Dr. Marilyn Young MANA5320 Management and Organizational Behavior Chapters 1-7 College of Business and Technology 1 2 3 1 4 Controlling Planning The Functions of Management Leading Organizing 5 The Roles of Management Decisional Interpersonal Informational 6 1-4a Table 1-1 HISTORY OF ORGANIZATIONAL BEHAVIOR CLASSICAL Taylor, Follett, Gantt, Gilbreaths, Weber 2. ADMINISTRATIVE Fayol 3. HUMAN RELATIONS MOVEMENT Mayo 4. TOTAL QUALITY MANAGEMENT 5. CONTINGENCY 7 Standard work conditions 8 15-min. rests + lunch Standard Same + Sat. a.m. off 15-min. rests + lunch 124 Same + 4 p.m. stop 132 Same + 4:30 p.m. stop 15-min. rests + lunch Six 5-min. rests Two 5-min. rests Percentage of Standard Output Results from the Relay Assembly Test Room In general, productivity increased with each change in work conditions 116 108 100 1-7 Table 1-3 McGregor’s Theory X and Theory Y Theory X Theory Y 1. People dislike work 1. Work is a natural activity 2. People must be pushed to objectives work 3. Most people prefer to be directed 2. People committed to are capable of self-direction 3. Rewards help people become committed to organizational objectives 4. Employees can learn to seek responsibility 5. Employees typically have imagination, ingenuity, and creativity 9 Theory X Versus Theory Y Theory X (traditional approach) Theory Y (modern approach) Distrusting Orientation toward people Accepting, promotes betterment Basically Lazy Assumptions about people Need to achieve and be responsible Low (disinterested) Interest in working High (very interested) Work when pushed Conditions under which people will work hard Work when appropriately trained and recognized 10 Levels of OB Analysis Individuals Groups Structures 11 Improving People Skills Concepts and Theories Workplace Skills Personal Insight 12 Productivity Absenteeism The Dependent Variables Turnover Organizational Citizenship Job Satisfaction 13 1 Introduction to the Field of Organizational Behavior 14 The Study of Organizational Behavior Psychology Individual Sociology Social Psychology Group Anthropology Organization Political Science 15 Study of Organizational Behavior Why Study Organizational Behavior Understand organizational events Organizational Behavior Research Predict Influence organizational organizational events events 16 Google and OB Google founders Larry Page and Sergey Brin have leveraged the power of organizational behavior to create the world’s leading Internet search engine as well as one of the best places to work. © Richard Hernandez/San Jose Mercury News 17 What are Organizations? Groups of people who work interdependently toward some purpose Structured patterns of interaction Coordinated tasks Work toward some purpose © Richard Hernandez/San Jose Mercury News 18 Why Study Organizational Behavior Understand organizational events Organizational Behavior Research Predict Influence organizational organizational events events 19 Improving Quality and Productivity Total Quality Management Corporate Reengineering 20 Empowering the Workforce Managers Are Giving Up Controls Workers Are Accepting Responsibility 21 Stimulating Innovation and Change Maintaining flexibility Improving quality Introducing new products and services 22 Trends: Globalization Economic, social, and cultural connectivity with people in other parts of the world Effects of globalization on organizations: Greater efficiencies and knowledge sources Ethical issues about economies of developing countries New organizational structures and communication Greater workforce diversity More competitive pressure, demands on employees 23 Trends: Globalization Global companies: Extend their activities to other parts of the world actively participate in other markets compete against firms in other countries 24 Trends: Information Technology •Blurs temporal and spatial boundaries between employees and organizations •Re-designs jobs and power relationships •Increases value of knowledge management •Supports telecommuting •Supports virtual teams 25 Telecommuting •An alternative work arrangement where employees work at home or remote site, usually with a computer connection to the office •Tends to increase productivity and empowerment, reduce stress and costs •Problems with lack of recognition, lack of social interaction 26 Managing Workforce Diversity 27 Trends: Changing Workforce •Primary and secondary diversity -- but concerns about distinguishing people by ethnicity •More women in workforce and professions •Different needs of Gen-X/Gen-Y and babyboomers •Diversity has advantages, but firms need to adjust 28 Trends: Changing Workforce Workforce has increasing diversity along several dimensions Primary categories • gender, age, ethnicity, etc. Secondary categories • some control over (e.g. education, marital status) 29 Trends: Employment Relationship Employability “New deal” employment relationship Continuously learn new skills Contingent work No contract for long-term employment Free agents, temporary-temporaries Minimum hours of work vary 30 Coping with “Temporariness” The Nature of Work Is Changing Organizations Are Also Changing 31 Employability vs Job Security Employability Job Security • Lifetime job security • Limited job security • Jobs are permanent • Jobs are temporary • Company manages career • Career selfmanagement • Low emphasis on skill development • High emphasis on skill development 32 Trends: Workplace Values & Ethics Values are long-lasting beliefs about what is important in a variety of situations Define right versus wrong --guide our decisions Values relate to individuals, companies, professions, societies, etc. Importance values due to: Need to guide employee decisions and actions Globalization increases awareness of different values Increasing emphasis on applying ethical values Ethics -- study of moral principles or values 33 Values/Ethics at Tom’s of Maine Tom and Kate Chappell have built Tom’s of Maine, the personal health care products firm, around the idea that businesses need to be compatible with the personal values of their employees. 