BUS7000
Organizational Behavior &Theory
Week 4
Dr Jenne Meyer
1
6-1
Article Analysis
2
6-2
Videos for week 3 content

Emotional Intelligence:
http://www.mhhe.com/business/management
/videos/POM_V2/Flashvideo/EmotionsinChe
ck.html

3
6-3
Applied
Performance
Practices
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Meaning of Money in the Workplace

Money means different things
to people
• symbol of success
• reinforcer and motivator
• reflection of performance
• Source of less/more anxiety

Differences in meaning of
money by gender and culture

Money is an important
motivator
6-5
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 (tie people to the job)
6-6
Job Status-Based Rewards

Includes job evaluation and status perks

Advantages:
• Job evaluation tries to maintain fairness
• Motivates competition for promotions

Disadvantages:
• Employees exaggerate duties, hoard resources
• Reinforces status
• Encourage hierarchy, might undermine cost-
efficiency and responsiveness
6-7
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
6-8
Organizational Rewards

Types of organizational rewards
• Organizational bonuses (e.g. company trips)
• Employee stock ownership plans (ESOPS)
• Stock options
• Profit-sharing plans

Evaluating organizational rewards
• Creates an “ownership culture”
• Adjusts pay with firm's prosperity
• Weak link between individual effort and rewards
• Rewards affected by external forces
6-9
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
6-10
Unintended Consequences of
Rewards at TransSantiago

Transit bus drivers in Santiago,
Chile were paid by the number
of passengers
• Motivated starting work on time,
shorter breaks, efficient driving,
ensuring passengers paid fares

Unintended consequences
• Traffic accidents -- reckless driving to
next stop, cut off competing buses
• Passenger injuries/deaths – doors
left open, buses departed before all
on board
• Drove past stops with only one
passenger waiting
6-11
Job Design

Assigning tasks to a job,
including the interdependency
of those tasks with other jobs

Organization's goal -- to create
jobs that can be performed
efficiently yet employees are
motivated and engaged
6-12
Job Specialization

Dividing work into separate jobs, each with a subset
of tasks required to complete the product/service

Scientific management
• Frederick Winslow Taylor
• Champion of job specialization
• Taylor also emphasized person-job matching, training, goal
setting, work incentives
6-13
Evaluating Job Specialization
Advantages




Less time changing
activities
Lower training costs
Job mastered quickly
Better person-job
matching
Disadvantages





Job boredom
Discontentment pay
Higher costs
Lower quality
Lower motivation
6-14
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
6-15
Improving Task Significance
Through Voice of the Customer
Rolls Royce Engine Services
improved task significance
through their “Voice of the
Customer” program, in which
customers talk to production staff
about how the quality of their
engine maintenance work is
important to customers.
6-16
Videos for debate

http://highered.mcgrawhill.com/sites/0078112648/instructor_view0/asset_gallery.htm

Performance commitment
• Stop slacking:
http://www.mhhe.com/business/management/videos/NBC/Flash/N
BC_are_we_wrkng_hard_enough.html
• Working smart:
http://www.mhhe.com/business/management/videos/BW/Flash/BW
_Working_Smart.html
• Keep the best employees:
http://www.mhhe.com/business/management/videos/Noe/sas.html
6-17
Job Rotation

Moving from one job to
another

Benefits
Job ‘A’
1. Minimizes repetitive strain
injury
2. Multiskills the workforce
3. Potentially reduces job
boredom
Job ‘B’
Job ‘D’
Job ‘C’
6-18
Job Enlargement
Adding tasks to an existing job
Example: video journalist
Traditional news team
Employee 1
Operates camera
Employee 2
Operates sound
Video journalist
• Operates camera
• Operates sound
• Reports story
Employee 3
Reports story
6-19
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
6-20
Dimensions of Empowerment
Selfdetermination
Employees feel they have
freedom and discretion
Meaning
Employees believe their work is
important
Competence
Employees have feelings of selfefficacy
Impact
Employees feel their actions
influence success
6-21
Supporting 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
6-22
Self-Leadership
The process of influencing oneself to establish the selfdirection and self-motivation needed to perform a task
Includes concepts/practices from goal setting, social
cognitive theory, and sports psychology
Self-leadership at
Bayer CropScience
6-23
Elements of Self-Leadership
Personal
Goal Setting
Constructive
Thought
Patterns
Designing
Natural
Rewards
SelfMonitoring
SelfReinforcement
Personal goal setting
Employees set their own goals
Apply effective goal setting practices
6-24
Elements of Self-Leadership
Personal
Goal Setting
Constructive
Thought
Patterns
Designing
Natural
Rewards
SelfMonitoring
SelfReinforcement
Positive self-talk
• Talking to ourselves about thoughts/actions
• Potentially increases self-efficacy
Mental imagery
• Mentally practicing a task
• Visualizing successful task completion
6-25
Elements of Self-Leadership
Personal
Goal Setting
Constructive
Thought
Patterns
Designing
Natural
Rewards
SelfMonitoring
SelfReinforcement
Finding ways to make the job itself more motivating
• e.g. altering the way the task is accomplished
6-26
Elements of Self-Leadership
Personal
Goal Setting
Constructive
Thought
Patterns
Designing
Natural
Rewards
SelfMonitoring
SelfReinforcement
Keeping track of your progress toward the self-set goal
• Looking for naturally-occurring feedback
• Designing artificial feedback
6-27
Elements of Self-Leadership
Personal
Goal Setting
Constructive
Thought
Patterns
Designing
Natural
Rewards
SelfMonitoring
SelfReinforcement
“Taking” a reinforcer only after completing a self-set goal
• e.g. Watching a movie after writing two more sections of a report
• e.g. Starting a fun task after completing a task that you don’t like
6-28
Self-Leadership Contingencies

