look if
repositioned
Interior decorator: redecorating
an office
Memory
Retaining and recalling past
experiences
Salesperson: remembering
customer names
Nine Basic Physical Abilities
Strength Factors:
•
Dynamic strength – exerting muscular force repeatedly over time
•
Trunk strength – exerting strength using trunk/abdominal muscles
•
Static strength – exerting force against external objects
•
Explosive strength – expending maximum energy in explosive acts
Flexibility Factors:
•
Extent flexibility – moving trunk and back muscles as far as possible
•
Dynamic flexibility – making rapid, repeated flexing movements
Other Factors:
•
Body coordination – coordinating simultaneous actions of different body parts
•
Balance – maintaining equilibrium despite destabilizing forces
•
Stamina – continuing maximum effort over prolonged periods
8. Values
Defining Values
Values: basic convictions about what is right, good, or desirable.
Value system: ranks values in terms of intensity.
Values lay the foundation for understanding attitudes and motivation, and they influence
attitudes and behaviors.
Terminal vs. Instrumental Values
•
Terminal values: desirable end-states of existence (goals to achieve)
•
Instrumental values: preferred modes of behavior or means of achieving terminal
values (the path to achieving goals)
Generational Values
Cohort
Born
Entered
Work
Dominant Work Values
Baby Boomers
1946–
1964
1961–
1979
Optimism, competition, hard work, teamwork,
loyalty, duty
Generation X
1965–
1980
1980–
1995
Flexibility, informality, skepticism, independence,
diversity, work-life balance
Millennials
1981–
2000
1996–
2015
Competition, open-mindedness, achievement,
responsibility, uniqueness, quality relationships
Generation Z
2001–
2020
2015–
present
Multiculturalism, diversity, entrepreneurship,
progressiveness, individuality, creativity,
innovation
9. Person-Job Fit and Person-Organization Fit
Person-Organization Fit (Holland’s Theory)
•
People high on extraversion fit well with aggressive and team-oriented cultures
•
People high on agreeableness match better with supportive climates than aggressive
ones
•
People high on openness to experience fit better in organizations that emphasize
innovation over standardization
Person-Job Fit (Holland’s Six Types)
Type
Personality Characteristics
Congruent Occupations
Realistic
Shy, genuine, persistent, stable,
conforming, practical
Mechanic, drill press operator,
assembly-line worker, farmer
Investigative
Analytical, original, curious,
independent
Biologist, economist, mathematician,
news reporter
Artistic
Imaginative, disorderly, idealistic,
emotional, impractical
Painter, musician, writer, interior
decorator
Social
Sociable, friendly, cooperative,
understanding
Social worker, teacher, counselor,
clinical psychologist
Enterprising
Self-confident, ambitious, energetic,
domineering
Lawyer, real estate agent, PR
specialist, small business manager
Conventional
Conforming, efficient, practical,
unimaginative, inflexible
Accountant, corporate manager,
bank teller, file clerk
Other Dimensions of Fit
•
Person-group fit
•
Person-supervisor fit
10. Hofstede’s Five Value Dimensions
Hofstede’s framework for assessing cultures across five dimensions:
•
Masculinity vs. Femininity
•
Individualism vs. Collectivism
•
Long-term vs. Short-term Orientation
•
Power Distance (inequality vs. opportunity)
•
Uncertainty Avoidance (structured vs. unstructured)
Chapter 5 Class Exercise
In-Group Discussion
18. Write down 3 personality descriptions of each teammate
19. Record your self-assessment
20. Compare what you have written about yourself to your classmates’ perception of you
Due next week.
Organizational Behavior
Chapter 6
Perception and Individual Decision Making
1. What Is Perception?
Perception is a process by which individuals organize and interpret their sensory impressions
to give meaning to their environment.
It is important to the study of OB because people’s behaviors are based on their perception of
what reality is – which may not be actual reality, but it becomes one’s reality.
Factors That Influence Perception
Three categories of factors influence how we perceive the world:
Factors in the Perceiver:
•
Attitudes
•
Motives
•
Interests
•
Experience
•
Expectations
Factors in the Target (Relational Factors):
•
Novelty, motion, sounds, size
•
Background, proximity, similarity
Factors in the Situation (Contextual Factors):
•
Time
•
Work setting
•
Social setting
2. Attribution Theory
When we observe an individual’s behavior, we attempt to determine whether it was internally or
externally caused.
