INDIVIDUAL DIFFERENCES Jensen Shoes JENSEN SHOES • What perceptual biases might have influenced interactions & behaviors? • How might an interactive self fulfilling prophecy have operated in this situation? • What would Brooks have had to do differently to result in a more effective working relationship? • What would Kravitz have had to do differently to result in a more effective working relationship? IMPROVING THE RELATIONSHIP: BROOKS • Communicate more frequently, directly, completely and openly before negative emotions build up. • Attempt to identify with the broader goals of the organization and demonstrate this to supervisor. • Make distinction between biased behavior that is knowing and that which is unconscious. • Seek first to understand! IMPROVING THE RELATIONSHIP: KRAVITZ • Verify own open-mindedness by asking herself questions • Ask more questions rather than assuming she knows what motivates direct reports or where their skills and interests lie. • Look beyond the surface when assessing others abilities and motivations. • Manage up as well as down the organization. • Reflect upon the negative ways that different styles, personalities and tendencies interact. • Seek first to understand! PERCEPTION IMPLICATIONS: OUR EMPLOYEES • Leaders must be attuned to: – The perceived realities of their team – The fact that perceived and objective realities may not mesh – The idea that people respond to the perceived reality • Managers must understand the attributions employees make. • No two people in the same situation will perceive it in exactly the same way. • Have conflicting parties describe their perceptions. INDIVIDUAL DIFFERENCES Personality PERSONALITY Unique set of traits and characteristics that are relatively stable over time and determine a person’s preferences and behavior. Does personality matter? Implication? Adjust styles/practices to the personality Consider personality when assigning jobs/teams Which dimensions of personality? Emotional Intelligence • Ability to detect, express, and manage emotion in oneself and others. Other Self (Social Competence) (Personal Competence) Recognition of emotions Self Awareness Regulation of emotions Self-Management Social Awareness (Empathy) Relationship Management (Social Skills) Emotional Intelligence • Some suggest that EI is the best predictor of work success • It’s “learnable” • It’s related to communication, motivation (self and others), effective leadership (Hendrie Weisinger, “Emotional Intelligence at Work” (Jossey-Bass, 1998). SELF-ESTEEM (SELF CONCEPT) How we perceive ourselves in terms of our abilities, competencies, and effectiveness Global, role-specific, job-based, organization-based High self esteem is related to higher performance, commitment, loyalty, and longevity. What can managers do to foster high self esteem in their employees? FOSTERING SELF-ESTEEM (SELF CONCEPT) Reaffirm, provide positive feedback Constructive criticism Empower/trust Theory? Small wins LOCUS OF CONTROL The extent to which people believe their actions determine what happens to them in life. Internal External Why is locus of control important? Performance? Incentive Systems? What can managers do to enhance employees’ locus of control? LOCUS OF CONTROL Ensure performance is under employee control Show Connection Attributions? THE “BIG FIVE” (CANOE): Conscientiousness The degree to which a person is dependable, organized, thorough, perseverant, honest Most consistent personality predictor of performance Also predicts lack of problem behavior THE “BIG FIVE”: Agreeableness The extent to which a person is polite, good natured, flexible, cooperative, trusting. May predict job performance in jobs… THE “BIG FIVE”: Agreeableness The extent to which a person is polite, good natured, flexible, cooperative, trusting. May predict job performance in jobs… Teamwork; customer relations THE “BIG FIVE”: Neuroticism (Emotional Stability) The degree to which a person is anxious, depressed, moody, emotionally unstable, temperamental. May predict job performance in what type of jobs? High stress (e.g., customer relations, public safety) THE “BIG FIVE”: Openness The degree to which a person is imaginative, curious, flexible, open to change. May predict job performance