34 Courtesy of Tom’s of Maine Corporate Social Responsibility Corporate Social Responsibility Organization’s moral obligation toward its stakeholders Stakeholders Shareholders, customers, suppliers, governments etc. Triple bottom line philosophy Economic, Social & Environmental 35 Improving Ethical Behavior •Provide in-house advisers •Create protection mechanisms •Write and distribute codes of ethics •Give seminars, workshops, & training 36 Organizational Behavior Anchors Multidisciplinary Anchor Open Systems Anchor Organizational Behavior Anchors Multiple Levels of Analysis Anchor Systematic Research Anchor Contingency Anchor 37 Open Systems Anchor of OB Feedback Feedback Subsystem Inputs Subsystem Organization Subsystem 38 Subsystem Outputs Knowledge Management Defined Any structured activity that improves an organization’s capacity to acquire, share, and use knowledge for its survival and success 39 Intellectual Capital Human Capital Knowledge that people possess and generate Structural Capital Knowledge captured in systems and structures Relationship Capital Values derived from satisfied customers, reliable suppliers, etc. 40 Knowledge Management Processes Knowledge acquisition Knowledge sharing Knowledge use • Grafting • Communication • Awareness • Individual learning • Communities of • Empowerment practice • Experimentation 41 Organizational Memory The storage and preservation of intellectual capital Retain intellectual capital by: Keeping knowledgeable employees Transferring knowledge to others Transferring human capital to structural capital Successful companies also unlearn. 42 2 Individual Behavior, Values, and Personality 43 The Container Store The Container Store is a role model for applying the key drivers for employee performance in Courtesy of Mountain Equipment Co-op customer service. Courtesy of The Container Store 44 MARS Model of Individual Behavior Role Perceptions Values Personality Motivation Individual Behavior and Results Perceptions Emotions Attitudes Ability Situational Factors Stress 45 Employee Motivation Internal forces that affect a person’s voluntary choice of behavior direction intensity persistence M R BAR A 46 S Employee Ability Natural aptitudes and learned capabilities required to successfully complete a task competencies personal characteristics that lead to superior performance person job matching • select qualified people • develop employee R M abilities through training BAR • redesign job to fit A S person's existing abilities 47 Employee Role Perceptions Beliefs about what behavior is required to achieve the desired results: understanding what tasks to perform understanding relative importance of tasks understanding preferred behaviors to accomplish tasks M R BAR A 48 S Situational Factors Environmental conditions beyond the individual’s short-term control that constrain or facilitate behavior time people budget work facilities M R BAR A 49 S Types of Behavior in Organizations Task Performance Maintaining Work Attendance Types of Work-Related Behavior Joining/Staying with the Organization Organizational Citizenship CounterProductive Behaviors 50 Values in the Workplace Stable, evaluative beliefs that guide our preferences Define right or wrong, good or bad Value system -- hierarchy of values Values are important because: Ethical values Guide employee behavior Globalization raises awareness of values differences Influence perceptions, decisions, behavior 51 Schwartz’s Values Model Self-transcendence Openness to Change Conservation Self-enhancement 52 Hyundai Crosses Cultures in Alabama © AP Photo/Yonhap When Korean automobile giant Hyundai Motor Company recently opened its manufacturing plant in Montgomery, Alabama, local residents and Hyundai executives alike paid close attention to differences in Korean and American cultural values. 53 Individualism- Collectivism High Peru Italy Portugal Zimbabwe Collectivism Taiwan Hong Kong China Mexico Turkey Chile Korea France U.S.A. Japan Egypt Low Low Individualism 54 High Power Distance High Power Distance China The degree that people accept an unequal distribution of power in society Russia Japan U.S.A. Netherlands Low Power Distance 55 Uncertainty Avoidance High U. A. Japan France The degree that people tolerate ambiguity (low) or feel threatened by ambiguity and uncertainty (high uncertainty avoidance). China U.S.A. Singapore Low U. A. 56 Achievement-Nurturing Achievement Japan U.S.A. The degree that people value assertiveness, competitiveness, and materialism (achievement) versus relationships and well-being of others (nurturing) China Sweden Nurturing 57 Long/Short-Term Orientation Long-Term Orientation China Japan The degree that people value thrift, savings, and persistence (long-term) versus past and present issues, respect for tradition and fulfilling social obligations (short-term). Netherlands U.S.A. Russia Short-Term Orientation 58 Four Ethical Principles Greatest good for the greatest Utilitarianism number of people Individual Rights Distributive Justice Care Fundamental entitlements in society People who are similar should receive similar benefits Favor those with whom we have special relationships 59 Supporting Ethical Behavior Ethical code of conduct Establishes standards of behavior Problem: Limited effect alone on ethical behavior Ethics training Awareness and clarification of ethics code Practice resolving ethical dilemmas Ethics officers Educate and counsel; hear about wrongdoing Ethical leadership Demonstrate integrity and role model ethical conduct 60 Supporting Ethics at Adolph Coors Long before it was a priority at other firms, Adolph Coors developed training programs and reward systems that explicitly strengthen ethical conduct. 61 Defining Personality Relatively stable pattern of behaviors and consistent internal states that explain a person's behavioral tendencies 62 Trends: Globalization Implications of globalization: New organizational structures Different forms of communication More competition, change, mergers, downsizing, stress Need more sensitivity to cultural differences 63 Biographical Characteristics Age Gender Tenure Marital Status 64 Basic Physical Abilities Strength Factors Other Factors 65 Flexibility Factors What Is Personality? Heredity Environment Situation 66 Personality Traits Trusting Suspicious Practical Imaginative Forthright Shrewd Self-Assured Apprehensive Conservative Experimenting Group-Dependent Self-Sufficient Uncontrolled Controlled Relaxed Tense 67 Myers-Briggs Type Indicator Type of Social Interaction Extrovert (E) Preference for Gathering Data Sensing (S) Introvert (I) Intuitive (N) Feeling (F) Preference for Decision Making Thinking (T) Perceptive (P) Style of Decision Making Judgmental (J) 68 Myers-Briggs Type Indicator Extroversion versus introversion Sensing versus intuition Thinking versus feeling Courtesy of Thompson Doyle Hennessey & Everest Judging versus perceiving 69 Myers-Briggs Type Indicator During their retreat in Maine, employees at Thompson Doyle Hennessey & Everest completed the MyersBriggs Type Indicator and learned how their personalities can help them understand each other more effectively. 