•
Internally caused: behaviors believed to be under the personal control of the individual
•
Externally caused: behaviors resulting from outside causes
Three Determinants of Attribution
Whether we attribute behavior to internal or external causes depends on three factors:
•
Distinctiveness: is the behavior unusual or part of a pattern? High distinctiveness →
external attribution; low → internal
•
Consensus: does everyone respond the same way? High consensus → external; low
→ internal
•
Consistency: does the person respond the same way over time? High consistency →
internal; low → external
Attribution Errors
•
Fundamental attribution error: the tendency to underestimate the influence of external
factors and overestimate the influence of internal (personal) factors when judging others’
behavior
•
Self-serving bias: individuals attribute their own successes to internal factors and
blame failures on external elements (e.g., team project outcomes)
3. Common Shortcuts in Judging Others
Selective Perception
•
Any characteristic that makes a person, object, or event stand out increases the
probability it will be perceived
•
Since we can’t observe everything, we engage in selective perception
Halo Effect
•
Drawing a general impression of someone based on a single characteristic (e.g., height,
humor)
Contrast Effects
•
We do not evaluate people in isolation – our reaction is influenced by others we have
recently encountered
•
Example: job interview performance perceived differently depending on who was
interviewed before
Stereotyping
•
Judging someone based on our perception of the group to which they belong
•
We must monitor ourselves to avoid unfairly applying stereotypes in evaluations and
decisions
4. Applications of Perception in Organizations
Employment Interviews
•
Interviewers make perceptual judgments that are often inaccurate
•
They generally draw early impressions that become quickly entrenched
•
Most interviewers’ decisions change very little after the first 4–5 minutes
Performance Expectations
•
People attempt to validate their perceptions of reality, even when faulty
•
Self-fulfilling prophecy (Pygmalion effect): expectations determine behavior –
expectations become reality
•
The impact can be positive or negative depending on the level of expectations
Performance Evaluation
•
Employee appraisals are heavily dependent on the perceptual process
•
Many jobs are evaluated in subjective terms
•
Subjective measures are problematic due to selective perception, contrast effects, halo
effects, etc.
5. Decision Making
Decision making occurs as a reaction to a problem (or opportunity). Individuals make decisions
by choosing from two or more alternatives when there is a discrepancy between the current
state and a desired state.
Rational Decision-Making Model (Exhibit 6-3)
Six steps to rational decision making:
21. Define the problem
22. Identify the decision criteria
23. Allocate weights to the criteria
24. Develop the alternatives
25. Evaluate the alternatives
26. Select the best alternative
Note: Business Organization and Management adds two final steps: Implementing and
Evaluating Effectiveness.
Example: Laptop Purchase Decision
Weighted criteria approach to choosing a business laptop:
Criterion
Weight (1–10)
Memory and storage
10
Battery life
8
Carrying weight
6
Warranty
4
Display quality
3
After scoring each alternative on each criterion and multiplying by the weight, the Microsoft
Surface Book scored highest (249), followed by Apple MacBook Pro (232), Acer Aspire E and
Dell XPS 13 (tied at 231).
6. Rationality, Bounded Rationality, and Intuition
Rational Model Assumptions
•
The decision maker has complete information
•
Can identify all relevant options in an unbiased manner
•
Chooses the option with the highest utility
Most decisions in the real world don’t follow the rational model.
Bounded Rationality
Most people respond to complex problems by reducing them to a level they can readily
understand.
•
Satisficing: seeking solutions that are satisfactory and sufficient rather than optimal
•
A limited list of conspicuous choices is identified
•
The decision maker reviews the list for a solution that is “good enough”
Intuition
•
Intuitive decision making occurs outside conscious thought – it is affectively charged and
engages emotions
•
Best approach: don’t abandon intuition, but supplement it with evidence and good
judgment
7. Common Biases and Errors in Decision Making
•
Overconfidence bias: those with the weakest abilities are most likely to overestimate
their performance
•
Anchoring bias: fixating on initial information and failing to adjust adequately for new
information
•
Confirmation bias: seeking information that reaffirms past choices and discounting
contradictory information
•
Availability bias: basing judgments on information that is readily available (driven by
time, convenience, effort)
•
Escalation of commitment: staying with a decision even when evidence shows it’s
wrong – driven by ego and personal responsibility
•
Randomness error: believing we can predict the outcome of random events; creating
meaning out of coincidence
•
Risk aversion: preferring a sure thing over a risky outcome; high stress distorts decision