Individual factors
• Higher levels of conscientiousness and
extroversion
• Positive self-evaluation (self-esteem, self-efficacy,
internal locus)

Organizational factors
• Job autonomy
• Participative and trustworthy leadership
• Measurement-oriented culture
6-29
8
Team
Dynamics
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
What are Teams?
 What
are teams?
 Why do teams exist?
6-31
What are Teams?
 Groups
of two or more people
 Exist to fulfill a purpose
 Interdependent -- interact and influence each other
 Mutually accountable for achieving common goals
 Perceive themselves as a social entity
6-32
Many Types of Teams
•
Departmental teams
•
Task force (project)
teams
•
Production/service/
leadership teams
•
Skunkworks
•
Self-directed teams
•
Virtual teams
•
Advisory teams
•
Communities of
practice
6-33
Videos for review

http://www.mhhe.com/business/management
/videos/NBC/Flash/NBC_airline_workers_lea
rn_NASCAR.html
 http://www.mhhe.com/business/management
/videos/POM_V2/Flashvideo/PowertoChange
.html
McShane/Von Glinow OB 6e
34
6-34
© 2013 The McGraw-Hill Companies, Inc. All rights reserved
Informal Groups

Groups that exist primarily for the benefit of
their members

Reasons why informal groups exist:
1. Innate drive to bond
2. Social identity -- we define ourselves by group
memberships
3. Goal accomplishment
4. Emotional support
6-35
Advantages/Disadvantages of
Teams

Advantages
1. Make better decisions, products/services
2. Better information sharing
3. Increase employee motivation/engagement
- Fulfills drive to bond
- Accountable to team members, who monitor performance
- Team members are benchmarks of comparison

Disadvantages
1. Individuals better/faster on some tasks
2. Process losses
3. Social loafing
6-36
How to Minimize Social Loafing

Make individual performance more visible
• Form smaller teams
• Specialize tasks
• Measure individual performance

Increase employee motivation
• Increase job enrichment
• Select motivated employees
6-37
Team Effectiveness Model
Team Design
Organizational and
Team Environment
• Rewards
•Task characteristics
•Team size
•Team composition
Team Processes
• Org leadership
• Physical space
• Accomplish tasks
• Satisfy member
needs
• Communication
• Org structure
Team
Effectiveness
• Maintain team
survival
• Team development
• Team norms
• Team cohesiveness
• Team trust
6-38
PSA Peugeot Citroën’s Team Space
PSA Peugeot Citroën, Europe’s
second largest automaker, set
up an “obeya room” (shown
here) to speed up team decision
making. The room, which is
plastered with charts and notes
on key issues, creates a unique
team environment that
encourages face-to-face
interaction to quickly resolve
those issues.
6-39
Organization/Team Environment

Reward systems

Communication systems

Organizational structure

Organizational leadership

Physical space
6-40
Team’s Task Characteristics

Teams are better at tasks that:
• are sufficiently complex (require teamwork)
• can be divided into more specialized roles
requiring frequent coordination
• are well-structured (easier to coordinate)

Teams preferred with higher task
interdependence
• Extent that employees need to share materials,
information, or expertise to perform their jobs.
6-41
Levels of Task Interdependence
High
A
Reciprocal
B
Sequential
A
C
B
C
Resource
Pooled
Low
A
B
C
6-42
Team Size

Smaller teams are better because:
• need less time to coordinate roles and resolve
differences
• require less time to develop
• more member involvement, thus higher
commitment

But team must be large enough to
accomplish task
6-43
Team Composition


Effective team members
must be willing and able to
work on the team
Effective team members
possess specific
competencies
(5 C’s in diagram)
Conflict
Resolving
•Diagnose conflict
sources
•Use best conflicthandling strategy
Team Member
Competencies
Comforting
•Show empathy
•Provide psych
comfort
•Build confidence
Coordinating
•Align work
with others
•Keep team
on track
Communicating
•Share information
freely, efficiently,
respectfully
•Listen actively
6-44
Team Composition: Diversity

Team members have diverse knowledge, skills,
perspectives, values, etc.