70 Courtesy of Thompson Doyle Hennessey & Everest Extraversion Agreeableness The “Big Five” Personality Model Emotional Stability Openness to Experience Conscientiousness 71 Big Five Personality Dimensions Conscientiousness Careful, dependable Courteous, caring Agreeableness Anxious, hostile Neuroticism Openness to Experience Sensitive, flexible Outgoing, talkative Extroversion 72 Personality Attributes and Behavior Locus of Control Machiavellian Traits Self-Esteem Self-Monitoring Risk Taking Type A Personality 73 Type A and B Personalities Type A Behavior Pattern •involves high levels of competitiveness, time urgency, and irritability Type B behavior pattern •casual, laid-back style Type A overall edge in job performance, especially tasks involving time pressure or solitary work; impatient with coworkers Type B perform better on complex tasks that require accuracy rather than 74 speed Locus of Control and Self-Monitoring Locus of control Internals believe in their effort and ability Externals believe events are mainly due to external causes Self-monitoring personality Sensitivity to situational cues, and ability to adapt your behavior to that situation 75 Myers-Briggs Type Indicator Extroversion vs. Introversion Sensing vs. Intuition Thinking vs. Feeling Judging vs. Perceiving 76 Locus of Control and Self-Monitoring Locus of control Internals believe in their effort and ability Externals believe events are mainly due to external causes Self-monitoring personality to that situation Sensitivity to situational cues, and ability to adapt your behavior 77 Holland’s Occupational Choice Theory Career success depends on fit between the person and work environment Holland identifies six “themes” Represent work environment and personality traits/interests A person aligned mainly with one theme is highly differentiated A person has high consistency when preferences relate to adjacent themes 78 3 Perception and Learning in Organizations 79 Regina Peruggi, Back to the Floor Regina Peruggi, president of New York’s Central Park Conservancy, got her perceptions back in focus by spending a week working on the front line. 80 © BBC Photolibrary Vodafone Executive Grahame Maher Vodafone executive Grahame Maher keeps his perceptions in focus by discarding the executive suite and working alongside employees every day. Bob Finlayson/Newspix 81 Perceptual Process Model Environmental Stimuli Feeling Hearing Seeing Smelling Selective Attention Organization and Interpretation Emotions and Behaviors 82 Tasting Selective Attention Characteristics of the object size, intensity, motion, repetition, novelty Perceptual context Characteristics of the perceiver attitudes perceptual defense expectations -- condition us to expect events 83 Splatter Vision Perception Fighter pilots, police detectives, and truck drivers use splatter vision -scanning everything and focusing on nothing. This reduces the chance of screening out potentially important information. 84 © Corel Corp. Used with permission Social Identity Theory IBM Employee Live in U.S.A. An Individual’s Social Identity Univ. of Vermont Graduate 85 Employees at other firms People living in other countries Graduates from other schools Social Identity Theory Features Comparative process define ourselves by differences with others Homogenization process similar traits within a group; different traits across groups Contrasting process develop less favorable images of people in groups other than our own 86 The Study of Organizational Behavior Psychology Individual Sociology Social Psychology Group Anthropology Organization Political Science 87 Study of Organizational Behavior Self-Fulfilling Prophecy Cycle Supervisor forms expectations Employee’s behavior matches expectations Expectations affect supervisor’s behavior Supervisor’s behavior affects employee 88 Dealing with Self-Fulfilling Prophecy Awareness training Leaders learn effects of negative perceptions Problem is that awareness doesn’t prevent selffulfilling prophecy Emerging three-prong strategy Support a learning orientation Engage in contingency leadership styles Increase employee self-efficacy 89 Frequently Used Shortcuts When Judging Others Selective Perception Contrast Effect Stereotyping 90 Halo Effect Projection 6-4 Stereotypes A stereotype is an individual’s set of beliefs about the characteristics of a group of people. 91 Stereotyping Process of assigning traits to people based on their membership in a social category Categorical thinking Strong need to understand and anticipate others’ behavior Enhances our selfperception and social identity 92 Ottawa Citizen 6-8 Common Types of Stereotypes Sex-Role Stereotypes Age Stereotypes Race Stereotypes Disability Stereotypes 93 Sex Role Stereotyping in Engineering Women are underrepresented in engineering partly because: Social identity -- few women identify with the “geek” image portrayed of engineers Sex role stereotyping -- women are not encouraged to become engineers because the profession has a male stereotype 94 Minimizing Stereotyping Biases Diversity awareness training Educate employees about the benefits of diversity and dispel myths Meaningful interaction Contact hypothesis Decision-making accountability Use objective criteria in decision-making 95 Other Perceptual Errors Primacy First impressions Recency Most recent information dominates perceptions Halo One trait forms a general impression Projection Believing other people are similar to you 96 6-16 Fundamental Attribution Bias The tendency to attribute another person’s behavior to his or her personal characteristics. 97 6-17 Self-Serving Bias The tendency to take more personal responsibility for success than for failure. 