making
•
Hindsight bias: falsely believing one accurately predicted an outcome after it is known
– what’s clear in hindsight was not obvious in the moment
Reducing Biases and Errors (Exhibit 6-4)
•
Focus on goals: clear goals make decision making easier and help eliminate
inconsistent options
•
Look for disconfirming information: actively seek information that contradicts your
beliefs and assumptions
•
Don’t create meaning from randomness: accept that some events are outside your
control and may be coincidence
•
Increase your options: generate more and more diverse alternatives to increase your
chances of finding an outstanding one
8. Individual Differences in Decision Making
Personality
•
Conscientiousness and ambition may increase escalation of commitment
•
High self-esteem may lead to self-serving and self-preservation biases
Other Factors
•
Gender identity
•
Mental ability (still vulnerable to same biases)
•
Cultural differences (autocratic vs. collective decision-making styles)
•
Nudging: strategic placement of choices to influence decisions (e.g., 401K plan default
enrollment)
9. Organizational Constraints on Decision Making
•
Performance evaluation systems
•
Reward systems
•
Formal regulations
•
System-imposed time constraints
•
Historical precedents
10. Ethical Decision Criteria
Utilitarianism
•
Decisions made solely on the basis of outcomes – the greater good
Rights-Based Approach
•
Making decisions consistent with fundamental liberties and privileges (e.g., codes of
ethics)
•
Protects whistle-blowers
Justice
•
Imposing and enforcing rules fairly and impartially to ensure equitable distribution of
benefits and costs
Lying as an Ethical Problem
•
Lying is one of the top unethical activities in daily organizational life
•
It undermines all efforts toward sound decision making
•
Managers and organizations cannot make good decisions when facts are
misrepresented
Chapter 6 Class Exercise
Stereotyping Discussion
27. Team up with classmates (not in your regular group)
28. Discuss a situation when you were adversely impacted by a negative stereotype
29. Discuss whether you have ever benefited from a positive stereotype
30. Think about whether you have unfairly viewed others based on a negative stereotype, or
expected something because of a positive stereotype
Chapter 7
Motivation Concepts
Organizational Behavior
1. Three Key Elements of Motivation
Motivation involves an individual’s intensity, direction, and persistence of effort toward attaining
a goal.
1. Intensity: Concerned with how hard a person tries (effort)
2. Direction: The orientation that benefits the organization (focus)
3. Persistence: A measure of how long a person can maintain effort (endurance)
2. Early Theories of Motivation
Maslow’s Hierarchy of Needs
Maslow proposed five levels of human needs arranged in a hierarchy (from base to peak):
Level
Description
5. Self-Actualization
Drive to reach one’s full potential
4. Esteem
Self-respect, autonomy, achievement, recognition
3. Social-Belongingness
Affection, belongingness, acceptance, friendship
2. Safety-Security
Protection from physical and emotional harm
1. Physiological
Hunger, thirst, shelter, and other bodily needs
Key takeaways:
•
Widely recognized and intuitively logical
•
However, most research does not fully validate the theory
•
Has not been actively researched since the 1960s
Herzberg’s Two-Factor Theory (Motivation-Hygiene Theory)
Herzberg distinguished between factors that cause satisfaction and those that cause
dissatisfaction — importantly, these are not opposites on a single continuum.
Motivators (Intrinsic)
Hygiene Factors (Extrinsic)
Achievement
Policy & Administration
Recognition
Supervision
Work Itself
Relationship with Supervisor
Responsibility
Work Conditions
Advancement
Salary
Growth
Relationship with Peers
Herzberg’s key insight:
•
•
Satisfaction ≠ opposite of Dissatisfaction
–
Motivators range: Satisfaction ↔ No Satisfaction
–
Hygiene factors range: No Dissatisfaction ↔ Dissatisfaction
When hygiene factors are adequate, workers will not be dissatisfied (but that does not
mean they will be satisfied)
Criticisms:
•
Relies on self-reports
•
Reliability of methodology is questioned
•
Some question the overall measure of satisfaction
McClelland’s Theory of Needs
McClelland’s theory focuses on three acquired needs:
•
Need for Achievement (nAch): The drive to excel, to achieve in relation to a set of
standards, and to strive to succeed
•
Need for Power (nPow): The need to make others behave in a way they would not
have otherwise
•
Need for Affiliation (nAfl): The desire for friendly and close interpersonal relationships
Example — Project choices at work (high nAch individuals):
•
Project A — $2,000 bonus (too easy) → Not preferred
•
Project B — $4,000 bonus, 80% chance → Preferred
•
Project C — $8,000 bonus, 50% chance → Maybe
•
Project D — $9,000 bonus (very few succeed) → Preferred
•
Project E — $32,000 bonus (almost impossible) → Not preferred
McGregor’s Theory X and Theory Y
McGregor proposed two contrasting assumptions managers hold about employees: Theory X
(employees are inherently lazy and need control) vs. Theory Y (employees are self-motivated
and seek responsibility).