Advantages
• view problems/alternatives from different perspectives
• broader knowledge base
• better representation of team’s constituents

Disadvantages
• take longer to become a high-performing team
• more susceptible to “faultlines”
• increased risk of dysfunctional conflict
6-45
Stages of Team Development
Performing
Norming
Storming
Forming
Existing teams
might regress
back to an
earlier stage of
development
Adjourning
6-46
Team Development as
Membership and Competence
Two central processes in team development
1. Team membership formation
• Transition from “them” to “us”
• Team becomes part of person’s social identity
2.
Team competence development
• Forming routines with others
• Forming shared mental models
6-47
Team Roles

A set of behaviors that people are expected
to perform

Some formally assigned; others informally

Informal role assignment occurs during team
development and is related to personal
characteristics
6-48
Team Building
 Formal
activities intended to
improve the team’s
development and functioning
 Types
of team building
• Clarify team’s performance goals
• Improve team’s problem-solving
skills
• Improve role definitions
• Improve relations
6-49
Team Norms

Informal rules and shared expectations team
establishes to regulate member behaviors

Norms develop through:
• Initial team experiences
• Critical events in team’s history
• Experience/values members bring to the team
6-50
Preventing/Changing Dysfunctional
Team Norms

State desired norms when forming teams

Select members with preferred values

Discuss counter-productive norms

Introduce team-based rewards that counter
dysfunctional norms

Disband teams with dysfunctional norms
6-51
Team Cohesion
•
The degree of attraction people feel toward
the team and their motivation to remain
members
•
Both cognitive and emotional process
•
Related to the team member’s social identity
6-52
Influences on Team Cohesion
Member
similarity
• Similarity-attraction effect
• Some forms of diversity have less effect
Team
size
• Smaller teams tend to be more cohesive
Member
interaction
• Regular interaction increases cohesion
• Calls for tasks with high interdependence
Somewhat
difficult entry
• Team eliteness increases cohesion
• But lower cohesion with severe initiation
Team
success
External
challenges
• Successful teams fulfill member needs
• Success increases social identity with team
• Challenges increase cohesion when not
overwhelming
6-53
Team Cohesion Outcomes
1.
Motivated to remain members
2.
Willing to share information
3.
Better social support
4.
Resolve conflict effectively
5.
Better interpersonal relationships
6.
Better performance
 But only if norms are aligned with org goals
 Also, effect of performance on cohesion might be
stronger than vice versa
6-54
Trust in Teams

Positive expectations one person has of
another person in situations involving risk

Three levels of trust

Swift trust
• New team members tend to have moderate or
higher trust in co-workers
• Trust is fragile in new relationships – based on
assumptions, not experience – so easily broken
6-55
Self-Directed Teams at Whole
Foods Markets
Whole Foods Markets organizes employees around selfdirected teams, responsible for a particular store area.
These teams have considerable autonomy to operate
their store section.
6-56
8-56
Self-Directed Teams Defined
Cross-functional groups organized around work
processes, that complete an entire piece of work
requiring several interdependent tasks, and that have
substantial autonomy over the execution of those tasks.
6-57
8-57
Self-Directed Team Success Factors

Responsible for entire work process

High interdependence within the team

Low interdependence with other teams

Autonomy to organize and coordinate work

Work site and technology support team
communication/coordination
6-58
Virtual Teams
Teams whose members operate across space,
time, and organizational boundaries and are
linked through information technologies to
achieve organizational tasks
• Increasingly possible because of:
- Information technologies
- Knowledge-based work
• Increasingly necessary because of:
- Organizational learning
- Globalization
6-59
Virtual Team Success Factors

Member characteristics
• Communication technology skills
• Self-leadership skills
• Emotional intelligence

Flexible use of communication technologies

Fairly high task structure

Opportunities to meet face-to-face
6-60
Team Decision Making Constraints

Time constraints
• Time to organize/coordinate
• Production blocking

Evaluation apprehension
• Belief that others are silently evaluating you

Peer pressure to conform
• Suppressing opinions that oppose team norms

Groupthink
• Tendency in highly cohesive teams to value consensus
at the price of decision quality
• Concept losing favor – study specific elements
6-61
General Guidelines for
Team Decisions
1.
Team norms should encourage critical
thinking
2.
Sufficient team diversity
3.
Ensure neither leader nor any member
dominates
4.
Maintain optimal team size
5.
Introduce effective team structures
6-62
Constructive Conflict

People focus their discussion on the issue
while maintaining respectfulness for others
having different points of view.

Problem: constructive conflict easily slides
into personal attacks
6-63
Week 4 wrap up

Questions?
 Assignments for next week
6-64