where? Rapid frequent change; Innovation Training THE “BIG FIVE”: Extraversion The degree to which a person is sociable, talkative, assertive, active, ambitious. May predict job performance in what type of jobs? THE “BIG FIVE”: Extraversion The degree to which a person is sociable, talkative, assertive, active, ambitious. May predict job performance in what type of jobs? – Extensive interaction (management, sales) JUNGS TYPOLOGY • 16 personality types based on 4 sets of preferences • Extraversion vs. Introversion • Sensation vs. Intuition (N)—Perception – How a person becomes aware of ideas, facts – Sensation: practical, orderly, precise, unambiguous – Intuition: future oriented, dislike precision--jump to conclusions, inspiration • Thinking vs. Feeling—Judgment – Making judgments about perceptions – Thinking: Analytic and logical, impersonal; principles over people – Feeling: Subjective on the basis of values; • Perception vs. Judgment SELF-PERCEPTION • For each individual, discuss: – Have you taken the assessment before? If so, were the results the same? – Do you agree with the results? – Do group members agree with your results? – Were there any differences between self perceptions and perceptions of others? – What do the results suggest your strengths and weaknesses are? • For the group: – Based on these results, what are some potential strengths and weaknesses of the group? – Where might there be potential areas of synergy? Where might there be potential areas for conflict? MOTIVATION MOTIVATION DEFINED • Willingness to exert high levels of effort to reach organizational goals. Good to Great (by Jim Collins) • “Motivating people is the greatest waste of time managers engage in. If you have the right people on the bus, you don’t need to worry about them being motivated.” BASIC ASSUMPTIONS • Everyone is motivated – Key? • Two types of motivation – Intrinsic – Extrinsic TYPES OF MOTIVATION • Extrinsic Motivation: – "What gets rewarded gets done" – Based on extrinsic/tangible rewards an/or punishment • Intrinsic Motivation: – "What is rewarding gets done" – Based on intrinsic/intangible rewards Motivation Theories • • • • • Need (Maslow & ERG) Equity Reinforcement Expectancy Theory Goal-Setting Theory Needs (stage of development) • Maslow Self actualization Self esteem Social (love) Safety Physiological • Alderfer (ERG) Growth Relatedness Existence NEED THEORIES OF MOTIVATION • What are the implications of need-based theories for managers? EQUITY THEORY • People compare their outcome/input ratio to that of others • Conclusions – Ratios are equal (equity exists) – Ratios are unequal (inequity exists) RESPONSES TO EQUITY/INEQUITY • Equity: Maintenance • Inequity: – Change Inputs – Change Outcomes – Quit Forms of Justice REINFORCEMENT THEORY • Behavior is a function of consequences • Behavior that is rewarded persists • To increase behavior – Positive reinforcement – negative reinforcement REINFORCEMENT THEORY • To reduce behavior – Extinction REWARDING B • WE HOPE FOR: – Long-term growth – Setting challenging goals – Total Quality – Candor – Teamwork • BUT WE REWARD: – – – – Quarterly earnings Making the numbers Shipping on time Reporting good news; agreeing with the boss – Individual effort REINFORCEMENT THEORY • To reduce behavior – Extinction – Punishment • Immediacy is crucial • Implications? EXPECTANCY THEORY People are motivated to do that which they believe is possible and valuable EXPECTANCY THEORY People are motivated to do that which they believe is possible and valuable • Expectancy: Belief that you can perform • Instrumentality: Belief that performance will lead to an outcome • Valence: Value of the outcome GOAL SETTING THEORY (Didn’t explicitly discuss) • People naturally set goals • Benefits of Goals: – Increase effort – Direct effort – Increase persistence • Most effective goals are: SMARTER Goals (Didn’t explicitly discuss) • Specific • Measurable Improve conflict management process vs. 80% reduction in grievances filed by second quarter • • • • • Accepted (participative) Realistic Tough (“stretch targets”) Engaging Rewarded Effective Rewards & Incentive Systems: • Recognize Individual Differences • Effective Goal Setting – Clearly defined measurable targets and expectations – Realistic stretch – Collaboratively set • Remove obstacles/barriers • Link meaningful/valued rewards to desired behavior – Those that fulfill strategic objectives; avoid undesirables • Reward ASAP after behavior • Check the system for equity, fairness, consistency • Remember money is only the beginning NORDSTROMS • Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms. – What do you see as its strengths? – Any concerns/questions regarding the system? • Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management? • What (if any) changes would you recommend? NORDSTROMS • Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms. – What do you see as its strengths? NORDSTROMS • “This is Your Business. Treat it Like Your Own Business.” Highest sales productivity Earnings > $80,000 Compound growth in sales, earnings, stores sq. ft. Highly, educated workforce NORDSTROMS • Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms. – What do you see as its strengths? – Any potential concerns? NORDSTROMS • “This is Your Business. Treat • “It’s fear that Provides Great Customer Service” it Like Your Own Business.” Highest sales productivity Earnings > $80,000 Compound growth in sales, earnings, stores sq. ft. Highly, educated workforce Local 1001 publicity campaign Union complaint with Washington Dept. L & I NLRB charges $15 million reserve against earnings shareholder class action suit employee class action suit Wall Street Journal story 60 Minutes TV story NORDSTROMS • Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management? NORDSTROMS ACTIVITY Drive to another store to pick up merchandise for a customer Home delivery Obtain merchandise from another department for a customer Thank you notes Merchandise stocking Store displays Sales meetings Inventory count Record keeping SELL NONSELL NORDSTROMS • Using theories of motivation & related keys to effective incentive systems, evaluate the Incentive system in place at Nordstroms. – What do you see as its strengths? – Any concerns/questions regarding the system? • Are Nordstrom employees pressured inappropriately by the sales-per-hour system? By management? • What (if any) changes would you recommend? Recommendations • Eliminate the SPH system? – Would this be akin to throwing the baby out with the bath water? • Modify system to minimize abuse – Guidelines that no one is to be pressured to underreport…punish offenders • Internal controls – – – – Personal purchases Properly credit sales…eliminate sharking Sales data cannot be altered Clarify distinction between sell and non sell hours CONCLUSIONS Effective incentive systems can be powerful motivators & focus attention on critical behaviors. However, performance pressures can cause participants to engage in undesirable behaviors. – maximize the statistic in counter-productive ways – willful distortion Strong internal controls must be present to prevent manipulation. Systems must clearly communicate that explicit pressure and gaming behavior is unacceptable and subject to detection and punishment. • THE NEXT FOUR SLIDES WILL CONCLUDE MOTIVATION AT THE BEGINNING OF DAY 3 HERZBERG • Movement vs. Motivation • KITA – - KITA – - KITA – + KITA • What’s wrong with KITA? With movement? Job design • Job enrichment (Herzberg) – Hygienes (salary, relationships, setting...) – Motivators (responsibility, achievement, recognition…) Dissatisfied Neutral Motivated IMPLEMENTING CONCEPTS CORE JOB DIMENSIONS Combining Tasks Skill Variety Forming Natural Work Units Task Identity CRITICAL PSYCHOLOGICAL STATES Experienced Meaningfulness PERSONAL WORK OUTCOMES High Internal Work Motivation Task Significance Establishing Client Relationships Autonomy Experienced Responsibility for Outcomes of Work High Satisfaction with the Work Vertical Loading Opening Feedback Channels High Quality Work Performance Feedback Knowledge of the Actual Results of Work activities - STRENGTH OF EMPLOYEE’S GROWTH NEEDS - KNOWLEDGE & SKILLS - CONTEXT SATISFACTION Low Absenteeism and turnover Intrinsic Motivation: From Theory to Application • Provide Intrinsic Rewards – Survey of 1,500 employees found that recognition is the most powerful workplace motivator • Build intrinsic motivators into employee’s jobs • Employee Participation and Empowerment