98 Attribution Process Internal Attribution Perception that outcomes are due to motivation/ability rather than situation or fate External Attribution Perception that outcomes are due to situation or fate rather than the person 99 Rules of Attribution Internal Attribution Frequently Consistency Seldom Frequently Seldom Distinctiveness Consensus Seldom Frequently External Attribution 100 Attribution Errors Fundamental Attribution Error attributing own actions to external factors and other’s actions to internal factors Self-Serving Bias attributing our successes to internal factors and our failures to external factors 101 Self-Fulfilling Prophecy Cycle Supervisor forms expectations Employee’s behavior matches expectations Expectations affect supervisor’s behavior Supervisor’s behavior affects employee 102 Other Perceptual Errors Primacy first impressions Recency most recent information dominates perceptions Halo one trait forms a general impression Projection believe other people do the same things or have the same attitudes as you 103 Summary of Perceptual Errors Fundamental Attribution Error Halo Effect Similar-to-me Stereotyping Selective Perception Perceptual Readiness Projection First Impression 104 Improving Perceptions Empathy Sensitivity to the feelings, thoughts, and situation of others Cognitive and emotional component Self-awareness Awareness of your values, beliefs and prejudices Applying Johari Window 105 Know Yourself (Johari Window) Feedback Known to Self Known to Others Disclosure Open Area Open Area Hidden Area Hidden Unknown to Others Area 106 Unknown to Self Blind Area Blind Area Unknown Unknown Area Area Definition of Learning A relatively permanent change in behavior (or behavior tendency) that occurs as a result of a person’s interaction with the environment 107 Behavior Modification We “operate” on the environment alter behavior to maximize positive and minimize adverse consequences Learning is viewed as completely dependent on the environment Human thoughts are viewed as unimportant 108 A-B-Cs of Behavior Modification Antecedents Behavior Consequences What happens before behavior What person says or does What happens after behavior Machine operator turns off power Co-workers thank operator Example Warning light flashes 109 Contingencies of Reinforcement Consequence is introduced No consequence Behavior Positive increases/ maintained reinforcement Behavior decreases Punishment 110 Consequence is removed Negative reinforcement Extinction Punishment What Is Learning? Social Learning Classical Conditioning 111 Operant Conditioning Positive Reinforcement Negative Reinforcement Methods of Shaping Behavior Punishment 112 Extinction Reinforcement contingencies -Consequences Positive reinforcement people learn to perform behaviors leading to the the desired outcomes Negative reinforcement (avoidance) people learn to perform acts that lead to the removal of undesired events Punishment decreasing undesirable behavior by following it with undesirable consequences Extinction responses that are no longer reinforced tend to gradually diminish in strength. 113 360 Degree Feedback Supervisor Customer Co-worker Evaluated Employee Subordinate Project leader Co-worker Subordinate Subordinate 114 Giving Feedback Effectively Specific Relevant Effective Feedback Credible Frequent Timely 115 Schedules of Reinforcement 1 2 Behaviors 3 4 5 6 7 8 9 Continuous Fixed ratio Variable ratio Time (Days) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Fixed interval Variable interval 116 Behavior Modification Limitations • More difficult to apply to conceptual activities • Reward inflation • Ethical concern that variable ratio schedule is a lottery • Behaviorist philosophy vs. learning through mental processes 117 Social Learning Theory Behavioral modeling Observing and modeling behavior of others Learning behavior consequences Observing consequences that others experience Self-reinforcement Reinforcing our own behavior with consequences within our control 118 Experiential Learning in Warwick, RI These Warwick, Rhode Island, fire department recruits are recapping an experiential learning exercise in which their task was to control the fire and save victims (dummies lying on the ground in this photo). © Bill Murphy/The Providence Journal 119 Developing a Learning Orientation Value the generation of new knowledge. Reward experimentation. Recognize mistakes as part of learning. Encourage employees to take reasonable risks. 120 Action Learning Experiential learning in which employees are involved in a ‘real, complex and stressful problem’, usually in teams, with immediate relevance to the company Concrete experience Learning meetings Team conceptualizes and applies a solution to a problem 121 4 Workplace Emotions and Attitudes 122 Positive Emotions at Pike Place © AP Photo/Elaine Thompson Employees at Pike Place Fish Market in Seattle turned a money-losing, morale-draining business into a worldfamous attraction by deciding to have fun at work, such as tossing fish and joking with customers. 123 Emotions Defined © AP Photo/Elaine Thompson Psychological and physiological episodes experienced toward an object, person, or event that create a state of readiness. 124 What Are Emotions? Affect Emotions 125 Moods Emotions and Attitudes at Wegmans Courtesy of Wegmans Food Markets Wegmans Food Market enjoys strong customer loyalty and low employee turnover by keeping employees happy. Shown here, CEO Danny Wegman meets with staff during a new store opening. 126 Emotions Defined Courtesy of Wegmans Food Markets Psychological, behavioral, and physiological episodes experienced toward an object, person, or event that create a state of readiness. 127 Serious Fun at CXtex Cxtec employees live up to their company values, which include having fun at work. Courtesy of CXtec 128 Helium-filled balloons adorn the office. Break room with billiards, foosball, and air hockey. Miniature golf tournaments in the office, tricycle races around the building, and “CXtec Idol” competitions. Generating Positive Emotions at Work The emotions-attitudesbehavior model illustrates that attitudes are shaped by ongoing emotional experiences. Thus, successful companies actively create more positive than negative emotional episodes. Courtesy of CXtec 129 Happy Staff, Happy Customers at Outback Outback Steakhouse is successful in part because it applies the principle that happy employees make happy customers, which result in happy shareholders. Courtesy of Outback Steakhouse 130 Emotions and OB Applications Ability and Selection Deviant Behavior Leadership Decision Making Motivation Interpersonal Conflict 131 Emotional Intelligence at VA Medical Medical professionals at Jerry L. Pettis Memorial VA Medical Center in Loma Linda, California attend special classes where they receive their personal emotional intelligence profile and learn to improve their EQ. 132 Emotional Intelligence Dimensions SelfAwareness Social Skill Emotional Intelligence SelfRegulation SelfMotivation Empathy 133 Types of Emotions Activated Negative Activated Positive Astonished Fearful Elated Sad Unpleasant Pleasant Bored Cheerful Content Tranquil 134 Attitudes