3. Self-Determination Theory
People prefer to feel they have control over their actions — there is a strong need for autonomy.
Motivation can also come from external control: others’ pressure or direction.
Cognitive Evaluation Theory
Extrinsic rewards for behavior that was previously intrinsically motivated can decrease the
overall level of motivation. People paid for work feel less like they want to do it and more like
they have to do it.
Implications for rewards:
•
Caution in the use (and overuse) of extrinsic rewards is prudent
•
Extrinsic motivation closely relates to quantity; intrinsic motivation contributes to quality
•
Self-concordance: How strongly people’s reasons for pursuing goals are consistent
with their interests and core values
Takeaways:
•
For individuals: Choose your job for reasons other than extrinsic rewards (e.g., not just
money)
•
For organizations: Provide intrinsic as well as extrinsic incentives wisely — balance is
key, one size does not fit all
4. Goal-Setting Theory
Goals tell an employee what needs to be done, how much effort is needed, and for how long.
Key evidence:
•
Specific goals increase performance (S.M.A.R.T. goals)
•
Difficult goals, when accepted, result in higher performance than easy goals
•
Feedback leads to higher performance than non-feedback
•
Don’t forget to feedforward too!
Factors Influencing Goals–Performance
1. Goal Commitment: Internal locus of control — belief in ability
2. Task Characteristics: Simple vs. complex, well-learned vs. new, independent vs.
interdependent
3. National Culture: Collectivistic cultures may prefer moderate vs. difficult goals
Cascading Objectives
Goals cascade from overall organizational objectives → divisional → departmental → individual
objectives.
Promotion vs. Prevention Focus
•
Promotion focus: Strives for advancement and accomplishment; approaches
conditions that move closer to the goal
•
Prevention focus: Strives to fulfill duties and obligations; avoids conditions that pull
away from the goal
Goal-Setting and Ethics
The relationship between goal setting and ethics is complex. Overemphasis on goal attainment
can lead to forgoing mastery and adopting avoidance techniques, both of which could lead to
unethical choices.
5. Self-Efficacy Theory (Bandura)
Self-efficacy is an individual’s belief that he or she is capable of performing a task (i.e.,
confidence).
4 Ways to Increase Self-Efficacy:
1. Enactive Mastery: Build experience and confidence through doing
2. Vicarious Modeling: Learning through observation of others
3. Verbal Persuasion: Coaching and encouragement
4. Arousal: Being energized and pumped up for the task
The Pygmalion Effect
A form of self-fulfilling prophecy — believing in something can make it true. The best way for a
manager to use verbal persuasion is through the Pygmalion effect. The cycle flows: Beliefs →
Expectations → Behavior → Results → Reinforce Beliefs.
6. Reinforcement Theory (Skinner)
Behavior is a function of its consequences. Reinforcement conditions behavior, and behavior is
environmentally caused.
Operant Conditioning: People learn to behave to get something they want or to avoid
something they don’t want.
Social-Learning Theory
We can learn through both observation and direct experience. Four processes determine
influence on learning:
•
Attentional processes: Attractive/Important stimuli
•
Retention processes: Connection to memory
•
Reproduction processes: Observe, then do
•
Reinforcement processes: Incentives and rewards
7. Equity Theory
Employees compare their job inputs and outcomes to those of others, then respond to eliminate
any perceived inequities.
Ratio comparisons:
Comparison
Perception
My O/I < Other’s O/I
Inequity (underrewarded)
My O/I = Other’s O/I
Equity
My O/I > Other’s O/I
Inequity (overrewarded)
Six responses to perceived inequity:
4. Change their inputs (underpaid/overpaid)
5. Change their outcomes (piece-rate/variable)
6. Distort perceptions of self (work effort)
7. Distort perceptions of others
8. Choose a different referent (benchmark)
9. Leave the field
Organizational Justice
Three types of justice feed into the overall perception of organizational justice:
–
Distributive Justice: Perceived fairness of outcome (e.g., “I got the pay raise I
deserved”)
–
Procedural Justice: Perceived fairness of the process used to determine outcome
–
Interactional Justice: Sensitivity to the quality of interpersonal treatment
8. Expectancy Theory (Vroom)
A tendency to act in a certain way depends on an expectation that the act will be followed by a
given outcome, and on the attractiveness of that outcome.
Three key relationships:
–
Effort → Performance: Will my effort lead to good performance?
–
Performance → Reward: Will good performance lead to organizational rewards?
–
Rewards → Personal Goals: Will the rewards satisfy my personal goals?
The model flows: Individual Effort → Individual Performance → Organizational Rewards →
Personal Goals