versus Emotions Attitudes Emotions Judgments about an attitude object Experiences toward an attitude object Based mainly on rational logic Based on awareness of our senses Usually stable for days or longer Occur briefly, usually lasting minutes 135 Emotions, Attitudes and Behavior Perceived Environment Beliefs Attitude Emotional Episodes Feelings Behavioral Intentions Behavior 136 Emotional Labor Effort, planning and control needed to express organizationally desired emotions during interpersonal transactions. Emotional labor higher when job requires: frequent and long duration display of emotions displaying a variety of emotions displaying more intense emotions. Influenced by culture and other situational factors 137 Emotional Labor Issues Difficult to hide true emotions, especially anger Emotional dissonance Conflict between true and required emotions Potentially stressful with surface acting Less stress through deep acting 138 Emotional Intelligence Ability to perceive and express emotion, assimilate emotion in thought, understand and reason with emotion, and regulate emotion in oneself and others. 139 Model--Emotional Intelligence Highest Relationship Managing other people’s Management emotions Social Awareness Understanding and sensitivity to the feelings, thoughts, and situation of others Controlling or redirecting our Selfinternal states, impulses, and management resources Lowest Selfawareness Understanding your own emotions, strengths, weaknesses, values, and motives 140 Improving Emotional Intelligence Emotional intelligence is a set of competencies (aptitudes, skills). Can be learned, especially through coaching. EI higher in people with extroversion, conscientiousness, agreeableness, emotional stability, and low neuroticism. 141 Job Satisfaction A person's evaluation of his or her job and work context. A collection of attitudes about specific facets of the job. Job Content Job Satisfaction Career Progress Pay and Benefits 142 Supervisor Co-workers Working Conditions EVLN: Responses to Dissatisfaction Exit Voice • Leaving the situation • Quitting, transferring • Changing the situation • Problem solving, complaining Loyalty • Patiently waiting for the situation to improve Neglect • Reducing work effort/quality • Increasing absenteeism 143 Job Satisfaction and Performance Happy workers are somewhat more productive workers, but: General attitude is a poor predictor of specific behaviors Job performance affects satisfaction only when rewarded Job satisfaction and motivation have little effect in jobs with little employee control (e.g. assembly lines) 144 Job Satisfaction at Ipswitch Inc. Roger Greene (center), CEO of software maker Ipswitch Inc., believes that if employees are treated well they will treat customers well, resulting in profits J. Wilcox, Boston Globe 145 Job Satisfaction and Customers Job satisfaction increases customer satisfaction and profitability because: Job satisfaction J. Wilcox, Boston Globe 146 affects mood, leading to positive behaviors toward customers Less employee turnover, resulting in more consistent and familiar service Employee-Customer-Profit Chain Company Practices Satisfied Employees • Less turnover Customer’s Perceived Value • Consistent service • Satisfied customers • Customer referrals Higher Revenue Growth and Profits 147 Organizational Commitment Affective commitment Emotional attachment to, identification with, and involvement in an organization Continuance commitment Belief that staying with the organization serves your personal interests 148 Building Organizational Commitment Provide justice and support Provide some job security Support organizational comprehension Involve employees in decisions Build trust 149 Psychological Contract Defined Beliefs about the terms and conditions of a reciprocal exchange between that person and other party 150 5 Motivation in the Workplace 151 The Motivation Process Unsatisfied Need Tension Drives Behavior Satisfied Need Reduction of Tension 152 What Is Motivation? Direction Intensity Persistence 153 A Motivation Model Individual Skills MOTIVE Motivational Processes GOAL DIRECTED BEHAVIOR GOAL BEHAVIOR Outside Individual GOAL 154 Maslow’s Need Hierarchy Physiological Most basic need. Safety Consists of the need to be safe. Love The desire to love and be loved. 155 Esteem Need for reputation, prestige, and recognition from others. SelfActualizatio n Desire for selffulfillment. Needs Hierarchy Theory • Maslow arranged five needs in a hierarchy SelfActualization • Satisfactionprogression process Esteem • People who experience selfactualization desire more rather than less of this need Belongingness Safety Physiological • Not much support for Maslow’s theory 156 Maslow’s Hierarchy of Needs Self Esteem Social Safety Physiological 157 Motivation Through Recognition Courtesy Sanova Panafric Hotel Panfric Hotel general manager David Gachuru (shown in photo giving an award to employee Matayo Moyale) motivates employees with good old-fashioned praise and recognition. 158 Goal Setting at Speedera Speedera Networks employees achieved a challenging revenue goal in one quarter, for which all employees in California and India were rewarded with a free Hawaiian trip. 159 Courtesy of Akamai Need for Achievement The Theory of Needs (nAch) Need for Power (nPow) Need for Affiliation David McClelland (nAff) 160 Two-Factor Theory of JobSatisfaction Hygiene factors • Quality of supervision • Pay • Company policies • Physical working conditions • Relations with others • Job security Job Dissatisfaction Motivators • Promotion opportunities • Opportunities for personal growth • Recognition • Responsibility • Achievement Job Satisfaction 161 Motivation Through Recognition Julie Hans holds up the award coupons that Progress Energy employees give to one another as recognition for their good work and support. Recognition is one of the best ways to motivate employees. 162 © H. Lynch/Raleigh News and Observer Challenges of Motivating Employees Layoffs, restructuring Damaged trust, commitment Flatter organizations Fewer supervisors to monitor performance Changing workforce Younger employees have different needs Diverse workforce 163 ERG Theory Needs Hierarchy Theory SelfActualization • Alderfer’s model has three sets of needs ERG Theory Growth • Adds frustration-regression process to Maslow’s model Esteem Belongingness Safety Relatedness • Somewhat more research support than Maslow’s theory Existence Physiological 164 Alderfer’s ERG Theory Existence Growth Relatedness 165 Innate Drives Theory Drive to Acquire • Need to take/keep objects and experiences • Basis of hierarchy and status Drive to Bond • Need to form relationships and social commitments • Basis of social identity Drive to Learn • Need to satisfy curiosity and resolve conflicting information • Basis of self-actualization Drive to Defend • Need to protect ourselves • A reactive (not proactive) drive • Basis of fight or flight 166 Innate Drives and Motivation Emotional brain center relies on innate drives to assign emotional markers to incoming information Emotional markers influence rational thoughts and become the conscious sources of motivation 167 Learned Needs Theory Some needs are learned, not innate Need for achievement Desire for challenging and somewhat risky goals, feedback, recognition Need for affiliation Desire to seek approval, conform, and avoid conflict Try to project a favorable self-image Need for power Desire to control one’s environment Personalized versus socialized power 168 Recognition v. Money at Encana Many Encana employees who received a “High Five” card from co-workers displayed them in their offices rather than redeem them for the $5 value. This small symbol of recognition was worth far more than the monetary value of the cards. 169 Courtesy of Encana Corp. Implications of Needs Theories • Organizations need to support employees to achieve a balance of their innate needs. • People have different needs at different times. • Offer employees a choice of rewards Courtesy of Encana Corp. • Do not rely too heavily on financial rewards. 170 Expectancy Theory of Motivation P-to-O Expectancy E-to-P Expectancy Outcomes & Valences Outcome 1 + or - Effort Performance Outcome 2 + or - Outcome 3 + or - 171 Increasing E-to-P Expectancy • Train employees. • Select people with required competencies . • Provide role clarification. • Provide sufficient resources. • Provide coaching and feedback. 172 Increasing P-to-O Expectancy • Measure performance accurately. • Describe outcomes of good and poor performance. • Explain how rewards are linked to past performance. 173 Increasing Outcome Valences • Ensure that rewards are valued. • Individualize rewards. • Minimize countervalent outcomes. 174 Effective Goal Setting Specific Relevant Challenging Task Effort Commitment Participation Feedback 175 Task Performance Goal Difficulty and Performance Task Performance High Low Area of Optimal Goal Difficulty Moderate Challenging Goal Difficulty 176 Impossible Characteristics of Effective Feedback Specific Credible Effective Feedback Sufficiently frequent Relevant Timely 177 Multisource (360-degree) Feedback Supervisor Customer Co-worker Evaluated Employee Subordinate Project leader Co-worker Subordinate Subordinate 178 Inequity of British “Fat Cats” British protesters (including company employees) express their anger over unfair executive pay by dressing as “fat cats” in business suits outside the company’s annual general meetings. © Simon Clark 179 Elements of Equity Theory Outcome/input ratio inputs -- what employee contributes (e.g., skill) outcomes -- what employee receives (e.g., pay) Comparison other person/people against whom © Simon Clark we compare our ratio not easily identifiable Equity evaluation compare outcome/input ratio with the comparison other 180 Keeping Pay Equitable at Costco Costco Wholesale CEO Jim Sinegal (shown in this photo) thinks the large wage gap between many executives and employees is blatantly unfair. “Having an individual who is making 100 or 200 or 300 times more than the average person working on the floor is wrong,” says Sinegal, whose salary and bonus are a much smaller multiple of what his staff earn. 181 Overreward vs Underreward Inequity Comparison Other Overreward Inequity Outcomes Outcomes Inputs Underreward Inequity You Inputs Outcomes Outcomes Inputs 182 Inputs Elements of Equity Theory Outcome/input ratio inputs -- what employee contributes (e.g., skill) outcomes -- what employee receives (e.g., pay) Comparison other person/people against whom we compare our ratio not easily identifiable Equity evaluation compare outcome/input ratio with the comparison other 183 Consequences of Inequity • Change inputs. • Change outcomes. • Change perceptions. • Leave the field. • Act on the comparison other. • Change the comparison other. 184 What Is Learning? Social Learning Classical Conditioning 185 Operant Conditioning Positive Reinforcement Negative Reinforcement Methods of Shaping Behavior Punishment Extinction 186 Reinforcement contingencies - relationships between a person’s behavior and the consequences resulting from it Positive reinforcement -people learn to perform behaviors leading to the the desired outcomes Negative reinforcement (avoidance) people learn to perform acts that lead to the removal of undesired events Punishment - decreasing undesirable behavior by following it with undesirable consequences Extinction - process through which responses that are no longer reinforced tend to gradually diminish in strength 187 Multi-Source (360 Degree) Feedback Supervisor Customer Co-worker Evaluated Employee Subordinate Project leader Co-worker Subordinate Subordinate 188 Giving Feedback Effectively Specific Relevant Effective Feedback Credible Frequent Timely 189 Motivation at Capital One Capital One has a motivated workforce by hiring people with an entrepreneurial spirit, challenging them through stretch goals, and continually evaluating individual and organizational performance. 190 Little Ambition Theory X Workers Dislike Work Avoid Responsibility Self-Directed Theory Y Workers Enjoy Work Accept Responsibility 191 6 Applied Performance Practices 192 WestJet Motivates Employees WestJet employees are highly motivated through profit sharing and stock options, empowerment, job design, and selfleadership. 193 Canadian Press Courtesy of WestJet The Meaning of Money Money and employee needs Affects existence, drive to acquire, growth needs, as well as need for achievement Money attitudes and values Money ethic -- not evil, represents success, should be budgeted carefully Money and social identity © Corel Corp.Corp. WithWith permission © Corel permission. Partly defines who we are 194 Types of Rewards in the Workplace Membership and seniority Job status Competencies Performance-based © Corel Corp.Corp. WithWith permission © Corel permission. 195 Membership/Seniority Based Rewards Fixed wages, seniority increases Advantages Guaranteed wages may attract job applicants Seniority-based rewards reduce turnover Disadvantages Doesn’t motivate job performance Discourages poor performers from leaving May act as golden handcuffs 196 Job Status-Based Rewards Includes job evaluation and status perks Advantages: Job evaluation tries to maintain pay equity Motivates competition for promotions Disadvantages: Employees exaggerate duties, hoard resources Focuses employees on own jobs, not customers Inconsistent with flatter organizations 197 Competency-Based Rewards Pay increases with competencies acquired and demonstrated Skill-based pay Pay increases with skill modules learned Advantages More flexible work force, better quality, consistent with employability Disadvantages Potentially subjective, higher training costs 198 Performance-Based Rewards • Organizational • rewards • • Stock options Profit sharing Stock ownership Balanced Scorecard • Bonuses Team • Gainsharing rewards • Open book • Bonuses Individual • Commissions rewards • Piece rate 199 Performance Reward Effectiveness Positive effects • Create an “ownership culture” • Adjusts pay with firm's prosperity Concerns with performance pay • May undermine intrinsic motivation • Sometimes used as quick fixes 200 Improving Reward Effectiveness • Link rewards to performance. • Ensure rewards are relevant. • Team rewards for interdependent jobs. • Ensure rewards are valued. • Watch out for unintended consequences. © Corel Corp.Corp. WithWith permission © Corel permission. 201 Job Design •Assigning tasks to a job, including the interdependency of those tasks with other jobs •Constantly changing due to changing technology and psychological contracts (especially employability) 202 Evaluating Job Specialization Advantages Disadvantages •Job boredom •Less time changing activities •Discontentment pay •Lower training costs •Higher costs •Job mastered quickly •Lower quality •Better person-job matching •Lower motivation 203 Job Characteristics Model Core Job Characteristics Critical Psychological States Outcomes Work motivation Skill variety Task identity Task significance Meaningfulness Autonomy Responsibility General satisfaction Feedback from job Knowledge of results Work effectiveness Growth satisfaction Individual differences 204 Job Enrichment in Wine Making Mike Just has an enriched job as wine maker at Lawson’s Dry Hills Winery in New Zealand. “[W]e plant vines here, we pick them, we make the wine on site and bottle it, then sell them to customers who come in,” explains Just, who also enjoys jousting. 205 © Marlborough Express (N.Z.). Job Design Strategies Job rotation Moving to different jobs Job enlargement Adding more tasks to a job Job enrichment Giving employees more autonomy over their job 206 © Marlborough Express (N.Z.). Job Rotation Moving from one job to another Job ‘A’ Benefits Job ‘B’ Minimizes repetitive strain injury Multiskills the workforce Potentially reduces job boredom Job ‘D’ Job ‘C’ 207 Job Rotation vs. Job Enlargement Video journalist • Operates camera • Operates sound • Reports story Job Rotation Job 1 Operate Camera Job 2 Operate Sound Job 3 Report Story Job Enlargement Job 1 Job 2 Job 3 Operate Camera Operate Sound Report Story Operate Camera Operate Sound Report Story Operate Camera Operate Sound Report Story 208 Job Enrichment Given more responsibility for scheduling, coordinating, and planning one’s own work 1. Clustering tasks into natural groups Stitching highly interdependent tasks into one job e.g., video journalist, assembling entire product. 2. Establishing client relationships Directly responsible for specific clients Communicate directly with those clients 209 Dimensions of Empowerment Selfdetermination Meaning Employees feel they have freedom and discretion. Employees believe their work is important. Competence Employees have feelings of self-efficacy. Impact Employees feel their actions influence success. 210 Creating Empowerment Individual factors Possess required competencies, able to perform the work Job design factors Autonomy, task identity, task significance, job feedback Organizational factors Resources, learning orientation, trust 211 Self-Leadership Self-direction. Self-motivation needed to perform a task. Goal setting. Social learning theory. Sports psychology. 212 7 Work-Related Stress and Stress Management 213 High Stress in Electronic Games Josh Holmes has fond memories of working at electronic games giant Electronic Arts, but admits that the long hours were stressful. “From the minute I joined the company (EA), I put every waking hour of my day into my work…It definitely took its toll,” says Holmes, who now runs an electronic games company that emphasizes work-life balance. 214 Blackberry Divorce Calgary Herald/Mikael Kjellstrom Nick Salaysay (shown in photo) admits that his work routinely gets mixed in with his personal time. “I have a BlackBerry, so I check my e-mail a lot when I'm supposed to be on vacation," says the corporate lawyer. Research indicates that when electronic devices spill work into home life, they increase the risk of strainbased stress. 215 Work-Nonwork Stressors Time-based conflict due to business travel, inflexible and/or rotating work schedules for women -- still do most household chores Strain-based conflict work stress affects home, and vice versa Role behavior conflict Calgary Herald/Mikael Kjellstrom incompatible work and family roles 216 Individual Differences in Stress Different threshold levels of resistance to stressor Use different stress coping strategies Perceive the situation differently Knowledge and skill Natural optimism and confidence (resilience) © Photodisc. With permission. 217 Stress Mgt. At Liggett-Stashower When employees at LiggettStashower, Inc. in Cleveland need a short break from the daily stresses of work, they retreat to one of three theme rooms, including this karaoke room. “The higher the stress level, the more singing there is going on,” says Courtesy of Liggett Stashower, Inc. Liggett’s art director. 218 Withdraw from the Stressor Permanent withdrawal Remove employees from jobs not aligned with their competencies Temporary withdrawal Courtesy of Liggett Stashower, Inc. Coffee/lunch breaks Karaoke breaks (photo) Sabbaticals 219 Stress in Hong Kong SARS Ward © AP Photo/Vincent Yu These medical professionals at Prince of Wales Hospital in Hong Kong were on the frontline, treating patients with the SARS virus, which claimed over 800 lives and created high stress levels among nurses and doctors. 220 What is Stress? © AP Photo/Vincent Yu An adaptive response to a situation that is perceived as challenging or threatening to the person’s well-being 221 General Adaptation Syndrome Stage 1 Alarm Reaction Stage 2 Resistance Normal Level of Resistance 222 Stage 3 Exhaustion Stressors and Stress Outcomes Work Stressors Individual Differences Physical environment Consequences of Stress Physiological Stress Role-related Interpersonal Behavioral Psychological Organizational Nonwork Stressors 223 Causes of Stress Outside Work Hassles of daily life Stressful life events 224 Stressful Life Events Event Relative Stressfulness Pregnancy 40 Death of a close friend 37 Son or daughter leaving home 29 Trouble with in-laws 28 Trouble with boss 23 Change in residence 20 Vacation 13 Christmas 12 Minor violations of the law 225 11 12 Stressful Life Events Event Relative Stressfulness Death of a spouse 100 Divorce 73 Marital separation 65 Jail term 63 Death of a close family member 63 Personal injury or illness 53 Marriage 50 Fired from a job 47 Retirement 45 226 11 Work-Related Causes of Stress •Occupational demands •Conflict between work and non-work activities •Role conflict •Role overload •Role- ambiguity •Responsibility for others •Lack of social support •Sexual harassment 227 Sexual Harassment Unwelcome conduct -- detrimental effect on work environment or job performance Quid pro quo employment or job performance is conditional on unwanted sexual relations Hostile work environment an intimidating, hostile, or offensive working environment 228 Workplace Violence and Bullying Workplace violence Interpersonal stressor Experiencing or observing violence or awareness of working in high-risk job Workplace bullying Offensive, intimidating, or humiliating behavior that degrades, ridicules or insults Higher authority people tend to bully employees in lower positions Women more likely to be victims of bulling 229 Role-Related Stressors Role conflict interrole conflict intrarole conflict person-role conflict Role ambiguity uncertain task and social expectations Work overload increased hours and intensity © Photodisc. With permission. 230 Task Control Stressors Stress increases when employees lack control over: How and when tasks are performed Pace of work activity Low task control is a higher stressor when job also has high responsibility 231 Stressors in the Forest Industry Ken Wiley (shown) and other logging workers have faced the physical environment stressors of dangerous work for many years. Now, they also face the organizational stressors of change and job insecurity. VancouverSun 232 Additional Work Stressors Organizational Due to reducing job security and restructuring Physical Environment VancouverSun 233 Due to excessive noise, poor lighting and hazards Work-Nonwork Stressors Time-based conflict due to business travel, inflexible and/or rotating work schedules for women -- still do most household chores Strain-based conflict work stress affects home, and vice versa Role behavior conflict incompatible work and family roles 234 Stress and Occupations Accountant Hospital manager Police officer Artist Physician (GP) Tel. operator Auto Mechanic Psychologist Prime Minister Forester School principal Waiter/waitress Low-Stress Occupations Medium-Stress Occupations 235 High-Stress Occupations Individual Differences in Stress Perceive the situation differently Different threshold levels of resistance to stressor Use different stress coping strategies © Photodisc. With permission. 236 Type A/B and Workaholism Type A/Type B behavior patterns Type A are hard-driving, competitive, more prone to stress Workaholism Stereotypic workaholics Enthusiastic workaholics Work enthusiasts 237 •Consequences of Stress Physiological Cardiovascular disease, hypertension, headaches Behavioral Work performance, accidents, absenteeism, aggression, poor decisions Psychological Dissatisfaction, moodiness, depression, emotional fatigue 238 Job Burnout Process Interpersonal and Role-Related Stressors Emotional Exhaustion Physiological, psychological, and behavioral consequences Cynicism Reduced Efficacy 239 Managing Stress: Some Effective Techniques •Personal Approaches • Lifestyle management • Diet--Exercise • • • • • • Assertiveness Time Management Breathing Exercises Biofeedback Meditation Muscle relaxation 240 Dimensions of a Holistic Self-Responsibility 18-12 Wellness Approach Nutritional Awareness Stress Reduction and Relaxation Physical fitness Go to http://www.nervousnelly.com 241 Organization Based Family support Stress management programs Time management EAP’s 242 Stress Management Strategies Remove the Stressor Receive Social Support Stress Management Stratagies Withdraw from the Stressor Change Stress Perceptions Control Stress Consequences 243 Organizational Stress Management Goal Setting Wellness Programs Job Redesigning Organizational Communication Employee Involvement Selection and Placement 244 Time Management Physical Exercise Individual Stress Management Relaxation Training Social Support 245 Remove the Stressor Stress audits -- investigate sources of stress Change corporate culture and reward system Provide environment that supports empowerment Person-job matching Family-friendly & work-life initiatives Flexible work time Job sharing Telecommuting Personal leave Childcare facilities 246 Other Stress Mgt Strategies Change stress perceptions Self-efficacy, self-leadership, Control stress consequences Relaxation and meditation Fitness and wellness programs Social support Emotional and informational 247 Stress Mgt. At Liggett-Stashower When employees at LiggettStashower, Inc. in Cleveland need a short break from the daily stresses of work, they retreat to one of three theme rooms, including this karaoke room. “The higher the stress level, the more singing there is going on,” says Liggett’s art director. Courtesy of Liggett Stashower, Inc. 248 Withdraw from the Stressor Permanent withdrawal Remove employees from jobs not aligned with their competencies Temporary withdrawal Courtesy of Liggett Stashower, Inc. 249 Coffee/lunch breaks Karaoke breaks (photo) Sabbaticals Work-Life Balance at Ford Motor Mark-Tami Hotta is engaged in a rousing game of Daddy Elephant/Baby Elephant with his kids. The chief program engineer for the Ford Windstar minivan leaves work early three days each week as part of the company’s effort to improve work-life balance. 250 © D. Guralnick, Detroit News Family-Friendly and Work-Life Initiatives Flexible work time Job sharing Telecommuting Personal leave Childcare facilities © D. Guralnick, Detroit News 251 252 253